There are many kinds of short sale services available to Wellington FL homeowners, but not every agent will be capable of offering them all. For your benefit, however, you should take as much time as needed for finding one who can assist you with short selling your home from start to finish.
There are a lot of things to negotiate about if you want to short sell your home. Depending on your circumstances, your agent may have to negotiate with your creditor, insurance company, neighborhood association representative, bank manager, buyer – and the list can still go on and on.
Because of this, negotiation is considered one of the most vital types of short sale services you should look for in a Wellington Florida real estate agent. Without an agent’s effective negotiation skills to back you up, your short sale application can be rejected right from the start.
What do you do if your creditor asks you for comprehensive proof of income? How do you prove that you are suffering from a severe form of hardship? How do you come up with a document to show that your home can only be sold within a certain price range?
You need valid documents for all these problems, but how and where do you start? Without short sale services from a premier Wellington FL agent, you’ll find it easy to feel overwhelmed by it all. You may even be tempted to give up applying for a short sale if you don’t have an agent supporting and motivating you to be patient and persistent.
Marketing and Promotion
It’s important to remember that short sale services are real estate services essentially, which means your Wellington FL specialist would also have to put in hours of work promoting and marketing your house for sale.
• Come up with an Internet marketing strategy for your house for sale
• Design and distribute print advertising like brochures, flyers, and posters
• Organize open houses and assist you in conducting tours for prospective buyers
• Negotiate with agents of prospective homebuyers
• File necessary paperwork to close the deal
The best real estate agents won’t leave you without support when the short sales contract has been signed, sealed, and delivered. But you only have to let your agent know that you need extra help and the best ones won’t hesitate to give it to you.
• Provide you with additional assistance for finding a new home
• Help renegotiate the terms of your remaining balance
• Refer you to a lawyer who can review your contract
Florida Foreclosure Attorney is Disbarred – Another One Bites The Dust
This time it is Fort Lauderdale attorney William Timothy O’Toole. The Florida Attorney General sued the Foreclosure Defense and Loan Modification operation that O’Toole ran.
The Florida State Supreme court disbarred him this week. The disbarrment must last at least 5 years.
In April he was suspended in what is called an “emergency suspension” on the allegation that his business was causing “great public harm”. This is what the court order said.
The name of his company is “O’Toole’s Summit Legal Group” and is in Boca Raton Florida. This company employed sales people who would make calls to homeowners all over the country not just here in Florida. He worked with at least 3,000 clients according to the court order.
These salespeople would charge up front fees of $2,000 to $3,000 and promised to save struggling homeowners from foreclosure. But the law suit says, that this attorney and his company did little to nothing to work on the cases. There are dozens of complaints by homeowners who paid this money and got nothing in return. These complaints went to the Florida Attorney General.
O’Toole has been a member of the Florida Bar since 1992. He has been involved in 20 bar complaints.
In October the Florida Attorney General got a court order to shut down his operation.
The disbarment order also says that O’Toole became partners with a non-attorney named Randy Baker and split his fees with him which is against bar rules.
The order also says that O’Toole led clients to believe that he was handling their cases when in fact, people he hired who had NO legal training were the ones taking care of his clients.
This happens alot where the attorney becomes partners with someone who is not an attorney since the law passed here in Florida stating that only attorneys can accept upfront fees from a client for a loan modification. But attorneys can only charge those fees if they are a part of a bigger case.
We know attorneys who are approached often with these sorts of scenarios. The attorneys we know say this is unethical and they run away from those people who are trying to circumvent the law.
The Florida Bar came out to warn attorneys about joining forces with non-legal businesses who are trying to skirt the law forbidding taking the upfront fees.
This may come as a surprise to many, but not all Wellington Florida short sale agents actually do their own “dirty” work or short sale processing. In some cases, for instance, a Wellington FL short sale agent may actually be in charge of marketing and promoting your property alone while leaving the rest for another short sale company, agent, or expert to process.
There are certain advantages to enjoy in this kind of setup but it would ultimately depend on the short sale processing company that your agent is working with. If it is tried and experienced with short sales then you would have nothing to worry about. Meanwhile, your agent can concentrate on the marketing and selling side of things while the other party works behind the scenes, helping you arrange and gather the necessary documents and making your short sale package.
There are, of course, drawbacks as well and these are more obvious on the onset compared to the potential benefits for this kind of setup.
