Short Sale Florida A short sale involves hiring a Realtor and listing the home on the market for its current value. However, if the mortgage balance exceeds the sales price, the homeowner will not have enough money at closing to pay the bank; hence, the sale is “short.”

How do I get approved for a short sale?

Gather the necessary documents for approval. Lenders typically require financial documents, such as your pay stubs, proof of unemployment, prior-year tax returns and bank statements. Proof of hardship will be required. Gather all your bills, such as medical expenses, that support the need for a short sale.

When should a seller pursue a short sale?

A lender might accept a short sale with the property worth less than the balance of the mortgage, if the borrower cannot continue to make the monthly loan payment, does not have enough money to pay back the full balance of loan and needs to move out of the property.

How long does a short sale take in Florida?

Florida short sales can go through as quickly as 60 days, but more typically take up to six months. The buyer has to be prepared to wait out the process as the bank and the seller hammer out the details of what the lender is prepared to accept.

What do you need to know about a short sale?

All information regarding the seller’s finances and the home’s value will need to be gathered and presented to the lender along with other items in a packet, as well as having a prospective buyer. A short sale means that the lender has agreed to sell the property for less than the outstanding mortgage balance against it.

How long does it take to make a decision on a short sale?

Some lenders submit short sales to committee, but most can make a decision within two weeks to three months. The listing agent should have the appropriate contact information for the lender. As a buyer, you cannot contact the lender nor can your agent, so be patient.

Why do real estate professionals profit on short sales?

In part, that’s because real estate professionals profit on a short sale. Everybody makes money except the sellers and buyers. Realize, too, that listing agents might push sellers to list as a short sale because if the sellers went through foreclosure, the listing agents would not get the listing.

Do you have to be in default for a short sale?

That’s because sellers need to qualify for a short sale. 2  If their agent sells very few short sales, that’s a red flag for your buyer. Be aware that the seller doesn’t need to be in default before a lender considers a short sale; a lender may consider it if the seller is current, but the value has fallen.