Short sales in South Florida have increased to a great deal as compared to foreclosures to save home mortgage. This is a good time to be a real estate agent in South Florida if you specialize in short sale. In the year 2010 there was a 49% increase in short sales as compared to the previous year. Lenders in the mortgage market in Florida are finding that agreeing to short sales is much more viable than facing the costs of foreclosure. A short sale happens when a lender agrees to accept less than the total balance amount of the mortgage as a result of hardships that the borrower is facing. If you are a lender, the negotiations regarding any short sale you do would be handled by your Loss mitigation department. The troubled homeowner will hire a licensed realtor for listing, marketing and finally selling his property at its current market price. Since you would be receiving an amount that is less than what is owed to you, you need to give your approval before the short sale can close.
Usually a short sale is done to prevent the process of foreclosure. You, as a lender should approve a short sale that is well planned, well prepared and well presented in order to avoid the costs of a foreclosure which can reach up to tens of thousands of dollars. When it comes to a homeowner, short sale is very advantageous too. There are various benefits that a short sale brings such as avoiding the cumbersome and costly proceedings of a foreclosure, avoiding the devastating impact that a foreclosure would have on your credit history and the capacity to maintain your current employment and obtain future employment.
Short sale times are improving a great deal, although not in an extremely fast pace. According to CondoVultures, a Florida-based real estate consultant firm had reported that the average number of short sales in South Florida took 195 days in 2010 and 203 days in 2009. Another added motivator for servicers to go for short sales instead of foreclosures comes from the Florida Supreme Court. Before the collapse of the housing market a foreclosure in Florida took about 6 months and cost around $40,000 which included unpaid taxes, attorney fees and property damage. With such rising numbers of foreclosures in Florida, the Supreme Court of the state implemented a program that stretched the foreclosure to a time which is as much as 18 months.
Thus such action by the Florida Supreme Court diverted attention towards short sale although it can be a complex and time consuming action requiring detailed workings. it is being hoped that the process of short sales will spread to other parts of the country through trickle effect.