Selling Property For Less Than What Is Owed To The Bank

In today's real estate market there is an increasing number of homeowners who are no longer able to pay their mortgages.  In the past, this normally meant that the property would end up in foreclosure.  But, today, lenders are open to an alternative way to deal with these situations.  They often allow a property to be sold for less than  market value, and they absorb the loss.  This is what we call a SHORT SALE.  This simply means that the property is sold for an amount less than what is owed to the bank.  Foreclosures are very costly to a lender, and lenders have numerous financial advantages to allowing short sales. 

Zilbert Realty Group has created a Short Sale department which offers the following services:

1. We help homeowners who are facing foreclosure sell their properties quickly as short sales
2. We help buyers locate short sale opportunities, usually at less than market prices
3. We help other real estate brokers, who are inexperienced in listing short sale properties, list and sell their properties

It's also important to understand that short sales are make up a very small portion of the real estate market.  In fact, a bargain-hunting buyer may find very few deals, especially in the more-popular areas such as South Beach and Bal Harbour. 

How Does A Short Sale Work?

In order for a property owner's lender to consider the property for a short sale, the following must be true:

1. The property owner can demonstrate a financial hardship, AND
2. The property owner is unable to continue to make their loan payments

Any type of owner can qualify for a short sale on their property:  primary homeowners, vacation home owners, investors, developers, etc.

Many short sale owners are already in a pre-foreclosure stage.  Often, they have missed some of their mortgage payments, failed to pay their condo maintenance or have missed other payments.  These lien holders have started the process of foreclosure.  However, as long as the court has not declared a judgment, a short sale is possible.  Timing is everything, though.  However, a homeowner who is not yet in foreclosure, but who realizes that he or she can no longer make their payments to the lender are also good candidates for a short sale.  The key is to start the short sale as early as possible.

The homeowner engages a broker, such as Zilbert Realty Group, who will place the property on the market at a price that is below the market price.  The broker simultaneously creates a hardship package to be given to the lender.  A hardship package is a set of documents that demonstrates why the homeowner is having a financial problem.  The package also serves as a notice to the lender that the property is going to be listed for sale below market prices. 

When we market your property, we ensure that it is priced at a too-good-to-be-true price, and we let buyers and other brokers know that we have a short sale opportunity to tell them about.  Our target time to sell your property is seven days or less.

When you engage a skilled broker, such as Zilbert Realty Group, the broker will handle all the details of the short sale, including the negotiation with the lender, and the processing of the paperwork.  You don't incur any fees whatsoever!  The lender pays for everything (subject to the approval of the lender, of course).

Once an offer is received, the broker will present it to the lender, for approval.  If the lender approves the offer, the lender will issue a payoff letter that allows the seller to sell the property for an amount less than what he or she owes the lender.  Additionally, the lender will normally pay all closing costs.  So, at the closing, the seller puts up ZERO dollars, but he or she also walks away with no proceeds from the sale.

SHORT SALE vs FORECLOSURE

How Can I Learn More About Short Sales?

We have created additional information for sellers and buyers of short sale properties.  Please click on the button below which best applies to you

DISCLAIMER:  The information on short sales is provided based on various sources.  While we believe the information to be accurate, it is not warranted.  Buyer and sellers of short sale properties should consult with legal and financial professionals for specific opinions and guidance.  Zilbert Realty Group will not be liable for selling or purchase decisions made solely based on the information on this website.

 (French): Rencontrez nos agents qui parlent Français
(Spanish): Encuentrese con nuestros agentes que hablan Español
(Portuguese): Entre em contato com nossos corretores que falam Português
(Italian): Venga a contatto dei nostri agenti che parlano Italiano

Copyright © 2008 - Zilbert Realty Group
Condo Flip®, CondoSuperCenter® and Zilbert Realty Group® are REGISTERED TRADEMARKS of Zilbert Realty Group, Inc.  All Rights Reserved.
Mark Zilbert recommends that buyers, sellers and renters of real estate consult appropriate professionals for legal and other specialized advice. Information presented on this website is believed to be accurate but is not warranted. Oral representations should not be considered valid. Information presented on this site (and generated reports) may contain listings from both Zilbert Realty Group and other brokers who cooperate with Zilbert Realty Group. The content on this webpage (including drawings, photos, text and other materials) may have been provided by the developer or may have been extracted from a developer's marketing materials. Zilbert Realty Group does not warrant the accuracy of such information. You should consult your Purchase Agreement, Contract and Condominium Documents for accurate information. Zilbert Realty Group is an independent broker and has no developer affiliation, unless otherwise noted.  Contact me for additional information.