Foreclosures in Florida Information

Buying Foreclosures, Short Sales, REOs

I hope you find the following information on short sales and foreclosures to be helpful. For additional information, you can visit my website page on Foreclosures & Short Sales . If there is anything more that I can do for you, please don't hesitate to contact me.

There are many things to consider when buying a short sale or foreclosure property.  Here are some questions and answers, observations and opinions based on years of experience as a South Florida Realtor specializing in short sales and foreclosures:

Q. Which are better for buyers, short sales or foreclosures?
 A. When comparing short sales vs. foreclosures, there are a number of factors to consider. Short sales usually take longer and are more uncertain. The asking price is not always the price the seller's lender will accept. More on these points in the answers below. Foreclosures often have multiple offers and also often will sell for more than the full list price.
Q. How long do short sales take?
A. If you're in a hurry, you probably don't want a short sale. While short sales in South Florida are moving more quickly overall now than they were a few years ago, delays are still common.

Q. Is a short sale a sure thing?
A. There is always more uncertainty in a short sale than with a private sale. The short sale approval of price and terms by one or more lenders, and usually the investor(s) who bought the note(s) from the lender(s), will be required before the short sale can move forward.

Q. I made a full price offer on a short sale. Will my offer on the short sale get approved?
A. On many of my short sale listings, I am receiving multiple offers. I do a lot of research to list my short sales at market price, so they get a lot of activity. Lenders are having appraisals and BPOs (broker professional opinions) done to make sure that they are getting market value for short sales and foreclosures. They will sometimes make a counter offer above the full list price.

Q. What does "approved short sale" mean?
A. When you see a short sale listing that says is approved, it means that the lender has either set a price or made a counter offer. Those prices often expire pretty quickly, and don't always transfer to a new buyer when a transaction falls through.

Q. Why do short sales often fall through?
A. Often, the first buyer in a short sale will lose patience before the lenders and investors review the short sale hardship package and respond to the offer. Sometimes, the buyer's financing falls through. Typically, by the second or third buyer, the price is "approved" (see above) and the process moves more quickly.   

Q. What does "REO" stand for? What is an REO? 
A. REO is an acronym for Real Estate Owned. Lenders use this term to refer to properties that they possess through foreclosure. Another common term is bank-owned foreclosure.  
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