The "Short" Sale
The "Short Sale" Many of you are aware of what a "Short Sale" is - the sale of a home for less than is owed on open liens (mortgages, equity lines, etc.
).
The real estate market in South Florida is laden with them (most recent MLS -Multiple Listing Service- figures indicate that 39% of the current inventory of Palm Beach, Martin and St Lucie County listed homes are short sales).
What you may not know is that they are far from short and require a great deal more effort and care to get to the closing table than a conventional home sale.
From a buyer's and seller's standpoint it is well worth the wait.
Your Realtors® will be the ones providing the care and effort it takes to bring the sale to closure.
The process for getting short sales approved by lenders has improved over the years, due to lender experience, but it still is an arduous process that requires everyone be prepared to provide information on a moment's notice.
Sellers need to make sure they are providing the hardship and financial information to the short sale processors on a timely basis and buyers need to make sure they are prepared to get their home inspections, loans and/or community approval processes moving as soon as the short sale lender provides an approval letter.
Your Realtor® should manage this process for you by educating you on the requirements, providing process guidance and constantly following up.
The other primary consideration in a short sale is the condition of the home.
The condition of homes in short sale situations can range from "fixer upper" to exceptional and it typically depends on the circumstances that have caused the short sale.
There are many personal hardships causing seller's to short sale their homes ranging from loss of income, to relocation for a job, to divorce.
In some instances the seller is able to stay in the home while it is going through the short sale process and in others the seller has had to move out and is not financially able to maintain the home.
For those homes that have not been maintained a diligent Realtor® will do what is necessary to get the buyer and seller to the closing.
For example, in a recent sale, 10 days before closing, the Realtor was notified that there was an open permit from 2002 on the property, there were liens from the city for code violations and an open code violation that needed to be cleared before the property could be closed.
The seller of the home is in Pennsylvania, has not lived in the home for almost a year and had no funds to take care of the problems.
The Realtor® spoke with the city to get inspectors out that cleared the permit the next day.
He borrowed a lawn mower, mowed the lawn and had the city inspect to clear the code violation getting everything done so the closing could occur on time.
So, don't let the word "Short" fool you, but also don't let the process scare you away from short sales.
You can get your dream home for less and help the market, the neighborhood and the economy by buying short sales.
Just get a realtor that is familiar with the process and let him guide you through it.
).
The real estate market in South Florida is laden with them (most recent MLS -Multiple Listing Service- figures indicate that 39% of the current inventory of Palm Beach, Martin and St Lucie County listed homes are short sales).
What you may not know is that they are far from short and require a great deal more effort and care to get to the closing table than a conventional home sale.
From a buyer's and seller's standpoint it is well worth the wait.
Your Realtors® will be the ones providing the care and effort it takes to bring the sale to closure.
The process for getting short sales approved by lenders has improved over the years, due to lender experience, but it still is an arduous process that requires everyone be prepared to provide information on a moment's notice.
Sellers need to make sure they are providing the hardship and financial information to the short sale processors on a timely basis and buyers need to make sure they are prepared to get their home inspections, loans and/or community approval processes moving as soon as the short sale lender provides an approval letter.
Your Realtor® should manage this process for you by educating you on the requirements, providing process guidance and constantly following up.
The other primary consideration in a short sale is the condition of the home.
The condition of homes in short sale situations can range from "fixer upper" to exceptional and it typically depends on the circumstances that have caused the short sale.
There are many personal hardships causing seller's to short sale their homes ranging from loss of income, to relocation for a job, to divorce.
In some instances the seller is able to stay in the home while it is going through the short sale process and in others the seller has had to move out and is not financially able to maintain the home.
For those homes that have not been maintained a diligent Realtor® will do what is necessary to get the buyer and seller to the closing.
For example, in a recent sale, 10 days before closing, the Realtor was notified that there was an open permit from 2002 on the property, there were liens from the city for code violations and an open code violation that needed to be cleared before the property could be closed.
The seller of the home is in Pennsylvania, has not lived in the home for almost a year and had no funds to take care of the problems.
The Realtor® spoke with the city to get inspectors out that cleared the permit the next day.
He borrowed a lawn mower, mowed the lawn and had the city inspect to clear the code violation getting everything done so the closing could occur on time.
So, don't let the word "Short" fool you, but also don't let the process scare you away from short sales.
You can get your dream home for less and help the market, the neighborhood and the economy by buying short sales.
Just get a realtor that is familiar with the process and let him guide you through it.
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