Housing crash means bargains for some Sacramento-area buyers
Distressed properties – short sales and foreclosures – continue to dominate the market, driving down prices for everyone.

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Here is all the information about this house:

its Bank-Owned (REO)
Transfer Value: $1,000
Est. Market Value: $98,523
Est. Market Range: $92,119 - $111,330
Est. Cost to Restore: $1,494

We really like this house but we have no idea what any of this means. We are new to buying a house. Can someone explain all this information to me?

I put an offer on a short sale that’s been on the market for 200+ days. Its been active all this time and never went to contract. I check the MRIS listing everyday to see any updates. This morning it says “contract” for the status and the bottom says the “Sold Information” has a closing date of November 30 and its my offer as it has my agents company under the agency. Does this mean the bank approved it?

Personal bankruptcy controversial means to stay aflot
Some homeowners feel forced to seek financial protection

Read more on Contra Costa Times

If you can no longer meet the expense of the mortgage payments on your property, a short sale may aid you in avoiding a declaration of bankruptcy or keep your lender from foreclosing on your home. A short sale takes place when your home loan’s lender releases your property’s lien and agrees to accept less money than you owe on the mortgage as a payoff. For instance, if you owe $200,000 on your home, and it sells for $190,000, the lender may consent to $190,000 as payment in full. Keep in mind, though, that some lenders will not agree to a short sale, especially if foreclosure is the better option for them.

What You Should Know About Short-Selling Your Home

Most lenders have particular requirements concerning precisely what documentation they require from those looking for a short sale, though the majority will require a letter of authorization, wherein you give them authority to disclose your personal information. Consider writing your lender a memo granting your permission to consult with others about your loan. Include your full name, the date, the property address, your mortgage number, and the name and number of the real estate agent who is helping you.

Your closing agent or lawyer should additionally prepare for you a initial net sheet. This contains the estimated closing statement with the sale price for your home that you assume you will receive, all the normal costs of sale, the unpaid loan balance, your late payments and fees, and any commissions your real estate agent will accept. You will need to convey this to your lender as well. Send with it a hardship letter that describes exactly how you fell behind in your payments, an honest report of your income and assets, accounting for any savings accounts, stocks, other properties, or articles of real value. Include copies of your bank statements, a comparative market analysis, if required, and a copy of your listing and purchase agreements when your home is put up for sale, and later when you receive an offer. Once your lender has all of your documentation, they will determine whether or not to sanction your short sale.

Understand Risks of Purchasing a Short Sale Property

While the enticement of getting a super deal on a short sale is quite strong, make sure to make inquires on the property before making an offer. To start with, a lender is under no obligation to accept your offer on a short sale listing, even when the seller accepts it, even though the property is listed with short-sale terms. Remember that a lender may have given permission for the short sale to the seller because the seller currently owes more money than the home’s value. This would not make the asking price lower than market value, but instead bring the price of the home in line with other properties in the market. Do some public-records research in order to discover whether the home is being foreclosed, and learn how much the seller owes the lender. This will help figure out how much to offer. When a seller consents to your offer, send a copy of it to the lender for approval and make your offer conditioned upon the lender’s approval. Also, make certain you have the property inspected making your offer contingent upon an acceptable inspection.