short sales 101 for sellers revised 033011
TRANSCRIPT
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SHORT SALES 101
FOR SELLERS
How to Use a Short Sale to Protectyour Finances and your Credit, and
Stop Foreclosure
Negotiate a sale to your lender toaccept less than you own on your
mortgage
Written by:
Russ Irizarry
Licensed Real Estate Broker
Short Sale Expert
305-390-0574 Direct
South Florida Short SalesA registered member of the Better Business Bureau
www.seflorida.bbb.org
South Florida Short Sales is a Florida Licensed Real Estate Brokerage
License # CQ1038301
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Legal Disclosure Notice
The content in this presentation is based upon our research, knowledge and experience. In
no way is any information contained herein to be interpreted as legal or tax advice. To be
assured of sound legal advice with regards to foreclosure, real estate, bankruptcy or agency
laws, please employ the use of a competent legal or tax professional and/or your real estate
broker.
Please consult your broker, accountant and attorney, as appropriate, for advice specific to
your situation. Although every effort is made to keep this presentation current and relevant,
it is your responsibility to seek guidance from qualified professionals in order to keep up
with rapidly changing market conditions and periodic changes to the law.
Mortgage Assistance Relief Services Disclosure
IMPORTANT NOTICE: Before using this service, consider the following information:Ourcompany cannot charge you any upfront fees in conjunction with providing you any type of
mortgage assistance relief service. Our company is NOT associated with any government
agency or program and our company is NOT approved by the government or your lender(s).
You may stop doing business with us at any time with regard to the short sale, our short sale
negotiation services (if any), or real estate brokerage services (if any). If you stop paying
your mortgage, you could lose your home and damage your credit rating.
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Table of Contents
1 INTRODUCTION ............................................................................................................................... 4
2 PRE-FORECLOSURE HOMEOWNER OPTIONS ................................................................................. 5
2.1 Loan Modification ............................................................................................................... 5
2.2 Repayment or Forbearance Plan ........................................................................................ 5
2.3 Refinance ............................................................................................................................ 5
2.4 Bankruptcy .......................................................................................................................... 5
2.5 Deed-in-Lieu of Foreclosure ................................................................................................ 6
2.6 Foreclosure ......................................................................................................................... 6
2.7 Short Sale ............................................................................................................................ 6
3 SHORT SALES 101 ................................................................................................................... 7
3.1 What is a Short Sale? .......................................................................................................... 7
3.2 Why Lenders Allow Short Sales........................................................................................... 7
3.3 Standard Documents Required for a Short Sale ................................................................. 8
3.4 Benefits of a Short Sale ....................................................................................................... 8
4 PRE-FORECLOSURE TIMELINE ............................................................................................... 10
5 FORECLOSURE vs. SHORT SALE A SIDE BY SIDE COMPARISION ............................................ 11
6 POSSIBLE SHORT SALE OUTCOMES ....................................................................................... 13
6.1 Promissory Note ............................................................................................................... 13
6.2 1099C vs. Deficiency Judgment ........................................................................................ 14
7 OUR SHORT SALE PROCESS DIAGRAM ................................................................................... 15
8 FREQUENTLY ASKED QUESTIONS .......................................................................................... 16
8.1 What does your company South Florida Short Sales (SFSS) do exactly? .......................... 16
8.2 How much will this cost me? ............................................................................................ 16
8.3 How long does the short sale process take? .................................................................... 16
8.4 What are the sellers responsibilities in a Short Sale? ...................................................... 16
8.5 Can I receive any proceeds from the sale? ....................................................................... 16
8.6 Why pursue a Short Sale? ................................................................................................. 17
8.7 Ive already received a foreclosure notice, is it too late for a short sale? ........................ 17
8.8 Can the bank still come after me for the balance after the home is sold? ...................... 17
8.9 Im ready to get started, whats the next step? ............................................................... 17
9 ATTORNEY BORROWER AUTHORIZATION LETTER ............................................................... 18
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1 Introduction
Inside this report you will find valuable information on the Foreclosure process and timeline in
the state of Florida. It is a brief summary intended to help Homeowners understand their pre-
foreclosure options.
This information will provide Homeowners with basic knowledge of a Short Sale, as well as
introduce our company South Florida Short Sales (SFSS) and explain how SFSS works.
Whats important is that you understand your options so that you can make the very best,
most logical decision.
