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Short Sales

Naples Short Sales

Naples Florida Short Sales Resource Center

First of all, Let me start by saying that Short Sales in Naples, Florida are becoming more prevalent, You are not alone! There are many people facing the same outcome. Let me ask you this... Are you overextended? Do you owe more on your home then what it is currently worth? Are you experiencing a Hardship in paying your mortgage? If you answered YES to any of these questions, then you may qualify for a short sale on your home. If you are interested in Listing your home as a Short Sale CLICK HERE to request additional information or give me a call at 239-272-0751.

Examples of Hardships include but are not limited to:

Loss of employment, Health related issues, Decrease in earnings, Active military deployment, Death in the family, Major property damage, Temporary earnings reduction, Denied for a refinance, Permanent disability, Temporary disability, Retirement or fixed income, Incarceration, Major depressive episode or other Psychiatric disorder.

There is a Successful way to sell your home under a Short Sale! Ive worked with Sellers and have had an Approval Success Rate of 80 to 90 Percent!

You can apply for a short sale even if you are months and years behind on your mortgage payments- depending on when your foreclosure sale date is scheduled for.

If you have missed homeowners association payments - We will negotiate to have these covered by your lender at closing.

Here are some successful Short Sales that I have helped complete:

NOTE: Not all outcomes are successful. Some circumstances shown below involve seller contributions at closing or the signing of a promissory note.

LOCATION MORTGAGE AMOUNT LIST PRICE OUTCOME

North Naples $374,000 $170,000 Approved and Sold for $160,000
Townhome -
Summit Place

Bonita Condo $174,000 $60,000 Approved and Sold for $56,000
Gardens

North Naples $175,000 $64,500 Approved and Sold for $61,500
Condo

North Naples
Townhome - Milano 1st $230,300 $106,000 Approved and Sold for $106,000
2nd $28,800

Golden Gate 1st $201,600 $84,500 Approved and Sold for $84,500
Estates Home 2nd $45,000

Golden Gate $178,400 $79,000 Approved and Sold for $70,000
Estates Home

Golden Gate 1st $55,000 $45,000 Approved and Sold for $45,000
City Condo 2nd $15,500

Golden Gate $412,550 $189,000 Approved and Sold for $185,000
Estates Home

North Naples $241,094 $180,000 Approved and Sold for $180,000
Home -
Victoria Park

Lely Resort $195.920 $90,000 Approved and Pending Sale
Condo-
Greenlinks

Stratford Place $215,859 $94,000 Approved and Pending Sale
Naples Condo

North Naples- 1st $297,370 $175,000 Approved and Sold for $175,000
Cypress Woods 2nd $36,500
Golf and CC

HERE ARE SOME SAMPLE SHORT SALE APPROVAL LETTERS - THE BORROWER'S NAME, ACCOUNT NUMBER AND ADDRESSES ARE BLACKED OUT FOR PRIVACY PROTECTION.

BANK OF AMERICA - FIRST MORTGAGE

BANK OF AMERICA - FIRST MORTGAGE NO DEFICIENCY

GREENTREE - FIRST MORTGAGE

JP MORGAN CHASE - FIRST MORTGAGE

GMAC - SECOND MORTGAGE

US BANK - FIRST MORTGAGE

BANK OF AMERICA - SECOND MORTGAGE

WELLS FARGO - FIRST MORTGAGE

HOW LONG DOES A SHORT SALE TAKE FOR A SELLER? TOTAL TIME CAN RANGE ANYWHERE FROM 30 DAYS TO SIX PLUS MONTHS DEPENDING ON YOUR BANK AND REALTOR. COMMUNICATION AND FOLLOWUP IS KEY ALONG WITH THE CORRECT SHORT SALE PRICING. GIVE ME A CALL TO INQUIRE ABOUT LISTING YOUR HOME AS A SHORT SALE WITH AN EXPERIENCED SHORT SALE AGENT LIKE MYSELF 239-272-0751 MARIE ORLANDO, REALTOR

DOCUMENTS USUALLY NEEDED FOR A SHORT SALE INCLUDE BUT NOT LIMITED TO: (FINANCIALS - LAST YEAR TAX RETURN, 2 MONTHS BANK STATEMENTS, 30 DAYS MOST RECENT PAYSTUBS OR UNEMPLOYMENT VERIFICATION, P AND L FOR SELF EMPLOYED, UTILITY BILL WITH PROPERTY ADDRESS, BUYERS PROOF OF FUNDS, SALES CONTRACT (PROVIDED BY REALTOR), LISTING AGREEMENT (PROVIDED BY REALTOR), RECENT COMPARABLES SOLD AND LISTING HISTORY (PROVIDED BY REALTOR) AND PRELIM HUD I SETTLEMENT STATEMENT (PROVIDED BY CLOSING AGENT), AND ANY OTHER ADDITIONAL DOCUMENTATION.

After a successful short sale, you may be able to purchase a home within 3 years with certain lenders. FHA will allow a purchase of a new home immediately after if you maintain your payments up to the short sale closing date (if your current lender allows).

HAFA SHORT SALE OPTION - You may qualify for a HAFA Short Sale.

Home Affordable Foreclosure Alternatives (HAFA) Program

If you can't afford your mortgage payment and it's time for you to transition to more affordable housing, the Home Affordable Foreclosure Alternatives (HAFA) program is designed for you. HAFA provides two options for transitioning out of your mortgage: a short sale or a Deed-in-Lieu (DIL) of foreclosure. In a short sale, the mortgage company lets you sell your house for an amount that falls "short" of the amount you still owe. In a DIL, the mortgage company lets you give the title back, transferring ownership back to them.

