Florida Real Estate Essentials works directly with a network of buyers Who facilitates and complete the Short Sale on your behalf. This is one of many no cost services we offer to Homeowners. Due to the overwhelming number of troubled mortgages, the banking industry works with companies like ours without any fees to the Homeowner.  Click Here one of our examiners will review your case immediately!

How Do I Qualify For a Short Sale?

• The property must have little or negative equity;
• The Mortgage is either currently in default or default is imminent;
• The Homeowner(s) must have a legitimate proven (or provable) financial or other undeniable hardship.

There are a number of financial hardships. Among these are:

• Loss of Employment;
• Loss of Income;
• Reduction of Income;
• Increase in Expenses;
• Loss of Spouse;
• Health Challenges

Why Lenders Agree to a Short Sale

Foreclosing on a property is very expensive. Keep in mind that lenders do not make money on foreclosures.  In fact, the Lender typically loses as much as $50,000 or more per foreclosure. With all of the lost payments, attorney fees and additional miscellaneous expenses such as taxes and insurance, the costs to the lender grows quickly.  The property must also go through an auction process at the local courthouse. At this auction, Investors usually purchase the property for pennies on the dollar which creates a deficiency to the Lender(s). Otherwise, the property becomes Bank-Owned (REO – Real Estate Owned).  With a REO, the Lender becomes the property owner by court order.  When the Lender sells the property after this point, they lose additional money as extended holding costs now come into the equation.

Though Lenders lose money with a Short Sale, the loss is most often substantially less than the loss due to foreclosure.

Keep in mind banks are in the business of lending money. Not selling property. Taking property back through foreclosure is not in their best interest and is the last option for them. This is why the Short Sale is such an attractive option for all parties involved.

Why Short Sales Are Beneficial To You The Homeowner

Short sales aren’t just beneficial to lenders. Homeowners like yourself stand to gain a great deal by Avoiding Foreclosure.

• The services provided are at no cost to you.
• In most cases the lender will waive their right for a Deficiency Judgment. (A Deficiency Judgment would  leave you, the Borrower, personally responsible to pay any and all losses due to your failure to pay the loan and interest in full along with all additional Lender expense).
• A Short Sale may minimize your possible taxable event, which is evidenced as a 1099. A 1099 is issued by the Lender. If the property is your primary residence and you have lived there for at least two years. (You may be able to avoid paying any taxes for this typically taxed event all together, to find out more contact your Tax Professional today);
• Upon completion of the Short Sale, the loan will show as “Satisfied” on the Borrower’s credit report.
• Typically, a Short Sale has less of an effect on the Borrower’s credit report. Foreclosure may stay on the Borrower’s credit history for 7-10 years (Foreclosure typically reduces a Borrower’s credit score by 200-280 points);
• It is quite possible for you (the Borrower) to purchase another house within 2-3 years, or sooner after completing a Short Sale.  
• We have relationships with Credit Restoration companies to help you rebuild your credit.

Keep in mind that once you miss a mortgage payment your credit score dramatically drops, however your credit is greatly affected negatively by a Foreclosure. A Foreclosure also gives the Lender(s) the right to come after the Borrower personally for a deficiency judgment which is a personal judgement that may lead to the garnishment of wages.

A Short Sale is viewed in commerce as a responsible solution to the situation.  Foreclosure is viewed as an irresponsible handling of the agreement.  As a result, Foreclosure may lead to the following problems:

• Most employers periodically check credit reports of current employees. The Borrower may lose their position with the company due to a foreclosure showing on their credit report.
• Most employers now run background checks. Due to these background checks many employers are not hiring those who have gone through Foreclosure.

At Florida Real Estate Essentials, our goal is to help you move forward with your life and avoiding the damage of foreclosure as well as keeping your dignity intact.  If the conditions are right based on the current economic situation, it is our opinion that the best way to avoid foreclosure for most people is by utilizing the Short Sale.

TIME IS OF THE ESSENCE… LETS GET STARTED TODAY!

Click Here one of our examiners will review your case immediately!