Short Sale Facilitation
Allow Us to Facilitate a Short Sale of your Florida Property before you approach Foreclosure
Of all available options, Foreclosure is the worst…Leading Edge Title can help you with Short Sale Facilitation. The inevitable result of a foreclosure is the lender taking your house. Not only will you lose your house, but the lender can get a judgment against you for the arrearages you owe plus his costs for the foreclosure action. If that isn’t enough, your credit report will be in terminal condition for many years to come, worsening an already bad financial situation and making it very difficult to obtain any other kind of credit. There is no upside to foreclosure. It should be avoided at all costs.
Although not nearly as serious as a Foreclosure, Short Sales have some Disadvantages
While a short sale will save you from foreclosure, it will also have some negative effect on your credit score, frequently lowering it by as much as 200 points. This can be overcome more quickly than the black mark of a foreclosure, especially if you manage to retain one or two credit cards and keep them current. You may be eligible to buy a home with an institutional loan backed by Fannie Mae or Freddie Mac more quickly than you would if it went into foreclosure. Lenders encourage short sales over foreclosures because they generally net more from them, since foreclosures incur additional marketing, legal, processing and carrying costs. Borrowers can be considered for loans following a short sale after 24 months, if the sale was caused by extenuating circumstances outside of a borrowers’ control, or 48 months if it was the result of financial mismanagement on the borrower’s part.
Protecting your Credit Score
If a consumer is going to have a Foreclosure or Short Sale in their future,the most important item they need to focus on is their credit score. This one action item can save them thousands of dollars in future payments on their car, credit cards, and future homes.
After the Foreclosure or Short Sale, there are many things that consumers need to do. For example, re-establish credit from the beginning. Relying on their previous credit record will not work, even though other accounts had no late payments. Mistakenly, many Americans wipe their hands clean from credit once they have a Foreclosure; they feel that “credit got me into this mess, I need to stay away.” This is the worst approach for a healthy financial future.
By re-establishing credit the proper way, a consumer’s credit score can be considered “excellent” (above 720) 4-5 years sooner than having the Foreclosure or Short Sale fall off their credit report. After a Foreclosure or a Short Sale, a consumer should re-establish credit with three new credit cards and a car loan. It is best to apply for these credit cards all at the same time so that any impact to your credit report happens once and not on numerous occasions. A negative financial situation and poor credit score can make it very difficult to obtain any other kind of credit and if you can get credit it will be at significantly higher rates.
When you are not behind on your payments
You’re working overtime and haven’t missed a mortgage payment, but your personal debt increases every month. You try to call your lender to discuss a short sale based on a realtor’s opinion that you can’t sell your home for what you owe given current market conditions. Unfortunately some lenders will not refer you to their short sale help department until you are at least two months late. We can help you communicate with your bank so you know all of your options.
A look at a Short Sale from the Buyer’s Perspective
A short sale, on the face of it, sounds like a real boon for the buyer. Through a real estate short sale, the buyer can land a property for less than current market value. A buyer should be ready, though, for what might be a drawn-out and arduous process. The lender may dither and vacillate until the last minute as to whether to approve the short sale. The buyer should come armed with comparable values from the neighborhood in case there’s a need to negotiate the process. This isn’t something that can be done with a conversation or a handshake; you’ll need hard documentation to back up your offer. It’s best to locate an agent who specializes in short sales in real estate.
A look at a Short Sale from the Seller’s Perspective
A short sale should be considered as a last gasp before foreclosure. As much as a lender doesn’t like having a foreclosed property on their rolls, they don’t like short sales much better. They generally will not consider a homeowner who has a chance of making payments; they’re mainly looking at the seller’s financial situation. Something like a layoff, short-term disability or maternity leave will leave the door open for the borrower to get back up on payments again, and a bank will be less likely to green-light the short sale. Second mortgages are likely to complicate the picture even more. Make sure you have all your ducks in a row (including pay stubs and bank statements), get any agreements in writing and look into tax and credit consequences.
Leading Edge Title can help you with Orlando Short Sale Facilitation, we are a member of the American Land Title Association
Leading Edge Title can help you with Orlando Short Sale Facilitation, we are a member of the Florida Land Title Association