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About Short sales and the issues in Cape Coral, Fort Myers, S.W. Florida.

Presented By Sunny Spot Realty Inc. Joseph Beauvais" Exclusive Buyers agents team."

It is a lot to read but a home is a lot to spend. I took the time, will you?

What is a Short Sale & How Does It Work ???
99% of buyers are attracted to short sales for one reason only. Price

Sellers may decide not to sell at any time after a contract is signed!

A short sale is a seller wanting to sell before foreclosure and is selling below what they owe the lender. The agent and seller 100% of the time have set the price without getting approval from the owner (bank). If you make an offer on a non bank approved short sale, you are helping the listing agent see what the bank will really take. Lots of wasted time for you.

1. If the home is listed for sale prior to the following steps, the lender will not even consider an offer.

2. In most cases the seller must be 3 months behind on payments to qualify to apply to the lender for a short sale.

3. The seller must prove they cannot pay showing income, assets and liabilities.

4. They cannot own another home or property to qualify.

5. If a second lender is liable and would not be satisfied by the offer (equity line loans) then negotiations between lenders takes a lot of time and may not consummate.

6. How do you find out if there are two lenders? Ask!

7. Bank approved short sales is a misnomer. Unless the bank has approved the sales price in writing . It is an indication of what the bank may accept based on previous offers and negotiations. Most all short sales are in the process of foreclosure. After many months of waiting for an answer to your offer, it may well end up fruitless. If foreclosed while waiting, the seller no longer has the right to accept your offer. Nor the lender.

9. As of April of 2010 they must accept offers quicker. While the bank will accept your offer, they still accept other offers over many months.
Thus, you are tied up until they decide to accept an offer or not. Depending how the offer was written, you may or may not get your deposit back should you get tired of waiting and missing other great buys.

10. Short sales are like auctions "Buyer Beware". Foreclosures they clean up title, boot out renters and pay off liens. Short sales, this is not done.

Short sales are “as is”. This means whatever is wrong with the home is your job to find out. A very good inspector is a must.

The offer (short sales)

Once you put a deposit on the offer to purchase. Will the bank sign the contract? No.
Will the bank Counter offer? Most cases NO!
If the bank accepts the offer and you have a closing date. Will the bank sign the contract accepting the terms of the contract? NO!
What the means is that the closing date and terms of the contract has little value. If the bank does not live up to the contract you must suffer the consequences with little or no recourse. Find storage for your belongings until the bank closes.

All that having been said, many short sales are selling and faster than before.

Contact me to see everything including short sales!