What is a 'short sale'? We hope to be in a position to be cash buyers of a Florida villa later this year - how would a short sale work for

Asked by John Ball, Davenport, FL Sun Feb 7, 2010

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11
Joycelewis412, Home Buyer, Sacramento, CA
Sat Aug 17, 2013
Buying a short sale is just like any other bank owned properties. Most of the times, they cost less.


Check if you qualify for a mortgage. Try http://www.whywaitbuytoday.com
0 votes
ANDREW OLLICK, Agent, NAPLES, FL
Wed Feb 10, 2010
You've already been told about what a short sale is. I do think that buying a short sale is THAT bad, if you have the time to wait. Sometimes you can even get better deals in a short sale than a foreclosure. so if you're not in a hurry and you find a perfect house that is a short sale, I wouldn't be afraid to bid on it.
Let me know if you need help


Elena Ollick
Amerivest Realty
Faith Home Loans
1-800-801-6080
239-443-5400
239-206-5400
eo@oceanhomesrealty.com
skype: napleshomes
0 votes
Anthony, , Davenport, FL
Tue Feb 9, 2010
Hi John,

Ditto from me, Short sales take time. I had one close in a about a month and a half which was pretty good. Currently waiting for one to close where contracts were signed in November.

Apart from the time commitment short sales will not be any different for you than regular or bank owned sales so do not look exclusively at these.

Thanks

Anthony
Web Reference:  http://www.llsrealty.com
0 votes
Myke Atwater, Agent, Santa Rosa Beach, FL
Sun Feb 7, 2010
Hello John, I won't bore you by repeating what other agents have defined as a short sale. It is "short of money" to the lending institution, who is the third party in the transaction. A contract is agreed upon between the buyer and the owner of the home. Once an agreement is reached, this agreement is "subject to approval by the lending institution"--this is where it gets sticky. The owner doesn't really care what your offer price is, since they will be getting NOTHING from the transaction except probably a 1099 tax form for the difference between what they owe the bank and what the bank decides they will accept as settlement. What takes the time is the bank's decision--and, depending on who the bank is, this can be a very long ordeal or can be relatively short. It will be at least 45 days, and generally longer until the bank gives an answer. They many times will give a counter offer to the buyer.

I have a condo about to close that is a short sale, and we were supposed to close in November. If you are not in a hurry, but can be very patient, you can get a great deal with a short sale. At the very least, you will not pay more than the present market value of the property, which is normally considerably less than what the previous owner paid. Another realtor in my family has had great success with short sales as well!! Just remember, it is not easy and it is not fast.

If time is on your side, go for it! If you need a place to live, try another avenue!!

Best of luck, and if I can help you out here in the Florida Panhandle, do not hesitate to call on me.

Myke Triebold, gRI, LMC
850-305-6256
MykeSaysSold@aol.com
http://www.DestinHomeRealtor.com
Web Reference:  http://www.MykeTriebold.com
0 votes
ANDREW OLLICK, Agent, NAPLES, FL
Sun Feb 7, 2010
I disagree with some agent who think short sales are "bad business". It's the way of the market and it is hard for some traditional people to accept that. Yes, it does take longer for a short sale to come through, but when time isn't an issue, you can get a better deal than in a foreclosure, and not have to fight 5 other buyers. If your real estate agent knows what he/she is doing , short sale can be put through in as little as 2 months. Also picking out approved short sales saves time. In addition to that, short sales tend to be in a better shape since the owner is usually still occupying the house and cares about selling it, i.e.: taking care of it.

Let me know if you need any help.

Elena Ollick
Amerivest Realty
Faith Home Loans
1-800-801-6080
239-443-5400
239-206-5400
eo@oceanhomesrealty.com
skype: napleshomes
0 votes
Mark LeMenag…, Agent, Lake Nona Orlando, FL
Sun Feb 7, 2010
Hi John,

A short sale has been well defiend so I won't go over it again. I tend to be in the "short sales are a waste of time" crowd, but i have to admit that the statistics are starting to show that more of them are succeeding. I would put it this way. If you are looking in the tourist areas for a short term rental, then short sales will continue to be a waste of time because lenders are not going to easily forgive the debts of investors and 2nd home buyers. If you are looking in normal residential areas at the owner's primary residence, then short sales are worth a look.

