There seems to be a lot of misinformation out there lately about Short Sales. While Short Sale transactions can be a bit of a complicated process, here are the three very uncomplicated things that lenders are looking for to see if you qualify:

1. Financial Hardship: This is simply defined as a verifiable reason that has or will cause you to miss a payment.  Some examples of these are a mortgage payment adjustment, loss or cut hours of employment, too much debt to cover outgoing bills or a business failure.
2. Monthly Shortfall: Mortgage lenders want to be able to see you cannot afford to pay your mortgage. With this comes the requirement for you to provide your real estate agent a financial worksheet that shows this.  The shortfall equation is very simple: Total Monthly Income – Total Monthly Expense = Monthly Shortfall.  Be prepared to provide this information to your real estate agent to negotiate on your behalf for a short sale approval.
   
3. Insolvency: You must be able to prove to the lender that you owe more than you have in cash. Insolvency can be proven in many cases, even though you may still have some money for living expenses.
   

We would like to stress that a hardship must be proven as to why you cannot pay your mortgage.  In the past we have seen confusion over this – just because you do not wish to own an investment property that is not producing the income you expected, does not (in itself) mean that you will be approved for a short sale.  Lenders are starting to get together their guidelines for streamlining the Short Sale process – different lenders require different types of information.  By contacting a real estate agent knowledgeable in Short Sales, they are able to help you through the process.

For more information about the Short Sale process go to www.TheShultzTeam.com for more information.

Art & Brigitte Shultz
The Shultz Team
#1 Team at Re/Max Premier Realty
Ocala, FL
Toll Free: 800-243-4087
Direct: 352-291-1276
Info@OcalaVisualTours.com
www.OcalaVisualTours.com
* FREE OCALA MOVING TRUCK WHEN YOU BUY OR SELL THROUGH THE SHULTZ TEAM! *

People tend to refer to Short Sales as being shrouded in mystery – that there is not a lot known about them.  We have heard feedback from a lot of clients and wanted to straighten out a couple of short sale myths that may be floating around out there.  If you currently are in a situation where you must sell your home and you owe more on your home than what it’s market value is (what a buyer is willing to pay and a mortgage company is willing to loan based on your area’s home values), a short sale on your home can be a solution to your problem. Many of these myths have evolved over time, but understanding the reality is a way to help yourself. Seven short sale myths are:

1. Short sales are impossible and never get approved. It is true that short sales are more difficult to get to the closing table – but they are not impossible. A Realtor with knowledge and experience in short sales has the ability to assist someone in such a situation – We, The Shultz Team are short sale specialists in the Ocala area and have extensive training to help homeowners in distress.  Our job is to bring buyers and sellers together on a situation that helps both parties and settles with the banks on your behalf.
2. Banks Don’t Accept Short Sales. This is an interesting one.  Banks are really doing whatever they can to avoid a foreclosure.  Look at it from their perspective – they are business people – do they want a distressed home in their inventory?  Then they will be responsible for maintenance (including the yard, repairs, leaks, vandalism/security, Homeowner’s Association Fees, taxes, etc…) and if the property is already in a distressed condition they will be acquiring someone else’s problems.  They lose more money when it gets placed in their inventory as a bank owned property than if they sell it on the short sale market (which is more appealing to investors and deal-seeking buyers who want more home for their dollar).
3. You must be behind on your mortgage payments in order to negotiate a short sale. In reality, many lenders today focus on verifiable hardship, monthly cash flow shortfall and insolvency – not just people in default.  What does this mean to you?  If you can prove that your current economic situation has changed and there is no possible way for you to afford all of your debts that you may qualify for hardship.
4. Buyers Are Avoiding Short Sales. Contrary to popular belief!  Many buyers are looking for “hot deals” in today’s market.  Many agents report that buyers and especially investors are contacting them looking for short sales and distressed properties (which typically sell less than market value). Short sales are becoming synonymous with a “good deal”, specifically with international buyers and investors.
5. Listing your home as a short sale is embarrassing. There is no shame in doing what is right for you and your family.  Recent estimates state that 1 out of 5 homeowners in the U.S. is in this situation. You are not alone! If selling your home as a short sale is what will help alleviate stress and a burden you cannot afford to bear any longer, then it is the right choice to make.
6. Banks prefer to foreclose a home rather than short sale it. Banks do NOT want to foreclose. Foreclosing on a home is a very costly expense which involves a lot of paperwork, legal fees, court costs and hourly employees to handle the files.  Banks, investors and the federal government have all publicly stated that if a person qualifies for a short sale, then the deal needs to be considered.  It is more costly for a bank to go through foreclosure than a short sale.  If the home has more than one lien on it (a second mortgage or an equity line) then when the home forecloses it becomes the property of the first lien holder.  This is why most second mortgages are willing to “settle” for a lesser amount to remove the lien – if they do not, they are in danger of not getting anything for their investment. Talking to a short sale specialist will help clear up more of this information – feel free to contact The Shultz Team at any time for a consultation.
7. There is not enough time to negotiate a short sale before my property foreclosure. Many lenders today will stall a foreclosure up to the final day of the process, with a legitimate contract and a Realtor who can represent you properly.  You may contact The Shultz Team to discuss what your options are.

