Short Sales In St. Cloud FL – Saint Cloud FL Homes For Sale

What Is A Short Sale?

Real Estate Terminology 101: What Is A Short Sale?

A short sale is a process wherein a financially distressed homeowner sells the house for a price lower than what is still owed on the mortgage.

Key facts about a short sale:

  • A short sale must be approved by the lender. They would normally require documentation that will support the need for this course of action.
  • All the money made from the sale will go to the lender. The latter has two choices: forgive the difference owed or get a deficiency judgment. This is a court ruling against a borrower in default on a loan.  
  • In Florida, banks or lenders can get a deficiency judgment but the law sets some limitations if the property is residential. Borrowers can be obliged to sign a promissory note for the deficiency. If the lender forgives the amount, the homeowner may have to pay taxes on the owed balance.
  • Short sales can be tedious. It requires a lot of paperwork, and processing takes time. But unlike a foreclosure, it is not as damaging to the homeowner’s credit rating. It will, however, still be a negative mark on the credit score.
  • As part of the approval request process, the homeowner will need to submit a hardship letter as well as tax returns and payroll stubs. A completed financial statement and a preliminary closing statement will also be required.

Overview Of The Short Sale Approval Process in St. Cloud, FL

  • Once they acknowledge receipt of documents from the borrower, a negotiator will be assigned.
  • A broker will generate a broker price option (BPO) upon order by the lender. This is an “educated opinion” on the value of the home.
  • The file will be sent for review. The bank can request an “arm’s-length” affidavit. This is a document signed by both parties stating that they do not know each other and that there is no pre-existing relationship between the two. The intent behind this agreement is to prevent mortgage fraud.
  • An approval letter will be issued if the home for sale is approved.

Tips for Home Buyers

When looking at homes for sale in Saint Cloud, Osceola, don’t just ask about acres, beds, and baths. Ask your agent about homes for short sale in Saint Cloud. You can also ask about properties that did not qualify for a short sale and fall under a Saint Cloud foreclosure.

There may be a good opportunity here to buy a property below market price. But as a buyer, you need to be flexible and financially prepared if your offer is accepted.

You may have to wait more days than usual. And cash payment will likely be preferred by a distressed seller but as long as you are pre-approved for financing, you should have just as strong a chance. Of course, it helps to have professional representation by an agent who has experience buying or selling short sale or foreclosed homes.

There is strong demand for Florida real estate. Even if you are just looking to rent in Saint Cloud, you will find that it is quite competitive. It is always important to manage your expectations. Many short sale or foreclosed homes are sold fast, whether it’s a single-family home, a condominium unit, or a townhouse. The financial, mental, and emotional preparation for these types of transactions can be a bit more intense because there is a sense of urgency and pressure from the seller’s side.

What Is Mortgage Forbearance? And How Is It Different?

Mortgage forbearance is another option for struggling homeowners. This is a type of agreement wherein the lender allows the borrower aka the homeowner to suspend payments for a set period.

This is a short-term solution to a financial problem. Mortgage forbearance is not for homeowners who see themselves as unable to settle their dues in the near future. Otherwise, it will create bigger issues and more liabilities.

An important aspect of this agreement is that the lender commits to not foreclose the property. On top of the regular mortgage payments, the homeowner may have to pay taxes and interest at the end of the grace period. If the homeowner is concerned about the possibility of foreclosure, they should tell their lender about it. Many homeowners in Saint Cloud are facing foreclosure. But there are options available to you. 

In consideration of the ongoing COVID-19 crisis, the Federal National Mortgage Association (FNMA aka Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) announced special considerations for affected borrowers and homeowners.

Mortgage forbearance was among these provisions. Reduction or suspension of payments for up to 12 months will now be considered. Late fees or penalties have also been suspended. And lenders are required to suspend reports of borrowers’ late payments to credit bureaus if the borrower is in a forbearance plan.

After the grace period, Fannie Mae “mandated” lenders to work with borrowers on a permanent plan to reduce or maintain monthly payments. Freddie Mac offered loan modification options so borrowers can pay the same pre-pandemic rate or benefit from a payment relief.

Are You Having Financial Troubles And Struggling With Paying Your Mortgage? – Saint Cloud Foreclosure Homes

If you are experiencing financial challenges and having a hard time making mortgage payments, Saint Cloud homes for sale could be the solution that you’re looking for.

At The Corcoran Connection, we understand that you may be overwhelmed financially and are now unsure of your next move. If you’re having trouble settling your monthly mortgage payments and possibly facing foreclosure, we can help.

We have a thorough understanding of the home sale process in the Osceola County, Central FL real estate market. From experience, we’ve learned that it is often the best solution for getting your home over the finish line. We understand how important it is for homeowners, which is why we pride ourselves on providing timely, honest, and adaptable service.

As a local short sale specialist, we’ve helped numerous families and individuals navigate the real estate market and avoid possible foreclosure.

There is no better way to determine if you qualify for a short sale than to simply call The Corcoran Connection at 407-953-9118. No question is too simple or even too complex—we’re here to help! Don’t wait until it’s too late. Call us now!

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