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Gary Brey

Living in Sarasota

07-02-09
Gary Brey

Living in and around Sarasota

Explore Sarasota Florida, the ever-evolving Florida destination. Sporting the finest beaches in the world, including Siesta Key, Lido Key, Anna Marie Island, Longboat Key & Lakewood Ranch, Sarasota is a small community rich in culture, fine restaurants, and the wonderful Sarasota Florida climate.

Located on the West coast of Florida, 45 miles south of Tampa, Sarasota Florida real estate offers something for everyone. From single family homes on the Sarasota mainland, to condominiums on Siesta Key Longboat Key and Lido Key; Anna Marie Island; New Home construction in Lakewood Ranch & Manatee County; Old Florida charm in downtown Sarasota; Gated Communities and golf course settings - Sarasota has it all... Come to Sarasota - You have earned it!

Sarasota Florida is known as the "crown jewel" of the South. The pure white crystal sand beaches of the Sarasota barrier islands of Siesta Key, Lido Key, Anna Marie Island, Holmes Beach and Longboat Key, a booming economic climate and the overall Sarasota Florida real estate community attracts tourists from all over the world. Every season offers a totally unique experience! Make your plans now to visit the wonderful Sarasota area.

Short Sales

06-30-09
Gary Brey

A real estate short sale takes place when the sales price is less than the amount of all the liens against the property. It would include anyone who has place a lien on the property such as a Home Equity Loan or line of credit.

Here is one scenario. Let´s say Bob want to sell his house. He owes more than it is worth and he has lost his job and cannot afford to make the payments any longer. His realtor advises him he has 3 options. He can let the property go into foreclosure but this will stay on his credit record for a long time which is not a desired result. He can give his lender a deed in lieu of foreclosure but this too could negatively impact him. Finally, assuming the lien holders agree, he can try and sell his property "short". In a short sale the Borrower/Seller receives no money.

Why would a lender sell short? Because it is costly to foreclose. In some cases it could be several thousands of dollars with attorney fees, court costs etc. Also the property still has to be sold. A short sale can be a win/win for everyone. The lender recoups more money than they would in foreclosure. The seller/borrower/owner can escape without a record of foreclosure on their credit report. The Buyer can acquire a property at a rock bottom price.

Here is a problem with short sales. They take time. If the Buyer is in a hurry & needs a property now, most likely a short sale will not meet their needs. As they say time takes time and in the case of short sales this is very true. I have a short sale transaction still trying to close after 10 months which is the extreme.

They take a long time because of the current economic climate. The lenders are swamped. What used to be done in 45 days can now take several months depending on the lender. Bank of America is the slowest. Most sales require 1 or 2 BPO´s (a Broker´s Price Opinion) and maybe an appraisal to confirm the current value of the property in today´s market. Then the investor3;the institution who loaned the money in the first place needs to approve the sale as well. The investor can be a bank or a loan servicing company or any number of entities.

Patience as I stated will go a long way to keeping one´s sanity during a short sale.
Always consult an attorney with all legal concerns with this process.