A Tampa short sale is when the homeowner sells their home for less than what it’s owed on their loan, and the lender accepts the amount as the payment in full. The homeowner must demonstrate they are currently in a financial hardship and unable to continue meeting their obligation.
The Tampa short sale process is still lengthy and it involves many hours of follow up with the lenders and your Tampa short sale realtor will help you throughout the short sale process. That’s why it’s very important to hire a Tampa real estate professional who is not only experienced in a short sale but also, familiar with Florida short sale laws and process.
Short sale process in Tampa Florida can vary depending on lenders and Florida short sale laws that apply. The general Florida short sale process is:
Tampa Florida short sale process can be very tricky and hard to understand. However, if done correctly, it can in fact be the best option and fresh start for you.
A short sale negotiation resulting in a reduction of the amount a borrower owes towards a debt acts as a type of settlement or renegotiation of a borrower’s debt. Should the creditor report the debt reduction to credit reporting agencies it can adversely affect a person’s credit report.
The Results on credit scores are much better than a foreclosure. With the new Fannie Mae Guidelines, a homeowner can purchase another primary property after 2 years of a short sale agreement, instead of 5 years, or more, with a foreclosure
If you’re thinking of selling your Florida home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won’t cover your total mortgage obligation and closing costs, and you don’t have other sources of money to cover the deficiency.
A Tampa Florida short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.
If you are thinking of selling your Florida home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as:
When a loan modification still isn’t enough to relieve your financial problems, a Florida short sale could be your best option, if:
The first step to a Tampa short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales.
You want to work with those who demonstrate a thorough working knowledge of the Tampa short sale process and who won’t try to take advantage of your situation or pressure you to do something that isn’t in your best interest.
A qualified Tampa real estate professional can:
Your lender will give you a list of documents it requires to consider a Florida short sale. The short-sale “package” that accompanies any offer typically must include:
Even if you’re well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months.
Some experts say:
- If you have only one mortgage, the review can take about two months.
- With a first and second mortgage with the same lender, the review can take about three months.
- With two or more mortgages with different lenders, it can take four months or longer.
When the bank does respond, it can approve the Florida short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)
Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:
Article Source: REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®.
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