“Believe that life is worth living and your belief will help create the fact.” – William James
First of all, a short sale is not short! For the general public, that is a misnomer, but for a bank that is an accurate statement. You see, a short sale falls short of what is owed. For example: in 2005 you purchased a lovely 4 bedroom, 3 bath home on 10 acres for $425,000.00. Suddenly this year you lost your job and decided it was best to unload the home and go back and live with mom and dad. You hired an appraiser – good move on your part to do that up front – and couldn’t believe what you read when you saw the appraiser’s report. “It’s worth how much now?” Say it isn’t so. There isn’t enough equity in the home to do anything with and your thinking -“How am I supposed to come up with over $125,000.00 to give to the bank, just so I can sell?”.
You can negotiate you loan and try to get the payments lowered or you can try to sell for as much as you can and hope the bank will not hold you responsible for the deficiency. Lot’s of luck! Nowadays most banks want everything they can get and they will bleed you dry. Have you seen all the new banks going up around town. Not just little structures but Big, MONUMENTAL, BUILDINGS.
I often wonder if all the money they make goes back into building these large structures.
Anyway, some banks are trying to help the homeowners – a little late, but I guess it’s better late than never. These banks are giving incentives to the homeowner to sell. The banks are not just asking anyone to sell, they are contacting people who are in imminent danger of losing their home to foreclosure. These incentives are:
- Funds for relocating in the amount of a percentage of your unpaid balance.
- Bank paid for appraisal
- Closing costs paid by the bank
- No deficiency judgement for the unpaid balance of the mortgage.
Pretty sweet deal, if I do say so myself. This is a great deal not just for the seller, but also for the buyer because the prices are very competitive. I have 4 of these short sales myself. The only catch is they go on the market for 120 days and if they don’t sell in that amount of time they get foreclosed on.
So, if you know anyone looking for a great deal on a well-kept home in Gainesville, FL, please contact me utilizing the “Contact me” sheet on the tab above.