Websites and other resources that may be helpful:
To estimate the value of your property:
www.Eppraisal.com
HUD Tips for Avoid Foreclosure:
http://portal.hud.gov/hudportal/HUD?src=/topics/avoiding_foreclosure
Foreclosure Assistance in Miami-Dade
http://www.miamidade.gov/csd/foreclosure_prevention.asp
Foreclosure Assistance in Broward
http://www.broward.org/Housing/Pages/ForeclosurePrevention.aspx
http://www.miamidade.gov/csd/foreclosure_prevention.asphttp://www.broward.org/Housing/Pages/ForeclosurePrevention.aspxhttp://www.broward.org/Housing/Pages/ForeclosurePrevention.aspxhttp://www.miamidade.gov/csd/foreclosure_prevention.asp -
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2 Pre-foreclosure Homeowner OptionsBelow are the most common solutions for homeowners who are facing foreclosure. Each
homeowner has a unique situation with various circumstances. This section provides you with a
definition of the most common solutions.
There are two categories of Options:
1. Staying in the house2. Moving from the house
OPTIONS FOR STAYING IN THE HOUSE
2.1 Loan Modification (most common)A loan modification allows for changes to the original terms of a borrowers promissory note,
which may include an adjustment to the interest rate %, an extension of the loan term, oradding missed payments to principal. Homeowners must qualify for a modification as they
would qualify for a new loan. Currently, loan modifications have about a 50% success rate. (The
problem with loan modifications is that lenders are generally not reducing loan principal to the
current market value of the underlying real estate.)
2.2 Repayment or Forbearance Plan
The borrower is allowed to catch up on missed payments by making more than the monthly
payment until the loan is brought current. The bank allows you to skip monthly payments
temporarily, or make partial payments for a specified time. Missed payments may be added toprincipal or become part of a repayment plan or loan modification. ( only possible if financial
problem is temporary)
2.3 Refinance
The borrower pays off the existing mortgage loan with proceeds from a new loan with more
favorable terms. (must apply before missing payments) Refinance will not be an option if there
is no equity in the home, at least 20 30%. The chances of a homeowner getting refinanced
while behind in their payments are very slim.
2.4 Bankruptcy
Generally, there are two types of personal bankruptcy: Chapter 7 (liquidation of assets), or
Chapter 13 (repayment plan). In either type of bankruptcy, the court appointed trustee will not
have much interest in a property that has no equity. In a Chapter 7, once the bankruptcy is
discharged, the bank will continue with the foreclosure process. In a Chapter 13, the
homeowner cannot miss one payment of their re-structured payment plan or the lender can
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continue to pursue the foreclosure process. The vast majority of Chapter 13s do not make their
scheduled payments, thus resulting in a double penalty on the homeowners credit report of a
Bankruptcy AND a Foreclosure.
NOTE: The most important thing you need to know about Bankruptcy as it relates to
foreclosure is that bankruptcy does not permanently stop or prevent a foreclosure fromoccurring. It can only temporarily freeze a foreclosure action. It is advisable that you speak to
an attorney and do your own research.
A FINAL NOTE: All the above options for staying in the house have one thing in common
the homeowner MUST be in a position to make some sort of reasonable payment that
is agreeable to the Bank, and make it on time every month.
OPTIONS FOR MOVING FROM THE HOUSE
2.5 Deed-In-Lieu of Foreclosure
Allows for the homeowner to voluntarily transfer a property to the bank without going through
the full foreclosure process. Essentially, the owner gives the deed back to the bank. A Deed-In-
Lieu shortens the process for the lender, with less cost. It has the same negative impact on
homeowners credit as a foreclosure - a black mark for 7 years. The courts are not involved. A
Deed-In-Lieu is not an option if there is more than 1 mortgage or lien on the house.
2.6 Foreclosure
When other options are not pursued, or a Short Sale is not accomplished, the property will go to
Foreclosure. At a public county auction the foreclosing lender takes possession of the property,or the property is sold to a buyer, usually an investor. The original homeowner has no further
rights to the property, and will have to vacate. Worse, the homeowner can still have financial
obligations to mortgage lien holders even after the foreclosure. The foreclosing lender could
still pursue a deficiency judgment against the original mortgagor for the difference between the
final judgment amount, and the proceeds received from the auction or REO (bank owned) sale.
