The Real Estate Market currently is responding to the housing market that over the last few years has declined to about what houses were selling for in 2003-2004. Of course, that depends on the area but the focus here is the Florida Panhandle and those areas that skirt the Emerald Coast. The Buyers that bought in 2005-2006 bought their property at the height of the market. Many did 80/20 loans or 105% loans and can not sell the property now for what they owe on it.
A Short Sale is a Mortgage Company or Bank accepting less than what is owed on the property so the Buyer can relinquish the Note. Many times the Buyer will not take as hard a hit on his credit than if the property went into Foreclosure and if they can negotiate a paid in full from the Mortgage Company then the Buyer can many times qualify to buy a house 24 months later. If the property goes to foreclosure it costs the Bank between $25,000 to $40,000 to foreclose on the property. You can see why Short Selling the Property can many times be the best option for both.
Needless to say this process is a little more involved than what it appears and a qualified agent can get you through this process. Short sales are not standardized but Congress is working on a plan to do just that. Many times a Short Sale falls through because the Buyer does not understand the Process and many times neither does the agent so it is not communicated what needs to occur.
The advantage to a Buyer is many times you can get an awesome deal because the Bank just wants to "get the file' off their desk and they have so many the pressure is there to move the properties. Our Team has worked both sides of these types of transactions and understand the process. We can represent you and get the deal closed.
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