When talking with my clients about the condo market in Miami, one of the questions that constantly comes up is "What is a Short Sale?". With the majority of attractively priced condo listings in Miami being short sales, it is important for a buyer to understand what a short sale is and the typical process involved in purchasing one.
In a short sale, the property owner is behind on their mortgage payment and wants to sell the property in an effort to avoid foreclosure, but can’t find a buyer willing to pay enough money for the property to cover the remaining principal on the mortgage. The property owner then asks their lender if it is willing to accept less than what is owed on the mortgage. Because the property owner needs the lender's approval before agreeing to the sales price, short sales can take months to complete as lenders try to figure out how big of a loss they are willing to take. In some cases, even after months of analysis, a lender may decide it doesn’t want to do one at all.
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