Lakeland Florida Short Sale Specialist 

Short Sale is an option to avoid foreclosure

Short Sale is an option to avoid foreclosure

Lakeland Florida real estate may be on the right track, however, the economy is still tough right now.  Homeowners are still struggling finding a job or keeping afloat, living from paycheck to paycheck. Things are still difficult in the economy right now.

In Polk County, foreclosure filings were up by 26% in January from the year before, according to RealtyTrac.  Local foreclosure filings nearly doubled in 2012 as Polk County ranks 5th in the nation for foreclosure property sales in 2013.  One in every 300 Florida homes received a foreclosure filing in January 2013.

How long will Short Sale last?

It is estimated that 2.4 million additional borrowers are 30-60 days late. It The year 2012 an estimated 440,000 homes were short sales, it is also expected that there will be 1,000,000 short sales in 2013, according to Daren Blomquist of RealtyTrac.  Certainly if you can relate to this situation, I am here to assist you. As a short sale specialist who is well experienced in getting homeowners out of this situation, I am here to inform you about all of the options at hand for you and offer you assistance at no cost. With my help, you can save your credit, avoid foreclosure and be off to a new start with your family, thereby relieving the stress that comes with such a burden.

What exactly is a “short sale” in Lakeland FL Real Estate?

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 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.

For example, a short sale occurs when your mortgage balance plus any costs in connection with selling your home exceeds the sales price of the home.  The lender(s) would have to approve the short sale thereby release the lien, forgive all or part of the shortfall of deficiency.

Short Sale for 123 Short Sale Drive

Mortgage Balance $150,000

Sales Price              $80,000

Closing Costs         -$10,000

Net proceeds to lender    $70,000

Shortfall/Deficiency -$80,000

A short sale is a transaction that happens when a lender decides to take a lower pay off amount on a loan than what is owed to the borrowers property. In this process, the borrower will owe more on their loans and liens than what their property is worth. Also, in order for the lender to agree to a short sale, the borrower must provide evidence that they are in some type of hardship situation.

How do I qualify for a short sale in Lakeland?

Generally, there are three things to qualify you for a short sale; No other major assets, the proceeds of the sale of the property are less than the amount you currently owed on the home, and financial hardship.

Examples of hardships are:

  • Loss of employment or income,
  • Divorce or separation,
  • Relocation or job transfer,
  • Major sickness and medical expenses,
  • Death of a family member,
  • Vacant rental properties, etc.

Do I get any money back from a short sale?

HAFA is short for Home Affordable Foreclosure Alternatives Program.  This program was created by the Treasury Department in 2009 to streamline short sales by being more efficient and less time consuming.  HAFA became effective on April 5, 2010 and it will sunset on December 31, 2013.  HAFA is available for mortgages if your lender participates in the Home Affordable Modification Program (HAMP).

The Home Affordable Foreclosure Alternative program offers homeowners $3,000 cash back to help with relocation expenses. This money is additional to any other relocation assistance and incentives specific to your lender.

What happens with the money that is forgiven by my lender?

In most cases, difference on your mortgage will be written off as a loss by your lender. Although the Mortgage Debt Relief Act of 2007 states that you will not be held responsible for paying taxes on the money you owe if you did a short sale on your primary residence before. It is not quite that simple. It is best you consult with appropriate representation in all tax and legal matters.

Who will pay the commission to the Lakeland FL short sale agent?

The lender will personally handle all fees associated with the Lakeland short sale process this also means that your short sale specialist will do so as well.

Can my current short sale Realtor® help me?

Short Sale Specialists in Lakeland Florida examine a question like this carefully. Short sales are specifically designed to be handled by experienced Lakeland short sale Realtor® who have many short sales completed under their belt and the evidence to show it. As you are seeking for a short sale specialist, make sure you have a list of questions you would like them to answer and have them address any of your concerns, also be sure you can feel completely comfortable with them. I am a short sale specialist, handling short sales in Lakeland Florida and the surrounding cities, such as Bartow, Mulberry, Winter Haven, Plant City, Davenport, Auburndale and can offer you no cost assistance to guide you with the short sale process of your home.

Contact us today for more information about the Lakeland Florida short sale process.

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Lakeland FL Short Sale Resources For Homeowners

Working as a short sale specialist in the Lakeland Fl area, I recently wrote an article the steps involved from pre, during and after the closing of a short sale.  You can read this article by clicking here.  I’ll wait in the meantime….

