The foreclosure process in Florida is a lawsuit with take about two to three months. It sometimes takes longer ifthe defendant takes some action to delay it. The process starts with a Lis Pendens and ends, if necessary with a Sheriff’s Set Out.

(This information is not to be considered legal advice. Foreclosure laws differ state by state. I am not an attorney and I recommend that you seek legal advice if you have questions about foreclosure. I am a real estate broker and can only give real estate advice. This is simply my understanding of the Florida foreclosure process. Just so you know, this information may be incorrect.)

When you purchased your home you signed a lot of documents at closing. Two of those documents were the mortgage and the note. The mortgage pledges the property as security for the debt which is owed. The note is basically your promise to pay.

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This post contains a link to photos of a man having been swallowed by an Anaconda. There are no photos in this post for the sake of sensitivity.

I’ve been working with a lot of short sale clients and I often picture our current foreclosure problem in the housing market like a pig having been swallowed by an Anaconda.  It is just going to have to work its way through the beast.

I recently came across this advice on what to do if you are attacked by an Anaconda.  This is an excerpt from the U.S. Government Peace Corps Manual for volunteers working in the Amazon jungle - what to do if an anaconda attacks you.

Related to the boa constrictor, the anaconda is the largest snake species in the world. It grows to thirty-five feet in length and weighs three to four hundred pounds.

1. If you are attacked by an anaconda, do not run. The snake is faster than you are.

2. Lie flat on the ground. Put your arms tight against your sides, your legs tight against one another.

3. Tuck your chin in.

4. The snake will begin to nudge and climb over your body.

5. Do not panic.

6. After the snake has examined you, it will begin to swallow you from the feet end - always from the feet end. Permit the snake to swallow your feet and ankles. Do not panic!

7. The snake will now begin to suck your legs into its body. You must lie perfectly still. This will take a long time.

8. When the snake has reached your knees, slowly and with as little movement as possible, reach down, take your knife and very gently slide it into the side of the snake’s mouth between the edge of its mouth and your leg, then suddenly rip upward, severing the snake’s head.

9. Be sure you have your knife.

10. Be sure your knife is sharp.

And now, about foreclosure…

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One important factor in successful short sale negotiations is having your paperwork in order.  From the very beginning I use checklists and systems to make sure we are in a strong negotiation position.

As the file is created I use a “Short Sale Info Sheet” to record necessary information and check off the documents as they are collected from the seller. 

__   Lender #1 Short Sale Package List: ______________________________

__   Lender #2 Short Sale Package List: ______________________________

__  1. Most recent mortgage statement or coupon
__  2. Copy of any letters you have received from your lender regarding delinquency
__  3. Current proof of income (two recent pay stubs from each person on the mortgage)
__  4. Two most recent tax returns (1040 Form, only first two pages)
__  5. Two most recent bank statements (all accounts: checking, savings, etc.)
__  6. Freddie Mac Borrower Financial Information form or one provided by your lender.
__  7. Handwritten Hardship Letter
__  8. Listing Agreement

__  9. Signed Sales Contract

__  10. Estimated HUD -1

Here’s the form: Short Sale Info SheetIf you are fearful of foreclosure, a short sale may be your solution.

Please contact me, Dan Forbes, or call if you have questions about our Bradenton, Florida real estate market at 941-746-0505; toll free 877-646-8326.  Visit my web site BradentonFloridaRealEstate.com  

I am working on a short sale for one of my listing clients.  One of the first steps I take is to send in an Authorization to Release Information Form which allows the lender to speak with me about my customers account.

That process may take up to a week. 

Today I called to verify they have me authorized and requested a copy of their short sale documentation checklist.  They immediately faxed me two forms.

Form One is the documents they will require:

1. Financial Worksheet
2. Current proof of income report (2 recent pay stubs from all mortgagors)
3. A letter explaining the borrowers hardship
4. A copy of the borrowers most recent tax returns (1040 form, first 2 pages)
5. Listing agreement
6. Signed purchase agreement or sales contract
7. Seller net sheet or Hud-1 Statement
8. Buyers Pre-qualification letter from the lender or if cash purchase, proof of funds from the bank.

Form Two is the Financial Worksheet.  You can see both forms in this Adobe PDF attachment.   Wells Fargo Short Sales Package

Now, my job is to find a buyer for the property.  When we have an executed contract all of this info will be sent to the lender and the negotiations will begin.

(Copyright © 2007 By Dan Forbes, All Rights Reserved.)

Please contact me, Dan Forbes, or call if you have questions about or our Bradenton, Florida real estate market at 941-746-0505; toll free 877-646-8326.  Visit my web site BradentonFloridaRealEstate.com  

There is a lot of attention on short sales in our Bradenton - Sarasota market right now. This series of posts is intended to help sellers, buyers, and Realtors understand the short sale process. Everyone involved in a short sale transaction needs to know what to expect. 

Buyers of short sale properties need to understand what they are getting into. Some buyer’s believe that they are going to be able to “steal” a property and make a killing by reselling it.  They have heard the stories that investors tell and think it’s a piece of cake to buy a property fifty cents on the dollar.

While that may be the case in some instances it is not the norm and should not be expected. Remember, the lender wants to sell the property as close to market value as possible.  In fact, most lenders have pretty rigid guidelines as to how far below market value they will sell for.  Beyond that point, they will take the house back in foreclosure. Today’s lender is expecting about 83% of the market value of the property.

For the seller, the best buyer is what I call the “end-user” buyer.  That is, a buyer who is actually going to live in the property.  If you sign a contract with an investor who is looking to offer only 50% of market value, it is unlikely that the sale will be approved.  Plus, you will lose valuable time looking for a new buyer.

So, what do “end-user” buyers need to know?

• Buyer’s need to know that short sales require patience.  It may take 2-4 months to complete the transaction.

• They should be pre-approved before submitting an offer.  The borrower’s lender is going to require proof of funds if it’s a cash deal or a commitment letter if there is financing involved.

• A buyer offering to close quickly with a substantial down payment is more attractive than one seeking 95% financing.

• Buyers may not want to spend money on a home inspection or appraisal until after the short sale is approved.

• Buyers should expect to buy the home in it’s as is condition.  The seller doesn’t have any money to make repairs and the lender is going to require an as-is offer.

• Buyers should only work with Realtor’s who are knowledgeable about the short sale process. Inexperienced agents may hinder the transaction.

(Copyright © 2007 By Dan Forbes, All Rights Reserved. This material is excerpted from Everything You Need to Know About Short Sales, by Dan Forbes)

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Please give me a call if you have questions abour our Bradenton real estate market.  You can reach me, Dan Forbes, at 941-746-0505 or toll free 877-646-8326.  Also visit my web site at BradentonFloridaRealEstate.Com  and my blog at The Real Estate ZOO.