2.7 Short Sale (most favorable)
The seller can work with specialized Short Sale professionals such as South Florida Short Sales
(SFSS) who will negotiate with lender(s) to accept a discount on the existing mortgage loanagainst the property. In a successfully negotiated Short Sale, the lender agrees to accept less
than what is owed to settle the mortgage in full (a discounted pay-off), and release or satisfy its
lien upon the sale. A Short Sale can help the seller avoid the damaging consequences of a
foreclosure, and allow a homeowners credit to heal much faster. A Short Sale gives a
homeowner a much greater opportunity to start fresh, and potentially be able to qualify for
another mortgage in as little as 2 years.
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3 Short Sales 101
3.1 What is a Short Sale?
A Short Sale occurs when a property is sold for less than the mortgage balance owed on the
property. The idea of a Short Sale is to prove to the foreclosing mortgage company that seller no
longer has the ability to pay the mortgage, and the value of the property has fallen below the
mortgage balance. The seller must prove that he/she cannot recover, and must sell the
property.
In order for banks to consider a Short Sale, they require the same paperwork as a loan
application (ie. tax returns, pay stubs, bank statements). The bank needs to substantiate that
the seller no longer has the ability to afford the mortgage payment. In addition to this, a case
must be built as to why the home is not worth what is currently owed.
NOTE: In 2010, Short Sales accounted for about 22%* of homes sales in Dade, Broward, and
Palm Beach counties.
Again, two conditions must exist for the lender to consider a Short Sale:
1. There must be little or no equity in the property.
2. Homeowner must prove a legitimate hardship.
* Source: Southeast Florida MLS
3.2 Why do Lenders allow Short Sales?
Lenders will consider Short Sales for the following reasons:
Lenders are in the business of making loans, not owning real estate.
If the lender forecloses, the value of the loan increases their liabilities, reduces their ability to
make loans, and contributes to their insolvency. Approximately 387 major lending instutions
have become insolvent and have shut down since 2007.
Foreclosures cost lenders time and money. It costs an estimated $60,000+ to foreclose.
The Short Sale will result in less of a financial loss to the lender, than what a lender will lose
by foreclosing and selling the property at a future date (especially in a market where prices
are depreciating).
The property is in less sellable condition at time of foreclosure. Lenders created the Short Sale option as an alternative to foreclosure.
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3.3 Standard Documents required for a Short Sale
The Sellers Lender will require the following documentation from the Seller to consider the
Short Sale:
Purchase and Sale Agreement this is the contract to sell your house between you and thebuyer
Hardship Letter a letter written by you explaining your hardship and why you can no long
make your mortgage payments.
Authorization to Release Information Form signed by you authorizing your lender to release
information and negotiate the short sale with your agent, or other 3rd party such as attorney
or title company.
HUD1 financial summary of the transaction that that tells the lender the sales price and the
proposed payoff.
Financial Statement A summary of your monthly income and expenses, your assets and
liabilities. 2 most recent Bank Statements, 2 most recent Federal Tax returns, and 2 most recent
paystubs.
The compilation of the above documents is what makes up a completed Short Sale Package.
The main purpose of the Short Sale package is to substantiate your hardship to the lender, and
prove that you can no longer make your payments. Your bank wants to see that you simply
cannot afford your house anymore.
The Short Sale Package is similar to making an application to qualify for a mortgage, except
youre doing it IN REVERSE!! Youre making an application to get out of a mortgage.
3.4 Benefits of a Short Sale
The following are the greatest benefits of a Short Sale transaction:
Credit ratings are not as damaged as compared to a Deed-In-Lieu, or a Foreclosure. Sellerscan regain their financial stability much sooner, and qualify for a new mortgage easier and
much sooner in the future. Credit will heal much faster.
The Short Sale can be negotiated so there is no deficiency judgment (no remaining liabilityafter the sale). The mortgage lien can be satisfied (depending upon the lenders approval).
Sellers always have a greater sense of relief, dignity, and personal satisfaction by havingtheir home sold, versus losing the property to foreclosure.
The 1099C received by the sellers for the amount of debt relieved by the lender is non-taxable if the home is their primary residence. (The Mortgage Forgiveness Debt Relief Act
of 2007eliminates taxation on debt forgiveness if the residence was owner-occupied. See
your accountant for details. This is not tax advice.)
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Per Fannie Mae guidelines, you can be eligible for a new home mortgage only after 2 years,
versus 5 years with a Foreclosure
Sellers get the house sold and remove a major burden. The sale allows them to move onwith their lives.
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4 Pre-Foreclosure Timeline
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5 Foreclosure vs. Short Sale A Side by Side Comparison
FORECLOSURE SUCCESSFUL SHORT SALE
Primary
Residence Loans(Fannie Mae)
A homeowner who loses a home to foreclosure
is ineligible for a Fannie Mae backed mortgagefor a period of5 years.
