subject: Short Sales: New Type Of Investment In Miami [print this page] Properties in foreclosure are not the only good investment opportunities right now in Miami Real Estate Market. There are thousands of properties in short sale where a property is sold at a price that is short of the existing mortgage amount and this type of sale represents many advantages.
For investment pools that own many home loans, there is the prospect of receiving more money with a sale than with a foreclosure. For borrowers, there is the likelihood of suffering less damage to credit ratings. And as part of the transaction, they will get the lender's assurance that they will not be sued for an unpaid mortgage balance.
And lenders are increasingly coming to the conclusion that short sales are a more financially advantageous method of unloading troubled properties than actually foreclosing out a borrower.
The amount of time it takes to complete a foreclosure in Miami has more than doubled, to 18 months, and can cost $40,000 to $80,000. On the other hand, in a short sale, a bank can sell the property in a matter of weeks and not have to invest additional capital.
Because there are so many houses in foreclosure and short sale in Miami and Florida as a whole, there are plenty of buying opportunities to be had. For first time Miami home buyers, a condo near the beach may have once been completely off-limits. However, now it may be within reach.
