Jacksonville Short Sales Defined
A Jacksonville short sale is when the seller owes more on the house than it is worth. When this happens, the seller gets a contract for today’s fair market value of the property. The contract is a legally binding contract subject to lienholder approval. This means if the lienholder does not approval the sale within the terms defined by the contract, the parties can walk away.
A Jacksonville short sale is not by definition debt forgiveness. In the process of the short sale the debt may, however, be forgiven by the investor. This will be part of the negotiation between the seller and their lender.
What You Need to Know Before You Buy a Jacksonville Short Sale
Buying a Jacksonville short sale property can be a great way to get the best deal! There is a lot of fear that surrounds short sale properties, much of it is put out there by uneducated real estate professionals and lenders. Because it is unpredictable and there is no guarantee that the transaction will go through, some will try to discourage you.
The truth is that Jacksonville short sales ARE harder than a normal real estate transaction. Because of this, many agents and lenders routinely talk buyers out of looking at or pursuing a short sale property.
Do You Have What it Takes to Buy a Jacksonville Short Sale?
Some buyers SHOULD be talked out of buying a short sale. That is because they simply do not have what it takes to stick in there. However, this is a disservice to you if you are not under strict time constraints and are flexible. If you have patience and understand that the process could draw out for months, then a short sale may be right for you. While the buyer and seller negotiate and sign the contract, there is a clause put in that the contract is dependent upon bank approval.
Jacksonville Short Sales and Timing
You should not go into a short sale if you have to be moved into a home within a month. We recommend you plan on allowing two to three months for the transaction to go through. Do they always take that long? No! However, you need to set your expectations correctly going in and be committed to seeing things through. You should not be upset if there is no quick response from the bank. This does not mean it will not be approved. If you can not reasonably wait 60-90 days to know for sure that the bank (or banks, as is commonly the case) is going to release the liens of the seller, you should not try to buy a short sale.
We’ve seen answers from banks come in within a week of submitting an offer. At the same time, we’ve seen it take a month for the bank to even assign a loss mitigation specialist after they have received the contract. A lot of it depends on the case load of the loss mitigation department of the particular bank as well as their procedures. The biggest thing to remember is that short sales are not routine and predictable…and no two are alike, even with the same bank.
Are Jacksonville Short Sales Good Deals?
We see Jacksonville short sales as the perfect scenario for getting a great Jacksonville real estate bargain. Why? Because when the lender is evaluating whether to allow the lien release, what is owed by the seller is irrelevant. What matters is the fair market value of the home. Most lenders will take a net amount that is a reasonable amount under fair market value at this point. That is because they will be saving a tremendous amount on the foreclosure process if they let the home be sold rather than having to foreclose. In this environment no bank wants another home on their books. At the same time, they are more than willing to foreclose if the short sale contract is not reasonable and within their margin of acceptance.
We love helping buyers with Jacksonville short sale properties. It is very rewarding, because it’s a win for the buyer and a win for the seller. For the buyer it is less risky than a foreclosure property, and often a better deal. The pr0perty is usually in a much better condition because the current owner is usually still living in the home and taking care of it. We can get a seller disclosure form filled out by the current seller to let you know what’s what with the property. With foreclosures you don’t have any history on the home.