What Is A Treasure Island Short Sale and How Does It Benefit the Seller?
Short sales happen when a home is sold for less than the mortgage owed by the homeowner on it. The proceeds of the short sales go to the lender. The lender will accept short sales even at a loss since having the property go into foreclosure will actually be a greater loss for both lender and seller. A Treasure Island short sale is therefore a better alternative to a foreclosure and has many benefits for the seller.
1. Avoiding Foreclosure. A short sale is an alternative to foreclosure. This helps lessen the damage to your credit. Although you must bear in mind that your missed and late payments will still reflect in your credit. Nevertheless, a short sale is still more beneficial to you than a foreclosure.
2. Avoiding Deficiency Judgments. In some states, your lender could require you and legally hold you liable to pay the amount you still owe after a foreclosure.This is called a deficiency judgment. In a short sale, it is possible to negotiate a release with the lender and have them agree not to pursue you for any deficiency as part of the short sale. This could be the biggest benefit to the seller of a Treasure Island short sale.
3. You get to live in your home without having to pay your mortgage. At least for the duration of the short sale process, that is. Short sales usually take a long time since you have to prepare and organize your short sale package, submit it to the lender, wait for an approval, list the home as a short sale, wait for a buyer’s offer, and close the deal. The months it takes for this entire process equates to time you get to live in your home without having to pay any mortgage. This could be the perfect time to build up a financial reserve so you won’t fall into the same financial hardship in the future.
4. You get a sense of closure. Losing your home due to financial hardship can take its toll on you emotionally. One benefit of a Treasure Island short sale is that it gives you a sense of closure to your home. During the months it takes to process the short sale, you will have enough time to adjust to your new financial status and you get a clear idea of when you will have to leave your Treasure Island home.
5. Leaseback Opportunity. A short sale may give you the chance to stay in your home in case you find a buyer who is willing to agree on a leaseback setting. In this deal, the buyer purchases the home at a discount as a short sale and leases it back to the seller at a lower payment. Some leasebacks even have a buy-back option which allows the tenant to buy back the home from the new homeowner.
These are just some of the benefits of a short sale over a foreclosure. If you need help with your Treasure Island short sale, call us to speak with one of our highly skilled Treasure Island short sale agents and we will help you through the entire process of the short sale.
10 Tips to Sell Your Treasure Island Short Sale Fast
A short sale is when a homeowner needs to sell the home for less than the amount owed on the mortgage, with all the proceeds going to the lender. It is an alternative that most homeowners facing foreclosure turn to since it gets them out of debt and has less damage to their credit score compared to a foreclosure.
But the short sale process can be a very frustrating and stressful one for the homeowner, not to mention a long one. It could take months before a lender finally approves a short sale. If the complex and lengthy short sale process falls through, the end result could be a foreclosure.
This can be avoided if you are prepared, organized, and armed with the right knowledge and are working with a short sale agent with experience. Here are some tips to help you sell your Treasure Island short sale fast.
1. Check for references. Don’t just believe any real estate agent or lawyer that claims they have experience in short sales. Do your own research and background check, especially on their years of experience and number of short sales they have closed. Remember that short sales are very different from regular sales and it is important that your agent is knowledgeable and experienced in short sales in your area, since rules and regulations differ in every state.
2. Communication. You should have regular and constant communication with your Treasure Island short sale agent, your local real estate/ foreclosure attorney, and a CPA. Each state will have different laws and regulations about short sales which change constantly. Keeping constant contact with these experts will ensure that you always stay in the loop during the short sales process.
3. Gather and organize all your documents. Short sale files can reach up to 80 pages. Consult with your short sale agent and your lender to determine the required documents you need to provide. Most short sale lenders will require you to submit your recent pay stubs, tax returns, bank statements, monthly mortgage statements, and a list of debts and expenses you have incurred.
4. Be current with your HOA payments. Delinquent fees like Home Owner Association Fees can kill a short sale. Most short sale agents and buyers will not work with short sales where HOA payments are delinquent.