A homeowner who successfully negotiates
and closes a short sale will be eligible for aFannie Mae backed mortgage after only 2
years.
Non-Primary
Residence Loans
(Fannie Mae)
An investor who allows a property to go to
foreclosure is ineligible for a Fannie Mae
backed investment mortgage for a period of7
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 Loans
(from any
lender)
On any future 1003 Loan Application, a
prospective borrower will have to answer YES
to question C in Section VIII, that asks, Have
you had property foreclosed upon, or given
title or deed in lieu thereof in the last 7 years?
This will affect all future rates.
There is no similar declaration, or questionregarding a short sale.
Credit Score Score may be lowered anywhere from 250 to
over 300 points. Typically, this will affect score
for over 3 years.
Only late payments will show, and after sale,
mortgage will be report as account settled
or account paid. This can lower score from
50 100 points, if all other payments are
being made. The credit effect of a short sale
can be as brief as 12 to 18 mos.
Credit History
Foreclosure will remain as a public record on a
persons credit history for 10 years or ore.
A short sale is not reported on a credit
history. There is no specific reporting item for
short sale. The loan is typically reported as
account settled or account paid.
Security
Clearances
Foreclosure is the most challenging issue
against a security clearance outside of a
conviction for a serious misdemeanor felony. If
a client has a foreclosure, and is a policeofficer, in the military, a government
employee, a security officer, or any 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 challengemost security clearances.
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(continued) FORECLOSURE SUCCESSFUL SHORT SALE
Current
Employment
Employers have the right, and are actively and
regularly checking the credit of all employees
who are in sensitive positions. A foreclosure,
in many cases, is grounds for immediate
reassignment or termination.
A short sale is not reported on a credit
report, and is therefore not a challenge toemployment.
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 in Florida, the bank has
the right to pursue a deficiency judgment.
In a successful short sale, it is possible to
convince the lender to give up the right topursue 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 a longer time to sell in a
declining market. This will result in a higher
possible deficiency judgment with greater
liability to the homeowner.
In a property negotiated 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 a later REO sale, resulting in a
lower deficiency amount with less liability to
the homeowner.
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6 Possible Short Sale Outcomes
There seems to be a lot of misinformation and uncertainty surrounding the after effects of Short
Sales for homeowners. This is due to the fact that there is a wide variety of lenders and lender
guidelines, and each Short Sale approval is specific to the homeowners financial situation and
will vary.
Before you can understand the possible outcomes, you must understand the difference
between a lien release, and a lien satisfaction.
Generally, the Lender has the right to approve the Short Sale in one of two ways:
1. Release the lien - allow the sale of the property to a new buyer, and still pursue furtheraction to collect the remaining debt or a portion of it, or
2. Fully satisfy the lien allow the sale of the property to a new buyer and forgive theremaining debt.
NOTE: Its important to realize that if a property goes to Foreclosure, a lender can STILL pursue
the homeowner for the shortage between what the bank subsequently sells the property for
and the original mortgage amount plus all collection costs (legal fees). The potential liability to
the homeowner will be greater if the property goes to Foreclosure due to greater collection and
holding costs incurred by the lender, and the lower value of the property (in a depreciating
market).
In negotiating Short Sales, SFSS will always ask the lender to fully satisfy the lien without the
homeowner having to bring any money to closing, with little or no consequences to the
homeowner.
The Seller should always seek legal and financial advice to help with all Short Sale outcomes.
The following are the three most common options that Lenders pursue from the homeowner
subsequent to the Sale.
6.1 Promissory Note
On rare occasions, Lenders will forgive mortgage debt, but will ask for an unsecured promissory
note for a specified amount to be signed by the seller at closing. This is typical if a mortgage has
PMI on it (Private Mortgage Insurance). For example, as a condition to Short Sale approval, the
lender may ask for a $10,000 promissory note, zero interest, to be paid over 10 years, with amonthly payment of $83. Usually the terms are very favorable. Or instead of the note, the
Seller will be asked to bring a cash payment, say $5,000, to closing. The Sellers can refuse the
note and the cash payment and tell the bank it is not an option they are willing to consider, or
counter offer with a lower amount. In a Short Sale, everything is negotiable.
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However, if the Short Sale does not close it may result in Foreclosure with greater potential
financial liability to the Seller.
