Gainesville Florida short sales are common.
Currently there are 142 homes listed as short sales in the Gainesville Florida area. They range in price from $69,000 all the way up to $649,900 for a 4500+ square foot executive pool home.
What is a short sale, and why should I care?
A short sale happens when a homeowner ends up owing more on the home than it is currently worth in today’s marketplace, and the lender is willing to take less than what the homeowner owes.
Why would a lender want to do a short sale?
Lenders want to do short sales because they will be able to collect more money that a homeowner owes on their loan than they would if the homeowner ends up going into foreclosure and/or bankruptcy.
Why is a short sale a good thing for sellers?
“Good” here is a relative term, because being in a short sale position is not a situation that would give any seller the warm fuzzies.
Knowing you can no longer afford your house, and knowing you will have to make other plans for your family while not knowing for sure what those plans will be is a stressful position for anybody to find themselves in.
But a short sale is “good news” for sellers, because if they are able to sell their home before the bank repossesses it, their credit is dinged for 2-3 years, as opposed to 7+ years in a foreclosure situation.
Why is a short sale a good thing for buyers?
Short sales are good for buyers because they can generally get a lot more house for their money. These properties are usually very competitively priced in order for the sellers to unload them before they end up in foreclosure. Although there are fewer short sale properties available in the Gainesville Florida market than in other parts of the country, there still are plenty to choose from.
How do I buy a short sale?
1 – Find a Realtor who has experience with short sales.
2 – Get pre-approved.
No short sale offer will be considered without a pre-approval or a proof of funds letter. If you have not yet been preapproved by a local lender and are not sure who to call, ask your Realtor, friends, family, and work colleagues who they would recommend.
3 – Be patient!
Once you submit an offer that is approved by the seller, the seller has to then submit your offer to their lender to see if the lender will accept the offer as well.
Remember, in a short sale situation the lender is agreeing to accept less than what the homeowner owes on the mortgage, and the lender is going to do whatever they can to minimize the amount of that loss to their bottom line.
It takes awhile to find out if lenders are willing to take the level of financial beating that is inherent in the amount you are offering. Sometimes the wait can be up to 60 days….sometimes more (though this is becoming less prevalent). Look at the frustrating wait time as the price you pay for getting the chance to get a home you might not otherwise be able to afford.