Florida Short Sale Foreclosure Solutions
A short sale or short payoff occurs when a lender agrees to accept less than the outstanding loan amount to satisfy the seller’s loan. A short sale allows both the lender and the distressed property owner to avoid foreclosure by selling the property at a loss. Combined with the weak real estate market the following are common situations facing distressed sellers:
- Declining real estate values;
- Unexpected health issues resulting in difficulty making mortgage payments;
- Lending rate increases on adjustable rate loans;
- Over-extended borrower with multiple mortgages;
- Job loss or transfer;
Our goal is to protect our local and out-of-state clients while guiding them through their real estate transactions. We offer affordable rates and a friendly atmosphere where clients are welcome to call or visit the office with questions.
Short sales are more complicated and time consuming than an average real estate sale, making it important to retain an experienced real estate attorney to oversee and negotiate the transaction. A distressed seller initiates the short sale by contacting a real estate attorney to draft a special contract and a Realtor to find a buyer at the current market price, sometimes as much as thirty percent less than the seller may have paid for the property. The seller’s Realtor must find a bona fide purchaser for the property at the current market value before the short sale offer can be submitted to the seller’s lender. Christian N. Folland, Esq., owner of Folland & Associates, LC and South Pointe Title Company is a Florida Bar Certified real estate attorney, which is the highest level of expertise recognized by the Florida Bar. Mr. Folland works with sellers, buyers, and Realtors to negotiate and draft sales contracts which include the conditions of the short sale. Special attention must be paid to all short sale terms or addenda, which are often written in favor of the lender and seller rather than the buyer.
Lenders Prefer Short Sales
Short sales are more beneficial to a lender than a foreclosure. Lenders prefer short sales because they are not in the business of managing and owning property and short sales are less expensive than completing the foreclosure process. Lenders accepting short sales receive a substantial percentage of the outstanding loan amount due without waiting for a time consuming foreclosure, and they are able to avoid foreclosure and maintenance fees. Christian N. Folland, Esq., owner of Folland & Associates, LC and South Pointe Title Company is a Florida Bar Certified real estate attorney experienced in negotiating with lenders to obtain a timely short sale payoff that satisfies both the lender and the seller, often without damaging the seller’s credit rating.
Buyers Benefit from Short Sales
Buyers often save money purchasing a property in a short sale. Christian N. Folland, Esq., owner of Folland & Associates, LC and South Pointe Title Company, represents buyers in short sales and will draft a sales contract to include closing costs and fees in the short sale payoff amount. The experienced paralegals at Folland & Associates, LC and South Pointe Title Company will prepare an initial draft settlement statement satisfying the needs of all the parties, which will be submitted to the lender for approval. Drawing on extensive real estate experience and careful planning Mr. Folland will work to obtain the best possible lender payoff, resulting in a fair price and low costs for the buyer and satisfaction for the lender and seller.
We assist Realtors and mortgage brokers guide their clients through the short sale process, and coordinate the transaction from contract to closing.
To discuss a short sale question please call 786-276-9900 or visit our office today for a consultation.