| Short Sales, Bank Owned, Foreclosures |
Short Sales, Bank Owned & Foreclosures-What does it mean to me?
While the availability and value of Homes has never been better here in the state of Florida, the difficulty in getting one is complex. With a whole new terminolgy on homes we have not seen before, with the tight financing from the lending institutions and navigating thru Short Sale negotiators and fees charged, it is highly critical that you obtain the services of a a professional realtor and one with experience who has as they they say " Been around the block a time or two".
Short Sales- All multiple listing have a catagory called Special Sale. In this catagory you will either see Short Sale, Bank Owned or None. If a home owner is trying to sell their home and after a price is agreed upon and all fees to the seller are calculated if there is not going to be enough to pay off the sellers mortgage then that's what we call a SHORT SALE. The seller must then go thru the process of providing their lender updated financial documents so they lender can determine if the seller is indeed in a hardship situation and then and only then will the sellers lender approve the SHORT SALE. This can take anywhere from 2-5 months nowdays. And only after the sellers mortgage company approves the sale or transaction then the buyer can proceed with the normal procedure of doing inspections, title work, and finalizing their loan.
Bank Owned property-If a seller is not successful in a short sale transaction and cannot afford their home, then it goes into foreclosure, the bank or lending institution will foreclosure on the property and the seller will have to move out. This can take anywhere from 6 months to 2 years nowdays. Once the bank has foreclosed on the property, the property will be listed as BANK OWNED. The property will probably still be listed by a REALTOR and your negotions will be with the bank. Sometimes you may get quick answers and other times it may take as long as 2 weeks to get an answer back from the bank. You can expect a lot more paperwork. While some of this properties may be good deals they may also need quite a bit of work and typically you are buying them "AS IS"
Foreclosure- This is simply the terminolgy that identifies a property as being in foreclosure, the seller is behind on making their payments but the bank has not foreclosed on them yet.
None- Another option on the Special Sale catagory means the property is not short or Bank Owned, so the seller selling it is in good standing and ready to negotiate. These are the fastest transaction by far. They also right now are the least common.
Any questions call me or send me a note.
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