A Boynton Beach short sale is something homeowners have to request from their lender.
Your home mortgage is worth $480,000
Your house will sell today for $280,000
Negative balance $200,000
If your lender approves of your request for a Boynton Beach short sale, then you have to sell your house for the amount – $280,000 – you indicated in your short sale package (more about this later). Naturally, the proceeds would go to your lender.
The remaining balance of $200,000 however is something you either do not have to pay or you will be given the chance to pay back at some point in the future.
How to Prepare a Boynton Beach Short Sale Package
At first glance, it may seem like only the craziest lenders would allow homeowners to short sell their properties. After all, it would mean losing a good amount of income. Well, that’s not exactly true.
If your lender does not approve of your request and you still are not able to pay off your loan, your lender would eventually be forced to start foreclosure proceedings. The latter will cost the lender a good amount of money, too, and sometimes it may be more than what they’d end up spending or “losing” with a short sale.
In the end, a Boynton Beach short sale may be the lesser of two evils – so to speak – for the lender.
To improve your chances of getting your short sale request approved, you will need to give your lender a short sale package. It is a set of documents related to your property and which can serve as valid proof as to why it would be more sensible for the lender to allow you to short sell your property. This package also contains details regarding the short sale you are promoting.
Some of the things that a lender would usually want to see or know about with a Boynton Beach short sale package include the following:
When preparing a Boynton Beach short sale package, the goal is to make it as easy as possible for the lender to rule in your favor.
Mathematically and realistically speaking, owing more than what your Boynton Beach house is worth is a nightmare that no one would want to live in. But it is reality, and fortunately for you there is a feasible and somewhat painless way to get out of this kind of predicament.
Your house in Boynton Beach Florida was something you bought for $600,000. You paid $60,000 in cash and you took out a loan to pay for the rest, which is $540,000.
Over the years, you paid your mortgage faithfully. But then the real estate market crashed, the economy never really got back to its feet, and your business was badly hurt by the dismal turn of events.
Your house can now only be sold for $320,000.
Unfortunately, you still owe your lender $400,000.
What should you do?
Option #1: Have your loan modified.
Needless to say, this is easier said than done. Loan modifications mean more work for the lender, and they won’t be willing to work on it unless you can satisfactorily prove to them that the new conditions would prevent you from defaulting on your loan in the future.
Option #2: Your house in Boynton Beach is foreclosed.
If you feel that paying off your mortgage isn’t worth the trouble, then you could simply sit and do nothing. Wait for your lender to get mad and file for foreclosure. While the court debates on whether your lender’s bid for foreclosure is valid, you can meanwhile enjoy staying in your home mortgage-free for months. Sometimes, foreclosure proceedings may even take more than a year.
Just remember, however, that all good things come to an end. If your lender’s bid for foreclosure is approved, then things would move extremely fast after that. You will lose your home, you will not receive a single penny from the foreclosure and sale of your home in Boynton Beach and your credit score would go down.
At the end of the day, you need to ask yourself this: were all the initial benefits worth the consequences?
Option #3: Declare bankruptcy.
Declaring bankruptcy is the easy step, though. It’s getting the court to approve of the declaration that’s the difficult part. Worse, declaring bankruptcy may not be enough to save your Boynton Beach home from foreclosure.
Option #4: Short sell your house in Boynton Beach.
Your last option is to apply for a Boynton Beach short sale. Most homeowners don’t consider this because they’ve heard all the horror stories about lenders rejecting Boynton short sale applications outright.
But why not take your chances? The worst that can happen is that your lender turns you down and foreclosure proceedings would go on. It’s the same outcome if any of the other options don’t work out. But what if it does? With a Boynton Beach short sale, you have the chance of walking away from your home free from debt and your credit score saved from the horrors of a foreclosure notice!
Homeowners facing foreclosure tend to be desperate, but that should not be reason enough to ignore your gut instincts and accept extremely suspicious offers. If your Boynton Beach home is a candidate for foreclosure, you are naturally looking for options or alternatives to avoid it.
Is Foreclosure a Valid Option?
Foreclosure in itself is an option. If you want to be entirely methodical and thorough with your decision-making process, then you need to consider the pros and cons of a Boynton Beach foreclosure as well.
PROS: Months of rent-free stay in your home
Almost no or zero payment is required from you for processing a foreclosure
Burden of proof regarding the validity of the foreclosure filing is on the lender
CONS: A negative impact on your credit score
A negative impact on your ability to find a job
Buying or renting a new home upon the foreclosure of your house in Boynton Beach
If the cons far outweigh the pros in your thinking then that’s the time you should consider other options.
Other Possible Alternatives to a Boynton Beach Foreclosure:
Loan modification – Ideally speaking, this alternative is beneficial for you and the lender. There is less paperwork required when an existing loan does not have to be replaced with a new one and only has to be modified. Unfortunately, most homeowners don’t qualify for a loan modification.
