Will I have to make a cash contribution in a Florida short sale?

Most Florida short sales do not cost the seller anything at closing. In some cases, however, the mortgage lender or investor may request a cash contribution at closing or an unsecured promissory note payable after closing as a condition of approving the short sale.

When are lenders more likely to request a short sale contribution?

A lender may be more likely to request a contribution when the property is an investment property, the seller is current on the mortgage, the seller has income exceeding monthly expenses, or the seller has significant non-retirement liquid assets.

What can I do if my lender requests a cash contribution?

The seller may accept the request, decline it with a written explanation of the financial hardship, counter with a smaller amount, or propose a different payment arrangement. The available options depend on the lender, investor guidelines, loan type and seller's financial circumstances.

Can a lender's short sale contribution request be negotiated?

Yes. Cash contribution and promissory note requests are often negotiable. A Florida short sale Realtor may ask the lender to eliminate the contribution, reduce the amount or consider an alternative payment method.

Is a cash contribution better than a promissory note in a short sale?

It depends on the seller's circumstances and the lender's requirements. Investors may prefer an immediate cash contribution, while a promissory note spreads payments beyond closing. In some negotiations, offering a smaller cash payment may reduce the total amount requested compared with a promissory note.

What happens if the lender will not remove the contribution requirement?

The seller must evaluate whether accepting the contribution is preferable to the available alternatives. A requested contribution may still represent only a small portion of the unpaid mortgage debt, but the seller should review the approval terms carefully before agreeing.

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BUYER

Minna Reid with Killebrew and Company Realty was amazing! I did my whole buying process from overseas while on deployment and she was the only reason the process went as well as it did. She is very thorough. communicates very well, and will go above and beyond for you! Best realtor I've ever had! I will be using her again in the future for my next investment property buy

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