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!
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Palm Coast Realty, Inc.
Palm Beach Gardens, Florida 33410
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