Glad you came back.  Now you see why there is so much work involved before putting a home on the market as a short sale.  So I thought I would put together resources for Lakeland Fl homeowners to other official websites which will benefit the short sale process.   

When talking to the homeowner about the short sale process, the question I ask is who owns the note?. Oftentimes, the owner can not answer this question because they think the note is owned by the one they are paying the mortgage to.  Generally that is not the case, most notes are owned by Fannie or Freddie Mac. If you still don’t know who owns your note, there are loan look up tools for your convenience to see who owns the note:

Fannie Mae Loan Lookup Tool

http://www.knowyouroptions.com/loanlookup

Freddie Mac Loan Lookup Tool

https://ww3.freddiemac.com/corporate/

In addition, homeowners who are looking for short sale resource guide under the HAFA program, click below on the link.

Home Affordable Foreclosure Alternatives (HAFA) Program

http://www.makinghomeaffordable.gov/programs/exit-gracefully/Pages/hafa.aspx

HAFA program is not for mortgages owned by Fannie Mae or Freddie Mac, please see click on the link right here below to see if your Lender is a participant of the HAMP program:

http://www.makinghomeaffordable.gov/get-assistance/contact-mortgage/Pages/default.aspx

For FHA HUD – Short Sales/Preforeclosure Sales Program and information, please visit:

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/nsc/lossmit

Preforeclosure sales program

http://www.hud.gov/offices/hsg/sfh/nsc/rep/pfsfact.pdf

Preforeclosure Sale FAQs

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/nsc/faqpfs

Department of Veterans Administration – VA Compromise Sale

http://www.benefits.va.gov/stpetersburg/la/loan_administration.asp

These above links are for your information, however, I must stress in addition to hiring an experienced Lakeland FL short sale agent and the fully cooperation from you as the homeowner is essential to a successful closing.

If you’re a Lakeland Florida homeowner in a distressed property situation, you may be considering a short sale as a possible way to remedy your circumstances. The fist step you need to do is to look for the right Lakeland Florida short sale agents with experience.

It would seem that Lakeland FL short sale agents abound because, in theory, any agent can perform a short sale transaction. You may want to ask a few questions that can help you ascertain the agent and your situation.

A competent short sale agent will provide a quick response that accurately and comprehensively addresses both your questions and concerns.

Working as a Lakeland Fl Short Sale Agent, I hear and see constant mistakes so called Experts make and the person who gets hurt the most is you, the seller.

Not just any offer will do – Granted, the decision to accept an offer is up to the seller, however your lender and/or mortgage servicer still has to approve the amount. Listing or accepting an offer by any Lakeland FL Short Sale agent far below market value will not get approved by the bank and end up wasting time and effort for everyone.

During the evaluation process of your Lakeland short sale, there are steps lender take ascertaining fair market value of your home. Lenders hire appraisers and real estate agents verifying the value of your home, which needs to be within a certain range. If your home is listed far below fair market value, you may generate a lot of traffic- people hoping for a “too good to be true” price but your chances to receive short sale approval are highly unlikely. Pricing for a Lakeland FL short sale should be priced just like any other property.

Do your research when selecting a Lakeland FL short sale agent to work with. I have experience closing Lakeland FL short sales on both sides of the transaction as a listing agent and buyer’s agent I bring you comprehensive insight and understanding throughout the short sale process.

Do you need to sell your home as a short sale in Lakeland, Auburndale, Bartow, Winter Haven, Polk City, Highland City, Mulberry, Bartow, Kathleen, or Lake Alfred? Call or email me for a personal and confidential consultation.

4 Common Short Sale Myths Debunked by Lakeland FL Short Sale Agents

 

For some homeowners, a short sale might be the best possible option offered by Lakeland FL short sale agents. But others don’t agree immediately because of the many misconceptions surrounding this process. People fear what they don’t know, and tend to believe the first thing they hear. If you are considering a short sale, the following myths must be cleared out of your way to help you better decide.

Never believe the things that you hear about short sales in Lakeland FL, read this!

Short sales are never successful

Contrary to this popular belief, there are many successful short sales every day. Distressed homeowners have benefited from short sales which has saved their homes from foreclosure. What’s for certain is that the process is more complex and it may take a longer time, but it is not impossible to achieve given the proper handling. Much of the short sale process has been discussed in our articles in http://LakelandFL-ShortSaleAgent.com/.