Do you understand what an REO or "bank owned" property is? This is a property that has been taken back by the bank is is offered at a bargain price. These are almost always worth pursuing. Attractive bank owned properties under $100,000 sell in days. It is a very competitive market for them.

I am very familiar with the area that you are writing this question from. I was showing properties there last week. Take a look at my website and if you like my approach, then I'd be gald to hear from you.

Good luck,
Mark LeMenager
Find your next house with the click of a mouse.
Search the MLS without obligation or registration from my website.
0 votes
John Bennett, Agent, Orlando, FL
Sun Feb 7, 2010
John, Run away from a short sale.

Some facts:

1. Can take up to ONE YEAR to complete.
2. Only about 1 in 5 will complete
3. You will want to Kill your Realtor, and Since I want to be your Realtor- I don't like this idea.

Plenty of homes available , priced well - little reason to go looking for trouble.

I work the Davenport area, why did you choose the Davenport area?

John
352-978-4539

http://JohnABennett.net

John@JohnABennett.net
0 votes
Alan Martin, Agent, Orlando, FL
Sun Feb 7, 2010
Hi John


a Short sale is

A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments.

Short sales can be very frustrating , especially for folks from UK

I work with UK homebuyers and have done so for 10 years or so. I am from UK and lived in Davenport for the first 5 years that I was in Florida.

It would be a good idea for you to team up with a local real estate agent (realtor) who can help you identify homes that would suit your needs.

there are many short sales and Bank owned homes in Davenport and I can help you buy any of them.

Real estate changes hands here in a different way than you are used to.

Hope this helps

kind regards

Alan
0 votes
Joanna Morris, Agent, Inverness, FL
Sun Feb 7, 2010
A Short Sale has a lot of negative press out there. But if you shop and are patient, you can obtain a very nice home. There many Realtors who are experienced at handling short sales. This entire process can take very little time to up to 4 months on usual basis. There is no guarantee that the bank will take your offer. Make sure your offer is reasonable in relation to current sales.
0 votes
Marty Kaiser, Agent, Orlando, FL
Sun Feb 7, 2010
Hi John,

Essentially what the other agent stated in quite correct. Short Sales are situations where the seller owes more than the property will generate on the open market, typically has stopped paying their payments and their lender has started a legal process and it is up to the seller's lender to approve the short sale or deficiency. It is a slow process offering very good value to purchasers. Consequently, if you were to pursue a short sale property, you should be prepared in most situations for a 60-120 day period from the time the local owner/seller agrees to your terms and the seller's lender written response to the offer. It requires patience and time on your part. My principal recommendation on short sales, as we have worked with numerous customers is that if Bank of America is the seller's lender, it will be a very slow process, on average taking 6-9 months, so most buyers shy away from entering into agreements on Bank of America held properties. BOA has started a new data base entry process for short sales so we will see if that helps reduce the time.

Feel free to contact me for further information or future assistance.

Sincerely,

Marty Kaiser
Accredited Buyer's Representative(ABR)
marty@floridasells.com
407-595-9700
Broker/Associate
"Excellence, Experience, Enthusiasm & Ethics"
Web Reference:  http://www.floridasells.com
0 votes
Kevin Clouti…, Agent, Cape Coral, FL
Sun Feb 7, 2010
Hi John,

A short sale is where the seller's bank needs to approve the sale because they will be receiving less than the seller owes and you, the buyer, want a clear title. Each bank plays by their own rues regardless of Obama's directive to uniform the situation. I have a team of lawyers and title professionals that work with my short sale buyers and sellers at no charge.

You will need that kind of support to co,plete a successful purcahse inder these constraints which will net you a home at a very good price.

call or e-mail me if I can help you.


Kevin Cloutier, Commercial & Residential Realtor
Southern Premier Realty
Cape Coral, FL 33914
239-246-6639 cell
kevin@kevincloutier.com
Web Reference:  http://www.kevincloutier.com
0 votes
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