Foreclosures in Panama City, Florida are affecting families, communities, the housing market and the local economy. One option many troubled homeowners are taking to reduce penalties and avoid foreclosure is a short sale. The question is, what is a short sale?

A short sale is the sale of real estate in which the sale proceeds fall short of the loan balance or payoff. It’s an alternative many homeowners are taking to avoid foreclosure and default penalties.

In order for a short sale to take place the lender must agree to a payoff on the loan for less than the remaining balance. A lender will accept a short sale in order to avoid the cost of foreclosure and increase the amount they will receive on the outstanding loan balance. This process also protects property values in the community and helps the homeowner preserve a higher level of credit compared to foreclosure. In most instances, specific criteria must be met to qualify for a short sale: mortgage in or near default stage, homeowner can provide evidence of economic hardship, property has little or no equity.

A short sale occurs when a homeowner lists a property for sale for less than the remaining loan balance. Once the homeowner receives an offer they submit it to the mortgage lender along with a short sale package. Before a short sale can take place the mortgage lender must agree to a loan payoff for less than the remaining balance. Lenders

A short sale is a more complex than the average real estate transaction. In a normal transaction you have the home seller, their agent, the buyer and their agent and their lender. In addition to those parties a short sale also involves the seller’s loan servicer, junior lean holders, mortgage investors, and possibly mortgage insurers.

The process of completing a short sale can be difficult without help. Hiring a qualified REALTOR to act as liaison between all parties involved and guide you through is very important. You will want a REALTOR with experience to expedite the short sale transaction with your best interests in mind. A REALTOR that can help you close the transaction in a timely manner while avoid common mistakes. Homeowners should consult with a tax expert and obtain the services of an attorney to protect themselves from future claims by the lender.

To learn more about Panama City and Panama City Beach Short Sales, click on one of the questions below.

What is the difference between a Short Sale and a Foreclosure?

What are the implications to my credit history?

Who decides if my home should undergo a foreclosure or a short sale?

How long will I have to wait to buy another home?

What will be the effects on my future loans?

Does it affect my employment opportunities?

How does a short sale versus a foreclosure affect the deficiency judgment?

Panama City Beach Commercial Foreclosure List

The Fannie Mae addendum states “The closing shall be held at a place designated and approved by the Purchaser. The Purchaser has the right to make an independent selection of their own attorney, settlement company, escrow company, title company and/or title insurance company in connection with the closing. “

This can be found on Fannie Mae’s Addendum on Page 1, Paragraph 2, Section B.

If the buyer choose to use their own title company there will be two title companies involved. Fannie Mae’s title company has to approve the hud and deed since they hold power of attorney. The two title companies must work together closely.

54 Sweet Bay Dr in Cassine Village is conveniently located just off Highway 30a, nestled behind Cassine Garden Townhomes, steps from one of Cassine’s community swimming pools and within walking distance to the Gulf of Mexico, bikeway, shops and eateries of 30a. Community amenities include 2 pools, updated tennis courts, meandering nature trails through a cypress forest and a green lawn with fishing pond. Walking up to the house, you’ll notice the easily maintained, professionally landscaped yard with flowers that bloom in every season and automatic drip irrigation, neighborhood paver sidewalks, and deep wrap-around porch. Out back provides a shower for rinsing off after a day at the beach or pool, yard building, and a covered screened-in back porch with tall ceiling. The floored, walk-in attic is wired for electricity, equipped with a wench to lift heavy items, and is accessible via the back porch. This open and bright Florida cottage with close to 10 foot ceilings provides maximum storage space and an open floor plan. The kitchen is equipped with extra cabinet space, large built-in pantry, granite countertops, an extra deep sink and decorative knobs on the custom maple cabinets. The master bedroom is large and offers his/her walk-in closets. The master bathroom has a spacious tiled walk-in shower and double vanity sinks. Both the master and second bedrooms have doors that open to the back porch. Other extras include 20×20″ porcelain tiles throughout the entire house, 8″ baseboards, newly painted exterior, and over 500 SF of porches. Come see for yourself today!

54 Sweet Bay Drive was a Fannie Mae foreclosure listed for $369,900. It went under contract July 22, 2010 and is scheduled to close August 27, 2010. We will post the final sale price after the closing.

I agree associations fees need to be paid, but do you think this is going to work? Give us your thoughts.