Panama Beach Realty

  • Increase font size
  • Default font size
  • Decrease font size
Home Blog Home Short Sale

Panama City Short Sales

Panama City Beach Short SalesWhat is a Short Sale?

A short sale is a real estate transaction where a lender or lenders approval is required to complete the sale of the property.  There are many short sale scenarios.  Sometimes the banks will write off the debt, or convert the debt to a non-secured loan while releasing the lien against the property.  Each bank has its own policies and procedures.  These policies and procedures change often and without notice.  It is a very fluid environment.  

The short sale process is complicated and there are many pitfalls.  Be sure to find someone who has experience and can guide you step by step through the process without charging you additional fees outside a typical real estate transaction.  If you need someone to talk to you can reach me at:

Christopher Arnold
850-625-5113
This e-mail address is being protected from spambots. You need JavaScript enabled to view it



Why So Many Short Sales Never Reach A Closing Table

E-mail Print
Panama City Short SalesMany short sales never actually make it to a closing table.  There are many ways a short sale can fall apart.  There are also more decision makers than you would  see in a normal transaction.  It is important for all parties involved to have a clear understanding of reasonable expectations and the process.

In a short sale there are at least three separate decision makers.  The buyer, the seller, and each bank that has a mortgage on the property.  If any one of these parties does not agree with the negotiated terms through the contract process, the deal can not proceed. 
Read more
Add comment (1)
Hits: 2566
 

Difficulties of Second Mortgages When Negotiating Short Sales

E-mail Print

Panama City Florida Short Sale

In the not so recent past a first and second mortgage when purchasing a property was very popular.  Negotiating short sales with a second mortgage comes with some extra challenges.  These challenges multiply when the mortgages are with different lenders.  Add a buyer who will need loan approval and you are walking the ultimate tight rope.

Many lenders policies and procedures have been changing rapidly regarding short sales. We are even seeing banks that were holding first and second mortgages split and become separate entities.  Short sales can be tricky simply dealing with one lender. 

Read more
Add comment (2)
Hits: 2979
 

How Short Sales Effect Your Credit

E-mail Print
Panama City Beach Short SalesMany people don’t understand how a short sale will affect their credit.  The short sale itself does not harm one’s credit in any way.  It is possible to complete a short sale without having a major impact on the person’s credit.   We are going to go through several scenarios to explain short sale options and the ramifications of each scenario.

The largest impact to ones credit is the missed payments.  If someone is 30, 60, 90, or 120 days late on a mortgage, it will significantly impact their credit.  There is a misconception that one has to be  late on the mortgage to be eligible for a short sale.  This is not accurate.  It is possible to negotiate a short sale without missing any payments on the  mortgage.  If someone does this and converts the remaining balance due at closing to a signature loan, their credit should not be impacted in any way. 
Read more
Add comment (0)
Hits: 2754