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What is a Short Sale?

A short sale means the seller's lender is possibly willing to accept a discounted payoff to release an existing mortgage. Just because a property is listed with short sale terms does not mean the lender will accept your offer, even if the seller accepts it.   The process for getting a decision from the bank regarding your offer on a short sale can be in most cases 3-6 months, however it can take up to a year to receive an answer from the bank and you should be prepared for this.

Be aware that the seller will need to be in default, to have stopped making mortgage payments, before a lender will consider a short sale. Also, the seller might have over-encumbered, owe more than the home is worth, so a discounted price might bring the price in line with market value, not below it. It is always important to have a professional title search performed on a short sale property, and to be safe, you may want to pay to have the search done prior to making your offer to know what you are getting into.

Important Short Sale Notice: 

Based on current data approximately 10-15% of short sales that go pending in Palm Coast/Flagler County, Florida ever make it to closing. Please do your homework and work with an experienced REALTOR when purchasing or selling "Short Sale" properties.

The price that is assigned a short sale is determined by the owner or listing agent in most cases.  Please keep in mind that these are not always approved prices by the bank and the price that the bank is willing to accept for these properties may be much higher than the full listing price on the property. Unfortunately in our current market...less ethical agents may place properties on the market that look to good to be true...and they are.  There are currently no guidelines in place by NAR or local MLS associations to hold sellers and agents of short sale properties accountable for the advertising of these properties. This can be very confusing and misleading for buyers and other sellers that need to sell their homes.

Short sales are complicated and many factors are involved.  Not only must the bank agree to the price of the property, but the bank also determines whether the owner of the property will qualify for a short sale. 

 

NOT ALL OWNERS QUALIFY FOR SHORT SALES

The only way to find out what a bank will accept on a short sale is to submit an offer, but you can also ask qualifying questions that will help you determine if you are wasting your time or chasing a carrot that will never materialize. Working with an agent that is experienced with the process of short sales and the games played by some of the owner's and listing agents will save you many headaches and heartaches when purchasing these types of properties.

When purchasing short sales...you must be patient.  It can take up to 6 months to get an answer from the bank on if your offer is accepted.  Keep in mind that you may also lose out on other excellent values and properties while waiting to know if your offer has been accepted.  Short sales are not for the faint of heart or for buyers who may become emotionally attached to a specific property.  If you do not feel that short sales are right for you...bank owned properties are often times a better value and the process is much smoother.

When looking at short sales make sure to have all of your financing or proof of cash funds in order..otherwise you are wasting your time. Short Sale and bank owned properties will not entertain any offers without proof of pre-approved financing or proof of cash funds.

With the current market conditions in several areas of the country, many homeowners and banks are now entering into what are called short sales.  Short sales can be a great way to pick up an incredible bargain or get yourself into much unwanted trouble.  Before you decide to make an offer on a home that is declared as a short sale, make sure you are educated on the subject to avoid painful headaches in the future...

 

Homeowners who act early enough can potentially avoid the foreclosure process.

Be aware of scams to help you escape foreclosure - solution that sound to simple or too good to be true usually are. Additionally if you are selling your home without professional guidance, beware of buyers who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your difficulty. Always seek help of a professional Real estate Broker or an Attorney.

If you would like a free consultation with our company, please call or e-mail us. We helped many people and currently helping many others to get out from this unfortunate situation.

We will get in touch with your bank and we will negotiate the most favorable solution to your problem. We will market your home appropriately and we will try to settle with the bank and negotiate a short sale of your property, which in turn will relieve you from any more liabilities to the bank.

Our Service is NO COST TO YOU! Our fees are paid from the sale proceeds and the bank gets the balance of the proceeds.

 

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