About Short Sales.....
Q:
What is a ¨Short Sale¨?
Here´s an Example: Two years ago Mr. Seller
bought a second home on the island for $400,000. He
obtained a mortgage from a bank for $380,000 at the time of
the purchase. Now, for various reasons, Mr. Seller can´t
make the mortgage payments any longer. If he doesn´t do
something soon, the bank will foreclose on his property.
Mr. Seller would like to put his home on the market.
However, it´s current value is only $340,000. He can´t
sell it for $340,000 because he owes the bank $380,000 but
doesn´t have the additional $40,000 he´ll need to pay the
bank upon closing. On the other hand, the bank doesn´t want
to foreclose on Mr. Seller´s property because it will take
many months and tens of thousands of dollars only to get the
same $340,000 that the home is currently worth. Therefore,
the bank agrees that if Mr. Seller can sell his home right
now for $340,000 they will accept that amount as
satisfaction for the mortgage. Mr. Seller will be off the
hook with less harm to his credit and the bank will
minimize it´s losses.
Lately the banks and the fed have come up with some new
standards for dealing with homeowners in default. Many banks
have decided that is is better for all concerned to avoid
the whole foreclosure procedure and work directly with the
homeowner to put new owners in the home. This is already
relieving some of the tension and complication in purchasing
a short-sale home. This opens up many new possibilities for
you to purchase in this market.
Q: How can I buy a ¨Short Sale¨
Property?
Each Short Sale situation is different: different
bank; different financial situation; different seller
situation; different personalities at the bank; different
amounts due on the mortgage.
Each Short Sale Purchase must be approached
individually because of the above mentioned factors. Some
of the transactions are smooth. Others can be frustrating
and tough to get through. We have gotten some excellent
deals for our clients once they understand how the process
works.
My job is to secure a good price
for my client and to guide us to a smooth closing. As in
any other real estate transaction, the buyer should have a
good marketable title as well as having everything else in
order. We need to be very careful because the bank has no
obligation to you, the buyer. I know how to handle these
situations.
More About ¨Short Sales¨:
We have Short Sales available on the island
and in Cape Coral there are many. Some of them are excellent
opportunities. Some of them may be overpriced and not bargains
at all… but we can make an offer on any of those and see if
the mortgage holder will take it.
Please feel free to call or
e-mail me with your questions about any of these properties.
Have You Read About "Pine
Island Foreclosures"?
