Short Sale Process
Frequently Asked Questions About Florida Short Sales
There are many reasons why you may be looking to sell your home. You may not be able to afford it due to income loss, you may be moving out of the area for employment, or you may have outgrown your home. Unfortunately, many people are finding that their homes are not worth what they paid for them due to the housing crash. If you need to sell your home, but owe more than it is worth, you may be considering a short sale. Here are some frequently asked questions you may have about this process.
What Is a Short Sale?
A short sale is when you are underwater on your home, or owe more than it is worth, and you end up putting it up for sale for less than what you owe on the home. This type of sale has to be approved by the lending institution.
What Can You Expect During a Short Sale?
The Florida short sale process can typically move slowly for homeowners who are looking to be free from the home. Florida is a destination that is heavily desired to live in for various reasons, including theme parks, beaches and great weather. Because of this, there are often multiple bids on short sale homes. Once the bids are submitted, the lending institution will look at the bids and possibly counter the one they are interested in. Typically, the entire process can take several months.
What Are the Risks of Selling Your Home Via a Short Sale?
Many people may want to know what to expect during a short sale. You can expect that the lien holders on the home will be actively making sure they get the payments that are owed to them and will try to get the most they can. Just like buying or selling any other home, there are risks of a short sale. You may not get a significant offer to pay back your debts, and this may cause you to still be on the hook for the loans or monies that are owed. If the lender writes off the loss, you may be held accountable for the loss when tax season rolls around.
How Long Does a Short Sale Take?
A short sale can be a long process as the institution that finances the house has the final say in whether an offer will be accepted. The lending institution will also decide on the final price due to paying back the liens so the house may be sold for what the bank may get later for it. There is no exact time frame in a short sale process. Some lending institutions may approve your offer within weeks, while others may take months. Your Team Dynamo realtor can help you determine how long your process should take based on your situation.
Is a Short Sale Worth it?
You may ask yourself the question, "How does a short sale work in Florida?" The process of buying a short sale in Florida is the about the same as any other state in the nation. It takes a lot of negotiating from the lender and the person buying a short sale property. The lender will agree to the short sale when the lien holders agree to remove the liens off of the property in order for the lender to sell the property and still guarantee a loan with the new buyer, so they recoup as much money as possible. If you are underwater and need to move, the real estate short sale process may be your only option.
Contact a Gainesville Realtor at Team Dynamo today to discuss your situation and find out whether a short sale is right for you.