You would think that Homeowners throughout this country and even here in Lakeland, FL these days getting loan modification approved, would make them a happy camper by keeping their homes. I thought so too until I read the article here that I want to share with you.
“Unfortunately, the “Big Three” credit bureaus – Equifax, Experian and TransUnion – have issued new guidelines that allow lenders to report new mortgage loan modifications as “partial payment status,” a designation that could lower an individual’s credit score by more than 50 points.”
In my opinion, this is the most ridiculous guideline I’ve read, while wondering what are they going to do next. What impact does it have for your future credit buying and what about the credit cards you already have? I’m sure you will be penalized by an increase in their annual percentage rate as well. What a shame!
Is it worth doing a loan modification now or should I go with a short sale instead and be done with it?
Sellers 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 a for sale sign in the yard and yes, the home is listed in the Multiple Listing – is this really serving my clients. NO, and here is why!
There are hundreds of Lakeland Short Sale homes for sale. Foreclosure filings are up and when I talk to potential clients, they are in dire need of assistance.
When I’m hired as your Listing Agent handling your Lakeland Short Sale, time is of the essence. The lenders may have filed already a Lis-Pendens, which puts the property already in a pre-foreclosure status.
Pricing your home is the most crucial step to marketing and selling – the comparative market analysis that I will provide is comprehensive and more emphasis is given to recent sales comparables similar to your home that are in distress as well as condition. My price suggestions are based on facts and statistics. Competitive pricing will generate more showings and a faster offer.
Multiple Listing Service (MLS) – Listing your Lakeland Short Sale in the MLS has all the information it requires plus a whole lot more. From the maximum pictures it can hold, to detailed information about room sizes, school information and style to elaborate description of your home that will entice a prospective buyer. Sellers deserve the Best when it comes selling their home. Likewise, Buyers deserve the Best information true to the home they want to make it their own.
Marketing Short Sales – My Lakeland Short Sale properties have the same marketing exposure as if it would be a regular Lakeland Home for Sale. From virtual tours to blogging, direct mailing, flyers and the magnitude of web sites available to me – all of them will get your Lakeland Short Sale the exposure it deserves.
Communicating with my sellers is one of my top priorities. Handling a short sale on my seller’s behalf requires discipline, negotiation skills, time management, problem solving skills and patience with all parties involved in a Lakeland Short Sale.
If you are experiencing hardship or facing foreclosure, please contact Petra Norris at (863) 619-6918 for a confidential consultation. You may be qualified to do a short sale and save your Lakeland home from foreclosure.
There 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 drive by of the home you like. You ready to go out and buy your Lakeland Short Sale – not so fast!
Foremost, you must understand that the seller still owns the home, still has the title to the property, and still has the authority of what offers will be accepted. Remember, the bank does NOT own the property until it is sold on the courthouse steps.
The owner can accept an offer from you, the buyer, but since the offer is lower than what the seller owes on his note/loan it requires third party lender approval to the offer. Generally, the lender requires the property be sold as-is.
A short sale process requires your patience, therefore when you are looking for Lakeland real estate and you must be moved in by a certain time it’s best to look at homes that are not requiring third party approval.
There are only 2 steps you should follow before buying a Lakeland Short Sale.
- Hire a Realtor® – an experienced buyer’s agent that represents your interest and has the knowledge to handle a Lakeland Short Sale.
- Make sure you have been pre-qualified by a local mortgage broker who knows the Short Sale process and follow up with the mortgage approval process your lender requires, unless you are a cash buyer.
Steps to follow when making an offer on a short sale
- Your agent should advise you of the current market condition, price, and condition of the property in preparing you with an offer that the seller accepts and the bank most likely approves
- Your Buyer’s Agent should submit your offer on a FAR/BAR AS IS Offer to Sale or Purchase with the FAR/BAR Short Sale Addendum.
- A nicely hand-written letter explaining why you want to buy this home may help to get third party lender’s approval – depending on your situation.
- Your earnest money deposit should be in place, either in your Realtor’s® Trust Account or submitted to the Title Company when the offer is accepted by the seller.
- Your agent should be in communications with deadlines for inspection, loan approval deadlines and update you as soon as it becomes available from the seller’s listing agent and/or lender.
- Patience – Generally, it will take the lender weeks before the short sale is approved, even if the listing agent states “Short Sale Approved”. Looking at a closing date of at least four month from the time you submit an offer is a good estimate for a closing date.
Contact Petra Norris at (863) 619-6918 or email me at Petra.Norris@lakelandfloridaliving.com if you are looking for a Lakeland Short Sale. To view all Lakeland real estate listed for sale just click the Lakeland Florida Homes Search button below.
When it comes to Lakeland short sales, hiring a Realtor® is an absolute must, but not just any. I had an epiphany yesterday! Even after all this negative publicity in our housing market about foreclosures and short sales, a lot of Lakeland homeowners still don’t know anything about short sales.
If you are having trouble keeping up with your mortgage payments or already been late, due to loss of jobs, health issues, etc. but more importantly, before you sign a listing agreement with a real estate agent, let me suggest to you, “Who should you NOT hire as your Real Estate Agent?”
Short Sales have become by far the most extensive transaction in real estate that owners, real estate agents, and buyers are faced with. For homeowners, who are in dire need to sell their homes, they do the unthinkable and hire an agent to list the property so they just don’t have to deal with it no more. I am surprised by what reasons were for hiring an agent in the first place.
Follow these simple tips and I know you’ll be better off in the long run:
Don’t hire if…..
- An agent that tells you that he or she does not want to do short sales.
- An agent that talks bad about short sales.
- A relative or friend, who is an agent, but has never done short sales.
- An agent that doesn’t know what a short sale is.
- Your neighbor’s friend, who is an agent
Be proactive and instead seek a real estate agent, who can explain the short sale process to you and is experienced, diligent, confident and determined. Hire someone, who cares about you as a person, not just what’s in it for them. It’s that simple!
Copyright © 2009 http://www.petranorris.com| All Rights Reserved
Lakeland Florida Short Sale – Hiring a Realtor® and not just any Realtor® is a must!
Licensed Florida Real Estate Broker
CDV TransAtlantic, Inc.
P.O. Box 92050 – Lakeland, FL 33804-2050
Telephone (863) 618-6919
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.
Copyright © 2009 http://www.petranorris.com| All Rights Reserved
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
