Sergio Rebollo Jr.

So you've found yourself upside-down on your house, where the mortgage balance far exceeds the current market value, and you can no longer afford the payments. What do you do?

Your options include 1.) stay put and wait for the market to recover (historically the real estate market goes in cycles); 2.) walk away and let the bank take the home through foreclosure; 3.) buy a lottery ticket and pray that you win; or 4.) consider a short sale.

What is a short sale? In a nutshell, a short sale is when the bank agrees to settle your mortgage(s) for less than the home is worth. You list the home for sale as though it is a regular sale, but with a "short sale addendum" that explains that the bank must approve the sale before it can be completed. The bank will generally pay for all fees and costs associated with the sale, including real estate commissions, escrow and title fees and property tax prorations. Often they'll also pay for delinquent property taxes and homeowner's dues as well.

Don't expect to walk away with any proceeds from a short sale - the bank is already taking a loss, and they'll not be letting you put anything in your pocket from the sale of your home. However, whatever you owed on the home is most often eliminated without recourse, no matter what those funds were used for.

So why do a short sale instead of just letting the bank take your home through the foreclosure process? Your credit score takes less of a "hit" with a short sale than it does with a foreclosure, and your neighbors don't have to ask why there are notices posted on your windows and local law enforcement pounding on your door as your home gets scheduled for the foreclosure auction. You also have at least a small amount of control over your move-out date in a short sale, where you don't with a foreclosure.

The short sale process can be relatively long, although some banks are becoming much more efficient lately and quite often we're seeing approvals within 60 days from the date a buyer's offer was submitted. Be prepared to provide the bank with information as to your current financial situation (income and assets), as well as a hardship letter as part of the short sale process. Also, be sure to hire a Realtor who is experienced in short sales or is a short sale specialist. Short sales take a lot of extra jumping through hoops and follow-up, and a file that is not prepared properly will just get put aside.

So you've found yourself upside-down on your house, where the mortgage balance far exceeds the current market value, and you can no longer afford the payments. What do you do?

Your options include 1.) stay put and wait for the market to recover (historically the real estate market goes in cycles); 2.) walk away and let the bank take the home through foreclosure; 3.) buy a lottery ticket and pray that you win; or 4.) consider a short sale.

What is a short sale? In a nutshell, a short sale is when the bank agrees to settle your mortgage(s) for less than the home is worth. You list the home for sale as though it is a regular sale, but with a "short sale addendum" that explains that the bank must approve the sale before it can be completed. The bank will generally pay for all fees and costs associated with the sale, including real estate commissions, escrow and title fees and property tax prorations. Often they'll also pay for delinquent property taxes and homeowner's dues as well.

Don't expect to walk away with any proceeds from a short sale - the bank is already taking a loss, and they'll not be letting you put anything in your pocket from the sale of your home. However, whatever you owed on the home is most often eliminated without recourse, no matter what those funds were used for.

So why do a short sale instead of just letting the bank take your home through the foreclosure process? Your credit score takes less of a "hit" with a short sale than it does with a foreclosure, and your neighbors don't have to ask why there are notices posted on your windows and local law enforcement pounding on your door as your home gets scheduled for the foreclosure auction. You also have at least a small amount of control over your move-out date in a short sale, where you don't with a foreclosure.

The short sale process can be relatively long, although some banks are becoming much more efficient lately and quite often we're seeing approvals within 60 days from the date a buyer's offer was submitted. Be prepared to provide the bank with information as to your current financial situation (income and assets), as well as a hardship letter as part of the short sale process. Also, be sure to hire a Realtor who is experienced in short sales or is a short sale specialist. Short sales take a lot of extra jumping through hoops and follow-up, and a file that is not prepared properly will just get put aside.

So you've found yourself upside-down on your house, where the mortgage balance far exceeds the current market value, and you can no longer afford the payments. What do you do?

Your options include 1.) stay put and wait for the market to recover (historically the real estate market goes in cycles); 2.) walk away and let the bank take the home through foreclosure; 3.) buy a lottery ticket and pray that you win; or 4.) consider a short sale.

What is a short sale? In a nutshell, a short sale is when the bank agrees to settle your mortgage(s) for less than the home is worth. You list the home for sale as though it is a regular sale, but with a "short sale addendum" that explains that the bank must approve the sale before it can be completed. The bank will generally pay for all fees and costs associated with the sale, including real estate commissions, escrow and title fees and property tax prorations. Often they'll also pay for delinquent property taxes and homeowner's dues as well.

Don't expect to walk away with any proceeds from a short sale - the bank is already taking a loss, and they'll not be letting you put anything in your pocket from the sale of your home. However, whatever you owed on the home is most often eliminated without recourse, no matter what those funds were used for.

So why do a short sale instead of just letting the bank take your home through the foreclosure process? Your credit score takes less of a "hit" with a short sale than it does with a foreclosure, and your neighbors don't have to ask why there are notices posted on your windows and local law enforcement pounding on your door as your home gets scheduled for the foreclosure auction. You also have at least a small amount of control over your move-out date in a short sale, where you don't with a foreclosure.

The short sale process can be relatively long, although some banks are becoming much more efficient lately and quite often we're seeing approvals within 60 days from the date a buyer's offer was submitted. Be prepared to provide the bank with information as to your current financial situation (income and assets), as well as a hardship letter as part of the short sale process. Also, be sure to hire a Realtor who is experienced in short sales or is a short sale specialist. Short sales take a lot of extra jumping through hoops and follow-up, and a file that is not prepared properly will just get put aside.

Miami Short Sale Pre-Foreclosure Solutions
A short sale or short payoff occurs when a lender agrees to accept less than the outstanding loan amount to satisfy the seller's loan. A short sale allows both the lender and the distressed property owner to avoid foreclosure by selling the property at a loss. Combined with the weak real estate market the following are common situations facing distressed sellers:

Unexpected health issues resulting in difficulty making mortgage payments;
Lending rate increases on adjustable rate loans;
Divorce;
Over-extended borrower with multiple mortgages;
Job loss or transfer;

Short sales are more complicated and time consuming than an average real estate sale, making it important to retain an experienced Realtor with experience in the short sale process or a Realtor whom may be a Short Sale Specialist..

Lenders Prefer Short Sales
Short sales are more beneficial to a lender than a foreclosure. Lenders prefer short sales because they are not in the business of managing and owning property and short sales are less expensive than completing the foreclosure process. Lenders accepting short sales receive a substantial percentage of the outstanding loan amount due without waiting for a time consuming foreclosure, and they are able to avoid foreclosure and maintenance fees.

Buyers Benefit from Short Sales
Buyers often save money purchasing a property in a short sale. Sergio Rebollo, a Short Sale Specialist in the Miami area will work to obtain the best possible lender payoff, resulting in a fair price and low costs for the buyer and satisfaction for the lender and seller. Be prepared to wait though, the Short Sale process can take several months to finalize.

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Sergio Rebollo Jr.
Miami Short Sale Specialist
Exit Prime Realty
www.SergioRebollo.com

 

Sergio Rebollo Jr.
Miami Short Sale Specialist
Exit Prime Realty
www.SergioRebollo.com