Kelly, Home Buyer in Port Charlotte, FL

Short sale vs. bank owned!!

Asked by Kelly, Port Charlotte, FL Thu Oct 30, 2008

Hi I would like to know how long it is taking right now in the Port Charlotte area to close on a short sale home? From what I heard the Bank Owned ones are quicker to close on? Is that true? I am still confused on the whole thing. Not sure if I need to stay away from short sales or not? Are they a really bad thing to get into? Can you get a better deal with a short sale? Because I heard that banks don't want the house to go into foreclosure because it costs them like $30,000 to proceed with it. If that's true! Thanks for all your help. Just started looking at some houses and am wondering which way to go.

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Answers

6
Hi Kelly,

The legnth of time to close on a short sale depends more on the bank than the location of the home. As many have said previously it can be a long and drawn out process and often times sell for over what they are listed at.

We have a list of foreclosures and short sales on our website that you can browse through. Let me know if you find anything that looks interesting!

Roxanne Moore, Realtor
Re/Max Anchor Realty
Port Charlotte
941-626-3926
0 votes Thank Flag Link Sun Nov 2, 2008
Kelly,

There is not much more that I can add to what the other agents who answered your question have already told you, other than to relay my own personal experience. I just closed on a Short Sale for a house that I had listed in Charlotte County and it took a little bit more than 4 months from contract to close.

If you would like assistance with your house search, I would be happy to help you. Just contact me directly. Good luck.
0 votes Thank Flag Link Fri Oct 31, 2008
Kelly,

There is no way to accurately predict the length of time for a "short sale" regardless of the location. Each sale is unique unto itself and brings with it a different set of circumsrances.

The statistics for short sales and the horror stories that come with them are not encouraging. Only 10% of all short sale applications are closed. Also it is an exception when a short sale closes in less than 4 months. Information is slow and most buyers become frustrated with their experience.

The fact of the matter is, there are many deals out there right now.....short sales, foreclosures, and regular sales. YES, regular sales.....Don't overlook these! Think about it....homes owned by people that purchased their home pre-2003, before the rapid appreciation, bought at a much lower price and therefore can afford to sell for much less. When motivation is considered, these home can and do have the potential for being able to compete with foreclosure and short sales.

There are literally hundreds of short sales and foreclosures in this area. It's a matter of starting your search and identifying the best opportunities for your budget. If you would like a list of area short sale and foreclosure properties from North Port, Englewood, Port Charlotte, or Venice areas, we would be happy to hear from you and provide you reliable information with no obligation.

Call or email today.

Good luck,
Susan & Bill Eckler, GRI

Michael Saunders & Company
billeckler@michaelsaunders.com
941-408-5363

2008 Five Star Award for Outstanding Customer Service
0 votes Thank Flag Link Fri Oct 31, 2008
Short sales can take 3 to 6 months jjust to get an answer. You cant always get a deal with short sales as you cant get them to close. The banks do not like short sales, it is a loss loss situation, in a foreclosure the private mortgage insurance company will either pay the bank up to 80% of teh value or will take the home from the bank limiting the banks loss. in a short sale only the bank takes a loss, thetre is no gain, the rule of thumb is teh bank wants to net at least 80% of what the person owes. if it is under that there is no incentive to for a bank to do a short sale. In a REO or home already foreclosed on, the banks will answer quicker, usually same day and you can close in as little as 14 days. go with the bank owned homes is my advise. good luck with your purchase
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri Oct 31, 2008
Kelly,

A Pre-Foreclosure or Short Sale will provide you the best opportunity to get a "deal". The problem is that Short Sales can take a while to close which can be exhausting to a Buyer. With a Bank Owned in most cases the banks are going to want Market Value - 5 to 10%, plus the foreclosure process costs the banks money which they would like to recoup. And last but not least there are title, tax and legal risks that can go along with Bank Owned purchases, not to mention the need of repairs that most Foreclosures or Bank Owned properties include.

Has that has been helpful? My recommendation is to get with a Foreclosure Expert in your area.

Sincerely,

Kristi Ghent, Realtor

Foreclosure & Short Sale Expert
0 votes Thank Flag Link Thu Oct 30, 2008
The length of time to close on a short sale depends on the lender, whether there is a second mortgage involved and if there is mortgage insurance. You can reasonably expect at least 60 days for a response and many times the entire purchasing process can take 3-4 months. With that said, if you have the time, you can get some great deals on short sales. Keep in mind, though, that it will be 60 days to get a yes or a no, so have your Realtor do a market analysis and be realistic with regards to your offer so you do not waste your time. The bank will have a Broker's Price Opinion or an appraisal done, so they will know how much the home is worth before they answer your offer. It can be lower and still approved, but it has to be within a reasonable range.

Bank foreclosures are much faster. The selling price is going to be about the same because the bank is not going to settle for much (if any) less than market value on a short sale, and by the same token, they are not going to be able to sell a foreclosure for more than the market will bear.

The main question you have to ask yourself is when do you want to purchase. If you have the time and patience and you fall in love with a particular home in a certain neighborhood that is a short sale without mortgage insurance, you may want to take the chance. If, however, you find a foreclosure that you like just as much, that process will go much faster and smoother.

Hope this helps. Good luck.
0 votes Thank Flag Link Thu Oct 30, 2008
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