Not long ago, the term "short sales" was a relatively unheard of term in the real
estate market. Now they are as mainstream as a traditional real estate sale.
What is a short sale?
A short sale is when a seller attempts to sell the property for less than what they own on the property. Some lenders will consider a short sale of the property if certain criteria are met. Important factors to consider when purchasing a short sale listing are:
Has the lender approved a short sale process for the property? This is an important question. Many sellers today are advertising their property as a short sale listing when in fact they have no idea whether their lender will actually accept a short sale process for the property.
Is there a window for submitting offers? Many times, a lender will specify a time period for when they are accepting offers for the property. It is not unusual for lenders to accept multiple offers during this time.
Are there other offers on the property? The listing agent may or may not be forthcoming with this answer, but if they do answer, it may give you an idea of how much competition you are facing for the property.
Are you willing to wait through the process? If you are in need of moving quickly, a short sale circumstance is probably not going to be the best route for you. The short sale process can be long and exhausting and will require a lot of patience from both you and your Realtor.
Foreclosed Properties (REO)
Bank owned properties, also know as REO's have begun to appear across the nation and the Florida Keys have been no exception.
REO stands for Real Estate Owned and it refers to real estate property that was previously a security for a mortgage loan. The previous owner defaulted on the loan and the lending institution foreclosed on the owner and took ownership of the property.