Ocala Real Estate Talk

Posts Tagged ‘ocala short sales’

A lot of people in the Ocala area owe more on their house than it’s worth. Some for one reason or another they just can’t their make the mortgage payments any more. Others question the idea of continuing paying a $300,000- mortgage on the house that isn’t worth $200,000-  any more.

There are financial repercussions when you stop paying your mortgage. Here is a great link to a recent article in the Orlando Sentinel that lays out a time line of exactly what happens when you stop masking your mortgage payments.

Your credit score will take a hit up to 200 points. Your credit card interest rates will go up. Insurance rates are tied to your credit score and they will be effected. Finally if you lose you house you will need to become a renter. Most landlords will want a good credit report before renting.

Too many people don’t know what to do if they can’t pay their mortgage. The worst thing you can do is nothing.  Call or email me and if I can’t help you I’ll refer you to someone who can help.

If you’re read my Ocala Foreclosure Guide on my web site or what I’ve written about Ocala short sales on my blog then you know that I don’t like short sales at all. The biggest problem I have with short sales is that so few actually close. Of course the banks are part of the problem. Some banks are so overwhelmed that they just don’t have the staff capable of handling the work load. Then there are buyers and their Realtors that don’t submit a complete short sale package. The over worked staff at the banks will just put these incomplete deals to the bottom of the pile. Buyers themselves have to take responsibility too for a lot of short sales that don’t close. Too many buyers want a cheap house without the work and hassle and just bail out before the offer can get processed. Most short sales take about 8 weeks to close.

From a buyers point of view I still think foreclosures are an easier transaction. I will admit that as time goes on I am seeing more short sales close as both Realtors and banks get better at them.

For sellers I think short sales are a last resort and better than foreclosure. I used to turn down short sale listings but I’ve recently changed brokers. My new broker, Coral Shores Realty, owns an affiliated title company that has a short sale program. A lawyer from the title company will prepare the short sale package as follows.

1. Title and Lien Searches.
2. Compilation of Seller’s documents to demonstrate financial hardship:
a. Preparation of Financial statement and hardship letter
b. Tax Returns
c. Bank Statements
d. Comparative Market Analysis of Property, which can also be provided by
Realtor or Appraiser
e. All other documentation that they deem necessary.
3. Preparation of Preliminary HUD-1.
4. Direct and Constant Negotiations with the loss mitigation department of the
Lender(s). This is one of the most critical areas that is usually the down-fall
of most short-sale transactions.
5. Responsible for obtaining final approval from all lender(s) in establishing an
APPROVED SHORT SALE PRICE.

Call me for further details and fees regarding listing your Ocala short sale.