Your Miami Short Sale Agent
We understand the stress you are dealing with as you battle this economic crisis. We do not make judgements about your financial decisions, and are simply here to help you find a path to a brighter future by avoiding foreclosure.
If you are behind on your mortgage payment or anticipate that you will be in the near future, we encourage you to learn about all of the options available to you. As your Miami Short Sale Agent, our goal is to help you determine which option is best for you. All of our services are free to you the homeowner. Please contact us today for a free, no-obligation consultation to determine your best option. We urge you to act now, do not ignore the problem!
What is a Short Sale?
In brief, a Short Sale is when a lender agrees to accept less than the amount owed on a mortgage in order for a property to be sold. In addition to being “underwater” on their mortgage, the seller must have a verifiable hardship that is accepted by the lender, must have a monthly shortfall on income and thirdly, be financially insolvent.
The Short Sale process has improved dramatically since April 5, 2010. That is when the US Treasury implemented the HAFA Short Sale program. Up until that date, the Short Sale process was not standardized, and thus led to much confusion and delays, so Short Sales had the reputation of taking forever to close and often not reaching the closing table. There has been a marked improvement in how quickly deals close, and indeed participating lenders may be penalized if they do not adhere to these stringent timelines. If you are a buyer and had been conditioned to avoid Short Sales, you may want to reconsider as deals now close much faster than before and there are some excellent values on offer.
Will I qualify for a Short Sale?
As your Miami Short Sale Agent, we will help you determine if you are a good candidate for a Short Sale. Watch this video for a brief overview of the requirements.
I keep hearing about HAFA, what is that?
HAFA stands for Home Affordable Foreclosure Alternatives program. It is a standardized program which most large lenders and some smaller ones have agreed to honor. It sets out specific guidelines and timelines to qualify homeowners and respond to offers and terms.The Original HAFA Short Sale program applied only to non GSE lenders, meaning those who did not resell their loans to either FannieMae or FreddieMac. As of August 1, 2010, both Fannie and Freddie have implimented their own versions of the HAFA Short Sale program, so now most homeowners should be able to take advantage of one of the HAFA Short Sale programs. It is important to note that all of the HAFA Short Sale programs are due to expire on Decembe 31, 2012.
Which HAFA program applies to my loan?
As your Miami Short Sale Agent, we will assist you in determining which HAFA Short Sale program you may qualify for and we will explain in detail the requirements and benefits that apply. You may search online to see which program your loan may fall under.
If your loan is not found on either of these websites, then you may qualify under the original HAFA program. Not all lenders participate in the HAFA program, so if your loan happens to be with one of those non-participating lenders, they may have their own guidelines for a Short Sale. Your Miami Short Sale Agent will exhaust all of the possibilities to help you to complete a Short Sale and avoid Foreclosure.
Should I try a Loan Modification before a Short Sale?
As your Miami Short Sale Agent, one of the things we will review with you prior to beginnnig the Short Sale process, is if you should attempt a Loan Modification first. It has been widely reported that the Loan Modification program administered by the government, called HAMP, has been less than successful, but it may be an option for you. CAUTION: You should not pay upfront fees to anyone other than an attorney for assistance with a Loan Modification or a Short Sale. Watch and learn more about Loan Modifications vs Short Sale.
Why would a bank agree to a Short Sale?
Many homeowners are hesitant to attempt a Short Sale because they think their lender would not cooperate. This is a myth and in fact the opposite is true. Banks will always prefer a Short Sale to a Foreclosure. The reason is quite simply that they loose less money on a Short Sale than if they have to take the property back in Foreclosure, repair and maintain it, pay taxes, pay off liens and still pay a commission to a Realtor to sell it later. In addition, banks must keep reserves of a multiple of the property value, which reduces the money they can lend.
What is Foreclosure?
As with a Short Sale, Foreclosure is a process, not a one time event. It begins once a homeowner is more than 30 days late on a mortgage payment. This is called a 'Default ' If arrears and late fees are not paid up and the homeowner stops paying their mortgage, the bank then files a 'Lis Pendens' with the court. This puts a cloud on the title and warns others that a lawsuit is pending. The next stage is a 'Final Judgement'. Here in Florida, due to backlogs in the court system and internal bank policies it may take from 10 to 18 months for a final judgement to be issued. Once the bank secures a final judgement they then petition to establish a 'Sale Date' and notify the homeowner of this date in writing. The homeowner may have from 30 to 60 days before being evicted from their home once they receive notice of the sale date.
If your property is part of a Homeowner's Association and you fall behind in monthly maintenance or association dues, the Association has the right to Foreclose on your property. In this case the timeline is usually shorter.
Please consult with an attorney if you have specific questions about the Foreclosure process.
Miami Short Sale Agent
Keller Williams Miami Beach Realty, LLC
It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner. The above brokerage 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.
Information on this site is belived to be accurate, but is not warranted. We recommend that you consult an Attorney for legal advice or opinions and a CPA for financial advice or tax questions.
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