Short sales remain today a subject of confusion for many stressed homeowners. If you own a mortgaged property and are afraid of foreclosure, then you definitely need to take the time to learn more about this all-important topic. Who knows? It could be the answer you have been looking for all these months –the one that can keep your credit score from plummeting and enjoy a fresh new start in your life.
What Happens When Your Property Is Listed as a Wellington Florida Short Sale Home?
Many homeowners erroneously believe that the word “short” is a reference to time. Rather, it’s actually in reference to the payment you will be making to settle your debt. More specifically, your payment will be short of the actual amount you owe but because this is a short sale your creditor will nevertheless consider the reduced amount as full payment of your debt.
You owe $355,000 on your home.
Your home is currently worth or can sell at an average price of $520,000.
There will be a negative balance of $165,000 if you sell your home at the price indicated above and use it to pay your creditor.
If, however, your creditor has agreed to a short sale then —-
Other alternatives are possible but the important thing to remember here is that short sales give you the key to effectively avoiding foreclosure and thus save your credit score in the process.
Who Can Help You with Short Sales?
Technically speaking, any real estate agent or Realtor may be able to help you short sell your home in Wellington FL. There is just no guarantee that they will be effective in their work, much less succeed in short selling your property.
If you want to increase the chances of having your home subjected to a short sale, then you need to make sure that you are working with –
The two conditions above are the most important qualifications to look for in an agent to represent your home in a short sale. If your agent has these characteristics, then you have more reason to hope that your Wellington FL house will be approved for a short sale.
First Wellington Short Sale We Closed On Was In February 2008.
We started listing short sales in Wellington as a commonplace listing in January of 2007. Those were the days! LOL! It was the Wild Wild West in short sales. That was the tag line if you attempted to do short sales in 2007 in Wellington Florida!
To put this in perspective Countrywide was still in business! In fact, during those times, Countrywide was the bulk of the short sales. Those were interesting times. There were no rules. In fact, Countrywide did not have many rules.
There was no HAFA, there was no HAMP, there was NO Equator, there were no incentives to lenders to get short sales done. In some ways we liked it better in the Wild West days because it was the agents and brokers that knew how to negotiate short sales and communicate with the banks that the lenders and servicers depended on.
We were in the ground zero of foreclosure territories in Florida. We were the ones in the streets watching the values of homes fall literrally overnight and waking to a storm of homeowners in default and a flood of foreclosures coming down. So the lenders depended on Nestor Gasset and other brokers like Dan Forbes on the west coast of Florida to help them determine the values of the properties we were listing as short sales.
The first short sale we actually closed was on February 21, 2008. It was a condo in St. Andrews in Wellington.
The address is 11750 Saint Andrews.
We knew that this short sale was only going to sell for about $190,000 at that specific time. But the servicer who was not a big lender countered our offers back at $269,000. We had a nightmare of a BPO from an agent who lived over 80 miles away from Wellington with no clue of our values here. He did not have any comps because there were no comps because nothing sold since the bust.
We fought, fought, negotiated, negotiated. We kept showing the lender that the longer they were stubborn about $269,000 the lower price they would end up getting.
In the end, we were right, the lender was wrong. The unit finally sold after all this time for $150,000!!!! Look how much money the bank lost on this deal!
This Wellington short sale condo was on the market for 402 days!
When agents complain today about short sales taking so long we remember the days of over a year for short sale approvals and that is without buyers walking! Never say never, when we were writing about these negotiations on ActiveRain back then, 99% of the agents said they would never do a short sale. There were posts I can dig up about how doing short sales would be too much liability to brokers so they would not allow their agents to participate in short sales. Now, look at the posts on AR about short sales:).
We had to create our own short sale addendums because even the state boards did not have forms for short sales in January of 2007 and our MLS, well, that is a whole other post!
Here is the testimonial letter that the owner wrote to us after his closing:
I just wanted to thank you again for all your effort and hard work. I can truly say that I have never had a real estate agent work as diligently and persistently as you both did selling this condo. I really thought it would be impossible to sell the condo in this brutal market, but you somehow came up with multiple buyers and put a deal together. I will highly recommend you to anyone I know who is in the market to buy or sell property in the Palm Beach area.
You guys are the BEST!!!
Some homeowners end up trusting the wrong Wellington Florida short sale agent simply because they feel it is “bad” manners to ask too many questions. That, unfortunately, could be their biggest mistake. As the owner of the house, you are the agent’s client and you therefore have every right to ask all the important questions.
What Questions Should You Ask a Wellington FL Short Sale Agent?
