Cape Coral Real Estate, Short Sales explained
If you have ever been involved with Cape Coral real estate, you have probably come across the term, “Short Sale”. Before a house goes into “foreclosure”, creditors and owners will try to sell the house by means of a Short Sale. What that means is that the creditor waives a portion of what is owed and the homeowner is given the opportunity to offer the house at an especially favorable selling price. The idea behind the short sale is to avoid having the house enter into foreclosure proceedings.
Cape Coral Real Estate at Favorable Prices
Most of the time, the Short Sale offers many advantages to both the homeowner and the lender (bank). It usually leaves the homeowner in better financial condition and he does not lose as many points on his credit rating which is important for his future financial planning. The lender typically gets the “bad” mortgage quickly off its books and can close the case relatively quickly. Short sales result mostly in boom times when houses that were purchased for say, US$ 400,000 have a value today of only perhaps US$ 250,000. For the owner, the value of his real estate has been reduced by $150,000 although the balance of his loan is perhaps still at $300,000. The coverage of his loan by his property is therefore too “short”.
As a rule, these homes are offered for sale well below market price so that they do not have to compete with conventionally offered real estate. In a short sale, you can certainly get a “bargain” but be careful that the bank is in agreement with the price being offered and that the offer is not subject to housing “bubble” conditions. If you are interested, we will gladly assist you and will send you further information and/or offers. Short sales can often be very long and drawn out affairs and you must decide ahead of time whether the necessary time is available or if you will want to move into your new house more quickly.