Many buyers get have the idea that a fShort Sale or a foreclosure is a great deal. Is that your impression?
So what is a Short Sale? Here are a things to think about when considering a Lehigh Acres home that is a Short Sale.
A Short Sale is a pre-foreclosure attempt by the owner to sell the property for the best price they can get and for less money than they owe. Then the owner makes up the difference (sells short) to the bank and avoids foreclosure.
For example if a owner owes $300,000.00 and is willing to sell it for $250,000.00 the owner would have to pay the $50,000.00 to the bank at closing or take out an additional loan if they are credit worthy.
Sounds good but most people in this situation do not have the money to make up the difference. In many cases this is an attempt to put off foreclosure. Also in a short sale often times you need the banks permission. Another hard to understand fact is that often the bank 30 to 45 days to even give you an answer. Therefore you could be waiting all that time and they say no and you start all over again. We have been told that is because the bank must meet in committee's and they may only meet once a month.
Also in a down market as we are in 200, often the appraised value of the property is less than what is was when the owner bought it. This means they could owe more than the property is worth and that it would not appraise at even at the Short Sale offer.
In most cases in a down market there are good deals if you are a serious buyer and you can avoid Short Sales or Foreclosures and by new construction or a re-sale home for just as good a deal.