Blog Post, Lakeland Short Sales, Tips and Advice
Lakeland Florida Short Sale Information – What is a Short Sale?
February 26, 2009 by Petra Norris · 8 Comments
Short Sales in Lakeland, Florida are becoming more and more common in recent months and notably though, a lot of homeowners still don’t have any idea what a short sale is and what are the required documents the lender requires.
First of all you the property owner, the most important thing you must know and understand that you the property owner and seller of your home, you still own your home, you still hold the title to your property, and more importantly you still make the decision of what offers will be accepted or not. Your bank/lender does not own your property.
Your bank/lender may have filed a Lis Pendens and foreclosure proceedings may have begun, but until your property is sold on these local courthouse steps, you the owner are still the person that rightfully and legally owns the home.
What is a short sale?
A short sale is when a lender accepts less than the mortgage balance to avoid a possible foreclosure auction on the court house steps or bankruptcy.
In this case instead of buying the home from the seller, a buyer is purchasing directly from the lender for a discount. The reason for this sale is straightforward, banks do not like surplus inventory and bad loans on their books; therefore if they see an opportunity, where they can sell the property without a great loss, they will approve such a sale. Moreover, banks could lose a lot more money if the property goes to auction as well as additional fees they would have to pay to the court. Taking the discount before the property goes to auction is financially feasible for the banks.
What are the required documents the lender requires?
However, there are documents required by the lender to approve such a short sale.
- Handwritten hardship letter explaining your hardship
- The last 2 years of tax returns for all signers on the mortgage
- The last 2 pay stubs for all signers on the mortgage
- Completed financial statement that your Realtor® received from your lender.
- There are more documents you or your agent will have to put together after an offer is received from a buyer.
What does not constitute a short sale?
If you purchased your home at the height of the market and now your home value have declined does not constitute a short sale.
If you used the home as your ATM machine in which you may have maxed out the equity of your home and are now in debt does not constitute a short sale.
Just because you want to move out of your house and your house is worth less than what you owe your lender does not constitute a short sale.
A short sale is not an escape clause – short sales are only for homeowners that are in dire need for help. It is an option that requires due diligence on my part as your Realtor® and it requires your honesty as the seller.
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Lakeland Florida Short Sale Information – What is a Short Sale?
Licensed Florida Real Estate Broker
CDV TransAtlantic, Inc.
P.O. Box 92050 – Lakeland, FL 33804-2050
Telephone (863) 618-6919
I hope you found this post useful! If you need help finding or selling your Lakeland, Florida home, please contact me at 863-619-6918. If you’re new to Lakeland, I’d especially like to extend a warm welcome. I value my clients and provide them with honest, reliable service. Allow me to introduce you to the Lakeland real estate landscape and all it has to offer.
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Check out what others are saying about this post...[...] Distressed properties are homes in pre-foreclosure, foreclosure, bank-owned, as well as short sales – While foreclosure filings are up throughout the State of Florida, there are over 1100 Lakeland homes facing foreclosure. Only 490 Lakeland properties being marketed with area Realtors®, which leads me to believe that a lot of folks simply ignoring the fact or don’t know who they can turn to in this difficult time asking for advice and help. Folks if you are late with your mortgage payments, having difficulties making mortgage payments or have been notified by the lender via Lis Pendens, it is not too late. If you have lost your job, faced some kind of hardship Short Sale may be your solution. [...]
[...] properties are homes in pre-foreclosure, foreclosure, bank-owned, or going through as short sales. Of the 57 homes sold last month here in Winter Haven, 29 of them were distressed, which sold for [...]
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[...] properties are homes in pre-foreclosure, foreclosure, bank-owned, or going through as short sales. Of the 57 homes sold last month here in Winter Haven, 29 of them were distressed, which sold [...]
[...] receive a lot of phone calls, emails and questions about Lakeland Florida short sales, foreclosure, and more and more I’m asked about Deed in Lieu of [...]
[...] facing foreclosure or trying to get their lender approve their Lakeland short sale deserve the same marketing exposure as regular Lakeland real estate for sale. Just because there is [...]
[...] Lakeland real estate market in and around Polk County, FL. Banks are more inclined to encourage short sales. First of all, it is very time consuming from the start of a foreclosure to finish, which can [...]
[...] are hundreds of Lakeland homes for sale where owners are trying to get a Short Sale approved by the lender. After searching the internet and gone through these listings perhaps did a [...]
[...] Short Sale is also an option [...]