Serious About Buying Short Sales in Florida?

If you're in the market to buy Florida real estate, then you've certainly come across more than a few short sales. These short sales can be tempting as they are listed substantially lower than similar homes on the market. However, before you begin shopping and bidding on short sales in Florida there are couple of things you need to know because buying a one is not for everyone.

To put simply, a short sale takes place when the owner holds a loan that is greater than the value of the home. There happens to be an excessive number of short sales in Florida because of what happened to the Florida real estate market. Back in 2005, when real estate was at it's peak, many people bought homes in Florida at a fairly high market price only to have those home values come down drastically within just a couple of years. In fact, they dropped so much that their loan amount now exceeds the value of the home. Now, if the owner must sell the house they will have to do so "short" of what they owe.

For many buyers this is a terrific opportunity to purchase a home at a great price. However, for others buying short sales in Florida is a nightmare. There are a couple of problems when it comes to buying a short sale. First of all, you must understand that any time there has been an offer and an acceptance their is a binding contract. However, just because the owner has accepted your offer doesn't mean that the bank will.The way it works is the owner will present the offer to the bank and both the buyer and seller must then wait for the bank's response. Unfortunately it can sometimes take many months to hear anything back from the bank and when you do hear back from them they may reject the offer. And remember, during the whole time you were waiting to hear back from the bank, you were actually under contract so you cannot place any bids on any other houses because if they do accept the offer then you are obligated to buy the house and may consequently be obligated to buy more than one house.

The purpose of this article is not to scare you away from buying a short sale. Truth be told, there are many awesome deals on short sales. For those who have the time (and patience) to wait for the banks to respond, buying short sales in Florida can be a great opportunity for families and investors alike.