No buyer would be interested in a short sale

This is just not true. In fact there are some homebuyers who would rather go for short sales in Lakeland FL rather than the regular home for sale. This is because short sales and foreclosures are generally viewed as great deals since homes are most of the time sold in relatively lower prices than the actual value of the homes.

The bank would rather go for foreclose

Although foreclosure seem to look like the easier path, it isn’t true that banks would prefer this over short sales. Foreclosure will cost the bank a lot more with the foreclosure procedures. Moreover, their lost would be greater when compared with a short sale if foreclosure happens. So don’t think that banks will never approve your short sale. As long as the documentation is complete and a good offer is there, short sales would always be preferred.

The seller should be delayed in mortgage

You don’t necessarily have to be behind in your mortgage before you are considered for a short sale. The requirements for a short sale include a hardship letter which details your financial difficulty, insolvency, and a monthly income shortfall. So you may be able to pay your mortgage now but because there is a strong chance you can’t make your future payment, a short sale may still be for you. Talk to your Lakeland FL short sale agent at once for more information on how to qualify for a short sale.

It isn’t impossible to have a successful short sale, as long as you entrust your Lakeland FL homes for sale to an agent who has had years of experience in this field. Professional short sale agents will help you identify all the other myths about short sales just like the ones listed above.

Call me, Petra Norris, at (863) 619-6918 or send me an email at petra@petranorris.com if you’re looking for a Lakeland Florida real estate agent with superior local knowledge, experience, professionalism, integrity, and personal service to help you sell or buy short sales in Lakeland FL.

 

Petra Norris, REALTOR®…

Going The Extra Mile For You!

Top 5 Most Common Problems on Short Sales in Lakeland

 

Short sales in Lakeland can be the best option for most homeowners who are facing foreclosure. In a short sale, the lender and the seller agrees that the proceeds of selling the home would be less than the amount borrowed. This is preferred as it is often more beneficial to all parties involved, especially when compared with foreclosure.

These are problems that you should take note of when it comes to short sales in Lakeland FL.

But a short sale also has its own sets of problems. These are the most common obstacles of a short sale:

  • There may be difficulty in compiling necessary documents

Paperwork for short sales is not for the impatient. Sometimes, difficulty lies at the beginning of the process when all reports, receipts, documents, and signatures need to be completed. If a seller is not committed to selling and does not cooperate, a short sale agent may have a hard time.

  • There may be too many strong competitions

Competitions would be a hurdle on the part of a buyer. If you are a short sale buyer and you want your offer to standout, researching is vital in order to come up with an offer that would be favoured by the bank. Sometimes, because the home is a real gem and the price is low, you would have more than one buyer bidding to get the home.

  • There may be delays in approval

Lenders take a long time checking all documents and reviewing an offer for a short sale. That is why all necessary documents must be included in the package to be delivered by Lakeland FL short sale agents to the bank. If the Approval may be delayed when the mortgage is not handled by the original lender or when there is another lender involved.

  • There may be a lot of lowball offers

This is basically something that wastes time of everyone involved in short sales. Lowball offers which were not thought through can result to two very negative things. On one hand, the lender may be easily tempted to give a way higher counter offer. On the other hand, a supposedly potential buyer may just be tempted to walk away.

  • The negotiation may be long and complicated

Since a short sale is not like any other Lakeland FL homes for sale where only the seller has the final say on accepting an offer, negotiations can often results to a lot of problems. This is especially true when there are more than one lenders involved. The home may be easily foreclosed when counter offers are thrown back at each other by the lender and the potential buyer, and when the latter often just walks away.

But don’t get disheartened just yet. When you have an expert Lakeland FL short sale agent who has closed a great deal of short sales in the past, you are sure to get through most of these problems. To give you more ideas and to properly set your expectations on short sales, you may check out http://LakelandFL-ShortSaleAgent.com/.

Call me, Petra Norris, at (863) 619-6918 or send me an email at petra@petranorris.com if you’re looking for a Lakeland Florida real estate agent with superior local knowledge, experience, professionalism, integrity, and personal service to help you sell or buy short sales in Lakeland FL.

