I agree with most of the previous answer except that my experience with short sales and REO's (bank owned properties is somewhat different). My team of short sale specialists (three Realtors at Century 21 Real Estate Champions) have successfully closed many transactions at far less than the asking price. The length of time and flexibility of the banks in assisting with closing costs varies with each lender and each situation. Many lenders expect to net 80 to 85 percent of the appraised value. Some banks though will accept 65 percent of the appraised (market value) or less. We have negotiated with lenders and closed short sale transactions in 45 days or less. However, others (such as Countrywide) are difficult and lengthy negotiations. As far as liens against the property, we work with an experienced Title Company who researches the history of title and advises of any outstanding liens well before closing so there are no surprises. It is important to work with Real Estate Professionals who have a track record and experience in dealing with short sales.
My experience with REO's (bank owned properties) is that many times they are priced well below market value in order to attract multiple bids and many times the successful bidder is a cash buyer who bids higher than the asking price.
If you are interested in property in Pinellas County, I would be pleased to assist you in your search. Call me any time at (727) 541-3743.

Darla Schroeder, Realtor, GRI, e-PRO
Century 21 Real Estate Champions
4350 Duhme Rd
Madeira Beach, FL 33708
Toll free: (800) 866-6032
darla.schroeder@century21.com

Catier:

Short Sale - Is a situation where you are buying from the person who owns the house but they are not making any money of the sale because they owe to the bank more than the asking price. The asking price will need to be approved by the bank holding the mortgage. Will likely not sell for any less than advertised, often the bank wants more than advertised. Also it takes a long time to get an answer and even longer to close (4 to 6 months in most cases)

Far/Bar - Is a standard form contract in Florida accepted by both the Lawyers and Realtors of the State.

Far/Bar AS-IS - is the standard form contract used for Foreclosure properties and for homes where the seller will not make any repairs to the property.

"In the first quote, does it mean that I can't offer a lower price, am I responsible for seller's closing fees and paying his liens?" This is correct on most cases.

"In the case of the liens, how can I know what EXACTLY is owed? To see if it's worth it for me. I don't want to be sitting at the closing and be hit with a surprise. " Buy a foreclosed property and all liens must be paid/satisfied by the seller prior to closing, that way there will be no surprises.

I have lived in the Disney/Davenport area for 19 years. If you need assistance finding the right property to purchase, or simply would like a list of available foreclosures in that area, please drop me a note.

Tony.Vega@ColdwellBanker.com
407-791-9086