Short Sales / Pre-Foreclosures

A Buyer will pursue a Short Sale because they feel it is a good deal.  However, before you proceed, there are a few things you should know before purchasing the home.  The first step is to consult a Realtor.  They will be able to research further into the home and let you know whether or not this is a Short Sale or Pre-foreclosure.  Either way, it will not be as simple as you may think and rarely will you be able to close within 30 days or less. 

What is a Short Sale?
A Short Sale is when a Homeowner/Seller's Lender is willing to accept a discounted payoff to release them of their existing mortgage.  It is entirely up to the Lender whether or not an offer is accepted, even if the Homeowner/Seller accepts it.  In addition to this, the Homeowner/Seller must be in default of their mortgage payments before the Lender will allow a Short Sale to occur.

Do Your Research
Prior to making an offer on a Short Sale, make sure you do your research.  Utilize the services of your Realtor to assist you in your search.  Your Realtor can tell you how much is owed to the Lender(s), whether a foreclosure has been filed on the property and the person on the title.  If the Homeowner/Seller has acquired two loans, the Second Mortgage Lender will more than likely be the one you deal with.  This is so the Second Lender will not be eliminated if the Buyer's offer only covers the first mortgage.  For instance, if the Homeowner/Seller owes a total of $250,000 - $200,000 to the First Mortgage Lender and $50,000 to the Second Mortgage Lender, a Buyer cannot bring an offer of $200,000 because it will wipe out the Second Mortgage Lender. 

Be Prepared
A Short Sale will not be approved by the Lender unless the Homeowner/Seller has provided them with a Hardship Letter, does not have equity and does not have the ability to repay the difference between the existing loans and sales price.  Also keep in mind that the Homeowner/Seller should receive no money during the Short Sale  process because their lenders are the one's losing money.   Therefore, be wary of any Homeowner/Seller indicating you as the Buyer owe them money.

Remember, the Lender is the only one who has the ability to accept or deny your offer.  Although the Seller may accept your offer, they must get a stamp of approval from the Lender.  It is wise for you to send the Lender a copy of your earnest money deposit and you should not be surprised if the Lender asks you to increase your offer.

You will also need to provide the Lender information regarding your loan availability and preapproval status.  You will want to send the Lender your preapproval letter from your Lender and a CMA (Comparative Market Analysis) from your Realtor to justify your offer.

Lastly, you will want to provide the Lender with a time frame.  Let them know your offer is contingent upon acceptance and you are free to cancel the Short Sale process if no response/counteroffer is received within the time frame.  Make sure you obtain the Lender's info prior to submitting any type of offer so you know the appropriate person direct your offer and questions to.

Out of Pocket Expenses
With Short Sales, the Lender will not generally pay for customary items a Seller would typically pay, therefore be expected to fund your own inspections.   The Lender will expect the Buyer to purchase the property "AS IS" and will not pay for any repairs.  Therefore, it is extremely important you obtain all home inspections, including termite/pest, roof, sewers/septics and fireplace (if applicable).  Make sure your offer is contingent upon approval of these inspections. 

Please Contact a Curri Properties Agent with Further Questions/Concerns on Purchasing a Short Sale - 321-259-1003 or 321-255-9555
By Elizabeth Weintraub

See more properties for sale below

MLS #555555 | Palm Bay Single Family 3 Bedrooms / 2.5 Bathrooms For Sale, Short Sale Port Malabar Unit 48	1355 NW OLDEN AVE Palm Bay, FL 32907
ROLLOVER TO VIEW 8 PHOTOS $90,000.00 ($50.00/sqft) Palm Bay Single Family For Sale 3 beds, 2 baths, 1 half baths, 1808 living sqft Price reduced $90,000.00 since 11/21/09 | City water home in great condition! great floor plan with large kitchen complete with breakfast bar, formal living,dinning and family rooms. centrally located, great neighborhood. - short sale Top Features: for sale, short sale , Subdivision: Port Malabar Unit 48 , Built in  2005

MLS #545898 | Merritt Island Single Family 3 Bedrooms / 2 Bathrooms For Sale, Short Sale, Remodeled Gateway Unit 2 Revised	465 MONITOR ST Merritt Island, FL 32952
ROLLOVER TO VIEW 12 PHOTOS $89,000.00 ($67.00/sqft) Merritt Island Single Family For Sale 3 beds, 2 baths, 1326 living sqft Price reduced $40,900.00 since 7/25/09 | Short Sale Bank Approve Price for faster closing! Totally remodeled and updated including kitchen, bathrooms, floors and electrical. Privacy fenced back yard has covered Tiki Deck. Includes sprinkler system on well, recent A/C, hot water heater ... Top Features: for sale, short sale, remodeled , Subdivision: Gateway Unit 2 Revised , Built in  1975

MLS #562728 | Melbourne Lakefront, Waterfront Single Family 3 Bedrooms / 2.5 Bathrooms Pool For Sale, Short Sale, Bank Owned Suntree P.u.d. Stage 4 Tract 3	Melbourne, FL 32940
ROLLOVER TO VIEW 12 PHOTOS $196,800.00 ($93.00/sqft) Melbourne Single Family For Sale 3 beds, 2 baths, 1 half baths, 2124 living sqft Price reduced $58,100.00 since 2/27/10 | Not bank owned/not a short sale. 2 story, 3 br, 2 ? ba, custom suntree pool home on nearly ? acre lake front lot. separate living & dining rooms. expansive kitchen is open to the family room, featuring a brick fireplace, wet bar & triple sliders ... Top Features: for sale, short sale, bank owned , Lakefront, Waterfront Has a pool , Subdivision: Suntree P.u.d. Stage 4 Tract 3 , Maint Fees: $185.00

