Short sales in Miami occur when your bank agrees to let you sell your home for less than you still owe on your mortgage. They will generally do this to avoid foreclosures in Miami, which cost them time and money. Once they take your home, they are then responsible for paying any taxes and then trying to sell the home to recoup their money. If you are cannot afford your monthly payments and are already several months behind, contact Miami foreclosure attorneys to see if short sale might be an option for you. Of course, your bank would prefer if you could just afford to make the monthly payments, but a short sale is a much better option for all parties involved than foreclosure.
Seller
As the seller, there are several benefits to a short sale in Miami. First, you get out of paying a mortgage you cannot afford. While you do lose your home, if you cannot afford your payments it might be your best option. You will also protect your credit score from showing a bankruptcy. If the bank agrees to forgive the rest of the loan, your credit score will suffer a bit, but a short sale is not nearly as bad foreclosure. A short sale allows you to get out from under the stress and financial burden you cannot afford while minimizing the damage to your credit score.
Buyer
The largest advantage in purchasing a short sale in Miami is the low price. While there is extra paper work and waiting involved in buying a house short sale, the low price of the property is usually worth it. Just make sure that you are aware of what purchasing a short sale house will involve. The lender must approve of the agreement, which takes time. Once the deal has been approved, the process might move a little quicker than a normal transaction. Also, be prepared if you have purchased a fixer upper. You may need to put a little work into the home before moving in.
Lenders
Banks want to make money. When they foreclose on a property, it means spending money and resources. It also leaves them with the responsibility of finding a buyer and getting rid of the property in order to get some of their money back. They usually take a huge loss just to off load the property. Short sales are a way for them to minimize their loss. The bank is able to avoid foreclosing on a property and get back at least a portion of what they lent out. Lenders will only agree to a short sale if they think it is in their best interests.
Short sales are all about the bottom line. The buyer gets a great deal, the seller gets out, and the bank is able to minimize their loss. If staying in your home is not an option, contact an attorney to see if a short sale can help you avoid foreclosure.