*Scroll down for active residential short sale listings in Cape Coral.*
About Short Sales......
- Comparable home sales show that the property is worth less than the mortgage balance.
- A qualified hardship is required (i.e. job loss, medical emergencies, divorce, bankruptcy, death).
- The mortgage usually has to be close to default status.
- The distressed property owner has minimal assets.
- The seller needs to provide the lender with an offer contract.
If the lender agrees to review the seller documents, they will most likely order a Broker Price Opinion, known as a BPO, to evaluate the current market value of the property. During this time they will also review the sellers hardship and the contract terms between the seller and the buyer. After the BPO comes back, the bank will review the file, accept, reject or counter the sellers contract with the buyer.
Keep in mind that the contract is between the seller and the buyer, but in order for the seller to be able to transfer the property, the bank has to accept the contract and the hardship. If the bank says to the seller that they need more money or different terms, the seller can go back to the buyer and request this or the seller can make up the difference if possible (not very common since they can't afford their mortgage payments anymore, but maybe they can find a friend or family to gift the difference).
The seller can't afford mortgage payments anymore due to a hardship, the seller owes the bank more money than what the property is worth, hence the shortfall amount, which creates the opportunity for a short sale. Please keep in mind that different lenders may have different requirements and procedures for short sales.
A short sale is different from a foreclosure, which is when the seller's lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. (A deed in lieu of foreclosure can be an option to lessen the credit damage for homeowners who can no longer pay their mortgage, if you need more info on this, just ask me.) But a SHORT SALE holds many potential pitfalls for buyers.
Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA.
*Not all real estate practitioners are REALTORS®, a REALTOR® is a member of the NATIONAL ASSOCIATION OF REALTORS® and is bound by NAR's strict code of ethics.
Source References: REALTOR® magazine (REALTOR.org/realtormag) Copyright 2008. All rights reserved; The Balance, https://www.thebalance.com/how-to-qualify-for-a-short-sale-1798181
- 5 Beds
- 5 Baths
- 3,648 sq ft
- 13,242 lot
- Listed with Florida Complete Realty
- 3 Beds
- 2 Baths
- 1,623 sq ft
- 10,018 lot
- Listed with RE/MAX Realty Team
The source of this real property information is the copyrighted and proprietary database compilation of the M.L.S. of Naples, Inc. Copyright 2020 M.L.S. of Naples, Inc. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it.