What is a short Sale? Fort Walton Beach Short Sale Information
There are several homes in Fort Walton Beach that are listed as short sales. Many Realtors make the assumption that buyers and sellers understand the term short sale. As a Fort Walton Beach Realtor, I can say that over the past year, the number one question I am asked is “What is a Short Sale?”
A short sale allows a seller to sell their home when they owe more than the home is worth. The seller is “short” the funds necessary to sell the home in the conventional manner. In order for a short sale to be successful, the seller’s mortgage company must agree to accept a payoff that is less than the seller owes. In most cases the shortage of funds is written off by the mortgage company, and the seller will have no further liability. In some cases the mortgage company may require the seller to promise to pay back the shortage. In this case the lien on the home is released, and the new loan is unsecured.
Buyers can benefit from purchasing a short sale, because usually short sales can be purchased at a discounted price. The disadvantage to making an offer on a short sale is time. Buyers may have to wait several months before the mortgage company responds to their offer. The mortgage company may also consider more than one offer. Many buyers become frustrated after waiting several months with no answer, and withdraw their offers. If your closing time lines are flexible, this long process can add up to a very good deal. The patient bird gets the worm!
Buyers can also possibly lessen their wait times by choosing short sale homes that already have an offer. Even though you are in competition for the home, the long process has already been started by another party. It is also a good chance that the first buyer may withdraw. Buyers may also expect more wait time for homes that have more than one mortgage.
Sellers can help the short sale process move more quickly. Some mortgage companies will pre-approve a seller’s eligibility for a short sale. In these cases it is extremely important that the seller start this process before they receive an offer on their home. Sellers usually have to provide 1-2 years of their tax returns, current financial information, and the reason they are selling their home.
If you want more information on buying or selling a short sale home in the Fort Walton Beach, Destin, Navarre, Mary Esther, or Niceville Florida area, contact me today! 850-685-8374 Terri@Century21Wimco.com.