Are you facing foreclosure and need to sell your home for a short sale (selling the property for less than what the current mortgage amount is)?  The Shultz Team are experienced Short Sale Specialists and are more than happy to assist you in selling your property under stressful circumstances. With an aggressive marketing plan, great communication and fully staffed office, we are ready to help save your home and credit from foreclosure.  Feel free to contact Art & Brigitte Shultz to discuss your situation and start a plan to save your credit TODAY – the clock is ticking and sooner we are able to assist you, the more likely we are to have a successful closing.

For more detailed statistics or a free market analysis, please call or e-mail us.
Info@TheShultzTeam.com or call us direct at 352-291-1276.

Art & Brigitte Shultz
The Shultz Team
#1 Team at Re/Max Premier Realty
Ocala, FL
Toll Free: 800-243-4087
Direct: 352-291-1276
Info@OcalaVisualTours.com
www.OcalaVisualTours.com
* FREE OCALA MOVING TRUCK WHEN YOU BUY OR SELL THROUGH THE SHULTZ TEAM! *

The newest addition to the government’s housing-rescue plan may be able to help homeowners having financial difficulties and are in fear of losing their homes to foreclosure.  It includes initiating a standard process and incentives for a Short Sale in lieu of foreclosing. This will simplify their financial issues by starting a process for borrowers to transfer ownership of their home to the mortgage company through a “deed in lieu” of foreclosure. This will benefit the buyer because they avoid “foreclosure” and it will also benefit the lender because they will avoid the high foreclosure expenses and large amount of time it takes to complete the process. This year, Short Sales have increased to 20% of all home sales. Compared to foreclosure, a Short Sale is less costly to the lender, but for the buyer it must be approved and can take up to four months to complete. The government plans to pay mortgage-servicing companies up to $1,000 and borrowers up to $1,500 for completed Short Sales and “deed in lieu” of foreclosure.  These incentives were created to help make this process go faster.

Are you facing foreclosure and need to sell your home for a short sale (selling the property for less than what the current mortgage amount is)?  The Shultz Team are experienced Short Sale Specialists and are more than happy to assist you in selling your property under stressful circumstances. With an aggressive marketing plan, great communication and fully staffed office, we are ready to help save your home and credit from foreclosure.  Feel free to contact Art & Brigitte Shultz to discuss your situation and start a plan to save your credit TODAY – the clock is ticking and sooner we are able to assist you, the more likely we are to have a successful closing.

For more detailed statistics or a free market analysis, please call or e-mail us.

Info@TheShultzTeam.com or call us direct at 352-291-1276.

Art & Brigitte Shultz
The Shultz Team
#1 Team at Re/Max Premier Realty
Ocala, FL
Toll Free: 800-243-4087
Direct: 352-291-1276
Info@OcalaVisualTours.com
www.OcalaVisualTours.com
* FREE OCALA MOVING TRUCK WHEN YOU BUY OR SELL THROUGH THE SHULTZ TEAM! *

In December of 2007 Congress signed into law the Mortgage Forgiveness Debt Relief Act. Under regular circumstances, when a lender chooses to forgive all or part of a borrower’s debt, the forgiven amount is considered income and the borrower is liable to be taxed. This law offers relief to the homeowner in that it extends relief for three years, covering debts discharged through calendar year 2012. Amendments have been made to remove tax liability and allow the borrower and lender to work together to find a common and beneficial solution for both parties. This debt relief is limited to primary residences only and the amount of forgiven mortgage debt allowed to be excluded from income tax is $2 million per year.

For more information about the Mortgage Forgiveness Debt Relief Act go to the I.R.S. website.

You can also review our last statistics update for Ocala Florida Real Estate for January 2008

For more detailed statistics or a free market analysis, please call or e-mail us.
Info@TheShultzTeam.com or call us direct at 352-291-1276.

Art & Brigitte Shultz
The Shultz Team
#1 Team at Re/Max Premier Realty
Ocala, FL
Toll Free: 800-243-4087
Direct: 352-291-1276
Info@OcalaVisualTours.com
www.OcalaVisualTours.com
* FREE OCALA MOVING TRUCK WHEN YOU BUY OR SELL THROUGH THE SHULTZ TEAM! *