When a mortgage lender accepts a mortgage payback amount that is less than what is owed in order to allow the sale of the property by a financially distressed owner, this is known as a short sale. The outstanding loan sum is forgiven by the lender.
Short sale homes in Miami are different from buying a house at a foreclosure auction or one that is a real estate-owned property (REO). Such property is a home that the bank owns.
When a house's value has decreased, and the mortgage holder owes more on the mortgage than the home is worth, a short sale can only take place with the lender's approval. In this case, the homeowner may need to sell the house because of negative equity.
Short Sales in Miami vs. Foreclosure
A short sale differs from foreclosure in several ways. In a foreclosure, the lender seizes back possession of the home before attempting to recover some of its losses through a sale. Short sales are preferred to dealing with the red tape of foreclosure and then moving forward with handling a separate transaction since lenders accept that they won't get their investment back in short sales.
Should I Sell My Home Through a Short Sale?
Whether you should move through with short sales in Miami Beach, FL, will depend on your specific circumstances and what is most likely to benefit you in the long term. You might not have many choices if you are having trouble making your mortgage payments and local home values have dropped. Furthermore, you might be able to maintain your credit in part by avoiding a foreclosure on your record through a short sale.
What Is the Duration of a Short Sale?
Additionally, the short sale offer must be reviewed by the original lender in order for them to decide whether to accept it. The lender might reject the short sale apartments offers if they think they can gain more money through the foreclosure procedure.
Working with a real estate agent who has knowledge of short sale transactions will help you shorten the process. Make sure you talk with a real estate agent who can provide evidence of specialized training and a solid track record because not all of them are knowledgeable about handling a short sale.
Your chances of closing the deal will rise if you have a real estate agent on your side who is familiar with how short sales operate and has negotiated with others.
Contact Florida Homeowner Solution
We are grateful for the chance to help you with your transaction and are looking forward to working with you to find a solution to any of the problems you may be facing. As a realtor, we hope that using our services would benefit both your clients and you in terms of increasing sales.
If you are looking to do a short sale in Miami, call us today for a free consultation. We can help you avoid foreclosure, as we have experience with hundreds of short sale listings in Miami.