Miami Foreclosures & Short Sales

HUD Foreclosures

Welcome to the Miami foreclosure section of my website!! As a registered HUD Broker in Miami, I'm able to transact and close all HUD owned foreclosed properties throughout Miami, Coral Gables, Coconut Grove, Brickell, Brickell Key as well as the state of Florida. My expertise in Buyer Representation will guide you through the entire HUD foreclosure process from beginning to end. To view all of HUD'S inventory at this time, please visit the following link: www.nhmsi.com . 

Short Sales

A "Short Sale" is basically the selling of a Miami property pre-foreclosure at a price less then what is owed to the bank. The bank normally holding the mortgage will allow the owner to short sale the property if the following factors are present:

1. The owner has incurred some sort of hardship (husband becomes ill) and thus falls behind on the mortgage payments.

2. As a result of the declining Miami housing market, the property is worth less then what is owed to the bank. 

3. The owner shows due diligence in trying to sell the home for an extended period of time at or just below what is owed to the bank. 

If these factors are present then a short sale is possible. As a buyer, it is important to understand that you can find good deals in Miami through the shorts sales process. However, the banks are not just going to give away properties for "pennies on the dollar". Banks normally want offers at no less then 80% then what is owed on the mortgage(s). You can offer less then the 80% as long as you structure the offer to show them that there can be "value added" to the offer by a few scenarios:

1.You find out that the current owner has PMI insurance that will pay back the bank a certain percentage of the defaulted loan amount. So,if you have a $200,000 mortgage debt outstanding where PMI insurance will pay the bank back 20% of that amount - that $40,000 can be used as "added value" should you make an offer less then the 80% threshold. Already knowing that the banks want at least 80% of what is owed on the mortgage (in this case $160,000/$200,000 less 20%) an offer of $120,000 may be good enough to get the deal done. Remember, if you add the insurance payment of $40,000 to your $120,000 offer your now at $160,000 or 80% of what is owed on the mortgage!! The short sale process is something the does not happen overnight. As a buyer you have to be patient with the process. The normal wait time from offer to "acceptance" from the bank could run about 60 days. If your getting a good deal then you should be willing to "wait it out" if your serious about the purchase.

2. In your offer, you can show the bank a dollar amount of what it would cost them to foreclose on the property, fix it up, and incur the "carrying costs" of the property if they were not able to sell it for a year. In some cases this figure could reach $30,000 to $50,000 depending on the condition of the property.

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Foreclosures & Short Sales