6.2 1099C vs. Deficiency Judgment
In a Short Sale, there is the risk that the bank can pursue the deficiency (difference b/w totalmortgage owed and sale amount) in what is known as a deficiency judgment. However, if there
is no money to be recovered (if the seller doesnt have any other assets worth pursuing) a
deficiency judgment will usually not be enforced by the lender.
In most cases, the lender is more likely to issue a 1099C in the year after the sale, for the
amount of debt relief. The 1099C signifies that the lender has forgiven the debt, and has
written it off.
It is important to understand that the lender cannot issue a 1099C and pursue a deficiency. It
can only do either one, not both.
NOTE: A lender can still pursue a deficiency judgment even if the home goes to
foreclosure for the difference b/w the REO sale price and the total mortgage balance!!
HOWEVER, by doing the Short Sale, we can negotiate with your lender to waive the
right to pursue a deficiency.
In the state of Florida, certain assets are protected from a deficiency judgment.
These include your homestead (primary residence), life insurance policies and annuity
contracts, pension and profit sharing plans, IRAs, disability income and prepaid college
plans. (see your local attorney for details, do your own research)
One of the things we always ask for when negotiating a Short Sale is a full Satisfaction of Lien
or that the lender waive its right to pursue a deficiency. If the bank does satisfy the lien, the
bank will issue a 1099C for amount of debt forgiven.
Example: Mortgage balance: $450,000
Approved Short Sale payoff: $300,000
Shortage/Deficiency: 1099C Amount
In this example, the bank may send the seller a 1099C showing $150,000 as income. In the eyes
of the IRS, debt relief = income to seller. The good news is that in 2007, Congress passed theMortgage Forgiveness Debt Relief Act of 2007which eliminates taxation on debt forgiveness on
owner-occupied homes. It applies to debt forgiven between 2007 and 2012. So in the above
example, if the bank sends you a 1099C for $150,000, you would not have to pay income tax on
it if the property was your primary residence. You can read the Mortgage Forgiveness Debt
Relief Act of 2007at the IRS.govwebsite here:
http://www.irs.gov/individuals/article/0,,id=179414,00.html
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7 Our Short Sale Process Diagram
Seller considers a Short
Sale (SS)
Seller meets with SFSS to
discuss options. Seller
determines SS option is best.
SFSS Attorney creates
SS Package with a
payoff Offer to the
mortgage company.
SS package sent to
the mortgage co.
SFSS agent markets
property to find end
buyer while Short Sale is
being negotiated.
Lender reviews file for
completeness. Orders
additional docs as
required.
Lender orders
appraisal or
BPO to compare
with SS offer.
Attorney negotiates
SS with lender to get
lowest possible price
to get property sold.
Agent compiles list of
interested buyers, while
SS is being negotiated.
Short Sale successfully
negotiated with lender.
Obtain written Short Sale
approval from lender. SS
approval must be signed
by the seller.
Seller has time to find a
new place to live. Seller
has better options with
no foreclosure on credit
report.
Sales contract
signed with highest
and best buyer.
Property is SOLD.Title company receives
Short Sale approval and
performs title work.
Seller and Buyer come
to closing. Closing Docs
signed, property is SOLD
and CLOSED.
Seller escapes
Foreclosure. Mortgage
debt is settled. Seller can
move on with life.
0 30
Days
30 60
Days
60 -120
Days
120 - 180
Days
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8 Frequently Asked Questions
8.1 What does your company South Florida Short Sales (SFSS) do exactly?
SFSS is a Short Sale negotiation company, affiliated with a real estate brokerage. SFSS will set an
initial phone consultation with you to make sure youve explored all of your options (ie. loan
modification). If you decide that a Short Sale is for you, well set an appointment with you to
discuss the process in detail. We will guide you through all of the necessary paperwork and
what is required. We will submit an offer to your lender from one of our transactional buyers
with a completed Short Sale package. We will market the property and secure an end buyer,
while we are negotiating with your lender to accept a Short Sale. Once we have a written Short
Sale approval from your lender, we pay off lender(s) and close with the end buyer. The Short
Sale negotiations and closing will be handled by a local attorney owned title company at NO
COST to the Seller.
8.2 How much will this cost me?
SFSS does not charge any fees to the Seller. Our commissions and fees will be paid by the
lender. All seller closing costs will also be paid by the lender. No one should ever charge a
Seller to do a Short Sale.
