Short Sale Specialist
What is a Short Sale?
In a short sale, the bank allows the homeowner to sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the mortgage.
A short sale benefits the homeowner by not only relieving the stress from a potential foreclosure, but also by preventing additional damage to the homeowner’s credit. In other words, it allows the homeowner to stop the foreclosure and get a fresh start.
What is HAFA?
HAFA, the Home Affordability Foreclosure Alternative, is a Federal Government Short Sale Program. HAFA offers homeowners, their mortgage servicers, and investors incentives for completing a short sale or deed-in-lieu of foreclosure. HAFA enables homeowners to transition to more affordable housing while been released from their mortgage debt. It also provides for relocation assistance of up to $3,000.
ü Provides a foreclosure alternative: a short sale.
ü Standardizes and simplifies process to improve execution.
ü Provides homeowner with $3,000 relocation assistance.
ü Releases homeowner from future liability.
ü No Deficiency Judgments.
ü No Cash Contributions at Closing.
ü No Promissory Notes.
ü Encourages cooperation from subordinate lien holders.
ü Additional Incentives for 2nd Mortgages, up to $6,000 more at closing.
ü Effective April 2010 – December 31, 2012
Who Is Eligible?
ü Must be primary residence or resided there in the past 12 months.
ü Mortgage originated prior to 1/1/09
ü Is delinquent or default is foreseeable.
ü Current unpaid principle balance is under $729,750.
ü Total monthly mortgage payment exceeds 31% of Monthly Gross Income.
The timeline for an approval, counter offer or denial of a short sale contract can take as little as thirty (30) days or, in some cases, several months. The average time is sixty (60) days. Once there is bank approval, a buyer usually is given thirty (30) additional days to close.
In order to submit your short sale contract to your lender, you will need the following documentation:
1. Two (2) years of tax returns;
2. Two (2) months of bank statements;
3. Proof of income for one month (pay stubs or other proof);
4. Signed and dated hardship letter;
5. Signed and dated financial statement;
6. Copy of recent mortgage statement;
7. Authorization letter;
8. Listing agreement;
9. Sales contract;
10. Buyer’s Proof of Funds or Financing Approval Letter;
11. Detailed HUD-1 Closing Statement;
12. Short Sale Addendum to Residential Sale and Purchase Contract.
At Accelerated Realty, Inc. we are experts in helping homeowners facing hardship. Our agents are Certified Distressed Experts (CDPE), a designation now required by many lenders across the country because of the skills, knowledge, and experience needed when helping homeowners in distress.
If you are facing foreclosure we want to help you understand your options. Don’t wait. Time is critical. For additional information or a FREE 1 hour consultation, contact one of our agents. We have convenient locations in Aventura, Fort Lauderdale, Miami Beach, and South Miami.
Click icon below to download Foreclosures vs. Short Sales PDF
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