In light of the U.S.’s current economic state, many people are finding it difficult to make ends meet. Coupled with wide-spread job losses, the housing market has also seen a dramatic decline. Families are struggling to pay mortgages, and are sometimes faced with the prospect of their lender foreclosing on their home. Although this is happening all across the country, Tampa, Florida real estate has seen a near epidemic of just this scenario.
WHAT IS A SHORT SALE?
Selling the property may be the only way for some homeowners to avoid foreclosure. And if the homeowner owes more on the property than it is worth on the real estate market then the only possible way to sell it is through a “short sale”. A short sale, simply put, is where a home is sold for less than is still owed on the mortgage. This is done with the approval of that lending institution or multiple institutions. Today’s real estate owners are taking advantage of this process more and more as the market prices spiral downward. Anyone considering this option is advised to consult their accountant, attorney and real estate professional to learn more about the process and how it may help in their particular situation.
SHORT SALE CONSIDERATIONS FOR SELLERS
Not every home near foreclosure will qualify for a short sale. All sales are subject to the final approval of the lender. And if more than one lender is involved then the process can become quite cumbersome. The process of a short sale can take up to 60 - 120 days after the offer has been made by the buyer. And if the current owner has already been served legal documents from the bank leading to foreclosure, this time period can be very unnerving for them. However most experts will agree that selling the home through a short sale offers a better outcome for the homeowner than a bank foreclosure would.
HIRE REALTOR EXPERIENCED IN SHORT SALE TRANSACTIONS
For those looking to take advantage of a short sale deal, there are a few things to consider before the purchase of that piece of property. It is extremely important to investigate who is in possession of the title for the real estate, as well as whether or not the owner has received a foreclosure notice. Knowing how much is owed to the lender of the mortgage by the homeowner is also important in knowing exactly how much to offer on the home. It is in the best interest of a potential buyer to find a real estate agent who is well-versed in negotiating deals involving short sales-it can help to alleviate a lot of headache and heartbreak.
If a short sale is executed, it will not always end in the previous mortgage holder being free of any responsibility for the remainder of the mortgage. And there may be income tax implications.
Short sales have been able to help out homeowners in many instances, and should be an option taken into consideration by an owner facing foreclosure.
Author’s Note: This article was originally posted at http://www.applebass.com
About the Author: Apple Bass is a realtor in Tampa, FL. She is a recipient of the prestigious Platinum QSC Award for 100% customer satisfaction, and is consistently ranked in the top 3% of Prudential real estate professionals worldwide
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Tags: florida real estate, Foreclosure, mortgage, mortgages, prudential real estate, Real Estate Agent