Short Sales Are Becoming More Popular than REOs "Bank Owned" | Santa Rosa Beach FL Short Sale Agent

Short Sales Are Becoming More Popular than REOs "Bank Owned" | Santa Rosa Beach FL Short Sale Agent

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Santa Rosa Beach and Destin Short Sale Help

When the Santa Rosa Beach FL Real Estate Market crashed in 2006, many agents figured out that it was time to change their business model and become REO "Bank Owned" listing agents.   I called all of my banking contacts, sent out letters, joined the lists, joined REO trans, etc, etc.   There were a handful of agents that had great success with this and I congratulate them.  I was able to find a different Niche.

When I was unable to become a REO listing agent, I decided to study hard, advertise and work hard to be known as a REO and Short Sale buyer's agent.  After many buyer transactions, I began gaining expertise as a short sale listing agent.   Initially, I took a small number of short sale listings just to help understand how the short sale process worked on the listing side.  This made me very effective as a short sale buyer's agent.  After helping a few sellers in trouble, I found that I really enjoyed helping people execute short sales.  As I would help one person out of a bad situation, another one would approach me and the referrals started coming in.  In Destin in Santa Rosa Beach FL, our property values are down as much as 60 to 70% in many cases.  I expect short sales to be around because I know my savvy buyer clients will sell and hit the sidelines if values shoot up too quickly.

I have had recent conversations with many employees at the major banks and it seems that most are moving toward the short sale as opposed to the REO "foreclosure".  This is great news for those in trouble and those agents that have embraced the short sale transaction.  I constantly watch the sales numbers and I am noticing that the numbers for the REO listing agents are slowly decreasing and the Destin and Santa Rosa Beach FL Short Sale agents seem to be selling more.  This is because short sales are dominating the market and a short sale, is in most cases a better option than a foreclosure.  The short sale is better for the banker and the seller. 

Reasons Why Short Sales are more Popular than REOs

• Not a hostile take over - A short sale involves a real closing between a buyer and seller.  This creates less political and legal liability for the bank.
• The expense of a foreclosure - Banks have to pay substantial legal expenses to foreclose and a short sale costs them much less on the front end.  Most folks doing a short sale are noncollectable, so the legal expense is lost money.  Also, Foreclosures take major abuse and this decreases property values, resulting in more lost money for the banks.  In a short sale, the seller often stays in the home until closing and many are in immaculate condition.
• Many Banks Are Waiving The Deficiency Balance -  In Recent Months, this has become more common.  The last 4 short sales I completed involved a full release of deficiency for the seller.  This makes the short sale a very attractive option to sellers.  They can complete it and move on.  All sellers should consult with an attorney regarding the tax liability of a short sale and the 1099 for "forgiveness of debt".  In many cases the tax liability can be avoided.  Some times the banks will require a cash contribution or promissory note to waive the deficiency but it all depends on the bank and the financial situation of the seller.
• People Without Hardships Are Completing Short Sales - Some agents avoid no hardship short sales but I have completed them and I welcome them.   They are different and complex but I expect to see more and more of these in the coming years.  Selling a short sale without a hardship used to be very difficult but it is becoming more common.  It is all about negotiating a deal that works well for the client and in most cases, we can get there.

Feel free to call or email me with any questions about Santa Rosa Beach or Destin Florida Short Sales.

"Mainsail Realty Company/Clayton Bonjean is not associated with the government, and our service is not approved by the government or your lender." "Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit"