14 Oct 08 Short Sale in Miami Real Estate
Welcome back!
Short Sale in Miami Real Estate
In short, a short sale occurs when the proceeds of a sale fall short of what is owed on the property. In other words, the bank permits an owner to sell for less than the loan balance due. You may ask, “why would a bank permit such a thing”? The answer is simple.
For a variety of reasons, property owners fall behind in their loan payments and head towards default and foreclosure. Banks are not in the business of owning properties. Contrary to what some believe, banks do not desire to foreclose and take possession of real estate. On the contrary, they are interested in borrowers staying in the property and continuing to make payments. If this is not possible, the next best option is the sale of said property. This is where a short sale may come into play.
Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. In fact, banks statistically incur a smaller loss via short sales. Here is why; Banks use very similar criteria when determining what price they would sell a foreclosure or short sale property. Typically this is 5% to 20% under the current appraised value. Wheras in a short sale, the bank never takes possession, in a foreclosure banks take title and start paying taxes, maintenance, legal fees, and then list with a real estate agent.
It is important to note that extenuating circumstances influence whether or not a bank will discount a loan. Nothing is written in stone and there is no guarantee that a seller will qualify for a short sale.
My advice:
For sellers looking to short sell their property:
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The most important thing you can do to achieve success is to higher a law firm that specializes in this type of litigation. There are a number of these throughout Miami. You want to be sure to ask the attorney how many short sales they have under their belt, and how many they have in process. Only work with an attorney that is currently working with multiple clients.
For buyers looking to purchase a short sale:
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the most important thing to know is how far along has the sellers file progressed with the bank. Ask the seller if “the bank has completed the appraisal or BPO.” If the answer is yes, there is a good chance you acquire the property. If the answer is no, the odds are far less.
Tags: Miami Real Estate, Short Sale
24 May 08 One Bal Harbour: Condo Review
With over 50 units having been resold thus far in 2008, One Bal Habour is an anomaly in the Miami Real Estate Market. Its success can be tribute to two factors; first and foremost is One Bal Harbour’s location. Whereas in other areas there have been numerous new developments in the past few years, Bal Harbour has seen only two new buildings, One Bal Habour and Bellini. Attracting affluent buyers from New York City, Chicago, Boston, Washington DC and Europe, the demand for new construction in one of the most upscale communities remains strong.
One Bal Harbour’s second most influential attribute is undoubtedly its overwhelming quality. Having been to every luxury building in both Dade and Broward counties, I can attest to fact that One Bal Harbour is one of the region’s five most luxurious properties available today. To learn more about One Bal Harbour visit our dedicated web page.
Tags: bal harbour, Miami Real Estate, One Bal Harbour
17 Jan 08 The 1800 Club Condominium Opens its Doors
2008 Is sure to be an exhilarating year in Miami Real Estate. With the majority of the new construction condos closing this year, there air is ripe with anticipation. Renters in particular have much to look forward to with a variety of new luxury options coming to market. For example, the 1800 Club which recently started its closings, offers an A location with A+ views. Expect rental rates near $1400 for 1-beds, $2000 for 2-beds, and $2800 for the 2200 sq ft 3-beds. The 1800 Club sits on Margaret Pace Park, a little know waterfront public park on Biscayne Bay just 4-blocks from the Venetian and 395 Causeways. Views are spectacular as you can see from this 20th floor photo taken from the 11-line.
Tags: 1800 Club, 50 Biscayne, Margaret Pace Park, Marina Blue, Miami Real Estate, Midtown, One Miami, Quantum
29 Dec 07 Welcome to the BSBH Team’s BLOG
