Coconut Creek Real Estate, Remax ParkCreek

What is Short Sale? 

A shorts sale occurs when a property is sold and the lender agrees to accept a discounted payoff.   This means that the lender will agree to accept an amount less than what they are owed in order to clear the defaulted loan from their books.  

Why Are The Banks Willing to Accept Short Sales? 

Are the banks crazy to accept such big discounts?   No, not at all. The banks are in the business of making money, not losing money.   There are several reasons why the banks are willing to take such discounts: 

1. Banks do not like excess inventory and bad loans on their books.  Therefore, if they see an opportunity to get rid of the property without a big loss, then they will do it.
2. Lenders know that if the property goes to auction, then they lose more money.
3. If a bank has too many defaulted loans on their portfolio, those can negatively affect their future lending capacity.

 What Does "Deficiency Judgment" Mean to a Seller? 

The deficiency is the balance between what the property is sold for, and the mortgage balance owed.  For example, if the property is sold at $300,000 and the balance owed is $350,000, then there is $50k in deficiency. 

Lately, more and more banks are considering the following action against the homeowner.   

1. they will issue a 1099 form to the homeowner for the deficiency making the amount forgiven or discounted income that the homeowner must report
2. they may seek a court ordered judgment for the deficiency
3. they may request the homeowner to agree to a promissory note for the deficiency 

It is estimated that as many as 60%-70% of short sales do not get accepted.   Working with a Realtor® that has the knowledge, skill and experience on how to successfully close on a short sale transaction is crucial to the sale of the property.   

If you are a Coconut Creek homeowner and you are faced with a foreclosure, you have no hope of selling your home without a Short Sale.

If you are a Buyer or an Investor and want to purchase a real estate property in the city of Coconut Creek at great SAVINGS, then consider buying a property offered as a short sale because all of these homes can be bought at current market value or less.  In other words, the Seller's loss can be your gain!

To Begin Your Search for the Perfect Short Sale Home or to Short Sell Your Home in the Township of Coconut Creek, Begin Your Journey by Calling Silva Stoyanova at (954) 673-4402.