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Is your Gainesville Short Sale Lender Delegated?

Is your Gainesville Short Sale Lender Delegated? You may be surprised to find out what “delegate” means in short sales.

To come straight to the point, the word “delegate” in short sale literally means what it is, to entrust to another.

You may be making payments directly to Bank of America, Wells Fargo, or Nationstar, but that doesn’t mean that they are your lenders. In this case, they are referred to as “servicers”. This is because, even though these lenders have lent you the money, they may have subsequently sold your loan to an investor which legally transfers their authority over the loan to the new owner—the Investor.

Your lender is now stripped of the power to approve the short sale.

What happens is that these servicers have been assigned by the investors to receive the mortgage payments, which is why you are still making payments directly to them. They are paid to do so.

You may have wondered why this happened without your knowledge. It is because when your note gets sold, they do not need to notify you. It is only when your servicer is changed that you must be notified.

The investors hire the servicers to keep them from being involved with the day to day operations of payments and other servicing details. The investor could be Fannie Mae, Freddie Mac, Pension funds, Insurance companies, and etc. Although majority of the notes are presently owned by Fannie Mae or Freddie Mac. Ask your Gainesville Short Sale Agent to lookup your loan for Freddie Mac or Fannie Mae

By delegating, these investors assign authority to the servicers to approve short sale on their behalf. However, this is grounded by certain parameters that vary for each investor.

A simple example: An investor authorizes the Servicer to approve a Gainesville Short Sale given that the loss they incur is less than 35% of the loan value. The borrower becomes 30 days delinquent on payments, they live in the property and with their debt plus mortgage payment they are 31% of gross income. Should the short sale fit within these parameters, then the Servicer can issue the approval without asking the investor.

When you are requesting a Short Sale request, it is almost always made to the Servicer. And if the Servicer is delegated, they are able to approve the Short Sale without going to the Investor which saves a lot of time. The time saved is significant— as it easily cuts the Short Sale time for approval in HALF.

Other Articles to Read:

What is a Short Sale?

Short Sale Process – What to Expect

Short Sale Top 10 Questions

Do I Have to Pay for the Real Estate Agents Commission?

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents

  

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Gainesville Short Sales – Do I have to pay for the Short Sale Real Estate Agents Commission?

Gainesville Short Sales – Do I have to pay for the Short Sale Real Estate Agents Commission? Question number 8 of the top 10 questions asked about Gainesville Short Sales is…Do I have to pay for the Short Sale Real Estate Agents Commission?

Technically the listing agreement is between the Gainesville seller and Gainesville listing broker.

The short sale bank does not sign the listing agreement because they do not own your property and do not retain title to the home. Florida is a judicial and deed state meaning the bank would have to go to court in order to force you to sign over title to them such as in a foreclosure.

The listing agreement does make the seller responsible for the commission, however, there are short sale addendums that Anson Properties uses that state the seller is experiencing financial a hardship and they will not be responsible for any commissions or fees to the listing brokerage and any commissions will be paid at closing without it being an out of pocket expense by the seller.

The short sale bank may negotiate down the commission in order to approve the short sale and both the listing agent and buyer’s agent sign an addendum agreeing to this up front.

Here is how this process works:

When the offer comes in it should be reasonable and not too far below Gainesville fair market value. Low ball offers will only delay the Gainesville short sale process because they ultimately are not accepted by the seller’s short sale lender and only causes a delay in the short sale itself. The home is also taken off the market for a specified period of time only to come back on again for a more serious buyer. Anson Properties will encourage the seller to only accept and work with a reasonable offer that should be submitted to the short sale bank.

The short sale bank will want to know what the associated fees and costs of the transaction are. This includes Gainesville real estate commissions, attorney’s fees (if they pay them at all), Gainesville taxes, closing costs, seller contribution to buyer’s closing costs (if any), and any HOA fees, etc. They request what is called a HUD1 or closing statement in order to see the breakdown of costs.

