Florida Real Estate Blog

They are both part of the Foreclosure process when a family can no longer afford their home. Yet there is a marked difference in the time it may take to successfully purchase the home. So let’s understand the differences.

Short Sale – this is a home that the family still owns and has stopped making payments on. They may still be living in it or they may have moved out and taken appliances and in some cases all the plumbing and electrical fixtures. This home is being sold by the Realtor for the family and the families Lender(mortgage) has to approve this sale as they will be receiving less money than they are owed (that is the reason it is called short sale).

These can take 3 to 4 months to complete and even then you may get to the closing only to find out that some of the documents the family’s lender is requiring them to sign is not agreeable to the family and they walk out of the closing. We have successfully sold and purchased these homes for our sellers and buyers but do not recommend this opportunity to anyone that has a specific time frame that they need to be in a home.

Bank Owned – is exactly that, it probably was a Short Sale and it did not sell and the bank foreclosed on the property. In this case they can make a decision usually within two weeks and expect to close within 30 days once they accept your offer.

Both of these will expect a proof of funds letter from any cash buyer or a Pre Approval for anyone that is going to purchase with a mortgage. These homes will be selling AS-IS with a right to inspect (to be done within 10 days after acceptance of offer). As neither the seller or the Bank will put any money into repairs that may be needed.

So why go after these properties? They usually are the best priced properties in the neighborhood and they may actually pay up to 3% of your closing costs. They do not however sell at .70 on the dollar (i.e. 30% discount). In Seminole count lately they have been selling within 90% of asking. So a $200,000 home would sell some where between $180,000 and $200,000 and can have a multitude of buyers bidding on it.

This is a lite read on this subject much more can be found if you google “Short Sale” or “Foreclosure”. Please give us a call with any questions.

Our company sent this out today. Consider this my public duty. I did it you can to.

REMEMBER: Cell Phone Numbers Go Public this month.

REMINDER..... all cell phone numbers are being released to telemarketing companies and you will start to receive sales calls. .... YOU WILL BE CHARGED FOR THESE CALLS

To prevent this, call the following number from your cell phone: 888-382-1222.

It is the National DO NOT CALL list. It will only take a minute of your time.. It blocks your number for five (5) years. You must call from the cell phone number you want to have blocked. You cannot call from a different phone number.

HELP OTHERS BY PASSING THIS ON .. It takes about 20 seconds.

https://www.donotcall.gov/default.aspx