Home Buying in Siesta Key>Question Details

Marilena, Home Buyer in Toronto, OH

we are canadian and just returned from siesta key. we put in an offer on a 2/2 condo across the street from

Asked by Marilena, Toronto, OH Tue Jul 22, 2008

the beach. the agent told us that is was a short sale, and it looked like it was a foreclosure because a lawyer's name was on the listing info. as a canadian, should i be registering the ownership in a certain way? also, how long does a property in this situation take to sell? will the lending institution always counter our offer, or are they just happy to get rid of it?

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Hi again Marilena,

I saw your other post first and did not realize that you only had an offer and that the deal was not closed yet.
You might want to consult Renee Glendinnings (941-365-7446) regarding how to register your property when you buy it. There are indeed rules for Foriegn Nationals that you should be aware of. In terms of how long it will take for the property to sell depends on where it stands in the "short sale/foreclosure" process. If it is just at the beginning it could take as long as 6 months or even more. If it has gone in foreclosure and wasn't bought at the auction, it could take just a few weeks if it is going to be a cash transaction. The landing institution should respond to your offer but most likely with a yes or a no. Do not be surprise if it does not counter. How fast it will sell will also depend on the loss mitigation officer in charge of the dossier. Some are very efficient and some are as slow as molasses. Nothing you can do about that. The problem with buing a short sale is that it ties you up and keep you from making offers on other properties that might come up on the market. If you need help, just let me know and I'll be glad to help a fellow Canadian.

Michel
941.907.1567
michelbergier@kw.com
1 vote Thank Flag Link Thu Jul 24, 2008
GREAT QUESTION:
a) Short Sale "just get rid of it" ~ banks are not always in a hurry to sale the property, many properties are in a bidding war if there is equity.
b) Closing ~ most closings once a property has an executed contract with a short sale can take from 30 to 60 days. Banks are overwhelmed work at their own time.
c) If you are a non resident then you will require additional requirements purchase a property
d) FYI ~ I would keep searching WHY not all offers are accepted on a property keep a close watch on your 2 & 3 selections. if the bank has a slow response.
PROPERTY SOUNDS GREAT ~. http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference: http://www.lynn911.com
1 vote Thank Flag Link Tue Jul 22, 2008
Hi Marilena:

WIth a short sale there are numerous variables, and no answer will fit each situation. Depending upon whether the lender has approved of a short sale--or perhaps is not even aware of it--will determine the amount of time and difficulty that will be encountered. I am sure your agent will keep you apprised as you proceed. I would recommend you speak to a qualified CPA/Real Estate Attorney to have your questions answered on title options as well as tax implications. Good luck to you.

Stephanie Kitsemble
Coldwell Banker Real Estate, Siesta Key
1 vote Thank Flag Link Tue Jul 22, 2008
This question is 6 years old and time sensitive...one would only hope that in 6 years this short sale would have been resolved.
0 votes Thank Flag Link Wed Sep 24, 2014
I'm guessing Marilena did NOT sign a short sale addendum because there was no such thing back in 2008 when she asked this question! I wish these old questions would disappear so people can't dredge them back up and confuse others.
0 votes Thank Flag Link Wed Sep 24, 2014
Maritena, If you submitted your offer utilizing a buyer's agent, then your agent can pursue information from the listing agent. A short sale is a different type of transaction. It requires financial paperwork provided by the lender and completed by the Seller along with requested documents similar to applying for a mortgage. A short sale is in theory the same process of getting a mortgage, but in reverse the Seller is trying to get out of a mortgage and asking the Lender to accept less money than the amount owed.

If the property is a homestead vs an investment/second home the process is different. In addition to the seller's financial information the buyer must also provide either proof of funds or a mortgage pre approval. If there are two lenders then both lenders must sign off on the short sale sequentially.

This process can take 4 months, 6 months or a year or better. The offer that you submitted can be countered by the lender. The Lender is seeking a net value based upon money owed and not a sale based upon market value.

You had to of signed a short sale addendum. Within that short sale addendum it indicates how long you are engaged in that offer. Typically 90 days or an agent with your agreement can write 120 or 180 days in anticipation that it will take that long to obtain an answer from the lender.

If the contract you signed reads 90, 120 or more days and you are re thinking your offer, best to get with your buyer's agent and review your options.

A short sale is not a guaranteed transaction. Approximately 33% actually close.

Best regards,

Lynn Brock
Brock Realty Inc.
941.313.1234
email@brockrealty-inc.com

Visit http://www.brockrealty-inc.com where you can sign up for a FREE account which allows you to search the MLS in real time and receive morning reports on new listings, current pendings and recent solds
0 votes Thank Flag Link Wed Sep 24, 2014
Short Sales are problematical. You now have more parties in the equation than a typical sale. The Lender now has a voice because by definition, a short sale is short of the proceeds to pay in full the debt owed. The Lender now has to decide based on factors in addition to location and condition. These factors can FED requirements, reimbursement for loses or other unknowns. The property owner/s has to concur, based on debt forgiveness and 1099 IRS concerns. Expect a counter but it is our experience that they don't really care. It's just a job, they have protocols to meet and no skin in the game. In some cases you get the feeling the more loans they resolve the less their services will be required by the Lender. All that said, find an experienced Realtor to guide you or call me on the next go around if you do not prevail. Patience in the Word for Short Sales. Lots of Patience and best of luck.
Jerry Strom,
Broker Associate
941.650.8294
0 votes Thank Flag Link Tue Sep 23, 2014
Hi Marilena,
There are a lot of variables in a short sale situation. The bank usually has a bottom line price they are willing to accept. The condo you are bidding on may have more than one mortgage, the first lender usually makes a decision of what they will accept and if there is no second mortgage things may go faster but it depends on the lender. If the lender does not accept your short sale offer they will most likely give you a bottom line. If they dont get that bottom line the unit can go into foreclosure but that generally will put the final sale off for 3-9 months before it comes back on the market as a "bank owned" property.
As a Canadian you probably do not intend to homestead the property in your name, meaning you will be here more than six months, with a valid Florida driver's license and the lower property tax benefits of being a resident of the state. If you are going to rent the property when you are not using it you may be able to depreciate the condo as a second home and or rental property.
0 votes Thank Flag Link Mon Aug 3, 2009
Marilena,

How did you make out with the Siesta Key property?

There are plenty of other opportunities out there currently and we would enjoy the opportunity to share some with you. Call or email

The "Eckler Team"

Michael Saunders & Company
billeckler@michaelsaunders.com
941-408-5363
0 votes Thank Flag Link Thu Sep 25, 2008
Short sales are very tricky due to the individual lender's backlog. Sometimes it takes 45 days or more to receive a reply from the lender.

Most lenders are looking at receiving something close to the market value of the property.

There are situations where a property may have more liens on the property than just a first mortgage. Hopefully, the real estate agent you are working with explained this to you or reviewed information with you that is publicly available about the property.

With short sales you should always use an attorney and tax adviser to ensure you are fully aware of the ramifications of the transaction or if legal issues arise.

Lastly, the agent should have been able to tell you if the property was a possible short sale or foreclosed property. The potential short sale will have the present owner's name as the seller on the contract. If a property is a foreclosed property then it will have a bank or corporation named as the owner.

In either case you should have signed contract by the seller if it is a possible short sale prior to it being submitted to the lender. (Lenders in many cases will not consider the offer or purchase valid without the seller's signature - because it is not a contract.) If a foreclosure will not get a seller's signature until the offer has been presented to the lender or corporation and they accept or present a counter-offer to you.
Web Reference: http://www.adeltarealty.net
0 votes Thank Flag Link Tue Jul 22, 2008
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