Working backwards, the short sale bank will determine the net they require for the Gainesville short sale payoff and will add on the associated costs mentioned above onto the HUD to determine the approved short sale value and approval of offer. Sometimes they will require a reduction in commission or reduction (maybe even exclude) any of the associated fees, a cash contribution by the seller or request the seller to sign a promisory note at closing in order to provide the approval letter.

With the HAFA program the Gainesville Short Sale value is pre-determined for the listing price and the home is advertised with accordingly. On a traditional Gainesville short sale the listing agent does a market analysis using recent sales of like kind properties in order to recommend a list price to the seller.

The price will be slightly more aggressive than a traditional listing in order to get the home under contract fairly quickly. It should not be priced too low because the bank will deny the Gainesville short sale. They do their homework and will hire a third party to provide them a market evaluation such as a BPO (Brokers Price Opinion) or appraisal.

For the seller, this means the Real Estate commission is paid at closing and will not be coming out of their pocket at the closing table.

Other Articles to Read:

Short Sale vs. Foreclosure

How Long is a Short Sale?

What Happens in a Short Sale if I Have More Than 1 Mortgage?

Freddie Mac LP Relief Program Can Save Your Home

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.

Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals.

  

Gainesville Short Sales – How Long is a Short Sale?

Gainesville Short Sales – How Long is a Short Sale? How long is a short sale in Gainesville is a very common question. This really depends on the short sale bank, their processes, seller motivation, proper buyer expectations and understanding how to market property.

Each short sale bank has its own policies and procedures on how to work through and process a short sale. To understand how long is a short sale; we need to first understand the when the traditional short sale process starts. Once the home is listed and receives a contract is when the Gainesville short sale process truly starts. The short sale offer is then submitted to the bank along with any short sale bank addendums, financials and additional required paperwork. The short sale banks are notorious for losing paperwork and requesting documents to be uploaded or faxed. The seller(s) and buyer(s) also need to be very motivated in returning paperwork in a timely fashion. Many short sale banks are now placing deadlines on files for completing requests or they will close the file and the short sale process will have to start all over again. You may already be familiar with this if you have tried completing a loan modification. This will add time to how long is a short sale and always stalls the short sale process.

Another factor affecting how long is a short sale is when the short sale bank switches or hires new personnel or negotiators or dealing with untrained staff that do not know the answers. Each short sale bank has a short sale department with customer service representatives who may be able to view and access the file but rarely have the answers to important questions or any authority to move the file forward. Another delay is when the short sale is being processed by a short sale bank that never assigns any one specific person to the file and it is managed through a centralized HUB, this means the left hand does not know what the right hand is doing.

Once the file comes out of document review it is assigned to a negotiator who will then order what is called a BPO (Brokers Price Opinion). The seller will need to make accommodations for this inspection to take place and this can take up to 2 weeks. If the offer and BPO are favorable to each other terms are provided to the seller and an acceptance or counter of price is provided to the listing agent to correspond with the buyer’s agent. If all are in agreement the file moves to the investor for final review and approval. Once approved the approval letter is provided.

As simple as this process may seem it takes on average 4 – 6 months from offer contract to closing to process a short sale. Many can be short sales can be completed in 60 days but all parties must be motivated and on board with turnaround time. This can be a very emotional process for sellers.

In reducing the time of how long is a short sale, Anson Properties LLC maintains call and email records for accountability purposes and for use of escalating files as necessary if there are roadblocks or mishandling of a file by the short sale bank. Anson Properties LLC has a team that works on your file. Each member of our team handles specific actions in order to expedite your Gainesville short sale from time of listing to the successful closing.

Some tips in reducing the “how long is a short sale” time frame, keep either a physical or digital folder that you place your pay stubs, bank statements and all other financial paperwork in because the short sale bank will request updates and you will be able to turn that around in a timely fashion.

Other Articles to Read:

Gainesville Short Sale Myths

Do I have to pay for the Short Sale Real Estate Agents Commission?

What Happens in a Short Sale if I Have More Than 1 Mortgage?

What Can a Short Sale Agent do for Me?

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals.