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WHAT IS A SHORT SALE? (PRE FORECLOSURES)
A short sale is negotiating with a lender to accept an amount less than what is owed to them by the current mortgage holder.
Usually, the seller is a few months behind in mortgage payments already. The bank may have filed a "Lis Pendis" on the property to record the delinquency in public record.
The real estate agent has suggested the list price however there is no guarantee that the bank will approve that number. When a buyer makes an offer the bank will send an appraiser or realtor out to give an opinion of value. This will determine if the bank will accept, reject or counter the buyer's offer.
Although the term "short sale" is used it usually takes longer to get an answer and to close a transaction. The time it takes to get an answer on your offer varies. I have seen them answer in less than a week or as long as two months. So you have to have the time to purchase one of these types of properties. From the time you are in agreement with the bank you can expect to close in 30-45 days depending on title work and the financing process.
Also keep in mind if there are any second mortgages or liens. They may have to be negotiated as well.
In summary buyers have an opportunity to get a deal however must have patience to go through the bank's process.
Pre foreclosures are about 25% of the listings currently active in the MLS. There have been 73 close via the mls since June 1st 2007 (as of 01/26/08).
For more information or if you have any questions feel free to give me a call.
Sincerely,
Darla Mcintosh
239-229-7202.
**Information from the Greater Ft. Myers & the Beach MLS and is subject to change.
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