8.3 How long does the Short Sale process take?
On average, from the time of the initial Short Sale package to the lender to the time of closing,
the Short Sale process can take anywhere from 3 to 6 months. The process is lengthy and will
depend on the cooperativeness of the mortgage lender and homeowner. It is important to be
patient during the process.
8.4 What are the sellers responsibilities in a Short Sale?
There are 4 main responsibilities of the seller in a Short Sale transaction:
1. Gather the required short sale documents required by the lender and give to SFSS. TheSFSS attorney will prepare a Short Sale package and send to the lender to start
negotiations.
2. Gather any additional documents required by the lender throughout the process. Manytimes the lender will request updated financial records.
3. Make the property available and presentable for showing.4. Show up to closing and sign all closing docs at the title company.
8.5 Can I receive any proceeds from the Short Sale?
Since you owe more than the property is worth, the lender will not permit you to receive any
proceeds from the sale.
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South Florida Short Sales
6538 Collins Ave #67 Miami Beach, FL 33141
305-390-0574 Main - 786-398-4614 Fax
8.6 Why pursue a Short Sale?
In a properly negotiated Short Sale, a homeowner can avoid a credit-destroying Foreclosure on
his/her credit report and have the mortgage balance forgiven by the lender with NO COSTS to
the homeowner. Short Sales are a NO COST alternative to avoid foreclosure when all other
alternatives have been exhausted.
8.7 Ive already received a foreclosure notice, is it too late for a Short Sale?
It is not too late to do a short sale if you have received a foreclosure notice. Plus, there are ways
in which we can help you extend the foreclosure timeline. A Short Sale can be approved and
completed up to the date of the bank auction. However, time is always of the essence and
there are never any guarantees.
8.8 Can the bank come after me for the balance, after the home is sold?
We will always request that the lender settle the debt in full as part of the Short Sale. In most
cases the bank will waive its right to pursue a deficiency as part of the written short sale
approval. That means that typically they wont come after you for the remaining balance.
Instead, they will issue a 1099C in the following year for the amount of debt forgiven (not
taxable if property is your primary residence). Unless the homeowner has significant assets
worth pursuing, most lenders will not pursue the deficiency. Realize that we can never make
any guarantees, as all lenders have different guidelines. However, lenders are very much aware
of homeowners inability to pay, so they often see further collections as fruitless. The lender
will disclose the terms of the Short Sale approval in writing, and give you the opportunity to
agree or disagree with any of the conditions prior to the sale of the property.
8.9 Im ready to get started, whats the next step?
1. SFSS will set an initial phone consultation with you to make sure youve explored all of youroptions and have decided that a Short Sale is for you. We will need you to fax us the
BORROWERAUTHORIZATION LETTER, (see next page 18) so that we can communicate with
your lender and confirm what documents they will require for the Short Sale. We will also
send you our SHORT SALE WELCOME PACKAGE.
2. We will then set an appointment with you to discuss the process in detail, and collect all ofthe required paperwork. We will assemble the Short Sale package to forward to our
attorney to start the negotiations with your lender.
3. We will begin to market the property for sale, and will ask for your cooperation in theprocess.
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South Florida Short Sales
6538 C lli A #67 Mi i B h FL 33141
JEANETTE HERNANDEZ-SUAREZ, P.A.
ATTORNEY AT LAW
11400 NORTH KENDALL DRIVE, SUITE 205
MIAMI, FLORIDA 33176
Telephone: (305) 596-1044 Facsimile: (305) 596-0981
BORROWER AUTHORIZATION LETTER
Date:_____________,2011
Lender: ______________________________
LOSS MITIGATION DEPARTMENT
To Whom It May Concern:
Property Address:___ ___________________
Loan Number: ___________________________
Dear Sir/Madam:
I/WE hereby authorize the law office of Jeanette Hernandez Suarez, P.A. and its legal assistants
(Jeannette M. Hernandez and Max Hernandez) to inquire about my mortgage and obtain information
in reference to same and negotiate any and all issues pertinent to our mortgage, including for
negotiation of a short sale.
I hereby agree to indemnify and hold harmless, The Law Office of Jeanette Hernandez-Suarez, P.A. and
or each of their respective assigns, associates, employees or agents from any liability for actions taken
by the lender or as a result of this contemplated short sale transaction.
Should you have any questions, please do not hesitate to contact me directly.
x_________________________________________
Borrower:__________________________________
SS#:__xxx-xx-_______________________________
x__________________________________________
Co- Borrower (if applicable):____________________
SS#:__xxx-xx-________________________________