If you are trying to buy a Clearwater or Tampa area property that is distressed, such as a short sale, a foreclosure, or a bank-owned property, be prepared to be, well...really patient. As we uncover more information on how short sales operate from start to finish, we have painfully learned that the banks are often "negotiating" with eachother over a final sales price rather than the realtor and the seller negotiating between each other.
Many distressed properties have 2nd and 3rd mortgages attached to the title, and whoever holds the 2nd mortgage often holds very little at the end of the selling day. Second mortgages for example, that may be $25,000 to $50,000, may only see 5% (if that) of the balance of that loan.
All parties tied to that property through taxes, liens, loans, etc...have to sign off on the proposed sales price. When one party says, "No way, we want more money," the deal is off, and negotiations have to start all over again. These dealbreakers are what can cause a short sale to go on into the dessert it seems, drying out the assets of even the buyers, as they have to live and pay for their current shelter while their offer gets approved by the bank.
One couple who waited seven months for the bank to approve their offer almost got a divorce and the realtor almost quit real estate alltogether.
Short sales and bank-owned properties offer great buys at a fraction, sometimes half of what is owed on the mortgage, but you have to do the math before you get involved with the banks...they are not ready to let go of these properties so easily anymore.
When submitting offers, many buyers are now presenting $10,000 to $50,000 on top of the bank's asking price.
When shopping for deals, realize that there are properties out there that are for sale by owner, or are listed by a realtor on behalf of just the seller---no banks in the picture.
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