There has been a lot of talk lately in the press about the real estate market and the short sale market in particular. Many people may be confused about what a short sale is. A short sale occurs when a seller owes more then the property is worth and the bank is willing to accept a sale for less than the mortgage amount.

This represents a wonderful opportunity for both buyers and sellers. A short sale avoids foreclosures of South Florida real estate and homes and impacts the seller’s credit much less harshly than a foreclosure as it shows up on the credit report as paid in full.

Additionally, with a traditional foreclosure, the bank can get a judgment against the seller for any difference between the loan amount and the final sale price. In a short sale the bank marks the loan as paid in full and the seller does not owe any additional monies.

For buyers the opportunity is wonderful because they can often purchase a property for significantly less than market value. I am currently purchasing a short sale property myself where identical units in the complex sold for up to $200,000; I am purchasing the unit for $123,900 with a $3,000 seller contribution, making the sale price $120,900. I will rent it out as soon as I close on it and will hold it until the market corrects itself at which time I may consider selling. It is important when looking to buy or sell a short sale that you use a short sale agent because it is a very complex process that needs someone to walk you through it step by step.

Please feel free to view our short sale website for sellers at: www.southfloridashortsale.com, and don't hesitate to contact me directly for a list of short sales and foreclosures in the South Florida Area.

Ellen Bithell
Sells South Florida
954-862-2631
www.homeinsouthflorida.com