Short Sales Palm beach County Real Estate

If you are behind on your mortgage, if you are finding that each month the mortgage is getting harder to pay or if you know your mortgage is going to adjust and that may cause a financial hardship, a short sale may be the solution.

For "under-water" borrowers who owe more on their mortgage than their property is worth and are having trouble selling, this presents an opportunity for them to avoid foreclosure as a result.

When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.

In a short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the borrower. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender.

A short sale is simply the most economical solution to a problem. Usually, banks will incur a smaller financial loss than would result from foreclosure or continued non-payment of the mortgage.

The majority banks/lenders have pre-determined criteria for such transactions, but they may be open to offers, and their willingness varies. A bank will typically determine the amount of equity (or lack thereof), by determining the probable selling price from an appraisal or Broker Price Opinion (abbreviated BPO).

Lenders may accept short sale offers or requests for short sales even if a Notice of Default has not been issued or recorded with the locality where the property is located. Given the unprecedented and overwhelming number of losses that mortgage lenders have suffered from mortgage failures that in part triggered the Financial Crisis that began in 2007, they are now more willing to accept short sales than ever before.

Selling your Property and Starting the Short Sale Process

Don't go it alone, I completely understand the emotional side of this situation and am sensitive to myclients who are faced with even having to consider this process.