MORE THAN A QUARTER OF PALM BEACH GARDENS HOMES FOR SALE ARE SHORT SALES

More than one in four homes on the market in Palm Beach Gardens are listed as short sales.  And the majority of those are priced at or below $300,000, a boon for first time homebuyers and those looking for reasonably priced second or permanent homes.

Just above 1500 homes are for sale in Palm Beach Gardens with 420 of those listed as short sales, according to statistics from the Regional Multiple Listing Service.  And more than 80 percent of the short sales are priced at or below $300,000.

But before you plunge ahead in search of the perfect short sale at an expected bargain price, please understand the maze involved in these transactions.

If yours is the first contract being submitted on a short sale, it can take weeks or even months before the bank has in its files all of the relevant information from the seller in order to start considering the offer.  The buyer is required by the bank to produce a mortgage pre-approval if the home is being financed and proof of funds if it is a cash transaction.

After all relevant information is in a file, the bank appoints a negotiator to handle the transaction for their side and the file representing the home you want to purchase gets in line for attention.  It could take additional weeks or months for your file to reach the top of the pile and for the negotiator to then either apply the bank's guildelines to the transaction or search for the investors who may have bought the loan from the bank.  And the bank obtains a "brokers price opinion" about the value of the property.

And if the seller is juggling two loans on his home, the process is duplicated at two lending institutions and ultimately the two banks fight over how much each one gets.

In many cases, when this process nears completion, the bank will come back to the buyer and ask for more money.  Or they may ask the seller to sign a note for the difference between what the bank is getting from the sale and what the seller owes. Often times the sale will fail at this point. Frequently this is now four to seven months after the initial contract was written. Buyers often lose patience and move on to another property.

The Weiss-Clawson Team has worked on many short sales for both buyers and sellers.  These are difficult transactions and not for someone who needs to be in a house on a fixed date. 

If you are interested in buying or selling your home in Palm Beach Gardens, contact The Weiss-Clawson Team.  We research communities throughout the area to provide the most up to date information for our clients.  And we have extensive experience in both short sales and foreclosures.

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