subject: Short Sales In Florida: Are They Worth It? [print this page] If you're in the market to buy Florida real estate, then you've certainly come across lots of short sales. These short sales can be appealing because they are priced significantly lower than comparable homes on the market. However, before you start shopping and bidding on short sales in Florida there are handful of things you need to know because buying a one is not for everyone.
In simplest terms, a short sale is when the owner wants to sell the home for less than money than he owes on the house. The reason why there are so many short sales in Florida is that so many people bought homes at the peak of the market back in 2005. Then, when the real estate market crashed so did the value of thier home. In fact, they dropped so much that their loan amount now is higher than the value of the home. Now, if the owner needs to sell the house they will have to do so "short" of what they owe.
For many buyers this is a terrific opportunity to purchase a home at a great price. Unfortunately, buying short sales in Florida can also be a huge headache. The first thing you must realize is that once you put in an offer and there has been an acceptance by the owner you are under contract. However, just because the owner has accepted your offer doesn't mean that the bank will accept it.The way it works is the owner will present the offer to the bank and both the buyer and seller must then wait for the bank's response. Unfortunately it can sometimes take several months to hear anything back from the bank and when you finally do hear back from them they may reject the offer. And do not forget, during the whole time you had been waiting to hear back from the bank, you were actually under contract so you cannot place any bids on other houses because if they do accept the offer then you are required to buy the house and may consequently be obligated to buy more than one house.
On the other hand, you can find lots of great deals on short short sales. For those who have the time (and patience) to wait for the banks to respond, buying short sales in Florida can be a great opportunity for families and investors alike.
