Robh, Home Buyer in Downtown Miami, Miami,...

What is a short sale? Seems to be alot of under 200k (2 br condo) listings in Brickell bay area. Why?

Asked by Robh, Downtown Miami, Miami, FL Thu Jun 4, 2009

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Hi Robh,

We spoke during the week. I have the information you requested but did not get your e-mail. Please send me an e-mail with your info so I can reply. Thanks

Nayla Benitez
EWM Realtors
0 votes Thank Flag Link Sat Jun 6, 2009
During the "boom", builders were building an abundance of condos and also doing condo conversions. Miami is one of the areas where they built too many. Now the "flippers" who paid more then double for then what the condo is worth today are trying to sell short. That is why you are seeing alot of short sales in condos in Miami.

You may want to look for bank owned condos that come on the market. They will be priced well and the banks are eager to get them off the market. You will get a much faster answer and be able to close in a more timelyl fashion as short sales can take 60-90 days just to get an answer.

Geoff Rossman
RE/MAX Tropical Sands
(941) 544-3232
0 votes Thank Flag Link Thu Jun 4, 2009
Hi Robh,

A short sale happens when the owner of the property owes more on it the property than what it is worth in today's market. The owner then tries to sell the property at a lower price and have the bank accept a loss for the difference. The bank is the one that decides if he accepts or not the lower price. This is the short version of the defenition.

There are many short-sales specially in Brickell/Downtown because many of the sales that took place back in 2005-2007 were units that sold for top dollar- for the most part overpriced. Many individuals were able to get loans without being able to afford them and now that prices have dropped significantly lots of people are walking out of their units and the only way to do this without damaging your credit entirely is trying to sell the property via a short-sale.

Hope this helps. If you need any help looking for a condo feel free to give me a call I speciazlie in Brickell and Downtown.

Nayla Benitez
EWM Realtors
0 votes Thank Flag Link Thu Jun 4, 2009
Hi again,
A short sale is the early stages of a foreclosure, the person cannot meet the mortgage obligation and has stopped paying the mortgage. The most common reason for this is the condo is not worth what they owe on the mortgage. So you are actually making an offer to their mortgage holder for a price less than what they owe.

If you are looking at a building that is not financlable, as I said before, you cannot get a loan on it and it would be a cash sale only. It dpends on the building, and it does change as the sales pick up. We are hearing of many buildings getting FHA approval lately.

A bank owned property is when the person loses the property and now you are offering directly to the bannk, and thye have set the price at what they want. Short sales can take months, bank owned are pretty much normal, you will get an answer in about 48 hours.

Hope that helps,

Beth Jenkins
South Florida Brokers
786-374-4778 (direct)
Web Reference:
0 votes Thank Flag Link Thu Jun 4, 2009
SImply put, a short sale is one where the owner of the property owes more than the mortgage balance. For example, if you own $300,000 on a property, but the home is worth only $200,000, the note-holder would have to agree to allow you to sell the property "short" of the loan balance. In addition, the seller needs to be in some circumstance where they are in financial difficulty which would make it hard for them to pay off the loan. There is a great deal of fraud surrounding short sales, so you should only deal with someone who is familiar with the process. My website (link below) has information on the short sale process that you might find interesting
Web Reference:
0 votes Thank Flag Link Thu Jun 4, 2009
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