Palm Beach Real Estate and Loans

I don't know where it came from.......

But it seems like quite a few people have gotten the idea that the words "short sale" are the same as "bargain" when it comes to Palm Beach Gardens real estate.

NOPE.

Here is a short sale situation:

• the property owner gets behind on the mortgage payments
• the owner can not just sell the property and pay off the home loan because (for whatever reason) the balance due on the mortgage is higher then what the home could sell for. 
• so, the property is listed as a short sale
• all offers go to the bank that holds the mortgage
• when - and if - the bank gets an offer that they find acceptable, they will sell the home to that particular buyer
• at that point, the seller is off the hook with the bank - a much better result than foreclosure.

(Read this article for a more detailed explanation of the process--->>)

Here is why short sales are NOT a bargain for Buyers:

While the bank MIGHT take less then what they are actually owed, they are NOT going to accept a low-ball offer because the loss would just be too great - they would rather take the house and try selling it themselves.

It really is that simple.  So, you see a home listed as a short sale - the loan balance is $300,000 and you think "I'll offer them $190,000, they should be thrilled!".

Not only won't the bank be thrilled, they probably won't even respond.  They'll just keep waiting for bigger offers.

Don't forget, you're not dealing with the owner and what he or she will accept - with a short sale the BANK is in control and they don't just throw away money.

There are some REAL bargains to be had in Palm Beach Gardens real estate - call me.