Have These Documents ready for your listing appointment:
1. Survey
2. Title Insurance Policy
3. Deed
Closing Costs: It is customary in Lee County for the Seller to pay most Closing Costs. Closing Fees include Title Fees (If you have a copy of your current policy, you may receive a discount) and Doc Stamps. Buyers typically pay a small closing fee to the Title Company and any fees associated with a mortgage. Of course, Closing Costs are negotiable. We provide a Seller's estimated net sheet with our recommended listing price, so you will have an idea of your bottom line.
Important Questions if Buyer is obtaining financing:
Has the buyer completed his loan application? Did he get his appraisal completed? Is the loan in underwriting? Has title work been ordered? There are other important questions an agent should ask to make sure the loan process is moving along. At Florida WestShore Realty, we strive hard to educate our agents on current lending programs and guidelines. It is a service that our Seller's can count on.
Trying to do a loan modification is a tedious process. The truth is, there are probably folks in Cape Coral, Fort Myers, Estero, Bonita Springs and Sanibel who are waiting on a loan modification approval that may never happen. If you have been denied a loan modification or feel that you need another option, you may want to again consider a short sale. Read the article below, then call me if you would like to talk about a strategy. I have had Short Sales success throughout Lee County, and I will produce results. I understand the process. Not sure where you will go after your short sale? We can show you lease options and rentals. I can also recommend credit repair agents. I am sympathetic and will do my best that the process is a stress free as possible.
Call me, Megan Eister at (239) 415-6500.
Foreclosure Alternative: The Short Sale Article
From HouseLogic.com By: Gwen Moran Published: July 08, 2010
A short sale is far from hassle-free, but it's a better alternative than foreclosure. And now you've got a little help from your friends in D.C. Here are the facts about short sales and how to get started. Facing foreclosure and tempted to stay in your home until the bank pulls it out from under you? Bad idea. Don't do it. A much more graceful exit is a short sale, an agreement between you and your lender to sell your home for less than you owe. Although there's no guarantee that your lender will let you avoid foreclosure with a short sale, new government regulations are aimed at encouraging lenders to do so. Short sales get government incentives Although short sales are not hassle-free, at least you've got the government backing you. The Home Affordable Foreclosure Alternatives (HAFA) program provides financial incentives for lenders and borrowers to avoid foreclosure through short sales or deeds in lieu of foreclosures.
Participation in the HAFA program requires adherence to guidelines--including a standard process and minimum timeframes--that speed the process, says Dallas-based REALTOR® Tom Branch, co-author of Avoiding Foreclosure: The Field Guide to Short Sales. The HAFA program is for homeowners who can't keep their homes with the help of a loan modification.
Advantages of a Short Sale
You can be a homeowner again more quickly with a short sale in your past than with a foreclosure. New Fannie Mae guidelines help you qualify for a new mortgage in as little as two years after a short sale, as opposed to three years or more after a foreclosure.
You will have more time to make relocation plans and save money than with a deed in lieu. A short sale may take four to 12 months. A deed in lieu of foreclosure arrangement typically requires you vacate your home within 30 to 60 days of signing, according to real estate attorney Lance Churchill.
You can receive up to $3,000 from your lender for moving expenses at the time of closing of a HAFA short sale or a HAFA deed in lieu of foreclosure. Relocation funds are part of the incentives of HAFA, but not necessarily for other short sale or deed in lieu programs of the lenders.
You can help your community's home values. Because the lender often receives a higher amount of the remaining loan balance than it would from the sale of a home after a foreclosure, short sales help support home values in the surrounding community.
Disadvantages of a short sale
Your credit score will take a severe hit. But that would happen anyway with a foreclosure. Fair Isaac, creator of the FICO score, says foreclosure and short sales have virtually identical impacts on your credit score. VantageScore--a company that has created a credit score model for consumers--says a short sale will lead to only a marginally lighter hit when compared with foreclosure.
You may owe additional taxes. In the past, if your outstanding mortgage was $100,000 and your lender accepted a short-sale purchase offer of $90,000, you were liable for income tax on the forgiven $10,000, says Harlan D. Platt, economist and professor of finance at Northeastern University in Boston. However, the Mortgage Forgiveness Debt Relief Act of 2007, which runs through 2012, generally allows taxpayers to exclude income from the discharge of debt on their principal residence in some circumstances. Full relief is available only if the amount of forgiven debt doesn't exceed the debt that was used to acquire, construct, or rehabilitate a principal residence. Consult a tax professional and an attorney to minimize or avoid this liability.
In some states, your lender may still be able to come after you for the difference between the short sale price and the amount needed to pay off the mortgage. Your actual agreement with your lender and state and local laws and regulations spell out the details. Consult a tax professional and an attorney to minimize or avoid this liability. How to proceed with a short sale
Find a qualified REALTOR® experienced in short sales. Short sales are tough to navigate, and they're further complicated by your loan type--FHA vs. Veterans Administration vs. conventional loans. Real estate agents who specialize in short sales will know the proper steps and order of the steps involved. They'll also be able to navigate the many parties involved in the process and over-burdened loss mitigation departments. Look especially for agents who have Short Sales and Foreclosure Resource (SFR) Certification, which requires specialized training.
Gather evidence to support your need for a short sale as opposed to a foreclosure. You'll need to prove that you have little or no equity in your home, you're behind on your payments, and you're no longer able to afford your home. You'll need to write a hardship letter to the lender describing your circumstances, such as a divorce, job loss, illness, death, or other event that has impacted your income. A short sale can be a time-consuming process, but if you can avoid foreclosure, it's worth it in the long run.
*Gwen Moran has been writing about business, finance, and real estate for more than a decade. Her work has been published by Entrepreneur, Newsweek.com, Financial Planning, Woman's Day, and The Residential Specialist. She bucks the cottage trend and lives in a Colonial near the Jersey Shore.
IMPORTANT NOTICE:
Florida WestShore Realty is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
If you are having trouble making your payments you have a few options. Our office is capable of helping you with an alternative to foreclosure. Here is some advice to Sellers that are having distress and can not pay their mortgage payments
- Don't Move. If you can afford the utility payments and upkeep on the home, don't move out if you don't have, too. STAY in your HOME as long as possible.
- Call your lender. There has been some head way in the loan modification process. You may qualify for a loan modification. If you have income and can prove your income, you may qualify for a PERMANENT reduced payment, regardless of your credit card debt and/or other debts. If you have lost your job, they may give you time to get back on your feet with a FOREBEARANCE. (Put your payments to the end of the loan). I have heard up to a 6 month grace period for some of our customers.
- Prioritize your bills. If you have a job, pay your auto payment first. You can't go to work without a car. Pay your utility bill. You can't live in your home without power or water. If you have two mortgage payments, and can't afford both of them....PAY YOUR FIRST MORTGAGE. Obviously, you will have to deal with debt collectors. Do not take the calls personal. Try to focus on what you do have. FAMILY and HEALTH are a few things one can take for granted when one is under financial stress.
- Your lender may advise you to do a SHORT SALE. If you owe more than your home is worth, the lender may agree to a reduced pay off upon the SALE of your home. This is where WE CAN HELP YOU! Our office knows what a lender requires for a SHORT SALE. We have a specialized TEAM for our SHORT SALE listings. Don't waste time with an inexperienced agent.
State of Florida Legal Pro Bono (free Foreclosure advice)http://www.floridaprobono.org/
