Things to Look Out For in a Loxahatchee Short Sale.
There are things to look out for in a Wellington short sale. Sellers should be aware of the consequences and issues they face before they proceed with a Loxahatchee short sale:
1. Credit impact
Loxahatchee short sales have less impact on the seller’s credit history than a foreclosure, but it still has an impact on one’s credit standing.
Loxahatchee short sales are generally reported as “paid less than full balance” in the seller’s credit report.
2. Deficiency judgement
A deficiency is the shorted difference in the Loxahatchee short sale’s price and the seller’s mortgage debt. Some lenders do not run after this deficiency and release the seller from all liability.
However, some lenders will still pursue a deficiency judgement and collect the unpaid amount from the seller after the Loxahatchee short sale.
Before you do a Loxahatchee short sale, make sure to check with the lender whether they will pursue a deficiency judgment.
3. Taxable income
If the lender does not pursue a deficiency judgment and releases the seller from any liability, then the seller is free from mortgage debt. But some state laws classify forgiven debt as a taxable income in the IRS form 1099-C.
Consult your tax advisor to find out your personal tax liabilities before you continue with a Loxahatchee short sale.
4. Long waiting period
The short sales process involves so many parties and with the increasing number of short sales in Loxahatchee, lenders are having backlog with paperwork so it wouldn’t be a surprise if there will be many delays and a long waiting period in the Loxahatchee short sales process.
These are some of the major things to look out for in a Loxahatchee short sale which an experienced Loxahatchee short sale agent will be able to help you with.
Contact Nestor Gasset and Katerina Gasset at 561-753-0135 today to help you navigate through the Loxahatchee short sale process.
Loxahatchee Short Sales Gone Wrong.
You might have heard stories of Loxahatchee short sales gone wrong. Almost ⅓ of all short sale deals fall through. Knowing the reasons why these short sales fall through will help you ensure that your Loxahatchee short sale will be a success.
Here are some of the reasons why Loxahatchee short sales go wrong and how to avoid them:
1. Stricter standards in lending
Buyers find it more difficult to obtain a home loan these days. More than 25% of applicants for mortgages are rejected, which makes it even more intimidating for borrowers to attempt to get a mortgage.
Tip: To save yourself from the hassle of going through a Loxahatchee short sale just to find out that you aren’t qualified for a home loan, make sure to get a prequalification and preapproval from the lender to determine if you are qualified for a loan before you make an offer for a short sale.
Submit your offer with a preapproval letter. A preapproval letter bears more weight than a prequalification letter since this signifies that the lender has approved you for a loan. A preapproval letter is as good as cash to a Loxahatchee short sale seller.
2. Low Appraisals
Some lenders hire outside appraisals and the disadvantage of this is when the appraiser is not too familiar with the area of the Loxahatchee short sale, they will rely solely on the numbers in the books.
This means that if there are several foreclosures in a particular neighborhood, it will significantly affect their appraisal, and they may overlook the desirability of street that the Loxahatchee short sale is in.
Once the appraisal turns out lower than the amount of the Loxahatchee short sale, the buyer will not be able to get the full amount of the loan to cover the payment for the home, making it necessary for the buyer to cover the difference with cash.
Tip: Hire an appraiser who is very familiar with the area. If the appraiser needs a GPS to find your Loxahatchee short sale, this should be a warning sign that they are not familiar with your area.
3. Perfectionist buyers
There was a time when buyers didn’t make a fuss if home inspections uncovered some defects in need of minor repairs because this became an opportunity for them to negotiate for a lower price with the seller.
In today’s market, buyers are tighter with their finances and a Loxahatchee short sale that needs repair could give them second thoughts about buying since they would need to spend more for it later on for repairs.
Tip: Have your Loxahatchee short sale professionally inspected before listing it. Once you discover all the damages and problems, make all necessary repairs, however small they are. Your Loxahatchee short sale agent should make this report available to all serious buyers so they won’t end up surprised when they get their own inspection done.
4. Short sales is a painstaking process
Short sales in Loxahatchee and elsewhere are long and usually frustrating, with many parties involved. While waiting for an approval for your Loxahatchee short sales, the prices of homes continue to drop every day.
Although many buyers look for great bargains in Loxahatchee short sales listings, the risk is the time they lose in waiting.
Tip: Fannie Mae has released new guidelines to streamline the waiting time for short sale approval. These guidelines were effective since November 2012 and has benefitted both buyers and sellers with shorter waiting periods. This means the sellers can also move on faster with their lives after a Loxahatchee short sale.
A Loxahatchee short sale gone wrong can be avoided if you follow the tips mentioned above. Hiring an experienced Loxahatchee short sale agent is the best way to ensure that your Loxahatchee short sale will be a success.
Contact Nestor Gasset and Katerina Gasset at 561-753-0135 today to help you navigate through the short sale process in Loxahatchee.
The Benefits of a Loxahatchee Short Sale.
There are many benefits in opting for a Loxahatchee short sale to avoid a foreclosure. In a short sale transaction, the bank will allow you to sell your home for less than what you owe. You will need an experienced Loxatchee short sale agent to help you through the process and the negotiation. The idea is for you to be able to sell the home, often on a significant discounted price, while your lender recovers the majority of what you owe.
Although this may not totally absolve you from the debt you owe from your mortgage, this is still a better option than a full-on foreclosure and here’s why:
1. You may protect your credit with a short sale. A Florida short sale allows both you and the lender to be ultimately in a better position because the lender, too, will prefer to recoup only part of the mortgage amount than to absorb a total loss from a foreclosure. More often than not, the bank will be willing to cut its losses from the difference in the amount that was paid and the amount of the loan than go through a costly deficiency judgement litigation.
2. You can prevent a foreclosure. It will be in the best interest of everyone involved if a foreclosure will be avoided as this affects not only you as the homeowner, but also the housing market and the lender.
3. You can have more control. While short sales will also involve negotiations, meetings and a lot of paperwork, the process will still be more like a regular sale as compared to the laborious and stressful process of foreclosures. You can have an active role in dealing with the bank, the buyer, and your Loxatchee short sale agent throughout the process.
4. You can have peace of mind. Remember that a short sale is at no cost to you. While it is true that short sales may not guarantee that there will be no financial implications on you credit, it will open the door to possible solutions as compared to a litigious foreclosure. It will not only leave you in a more positive position, it will also decrease your financial woes and salvage your credit to a degree.
Keep in mind that every cloud has a silver lining, and that may be a Loxahatchee short sale in your case. Let us walk you through the process, give you all the information you need, and provide you with all the necessary tools with our Loxahatchee short sale services. Call Katerina Gasset at 561-502-1577 today to get all your Loxahatchee short sales questions answered.