Foreclosure versus Short Sale
If you are a seller trying to decide whether to let a home go through foreclosure versus attempting a short sale, salvaging your credit may be an advantage.

Will I qualify for a short sale?
A bank or lender will typically grant a short sale if the seller has a hardship and the seller owes more on the mortgage than the home is worth.

Hardship
A Seller will need to provide proof of hardship in order for the bank or lender to grant a Short Sale.
A few examples of hardship include:

• Unemployment/Reduced Income
• Divorce
• Medical Emergency
• Job Transfer out of town
• Death

The Home's Market Value has dropped
Sellers will also be required to determine whether the home?s value has dropped.
Our Short Sale Agents will help determine the current value of your home by analyzing comparable home sales to substantiate whether your home is worth less than the unpaid balance due to the lender.

Mortgage Default
It used to be that lenders would not consider a short sale if the payments were current, but that no longer seems to be the case. Realizing that other factors contribute to a potential default, many lenders are eager to stop future problems before they begin.

Assets
Typically, a lender asks to see the seller?s tax returns and / or financial statement. If the lender discovers assets, the lender may not grant a short sale. Sellers with assets may still be granted a short sale but may be required to pay back the shortfall.

The Short Sale Approval Process
The Seller will need to prepare a financial package for submission to the bank. Although each bank has it?s own guidelines the basic procedure is similar from bank to bank. The Short Sale Package typically consists of the following:

• Letter of authorization, which allows your agent the ability to speak to your bank
• HUD or preliminary net sheet
• Completed Financial Statement
• Hardship Letter
• 2 Years Tax Returns
• 2 Years W2's
• Recent Pay Roll Stubs
• Bank Statements for 2 Months
• Comparative Market Analysis or list of Comparable Sales

The Short Sale Process
Once we receive approval from your bank the following steps will be taken:

• Seller signs a Listing Agreement subject to third party approval
• The home is marketed for sale
• The agent finds a buyer who makes an offer less than the amount of the mortgage
• Seller accepts the buyers purchase offer
• Your Lender accepts the buyers purchase offer
• The Transaction closes when the buyer delivers the funds and the lender releases the lien and seller delivers the deed
• The Lender pays the Real Estate Fees for the sale

Short Sale Consequences
A short sale is dependent on a buyer making an offer to purchase. If you do not receive an offer on your home, you will not qualify for a short sale. It is also dependent on the lender accepting the buyer's offer. If the lender rejects the offer, a short sale will not take place.
Having an agent who can negotiate on your behalf with potential buyers as well as lenders is key.

How a Short Sale may effects Your Credit
A Short Sale will show up on your credit report as a Pre-Foreclosure that has been redeemed. The damage to your credit may not be as bad as a Foreclosure.

Working with agents who understand the process
We have listed and sold many short sale homes in the Central Florida area and have the knowledge and experience to help you.

Most of our clients have tried loan modifications, negotiations with their mortgage holder, and even explored bankruptcy. Our Short Sale agents receive regular training in order to understand the short sale process and are kept up to date on any current law changes.

Home sellers can easily find hundreds of agents eager to list their homes, but finding a qualified Short Sale listing agent is more difficult. That's because a Short Sale Agent handles negotiations with the bank. Our Short Sale Agents are experienced in dealing with loss mitigation and negotiators and will handle the negotiations with your bank on your behalf.

Coldwell Banker West Realty
Call our office today to discuss your options with one of our Short Sale Listing agents.