A short sale is when a home is being sold for less than what the current seller owes on the property & the seller does not have sufficient funds to bring to closing to cover the balance owed.
Pre-foreclosure is the time period beginning when the borrower stops paying his/her mortgage and ends when the property is foreclosed upon. This is the time period in which a short sale may occur. Once a borrower has missed at least 3 payments, the lender usually files a Lis Pendens with the clerk of court in which the property is located.
Homeowners often attempt to do a short sale in order to avoid foreclosure. Often the lender has filed a Lis Pendens and started the foreclosure process on the property. But not always.
To purchase a short sale requires patience. After you sign a purchase agreement with the owner of a short sale property, the seller's lender(s) and/or other lien holders have to approve of the sale before you can close. If there is just 1 lender, it may take up to 2 months to hear back from the seller's lender. If there's more than 1 lender, it can take 4 months or longer to hear from all lien holders. Sometimes a short sale has a tentative approval by the lender at a certain price, so the approval process may take less than 30 days.
You also need to have your financing in order before you submit an offer. Lenders like all cash offers. They will consider buyers obtaining mortgage if you are pre-approved with your lender (not just pre-qualified), the bigger your down payment the better, and your closing time should be flexible.
Contingencies are also important in getting a short sale offer approved. The less contingencies you include in the contract, the better. If you have to be closed and move out of another house/condo/apartment by a certain deadline, a short sale may not work for you.
It's also in your best interest to do a preliminary search of the clerk of court records on a short sale property you're interested in to see if there are multiple lien holders such as 2nd or 3rd mortgage, equity lines of credit, real estate tax liens, mechanic's liens, HOA liens, etc. The more liens there are, the less likely that contract will get to the closing table as ANY of the of the lien holders can stop the sale at any time by refusing to agree to a settlement.
If you find a short sale property that you like enough to write an offer on, you should have your agent ask the listing agent if the short-sale package is ready for submission to the leder and the status of negotiations with the lien holder(s). In other words, has the listing agent done his/her short sale homework.
You would make an offer in writing to the home owner, typically on an As Is (with right to inspect) contract form. The offer will include a Short Sale Addendum. Once the seller has accepted your offer, you are bound to that contract to purchase the home according to the terms written in the contract. Your short sale addendum will stipulate how long you the buyer are willing to wait for seller's lender(s) approval. It will also indicate whether the seller can keep the listing active in the MLS and continue to submit offers to his/her lender(s) under short sale approval is obtained. The contract is signed by you the buyer and the seller, not the lender(s). The lender(s) only approve of the contract.
The most common reasons why a short sale fails to close are:
incomplete short-sale package submitted to the lender(s)
short-sale package not submitted properly so sits in a pile on a desk
the offer is too low
the buyer's offer is not strong enough in terms of financing, terms or contingenties
the lender(s) took too long and the buyer backed out
the loan was sold to investors who won't approve the short sale
junior lien holders refuse to cooperate
It's very important if you are pursuing a short sale that your agent gather as much information as possible and disclosure as to the short-sale process by the listing agent up front so to help you determine the odds of that short sale transaction closing.
I know this is a lot of information to absorb, your agent should be able to sit down with you and go over the entire process until you are comfortable with it.
Because of a lot of short sales and foreclosures that happened in 2009, appraisal values were effected negatively. Now that for most part we are out of that mess, I am seeing appraisals coming very high.... more
It depends on the size and type of pool you are planning to install. You may also be required to pull permits. I would advice you to get a quote from 2-3 contractors to get a competitive estimate.... more
Realtors are not lawyers and can't give legal advice. Short sales do come with an addendum and arms length transaction form that you as the buyer must sign. Be very careful here and contact a real estate attorney if you plan on going through with this idea... more
You should contact a LOCAL buyers agent who can help you with this. Cape Coral is complicated with regard to Well/Septic versus City Water/Sewer and whether the assessments are paid or not. Cape Coral is currently putting City Water and Sewer in certain areas with other areas next in line. Eventually the few areas remaining on Well and Septic will be put on City Water and Sewer with a cost to the home owner. Before purchasing a home on Well and Septic you should find out when City water and Sewer will be coming in along with the attached assessments so you can be sure it will not be a hardship... more
Unfortunately you are having a hard time because there just are no Single Family Homes in Cape Coral at an $850 monthly rental anymore. $950 seems to be the starting rate but if you look real hard you may be able to find something for $900. Wish I had better news but perhaps if you search where individuals post rentals themselves, you might have better luck. Good luck!... more
I have been a property "owner" for 20 plus years- and owned beautiful homes that I have doubled the value of with my husband- as he did his day job and I basically made the home what it was- beautiful and desirable to buyers. I also raised 3 children, did the bookkeeping, investigating, painting,decorating, listing, etc... and we double our profits- but then D Day came. He "Mid-Lifed" on me and basically lost his sense of reason.... his loss- but I paid too, emotionally, financially and how people see me once they see that I have to rent at around 1000 or less a month. The issue I am have is with your statement is how you classified "Low Income Renters" and that" they have decreased the quality of your life in Porto Vista". Please, please do NOT equate a lower income individual (especially when things have happened to them in life that are beyond their control and they lose all they have worked for-) Believe me NO ONE is immune. It can happen to anyone- even your job, your money, your investments... the strength of security that they offer you or anyone is like a protective wall, but, in your imagination alone. I was one that had it all and in ONE day became one who barely had a thin, and was so crushed that I couldn't even get through a entire work day without breaking down into tears. Which made it even harder to pay rent. I was lost and afraid, but didn't lose my sense of cleanliness or taste or intellect. I can make a 750 dollar rental (a month) clean and classy to where the most distinguished of guests feel at home. In fact, I know A LOT of wealthier people who are basically slobs. Money and income does not create a better person, neither morally, nor in any other aspect of life. Financial inequality is just another form of prejudice and being familiar with both sides I can speak with accuracy and experience.... more
think it will depend on the market of person you look for. I would rather have a custom made counter if the house has beautiful counter than the granite. I think that If I were to price it I would price it at $5,000 up and then figure out what to do with the difference. Good luck to you. http://www.granbrazil.com... more
Saltwater canals are more expensive than freshwater canals. In Cape Coral the vast majority of canals are saltwater that lead to the river and gulf. Most people prefer saltwater because freshwater canals have no such outlet.... more
Yes they can... anyone with a license can sell the property... Not all agents do that, some elf us really work hard in selling homes we have listed since that is the way we get paid... other wise nothing would sell and we'd be paying for advertising that went no where.... more
Each HOA is set up individually and have their own set of documents and budgets that would include amenities that the developer and the owners agreed upon. Unfortunately, I'm not aware of one place to call for an answer for all associations, you would do best by reviewing the associations documents.... more
Yes, but you also have the advantage of combining the lots now and having the exemptions apply to both lots, saving you goo-gobs in real estate taxes and capping the amount you pay - that wouldn't happen with a lot somewhere else.... more
Hi Brittany, I typically do not do rentals as there is a lot of leg work involved for very little pay. However I know Cape Coral well and the rentals market well so a fellow Michigan girl I would be happy to help. Call me at 239-240-1366 or email me at firstname.lastname@example.org and we can go from there.... more