Central Florida Short Sales: April 2009

“There is no state or federal law that requires a seller to provide any disclosure forms for a short sale.” This is from one of the attorneys for out Florida Association of Realtors.

I wonder how he reconciles that statement with this:

A Seller of a residential property, whether a bank or an individual and regardless of whether the seller occupied the property, is obligated under Florida law to disclose to a buyer all known facts that materially affect the value of the property which are not readily observable and are not known to the buyer. The disclosure obligation can be fulfilled via either a verbal or written disclosure.


Now I know for a fact that a  property’s value is affected negatively if a “short sale” is required in order to be sold.  And this is certainly NOT observable.

So what gives?

Broker Bryant,

I have never purchased a home on Short Sale thus I am unfamilar with the term, does it mean they will entertain offers?  Does a Short Sale mean it might be foreclosed on? 

Thanks,
Mr. Needer Know         

Hi Needer,
 
When purchasing a Short Sale the negotiations are between  the Buyer and the Seller. Once price and terms are agreed a contract is signed by both parties and the property goes into pending status. A part of the purchase agreement is an addendum stating that the purchase is contingent (subject to) the Seller's Lender agreeing to accept less money (short) than what is owed them.
 
Getting the Lender to agree to accept less is a process that can take 2 weeks or 2 months. Basically we have to submit the contract for the property and the Seller's financial information to the Lender and make a case of why it is better for them to accept the Short Sale than it is to foreclose on the property.
 
From the Buyer's perspective the biggest drawback is the uncertainty. You cannot be sure the property is yours until the Seller's Lender makes a decision. Their decision can be:

1. NO
2. YES
3. We want more money

However, because of this uncertainty the property is normally priced to reflect a "negative property condition". This negative condition is the time required and the uncertainty involved. It puts a limit on the amount of Buyers that are interested and who are willing to have patience while the Seller goes through the process. This makes it a good buying opportunity for a patient Buyer.

Does this help?      

CENTRAL FLORIDA REAL ESTATE SHORT SALE INFORMATION

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Hi folks. Today I want to put a different spin on Short Sales and third party approval. I've read a lot of posts and comments about the dreaded 3^rd party approval and how frustrating it is for Buyers and Buyer's agents. 

My thought on this is.........it's about time!!! As a listing Broker, my Sellers and I, have spent a lot of time waiting for Buyers to get their mortgage approval. Some took 30 days and some took 90 days. Some didn't close at all.  

When negotiating offers we relied on information provided to us from the Buyer's Lender stating they were "pre-approved" or "pre-qualified" only to find out a month later that it was all a lie. They were just writing deals and hoping to get them through. 

Doesn't this all sound familiar to Short Sales? Of course it does. The Buyer's Lender approving their financing IS 3^rd party approval. That contingency is NO different than having the Seller's Lender remove the 3rd party approval in a Short Sale transaction.

In fact, as a Listing Broker, I much prefer the Short Sale and the Seller's 3^rd party approval. It keeps me in control of the transaction. 

Things have not changed that much. It's just that now the "3^rd party approval" contingency is on the other side of the contract. Deal with it!!

CENTRAL FLORIDA REAL ESTATE SHORT SALE INFORMATION

Are you a Florida REALTOR(R) looking for a change? Check it out. http://TTRealtyNet.com

CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES

MORE INFO FROM BROKER BRYANT... THE SOURCE FOR CENTRAL FLORIDA REAL ESTATE

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