5. Know the market value of your home. Most of the time, banks will lower the price of a home as much as they can to be able to unload it. But make sure you keep the price of your home at a reasonable level. You can do this by knowing the actual price or market value. You can ask the help of a local appraiser to determine your home’s current market value.
6. Set the right price. Once you know the value of your home, set it at a price which is slightly above the market value to make room for negotiations.
7. Expect the price of your home to decrease. As your property stays on the market for a longer period of time, then the price will inevitably go down. But first consult with your short sale agent, attorney, and CPA before lowering the price.
8. Negotiate often. Since the lender would rather have the property sold than have it default, then you have some leverage in negotiating with them
9. Patience is a virtue. A Treasure Island short sale takes longer than a regular sale since there’s the extra paperwork and more parties involved compared to a normal sale so you must learn to be patient.
10. Expect it to not be over yet after closing. There are instances when, after the closing of the short sale, the borrower will later be asked to pay the difference between the short sale and what the home was worth, which is called a deficiency judgment. One way to avoid this is to do the short sale through the HAFA (Home Affordable Foreclosure Alternatives).
With all these, as well as proper preparation and working with an experienced Treasure Island short sale agent, your short sale should work out smoother and faster.
Call our office today to speak to one of our experienced Treasure Island Realtors to help guide you through our short sale.
Can I Do a Treasure Island Short Sale?
A homeowner will choose to sell a home as a short sale if the home’s value is less than what he or she still owes the bank on mortgage. Lenders will generally accept to take a loss on short sales since they incur more losses on foreclosed homes in their portfolios.
The Basics of a Treasure Island Short Sale
In a short sale, you sell your Treasure Island home for less than what you owe the lender. If you have a second mortgage or home equity line of credit, then more than one lien holder can be involved in the short sale and you have to wait for both lenders to agree to take a loss on the sale. Your Treasure Island short sale depends greatly on the bank or lender’s approval and you have to learn to wait patiently for their approval, which could sometimes take months.
Characteristics of a Short Seller
Sellers of short sale homes usually owe a large mortgage or multiple mortgages, because they refinanced or borrowed against their Treasure Island home and got loans at temporarily low interest rates. Sellers are often anxious to get out of volatile loan arrangements, which significantly increased their payments and made it unaffordable. Most sellers of short sales also obtained loans at low or no-down payment schemes, meaning the loan covered almost all, if not the entire sale price of the home. If you have experienced one of these cases, then your loan is most likely underwater and you may qualify for a short sale.
As a short seller, you must first be able to prove your financial hardship as the main reason why you can no longer make your mortgage payments. You may qualify for a short sale for the following reasons which are considered as financial hardship:
loss of employment
salary reduction or reduction of hours
serious illness of the borrower or a family member that adds up to the monthly expenses
death of spouse
relocation for a job
Lenders may accept other reasons if they are beyond your control. The key to proving your financial hardship is providing a detailed hardship letter, supporting documents, and a list of expenses showing that your monthly obligations are greater than your current sources of income.
Generally, lenders require that your total monthly obligations make up about 50% of your gross income in order to prove your financial hardship. You should also have a debt-to-income ratio of above 36%, which is the healthy debt-load. You should also be at least 30 days behind on your mortgage and are not qualified for a loan modification. A loan modification changes some terms in your loan to make your payments more affordable. It also requires a financial hardship and proof that you can afford the new lower payments.
If you feel you are qualified for a short sale or want to know if you are, you can call us and speak to our Treasure Island short sale agents to get their help and advice.
Treasure Island Short Sales | No rhyme or reason
Human nature is to try to apply logic, or at least common sense. However, when you are dealing with a Treasure Island Short Sale, you are sometimes left wondering. Very often, when talking to our Short Sale Sellers in Treasure Island, we hear the response “that doesn’t make any sense to me”. Well, don’t feel bad, you are not the only one.