In order to qualify for this option, a lender usually requires the homeowner to prove his capacity to handle future payments. Obviously, the lender would need proof that the new conditions for the loan would be enough to allow the homeowner to pay on time. If the homeowner can’t prove that, then there’s no point in modifying the loan.
Bankruptcy – This is largely beneficial for the homeowner alone. If you can prove that you literally have no assets left to pay for your mortgage, then declaring bankruptcy is an option and it may save your Boynton Beach home from foreclosure. Keep in mind, however, that keeping a roof over your head is a possibility and not a guarantee. Bankruptcy is a complex business and the government is more than wary about homeowners trying to avoid foreclosures by declaring bankruptcy – even when they’re not.
Short Sale – This, too, is a mutually beneficial option but you also need to qualify for it first. If you qualify for a Boynton Beach short sale, the lender may benefit from short selling your home if the price means losing less than what he would have spent when filing a foreclosure.
There are other options, but the three mentioned above are considered the most common alternatives to Boynton Beach foreclosures.
Boynton Beach Short Sales Are Up!
According to a recent report (June 2012) from RealtyTrac, the number of foreclosures in Palm Beach County is up compared to last year’s. What’s surprising about this, however, is that the number of foreclosure homes for sale doesn’t quite match up. In normal circumstances, more foreclosure filings would mean foreclosed properties for sale but if there’s any increase that’s been taking place then that would be in the short sale market. Overall, this should be good news for homeowners hoping to apply for Boynton Beach short sales.
Here are several reasons why you should aim for a Boynton Beach short sale of your home right this very minute.
Lenders appear to be more in favor of short sales at the moment.
Boynton Beach short sales are, in a nutshell, cheaper to process compared to foreclosures. Lenders have not escaped the brunt of the economic crisis that’s continuing to rock the entire world. They, too, have suffered and would like as much as you do to mitigate their losses. One way of doing so is to allow homeowners to short sell their properties. Of course, keep in mind that the wind could blow in another direction any time. If you want to short sell your home, do so now!
You have more chances of qualifying.
Take advantage of the situation while lenders are feeling more in disposed toward approving a short sale application of Boynton Beach homeowners. If you have applied for a short sale in the past but failed, the outcome could be different this time. Perhaps then, your lender hadn’t any financial problems. It could be different this time, but you’ll never know until you give it a try.
More buyers are probably looking for short sale homes right now.
The increase in Boynton Beach short sales is not something only financially challenged homeowners and their agents care about. Homebuyers are eager for this kind of news, too.
Lenders agree to a short sale in hope of reducing their losses. Naturally, they’d be in a hurry to dispose of the short sale property and would unlikely quibble about the price. Expert Boynton Beach agents know this, and they would therefore advise their clients that now is the right time to purchase a short sale property.
If you apply for a Boynton Beach short sale today, your home could be the one their buyer would purchase!
How Do You Choose the Right Boynton Beach Short Sale Agent for You?
To make sure that the Boynton Beach short sale agent you will be working with is capable of doing everything possible for your short sale application, you need to make sure that he or she is able to display the following skills.
But first the Boynton Beach short sale agent you are considering hiring has to display comprehensive knowledge about the latest laws pertaining to short sales. The agent must also show a keen interest in keeping himself or herself regularly updated about the most recent changes in such laws. In other words, you should find out what measures the agent is taking to stay updated. Lastly, the agent must not be too proud to admit that certain aspects of a Boynton Beach short sale may be outside his or her expertise. A know-it-all is all talk but of no actual help to anyone!
Most people run away from the idea of filing and gathering paperwork at the first sign of it. If you feel the same, you will be happy to know that the best agents can considerably lessen your burden in this score. A good Boynton Beach short sale agent will make a list of the exact documents you require, find out which ones you feel you will have trouble with, and do his best to assist you with those.
Paperwork is very essential to short sales. When a short sale package does not include the complete set of documents required then your package could get rejected outright.
As long as you provide your Boynton Beach short sale agent the authority to do so, then you won’t have to speak with your creditor until it’s absolutely necessary. Your real estate agent can do the following on your behalf:
There are many other things a good agent can do for you. It all depends on what your situation warrants.
Last but not the least, a good Boynton Beach short sale agent will also be capable of finding the perfect buyer for your home! ‘Nuff said.
How Do I Write My Boynton Beach Short Sale Hardship Letter?
Writing a Boynton Beach short sale hardship letter can be made easy if you first try to distance yourself from it. Instead of thinking of it as a personal letter that forces you to beg for someone else’s mercy – and it’s really not that – you should think of it as a business letter that asks your lender to make a more feasible business decision regarding your home in Boynton Beach. After all, that’s exactly what it is.