 

Petra Norris, REALTOR®…

Going The Extra Mile For You!

Lakeland FL Short Sale Agents Explain Why Short Sales Take Time

 

It is no secret to Lakeland FL short sale agents that short sales aren’t exactly short. In fact, it can take months to finish and doesn’t always end up well. Aside from the fact that the layers of negotiation contributes to this, there are a number of reasons for all these delays. Here are some insider information you ought to know:

Here are reasons why Lakeland FL short sales takes time.

  • Document related delays

A short sale listing agent will have to be responsible in preparing and submitting the short sale package the bank needs in order to analyse and approve the short sale. These documents have been listed in one of our articles in http://LakelandFL-ShortSaleAgent.com/. There are instances when delays happen due to documentation. Here are the most common ones:

-Missing signatures in documents

-Incomplete information

-Lost documents

-Documents are not current

  • Lender issue related delays

Since the lenders have a say on whether or not a short sale offer will be approved, some delays are also associated with them. They comprise another layer of negotiation which means more discussion and more chances of getting rejected. Here are some of the major delays:

-Lender requires a Broker’s Price Opinion or BPO to be accomplished to have a basis on which to compare your offer.

-The authority who must review the short sale is not available for some reason

-A review board still needs to check and study your offer for that Lakeland FL home for sale

-There are more than one lenders and they don’t agree on the offer

  • Seller related delay

Although a seller would also typically want to close short sales in Lakeland FL as fast as possible to start getting back on his feet and fix his finances, some delays are also attributed on this party. Here are some of them:

-Necessary information and document has not been provided by the seller. These include the hardship letter, documents detailing his financial situation like bank statements, pay stubs, and tax returns.

-If the seller does not cooperate on negotiations because of lack of motivation. Because of the number of documents needed to be produced and the long wait, it is not impossible for a seller to lose interest in cooperating to make the short sale successful.

Needless to say, patience is something you need to have if you wish to enter and close a short sale. If you have a Lakeland FL short sale agent who can explain to you why things take time and who can do necessary follow ups to speed things up, consider yourself lucky.

Call me, Petra Norris, at (863) 619-6918 or send me an email at petra@petranorris.com if you’re looking for a Lakeland Florida real estate agent with superior local knowledge, experience, professionalism, integrity, and personal service to help you sell or buy short sales in Lakeland FL.

Petra Norris, REALTOR®…

Going The Extra Mile For You!

What Affects the Price of a Short Sale in Lakeland FL?

 

Pricing a short sale in Lakeland FL can be a bit tricky. Apart from the home’s market value, several other factors come into play when it comes to pricing so that the short sale would end up successful. Aside from other tips for a successful short sale found in http://LakelandFL-ShortSaleAgent.com, here are some of the aspects that a seller should keep in mind when pricing a short sale.

Here are factors that affects the price of a short sale in Lakeland FL.

  1. The buyer must find it attractive

Before you submit the short sale to the bank for approval, you must first have a potential buyer who is willing to pay the price of the home. Assigning a price which is a tad lower that the market value of the home can be a good start to attract home buyers.

  1. The bank must see it as reasonable

Generally, the bank is leaning towards approving short sale prices which have similarities with recent comparable sales. Even if you have a buyer who can pay, the price must be agreeable for the bank to approve it. With the help of your Lakeland FL short sale agents, it would be easier to take this into consideration when pricing your home.

  1. The buyer’s lender should agree too

The buyer’s lender can typically choose to conduct their own appraisal in order to check if the home’s price is within the range of comparable sales. Even if the buyer agrees to the price, he cannot do anything if the lender will not approve the loan.

  1. Other comparable sales should be studied

As mentioned above, a short sale can be better priced if the value given to it is in consideration with the recent short sales in the area. This information is useful for all parties – the bank, the buyer, the agents, the seller, and the buyer’s lender.

If priced right, your short sale will have a greater chance of being successful in a shorter period of time compared to when it is overpriced. However, only experience can teach this wonderful skill. It’s a good thing that a professional Lakeland FL short sale agent will be able to help in determining an appropriate price for the home with all factors considered

Call me, Petra Norris, at (863) 619-6918 or send me an email at petra@petranorris.com if you’re looking for a Lakeland Florida real estate agent with superior local knowledge, experience, professionalism, integrity, and personal service to help you sell or buy short sales in Lakeland FL.