It’s your privilege to choose the best Wellington Florida short sale agent you can find to represent your home. Don’t waste that chance as you usually only get one with your creditor or banker. To help you find the ideal real estate agent to work with when short selling your home, here are several questions you could ask a prospective agent.
How long have you been working with short sale clients in Florida?
There are two reasons for asking this question. Firstly, you want to make sure that the agent has more than enough experience working with short sales. It’s a whole new ballgame compared to the rest of transactions taking place in the real estate industry.
Secondly, you want to make sure that the agent’s experience has to do with short sales in Wellington FL or at least in the state you’re in and elsewhere. This is critical because laws on short sales tend to vary from one state to another. Short sale laws in Florida, for instance, are practically the opposite when compared to those regulating short sales in California.
How many short sales have you completed in the past three years?
A Wellington FL short sale agent with numerous short sales tucked under his or her belt is all well and good, but how many of those sales had actually taken place in the past three years? You need to make sure that your agent has been active in recent years. If not, your agent may not be in the best position to understand current trends in the local real estate market. Consequently, your agent may also not be aware of the latest modifications on laws governing short sales.
Has the Wellington FL short sale agent dealt with your creditor in the past?
Having an agent familiar with the ins and outs of working with your creditor would be a huge bonus so try to find one who comes to the negotiation table with this kind of experience. If your loan is serviced by your bank but is actually owned by another company, it would be helpful if your agent – or even you – have the necessary contacts to get in touch with the latter.
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:
One look at that title and you’re probably thinking it would be unlikely for Florida short sale specialists could still be of help after the short sale of your home has been completed. But actually, if you chose the right short sale agent to represent your home then he or she could still be of service to you even after the ownership of your former home has been transferred to its new owner.
Unsecured Promissory Note
At the very least, your realtor should be able to ensure that you are only signing an unsecured promissory note with regard to your remaining debt.
Let’s say that your home, which you still owe $700,000 on, is now only worth $440,000. As such, when your creditor approves of short selling your home you would still end up with a $260,000 loan balance. If your creditor insists that you still pay this back on some indefinite or definite date, your agent should ascertain that your agreement to pay the debt would only be guaranteed with an unsecured promissory note.
This way, if you lack the necessary amount in the future to pay your remaining debt, your creditor would not be able to confiscate any of your properties right away as alternative payment.
Some Florida short sale specialists don’t stop once they’ve gotten their clients an unsecured promissory note. They also make sure that their clients have all the advantages needed to get them back in the right financial footing and thus be able to pay their existing balance. As such, many agents work hard to convince creditors to accept payment by installment instead of asking for a lump sum.
Discounted or Reduced Payment
In some cases, Florida short sale specialists convince agents to settle for a smaller amount as payment of the remaining debt. In a way, it’s like going through a short sale all over again but this time you are short selling your loan and not your home.
This, of course, is the best thing that Florida short sale specialists can do with their clients. Going back to our previous example, you would be left with a debt of $260,000 after short selling your property. If your agent is able to convince your creditor to waive the rest of your debt then you would no longer have to pay the remaining $260,000. The short sale of your property alone is already considered complete and full payment of your mortgage.
Whichever scenario you end up with, you can be sure that hiring the best Florida short sale specialists would mean your credit record will remain safe and protected from any unwanted mention of foreclosure.
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.
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.
Florida Homeowners’ Complaints Rise Against Attorneys
The Florida Bar reported that they have received over 1,400 complaints against attorneys in Florida that are related to the housing crisis.
Let me preface that Richard Zaretsky and Marlyn Weiner are attorneys we refer sellers to. These two attorneys are ethical. Let me also say that there are good attorneys and bad attorneys just as there are good real estate agents and bad real estate agents.
Sometimes if a homeowner has not been paying their mortgage payment for many years and their attorney is not getting paid to defend them anymore, they may lose their home eventually to a foreclosure. The disgruntled homeowner than complains that his attorney committed fraud.
Marlyn Weiner says this is the most common call out, fraud. But not all cases are fraudulent.
In fact, so many complaints are coming in that the Florida Bar had to start a loan modification category, a mortgage fraud category and a foreclosure fraud category. None of these categories existed before 2010.
The first recorded loan modification complaint was in November of 2010. I won’t say any names but I can bet I know who that complaint was against. There was this one attorney who was doing loan modifications and foreclosure defense and several of our sellers had hired him. He did not even show up to the foreclosure hearing as agreed in one of the cases. In another case, he took our sellers money for services to defend them in a foreclosure and he never responded to the plaintiff’s counsel.
