What is a Short Sale?

Many people are still unsure about what is a short sale. Due to the crash in house prices, most homes in south Florida are now only worth 40- 60% of what they were at the peak, and 25-30% of homeowners who have a mortgage now owe more than their home is worth. Add to this, the problems of adjustable rate mortgages (where payments jump up year after year), the unemployment crisis and numerous other factors that affect people’s incomes, it is impossible for a huge percentage of homeowners to be able to sell their home and pay off the bank. Banks realise this and therefore have to do a short sale in order to reduce their losses.

So, what is a short sale? A short sale is another way of getting rid of a non-performing loan. Instead of foreclosing on a homeowner, taking a property back and trying to sell it as an REO, the lender will allow the home owner to sell the property for less than is owed.

The next question is what happens to the balance of the money owed? The lender can pursue a deficiency, ask the homeowner to sign a promissory note or give the homeowner a deficiency waiver. With a deficiency waiver, the homeowner does not have to pay back anything. This is what your real estate agent should be negotiating for.

Will you receive a 1099 for the amount forgiven? If it is your principal residence, and your short sale closes before the end of 2012, the answer will generally be NO. Read the article on the IRS website.

What is a short sale benefit? The homeowner avoids foreclosure with all the negative consequences that brings and they actually have a sale.

What is another short sale benefit? In most cases, the homeowner walks away owing the bank nothing.

When asking what a short sale is, consider that a short sale also helps the community because it is not left with a vacant house for months or years that gets damaged and overgrown and eventually sold for less by the bank.

To qualify for a short sale, you must be behind in your mortgage payments, provide evidence of financial hardship, and have little or no equity in the property.

Although it is now represents a significant percentage of home sales in south Florida, a short sale is not a simple real estate transaction. Not only are there more parties involved than in a normal sale, but there is a lot of negotiation involved in order to get the short sale approved and also to get a deficiency waiver so you can walk away owing the bank nothing. Thus, it is not enough to ask, What is a short sale?" You also have to find an experienced real estate agent who has been successfully negotiating short sales.

To get more information about short sales, or to contact us, click here.

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Testimonials

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Loretta S Testimonial
Scott P Testimonial
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Chelsie A Testimonial
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Jose E Testimonial
Erica F Testimonial
Carlos M Testimonial
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Craig C Testimonial

To whom it may concern:

When my husband and I came to realization that we could not afford to keep our home, we knew that it would not be easy to find an honest and hard working Realtor to help us avoid foreclosure. With the unstable economy, many agents left the real estate industry to find secure employment and those that stayed in the game were most likely overwhelmed with trying to figure out how to handle a short sale. So on top of losing our home, we needed an agent who was honest, experienced and most importantly, could get the job done!

To Whom It May Concern:

Shirley Wise and the girls at Belrose Properties did a great job for me with the short sale of my house. I was confused and did not know what to do. I was always very stressed and could not afford my house.

Shirley came and explained my options. I know the house was not worth what I paid so I decided to do a short sale. Shirley and her negotiators did not make any false promises to me. They did exactly what they said they would do...

To whom it may concern:

Shirley Wise and her team handled my short sale with the utmost professionalism. She was always willing to speak with me and answer any questions I had. She handled the sale very well and all sides were extremely happy. I have already recommended Shirley and her team to my family, friends, and coworkers.

Sincerely,
Loretta S

The realization of losing my house was devastating. I did not want a foreclosure so my friend/Realtor, Chelsie Antenor, helped me with the short sale. Belrose Properties did it all; from assisting the tenants on moving so the property can get sold to negotiating the short sale and getting me an approval from my mortgage company. Communication was frequent and effective. They held my hand every step of the way and made this a smooth and stress free process.

I can only say good things about Shirley Wise and her staff at Florida Properties and I will continue to refer them to anyone interested in selling their property.

Warm Regards,
Scott P

Knowledgeable, personable and upfront. There is no challenge to big or too small for these professionals, they go the extra mile.
I can honestly say that my experience with Shirley Wise at Belrose Properties is excellent. They know ALL T HE INS AND OUTS OF SHORT SALES. They are forever keeping themselves ahead of the curve. In my opinion, they are short sale "gurus" of South Florida. I have learned a lot from them. They have successfully negotiated one of my properties and are currently working on my others which, unfortunately, have gone "upside down."

I cannot begin to adequately express my deep appreciation and gratitude for all that Shirley Wise and her team did to help me through this grueling house-selling process.

Due to the downturn of the housing market, I found myself in foreclosure. With spikes in my homeowners insurance and property taxes, I knew I could not afford to keep my home any longer. I was devastated to know that the home I purchased for $475,000 significantly decreased in value within 2 years and was now worth $210,000...

To whom it may concern,

I am a very pleased client of Shirley Wise.

I am a retired Businessman, who due to a recent upheaval in the economy, found myself facing the devastating possibility of a foreclosure of my home. As the market values continued to erode, I found myself significantly underwater with my home formerly valued at $1.4 million and currently reduced to $800 thousand. My mortgage balance was for $840 thousand...

To Whom It May Concern:

I am writing this letter to share with everyone that Shirley Wise from Belrose Properties, LLC and her staff our the best in providing outstanding customer service. Their execution for timely short sales, professionalism and organization is truly amazing.

I would surely recommend Shirley Wise and her staff to anyone.

Sincerely,
Jose E
Sr. Loan officer
JPM Chase

Shirley Wise and the professional staff at Belrose Properties continue to set the standard for excellence in the residential real estate industry. They have mastered the art of negotiating short sales for their clients and have kept us really busy throughout the years.

I am fortunate and grateful that they have rendered Creative Title to handle their title insurance and closing needs. I give Shirley and the Belrose Properties team my strongest possible recommendation.

Sincerely,
Erica F
Creative Title Services

To whom it may concern,

I am writing this endorsement for my friend and colleague Shirley Wise as a token of my appreciation and esteem.

Shirley has proven to be a very ethical professional in the field of Real Estate and especially in Short Sales. Although this has been a difficult time for the industry, Shirley has managed to continue to thrive and provide her clients with the excellent short sale services they deserve.

After funding close to $1 million dollars in short sale and arm's length transactions with Shirley Wise, the thing that stands out about her remarkable skill set is her unique dedication to her work & her clients. Shirley provides unparalleled knowledge of the short sale market and her preparation is second to none. Her communication with her clients and the bank is exceptional. The short sale market is a very challenging endeavor for any Realtor. She has managed to streamline the process and educate her clients to the ins & outs of the entire transaction.

Having successfully closed several short sale deals as both a Realtor and investor, I'm familiar with all the nuances in the business. It's truly rare that I meet people with the knowledge and experience that Shirley Wise possesses. I have 100% confidence in her abilities to close short sales quickly, which is why I've been sending all of my referrals to her and will continue to do so.

Craig C
Social Media Edge, Inc

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