What Does it Mean When a Vero Beach Home for Sale is Called a Short Sale?
Homes advertised as Short Sales are currently a much smaller percentage of all available listings for sale
in Indian River County, than they were a few years ago. The percentage varies by location and price
range, with the majority being at $100k to $400k list price. Homes built during the 2003-2006 construction
boom in Vero Beach are most likely to be in this category.
A Short Sale is when the lender agrees to discount their payoff to allow a sale
and the following conditions are met for a home for sale in Vero Beach Fl:
- The mortgage is delinquent or in default (pre-foreclosure)
- The home’s value is less than the mortgage balance
- The home owner/seller can demonstrate a financial hardship
If these conditions are met, the seller benefits by:
- Avoiding Foreclosure and having their credit score ruined for 10 years
- Staying in the home during the sales process and not making payments
- Feeling that they have made the best of a bad situation, doing the right thing.
You as a potential buyer benefit because:
- The home is usually better maintained than a foreclosure
- The price is adjusted to current market value and available for sale
The Lender benefits from:
- Avoiding additional expense of Foreclosure and eviction
- Avoiding vandalism and liability for an abandoned home
- Removing bad debts from their books more quickly
How a short sale transaction is different from a conventional sale:
- The lender must approve the sales price and can take more than a month to respond
- The home will always be sold “as is” with right to inspect but no repairs will be made
- Low offers are typically ignored rather than responded to with a counter offer
