Florida Real Estate

The big topic these days seems to be short sales Destin Florida and the Destin Florida Real Estate market. Whether you are talking about Short Sale Condominiums, Homes, or Commercial Real Estate, there are a few things to think about and consider though. We took some time to pass on our experience in the Destin Florida Real Estate market dealing with these properties and the handling of these lovely short sales Destin Florida transactions. Pitfalls in any real estate deal are always there, so make sure you are investing your time and money with the right team of people.

What’s the biggest difference between short sales Destin Florida and foreclosures Destin Florida in the Destin Florida Real Estate market? Short Sale properties are still owned by the purchaser, not the bank. It’s the new fancy term if you will to pre foreclosure. This concept came basically as a last minute bail out strategy from the bank and really and truly it’s a way to pass on the potential loss to the borrower!!! Yes it still does affect your credit if you are the person being short sold! It’s not as bad as a foreclosure, but don’t be fooled if you are considering a short sale. Feel free to email us or contact us for more information on this also above.

Short sales Destin Florida and Destin Florida Real Estate can already be arranged with exact figures(rarely occurs) or, the more typical way, of a negotiation between the owner/seller and the bank. So basically…be prepared for a long timeframe before hearing from an the seller, seller’s agent, or bank. They are basically determining how to offset the difference. Two basic options: 1) The seller/owner takes a loan out for the difference and is required to pay that back over some timeframe or 2) They receive a 1099 income form from the bank.

What many people do not know is that you still receive a 1099 from the bank if your home is foreclosed. So in reality, a short sale would hopefully have a lower tax consequence than a foreclosure. The real question is how do you get blood out of a turnip? Let’s face it..something is going to have to happen. If you take a $50,000 loss(probably average, maybe low) and you are in a 15% bracket you are looking at north of $7,500 in income tax being owed….sorry don’t think that is going to happen! If you are faced with a short sale or foreclosure, you typically aren’t in a position to make that additional payment towards your income taxes! Although recent legislation has been passed giving an out to people if you follow things correctly. Please see the article here reference to 1099 possibilities.

Sorry for diverging a little bit, but it is important to know the factors of the short sale, whether it be in Short Sales Destin Florida or any other Destin Florida Real Estate Transaction. Most of the people in this situation have also borrowed not only on a 1^st mortgage, but also a 2^nd mortgage…so guess what!! That’s right, way upside down! There are a few investment strategies we have worked with customers on and would be glad to share with you. The biggest thing is know that there are more coming. We are looking at another 3-5 years of this type of market. The prices aren’t going to continue going down. There is a value to property and that true(not flip) value will not change. Base the price on what it could produce/carry from an investment stand point and you will have a solid investment.

Dealing with any short sale and specifically short sales Destin Florida and Destin Florida Real Estate transactions can be a little bit challenging. Let us show you today why we continue to have great success with short sales Destin Florida and Destin Florida Real Estate.