Short Sales...What are they?

One of most recent developments I have seen lately is with "short sales." Mortgage companies have finally gotten wise to the fact that foreclosure doesn't typically result in a good outcome for either the owner or the company. With the recent glut of mortgages in trouble as well as the continued high number of homes for sale in the Bradenton real estate market, we have seen many more "short sales" coming up on the local MLS.

Basically a short sale is a sale in which the bank is not going to receive a full payoff on the loan when it is sold. Since so many home owners are now upside down in their loan payoff to home values, it is a good option for those who qualify. Basically in order to qualify for such a sale a home owner needs the following situation:

1. Home value is lower than mortgage payoff.
2. Home owner is unable to continue paying mortgage due to employment issues or other financial hardships.

The short sale is usually preferred by lenders to a foreclosure. If you can have an owner turn over a property in relatively good condition to a new owner it saves the bank a lot of time and expense. The short sale will come up on credit reports, but at this point it doesn't appear that it will affect your credit as much as an actual foreclosure would.

If you believe that you would qualify for a short sale, I would recommend calling your mortgage company about this potential option as well as speaking with a Realtor about the process. Any sales contracts would need to be approved by the bank, including commission amounts and final sales price.

Refreshing Vacation and Bradenton Real Estate Update

I have just returned from a quick family vacation to Ontario, Canada. While there we were able to enjoy a family reunion in Richmond Hill and spend a week at the family cottage in Parry Sound. The weather was perfect...highs in the mid to upper 70's and sunny weather for the most part. The fish were sparse, but we did manage to catch a few large mouth bass. My kids learned to water ski this year which was quite exciting (and nail biting) to watch. I even took a couple of spins on the skis for old times sake, of course ending in various airborne dismounts. We returned in time for one of our famous Florida thunderstorms and a temperature of around 90 degrees. Regardless, it is always a pleasure to drive over the Sunshine Skyway and see the familiar sights of Manatee County.

I am now back feeling refreshed and relaxed. The market here in Bradenton, Florida remains down. Just before we left for vacation, the latest news came in that the median price in Manatee County had fallen another $30,000. This didn't come as a surprise to agents who are active in the market. The current amount of homes on the market remains very high and I have been seeing a lot of homes marked "short sale" or "pre-foreclosure" which means these owners are having to sell under duress. This means the prices are well under current market value in order to achieve a quick sale ( I will address short sales in the next few days since they are so common now). These sales, although necessary, further drop the values of the homes around them due to the fact that other owners need to also drop their prices if they want to compete.

Have a great day... Deb