Short Sales in Central Florida

These are two words that are popping up everywhere you look!  Whether you are watching TV or listening to the radio you can’t escape it!  How did we get here?  Here is my theory:

 

Back in the frenzy of home sales in 2004 and 2005 there were many people who felt if they didn’t buy a home then that they would never be able to afford a home.  People were offering more money than the houses were listed for.  This just continued to inflate our market prices.  Some buyers should never have been able to qualify for the home they bought but back then mortgage brokers could get someone a home without any kind documentation or proof of income.  They also had adjustable arm mortgages.  This took many people by surprise when their mortgage adjusted two years later to   $400 or $500 more a month!  When these people tried to refinance they found that they could not because prices of homes had come down to below what they purchased their house for.  When this happens you have people who can no longer afford their homes but cannot pay the bank all monies owed once they do sell.  They have to ask their bank if they will be willing to take a short sale.  In layman’s term this means that the bank will take less money than owed on the mortgage to satisfy the debt due.

 

If you have the patience and the time a home that is listed as a short sale could be just want you need.  However, the banks are going to require a BPO (Broker’s Price Opinion) before they accept an offer on the home.  Most will not give you any money for repair and you could end up waiting three months and find out that the bank won’t work with the offer.  

 

If you have any questions on this feel free to call me!

Anne-Marie Ferraro, REALTOR®
Watson Realty Corp.
1445 West State Road 434, Suite 100
Longwood, FL 32750
407-622-8531 Direct Line
407-493-0719 Cell
800-943-6444 Ext. 131
amferraro@watsonrealtycorp.com
www.anne-marieferraro.com
"You're Home Free With Anne-Marie!"