Short Sale Basics
What is it?
A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.
If the unpaid balance of a loan is, say, $100,000 and a property sells for $90,000, under a short sale the lender might accept $90,000 as payment in full.
Why should I consider a short sale?
Short sales make up a significant share of total home sales. According to the Florida Association of Realtors, the South Florida real estate market is being fueled by them, with over 60% of all recent sales consisting of foreclosures and short sales. This situation represents a unique opportunity for buyers to obtain property at a tremendous value, but the process of completing a short sale or buying a foreclosed property can be confusing and are more time consuming than foreclosures since they usually require bank approval.
CLICK HERE to browse short sale listings the Miami area
Links to More Information
- Short Sale - Buyer & Broker Beware!
- Short Sales on About.com
- Short Sale - From Wikipedia
- Before You Buy a Short Sale
- Being the Buyer at a Short Sale
Contact Simone for more information.