Short Sales

What is a short sale?
A Short Sale is when the seller is going into default or is upside down on their home. The Short Sale home is worth less than the mortgage and the seller is not able to make up the deficit or sell the house for the amount owed plus the closing costs.

What is the first step?
We will sit down with you and discuss your options! There are many different solutions and not every option will work with every seller (see the “Options” section for more information). We will also conduct a fair market analysis of the other homes currently on the market, what is under contract and what has sold in the recent past. Using this data, we will let you know what your home MIGHT sell for, given the current market conditions. Only after we have done all the due diligence required will we help you decide whether you should list your house and at what price.

During the Listing Period
We will have determined the price that we THINK will attract the most buyers. Because you may be in a situation where foreclosure proceedings have started or will start soon, time is of the essence. If we do not immediately see showings and offers on the property, we will advise you to make appropriate price reductions in order to keep market interest high.

When You Receive an Offer
The seller still has rights to the property and we can counter any offer that comes in. We will work to get the highest offer for your house possible, but will submit any offer that we receive in order to get the process started with the bank! The bank approval process could take as little as 60 days, but it could also take as many as 120+ days, so the sooner we can get them ANY offer the better! We will let you know of any offers that we receive, but you will not be required to sign the contract until the bank has accepted it (except in rare cases).

What happens if I have a second mortgage?
When we are dealing with the second lender, the first lender will let us know what they will offer to the second lender. This will sometimes be a small amount, such as $1,000, or the second lender may require a larger portion to be paid off in order to agree to the sale. This varies and will depend on the lenders.

Will I have to pay anything back?
Some lenders are requiring a promissory note to be signed before closing. We will find out about this during the negotiation period. A promissory note states that you agree to pay back some or all of the deficit between what is owed on the house and what we can get it sold for, including all closing costs. Not many banks are requiring this at this time and, in most cases, you will know about it BEFORE signing the contract.

Is all this information correct?
We endeavor to give you the most up to date information available about short sales. That having been said, this process is changing on a weekly and sometimes daily basis. We will do everything in our power to stay on top of the current trends and to get that information to you! If you would like more information please visit our website http://www.TampaBayBankForeclosures.com.

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