- 1 Which is better a short sale or foreclosure?
- 2 How long does a short sale take in Florida?
- 3 How do you buy a short sale in Florida?
- 4 Do I need a realtor for a short sale?
- 5 Do you owe money after a short sale?
- 6 Does a short sale benefit the buyer?
- 7 Why would a short sale be denied?
- 8 Why is a short sale bad?
- 9 Who pays realtor in short sale?
- 10 What happens after a short sale is approved by the bank?
- 11 What does a short sale mean for a buyer?
- 12 What is a short sale on a home?
- 13 Can a seller back out of a short sale?
- 14 How long does it take for a short sale to go through?
- 15 How much should I offer on a short sale?
Which is better a short sale or foreclosure?
Timing also differs: Short sales can take up to one year to close, while foreclosures generally move along much faster because lenders are intent on recovering the money they’re owed. Furthermore, a short sale is far less damaging to your credit score than foreclosure.
How long does a short sale take in Florida?
Florida short sales can go through as quickly as 60 days, but more typically take up to six months. The buyer has to be prepared to wait out the process as the bank and the seller hammer out the details of what the lender is prepared to accept.
How do you buy a short sale in Florida?
I’ve broken down the process of how to buy a short sale home in Florida in three critical steps.
- Step 1: Find a home listed for a short sale.
- Step 2: Do proper due diligence.
- Step 3: Negotiate with the bank.
Do I need a realtor for a short sale?
The Listing Agent’s Short Sale Procedures
Although realtors are required by the Realtor Code of Ethics to treat everybody fairly, not every agent is a realtor. 2 This means the short sale listing agent may decide to submit only one offer to the seller and withhold other offers.
Do you owe money after a short sale?
After the short sale is completed, your lender might call you or send letters stating that you still owe money. These letters could come from an attorney’s office or a collection agency, and will demand that you pay off the deficiency.
Does a short sale benefit the buyer?
Short sales allow both the lender and the homeowner to cut their respective losses. With a short sale, the lender can get a good price for the home, while also forgoing foreclosure auction court costs.
Why would a short sale be denied?
A short sale is sometimes denied due to something as simple as the seller being current on paying their mortgage. The bank’s guidelines might state the bank isn’t allowed to approve a short sale if the mortgage payments aren’t in arrears.
Why is a short sale bad?
Short sales are a mixed bag for the buyer, the seller and the lender. If you’re a seller, a short sale is likely to damage your credit — but not as badly as a foreclosure. You’ll also walk away from your home without a penny from the deal, making it difficult for you to find another place to live.
Who pays realtor in short sale?
A short sale enables homeowners to stay in the home until the sale is completed. A foreclosure forces homeowners to vacate. While a seller typically pays all real estate agent commissions and other closing costs, in a short sale the seller pays nothing; the lender or bank foots the bill.
What happens after a short sale is approved by the bank?
If the lender approves the offer, the short sale moves forward. If the lender does not accept the offer, the buyer may counteroffer or end the process.
What does a short sale mean for a buyer?
A short sale in real estate is when a financially distressed homeowner sells their property for less than the amount due on the mortgage. The buyer of the property is a third party (not the bank), and all proceeds from the sale go to the lender.
What is a short sale on a home?
A short sale is the sale of a real estate property for which the lender is willing to accept less than the amount still owed on the mortgage. The housing market must have gone down so much that the house is worth less than the remaining balance on the mortgage.
Can a seller back out of a short sale?
Sellers Who Cancel Short Sale Contracts
Although it is more common for a buyer to cancel a short sale contract, sellers may have the right of cancellation as well. Sellers typically do not sign a purchase contract without specifying that the contract is subject to lender approval of the short sale.
How long does it take for a short sale to go through?
Once an offer is received and signed, I send it to the bank, along with the seller’s short sale package and a prepared HUD. From that point to the time of short sale approval, the average timeline is about 60 to 90 days.
How much should I offer on a short sale?
A price that’s 5% to 10% below market value is typically a good number to put on the table. Venturing further down could be dangerous territory. One last factor to consider when finalizing a short sale offer is interest rates, especially if they are unusually low at the time the offer is submitted.