The short sale should be discussed with your bank to explore options. Let them explain your options and they may even be able to restructure your monthly payments! They should be willing to work with you to avoid the foreclosure and I’m here to help also at MiamiDreamRealty.com

1.  Call YOUR LENDER!! 80% of those now in default and loosing their homes DID NOT call their lender! Many feel their position is hopeless. Don’t despair and try calling your lender first to look into your options. Call your loan originator or Mortgage Broker who got you the loan. Call your Realtor also. See what they recommend. You might get a local manager to give you someone at the “Top” or near the Top to help you with your loan issues.

2. Go to www.HOPENOW.com which is the government backed advisory program and see if your lender is on the list. Reference, remind them, they are a part of this program and see what options you may have.

3.  Remember, the squeaky wheel gets the grease!! Be a royal pain in the butt and don’t give up!! If you really WANT your home there might be a way for you to stay. New bills are being introduced in Congress and some existing ones are on their way through the halls of congress which could give you relief. If you want to stay then try some stalling tactics. Get a reduced payment plan, lower interest rate, lower “reset” rate, etc.

4. This is the last route before you admit maybe it’s time to move on! But before you do this you’ll need to contact an attorney (bankruptcy or real estate) and CPA for tax ramifications.

If your going through anything related to a short sale then please comment for those readers looking for additional advice and information.

Do you have any short sales? The question arises more frequently each month as the consumer reads a little and knows a lot. What is a short sale? A short sale is when the lender will accept less than the full amount owed (selling short) on a mortgage when the property is sold. The lender may accept the short sale to avoid the time and expense of a foreclosure. It also can be in the best interest of the borrower. Not great for the borrower’s credit but neither is a foreclosure. They will not have to endure the time and stress of a foreclosure and their credit may not be as damaged as it would with a foreclosure. It is quicker, easier and doesn’t open up the borrower to the embarrassment of a foreclosure. The last thing the lender wants is to foreclose so if you’re an owner in financial crisis, contact your lender and ask for the short sale department. Explain your situation and ask for their assistance. Get ready for a lot of requested documents such as W2′s, pay check stubs to verify income, bank statements to verify assets, a hardship letter describing why your in this distressed financial position and asking for their acceptance of a short sale, Fair market value (CMA) of property, estimated proceeds net sheet from the sale (see net shortage to reflect a short sale amount) and finally the listing and purchase agreement (when available). When the lender reviews all of your info, it’s their discretion whether or not to approve the short sale. If they don’t approve the short sale, they will then proceed with the foreclosure. If they do agree to the short sale you will close on the sale of your property and the lender takes their loss.

Am I then off the hook? Not really. The lender may easily try to collect their shortage. As a condition to the short sale, the bank may require a letter stating the buyer must repay the shortage. This lender may also file a collection or judgment for the amount of shortage. You may also be liable with the IRS for income taxes on the loss. Seek your accountant and attorney for specifics.

So do you have any short sale deals in Miami Beach and any other oceanfront communities like Sunny Isles oceanfront? The short sales are in fact more common than in 2006 but in Miami Beach, Sunny Isles real estate and South Beach we find they are few and far between and not that great of a “deal” as many would imagine. Where the Miami Beach and Sunny Isles deals are found is with the bank owned (REOs) and motivated sellers with ample equity. With bank’s on the verge of a new paradigm shift, I do believe they will soon be more open to a major shortage but at this point, the banks are not always letting it go for a “good deal or a great steal”. If you’ve negotiated the best deal you thought possible on a short sale and think your getting the steal, watch out for your valuable time being lost as the weeks go by waiting for an answer. Banks take time to approve them and you may just get a NO when you could have bought other deals that past you by. Contact me for more information of if you think you need to get your home sold quickly through a short sale.

Miami Beach Sunny Isles waterfront short sales and deals found here.

One factor and one factor alone dictate what your home is worth and it’s what a qualified buyer will pay for it. A home without a buyer has no value in the Miami Beach real estate market place. Sure, it has value to you, the seller, your banker, your insurance agent and to your appraiser. But unless they are willing to buy, do not count.

So here is the secret to pricing your Miami Beach FL home or condo to sell. It’s what a reasonable buyer will think your home is worth that will ultimately determine if your home will sell. Now you are probably thinking if I left it up to a buyer, they would pay me as little as possible for my home. True, they sure would. But in the real world, every buyer knows that you the seller, have no obligation to sell at just any price. To purchase your Miami property, the buyer will have to make you an offer you cannot or won’t refuse.

But here lies the selling trap many fall into which is the mistaken idea that we can hold out for an inflated price and eventually the market will come to us. Wrong! Buyers are under no obligation to buy any particular home, and no amount of marketing or signage will motivate buyers to purchase an overpriced Miami Beach FL property. Why? Because your neighbors is priced much less! This uncovers the age old dilemma facing buyers and sellers since the beginning of private property rights…What’s more important time or price? For sellers, it boils down to the need to sell within a set timeframe or to hold out for the best possible price. As for buyers, it’s the need to buy within a set timeframe or to purchase a home for the lowest possible price. A seller who would like to sell for top dollar should be prepared to potentially wait longer for a buyer willing to pay a premium price. On the flipside, a seller who needs to sell quickly, and doesn’t have time to wait should expect to discount their price somewhat because of the limited time they have to expose their home to the market.

Buyers are in the same boat. A buyer who has the luxury of shopping for a home over a long period of time can probably wait to find a Miami Beach real estate bargain, while another buyer who must buy a home in the next few weeks will probably be willing to pay a premium. Again it boils down to price vs. time. So please ask yourself, “What is your highest priority? Selling quickly or selling for a higher price?” Most of my clients answer this question with “I want both!” and I don’t blame them. Because of this, many sellers put the responsibility of getting both top dollar and a fast sale on their hired gun, the Miami Beach real estate agent. The result can be summed up as frustration. Why? Because no matter how much a seller may yell, scream & kick their real estate agent, we don’t do miracles (at least most don’t). This is why successful sellers understand, a real estate agent’s job is to provide great real estate marketing, expert advice and negotiating services. In the end, we don’t own the property and cannot make the final decisions on pricing. The seller does and ultimately the seller’s asking price will determine how slowly or quickly their Miami home or condo will sell. Successful sellers take ownership of their pricing decision by making a clear decision about which is more important to them, selling quickly or for top dollar. You’re invited to leave any thoughts, ideas and opinions by commenting below.