According to the National Association of Realtors, while foreclosures have fallen by 26% nationwide in the past year, Florida continues to be a hotbed for these types of homes sales. Among the top 10 cities with the highest foreclosure rates in the country, eight are in Florida.
Long delays in processing the foreclosures have been part of our state’s problem. We rank No. 3 among states with the longest timelines for completed foreclosures, taking an average of 944 days. (In New York, it takes an average of 1,029 days, and in New Jersey, it takes 999 days.)
“Millions of home owners are still living in the shadow of the massive foreclosure crisis that the country experienced over the past eight years since the housing bubble burst — both in the form of homes lost directly to foreclosure as well as home equity lost as a result of a flood of discounted distressed sales,” says Daren Blomquist, vice president at RealtyTrac.
HOWEVER, if foreclosure continues to be a concern for you, or someone you know, we can help you by supporting you through an alternative – a Short Sale. So what exactly is a short sale and how exactly can WE help YOU?
A short sale is when a bank agrees to accept less than the total amount owed on a mortgage to avoid having to foreclose on the property. This is not a new practice; banks have been doing short sales for years. Only recently, due to the current state of the housing market and economy, has this process become a part of the public consciousness.
To qualify for a short sale:
◾Your house must be worth less than you owe on it.
◾You must be able to prove that you are the victim of a true financial hardship, such as a decrease in wages, job loss, or medical condition that has altered your ability to make the same income as when the loan was originated. Divorce, estate situations, etc… also qualify.
There are some huge misconceptions when it comes to a short sale vs. a foreclosure. Here are some of the main reasons why you should call us at 407-412-8488 and see how we can help you.
1.) If you let your home go to foreclosure you could end up with an IRS tax liability and still owe the bank money. HOWEVER, a short sale can help alleviate your liability to the bank. There are also exceptions to this, but in most cases banks are releasing homeowners from the deficiency balance on a short sale.
2.)Banks would rather perform a short sale than a foreclosure. A foreclosure takes a long time and creates a huge expense for the banks; a short sale saves both time and money.
3.) Short sales are in every market, and are not just limited to any particular income class. The downturn affected everyone from all facets of life. A short sale should be looked at as a helpful tool, not a negative stigma. That is why the government offered programs that actually encouraged consumers to participate in short sales. It is not just affecting one community; it is affecting communities and consumers across the nation.
4.) Though the short sale process is time consuming; it is not as difficult as the media would have you believe. The problem is that most short sales are denied because of a misunderstanding of the process. We know how to navigate through the process and can take care of ALL the negotiations for you.
5.) A short sale should not cost you any out of pocket money. As a seller of a property you should never have to pay for any short sale cost upfront to any professional service. Realtors charge a commission that is paid for by the bank. The only potential cost you could incur is if the bank would not release you from a deficiency balance in the short sale.
6.) The farther you get behind on your payments, the harder it is to get a short sale approved. If you think you need to perform a short sale, time is of the essence; the sooner you start the process, the better. Waiting too long can trigger the ramifications of a foreclosure and weaken the ability to do a short sale as a viable option, so call us today at 407-412-8488 and let us help.
7.) If you go through a short sale, the time to buy another house depends on your entire credit picture and can vary from 12-24 months. There are even a few FHA programs that allow for a purchase sooner than that. This is very different to the effect of a foreclosure on your credit picture, which could see you unable to enter the housing market for up to 7 years after losing your home.
With the options available today, no homeowner should ever have to go through foreclosure, and hopefully this information can help you think twice before walking away from your home with the possible long term ramifications a foreclosure can have.
We have helped numerous homeowners avoid the pitfalls of foreclosure and, by taking on all the negotiations with banks and other parties, we have removed the stress and uncertainty that going through a short sale can cause. If we can help you with your home in ANY WAY, or if you just have questions about your property, please call The Wemert Group today at 407-412-8488 and let us take that stress away.