When looking to purchase property in South Florida, consider buying a short sale property. A short sale property is a home which is in the pre-foreclosure stage. The owner has defaulted on the mortgage payment but the property hasn’t been foreclosed upon yet. The owner has worked out a deal with the lien holder though. The lien holder has agreed to accept less money for the property than what the homeowner owes. In this, sometimes the lien holder will accept what the homeowner can sell the property for as the final payment. Other lien holders will hold the homeowner responsible to pay whatever balance is left over though.
These homes are usually in decent enough shape compared to other foreclosed on properties. The homeowner is still living in the home, but it may need some small repairs upon purchasing it. Still, it can be dicey. If the homeowner doesn’t have the money for the mortgage, the homeowner won’t have the money to repair a hole in the roof as an example.
So with a short sale the homeowner and the lender can cut their losses. In the homeowner’s case, the homeowner can walk away without any further damage being done to his or her credit. The lender can get back more money than could be gotten by going through foreclosure proceedings.
The downside for you, as the buyer, is that a short sale is time consuming. You have two parties you’re dealing with instead of just one as in a normal house sale. The lender may take a couple of months to consider your offer which means the money you have in your offer is tied up. To speed things up a little, make sure your offer to the lender is a reasonable one. Importantly, consider the current market value of the property and what it would sell for under normal conditions. You have to keep in mind what the home is appraised at and what other similar homes would sell for in the area. Also, make sure you can afford the amount you’re offering. Remember, you’ll be putting money into the home on top of the price you pay for it. Be sure you can make a profit unless you’re planning on living in the home yourself. You also need to realize that the home will be acquired as is. There isn’t any money from the seller’s side to make improvements. Definitely have a professional inspector check for termites, sagging floors and anything else which would cost you more money since you’re going to have to spend your cash on repairs if you acquire the home.
There are plenty of realtors in South Florida who would be happy to help you with your short sale purchases and here their expert services would be very valuable.