Florida, and particularly Sarasota County is an area filled with attractive foreclosure and short sale opportunities. A short sale or a foreclosure is a great way to buy a home or condo, but you must understand what you are getting into. This is definitely not a typical "buy a home" deal. You need to know what to look for and what to look out for.
A short sales occurs when a lender allows a house to be sold for less than what is owed on the mortgage on the property. Generally, the mortgage holder is hoping to take less of a loss on a short sale transaction than they'd get by letting the home go through the foreclosure process. Once a lender takes possession of a home though foreclosure, it is responsible for all of the cost of maintaining the property until it is sold. That can get expensive.
Since the lender, not the owner of the property, is the one responsible for approving the sale, it is important to make your offer as appealing as possible to that lender.
(1) It’s important to get a mortgage pre-approved with a qualified lender. A pre-approval letter is a MUST for short sales to prove you offer is serious.
(2) Do not bother trying to negotiate repairs or improvements to the property. In virtually all short sale and foreclosure deals, the lender wants an "as-is" sale.
(3) Offer a substantial earnest money deposit. A local Realtor can tell you what is going to be considered a serious deposit.
(4) If possible make your offer a conventional mortgage loan. "All cash" offer are even more appealing.
(5) Offering a large down payment makes your offer more attractive than competing offers. Here again, a local Florida Realtor can advise you.
It’s important to be patient on these types of home purchase offers. Short sale deals go through several more steps than a regular home purchase transactions. A typical short sale deal may take two months or more before you'll get an approval or denial.
Even with these constraints, a short sale home purchase can be a very attractive approach to home ownership. But don't try doing this alone unless you are an experienced real estate investor. Call upon a local licensed Realtor. In Bradenton Florida, for example, you'll find Brian Ward offers expert assistance on Bradenton real estate short sales. In Sarasota, Connie Belmont would be an excellent Sarasota real estate buyer agent.
