We talk a great deal about property sales in Jacksonville, and we discuss looming foreclosures and their effect on our First Coast communities, but we don’t spend much time talking about short sales. Short sales are not the same thing as a foreclosure, but for some people looking into investment property opportunities in Jacksonville, short sales might be your best bet.
Short sales offer property owners who are underwater on their home an opportunity to release themselves of their debt without going into foreclosure. When a foreclosure occurs, the bank takes over full ownership of the home and the home owner looses all of their assets. During a short sale, the home owner agrees to put the house up for sale, but the purchase price is less than what is still owed to the bank.
When a short sale takes place, the property owner forfeits all proceeds from the sale to the bank. However, in many cases the property owner benefits, because the sale will relieve them of the debt that they incurred when they purchased the home.
Short Sales and Investment Opportunities
In the spring of 2012 the number of short sales surpassed the amount of foreclosures in Florida. This was good news for some and bad news for others in Jacksonville, as property sales are always affected by a rise and fall in short sales and foreclosures.
Short sales offer investment property buyers an opportunity to obtain property at a greatly reduced rate, much like foreclosures do. However, short sales do not impede upon property values in the immediate neighborhood in the same way as foreclosures. For this reason, short sales are often looked at in a more positive light than are foreclosures.
Much like foreclosures, short sales take time to process. The sale of the property is not solely left to the discretion of the property owner, as is the case during a traditional property sale in Jacksonville. All offers on the property must pass through the bank for approval before being accepted. For this reason, short sales can sometimes take months to come to fruition, a process that can become a great headache for many property investors in Jacksonville.
The best advice you can take when approaching a short sale is to not go the process alone. Having the expertise of a property sales specialist at your side can make the entire process painless, as we have experience dealing with banks and property owners.
For more information about short sales and foreclosures in Jacksonville, contact us.