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Short Sale are Long Sales

By
Real Estate Agent with Metts Group at Future Home Realty 692997

We hear this a lot. "Why is it called a short sale if they take so long?" That's an easy answer. The banks call it "short" because they are "shorting" the loan payoff.

Let's say you bought a 3/2/2 home in Dunedin Florida for $250,000 in 2005. That home now is worth $125,000. Yes that is our reality in Florida. Great place to live, however, we had very inflated prices in 2005. You took out a loan when you purchased the property for $242,500. That would be and FHA loan at 3% down.

You would owe the balance of the $242,500 loan, let's say $234,000 and after closing costs you would only have $116,000 to pay them back. A short sale is the bank approving the loan payoff short $118,000 ($234,000-116,000). Or in other words, the bank will be receiving $118,000 less than what was owed on the original loan.

Balancing your decision of selling your home short, renting the property until the market gets back to cover the loan amount or letting the bank foreclose can be quite trying decisions. If you load up on information regarding future deficiencys you can make a solid decision on what is best for you and your future. 

The best plan is to plan. Arm yourself with knowledge and use professionals that are in the know. Not the many SCAMS that are taking advantage of an already difficult problem.

 

The Metts Group has closed over 50 short sales sucessfully. Ask our clients, they are happy they took a move towards their future.  

 

Posted by

Jeanine Metts, CDPE
Keller Williams Realty
35095 US 19 N
Palm Harbor, Florida 34684

Office: 727-772-0772
Direct: 727-216-8346
Cell: 727-418-5224
Fax: 727-772-8820

jeanine@MettsGroup.com
www.MettsGroup.com

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