What If I Owe More than My Royal Palm Beach House Is Worth and Still Have to Sell?

What If I Owe More than My Royal Palm Beach House Is Worth and Still Have to Sell?

Owing more than what your home is currently worth is unfortunately a common problem for many homeowners in Royal Palm Beach Florida. Unlike many kinds of financial challenges, however, this is not something you can blame yourself for.

The continuing economic crisis that’s struck the country and is still plaguing the global market as well as the collapse of the real estate market all contribute to your present situation. In the end, however, it’s the homeowners who bear the greatest burden. Thankfully, you can still save yourself from financial ruin by applying for a Royal Palm Beach short sale.

What are short sales?

You may already be familiar with the term but have never gotten around asking what exactly they pertain to. Well, short sales are a special type of real estate transaction that involves creditors and homeowners.

Short sales are exactly about selling your home for less than what you owe.

If your short sale application for your home in Royal Palm Beach is approved, you will be able to sell your home at an amount that is less than what you have borrowed against it.

Let’s say your home is worth $240,000.

Your loan balance, however, amounts to $340,000.

If you are allowed to short sell your house, then the balance of $100,000 ($340,000 - $240,000) will be either forgiven completely or your creditor would provide you with new terms and conditions for its settlement. In case of the latter, you would probably be asked to sign an unsecured promissory note for it.

Short sales can’t push through without your creditor’s approval.

Even if you are the rightful owner of the house, a creditor also has certain rights to your property simply because you used your own home to borrow money. Creditors have the right to reject applications for a Royal Palm Beach short sale if they feel they are being “shortchanged” too much.

Short sales always have to do with mortgaged or encumbered properties.

After all, if it’s not encumbered then you wouldn’t have to apply to anyone for approval. It’s your decision alone if you want to sell your home or not and for whatever price you have in mind.

Short sale packages have to be complete before they are passed to a creditor.

Applying for a Royal Palm Beach short sale is not just a matter of calling or writing to your creditor and asking him to approve your application. Getting a short sale application is a process and one you will have better chances of completing with the help of a good real estate agent.

Call Nestor Gasset or Katerina Gasset at 561-753-0135 today to get your short sales questions answered.

Do I Qualify for a Short Sale in Royal Palm Beach?

Do I Qualify for a Short Sale in Royal Palm Beach?

It’s a good thing that you are asking this question as a lot of homeowners are not even aware of the fact that Royal Palm Beach short sales are not for everyone.

To know whether you qualify or not, you need to do a little research.

How much is your property worth?

Let’s say you owe $500,000 on your home loan. Your property used to be worth $800,000 but is now worth only $500,000. In this case, you are ineligible for a short sale because your property can sell for enough money to settle your debt.

Short sales would only be possible if your loan balance is more than what your property is worth. Even if your home’s value today is less than what it was originally, that’s not the lender’s concern as long as it’s enough to settle your debt.

Can you keep up with your mortgage payments?

Many homeowners assume that the only way they can qualify for a short sale is when they have already gotten behind with their payments. That’s not necessarily true, though. In some cases, creditors allow homeowners to short sell their properties even when they are still able to pay their mortgage on time.

Usually, they do so when a homeowner – and his or her agent – has proven that money problems in the future are a strong possibility. If you’ve lost your job, was confined to the hospital for a serious injury, or had become involved in any kind of emergency that’s prevented you from earning enough money – all these are possible reasons for applying for a short sale.

What does the law have to say?

The laws can change pretty often when it comes to short sales. Unfortunately, these laws are not something frequently broadcasted. As such, you may have to do more than a bit of research to find out which laws apply to your case.

Do you have an agent working with you?

This is probably the most important qualification of all. If you want to qualify for a Royal Palm Beach short sale then it’s imperative that you get a great and experienced agent to represent you. Technical issues regarding short sales can be quite confusing, but you don’t have to worry about them as long as your agent is there to smooth everything out. Indeed, you can easily cut through all the steps above and reach the “finish line” in an instant with the help of a short sale agent. Just make sure that your agent is indeed experienced with short sales and not just with real estate transactions in general.

Contact your Royal Palm Beach short sale agents- Nestor Gasset and Katerina Gasset at 561- 753-0135 today for your Short Sale help. 

How Do I Write My Royal Palm Beach Hardship Letter?

How do I write my Royal Palm Beach hardship letter?

Your Royal Palm Beach hardship letter is one of the most crucial parts of your short sale package. Without this letter, your short sale package won’t be complete and thus unworthy of your lender’s attention. With so many short sale packages landing on the desks of creditors, you can’t really blame them for prioritizing those who have already done their homework and making it as easy as possible for creditors to process short sales.

Write your own Royal Palm Beach hardship letter!

With or without an agent, you need to write a Royal Palm Beach hardship letter on your own. This is very important as your letter is likely to sound more sincere and convincing if you tell your story with your own words.

