If 2009 was “the year of the foreclosure,” it may very well be that 2010 becomes “the year of the short sale.” The expectation is that short sales in Englewood Florida and the surrounding communities of North Port, Port Charlotte, Cape Haze, Placida, Rotonda, Gulf Cove and South Gulf Cove will noticeably rise from the reported 2009 figures to the end of this year. There are several factors worth noting, not the least of which is a developed sense of understanding on the lender or servicer side. When done right, short sales can be a win for the borrower and less of a loss for the lender.

The biggest issue is the failed expectations on the buyer and seller side. Agents in Englewood Florida and the surrounding communities, and lenders have experienced very challenging times. Short sale transactions often fail because of unrealistic expectations. To tackle this, buyers need to be better educated on short sales and better prepared for this process. Sellers need to realize that the best way to complete the transaction is to partner with their lender. Too many times the seller’s Real Estate agent is trying to hold the deal together on his or her own, while the seller removes themselves from the process. This will likely cause the sale to fall apart.

What frustrates agents, sellers and borrowers is when a lender or servicer holds more than one lien against the subject property, yet cannot approve the short sale simultaneously. In many cases, an institution may quickly approve the short sale for the senior lien, but move much more slowly on the approval for the junior lien. There are opportunities for improvement on the servicer side to communicate better internally to get these deals decided on more quickly.

Well executed short sales are important because they stop properties from turning into REO homes. If the short sale is well constructed, these sales should not have quite the negative pressure on the market that REO sales have. The key is to find a solution that has a benefit for all parties involved and complete the deal.

Tags: Buy A Short Sale Home In Englewood Florida, Englewood Florida Short Sale Homes, Investing In A Short Sale Home In Englewood Florida, List a Short Sale Home in Englewood Florida, Short Sale Homes for Sale in Englewood Florida, Short Sales

Posted on Wednesday, March 10th, 2010 at 12:43 pm and is filed under Foreclosures, Short Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.