Elements of a Short Sale

Unfortunately, many people fall prey to the numerous misconceptions about Florida short sales, resulting in their failure to pursue these means as a valid debt relief option. As an attorney that focuses heavily on representing those facing debt relief issues, I have heard all of them. The good news is that a Fernandina Beach short sale is a great option for a lot of homeowners that owe more money on their house or condo than it is worth.  Accordingly, the following is a quick rundown of how a Fernandina Beach short sale proceeds:

  • Meet with Attorney Robert Peters: When trying to get a handle on your outstanding debts, working with attorney Robert Peters starts with a free consultation to go over your financial situation, your legal and financial goals, and all of the options available to you. If a short sale is the best option for you and your family, he will work on negotiating with the lender as well as the other important aspects of making sure you are approved for a short sale.
  • Providing Finances: When it comes to Fernandina Beach short sales, the amount of money you owe on your home or condo is more than the market value of the actual property. Other paperwork you will need to work with your attorney to prepare includes an accurate and up-to-date snapshot of all your finances showing that you are under a financial hardship and unable to keep up with your payments. Paystubs, other outstanding bills and bank statements usually make up the bulk of the hardship paperwork in short sale cases.
  • Determining Property Value: As mentioned above, to qualify for a short sale, you must owe more than your house or condo is currently worth and be late at least 3 payments. Upon receiving your initial request for a short sale, your mortgage lender will immediately order an appraisal of the property from one of their preferred companies to determine the value of your property.  so you can get your property on the market as soon as possible.
  • Bona Fide Offer: Working with a real estate agent and your attorney to find someone who can and wants to buy your property is the next important step in the process. A bona fide offer in a short sale is a little different than a traditional sale in that everyone who has any interest in your property will need to approve the sale of your property – this includes your bank but also anyone that may have a lien against your property as well.
  • Necessary Approvals: Even if you qualify, have shown a hardship, and found a willing buyer, you still need to secure the necessary approvals from your bank to proceed with a short sale. This involves careful negotiations that the short sale is in all parties (including 2nd mortgages)  best interest and best left to an experienced attorney to make sure the conversation goes favorably to you.

While the name certainly implies otherwise, a short sale can actually be a lengthy process because of the need to work with  third parties, your bank and others on the approval to handle your debt in this matter. For this reason and many others, working with an experienced attorney is always your best option and handling any debt situation. Robert Peters Attorney can help.

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