As an investor in Florida Real estate, you are familiar with the statistics. In Florida, where 1 in 3 properties is expected to be foreclosed or sold as a short sale, 44% of mortgaged properties are underwater.i For borrowers in this situation, many will require a short sale. For Investors, this is an opportunity not to dismiss. We at Meridian Trust Investments would like to familiarize you with this potentially lucrative investment strategy.
What is a Short Sale? ii
A Short Sale is when a bank accepts an offer that is less than what is owed on a mortgage. It is also known as mortgage discounting.
Who Benefits from them? iii
- Mortgage lenders will agree to a short sale to avoid taking possession of a foreclosed property and to cut their losses.
- Borrowers avoid foreclosure.
- Buyers get a discounted price on the property.
- Real estate professionals get some much needed business.
How do they work? iv
If you would like to buy a distressed property, here are some suggestions on how to go about it.
- You should work together with the distressed homeowner.
- You’ll need an “authorization to release” form to talk to the bank on the borrowers behalf.
- You’ll need a sales contract, with area comps and list of repairs w/pictures.
- Call the banks loss mitigation department (foreclosure department).
- An offer less than 65% of property value will not likely be considered serious. v
Meridian Trust Investments has been making successful real estate deals in the Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.
To learn more about real estate investments, short sales and foreclosures in South Florida, contact us today. www.wesellcheaphomesnow.com