SHORT SALE QUESTION - HOW MUCH IS OWED ON THE PROPERTY? Discussion to follow. Please add to the Discussion!

By
Real Estate Agent with Advanced Realty Services, Inc

SHORT SALE QUESTION - HOW MUCH IS OWED ON THE PROPERTY? How much can be negotiated on a Short Sale?


I am most curious about the first part of this question.

More than a couple of folks I have talked to about purchasing properties that required a "Short Sale" has asked "How much is owed?"

I cannot figure out why they are asking that question.

Can the folks here enlighten me?

If a seller qualifies for a Short Sale, then it doesn't matter how much is owed!!!

If the seller CANNOT MAKE PAYMENTS (to any of the following: HOA, Condo Association, IRS, County Taxes, 1st Mortgage Lien Holder, etc,) and hasn't made any payments for many months, then the OWNER(s) OF THE LIENS can possibly Foreclose on the property, or has to suffer quietly until the property is sold, and then, May or MAY NOT, be paid.

By definition, the "Short" in "Short Sale" means that the Market Value of the property is SHORT of what is Owed on the property. Be sure to understand the definition of "What is Owed On the Property".

At least One of the Lien Holders of all the Liens on the property is going to have to agree to take less (err, receive a Short payment on that which is owed) than what is owed.

Thank you for your collective responses,

To answer the 2nd question. The percentage that is negotiable depends on many items,

What will be Netted from the Short Sale as opposed to what will be Netted from a Foreclosure (ON THOSE THAT QUALIFY FOR A SHORT SALE) is one of the big ones. The WHO IS THE ONE FORECLOSING is another BIG one.

Be sure to consult with your Attorney and CPA before you enter into any Short Sale Purchase or List your Home as a Short Sale Listing! There is a lot of finger pointing going on!

And now for my Add-On... The market is turning,,, a slow turn,,,,be sure to get In On The Turn before Interest Rates turn UGLY! I invite Foreign Investors (European Investors, African Investors, Asian Investors, Middle Eastern Investors, South American Investors, etc.,) to come to Florida and CAPTURE ALL THE GREAT DEALS HERE!

Sincerely,

Steven P. Wood, Realtor 
Palm Coast Realty, Inc. 
Palm Beach Gardens, Florida 33410

Direct:               1-800-298-2566       

eMail: Steven_P_Wood@msn.com

Web:

www.homepages.com/StevenWood1
http://stevenwood.rmlsfl.mlxchange.com/
http://www.ByJoveMyHome.com/

Office:               1-800-298-2566       
Fax:                  561-277-4215
Cell:                  703-851-6535       

I am at Your Service for ALL of Your Real Estate Needs, Specializing in Jupiter, Juno Beach, Tequesta and Palm Beach Gardens !!!

Comments (1)

Steven Wood
Advanced Realty Services, Inc - Jupiter, FL

I am waiting for all of the Experts and Trainers to answer these two questions!

I have invited all to participate in the Discussion.

Any Experts, Trainers, Gurus, or Specialists in the Peanut Gallery want to answer or shed new light on the topic?

Any of the Touters Of Short Sale Programs want to answer? I want the Specialists to comment, Especially!

Granted, they are busy and are not able to comment today. 

See Blog above for my contact information,

Mar 26, 2008 04:52 PM