Firstly, you could only be relying on the word of your Wellington Florida short sale agent that the short sale processing company he or she is working with is reliable and noted for its efficient and effective service. But how can you really be sure of that if you don’t know the company to begin with?
Secondly, it may not be possible for you to contact the short sale processing company directly. This means that every time you need to communicate something about short sales, it has to go through your agent first. This can cause significant delays if you are not careful.
What to Look for in Wellington Short Sale Agents
Ultimately, it would be better if you trust a short sale agent in Wellington FL that has experience both on the marketing and short selling side of things. This way, someone will be able to answer any and all kinds of questions you have about your home and the short sale process.
Consider compatibility as well. Simply put, do you get along with your agent? If not, then nothing good may happen between the two of you as you may both be wasting time arguing with each other every step of the way. It’s very important that you find a Wellington Florida short sale agent you won’t feel uncomfortable to talk to anytime and whose methods for short sales you heartily approve of.
Even with financial aid packages starting to pour in from banks, there are still hundreds or even thousands of homeowners who won’t qualify for such help and are thus in dire need of the services of a Florida short sale specialist. Some time ago, the courts have ordered a number of banking corporations to offer additional financial aid – or even return deeds to previously foreclosed homes – to homeowners who have been wrongfully evicted from their properties.
If, however, you are only in the brink of foreclosure then such financial aid packages are not yours to enjoy. There is still a good chance that your bank or creditor would seize your property and foreclose it if you don’t take proper precautionary measures ahead of time. One such measure would be to approach a Florida short sale specialist and get him or her to help you.
Are Short Sales the Ultimate Solution?
Unfortunately, not all homeowners would be considered eligible for short sales. The conditions vary from one creditor to another. Ultimately, however, you or – more specifically – your Florida short sale specialist would have to prove that it’s to everyone’s benefit that you are allowed to short sell your home as soon as possible.
What Do Short Sales Entail?
Let’s say that your house in Florida may be sold today at $600,000. Unfortunately, your home used to be worth $800,000 and in fact you have mortgaged it to the hilt and thus owe the bank $800,000. Obviously, it would be pretty impossible for you to sell your home at its original price. But if you sell your home based on its current market value, then that would mean losing about $200,000 in the process.
$800,000 Original value of your home or the amount of your mortgage balance
$600,000 Present market value of your home
$200,000 Negative balance if you sell your home at its present market value
This won’t be that big a problem if you fully own your property and it’s not encumbered in any way. Although you are losing $200,000 technically, it’s not something that would significantly hurt your finances.
But it’s different if you owe $800,000 on your home and are no longer able to keep up with mortgage payments. To prevent foreclosure and an unwanted blemish on your credit record, you would need to sell the home. But even if you do sell it, you would still be left with a $200,000 debt you can’t pay.
Now, this is the part where a Florida short sale specialist can step in and help you out.
A short sale specialist would do the following to ease your burden:
Another Wellington Short Sale CLOSED- 1134 Aviary Rd in Wellington Florida SOLD!
This property is located in the Emerald Forest subdivision in Wellington Florida. This home has 3 bedrooms and 2 bathrooms with a private pool and about 1,370 square feet under air and 1,808 total square feet.
This short sale was sold for $135,777 which was a pre-approved price from the short sale lender.
This property sold for ALL CASH. The buyers paid cash for this property.
In fact, the last three closings we had were ALL CASH closings on the buyers sides.
This Wellington short sale was our listing and from the date of the listing to the date of sitting at the closing table it was 215 days.
The sellers are so happy with Nestor Gasset and all he did to get this deal closed.
Contact Nestor Gasset and Katerina Gasset at 561-753-035 to go over your short sales options.
Your Wellington agent needs to present a short sale package to your creditor if you want to short sell your home. Without your cooperation, even the best Wellington short sale specialists won’t be able to guarantee a short sale of your property.
First of all, you need to prove that you are the legal owner of the property that you wish to short sell. This means presenting the deed of ownership of the house and lot. Never sign over your deed to anyone other than at the closing of your short sale by a reputable title company.
You also have to prove to the creditor that he or she is talking to a representative you have officially authorized to short sell your property. Your short sale lender will not under any circumstances talk to anyone on your behalf without a written authorization. This is the first document we need signed by you to. We then send that authorization letter to your lender and then they will speak with us.
Even if it’s a strategic short sale you are after, it still wouldn’t hurt to write a short sale qualification letter. Also known as a hardship letter, this is the part where you let your creditor know your reasons for wanting a short sale. Ultimately, it depends on the bank or creditor that owns your note as to whether or not you’re required to write this letter.
