Short Sale Listings – Panama City Homes by Remy Cooksey

Reasons  a Bank  Accept  a Short Sale?

Short sale is when the bank accepts a sales price  lower than the outstanding loan balance.     For a real estate sale to be considered a short sale,  a non-payment  for the monthly mortgage payment has occurred.  When the borrower continuously misses making payments,  the lender files a legal action called “les pendes” toward the borrower of the subject property.   This usually signifies that the bank is in the process of foreclosing the property.    When the property sells  on a short sale,  the lender usually gets paid earlier and saves legal fees and other expenses such as taxes, HOA fees,  repair and maintenance, and insurance.

For most sellers, this is the most confusing part.

The borrower’s initial behavior is to attempt to sell the property by listing it with a real estate broker. Keep in mind that the sellers are probably under tremendous financial stress. It is important that the seller knows that when an offer comes in, having all the necessary documents on hand speeds up the the bank’s decision to whether either accept or counter the offer. Knowing what information the lenders would need from the sellers is a plus. The lenders usually asks the borrower to provide a hardship letter, two to three months of bank statements, possibly a copy of their last pay stub, two years tax returns, and a Letter of Authorization giving the agent permission to obtain information pertaining to the loan.

Contact me if you have any questions about or are considering a short sale or want to look over the available foreclosures in here on Panama City Beach.

 

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    Panama City Beach, FL 32413