Foreclosures, Short Sales and Bank Owned Property
Everyone wants a good deal right now in real estate. Many people want to get in on the foreclosure market but really don’t know that much about it. They read about all the great deals in real estate in the newspapers, hear it on the news, and listen to their friends but what do all the terms really mean?
Let start with the most complicated term: SHORT SALE. Short sale is not short and it’s not an easy buy either. A short sale simply means that a property is in default (the owner’s are not making their payments) and within a undetermined amount of time, the property will most likely go into foreclosure. So, the owner along with his real estate agent decide to put it on the market and sell it short. Selling it short means selling it for less than what is owed on the property. If an offer comes in for this amount or slightly under, the real estate agent presents that offer to the bank for approval. A long process begins. Little communication is given to the parties until such time as the bank gets close to approving the short sale. Short sales sometimes do not get approved or they take so long that the bank decides to foreclosure instead.
If a foreclosure takes place at some point in time the property goes on the market as BANK OWNED. This means that the bank is now selling the property at a predetermined price. These prices are usually pretty competitive and they do not usually entertain offers that are much below the asking price. If an acceptable offer is received, the Bank can close on the property much quicker than any short sale could close.
Another scenario exists when a short sale becomes approved but the buyers change their mind. The price at which it is approved at becomes the selling price and it not negotiable. Many people think that this is their chance to get the property cheaper yet which is not correct. Should offers come in below the new price, the whole process starts over again – going back to the bank for approval.
As you can see it is not an easy process dealing with short sales and many people don’t understand all that is involved. Our team works with many buyers and sellers in the Tampa Real Estate area and are well versed in Short Sales and Foreclosures. Visit our Tampa Bay website and get more information.