The number of complaints is not stopping either. The Florida Bar had to an attorney to help the ones that are buried in these complaints. They have never seen anything like this in the history of the Florida Bar. This one attorney is trying to take care of these cases. The complaints account for 17% of all the open Bar cases.
Consumers are complaining about the conduct of attorneys. So far 793 cases are now opened.
So far 208 of the 1,394 housing- related cases resulted in some form of disciplinary actions against the attorneys in the complaints. The disciplinary actions range from public reprimand to disbarment.
The biggest problem is that many lawyers took classes in loan modifications and then started to process them. But just going to a class does not make you proficient in doing loan modifications.
Here in Florida a law passed in 2010 requiring licensing for any person or entity doing loan modifications in this state.
In 2008 a Florida law was passed that bans charging up front fees to do loan modifications.
Attorneys were the exception to this law. Marlyn told us that many of those third party loan modification companies then approached lawyers to make deals with them in order to continue to run their businesses here but through the attorney’s firm. Many of these attorneys must not be happy with this arrangment they got themselves into.
We believe that the next wave of complaints will be coming from homeowners who felt they were pushed into doing Deed in Lieu instead of short sales. Many attorneys get paid up front and a flat fee rather quickly for getting a Deed in Lieu through instead of waiting for a short sale to get approved.
If you are facing foreclosure- you do have options. Contact Nestor Gasset or Katerina Gasset at 561-753-0135 to go over your options. A Florida short sale may be an option for you. We offer a no obligation confidential phone interview. Don’t wait until a court date is in your hand to act.
When we get a call from a seller who wants to list their property with us to get their Wellington short sale approved we can not just take the seller’s word that he or she is able to list their property.
We always run a check in the MLS before we place your listing in the MLS under our brokerage name.
Is your property listed with another Realtor® in the local MLS that your property is located in?
That has happened to us a few times.
We get a call from a seller and the seller wants to get their Wellington Short sales approved. But we first must list the property for sale.
Our MLS board has a rule that you can not have two listings in the MLS that are for the same property.
If we see that your property is listed with another agent- we call the agent of record or broker of record to see if they are planning to cancel their listing in the MLS.
Even if they have told the seller verbally that they will cancel the listing- if the listing is NOT cancelled in the MLS- that would be considered a duplicate listing and that is against the MLS rules. We have to abide by the MLS rules if we want to put our listings in the MLS to get maximum exposure.
We ask to see the cancelation form signed by the broker of record and the seller. If that cancelation form was signed by both the broker and the seller- we can send that form to the MLS. The MLS would then contact the agent to ask the agent to remove the listing from the MLS, move it to canceled in order that we could then add the listing to the MLS.
The MLS is supposed to automatically catch a duplicate listing and not allow the agent who is entering the duplicate listing to finish entering it into the system. But sometimes it slips by.
We just had that happen to us. We have a Wellington short sale listing that has not been approved to be canceled in writing by our broker and another agent was able to duplicate the listing in the MLS so that agent must not have checked to see if we had canceled the listing.
This is another reason why we need to check to see if your property is still listed with another agent or broker before we attempt to enter your listing into the MLS.
There is a lot more to Wellington Short Sales than many people think about or that meets the eye.
Don’t wait for foreclosure- take action today. Call us today at 561-753-0135 for a confidential short sale interview. We will help you determine and go over your options to losing your home to a foreclosure.
Wellington Home Prices- Higher Home Prices?
The South Florida real estate market is heating up! And Wellington is part of South Florida:) This is great for our real estate markets.
The South Florida real estate market is improving. The forecast is that home prices will rise another 6% before the end of this year.
Forecasters put Palm Beach County, Broward County and of course Miami/Dade counties to be in the top 10 highest and best performing markets in metro markets!!!
Of course there are pockets and areas within these counties that are still going to be going down in price for the next year or so. But the affluent and sought after markets have started to rise and will continue to go up.
These three counties were the first to fall- a huge fall in the bust. Following were Nevada and California markets followed by Arizona markets. But first to fall are first to rise!
From the collapse of the real estate market- most of South Florida saw prices plummiting down 50% to 60% from the boom prices. We are back to 2003 and 2004 prices in most places in South Florida.
Less than one third of all the sales taking place right now in South Florida are foreclosed properties. That number will be in flux for a while as the lenders continue to foreclose on properties stuck in the courts.
Phoenix is projected to have the highest increases in prices up to about 12.1 %. That is good news for Phoenix also!
About 60% of all the sales in South Florida are ALL CASH purchases. This helps keep the markets healthy and there does not seem to be any let up in foreign buyers eager to own a piece of Paradise in South Florida!