 

Petra Norris, REALTOR®…

Going The Extra Mile For You!

4 Major Roles of a Lakeland FL Short Sale Agent

 

A short sale must be handled by Lakeland FL short sale agents simply because of the experience they can bring to the table. It may entail conflicts and problems only a short sale agent would know how to address. It is just impossible to do everything on your own as a buyer or seller. Understanding what they can do for you is crucial in setting your expectations. This article will focus on the responsibilities of a short sale listing agent.

Here are the major roles of a Lakeland FL short sale agent.

  1. Setting up the property for a short sale:

Part of the agents’ responsibilities is initiating the short sale process by preparing a listing agreement, then listing the property in MLS and completing documentations for the package to be sent to the lender. Completing all the required papers might be one of the most important parts of the process, and it can be one of the most difficult too. Luckily, brokers who have had numerous experiences in handling short sales in Lakeland FL are familiar with what to do and what to prepare.

  1. Coordination with the sellers:

In processing a short sale, the listing agent must work side by side with the sellers in order to submit the necessary financial documents as well as the hardship letter to the bank. The cooperation of the seller is vital in ensuring that the timeline provided by the lender is followed. Follow ups and coordination both to the seller and the lender is one of the listing agent’s top priorities.

  1. Handling negotiations:

The Lakeland FL homes for sale must be listed in the market with a fair price. It is the listing agent’s job to then submit to the bank once an offer is ready, together with documents like the prequalification letter, preliminary net sheet and purchase contract. There are instances when the bank gives a counteroffer. This time, the agent must coordinate with both the seller and buyer for requirements preparation.

  1. Closing:

It is the listing agent’s duty to ensure closing is in process while working with the lender, the seller, the buyer and the buyer’s agent. Deadlines must be met, therefore the agent must be mindful of follow ups to keep things going the right way. You may visit http://LakelandFL-ShortSaleAgent.com to get some more information on how the short sale process goes.

Choosing a good Lakeland FL short sale agent can actually make or break your hopes of having a successful short sale. Tasks are difficult but experience can make things easy for professionals so ensuring that you only work with the best is key.

Call me, Petra Norris, at (863) 619-6918 or send me an email at petra@petranorris.com if you’re looking for a Lakeland Florida real estate agent with superior local knowledge, experience, professionalism, integrity, and personal service to help you sell or buy short sales in Lakeland FL.

 

Petra Norris, REALTOR®…

Going The Extra Mile For You!

Why You Need a Lakeland FL Short Sale Agent

 

Short selling with the help of Lakeland FL short sale agents can be the best option for some homeowners. It simply means you and your lender will have an agreement that the latter will accept an amount less that the full payoff amount of your mortgage. But why is it better to have a short sale agent and not just any other real estate agent? Or why can’t you just deal with it on your own?

Here are important reasons why you need a Lakeland FL short sale agent.

  • Coordination and negotiation is needed

Short sale is not like an ordinary home selling process. Coordination is needed to just with the buyer and buyer’s agent but also with the lender. If you don’t have the time and skills to take care of these multiple negotiations, having an expert and professional Lakeland FL short sale agent is your best option. Learn more about these types of negotiations in http://LakelandFL-ShortSaleAgent.com.

  • A lot of documentation is required

Your chosen real estate agent will prepare documentation which includes listing agreement for your property. There are a lot of other documents that must be prepared once you get an offer for your Lakeland FL homes for sale. Your short sale agent will be able to explain everything to you without difficulty if you choose someone who has closed short sales in the past.

  • Understanding the process can be taxing

With all the negotiations and numerous documents, plus the usually long waiting period, short sales can be a stressful process. Understanding it would be a lot easier if your agent is a short sales expert who can explain everything in simple terms to you if you have questions and who can give you an overview of the process.

Because of these things, it would be best to entrust your short sale in Lakeland FL to an agent who has experience with short sales. Doing so means having experts hands deal with your property transactions for you.

Call me, Petra Norris, at (863) 619-6918 or send me an email at petra@petranorris.com if you’re looking for a Lakeland Florida real estate agent with superior local knowledge, experience, professionalism, integrity, and personal service to help you sell or buy short sales in Lakeland FL.

 

Petra Norris, REALTOR®…

Going The Extra Mile For You!