Honestly, even after all those years we have been working with Treasure Island Short Sales, nothing surprises us anymore for example, that the Short Sale Lender takes in some cases over a year, to approve or counter an offer. Or why Title Companies are “estimating” outstanding maintenance fees, rather than working with real numbers that are verified with the Association. Most Association are more than happy to comply, in order to speed the sale up. Or why, after a year of negotiating and a few days prior to closing, “suddenly” other leans such as IRS leans or contractor leans “appear”. How do you explain to a Short Sale buyer that he can’t apply for the Association approval, because the Short Sale Seller won’t produce the condo docs.
There is no rhyme or reason, why some Short Sale Sellers wont’ sign “low ball offers” and why others do. Why some Short Sale Lender reject a $200,000 offer and months later approve an $160,000 offer. Why the Short Sales Banks need another 4 month to approve a price, they have countered the Buyers offer with. Why, if they get what they want in order to approve, does it still take months and months. Does it make sense, that a submitted offer was approved but the buyer walked away. The back up offer, which was higher than the original offer is still not approved 2 months later, even though the Bank will receive more money.
There is a lot of things in a Treasure Island Short Sale, that can go wrong. All of them can be overcome with the right Treasure Island Short Sale Realtor and the right Short Sale Negotiator on your side. Before buying or selling a Treasure Island Short Sale, give us a call. You can reach us at 727-410-7777 or 727-399-9990. Treasure Island Short Sales | No rhyme or reason
Treasure Island Short Sales | Short Sale doesn’t mean “half off”
When buying a Treasure Island Short Sale, you do get a good deal in most cases. Our statistics of the asking price to the actual sales price ratio are showing, there are some good Treasure Island Short Sale deals to be had. Some Treasure Island Short Sale buyers are getting frustrated and wonder, why with all those good deals out there, they weren’t able to get one. They keep approaching different Treasure Island Short Sale Realtors, because it’s the Agent, who can’t get it done.
Here is a perfect example of a recent encounter with a potential Treasure Island Short Sale Buyers. After looking at a few condos, they made a decision, to move forward on one particular condo. The Treasure Island condo was listed with an asking price of $250,000. Within the last 90 days it received several price reductions and was listed at $220,000 by the time the Treasure Island Short Sale Buyer looked at it.
After explaining the strategy behind the asking price, the price reductions, the current market value and how the Short Sale process in general works, the Treasure Island Short Sale Buyer was ready to sign the dotted line. While discussing market value, we always explain, that ANY Short Sale Lender will send out an Appraiser, to determine the current market value, in order to make a decision before approving the Treasure Island Short Sale. The comparables within the last 6 months were presented and again with the explanation that those are the comparables the Appraiser will look to make a recommendation to the Short Sale Bank. In our case, the comparables are $225,000.
The Treasure Island Short Sale Buyers response to that explanation was “Calculate some discount for being a cash buyer, we’ll need to replace the carpet, the paint is not to our liking, the washer and dryer do not convey. Let’s offer $100,000. After all it is a Short Sale, and the Bank should be happy to get it off their books”.
Unfortunately, Treasure Island Short Sales don’t work that way. Needless to say, that this Treasure Island Short Sale offer rejected the same day they accepted an offer of $215,000. Which means, that a “discount” of $10,000 would have taken care of a washer, dryer, paint carpet and then some.
There is a fine line between making a realistic offer and borderline ridiculous. In a Treasure Island Short Sale, you might be able to get Treasure Island home or condo 5, 10, 15 or in some cases even 20% below current market value depending on the overall condition of the property. Yes, most Short Sale Banks are willing to negotiate and are listening to the reasons of the Short Sale Realtors and Short Sale Negotiators who know the condition of the property and the current market conditions.
Call us any time at 727-410-7777 or 727-399-9990 when buying or selling a Treasure Island Short Sale
Treasure Island Short Sales | Approved Short Sale, too good to be true
Just before Christmas, we were approached by a Treasure Island Short Sale Seller to list his home as an “approved Short Sale”. Wow, that is a first. That sounds to good to be true.
Here is what he told us. He had his Treasure Island waterfront single family home listed for sale for an entire year with an asking price of $850,000. In that entire year he didn’t receive any offers and barely any showings. Frustrated with the situation he switched Realtors. The second Realtor listed this Treasure Island waterfront home with an asking price of $650,000. Another year passes, no offer.
