Do you owe more than your Tampa home is worth? After paying off the loan and closing costs, would you need to write a check to sell? With 1/3 of Tampa homeowners owing more than their home is worth, you are not alone.
If you are in this situation and you absolutely need to sell your home, then you might consider a “short sale”. Thousands of Tampa Bay homeowners have successfully completed short sales this year, and Team Bohannon has a high success rate with bank negotiations. However, a short sale is not a “get out of my mortgage for free” card, and there are caveats.
A short sale occurs when a negotiation is entered into with lender to accept less than the full balance of the loan at closing; and the lender usually pays the closing costs, commissions and any liens.
Prior to starting a short sale negotiation with the lender, you (or your representative) must submit a reasonable purchase contract from a qualified buyer, along with a financial worksheet that shows your inability to pay the loan. You may be eligible for a short sale if you meet these 3 requirements:
#1) You have a Financial Hardship
Have you had a hardship that has changed your financial status significantly since you purchased the home? Have you experienced a hardship ( i.e. loss or job, forced relocation, death, divorce, medical condition, income reduction, etc) that has materially changed your income and makes it impossible to make the mortgage payment on your Tampa home? If you do not have a financial hardship, then you are not likely to qualify for a short sale.
#2) You have a Monthly Shortfall
Do you have a current or pending monthly shortfall of income. The lender will want to see a detailed financial worksheet and supporting documentation to verify that your monthly expenses exceed your income. If you have funds left over at the month and you can afford your mortgage, then you are not a short sale candidate.
#3) You lack Other Assets
Do you have significant assets that could be used to pay down the mortgage? If you have other assets available, chances are the lender will not approve the short sale.
For more information on the benefits and consequences of short sales, call Team Bohannon today. Doug Bohannon and Dale Bohannon are Certified Distressed Property Experts (CDPEs) who have special training in issues surrounding short sales and foreclosures.
- by Dale Bohannon with credit to CDPE materials