Lakeland FL Short Sale Agents List 3 Short Sale Buyers’ Mistakes

 

Buying a short sale can be tricky and difficult, especially if it is your first time. Often, buyers make common mistakes that lead to unfortunate results. The good news is, most of these can actually be avoided if you have a talented Lakeland FL short sale agent working with you. Be warned of the common mistakes buyers tend to make below and together with your agent, you are sure to succeed in the end.

Here are 3 normal short sale buyer's mistakes, listed by Lakeland FL short sale agents.

  1. Expecting things to be done fast

You cannot enter a short sale and expect to be done in a month. In fact, 90 days is the common time frame for it to be done. But things can move faster or slower than that depending on numerous factors. What’s important for you to know is that there’s no easy way for lenders to scan through all offers that fast.

A good follow up won’t hurt, but never get your disappointments push you to intimidate or threaten anyone as it will definitely work to your disadvantage. Seek for the help of Lakeland FL short sale agents to give you a clearer overall picture. Visit the website http://LakelandFL-ShortSaleAgent.com to find someone who can relieve your stress in this one.

  1. Forgetting home inspection

If you have inspected every nook and corner of a home, you are most likely to find what can probably affect its value and you can use that when you make an offer. This means you can be prepared to walk away because you won’t see the home as a totally perfect package.

This is important because some home buyers get too emotional that they get devastated when offers are not approved after months of waiting. Detaching yourself from the home, despite thinking it’s your dream home is essential in being a better negotiator and wise buyer.

  1. Not being critical in scanning information

You have to at least have an idea why a home is in short sale. Other than this, you have to find out all insurance and legal information about the home. Check the neighborhood as well. Details such as flooding history, potential building plans nearby, and the type of insurance the home has are all essential information one must check before  deciding to buy a short sale in Lakeland FL.

Buying a short sale can be difficult but it can also be truly rewarding when you get a great deal. Just don’t let yourself get carried away and make mistakes when you’re emotional. Always find a short sale agent in Lakeland FL who has years of experience to assist you.

Call me, Petra Norris, at (863) 619-6918 or send me an email at petra@petranorris.com if you’re looking for a Lakeland Florida real estate agent with superior local knowledge, experience, professionalism, integrity, and personal service to help you sell or buy short sales in Lakeland Fl.

 

Petra Norris, REALTOR®…

Going The Extra Mile For You!

When Should I Consider A Lakeland Fl Short Sale?

 

If you are behind on your mortgage payments and risk losing your home to foreclosure, then the best option would be to sell your home as a Lakeland Fl short sale

When is the best time to do a short sale?

Lakeland FL short sales

You should immediately consider a short sale as soon as you realize that you can no longer pay your mortgage

The best time to do a Lakeland Fl short sale is when you are in default status on your mortgage or if you are nearing foreclosure.

You should immediately consider a short sale as soon as you realize that you can no longer pay your mortgage due to circumstances that are beyond your control.

Your lender will most likely approve a short sale if you could prove that the reason for your default is due to circumstances beyond your control or financial hardship like loss of employment, job relocation, disability, serious medical condition, divorce, or death in the immediate family.

Actually, there is no such thing as waiting for an ideal time to do a Lakeland Fl short sale. Once you are in default, then do a short sale as soon as possible so you can avoid foreclosure.

The best thing to do is to hire an experienced Lakeland Fl short sale agent to guide you through the complex short sale process. Your agent will also help you gather and submit the necessary documentation required by your lender and will negotiate on your behalf. Working with a short sale agent will lift the heavy burden off your shoulders and help you successfully close a short sale so you could finally move on from this stressful time in your life.

Call me, Petra Norris, at (863) 619-6918 or send me an email at petra[at]petranorris.com if you’re looking for aLakeland Florida real estate agent with superior local knowledge, experience, professionalism, integrity, and personal service to help you sell or buy Lakeland Fl short sales.

 

Petra Norris, REALTOR®…

Going The Extra Mile For You!

 

How a Lakeland Fl Short Sale Can Affect Your Credit Score

A credit score downgrade of 60+ is similar to going from triple A to double A

A credit score downgrade of 60+ is similar to going from triple A to double A

Many distressed homeowners prefer a Lakeland Fl short sale over a foreclosure since it has a less damaging impact on their credit score. However, a foreclosure and a short sale can both lower your credit score and may stay on your credit report for 7 years.

