When the house for sale is "short term sale", what does it mean?
In recent years, the popularity of "short sale · home" has increased the presence in the market, so in the conversation with sufficient home buyers and sellers the technical term "short sale" citizen is "short sale" Determine how unfamiliar with the definition. I also have confidence in being a clear, patient-oriented communicator with the client to ensure comfort during the normal stressful home purchase / sell process, without further explanation I am somewhat disliked using such terminology.
I have come to the explanation as to why I decided to write this article in a familiar language with the intention of providing a clarification targeted to the average home buyer who is often threatened by house purchasing experience As well as the current abnormal situation such as "short sales" and "foreclosure", real estate transactions are also prevalent in the market.
* o Q: If the selling house is "short term sale", what does it mean?
A house listed for sale is provided for sale with a listing price that is less than the amount that the house that is offered for sale actually pays to the loan to which the owner / seller of the house is attached If you are, go home to be considered a "short-term sale house". For example, let's say that you purchased two beautiful 3-bedroom pool pool homes in 2005 and that price was $ 300,000 (then fair market value) You set 10% of the purchase price as your prepayment I paid, I financed a 90% ($ 270,000) reminder to complete the acquisition from your bank. I will fast forward now and arrive here in 2009.
Just this week we are relocating from Florida to California in relation to work, so we learn that we need to sell your house quickly. At the moment we decide to call Realtor / Sales Associate to overcome the first panic and get consultation about the sale of your house. When sitting in the table of your dining room with your spouse and real estate agent, your estate agent in a quiet and concerned attitude, to determine the price your home will probably sell today We will review comparable market analysis. It is fortunate to sell your beautiful 3 bedroom, 2 baths, pool house at $ 150,000 in today's market. Your immediate reaction is "for what it is possible?" (Or possibly more colorful), due to the fact that as much as $ 200,000 remains in the principal remaining in the bank At least $ 50,000 to fork to the bank at closing without considering other closing costs! What are you going to do?
Your choices seem to have no choice but to relocate to the place you assigned by your employer, but what options do you actually have? Fortunately, the seller in this position has several options. The solution I've seen most often is to pick up the remaining $ 50,000 check and pay the amount borrowed to the bank / third party or if the seller can not afford to pay that difference at the moment, Only under certain circumstances, banks / third parties issue or agree on a separate arrangement to notify the deficiencies to be repaid after the sale of real estate, and from the responsibilities of all or part of the deficit to the seller . Meanwhile, the buyer can purchase the house with the current market value of $ 150,000, even though he still had a $ 200,000 loan before selling.
* o Q: Who can sell your house? Who will pay your real estate broker and other expenses?
A: A licensed real estate broker can, in most cases, sell his house as a short-term sale if the individual situation meets the necessary standards. This is mainly determined for each individual, usually one or more bank (s). Your real estate associate / broker prepares the appropriate documents to submit to the necessary third parties to review your situation, analyze it and approve to sell your home if possible, And / short sale. Payment for services offered by your real estate broker, your real estate lawyer and your CPA may be paid from time to time by a third party holding a loan in your home.
* o Q: Can a second house investor / owner sell real estate as a short term sale?
A: If the answer is not too deep, it is under certain circumstances.
Since the situation of each seller is unique, the local real estate associate / real estate appraiser who has the experience and knowledge of the lacking area will evaluate the individual situation, and for legal and / or tax advice Please use CPA.
If you are wondering if the short term sale is an option for you, asking with reference to Florida real estate or asking for additional questions or comments, email Jamie @ jamiesellsstpete.com Please contact us. As a real estate agent / sales associate with RE / MAX Metro in St. Petersburg, Florida, we will answer questions about Florida specific real estate.
The purpose of this article is to provide a simple non-technical summary form description related to a concise explanation that is easy to understand the definition of short-term sale on home sales in Florida and Florida real estate, advice. For legal or tax questions, please consult attorney or CPA respectively.
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