A SHORT SALE…. sometimes referred to as a “Short Pay” or “Pay Off”, is a transaction whereby the sale of a property has been approved by the lender for an amount which is less than what is owed to the lender. Often the bank will accept the proceeds as full settlement of the debt.
Short Sale Tips:
- Don’t procrastinate. If you are unable to pay your mortgage – contact your lender immediately and make them aware of your situation.
- Prioritize. After determining how you will proceed, prioritize your debts from smallest to largest.
- Know your finances. Make sure you know what is coming in and out each month and budget accordingly. You must include all income sources, including child support, alimony, pension payments, etc.
- Know your rights and options. If you have questions about the process or your options, feel free to contact one of our Short Sale specialists for assistance or guidance.
- Do not lose your cool! You are NOT alone in this situation and you are certainly not without options. Do not allow yourself to become overwhelmed or ignore the situation… we can help you, we’re here to help.
- Develop a plan. Whether you choose to sell your home or make an arrangement with your bank to keep your home and modify your mortgage into more affordable payments, you should create a plan that extends during this process and well beyond.
- Do your research. Make sure that you know everything possible regarding your options, how to proceed with short selling your home, the foreclosure process in Florida and your lenders requirements.
- Be prepared. Gather all of your financial information. Create a list of your income and expenses, gather most recent bank statements, pay stubs, tax returns, mortgage statements, and closing documents from when you purchased your home. Make a list of reasons why you cannot afford your mortgage and include all personal hardships, i.e., divorce, loss of job, death in family, major illness, etc. This will assist you in working with your bank and have these itmes ready before you or your Short Sale specialist contacts your bank.
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