After a short sale, your credit could drop 85 to 250 points, depending on whether you are behind on your mortgage payments as well as  your previous credit score.  If you had months that you were behind or late on your payments, or months of non-payments, your credit score will drop because of the combination of a bad mortgage history and a short sale.

How a short sale affects your credit score depends on many factors such as the way the bank reports the short sale to the credit bureaus. Most banks report a short sale as “settled,” which indicates that the debt was paid for less than full.

You and your Lakeland Fl agent can negotiate with the bank to report “paid” so your credit won’t be as badly affected, but lenders rarely agree to do that.

Despite the impact on your credit, a Lakeland Fl short sale is still the best option for you if you can no longer afford the monthly mortgage payments and want to avoid a foreclosure. There is still hope for homeowners after a Lakeland Fl short sale. You can improve your damaged credit score over time.  Strategies to rebuild your credit include paying bills on time, paying off debt, and getting a secured line of credit and making regular payments.

3 Ways to Avoid Paying the Deficiency Balance After a Lakeland Fl Short Sale

 

One of the concerns of Lakeland Fl short sale sellers is whether the bank will pursue the deficiency balance after the closing. The deficiency balance is the difference between the amount owed on the mortgage and the sales price of the Lakeland Fl short sale. For example, if the mortgage is $200,000 but the home sold for $150,000 as a short sale, the difference of $50,000 is the deficiency balance.

The deficiency balance is a very important topic to address prior to listing a home as a Lakeland Fl short sale. All parties involved, especially the seller and the seller’s agent, should understand the legal implications of a short sale, which includes the deficiency balance. These legal consequences of a short sale may differ from state to state, that is why it is important to work with an experienced Lakeland Fl short sale agent who has a thorough knowledge of the area and all the laws regarding short sales in Florida.

No one can ever know for sure whether the bank will pursue the deficiency. No one can predict if the lender will ask for a payment of the deficiency in a short sale.  However, there are a few things that can assure a seller that the bank will not be able to pursue a deficiency after closing:

1. HAFA Program.

The Home affordable Foreclosure Alternatives Program by the U.S. government, which was designed for distressed borrowers who want to do a short sale, waives the rights of the lender to pursue deficiency. On top of that, it also offers borrowers who do a short sale up to  $3,000 in relocation assistance.

One of the concerns of short sale sellers is whether the bank will pursue the deficiency balance after the closing.
One of the concerns of short sale sellers is whether the bank will pursue the deficiency balance after the closing.

2. Anti-Deficiency Laws.

Some states have anti-deficiency statutes that protect short sale sellers from any liability to the lender for the deficiency balance after the short sale closes. Ask your short sale agent if your state has this law.

3. Language in the Short Sale Approval Letter.

The short sale approval letter spells out what the lender intends to do after closing. If you are in a state that has no anti-deficiency laws, make sure to read the short sale approval letter carefully and watch out for a line which goes like “We reserve the right to pursue deficiency.” If the approval letter contains this statement, it should be a red flag for the seller and the seller’s agent can return to the lender to negotiate a revision or to have this sentence removed.

A short sale could take up to 3 months to get approved, but once you have the bank pursuing a deficiency judgment against you, it could take even longer. It is very important that both seller and agent be very careful when reading the approval letter and make sure it protects all parties involved in the Lakeland Fl short sale.

Avoid foreclosure today! Contact Petra Norris, your Short Sale Specialists in Lakeland Florida at 863-619-6918 to examine a question like this carefully. Short sales are specifically designed to be handled by experienced Lakeland short sale Realtor® who have many short sales completed under their belt and the evidence to show it. As you are seeking for a short sale specialist, make sure you have a list of questions you would like them to answer and have them address any of your concerns, also be sure you can feel completely comfortable with them. I am a short sale specialist, handling short sales in Lakeland Florida and the surrounding cities, such as Bartow, Mulberry, Winter Haven, Plant City, Davenport, Auburndale and can offer you no cost assistance to guide you with the short sale process of your home.

Lakeland Short Sales

 

P.O. Box 92050
Lakeland, Florida 33804-2050
Telephone: 863-619-6918
Email: brokerpetra@gmail.com

Broker: Petra Norris
Licensed: Florida
License #: BK646565

Hi! Welcome to Lakeland FL Short Sale Agent!

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