Today’s real estate market has specific challenges we didn’t have in the past. The financial crash produced many distressed properties. Banks foreclosed on homes when the mortgages were no longer being paid. Some owners have chosen to sell homes as short sales rather than losing them in foreclosure. Credit damage is less severe if you can sell as a short sale VS. losing the home in a foreclosure.
In order to sell your home as a short sale, one of the conditions is that the owner must have no liquid assets. If they have funds the short sale will not be approved by their lender.
Typically, a short sale has not been maintained well. If the prospective buyer applies for an FHA mortgage in order to put less money down, the buyer and the home has to qualify in order for the mortgage to be awarded. A home inspection may uncover the need for repairs in order for the home to meet the qualifications for the FHA mortgage.
Here is one problem scenario connected with buying a short sale. If a repair needs to be completed in order for the buyer to get their mortgage who is paying for the repair? The home owner has no money for repairs. The homeowner’s bank is not paying out money for repairs, they have already forgiven a portion of the original mortgage. The buyer is not about to repair a house they do not yet own. If the deal should fall apart later, the buyer has lost all the repair money. This situation is very serious.
There are so many uncertainties when buying distressed properties. A buyer needs an expert professional realtor more than ever before. Navigating through the complications comes with experience. If you are in the real estate market and want representation by a confident, top agent please contact me. I’d love to help.
If you need a competent, aggressive realtor who understands negotiating the ins and outs of the deal please call me.
Leigh Giannotti is the OWNER/Broker Associate of Serving Brevard Realty located at 950 N Courtenay Pkwy Ste 3, Merritt Island Florida 32953. Catalina Isles is the nearest neighborhood to our Real Estate office. Leigh has earned the prestigious Certified Distressed Property Expert (CDPE) designation. An appraisal of your homes value will cost about $400 or for a FREE current market assessment of your homes value please contact Leigh Giannotti.