Now in financial hard ship, it became obvious, that he had to list the home as a Treasure Island Short Sale. So he hired yet another Realtor to do the Short Sale. That particular Agent was able to obtain an offer on the home in the amount of $375,000, which was submitted to the Bank.
Unfortunately, we are not getting the specifics of what happened, but Bank of America closed the file. That was when the Treasure Island Short Sale Seller approached us and asked us to list his home as a Short Sale and now, yet another year later, the bank has approved the Short Sale.
Wow, approved Treasure Island waterfront short sale, that’s going to be fun! We did the comparables and showed the Treasure Island Short Sale Seller, we are looking at a current market value of $380,000. Take a guess on to which amount Bank of America approved the Short Sale? $600,000!!!!!!!! After 2 years into the Short Sale process, with debt accumulating, taxes not being paid etc., in this kind of market? $600,000!!! Really? What are they thinking?
Needless to say, we reached out to the Short Sale Lender and explained long and detailed about our market, the current market value, the condition the home is in and how it compares with the recent sales within Treasure Island, Short Sale, Bank owned or regular sales included. We didn’t let go, wrote again and again. Explained in different ways over and over the fact, that they are off by $220,000!
Finally after 6 weeks of not letting go, calling and e-mailing them over and over again, they finally answered! Yeah!! We don’t think that you will believe us when we tell you what the bank agreed upon to lower the price to. We didn’t believe it either! $582,000!!!!!! They lowered the price by $8,000. WOW. Now we are only $118,000 over the current market value.
$8,000 reduction every 6 weeks means, in the “speed” Bank of America is working, it will only be 87 more weeks to have overcome the “difference” in the market value and our asking price. We’ll have to add a few more weeks just for the fact, that there will be more taxes owed, more interest accrued etc, not taken into consideration that the property perhaps deteriorates more in that time and market value may decline more.
We will not give up, if we have to write hundreds of e-mails or write it in different languages, we won’t throw in the towel and get this Treasure Island Short Sale Seller out of this situation. Treasure Island Short Sales | Approved Short Sale, too good to be true
Treasure Island Short Sales | I can’t pay my mortgage any longer
Times are tuff, everybody is affected in this economy and this housing market. You are either upside down on your Treasure Island home or condo and it makes no sense to wait years and years to wait, until the market might come back. You lost your job, your spouse has become ill, you have suffered a loss, your job got transferred, you are in financial distress and have reached your limited.
In a distressed state of mind to make any decision is very difficult, let alone about the most likely biggest investment you have made so far. Knowing, you are not alone and you are not the only one facing this in these tuff times, is no comfort. How do I start? What will the neighbors think? How will this affect me? Will I ever be able to buy another home?
We as Treasure Island Short Sale Agents, have a lot of compassion for all of our Short Sale Sellers. Each and every circumstance is different and each and every hardship touches us different way. Our main goal and focus is to assist you from the first step all the way to closing. It is important to realize, that the most important thing right now is not what the neighbors think, it is YOU and how you will be able to move on from this sooner rather than later.
Each and every one of our Treasure Island Short Sales Sellers, who call us for the first time, are relieved after the first initial contact. Now, they have a plan, a goal, something to work towards in order to get this chapter of their life behind them.
One of the first steps you should take, when you are facing a Short Sale situation is, get in touch with somebody who actually will be able to help. Getting advice from friends and family is helpful, but are they really experts? First you should reach out to your financial advisors and perhaps seek legal counsel. Your second call definitely should be to your Lender and see what options are available to you, such as loan modification. Talk to them, their answer might surprise you. In most of our Treasure Island Short Sale situations, the lenders actually are recommending a Short Sale.
