Short Sales

Don’t Foreclose On Your Property!

With the economy declining and home prices plummeting many banks have implemented short sale programs into their systems. These programs allow sellers with financial hardships to sell their homes for less than what they owe on the home. These programs are designed to help sellers like you so why not take advantage of them?

South Florida Premier Properties is a leading seller in short sale properties and has helped many sellers successfully through the process. With the South Florida Premier Properties Short Sale Program we have a team dedicated to short sales and will walk you through the process while also negotiating on your behalf to the bank.

 What is a short sale?

As foreclosures hit record levels more sellers are turning to short sales as a way to avoid foreclosure. So how does it work? In a short sale the seller must show financial hardship in that they can no longer afford to keep and maintain the property. The seller puts the property on the market for sale and arranges with their mortgage lender to accept a price that’s less than the amount they owe on the property. As part of this arrangement the lender typically agrees to forgive the rest of the loan and pay off any other liens against the property, such as delinquent property taxes, homeowner’s/condo association fees, legal fees, etc. As a result the seller doesn’t have to go though a foreclosure, the buyer picks up a property at a discount and the lender avoids taking on the burden of unloading the property. It is important to note that lenders generally will only agree to a short sale if the seller is several payments behind and has received a notice of default. In addition, the seller’s lender will not allow the seller to receive any proceeds or otherwise obtain any monetary benefit as part of a short sale.

 Why buy a Short Sale? 

Buyers may get a great property at a discount but buying a short sale is an emotional roller coaster. Buyers need to be extra patient as they will need to go through a lot of  extra paperwork just to make the sale work.  Not to mention they also need to be prepared to roll up their sleeves if that new property needs fixing up. In many cases short sales need significant work because no one has been maintaining the property.  

 How Long Will It Take To Get A Short Sale Approved?

Every short sale situation is different and depends upon many different factors such as the sellers individual circumstances, the nature of the loans and other liens against the property, and the sellers' lenders criteria and staffing. Many Lenders will not even begin to review a sellers request until a contract for sale has been executed which may further delay the process. In addition, lenders will require the seller to provide detailed financial information and may also perform appraisals of the property to determine whether it is in fact worth less than the outstanding mortgage amount. While some lenders are able to review short sale requests quicker than others, many lenders take at least 2-3 months, if not longer

 Is A Short Sale A “Better Deal” Than Other Properties?

Buying a property through a short sale may be a “good deal”, but that is not always the case. First, there is no assurance that a seller will obtain approval of the sale from the lender. Each lender has its own requirements to qualify. Most lenders will not allow the seller to pay for repairs or credit money to a buyer for repairs, and as such, your best and perhaps only opportunity to purchase a short sale property will be on an “AS-IS with Right to Inspect” basis. This allows you to inspect the property and cancel the contract if repairs are beyond what you would like to pay. Also, lenders will typically not allow closing costs and other credits to be given to a buyer on a short sale. While you may consider purchasing a property that is subject to short sale approval, there may be other properties available through a traditional transaction which you may find better satisfies your goals.

South Florida Premier Properties can assist you with the purchase of a foreclosure, a short sale or numerous other real estate properties.

We look forward to working with you and feel free to contact us for a FREE consultation about your home.

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