Here’s a little post about conducting a short sale from a seller’s perspective.
Owners of distressed South Beach condos ask me all the time why they should be conducting short sales instead of just letting their troubled asset (or should we call it liability) go into foreclosure ?
First of all, I want to make it very clear, that I am in no way trying to encourage people from walking away from an “investment gone bad” even though they can afford to keep paying their mortgage. As a matter of fact, I believe that people simply changing their mind about owning Miami Beach condos and thus walking away, are a large contributor to the current real estate downturn.
Assuming you are somebody that is in legitimate trouble and really can not afford to keep paying your mortgage on your Miami Beach condo, a short sale is an definitely worth some consideration.
Yes there are other options (e.g. forbearance, loan modifications, etc.) however I am only talking about the difference between short sales and foreclosures.
Simply put, both options have negative impact on your credit rating, etc., however short sales tend to have a much less negative impact than foreclosures.
Click here for a chart, showing the ramifications of a foreclosure vs a short sale (provided by CDPE).
As you can see, a short sale is what I call the “lesser evil”, therefore if you are experiencing some kind of hardship and are thinking of just walking away from your Miami Beach condo, please consider all your options and if you decide that foreclosure is the only one, talk to a qualified Realtor about the possibility of short selling your unit.
Please keep checking my blog for further details on what you need to know about short selling your Miami Beach condo.