At this point, reach out to an experienced Treasure Island Short Sale Agent, who will be helping you to get the Short Sale process started and will be on your side along the way. Treasure Island Short Sales | I can’t pay my mortgage any longer
Treasure Island Short Sales | Short Sale Lenders never seize to amaze
Never say “never” and don’t think you have seen it all. There are so many horror stories out there and the sad part is, they are not fiction. We have been working Treasure Island Short Sales for year and we have seen our fair share of strange and unexplainable dealings with all sorts of Short Sale Lenders.
Treasure Island Short Sales with 3 different mortgages that are going through from the day of the offer all the way to closing within a few months. Short Sale Lenders forgiving balances of more than $250,000 and others holding the Treasure Island Short Sale lender liable for $20,000. From having to submit the same Short Sale file several different times, because the Lender claims, they have never received it to having a Short Sale Negotiator assigned to your file within a week of having submitted the paperwork.
We had worked on a Short Sale for 9 months, until the buyer finally was fed up and walked away. We were able to secure a even higher back up offer while the first Short Sale Buyer was still in place. We haven’t even been able to submit the cancellation to the Short Sale Lender when we finally received the approval. Now the Short Sale Lender will get more money and all the numbers were approved on the lesser amount! That is great news, isn’t it? No, not for the Lender, since they now have to go through the approval process again! So far it has been over a months for them to approve more money! Unbelievable. Treasure Island Short Sales | Short Sale Lenders never seize to amaze
Why is it possible to close on an investment property with all the remaining debt being forgiven, when a homesteaded Treasure Island home owner with hardship won’t be able to get his debt forgiven? We have no reasonable explanations for the Short Sale Lenders actions. All we can say is, when you are in a Short Sale situation, we have to try. This is not about to predict which Short Sale Bank will do what next, it is about getting you out of the situation you are in and having you being able to move on.
You need an experienced Treasure Island Short Sale Realtor and Short Sale Negotiator on your side to overcome the different Lenders hurdles. In the end, even the most difficult ones, the unpredictable ones and the ones that leave you speechless, nearly all of them go to closing after all with a happy Treasure Island Short Sale Seller and Treasure Island Short Sale Buyer.
When faced with a Short Sale situation, choosing the right Treasure Island Short Sale Realtor is the first step. Anne Hensel and Manuela Baginski understand, know how and have the right partners to work side by side with to assist you in the Short Sale process from start to finish. They understand how stressful times are right now in Treasure Island and the know how difficult it can be for you and your family.
Anne came about 19 years ago from Cologne, Germany to Treasure Island and worked in Real Estate ever since then. In 2004 she opened up her own brokerage South Beaches Real Estate Professionals. With only a handful of selected agents, she has accomplished to be one of the leading brokerage firms in Pinellas County and has the proven track record to be amongst the top 40 Real Estate Firms in our County. Considering the amount of agents and the sales volume South Beaches Real Estate Professionals is producing, they are outperforming most of the well known brokerage in Pinellas County.
Manuela came to Florida in 1998 from Berlin, Germany and joined South Beaches early 2005 while still working full time at the State Attorney Office. Soon after joining South Beaches, Manuela became a full time Realtor. After working together for a while, they decided to join forces and they have been working as a team successfully for years now. A few year ago after the real estate market crash they adjusted to the needs of their sellers and started working with Short Sales in Treasure Island and long the beaches. They are one of the most dedicated and committed Treasure Island FL short sale agents.
The way the office is run, the efficiency, the close relations to each and every buyer and seller, the hands on approach to each and every deal, the skilled negotiations to always get the best deals for their buyers and sellers, the level of knowledge and expertise, and the love for the profession are a direct reflection of Anne and her leadership.
Another focus point of South Beaches Real Estate Professionals is continuing education. Anne is leading by example and here are a few of her designations she earned over the years: see below
Anne and Manuela couldn’t be any more different from each other. Anne loves cats, Manuela loves dogs, one is extrovert, the other more quiet, one is single, the other one is married for almost 14 years, one always orders meat in a restaurant the other always chooses veggies. You get the picture.
What makes it work for them and their customers is the passion and love for the profession. Each and every buyer or seller get their undivided attention, each and every transaction is handled individually as it should be, each and every day that bring new challenges are overcome due to teamwork, knowledge, creativity, efficiency, commitment, resourcefulness, positivity and the right attitude.
