Is Short-Selling Your Florida Home the Best Option?
You may not be familiar with the term “short selling.” However, as the Covid-19 pandemic continues to affect employment and housing nationwide, more and more American homeowners are finding themselves contemplating bankruptcy and other solutions, such as short selling, in order to cope with the massive financial struggles they are facing.
What is a Short Sale?
A short sale happens when the amount owed on a home outweighs its actual market value. In other words, even if you sold the home for top dollar, it still wouldn’t pay off the mortgage. Short sales can be complicated, as they require finding a buyer who is willing to pay market value for the home, and negotiating with the mortgage lender in order to receive permission to sell the home for less than you owe the lending agency.
Why Lenders Agree to Short Sales
Ultimately, lenders agree to short sales to save money–or, rather, to lose less money on an already sunk cost. For instance, if the lender decided not to consent to a short sale, they would likely have to foreclose on the home. This means that the lender would temporarily assume ownership of the home and all related costs until it could find a new buyer. Often, this requires investing more money in the property to sell it, or further cutting financial losses by lowering the cost to where someone would purchase it as-is. In either case, it means a lot more responsibility and costs for the lender only to recoup less overall than if they had sold the home for market value in a short sale. By coming to a lender with a short sale option, you have already done the hard work of finding a buyer willing to pay market value. While there will still likely be negotiation involved, many times lenders will see the merit of accepting a short sale when the offer is presented. What you’re really presenting them with is more than a short sale, it’s also an opportunity for them to mitigate their losses, which are otherwise likely to keep increasing. However, each lender has specific criteria for determining when to approve short sales. Having an experienced attorney who is familiar with these criteria will allow you to have the best possible chance of selling your home in a short sale and avoiding foreclosure.
The Benefits of Hiring a West Palm Beach Real Estate Attorney
The short sale process can be complex, and if it takes too long for the lender to accept and act, it can still result in foreclosure. For this reason, it’s critical to have an experienced Florida Real Estate Attorney zealously advocating on your behalf, guiding you through the process, and ensuring that everything moves along as quickly and effectively as possible. When dealing with short sales of residential property in Florida, every situation is truly unique. In addition to the specific criteria used by lenders, additional liens, second mortgages, and countless other financial characteristics of the property can really complicate the short sale process. With over 30 years of experience, attorney Larry E. Bray is prepared to help you find the best course of action for your set of circumstances, regardless of how complicated and overwhelming they may seem.
Schedule a Consultation
If you are struggling to stay afloat financially, or have outgrown a home that now carries more debt than value, you are not alone. The West Palm Beach real estate attorneys at the Law Offices of Larry E. Bray are here to help. Schedule your consultation today.
Resource:
investopedia.com/terms/r/real-estate-short-sale.asp
