Florida Future Realty

You've probably heard about short sales. Are you curious what it means when you see "this is a short sale and could have time constraints"? In our area of Cape Coral and Fort Myers there are many properties that are listed for sale as short sales.

A short sale simply means that the seller of the property owes more on the property than its current market value. They may or may not be in some stage of foreclosure. Most of the time they are behind on payments at this time. Their real estate agent is working with the seller and the seller's lender to sell this property for market value. The seller may end up paying some or all of the difference of the balance owed. Sometimes the seller comes with some cash to close. Sometimes the seller must sign a promissory note for some, or all, of the difference. Sometimes, the bank doesn't ask for anything from the seller and allows the property to be sold without any cash contribution or note from the seller. It greatly depends upon the seller's financial picture and the lender's guidelines. It can also be influenced by the listing agent's negotiation skill and an attorney being involved.

How long will a short sale take for an answer? The answer from the seller should come back within a day or two, just like any normal offer would. Obtaining an answer from the seller's lender can take some time though. We suggest allowing at least 30-60 days for an approval. Sometimes these come quicker but more often than not it will be somewhere in this range. There are some occasions where it could take up to 6 months to get a response.

Make sure you review the offer and addendum to know for sure what you are agreeing to. Make sure you don't get stuck in a never-ending contract. I wouldn't advise allowing any more than 60 days for a response. At that point if it doesn't look promising I'd suggest you move on. Other than having to wait a while longer for an answer from the seller's lender there really isn't anything else that will affect you as the buyer. The closing should be handled by a title company or attorney. You should receive the same title insurance as you would on any other sale. You can pay cash or obtain financing to purchase a short sale. Once it is approved they typically allow up to 30 days for closing. Sometimes you can get longer. I hope this helps answer some of your questions about buying a short sale. We also specialize in helping sellers in need of a short sale.

Cape Coral Short Sale Sellers

Our broker, Susan Milner, handles the short sale listings in our office. She ranks #3 in our entire MLS for listing agents to actually close short sales. She has helped many families sell their home short to avoid foreclosure. If you are thinking about a short sale as an option contact us today for more details. We look forward to hearing from you.