The Benefit of FL Short Sales
Why consider FL short sales? Florida foreclosure laws have been recently reviewed to adapt to the current economic situation. With the real estate market in turmoil today foreclosure has become a well-known term. With thousands of job cuts foreclosure rates have increased all over the country. When a family experiences a financial hardship, foreclosure seems eminent. However, there can be other options. There are loan modification programs that can help those who struggle with a high payment. The mortgage term can be extended, the rate lowered, thus making the payment more affordable. This option may not be for everyone since there are certain requirements. The lender needs to be contacted for information. This option works for homeowners who want to keep their home. There are situations when homeowners can not keep their home. For example, job relocation, increased property taxes, divorce, etc. With the recent drop in home values in most cases selling the home for what is owed on it is not possible. This is when a FL short sale may be a better option than a foreclosure.
A FL short sale is a very time consuming and lengthy process but it is better for the owner to pursue this instead of leaving their home to the bank. Florida foreclosure laws are different than other states. Some banks may pursue foreclosure more aggressively than others. The lender should be contacted if the owner is going to try the short sale approach. Many banks will not even consider a short sale unless the owner is behind on their mortgage payments. Paperwork needs to be submitted to qualify. It may be a requirement to have the house listed on MLS by a listing agent or a real estate agent who specializes in short sales. If no agent is hired then the owner will need to communicate with the bank and the potential buyers. The bank will determine the value of the house and will accept the offer that is at or above this value. This may take several months because the bank may take weeks before they accept the offer. It can counteroffer or simply decline it. Then the buyer will have to either accept or present another offer. Both the owner and the buyer will have to be very patient during this process. Good communication and strictly following the lender’s guidelines is the key to the successful short sale.
A warning about FL short sales
The FL short sale process can take months. In the meantime the bank may pursue the foreclosure process. Since Florida foreclosure laws are different from other states’ it is better to find out what the time line is for each state. It can often be stopped if an offer is presented quickly. Contacting the lender is important at the beginning of the process to explore different options. Foreclosure process is costly and banks would rather avoid it and discuss other options. From the owner’s prospective foreclosure should be the last resort, after all other options have failed., including FL short sales.