When you’re looking for Treasure Island Florida Short Sale Agents with expert knowledge, experience, professionalism, honor, integrity and personal service – Anne and Manny are here to help and guide you through the Treasure Island Short Sale process.
You can Reach Anne and Manny at
Anne phone 727 410 7777
Manny phone 727 399 9990
Office fax 727 399 8958
C-CRE Consumer-Certified Real Estate Consultant
The C-CREC designation is consumer-focused; the professional can analyze the consumer’s needs and deliver timely and cost-effective results-based solutions. “Consumer centered –Results focused”
ABR The Accredited Buyer Representative
This Designation is the benchmark of excellence in buyer representation. This coveted designation is awarded to real estate practitioners who meet the specified educational and practical experience criteria.
Real estate agents who have the e-PRO® Certification are Internet Professionals who have completed extensive training using the Web. It means the real estate professional is prepared to employ the latest techniques and services for your benefit, just like you’ve grown to expect from a professional.
TRC Transnational Referral Certification
It demonstrates to clients and other real estate professionals that the agent is well versed in the procedures of the Transnational Referral system and has pledged to follow a code of conduct in business dealings,
RECS Real Estate Cyber Specialist
The RECS designation lets clients and colleagues know of your proficiency in serving the public with recognized skills for utilizing Cyber Space marketing programs and for effectively adopting special technology and networking systems.
AHS Accredited Home Staging Specialist
Trained and certified in staging a home for a sale showcases the benefits of the house in the best possible light
CSR The Certified Seller Representative
This designation has become the benchmark of excellence in seller representation and is only awarded to Realtor that meets the specified educational and practical experience criteria, similar to the Accredited Buyer Representative.
CSP Certified Short Sale Professional
This is a new designation created to help buyers and sellers to understand and successfully close Short sales, Foreclosures and bank owned real estate properties.
For many homeowners, HAFA program represents a viable alternative to foreclosure. For most people, foreclosure is a devastating experience. you may be facing foreclosure for the first time and feel all alone but you should know that you are not alone in your circumstances.
You are not the first one in Treasure Island to face the specter of losing your home to foreclosure. many homeowners in treasure Island Florida are searching right now for answers–for any alternative to foreclosure and the long-term financial damage it causes. As Treasure Island short sale agents we want you to know that you may yet have plenty of opportunity to avail yourself of other options to foreclosure.
If you have down for a long modification and you’re either in the short sale process or a deed in lieu on your home, a recent government program known as HAFA, Home Affordable Foreclosure Alternatives, which to US Treasury Department introduced in 2009. This program is an option for homeowners who otherwise are unable to keep her home through the existing HAMP program. (Home Affordable Modification Program)
HAFA began on April 5, 2010 but is scheduled to end on December 31, 2012. In Treasure Island as anywhere, the program is designed to complement the home affordable modification program. Homeowners who are unable to keep their home even under the HAMP program have an alternative solution through HAFA. Homeowners who have provided financial and hardship information for a HAMP application can transfer this information to the HAFA program. HAFA provides for pre-approved short sale terms prior to listing and provides release from liability on the first mortgage.
Qualified applicants benefit from incentives including a relocation assistance package. Compensation for administrative and processing costs are provided to servicers handling the short sale and even funds to offset losses to investors and subordinate lien holders.
The HAFA program is somewhat localized in its procedures because his guidelines are general and may very far each financial institution. Guidelines for HAFA have changed twice and are subject to further change. When you choose a licensed real estate agent in Treasure Island, you’ll want to be certain that your agent is trained and well experienced in local Treasure Island short sale transactions. It takes an experienced and competent agent to successfully negotiate the short sale process. The experienced Treasure Island short sale Realtor will be prepared to successfully deal with the red tape and timelines common to short sales.
Be sure to contact us with any questions about the HAFA program and any other foreclosure alternatives and options.
We are Treasure Island short sale agents and we stand ready with a wealth of experience and knowledge in successful short sales to help you.