In either case, HAFA offers benefits that make the transition as favorable as possible:

You can get free advice from HUD-approved housing counselors and licensed real estate professionals.
Unlike conventional short sales, a HAFA short sale completely releases you from your mortgage debt after selling the property. This means you will no longer be responsible for the amount that falls "short" of the amount you still owe. The deficiency is guaranteed to be waived by the servicer.
In a HAFA short sale, your realtor works with your lender to determine an acceptable sale price.
HAFA has a less negative effect on your credit score than foreclosure or conventional short sales.
When you close, HAFA provides $3,000 in relocation assistance.

You may be eligible for HAFA if you meet all of the following criteria:

You live in the home or have lived there within the last 12 months.
You have a documented financial hardship.
You have not purchased a new house within the last 12 months.
Your first mortgage is less than $729,750.
You obtained your mortgage on or before January 1, 2009.
You must not have been convicted within the last 10 years of felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction.

*Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you qualify for HAFA.

The sooner you seek help, the more options you'll have. If this is the first time you've worked with your mortgage company, they will want to ensure that you have been considered for other options to keep your home before they move forward with HAFA. When it's time for HAFA, be prepared to provide the following:

Request for Mortgage Assistance (RMA)

If you've already received an offer, be prepared to submit these additional forms:

Alternative Request for Approval of Short Sale (Alternative RASS)
Executed sales contract

Buying a Naples Real Estate Short Sale...

This is to assist buyers in the dynamics of buying a short sale in Naples, Florida. What you can expect when buying a Short Sale property is very different from a standard purchase. With the number of short sales increasing in the Naples area many buyers/investors are looking to purchase a short sale because of the cost comparison to a standard home price. Short Sales are generally priced at 10-12% below standard real estate sales prices .

There are negotiations that occur with lenders and sellers rather than between agents and buyers and sellers. Typically, when a buyer decides to make an offer to purchase, the buyer's agent submits the offer to a seller's agent and necessary inspections are made.

NAPLES SHORT SALES PROS and CONS

With a SHORT SALE, you are dealing with sellers and large banks and generally they can take time for an answer from the Seller's Lender. A Buyer makes an offer based on comparbale sales and their agent submits to offer to the listing agent to present to the seller. Once the seller signs off on the offer it then has to go to their bank for approval. This is where it can take some time. Generally 60-90 days for an approval but can take longer depending on how many lenders there are. Once the bank come back, they can either counter or accept your offer. Then generally they want you to close within 30-60 days. The property is usually accepted in AS-IS condition on a short sale. But there can be an inspection contingency if the buyer would like inspections. Along with any financing contingencies. With this in mind, the buyer would need to evaluate if the purchase is worth the investment taking into consideration any necessary improvements that would need to be made. They must ask themselves "Is it worth the risk?" A benefit is that because the lender wants to get the home loss off their books they generally have it listed at "fair market value" which is usually at a steep discount. Another benefit is that the initial deposit on a short sale purchase is generally lower than a traditional purchase.

NAPLES SHORT SALES- TITLE

Another discussion is liens and title issues. I always inform buyers it is in their best interest to hire an attorney to review and ensure of a clean title from any liens.

NAPLES SHORT SALES- TIME FRAME

Generally in a traditional closing the turn time is within 45 days. With a SHORT SALE, I have noticed that it can be anywhere from 60 days to 6 months plus. But generally within 120 days.

The Chart below is intended to give you some possible
consequences between a Foreclosure and Short Sale.

ISSUE	FORECLOSURE	SUCCESSFUL SHORT SALE
Future Fannie Mae Loan... Primary Residence (effective May 21, 2008)	A homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years	A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years.
Future Fannie Mae Loan... Non Primary (effective May 21, 2008)	An investor who allows a property to go to Foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years	An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.
Future Loan With Any Mortgage Company	On any future 1003 application a prospective borrower will have to answer YES to question C in Section Vlll of the standard 1003 that asks “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” This will affect future rates.	There is no similar declaration or question regarding a short sale (at this time).
Credit Score	Score may be lowered anywhere from 250 to over 300 points. Typically will affect score for over 3 years	Only late payments on mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. A short sales’ affect can be as brief as 12 to 18 months.
Credit History	Foreclosure will remain as a public record on a person’s credit history for 10 years or more.	Short sale is not reported on a credit history. There is no specific reporting item for ‘short sale’. The loan is typically reported as ‘paid in full, settled’.
Security Clearances	Foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony. If a client has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance in almost all cases clearance will be revoked and position will be terminated.	A Short Sale on its own does not challenge most security clearances.
Current Employment	Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases is ground for immediate reassignment or termination.	A short sale is not reported on a credit report and is therefore not a challenge to employment.
Future Employment	Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment.	A short sale is not reported on a credit report and is therefore not a challenge to employment.
Deficiency Judgment	In 100% of foreclosures (except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgment.	In some successful short sales it is possible to convince the lender to give up the right to pursuit a deficiency judgment against the homeowner.
Deficiency Judgment (amount)	In a foreclosure the home will have to go through an REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment.	In a properly managed short sale the home is sold at a price that should be close to market value and in almost all cases will be better than an REO sale resulting in a lower deficiency.
Independent Brokers Realty strongly advises you to seek the appropriate professional legal advice, tax advice and investigate the consequences of either a Foreclosure or Short Sale. Information provided by The Distressed Property Institute, LLC. The Distressed Property Institute, LLC assumes no responsibility nor guarantees the accuracy of this document.

CLICK HERE FOR NAPLES SHORT SALES FOR SALE

Independent Brokers 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 rating"

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