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FAQ's About Central Florida Short Sales

What is a Short Sale?  When a lender, bank or mortgage company decides that they will accept less then what is owned on the mortgage.  The homeowner has the final say so as to whether they will agree on the terms and conditions of completing a short sale.
 
Who Qualifies?  Each short sales is different due to banks having their own criteria.  The best way to see if you qualify for a short sale on your Orlando area home is to contact an experienced real estate agent who works with home owners in short sale situations.  We do, contact Custom Builder Realty today.

Custom Builder Realty Selling Central Florida Short Sales!

Why choose Custom Builder Realty To assist you?  We provide honest, accurate evaluation of your particular situation.  Short sales are a case by case situation based on individual bank policies.  We have worked with banks globally to assist homeowners who are in short sale situations by putting together a short sale package that gets approved quickly. If you are a Central Florida homeowner, we can help.  We assist home owners behind on their mortgage payments in Lake Mary, Sanford, Orlando, Debary, and surround areas.  Contact us.

What Will Happen to My Credit?  A foreclosure can and will affect your credit score much more than a short sale.  Do not stop making your payments until you close on your short sales if you are current.  One late payment will adversely affect your credit.  Good news if you should happen to get behind on your monthly payments while it will show up on your credit report once the property closes as a short sale you mortgage company, lender or bank will report the account settled. An option to is to contact a credit repair company once you have closed and settled on your short sale property.

Do I Have to Pay Federal Taxes On The balance of the write off that the Bank Accepts?  Again, each lender, bank and financial institution practice their own lending policies.  With a great hardship letter and true financial hardship many times banks, mortgage companies and lenders will treat some short sales as debt relief.  You may receive a 1099 of the difference and depending on what type of 1099 will determine whether you will be paying federal taxes on the balance of the write off the bank accepts. The Mortgage Tax Debt Relief Act has been extended to 2012.

What If I Have Two Mortgages on One Property?  Lending practices at one time were very lax and it is not uncommon for home owners to have a mortgage and home equity line or a line of credit or 2nd mortgage.  Keep in mind both lenders must approve and agree to the terms of the short sale. Chances are with two loans the first lender will not foreclosure because they stand to lose money. As a matter fact sometimes the first lien holder will take a shortage to prevent foreclosure.  Also, if the first mortgage lien holder foreclosures the 2nd mortgage holder knows that they will not get anything.  Its in both banks, lenders or mortgage companies best interest to work with one another for a positive outcome in a short sale situation.  

Is There Proof I will be Released from The Debt of a Short Sale?  Yes, there is proof and it will be in a document called a short sale approval.  You might see the following terms, released of the debt in full, no deficiency judgment or satisfaction of mortgage.  Also a 1099-C will be issued once the property closes if you are released the from the debt of a short sale.

Short Sale VS. Foreclosure?  Once the debt is settled with the bank for a short sale you no longer owe anything to the bank.  If the bank has to complete the process of foreclosure there is a great chance you might receive a deficiency judgment.  A foreclosure on a credit report vs. a short sale on a credit report can be impacted and prevent you from buying a home for a very long time.

The Cost of Selling A Short Sale?  When selling a property in short sale the lender, mortgage company or financial institution will pay your costs which include commissions, back taxes, title fees, escrow fees etc.

How Fast Can I Get Out of My Short Sale Situation?  While banks, financial institutions, and mortgage companies have improved with handling short sales we have found that short sales vary based on number of short sales in the area, the banks time line so the time line can be anywhere between 60 days to up to a year.  The upside is you can remain in the property until you close!


Why Do I Have To Be Behind On My Mortgage Payments To Do A Short sale?  This is just another short sale myth.  You do not have to be behind on your mortgage payments in order to sell your property in a short sale situation.  

Is An Attorney Necessary?  We always advise our short sale homeowners to seek the advice of an attorney, In Florida the law does not require that an attorney must oversee a short sale.  Experienced Short Sale real estate agents can handle the process from 1st contact with your bank to closing.  At Custom Builder Realty we do not charge any upfront fees!  

So Who Negotiates My Short Sale?  We do and do not take it lightly, we always do as you ask and have your best interest at heart.  Our team of professionals have been trained and are very experienced with working with the banks from beginning to end.  We understand the process and have helped Central Florida home sellers in short sale situations for years.  Contact Custom Builder Realty today.

Can A Bankruptcy Save My Home?  Chapter 7 individuals can determine which debt is wiped clean and which debt is they will continue to pay on so if you choose to continue to pay your mortgage, you can exclude this from your bankruptcy. A Chapter 13 bankruptcy allows you to repay your debt within 3 to 5 years.  A bankruptcy has a negative impact on credit its important to speak with an attorney and accountant to determine if a short sale or filing bankruptcy is the best option for you.

Can I Just Call A Random Real Estate Agent to Help Me?  You can but we don't advise it.  While home owners may think all real estate agents handle short sales, some real estate agents prefer not to and some just do not have the skill and training.  You have to remember you only have 1 chance to complete a short sale, so if you leave your property to an agent who is not well versed in short sales your property could end up in foreclosure.

If you are considering selling a short sale in Central Florida you do have options and alternatives to a short sale or letting your home go into foreclosure.  Contact Custom Builder Realty to discuss options for home owners who want to save their home!  

Disclaimer: Custom Builder Realty, LLC is not associated with the government, and our service is not approved by the government or your lender.  Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.

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