Sarasota Real Estate Market News

Short Sale Information

What is a Short Sale:

 A short sale is a situation in which the seller owes more money on a property than a sale will produce, and is unable or unwilling to bring money to the closing to cover the deficiency.

In a short sale, the lender has not yet foreclosed on the property, which provides a window of opportunity for the owner to sell the property and at least partially satisfy the amount owed to the lender(s). 


Do you know…

 How you can compel your lender to consider a short sale – even if they refused to consider your request in the past?

 How you can retain control of the short sale process in the event the lender has unreasonable demands?

Your REALTOR does not need to know the details of your personal financial situation to complete a Short Sale?

For the answers to these and other questions read on.

Why Short Sales Are Preferable to Foreclosure

 Short sales are considered preferable to foreclosures because short sales for a variety of reasons:

In a typical Short Sale Transaction:

  • Short Sale results in a lower deficiency judgment and the difference is often converted to unsecured debt – much like credit card debt.
  • Short Sales are often shown as “Paid” on your credit report.  As little as 50 points off your score and can often come off of your credit report in as early as 18 months.
  • Foreclosure can be delayed for up to 1 year while the property is on the market as a short sale.  You may be able to remain in your home longer during the Short Sale process.
  • Taxpayers can exclude debt forgiven on their principal residence
  • Less embarrassing and less stressful.  You have more control over the process.
  • Less damaging to neighboring property values.
  • May be able to secure a new home mortgage in as little as 18 months
  • There are no up-front fees or costs
  • You may be eligible for up to $3000 for re-location assistance

 In a typical Foreclosure:

  • You will be responsible for the full amount of the mortgage(s) plus all court costs and expensive attorney fees. 
  • Foreclosure is very damaging to your credit – 200 points off credit report.  The deficiency judgment is for the full amount of the mortgage(s) plus fees and is shown as a ‘Foreclosure’ on your credit report and takes up to 7 years to come off.
  • If your job requires a security clearance (Federal, Police, Fire, Military) you can lose or be unable to get a security clearance with a foreclosure on your record.
  • The foreclosure process is very stressful and embarrassing .
  • May not be able to secure a new home mortgage for up to 7 years
  • Very damaging to neighborhood property values

 I feel most lenders are beginning to realize the reality of today’s real estate market and are beginning to embrace the short sale:

  •  The market is not going to rebound anytime soon.
  •  In light of recent events, foreclosures are going to become more problematic and more expensive to pursue.
  •  Although regulators (the FDIC) have been lenient recently, they will resume pressure on banks to remove REO assets (bank owned property) from their books.  If this were to happen at a time when a bank has a lot of inventory on their balance sheet, this could have a disastrous effect on their capital  structure, possibly causing them to fail.
  • The short sale process provides a smoother, more market-driven solution to liquidating problem loans.

Each situation is different and you want to make sure you work with someone who understands the market and the process.

My name is George Miller, a Short Sale and Foreclosure (SFR) certified REALTOR with Coldwell Banker.  I specialize in helping people understand their options when facing difficult circumstances brought about by today’s real estate market.  As a former Licensed Florida Property Appraiser and Bank Examiner with the Federal Deposit Insurance Corp (FDIC), I understand the process and know how banks work.  I can evaluate your situation and offer possible solutions.  There is no obligation or upfront fees or costs to you.   I also work with a law firm that specializes in Short Sales and handles the details of your financial situation. 

As a result your personal financial information is kept completely confidential!

See below for a government brochure that outlines details on the Federal Governments Homes Affordable Foreclosure Alternative Program (HAFA).  Also a program provided by Sunbelt Title that streamlines the short sale process with examples of what type of information is provided by the seller in a short sale transaction.  Please note:  Within this document it refers to $600 being paid by the ‘seller’ .  This is confusing as since there are no proceeds from a short sale to the seller – the lender pays the $600 fee, not the homeowner.    


If you have questions regarding your situation, please call me at 941-374-1000 or email me at for more information.

IMPORTANT NOTICE: Coldwell Banker Residential Real Estate and its sales associates are not associated with the government, and our services are not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.

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