Everyone comes out ahead in a Short Sale!
Sellers: Avoid the F word…..Foreclosure! Sellers get a respectable way out of a home they can no longer afford or a home they are being relocated from and can’t afford to rent it out. Don’t be an upside down, reluctant landlord who is subsidizing the rent to make up enough for the mortgage payment….that’s an inevitable train wreck happening sooner than later!
Buyers: Get a home in much better condition. It’s a known fact that bank owned, Foreclosed homes have usually been sitting with NO AC for months and sometimes years. The yard is a mess, the bug situation is a mess, and the homes are a breeding ground for the big M word….MOLD. Short sale homes are lived in and cared for, costing far less out of pocket expenses to bring the house up to standards.
Banks: 24% higher return on a short sale home vs a foreclosed home. In other words, the banks make a LOT more money when they agree to a short sale vs foreclosing on the property and selling it off some years later. Check out the study on Short Sales are better for Banks than Foreclosure. Some banks are even giving cash bonuses for sellers who agree to short sale! Maybe the banks are finally figuring it out?
It still baffles me as to why short sales take SOOOO long! I don’t think the banks are purposely taking a long time on short sales in order to discourage them. I don’t believe the banks are taking so long in order to penalize the home seller by having more negative hits on their credit for “late pays”. I think it’s just a completely overloaded system.
Either way, Short Sales in Jacksonville FL will be around for quite some time! With meager signs of home price declines barely starting to slow, almost half the city is upside down in their mortgage. Values have to get back to 2006 levels before we are nearly completely out of the woods. How long will that take? Short answer: YEARS!
If you need information on Short Sale Info or go here for How to Short Sale, info on Jacksonville Real Estate, or need to consult with a Professional Jacksonville REALTOR to list and sell your house, contact Brad Officer.