Foreclosure Resources

Orlando Short Sale Defined

What is a Short Sale and Is It a Better Option?

A short sale is when a property is offered for sale for less than its value. The lender must agree to short sale a property and a detailed process must be followed.

1. First, before a short sale becomes an option, you (the homeowner) must be in a distressed state, which means you are delinquent in your payments and the property is usually facing foreclosure.
2. A detailed set of documents will need to be completed to prove that you (the homeowner) cannot continue making mortgage payments. Also, a hardship letter, which explains the cause of the financial distress, is usually another required document.
3. An effort must have been made to list the home on the Orlando housing market at its full market value with a thorough report of the sales activity during that time
4. If a short sale is approved by the lender, a serious buyer makes an offer and a set price is agreed upon by all parties involved, then the sales process would continue as any normal sale.

Much of the time the seller’s required fees and commissions will be paid by the lender. You may get to walk away owing nothing. However, you cannot walk away with any proceeds from the sale of your Orlando property. The entire short sale process usually takes between 3-12 months. This is a better option for some because it does not ruin your credit as much as a foreclosure does, and you can usually get a decent interest rate to buy a home in the future in a more timely manner than after a foreclosure. At this time, my help, as an expert Orlando REALTOR with short sale knowledge, can be invaluable.

Description of the Short Sale Process

After you, the Orlando homeowner, begin working with me, Helen Thompson and my expert team of agents, there are some steps I will use to guide you through the short sale process.

The Preparation Steps:

• I and my team of Orlando REALTORS will visit the property for an initial appointment where we will answer all your questions on any of the documents involved in the short sale process.
• I will take photos to use in marketing the property, as well as preparing a virtual tour.
• We will work together to prepare a damage and repairs review, which will declare any issues with the property that need to be used in negotiations with the lender.

The Marketing Steps:

• We will list the property for sale on the Florida MLS.
• I and my team will begin our marketing strategy to hopefully get your home sold before foreclosure becomes a possibility.
• We will help begin a line of communication between the lender, you (the homeowner) and us (your real estate professional).
• The property will be shown as much as possible by us and other real estate agencies and the asking price will be lowered every 15 days (on the 1st and 15th) until a feasible offer is received.
• Received offers will be given to you for review and signature and then we will submit them to the lender.

Beginning the Lender Negotiation:

• If an offer is accepted and signed, a contract will begin.
• The lender will need current copies of bank statements and paycheck stubs.
• Any additional documents are completed and returned in a timely manner.
• We will submit the Short Sale package and all required documentation to the lender.

After the offer, the lender will either choose to accept or reject it. If an offer is accepted, the buyer will be informed that the closing can start. The closing will be scheduled with a title company and the buyer can make any final inspections during this time. You will evacuate the property and leave it broom swept and completely empty, unless otherwise specified. You will meet with the buyer at the title company to sign final documents and relinquish all keys and remotes. As soon as the title is transferred the new owner takes over the property. The lender will issue a mortgage satisfaction and the document will be recorded in public records.

However, if the offer is rejected, the lender may make a counter offer and if it is accepted by buyer, the process will continue on. If the potential buyer does not accept the counter-offer, and no amount can be agreed upon, then the property will go back on the market to await a suitable buyer.

Making this process easier to understand and undertaking the property to get it sold is what we are here for. You will benefit by contacting me, Helen Thompson and my team of Florida real estate professionals. We are here to help guide you every step of the way. I am just a click or call away.