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:
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.