Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current Miami real estate market and the borrower's financial situation. A short sale typically is executed to prevent a home foreclosure. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. However from a buyer’s perspective they tend to take longer than the purchase of bank-owned (REO) real estate since most of the time they need to appraise the property and be convinced that the existing owner/debtor cannot continue holding the property. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount.
The wide array of parties, parameters and processes involved in a short sale makes it a relatively complex and highly specialized type of real estate transaction which is why unfortunately short sale deals have a high failure rate and often do not close on time to save homeowners from foreclosure when they are not handled by a knowledgeable and experienced professional. Having assisted multiple buyers with the purchase of short-sales allows us to work with buyers, sellers and banks to reasonably achieve the common goal, which is to transfer the property to a ready, willing and able buyer at a price that reflects the current marketplace.
Bank Owned (REO) - the lender already owns the property which was acquired through a foreclosure auction and is looking to sell at a loss”. We work exclusively with prospective buyers looking to purchase a house in Miami or a Miami Condo. Foreclosures or Bank Owned properties (REO) in Miami provide great opportunities in the current market place. We have access to practically the entire inventory of Bank Owned (foreclosures) condos and houses for sale in Miami. Again, we represent the buyer and have their best interest in mind. Commissions are pre-negotiated with sellers (i.e. banks) so there is no cost to you. A condition to purchase is that you will need to be financially pre-qualified or willing to purchase the property cash.
BANK OWNED PROPERTIES IN MIAMI – Real estate owned or REO is a class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank. After an unsuccessful auction, the bank will go through the process of trying to sell the property. They remove some of the liens and other expenses on the home and try to resell it to the public. Generally speaking, bank REO properties, particularly houses more than condos, are in poor shape in terms of repairs and maintenance; however, buyers will often go after these properties as banks are not in the business of owning homes and so, in some cases, the low price can more than compensate for the condition of the property. Usually these types of transactions tend to be speedy as the seller/bank knows the value and has priced the property for what they would be willing to accept.