Real Estate Information

The myth there is not enough time to negotiate a Short Sale before the foreclosure date is often false and often hurts the sellers the most.  The foreclosure process is a process, requires certain time periods to complete, and an experienced Short Sale Real Estate Agent can usually navigate the process to an approved Short Sale decision in time to avoid the foreclosure.

Most lenders will stall or delay a foreclosure because they often net more from a closed Short Sale transaction than what they can net after the time and added expenses of a foreclosure and REO sale of a property.  Almost all lenders will stall a foreclosure with a legitimate purchase offer contract in place which results in better outcomes for the sellers and the lenders.

Recent projections indicate approximately 40%-60% of U.S. residential sales will be Short Sales or foreclosures.  If you find you may be in the same situation there is no reason to be embarrassed even though your first inclination may be to deny  you owe more on your home than it is now worth.  You are not alone. 

The most important thing you can do is counsel with your family attorney or CPA to determine which course of action is most appropriate for your circumstances.  If you decide a Short Sale is the best course of action, make sure you choose a Real Estate Agent with a track record of successfully closing Short Sales to work on your behalf.

Are Short Sales more difficult to manage than traditional property sales?  Do Short Sales often get approved by the lenders?  Do you need to work with an experienced and successful Real Estate Agent when anticipating a Short Sale? 

The answer to all three questions is usually "Yes!."  While no one can guarantee the outcome of any transaction, the truth is more and more Short Sales are being approved on a regular basis.

#6- Banks Are Holding Their Collective Breaths for a Bailout and Not Successfully Processing Short Sales

The little secret is that banks are more ambitious in preventing foreclosures as they often net more money from a Short Sale in a shorter period of time than they can from a judicial or non-judicial foreclosure.  Banks' internal processes for managing their Short Sales has also improved.  

Banks and lenders can't afford to deny Short Sales in the hopes that some future Federal or State level programs or legislation will pass and pay them back for their losses. Even Freddie Mac recently hosted a training Webinar where they stated they had the goal of "eliminating distressed assets through modification or short sale."

#7- What?  Buyers and Investors Are Not Seriously Looking at Short Sale Properties?  Says Who?

Many buyers and investors believe the words "short sale" mean the same thing as "this home is a good deal."  This often improves a short sale property's number of showings resulting in offers sooner than later.  Many investors, including international buyers, target these properties while the home prices are lower and plan to hold onto their investments knowing the properties will appreciate in value over time.

Listing your house or residential property with an experienced Short Sale Agent with a track record of successful closings and avoidance of foreclosure will more often provide you with the chance of rapidly realizing a contract on your property.

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.