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Foreclosures and short sales have reached record levels nationwide. Many homeowners have been squeezed financially due to recent economic conditions. Whether the reason to give up a property is due to income loss and being unable to make mortgage payments, or the homeowner realizes that the property is significantly worth less than what's owed, it's the same end result. However, there are many great deals currently in the market for savvy buyers and real estate investors or speculators. Advantage of a Short Sale Properties that haven't progressed to the point of foreclosure are known as short sales. These are homes valued at an amount that is much less than the amount of the mortgage balance. Subsequently they are sold for far less and can free the homeowner from debt of the property. 1. A short sale allows you to stop the foreclosure and get a fresh start 2. Seller retains some dignity in knowing they sold their home and relives the stress of being in foreclosure 3. No mortgage payments to make 4. No tax to pay on the unpaid balance through Dec. 31 2012 5. May have a less negative affect on Sellers credit rating than allowing it to foreclose. 6. Buys the Seller time may not have to move out of your home until the close of escrow. 7. Seller will be eligible, under Fannie Mae guidelines, to buy another home in 2 years instead of 5 to 7 years. 8. If your credit report does not reflect a 60-day and late payments, under Fannie Mae guidelines, you will be eligible to buy another home immediately. 9. Buyer is able to purchase a property below market value resulting in more house for the money Understanding Foreclosure A foreclosure involves a bank owned property and typically is a more straightforward and faster purchase. There can be several hazards to purchasing foreclosure properties. For one, they are typically sold “as is” and therefore without any option to have problems repaired prior to taking possession. Many foreclosed homes are sometimes auctioned off without the opportunity to have the property inspected. As a result, it's sometimes difficult to get an accurate grasp of how much the home is worth. Profiting from Short Sales Investors or individuals considering the purchase of a short sale property will find the process often profitable. There have been new programs put in place that help accelerate everything and provide homeowners with certain cash incentives such as moving expenses. This is to encourage them to select this option as opposed to simply abandoning the property. Therefore, if you have the patience and resources, you can find plenty of great deals available. Consult with a Professional Whether you are in the market to purchase or want to sell a property, the best way to avoid unexpected expenses is to engage an experienced realtor who understands foreclosures and short sales. A skilled and knowledgeable real estate agent working on your side in this type of endeavor can be essential to making certain your investment progresses as planned without unanticipated pitfalls. We help buyers find exactly the right property they need, whether as an investment or for other reasons. Take advantage of our short sale and foreclosure listings by visiting http://www.premierfloridaproperties.com today. Be sure and check out our commercial properties and rental homes as well.
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