In order to effectively distance yourself from what’s happening – and which would consequently put you in a better position to write a Boynton Beach short sale hardship letter, consider the following suggestions.
Distancing yourself from the situation will lead to the following advantages:
Now that you are in the right frame of mind to pen your Boynton Beach short sale hardship letter, the tips below may prove helpful as well.
Do I Qualify for a Short Sale in Boynton Beach?
This kind of question is best directed to a Boynton Beach short sale specialist and for several reasons.
If you ask a lawyer about this —
You will naturally get an answer based on the legal aspect of short sales. They can help you figure out, for instance, who the law – or HAFA in particular – considers eligible for a short sale. Some new set conditions required by HAFA from short sale applicants in Boynton Beach include the following:
There are, of course, other conditions and all those may be explained to you fully. What a lawyer might not be able to help you with, however, is figuring out other conditions that your lender may require and be in the position to ask for.
A lawyer also won’t be able to help you figure out how much you should ask for from a buyer or how much you should ask your lender to accept for the short sale of your Boynton Beach home.
If you ask any real estate agent about this—
As you should know by now, real estate agents greatly vary in terms of experience, expertise, and even the way they work. They also have different kinds of business networks. Plainly put, a real estate agent who has no specialization in short sales won’t be able to give you all the answers you require regarding your qualifications.
Any real estate agent can prepare a short sale package for your Boynton Beach home. That’s true. But not any real estate agent will be able to improve your chances of having your short sale package approved. That’s also true, and you can ask anyone you know who had managed to short sell his home in the past.
If you don’t want to know how to qualify…if you want to make sure that you qualify as well then you need to get help from someone who specializes in short sales.
If you ask any short sale specialist about this—
Lastly, finding a short sale specialist is not enough. You need to make sure that the short sale specialist has working familiarity with the Boynton Beach area, too. Then and only then will you know just how qualified you are for a Boynton Beach short sale.
Can I Sell My Home as a Boynton Beach Short Sale?
Had someone recently suggested that you consider a Boynton Beach short sale for dealing with your existing mortgage? Did someone tell you that short sales are a possible solution for preventing the bank from foreclosing on your property? You will be pleased to know that their suggestions have merit, but only if the following conditions apply.
You can prove that you are suffering from a form of hardship.
Generally speaking, Boynton Beach short sales are offered or approved where homeowners with financial trouble are involved. These are homeowners who may be behind their payments already for several months and have already received a notice for foreclosure.
If you are not suffering from financial hardship right now, that does not mean you can’t apply for a short sale, though. In the end, it’s all about giving the bank a valid or plausible reason as to why you are not able to pay off the full amount of your mortgage anymore.
A medical emergency, a sudden death in the family, the loss of your job – all of these can cause potential financial hardship and for some banks, that’s usually enough reason to approve of your short sale application.
You get the approval of all your creditors.
If you have a second or third mortgage taken out on your home, it would mean having to negotiate with two or three creditors. If you are lucky, the new laws on Boynton Beach short sales would apply in your case. If so, you only have to speak with your first loan provider. The rest of your mortgages would be automatically considered paid once your short sale application has been approved.
But if the new laws do not apply to you, then it’s the hard way out. You have to make sure that all parties agree to your request. If not, your hands are completely tied.
You have a short sale specialist representing you.
Last but not the least, no short sale applications ever prosper if it’s only the homeowner who’s working on it. More often than not, banks prefer to deal with homeowners through their agents. Doing so means having to spend less time explaining the legalities and mechanics of the short sale process. They are also usually more comfortable negotiating with agents because the latter are more likely to be realistic with their demands and offers.
If you want a Boynton Beach short sale for your home then work on finding the very best agent to represent you today!
A Boynton Beach Short Sale May Be Your Best Option
Is a Boynton Beach short sale truly your best option? The only way to find out is by considering other options that may be open to you.
Will your lender be willing to modify your loan?
You probably don’t need to go as far as short selling your home in Boynton Beach if your lender would agree to modify your loan. The key here lies in convincing your lender that your loan is worth modifying. It’s also important that the loan is modified in the way that would benefit you the most.
Here are some ways in which loans are modified:
Even if you don’t seem to qualify for a loan modification on paper, it wouldn’t hurt to try asking for one nonetheless. After all, it’s what your lender think and not what statistics suggest that matters.
Would you qualify for bankruptcy?
Bankruptcy laws vary from state to state. How much you earn and how many dependents you have are taken into account when filing for bankruptcy. The type and value of assets you have naturally matter, too.
What can foreclosure do to you?
In your weakest moments, you may sometimes ask yourself if a Boynton Beach foreclosure is really that bad. Ultimately, it depends on how you view the consequences of such an action.
Is a Boynton Beach short sale the answer?
If none of the options above suit you or if you qualify for none of them, then yes a Boynton Beach short sale may indeed be your best option.