MLS #557564 | Melbourne Single Family 4 Bedrooms / 2 Bathrooms For Sale, Short Sale, Remodeled Bowe Gardens Sec J 3	2524 BOYD AVE Melbourne, FL 32935
ROLLOVER TO VIEW 12 PHOTOS $69,900.00 ($53.00/sqft) Melbourne Single Family For Sale 4 beds, 2 baths, 1312 living sqft Price reduced $99,100.00 since 12/22/09 | Beautifully remodeled house in Bowe Gardens that is accessible to everything being right off Sarno Rd. This home boasts newer kitchen cabinets, remodeled bathrooms, tiled/hardwood flooring throughout, porch converted to a dry bar/FL room and ... Top Features: for sale, short sale, remodeled , Subdivision: Bowe Gardens Sec J 3 , Built in  1962

MLS #557742 | Rockledge Single Family 3 Bedrooms / 1 Bathrooms For Sale, Short Sale Douglas Subd Of Pt Of Lot 2	120 ROCKLEDGE AVE Rockledge, FL 32955
$69,000.00 ($72.00/sqft) Rockledge Single Family For Sale 3 beds, 1 baths, 960 living sqft Price reduced $50,000.00 since 12/27/09 | 1 block from river in historic old Rockledge. Close to Rockledge High School and shopping. Minutes from I95, beaches and Port. - Short Sale Top Features: for sale, short sale , Subdivision: Douglas Subd Of Pt Of Lot 2 , Built in  1955

MLS #554332 | Melbourne Single Family 6 Bedrooms / 6 Bathrooms Pool For Sale, Short Sale Oak Park At Suntree P.u.d.	719 GLENGARRY DR Melbourne, FL 32940
ROLLOVER TO VIEW 4 PHOTOS $518,000.00 ($81.00/sqft) Melbourne Single Family For Sale 6 beds, 6 baths, 6400 living sqft Price reduced $281,000.00 since 11/6/09 | Short Sale Opportunity! One of the largest Mansions in Oak Park. Home lacks TLC, however home is magnificent with center island kitchen with Corian countertops. Volume ceilings throughout. Family room, formal living and dining rooms, large Media ... Top Features: for sale, short sale Has a pool , Subdivision: Oak Park At Suntree P.u.d. , Built in  1993 , Maint Fees: $417.00

MLS #555319 | Melbourne Single Family 3 Bedrooms / 2 Bathrooms For Sale, Short Sale Fountainhead Unit 3	Melbourne, FL 32935
ROLLOVER TO VIEW 12 PHOTOS $119,900.00 ($72.00/sqft) Melbourne Single Family For Sale 3 beds, 2 baths, 1670 living sqft Price reduced $40,000.00 since 11/19/09 | Not a Short Sale! Move in Ready! Spacious living area and a terrific fenced back yard for the whole family including the family s best friend. Quiet neighborhood with easy access to Wickham Road at a stop light intersection. Cozy fireplace and ... Top Features: for sale, short sale , Subdivision: Fountainhead Unit 3 , Maint Fees: $5.00

MLS #544184 | Palm Bay Garden view Single Family 4 Bedrooms / 3 Bathrooms Pool For Sale, Short Sale Forest Glen At Bayside Lakes	161 SE BRANDY CREEK Circle Palm Bay, FL 32909
ROLLOVER TO VIEW 11 PHOTOS $145,000.00 ($64.00/sqft) Palm Bay Single Family For Sale 4 beds, 3 baths, 2278 living sqft Price reduced $42,500.00 since 5/28/10 | Buyer walked 2 days before closing! best bang for your buck in forest glen with new lower price!! put your personal touches on this beautiful 4 bedroom, 3 bath lenar home in highly sought after area of forest glen at bayside lakes. stunning ... Top Features: for sale, short sale , Garden view Has a pool , Subdivision: Forest Glen At Bayside Lakes , Built in  2005 , Maint Fees: $440.00

MLS #559039 | Melbourne Single Family 3 Bedrooms / 2 Bathrooms Model Home, For Sale, Short Sale Eagle Lake	4427 MOUNT CARMEL LN Melbourne, FL 32901
ROLLOVER TO VIEW 12 PHOTOS $115,000.00 ($60.00/sqft) Melbourne Single Family For Sale 3 beds, 2 baths, 1902 living sqft Short sale in Eagle Lake! Beautiful Capri 4 former model home overlooks a scenic wooded area behind the back yard. Open floor plan with cathedral ceilings give this home a spacious feel. Office/den could easily be converted to a fourth bedroom. ... Top Features: model home, for sale, short sale , Subdivision: Eagle Lake , Built in  2001 , Maint Fees: $250.00

MLS #534007 | Malabar Single Family 3 Bedrooms / 2 Bathrooms For Sale, Short Sale E 1/2 Of Ne 1/4 Of Ne 1/4 Of N	2415 CANDY LN Malabar, FL 32950
ROLLOVER TO VIEW 8 PHOTOS $179,900.00 ($74.00/sqft) Malabar Single Family For Sale 3 beds, 2 baths, 2424 living sqft Price reduced $20,090.00 since 4/14/10 | Bank Approved Price!! Amazing home situated on 1.4 acres in desirable Malabar Florida. Bring your horses or just enjoy the country style of living. This 2400+ sq ft home has everything you need to include vaulted ceilings, huge yard, 2 car garage, ... Top Features: for sale, short sale , Subdivision: E 1/2 Of Ne 1/4 Of Ne 1/4 Of N , Built in  2006