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Everyone knows that I have been working with Home Buyers and Home Sellers in Santa Cruz County on Short Sales for the last 4 years.
Am I an expert? No.
Do I know more that some others who claim to be experts? YES.
Do I know something about making Short Sales work and close that others do not? No.
Have I closed over 95% of every Short Sale I have been involved with? YES.
Do we learn something new about new about Short Sales every single day? YES.
I had to share this article, as it covers, and answers many of the questions that arise during a Short Sale Transaction.
WASHINGTON (MarketWatch) Question: A bank in Ft. Lauderdale has the final say on the sale of a house my daughter wants to purchase. The Realtor sold my daughter on making an offer on this townhouse, which is owned by someone who owes more than the place is worth. The day on which she was promised an answer has come and gone, but she has heard nothing from the bank. When she questioned it, she was told she is at the bank's mercy and she would receive an answer whenever the bank got around to it. The sale is scheduled to close soon, but still no word.
On several occasions, the listing agent has advised my daughter's agent that my daughter should hear something on such and such date, but that date rolls around with nothing. Not even a call from the Realtor. She is told that is the way it is and to get used to it. I have told my kid to move on and quit messing around with these jerks. They have zero empathy and show zero care. They have not changed spots even though we taxpayers bailed them out.
My daughter wants the townhouse, qualifies for the loan and has the 20% down the cash she needs to close. She has a high credit score with never a glitch or financial misstep in her 37 years. She has a good and secure middle-level management job. No financial reason exists for her not to be accepted. Does she have any rights? I find this beyond unbelievable both from a business and moral standpoint.
Answer: Unfortunately, your daughter has no rights, at least not in this case. Whether or not the bank accepts the short-sale price is between the bank and the owner.
I can't tell you exactly why the bank is dragging its feet, but I do know that lenders want to make absolutely certain that their borrowers aren't trying to get out of mortgages they still can afford. Many people are hiding assets and otherwise lying to their lenders to get out from under loans on which they can still make the payments but choose not to.
Lenders also want to be sure the house in question is not worth more on the open market than what your daughter is offering. In the long run, it may be less expensive for the lender to foreclose, take back the property and sell it than it is to allow the proposed short sale to go through. And unfortunately, it is still all about making money for some lenders.
Only after the lender is satisfied with the answers to these two questions will it turn its attention to your daughter and whether or not she is a qualified borrower. Meanwhile, she can call off the deal anytime she likes and find another place. It may not be the house she wanted initially, but these things have a way of working out for the best. Nine times out of ten, the houses people eventually buy turn out to the best choices after all.
Are you interested in purchasing a Short Sale property, or are you considering the possibility of Short Selling your Home. Please Contact Me for up to the minute information that could make all the difference in your success.
Monday, June 7, 2010
Tuesday, June 1, 2010
Time to BUY
For many home buyers, the term foreclosure brings up images of run-down homes with no heat and rotting wood. While this is still the case for some homes, it’s no longer the standard. In fact, first time buyers are snatching up distressed deals in decent condition for great prices.
According to a November 2009 Keller Williams Research Buying Distressed Properties Survey, 40 percent of all buyers for bank-owned foreclosures (REOs) were first-time home buyers in 2009. 50 percent of all short sale buyers were first-time buyers.
By definition, a distressed property is one that was purchased with a loan and the homeowner is no longer able to make their mortgage payment resulting in foreclosure – or if they’re lucky a short sale – meaning they owe more on the home than it’s currently worth. With a 20 percent increase in foreclosures from 2009, distressed properties still remain a large portion of home sales and are going to continue well into 2010 as homeowners continue to feel the effects of an economy on the mend.
If you’re in the market for a home and are prepared for a unique transaction, a distressed property can be a great option. Here’s why:
Prices are low – Buying a foreclosed property is an excellent way to get a home in Santa Cruz County for less. Research shows you can save 10-40 percent over the price of similar properties in a traditional sale.
Mortgage costs are low – With rates hovering near historic lows, financing costs to are favorable. Keep in mind, rates are always changing. It’s important to begin the pre-approval process so that you know how much you can realistically afford.
You have options – The number of homes in some stage of the foreclosure process still remains high. RealtyTrac, a site dedicated to tracking foreclosures across the country, estimates that there are approximately 2.1 million homes in some stage of foreclosure in the United States.
Sellers and lenders are motivated – According to data from RealtyTrac, in April, one in every 387 households in the country has received a foreclosure filing. The bottom line is that many home sellers are still feeling the pain of a down economy and are anxious to out get from under a home that is putting stress on their current financial frustrations. While it is still an emotional transaction, these sellers are willing to come down on price or even consider concessions such as helping out on closing costs. Banks holding on to large portfolios of Real Estate Owned (REO) properties want to unload quickly – and price these home to sell.
Your best ally when purchasing a distressed property is an expert.I have been involved in the sale and purchase of REO, Short Sales and Foreclosed properties in Santa Cruz County for over 4 years, representing both home buyers and home sellers. Always have a professional REALTOR® by your side to help you make informative decisions. If you’re interested in learning more about purchasing a distressed property please Contact Me and I will be happy to provide you with information.
According to a November 2009 Keller Williams Research Buying Distressed Properties Survey, 40 percent of all buyers for bank-owned foreclosures (REOs) were first-time home buyers in 2009. 50 percent of all short sale buyers were first-time buyers.
By definition, a distressed property is one that was purchased with a loan and the homeowner is no longer able to make their mortgage payment resulting in foreclosure – or if they’re lucky a short sale – meaning they owe more on the home than it’s currently worth. With a 20 percent increase in foreclosures from 2009, distressed properties still remain a large portion of home sales and are going to continue well into 2010 as homeowners continue to feel the effects of an economy on the mend.
If you’re in the market for a home and are prepared for a unique transaction, a distressed property can be a great option. Here’s why:
Prices are low – Buying a foreclosed property is an excellent way to get a home in Santa Cruz County for less. Research shows you can save 10-40 percent over the price of similar properties in a traditional sale.
Mortgage costs are low – With rates hovering near historic lows, financing costs to are favorable. Keep in mind, rates are always changing. It’s important to begin the pre-approval process so that you know how much you can realistically afford.
You have options – The number of homes in some stage of the foreclosure process still remains high. RealtyTrac, a site dedicated to tracking foreclosures across the country, estimates that there are approximately 2.1 million homes in some stage of foreclosure in the United States.
Sellers and lenders are motivated – According to data from RealtyTrac, in April, one in every 387 households in the country has received a foreclosure filing. The bottom line is that many home sellers are still feeling the pain of a down economy and are anxious to out get from under a home that is putting stress on their current financial frustrations. While it is still an emotional transaction, these sellers are willing to come down on price or even consider concessions such as helping out on closing costs. Banks holding on to large portfolios of Real Estate Owned (REO) properties want to unload quickly – and price these home to sell.
Your best ally when purchasing a distressed property is an expert.I have been involved in the sale and purchase of REO, Short Sales and Foreclosed properties in Santa Cruz County for over 4 years, representing both home buyers and home sellers. Always have a professional REALTOR® by your side to help you make informative decisions. If you’re interested in learning more about purchasing a distressed property please Contact Me and I will be happy to provide you with information.
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