Real Estate News for North Pinellas County

Archive for the 'short sales' Category

Pinellas County short sales require patience and a good agent

real-estate-graph

Pinellas County short sales vs. foreclosures, last 10 months

  

   If you own a property in Pinellas County that you would like to sell, but you owe more on it than it’s worth, you may have thought about doing a short sale.
     A couple of years ago very few people had even heard the term “short sale.” A short sale is where the net proceeds from the sale of the property are not sufficient to cover the mortgage or mortgages and assorted other closing costs –homeowner association fees or property taxes or real estate commissions.
     Although the seller is definitely a party to the transaction, the sale itself requires third party or lender approval.  That approval is based on current market value that the lender determines once an offer is received on the property, along with other documentation provided by the seller as to need and eligibility for the short sale.
     Here’s the biggest question that every seller asks regarding short sales: Who pays all the fees associated with the sale of the property?
     The answer: The lender!
     The process can be lengthy and tedious; to date, the lenders have been slow to respond, but new incentives by the U.S. Treasury Department have caused lenders to reconsider, especially in instances where there may be multiple liens involved.
     Keep in mind that there are other factors involved in doing a short sale, including credit and tax implications. Short sales will not be the answer for everyone.
     Sometimes refinancing alone will work. The Obama Administration is working with lenders to make refinance requirements more reasonable for the current market place.
     Loan modifications are another possibility, and they are growing in popularity and availability.  Finally, foreclosure may be your best or only option.  You need accountants and attorneys to give you that advice, ultimately.
     Lenders know it is in their interest to negotiate short sales and loan modifications rather than allow more foreclosures to take place.
     The graph from the Pinellas Realtor Organization for April shows that bank owned properties are selling for far less than pre-foreclosed properties or short sales.
     Know that you have options if you are thinking about selling, but inaction should not be one of them.
     I have spoken about selling a short sale property, but buying a short sale has its advantages, a lower- than- market –price being the most obvious. But conditions and updates on a short sale property compared to a foreclosure can be significant.
     Short sales for buyers can be arduous.  Finding an agent who is experienced, patient, and willing to lead sellers and buyers through this complicated process is critical.  It can truly make the difference between a successful outcome and being just another one of those short sale horror stories.
     I can help you through the short sale process, whether you are a homeowner interested in selling or a buyer interested in making a short sale offer.
     To explore the possibilities, call me at 727-643-7100, or email me at [email protected]. And make sure you keep visiting www.pinellasnewsboy.com. There’s bound to be new short sale information coming on a regular basis.

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