Southwest Florida Short Sale and Pre-foreclosure Properties

A Southwest Florida Short Sale is an agreement between a property owner in the initial stages of foreclosure and the lender, allowing the property to be sold for less than the outstanding loan balance. The lender would accept less than the loan amount in order to avoid a foreclosure proceeding, which can cost as much as $50,000. This southwest Florida short sale results in a substantially discounted purchase price for the buyer of the property. The buyer would then proceed with the purchase of the property in much the same as in any SW Florida real estate transaction.

The existing lender pays virtually all sales costs, including commissions, escrow and titles fees. The property gets sold, the loan(s) is paid off and foreclosure is avoided. Generally the property owner needs to be in default on their mortgage and must have ceased making mortgage payments for at least 2 months, before a lender will consider a short sale.

Even in a successful southwest Florida short sale, the property owner will suffer damage to their credit rating!!! A pre-foreclosure in redemption status will show up on the credit report, which will result in a loss of 100 to 120 points on the FICO score versus 280 – 300 points with a foreclosure.

For Southwest FL foreclosures and bank-owned residential home and condominium properties including MLS listings please visit www.swflbankforeclosures.com