When a struggling homeowner is trying to avoid foreclosure, a short sale process may seem like a solid option. But what is the process of a short sale and how does it work in Florida?
If a homeowner is selling the home for less than what is owed on it, it is considered a short sale. Sometimes, the mortgage lenders who approve a short sale may later pursue the borrower for subsequent negative loan balance or deficiency.
That’s why if you are trying to short-sell your home, you must find a way to reduce any potential losses or negative balances.
How does a Short Sale Work for the Seller in Florida?
Short-selling your home means hiring a realtor and putting your home on the market for its current value. But if the mortgage balance turns out to be more than the sales price, you (the homeowner) will not have sufficient funds at closing to pay the bank. This is why it’s called a “short sale.”
Banks are much more willing these days to allow the borrowers to walk away legally with a short sale – usually without a loss, all due to their massive foreclosure backlogs.
Sometimes, the bank will even offer homeowners a good amount of money to agree to the short-sale. Homeowners can then use this money to make a down payment or rent a more affordable home.
However, when trying to short-sell your home, it is crucial to hire an attorney who has experience with short-selling. This not only alleviates the risk of foreclosure, but also, it puts the homeowner in better standing with the lender.
How to Maximize Your Home’s Value During a Short Sale
In his extensive career as a real estate lawyer in Florida, Patrick Cordero and his team of experts have learned a number of simple yet effective tips to maximize a property’s value. Here are a few proven tips:
Have Enough Time Before Potential Foreclosure
Once the lenders allow the homeowner to short-sell a property, it can take a long time to complete. This is partly due to the fact that lenders like to thoroughly evaluate every short sale offer before approving.
If you want to expedite the process, make sure you have more than enough time before the potential foreclosure to conduct the review. You will also need time to set the right price and market your short-sale home to the target buyers.
List Marginally Above Value
The majority of the short-sale home buyers will make the lowest possible offers to convince the lender to accept. As a home seller, you need to maximize these prices as best as you can.
To achieve this, get an accurate opinion about your home’s market value from a reliable realtor before listing your short-sale home. Then list the sales price a bit higher than that value. Until potential buyers start appearing, you can keep lowering this initial price (slightly) at regular intervals.
Don’t Appear Desperate
Homebuyers have a sixth sense when it comes to sensing desperation. Make sure you never appear anxious or frantic when short-selling your property. The best way to negotiate an attractive price is by hiring a great real estate agent.
An agent with experience handling short sales knows how to demand higher prices from the home buyers. Also, an experienced agent is well-trained to deal effectively with the mortgage lenders of the short-sale sellers.
Since most lenders reject initial short-sale offers and expect to negotiate frequently, a real estate agent can make the process a lot smoother for you.
Maximize Your Home’s Value with the Law Offices of Patrick L. Cordero
If you are having problems with bankruptcy, then you need an experienced expert who cares, someone like Patrick L. Cordero. Call the Law Offices of Patrick Cordero, PA today for an appointment at 305-445-4855 or contact us online.