A real estate short sale is when a bank agrees to accept a payoff figure on your mortgage that is less than what is owed.
What’s in a short sale for you?
There is no ideal scenario that will allow you to magically catch-up on late mortgage payments and keep your Tampa home. It’s to your benefit to take an active role in resolving the matter, as opposed to just hiding from your lender or walking away from the property before the foreclosure auction.
As a seller, there are some cons to a short sale. The obvious is that you will lose your Tampa home, but that was going to be the final outcome in foreclosure proceedings. You will also walk away without a profit from the sale, and your credit score will take a hit.
However, because you are honestly trying to make a good faith effort, your bank may look more favorably on the situation, and possibly be willing to minimize the impact on your credit. However, the main benefit is that is due on your loan waived.
How do I convince my lender?
There’s no guarantee you will be able to convince your lender on your own that you are a good fit for a short sale.
It’s not an easy task to handle on your own. It’s going to take evidence and a compelling argument, the type a seasoned Tampa real estate attorney is prepared to field. You need someone prepared to assemble the following package for presentation to the lender:
- An authorization letter.
- A letter indicating hardship.
- A statement verifying the property value.
- An active signed purchase offer or contract.
- A settlement statement for the mortgage holder.
While you may now be prepared to consider a short sale, it’s always a good idea to have an experienced real estate attorney on your side. An attorney will serve as a level-headed counselor on your side, walking you through one of the most difficult periods in your life. The office of Frank Miranda Attorneys at Law is ready to assist you with your short sale as well as an array of other real estate related issues.