If you are, you need to prove that even though you are not presently suffering from financial difficulties you are already in the brink of doing so if nothing changes about your situation.
Naturally, your creditor would want proof about your income. If you have your own company or business, your short sale package should include its financial statements. Some agents and creditors prefer financial statements of the past three years, but it really depends on the creditor’s requirements. Financial documents typically included are the profit and loss statement, balance sheet, and perhaps the cash flow statement of your business.
If you are employed then you may need to present your pay slip and income tax return.
If you have additional sources of income, documents pertaining to those should also be presented. Last but not the least, you may also be asked to include your latest bank statement in your short sale package.
Offers and Confirmations for Purchase
It would always help if you have a confirmed buyer for the house. If so, your short sale package should include a written confirmation from the buyer about his or her desire to buy your property. Some Wellington short sale agents may also ask the buyer to write a letter stressing their urgent desire to move in to their future home – if the purchase pushes through, that is. And with a beautifully prepared short sale package, there’s a good chance that everyone – you, the homebuyer, and creditor – would get what they want.
Has your Wellington short sale agent asked you to write a short sale qualification letter? If a terrible case of writer’s block is preventing your pen from pouring out words onto paper, here are some tips that could prove helpful in your writing quest.
Think of it as “coming clean”.
Everyone makes mistakes. Deliberate or not, foolish or not, you can’t keep blaming yourself for your financial hardship. When writing a short sale qualification letter, it’s essential that you forget about your pride and just come clean about your financial situation at present.
Think of it as a report.
Reports are different from, shall we say, essays in the sense that creative liberties are more abundantly offered with the latter. A short sale hardship letter is not an essay. You do not have the luxury of time to wax poetic about the difficulties you are facing. Rather describing your financial struggles with qualitative words, you need to focus on cold hard facts and figures. If they come with computations, so much the better! Stick to anything that’s measurable.
Don’t, for instance, be content with merely stating that you are on the brink of poverty. Rather, you could say that you are earning $XXXX, which is XX% below the average income in your area.
Think of it as a story.
Although the short sale qualification letter should have a factual foundation and can serve as a paragraph-formatted report of your financial situation, your letter should also read as a story. No creditor would feel the need to approve of your short sale application without any justifiable reason.
So you’re earning a below-average salary. Why is this so? Is it your fault? Are other extenuating factors to blame? You need to make them see the bigger picture and understand what contributed to your current situation.
A good short sale qualification letter is one that has a past, present, and future. With regard to the past, your letter should summarize the various factors and events that led to your current state. Describe your struggles at present and explain how both the past and present are likely to paint a horrible picture of your future if you don’t short sell your home.
Think of it as an appeal.
Lastly, remember that creditors don’t owe you anything. It is not your right or privilege to ask for a short sale. You are in their mercy – and not the other way around. As such, you need to take very care when choosing the right tone for your short sale qualification letter. It must sound like an appeal and not a demand.
Many homeowners don’t take much time to consider which Florida short sale Realtor to work with – to their everlasting regret. If you think that you can always switch to another agent every time you find yourself dissatisfied with the old one without suffering any disadvantages – think again! The more time you waste working with unsuitable Realtors would mean fewer chances for avoiding the foreclosure block.
A dependable Florida short sale Realtor knows all about the rights which homeowners and lenders are entitled to.
This does not mean you have to sign up with a Realtor with a law degree, though. Sometimes, that can only serve to muddy the waters as your Realtor could find himself having a conflict of interest being a lawyer as well. Rather, you just have to make sure your Realtor does his or her best to stay updated about all laws relevant to homeowners and their creditors.
A dependable Florida short sale Realtor won’t give up at the first sign of trouble.
“When the going gets tough, the tough gets tougher.” That’s certainly an apt motto for short sale agents. Short sales are anything but short, and you can easily find yourself abandoned by your agent if he or she does not have the necessary patience to see things till the very end.
Short sales are like a waiting game, and those who have more patience always win the game. A patient and diligent Realtor would regularly call your lender, make appointments, and send follow-up letters until your short sale application is processed and – hopefully – approved.
A dependable Florida short sale Realtor will stand up for your rights.
Many real estate agents don’t bother standing up for their client’s rights if they feel that doing so is more trouble than it’s worth. Naturally, a dependable short sale Realtor feels differently about such things. Dependable agents take their jobs seriously, and they also strongly value the trust their clients place in them. If they feel that a lender is abusing his rights against a client homeowner, a dependable short sale Realtor would do everything legally possible to put things to right.
