Avoid Foreclosure Monroe – Short Sale?
ByAvoid Foreclosure Monroe – Short Sale?
Hello all,
I’m currently am going on foreclosure. Due to a recent job loss I put my house on the market to try to avoid foreclosure. I tried refinancing no luck there due to my recent late payments and income loss and I live in Florida where the market has slumped. Someone offered me to do a short sale on my property, I contact my bank and the told me to write a letter and send to them, since me and the potential buyer don’t want to involve realtor in the deal because it will be more expensive we are going to do everything by our self
I would like to know if anyone can help me or let me know where I can find a template short sale letter, so that way I will have an idea what to write and send it to my lender.
What is your advice? Any suggestions you can provide me?
Thanks in advance!
4 Comments
October 3rd, 2009 at 8:42 pm
you need to use a competent real estate brokeror real estate lawyer. You are going to have a shortfall that you will still have to work out and pay to the lender. You do not need legal issues with the purchase also chasing you. These types of deals need all the i’s dotted and t’s crossed.
The lender is less likely to even entertain any offer if something like that is written on the backside of a napkin with bad spelling.
in florida the chances of the lender filing for a judgment are very good because it is easy to obtain and will stay with you for 20 years and can be renewed for another 20.
October 3rd, 2009 at 10:28 pm
Whoever told you that using a Realtor is more expensive is incorrect! The expense of the commissions paid to a Realtor and other outstanding expenses, such as taxes (current and delinquent), water, title work, attorney fees are all paid by the lender in a Short Sale! These expenses are forgiven by the lender.
Basically the lender will accept a net somewhere between 60 to 70% of the remaining balance of the loan. Please understand that the net does not cover the expenses which I just mentioned. Adding all of those on to the 60 to 70% balance, will give you a clear idea of what the bank will accept.
These are the kinds of things that using a Realtor will prevent you from making mistakes with the bank. Also, most important…the banks work better with an agent (and negoiate better) because the agent knows the process and will be treated completely different from someone that owes the lender, trust me.
October 4th, 2009 at 3:58 am
Did you tell your bank that you are doing this yourself? Most lenders will not execute a transaction without a Realtor being involved.
If you don’t even know how to execute the short sale letter, you need to get a professional here.
October 4th, 2009 at 8:30 am
You don’t need a Realtor, but you do need a Real Estate attorney to draw up the contract and properly record the sale…it’s not a do-it-yourself project.
What you do is go ahead and have the buyer see HIS attorney (b/c you can’t be represented by the same one) to draw up a sales agreement, and send that in to the department of your bank along with the letter so they can see that you have a standing offer…that dramtically increases your chances of getting a short sale approved.
They will either approve the short-sale or tell you how much it needs to be increase for them to accept it.
However, BE SURE that you get in writing from the bank that they are not going to hold you responsible for the deficiency.