Short Sales - Info for Sellers

The simplest definition is when lenders agree to accept less than then the total amount (mortgage) due. A Short Sale is typically executed to prevent a home going into foreclosure. Depending on the individual credit situation, this may be a preferable option.

In today’s market it is important that you align yourself with an agent that is familiar with Short Sales and Foreclosures.  The current market conditions dictate that 40% of all Florida properties being sold are considered “distressed properties.”  It takes a skilled real estate professional to guide you through the long and overwhelming process of a short sale. You need a real estate agent who is very competent in both real estate sales / marketing and is also familiar with all the documentation and uique procedures required by the lenders.

The MOST IMPORTANT factor for a homeowner before entering into a short sale situation is to review all the options available, and preferably seek advice from legal counsel.

“At all costs, homeowners must ensure that they are not exploited or manipulated during this most vulnerable period of homeownership. Regrettably,the burgeoning short sale marketplace is attracting hordes of unscrupulous individuals who are seizing any and all opportunities to prey upon beleaguered and unsuspecting homeowners who are not aware of the range of options available to them when experiencing the growing challenge of “upside-down homeownership.”

There are other options available, make sure to ask you ask questions when thinking about a possible short sale.

Short Sales - Info For Buyers

When buying a short sale you must be willing to wait for the bank to return an answer regarding the potential transaction. Buyers must be represented by a realtor that is willing to stay on top of the bank, and ensure that your best interests are taken care of.

Buyers must have a signed contract along with a proof of funds or a commitment letter from their financial institution.

Buyers need to sign a short sale addendum attached to the contract that states the buyer is aware that it may be 45 days before an answer from the bank will be given.  In some cases multiple offers may be presented at the same time.