There’s nothing wrong, however, with asking advice from your agent or any professional editor or writer you know. In fact, you can start getting helpful advice right here and now with the tips below. Hopefully, they will help you short sell your home quickly and for the best price possible.

Don’t ramble.

Rambling is often seen by lenders and bankers as a pure waste of their time. Even if the rest of your Royal Palm Beach short sale package is good, a poorly written hardship letter can still be more than enough reason to have your application junked.

The best way to avoid rambling is to prepare an outline and draft for your letter. Revise them as much as you can before finally composing a letter. Make sure you get your timeline right and keep everything simple and straightforward.

Support your statements with facts and figures.

Sure, saying that you are “stricken with poverty” can tug heartstrings, but you know what? Even if you have the most softhearted creditor, he probably won’t let his emotions rule his head at work. It would be disastrous if he did as he’d end up bankrupting the very company he’s working for by approving all loan and short sale applications.

In most cases, a creditor would look upon your hardship letter as a business proposal of sorts. If an individual who wants to put up a business needs to prove his financial capacity to do so, your hardship letter is usually about proving your financial incapacity to maintain your home or pay for its mortgage.

Even if you are not literally impoverished, it never hurts to emphasize your financial difficulties in your hardship letter. It help sets the wheels in motion and get your application for a Royal Palm Beach short sale approved more quickly.

Call your Royal Palm Beach short sale agents- Nestor Gasset or Katerina Gasset at 561-753-0135 today and get you short sale questions answered!

Should I Just Walk Away from My Royal Palm Beach Home?

Should I just walk away from my Royal Palm Beach home?

Leaving a home that you have grown to love – especially one you have also spent your childhood and most years of your life in – is a heart-wrenching thing to do. But if the threat of foreclosure looms, walking away from your Royal Palm Beach home may be the best solution all around.

Bad Credit

In fact, that’s saying it lightly. Depending on your pre-foreclosure credit score, you could end up getting a below average credit score that will practically cross you from every lender’s book. Worse, foreclosures are not the type of financial transaction that’s easy to wipe out from your record. It will remain there for years to come.

Loan Applications

A pre-foreclosure loan is hard enough to get as it is. Imagine how more difficult it would be if you ended up needing a loan after foreclosure.

You have to understand that foreclosures – no matter the circumstances – are a mark against you. They will not in any way endear you to any private lender or banker. If you do get a loan, rest assured that its interest rates and terms would be a lot more demanding than usual.

Tax Bills

Granted, you won’t pay a penny when your home is subjected to foreclosure proceedings. That’s your lender’s problem. Your problem starts when the next tax period comes along since the amount of debt which has been forgiven is taxable in the eyes of law.

Job Employment

If you do not walk away from your Royal Palm Beach home, then yes there’s a good chance that you will be able to enjoy living in your own home “rent-free”. But all good things come to an end, and your rent-free vacation will end once the court reaches a decision about your case. After that, you would have lost your home for good. With a foreclosure marked against you, it would be more difficult for you to apply successfully for a job.

If, however, you had chosen to walk away – such as by short selling your home – you would have just lost your home a little earlier than expected. On the other hand, you would have avoided having foreclosure marked against you and your job prospects would significantly improve.

When considering the consequences of foreclosure, it’s very important to look at it on the long-term. Don’t allow yourself to dwell too much and too long on what will happen on the short term. If you do, losing your Royal Palm Beach home will probably be the least of your worries.

To find out what your foreclosure options are, contact your Royal Palm Beach short sale agents- Nestor Gasset and Katerina Gasset at 561-753-0135 today.

What Are My Royal Palm Beach Foreclosure Options?

What are my Royal Palm Beach foreclosure options?

If there’s a will, there’s a way, and it’s important to remember that when you are facing the possibility of foreclosure for your home in Royal Palm Beach. Aside from the options you are already aware of having, you should also take the time to do some research as there are other options you may have been unaware of and could present a better solution to your problem.

Option #1: Allow your home in Royal Palm Beach to be foreclosed.

When confronting a problem, it’s always a good thing to have all the facts in the open. It also means acknowledging the worst possible scenario and the consequences that come with it. If you are facing possible foreclosure for your home in Royal Palm Beach, it would mean having your credit score adversely affected – and that kind of record usually takes a number of years to repair.

On the upside, you won’t really need to spend a dime on foreclosure proceedings. You may also be able to enjoy living “rent-free” in your home for months or even a year until the court formally grants your creditor the right to foreclose upon your property.

Option #2: Get a new loan to pay for your mortgage.

This is the best solution for various reasons. Firstly, you get to keep foreclosure agents off your property by paying your mortgage off. Secondly, you get to keep a roof over your head. 

Unfortunately, it’s an option that’s easier said than done. Considering the fact that you’re behind your payments, you will find few creditors willing to extend you a new loan. The only time they’d probably be willing to consider doing so is if you have another – unencumbered – asset to put up as collateral.

Option #3: Apply for a Royal Palm Beach short sale.

Ultimately, this may prove to be the best solution all around.

