Santa Rosa Beach Short Sales

If you find a great short sale deal in the Santa Rosa Beach market remember a few things before you proceed in making any decisions on the property. If you are new to real estate and foreclosures in particular it’s best to consult a realtor with experience in the short sale foreclosure process. Though short sales are a type of foreclosure they have their own set of rules that can make the process complicated and if you lack information you’re bound to lose money.

Short sales offer an attractive below market price for homes, condominiums and property lots that gain the interest of investors who want to turn the property around a make a quick profit. Likewise banks and mortgage lenders are eager to unload the property hence the short sale. But finding the right balance between what you’re willing to pay and what the bank thinks is fair is a tricky process.

No matter what you are looking to purchase, be it a duplex home or apartment condo, it’s nothing without the deed. Many times investors get a verbal agreement and sometimes even a signed contract regarding the sale of a home or condo only to find out months later that the deed never changed hands and legally they don’t really own the home because they don’t posses the deed to the land it sits on. Some cry foul when this technicality is invoked but that’s the business and knowing that before you begin rehabilitation and renovation on a recently purchased piece of property that may not be entirely yours.

When dealing with banks and mortgage lenders it is best to refer to yourself as the buyer or someone representing the homeowner and request “short sales” or “workout” package. These documents will explain all the steps you need to take in order to manage a successful short sale. Many realtors will tell you banker can tell when you are new to foreclosures and will most likely reject your offer because it is lacks the necessary components to successfully complete the sale. Banks are eager to unload certain properties but not if it’s going to lose them money in the long run. When you present yourself as a knowledgeable business person who has done their research banks will take you a lot more seriously.

Banks and lenders will require certain documentation associated with the real estate transaction including bank statements of the seller, pay stubs, income statements and what’s called a “hardship letter”, a document explaining why a homeowner can no longer make mortgage payments. Wasting time in responding to these requests will quickly disqualify you as a buyer so know what the lender wants in advance and have several copies along with the original ready for smoother negotiations.

Another factor that will play into a short sale is the BPO, or broker’s price opinion. This is nothing more than a licensed realtor’s professional opinion of what a particular home is worth. However, as a potential buyer you will want this BPO to come in as low as possible to make the deal profitable. The BPO will include local and regional real estate market information, neighborhood analysis and comparable properties that have recently sold and the closing prices.