A dependable Florida short sale Realtor knows when to say “I don’t know”.
Last but most importantly of all, dependable real estate agents are not know-it-alls. They know that pretending knowledge won’t help their clients’ case, but they’re also aware that ignorance is not an acceptable excuse for failing their clients. If, for instance, there are certain issues that your lender has brought up which are rather technical and legal in nature, a good agent would refer you to a trustworthy lawyer instead of giving baseless advice.
Perhaps you have noticed how a lot of real estate agents have been recently promoting Wellington Florida short sales as an effective way for avoiding foreclosure. While that is certainly true, you should know that not even the most experienced and competent agents can guarantee the completion of short sales.
When choosing which agent to work with for short selling your home in Wellington, FL it is very important that you find someone who is absolutely honest with you and will not seek to convince you with exaggerated claims or, worse, false or misleading information about short sales.
LIE #1: NO CASH CONTRIBUTION FROM THE HOMEOWNER
Be very wary of agents who tell you that they can short sell your home without any contribution on your part. Even if they have found a willing buyer for a more than reasonable price for your home, it’s still ultimately the lender’s call as to whether that price is sufficient or not.
Your creditor or lender is also the only one who can determine whether you should make a cash contribution or not upon the sale of your home.
LIE #2: NO LARGE CASH CONTRIBUTION FROM THE HOMEOWNER
Some agents play it a little bit safer by saying that Wellington Florida short sales typically involve only a small amount of cash contribution. While it’s not as worse a lie as the first one, it’s still an absolute lie.
Lenders don’t just have a say as to whether homeowners would be required to contribute cash or not when their homes are sold through short sales. Lenders naturally have the power as well to determine how much the homeowner would have to contribute.
Even if your agent argues by pointing how the Wellington FL market is currently doing very well and should thus lead to an increase of your property’s value, it’s still the lender’s call. If he wants you to pay more than what other lenders are asking from other homeowners, he’s well within his rights to do so. It’s just your bad luck to have an unreasonable lender.
LIE #3: NO PROMISSORY NOTES
Other agents may tell you that successful Wellington Florida short sales will mean full payment of your mortgage. While that’s true, these agents may also neglect to inform you that your lender would also require you to sign a promissory note afterwards. Promissory notes often but not always require you to pay the remaining balance over a specified period of time without interest.
LIE #4: FULL PAYMENT NOTED
Again, this is not always the case. Lenders who agree to Wellington short sales may, however, insist that it is noted in public records that a full payment had not been made.
It’s very rare for homeowners to find a Florida short sales agent with both considerable experience and absolute integrity to offer on the table. Unfortunately, it’s only that kind of short sales realtor who may be able to help you get rid of that unwanted promissory note.
SHORT SALES AND PROMISSORY NOTES
Many agents love to talk about short sales in the most positive terms and then gloss over the not-so-nice consequences that they come with. Promissory note is one such consequence, and it’s sad when homeowners only learn about them when it’s already too late.
Short selling your home does not always guarantee that your remaining debt would be 100% forgiven. There may be times that a lender would only approve of Florida short sales if and only if the homeowner agrees to sign a promissory note.
What Your Florida Short Sale Agent Can Do about Promissory Notes
A skilled Florida short sale realtor won’t just help you with short selling your property. If he or she truly cares about you as a client, then your realtor would also do everything possible to improve your financial future.
Unsecured promissory notes
The best agents do their utmost to ensure that homeowners only sign unsecure promissory notes. An unsecure promissory note means that you will not be beholden to surrender possession of any of your assets to your lender in the event that you fail to honor your obligation for whatever reason.
Reduced amount for promissory note
Let’s say your home is currently valued at $250,000 but you owe your creditor $400,000 for it. If you short sell your home at its present market value, you will still end up owing $150,000. This is what your lender would ask you to sign a promissory note for. Negotiations between your agent and lender may, however, cause a further deduction of your debt.
Instead of having $150,000 written in your promissory note, you could be asked to pay just $120,000.
Reduced settlement of promissory note
Using the above example, let’s say that you still end up signing a promissory note amounting to $150,000. It’s possible for your agent to continue discussions on your behalf and perhaps even convince your creditor to settle for $120,000 and consider it as full payment of your remaining debt.
Lastly, your Florida short sale agent can also make sure that the installments you are required to make to settle your promissory note would be free of interest charges.