Background: Why would someone have to "Short Sale"? It stems from inability to keep and pay for a house, condo, townhome lot, or commercial property for the following reasons: loss of income due to miscellaneous circumstances, relocation  divorce, medical issues and more.  Some borrowers purchased homes with teaser rates that result in higher mortgage payments. Others need to sell, yet have a mortgage that is still too high, as their properties were purchased when the market was at its highest. Higher insurance costs in Florida add to the difficulty for borrowers to keep up with their mortgage payments. Negative equity, i.e. owe the lender more on the mortgage than the property is worth. When this is the case, and the borrower needs to sell, one solution is a "Short Sale".

Definition: A “Short Sale” is when the lender agrees to a accept a payoff for less than the remaining mortgage balance to allow the sale of the property. The lender may forgive the entire shortfall, as well as pay the seller’s closing costs including the Realtor fee. The loss is either completely written off by the lender, a payment arrangement is made with the borrower (promissory note), or a lump-sum for a potentially lesser amount is agreed to (cash contribution). The short sale lender may also seek the deficiency from the borrower after the sale.

Why Would A Lender Accept a Short Sale? Banks don't want to own your Fort Walton, Niceville, Destin area real estate. A foreclosure can cost a lender $30,000 to $60,000. They have to maintain the property, market the property, pay for utilities, then spend money on closing costs. They would rather do a Short Sale- which saves them carrying and legal costs and generally is less expensive for them. Bottom line - with a short sale, you've done the work for them!

Wendy Rulnick
Rulnick Realty, Inc
Ph: 850-259-0422Fax:1-866-888-7792
12889 Emerald Coast Pkwy #107-A
Destin, FL 32550 US