Short Sale Properties
Why do a Short Sale in South Florida?
A short sale is a sale transaction in which the seller’s mortgage lender agrees to accept a payoff of less than the balance due on the loan. It is of course easier said than done. Most short sales involve a lengthy process of negotiation and a lot of patience.Why would a lender agree to a short sale?
Lenders are in the business of selling mortgage loans, not taking property back through foreclosure and reselling them. Lender wants to avoid:
• Adding a bad loan and REO to their portfolio
• Paying property taxes, insurance, maintenance, repairs for REO properties
• Risking vandalism to the property, either by the borrower prior to vacating the premise or others.
• Wasting time & money evicting borrowers and reselling their properties
Why do sellers want to short sale?
In general, sellers who are unable to make loan payment as the result of increases in their adjustable interest rate, or other economic reasons, want to sell their homes to avoid foreclosure, or personal bankruptcy. The impact to their credit score is usually less going through a short sale than a foreclosure action. They can potentially purchase a home again in a few years, without a bankruptcy on their Credit Report.
Short Sale Sellers – As you are going through the process of short selling your home, it is import to understand the impact that a short sale to your financial status. A Realtor with track records in negotiating with the lender is critical to the success of the transaction. A qualified Realtor can definitely reduce the stress involved in short sale process. There are tax consequences that you should be aware of. Consult your tax advisor for more info. You are required to provide disclosures to your best knowledge, as if it is a regular sale process.
Buying Short Sale Properties
It has been known that short sale transactions usually take a long time to complete due to lender’s approval process. This timeline has improved significantly in recent months. Once a seller has accepted an offer, the negotiation process with the lender begins. The approval process is now averaging between 30-60 days compared to 90-180 days previously. Buyers often run out of patience and miss out on great purchases.Every transaction is different, and each lender will have its own guideline and timeline. So when you work with a team of Realtors/negotiators with solid understanding of the process, you chance of success is greater. Feel free to contact us for a free consultation; we can help you explore all the options available to you. Our goal is to provide you with information that will help you in your decision making process. We have great track record in negotiating for our clients.