Read: A Royal Palm Beach Short Sale May Be Your Best Option

A short sale takes place when your home is sold at a price that is lower than the amount of money you have borrowed when mortgaging your home. 

To illustrate, let’s say that your home can be sold today at $500,000.

Unfortunately, your home is mortgaged at $700,000. This, by the way, is made possible by the fact that your home had an inflated value during the time of purchase.

You cannot insist on selling your home for $700,000 because no homeowner in his right mind would pay that price when he can get a similar property for much less. If you sell your home for $500,000, that would still leave you with a $200,000 debt.

With a Royal Palm Beach short sale, however, a creditor may be inclined to accept $500,000 as full payment for your mortgage. The remaining balance will be either waived or you may be given a chance to settle it at a future or indefinite date.

Contact Royal Palm Beach short sale agents- Nestor Gasset and Katerina Gasset at 561- 753-0135 today for your Short Sale help. 

Can I Sell My Home as a Royal Palm Beach Short Sale?

Can I sell my home as a Royal Palm Beach short sale?

A Royal Palm Beach short sale is not in the cards for every homeowner. You may have heard countless stories about short sales being able to save homeowners’ financial reputations from ruin. While such stories may be true, it cannot unfortunately apply to everyone.

There are various factors that have to be considered before you can successfully apply for a Royal Palm Beach short sale.

Mortgage

In most cases – but not always, mind you – homeowners have an easier time getting lender’s approval for short selling their home when they are already behind on their mortgage payments. Being late with their payments basically underscores the fact that they are no longer able to afford maintaining their home. Furthermore, short selling it may save the lender more money – and time – in the long run instead of having the property subject to court proceedings for foreclosure.

Current Market Value

The current market value of your home basically refers to the average price it would sell in today’s market. In most cases, the present market value of your home is far below than what you have borrowed against it. Even if you were to sell the house successfully, the proceeds still won’t be enough to cover your debt.

With short sales, you – or better yet, your agent – need to prove that the current market value of your home is less than what you owe. You also need to emphasize that it’s of no fault of yours that the market value of your property is currently what it is.

Finances

If you are not yet behind your payments, you may nevertheless be struggling very hard to keep up with it. You can use this as another reason for applying for a short sale. It would help if you can prove as well that your financial situation is dire and that it’s only a matter of time before you do fall behind with your payments.

What Happens When Your Application for a Royal Palm Beach Short Sale Is Approved?

Aside from resulting with much rejoicing and champagne corks flying in the air, the following also takes place once your lender gives the OK for short selling your home.

• Your lender and agent come to an agreement about the amount for your home’s short sale price.
• Your agent looks for a buyer.
• Your agent helps you close the deal.
• Proceeds go to the lender and your loan may be listed as partially or completely paid. Either way, the word “foreclosure” won’t appear in your credit report.

Call Nestor Gasset or Katerina Gasset at 561-753-0135 today and get your Royal Palm Beach short sale questions answered!

A Royal Palm Beach Short Sale May Be Your Best Option

A Royal Palm Beach short sale may be your best option.

In some of our previous articles, you have learned why foreclosure is your worst possible option – even if it means being able to live in your own home without “rent”. In today’s article, however, you are going to learn why short sales – on the other hand – are likely to be the best solution all around to your dilemma.

No Loose Ends

First and foremost, short sales for Royal Palm Beach homes have a way of tying all loose ends and keeping everything in their proper place.

Let’s say your home is worth $300,000 today but you also have a $400,000 mortgage taken out on it. If your home is subjected to foreclosure, you won’t have to pay the remaining balance of $100,000 (400,000 – 300,000) of your debt, but you will have to pay taxes for it. As far as the law’s concerned, the amount of forgiven debt is taxable income. So in the end, you will still owe money – this time to the government instead of a private creditor. It’s up to you to figure out how to pay it and immediately at that.

Things work a lot differently with short sales, though. Everything is first and foremost discussed within your short sale package. If the creditor approves your short sale package, then it goes without saying that he also approves the suggested selling or short sale price of your home. The proceeds would be used to pay all resulting taxes and fees because of the sale and what remains of it would be given to your creditor as payment of your debt.

So if you short sell your Royal Palm Beach home once again for $300,000 and you owe $400,000, you will be left with $100,000. In most cases, however, this amount can be settled with an unsecured promissory note and you are not usually expected to pay it immediately.

Employment Prospects

Foreclosure records never look pretty on credit reports, and they can cause employers to turn you down even if you are perfect for the job. As far as most people are concerned, foreclosures are a sign of irresponsibility – regardless of the circumstances – and no employer would want to hire someone irresponsible.

Short sales, however, are not seen in the same light. In many ways, they’re simply considered a strategic counter move to foreclosure and as such most employers would have no problem hiring you even if your home in Royal Palm Beach has been subjected to a short sale.

Need help with your Royal Palm Beach short sale? Call Nestor Gasset and Katerina Gasset at 561-753-0135 today!