Posts Tagged “Option”


www.shortsalesriches.com Nathan Jurewicz “The Short Sales Kid”, records a real estate “notice of option” with an enthusiastic county employee and Nathan explains the benefits of his process

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The term “short sale” has been talked about much lately since the slump in the housing market, but for one who is purchasing a home the first time, it can be quite unfamiliar.

Short sales are real estate transactions that allow a buyer to buy a listed home at a remarkably reduced price.  From the homeowner’s standpoint, a short sale is the most sensible way to get out of bleeding mortgage debt or impending home foreclosure. In the recent years when home prices are at their lowest, the best option for borrowers or lenders is to let go of a property at a lesser amount than what the borrower owes on it.

Consider the example of a buyer who made an 80% loan to purchase a home worth $300,000 back in 2007. So he has a mortgage of about $240,000 on that home. The housing and mortgage crisis in the past few years resulted to home values to drop significantly. In some areas, the number reaches as high as 30 to 45 percent, so the $300,000 home back in 2007 can only be worth $210,000 today.

Because the crisis is general and does not only cover the housing market, some homeowners may have lost their jobs or are getting less than what they used to make. Lenders know that because of these, most homeowners are having difficulty to sustain their mortgage obligations, so they try to come up with the best deal so they can recover what they can from a particular mortgage transaction.  Lenders and mortgage companies do not need to be wedged with white elephants in their inventory.

First time home buyers are advised to work with a real estate broker or short sale specialist so they can come across great deals on homes and leave much to savings.  This $300,000 home can actually be availed of for $100,000 less if you arrive at an agreement for a short sale to purchase this home. Of course if you limit your judgement on current market values, there really isn’t a significant difference since home values are down, but look forward to how much this home can be worth in 5 or 10 years when the economy improves.  A short sale may actually be one of the wisest purchases you’ll make in a lifetime!

It’s a bit more complicated to enter into a short sale transaction, but just like all other mortgage arrangements, you will first need to get pre-qualified and approved for a home purchase.  If you are ready with the cash for the purchase, you may buy the home outright, but most experts will advise you to take advantage of the present buyer’s market to build your credit rating. A buyer’s market simply indicates there are more homes in the market than buyers looking to buy them - that’s one factor than brings the price down. The current market is really beneficial if you are buying a home.  Interest rates on mortgage loans are a lot lower, and no sub-prime loan brokers are around to lure you into sub-prime lending arrangements.

The seller’s lender also has to approve a short sale proposal you submit. Negotiations will take place between seller and buyer, and it can get complicated for a first time home buyer. That is why it is recommended that you work with a short sale specialist to get the best and most sensible purchase transaction.

Karl Hartley has been assisting home buyers find their dream homes for many years now.

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Foreclosure, the term might haunt many of home owners who got strangled in this economic crisis gripped the world. For some Foreclosure has been a nightmare not to be forgotten for lifetime. But the smart ones are those who opted for advice from short sales agents like Short Sale Scholars rather than depending on their fortune which didn’t have to be in their favor. The pain of Foreclosure is under-stable to those who have suffered this embarrassing situation. There are ways to get out of this and the foremost one is short sale.

short sale has been the best option for those who have listed their home in flat fee listing. flat fee listing is the best platform for short sale properties that have looked forward to get the money recovered by selling at price which is low from market but get enough to pay the mortgage and avoid Foreclosure. But the main job is convincing the lender to go for short sale rather than Foreclosure. This task is done by Short Sale Scholars who convince the lender to go for short sale process which will save them time, money and extra effort of recovering money through sale of that mortgaged property. With short sale the lender saves thousands of dollars they would have spent in repossessing of the home. Lender might get the lesser amount in short sale what the owner owes to them, but save a lot they would have spent in legal proceedings.

In this period of economic downturn if we look around there has not been decline in Foreclosure cases and to avoid these owners should definitely turn to flat fee listing agents. Short Sale Scholars will list their property in flat fee listing which will let them publicize it in the best way to sell it. short sales investors are always in search for short sale properties for their investment sake. They understand they can get these properties for less market value. In many cases short sales properties get good value for their property listed in flat fee listing. With that money property owner will be able to utilize to go for fresh lease or getting new property on mortgage.

Short Sale Scholars have played in important role to let people deter from Foreclosure which can be black day for any home owner. When a home owner chooses the option to go for short sale, he has really done a good to his reputation by stopping Foreclosure to take place. Normally, if we look around in short sales neither the lender benefits nor the home owner. But still they both are in win-win situation. For both lender and home owner it will be a wise choice to go with experienced short sales agent who can deal with the lender and do flat fee listing as well. In many cases short sale might take enough time if not taken care by Foreclosure experts. Help and proper guidance from short sales agents will ensure you a comfortable selling experience and avoiding Foreclosure.

To get in contact with Short Sale Scholars you can visit http://www.shortsalescholars.com to know more about short sales and http://www.flatfeelistingnow.comfor flat fee listing in MLS.

Short sale agents have played in important role to let people deter from foreclosure which can be black day for any home owner. Help and proper guidance from short sales agents will ensure you a comfortable selling experience and avoiding foreclosure

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If you’re a preforeclosure investor, with the tightening credit markets, you have no doubt noticed how much more difficult it is these days to close short sale deals.

 

In the past, plenty of hard money options, along with double closings and simultaneous closings made closing short sales a breeze. However, with the credit crunch, mortgage fraud, and tighter restrictions with lenders and title companies, closing short sales isn’t as easy as it used to be.

 

However, there is still one very simple and easy way to close your short sale transactions without using double closings, hard money, simultaneous closings, or even the over complex land trusts.

 

That method is using back-to-back closings to get all of your short sale deals closed and funded on time. Back to back closings take a short sale deal and turn it into two separate and distinct transactions. The first transaction is the homeowner facing foreclosure selling to the preforeclosure investor. The second transaction is the real estate investor then selling the property to the end retail buyer.

 

The easy, legal way for the real estate investor to do this type of transaction is through the use of an option contract. The option contract gives the real estate investor a vested legal interest in the property through an Option Agreement. The option is subject to the approval of the short sale.

 

Once the short sale is approved, then preforeclosure investor must complete the second transaction. That transaction involves the investor selling the property to an end retail buyer. The preforeclosure investor can legally sell the property, because he has executed an Option Agreement. This Option Agreement, which should be recorded at the local county courthouse for where the subject property is located, gives the investor the legal right to sell and market the property.

 

Before attempting to use a back to back closing, the preforeclosure investor should make sure that they have all of the necessary forms and documentation to remain in compliance. Without the correct forms, addendums, and notarized signatures, the preforeclosure investor risks the transaction not closing on time, or even worse, not at all.

 

Short sales do not have to be a complex transaction if the investor arms himself with the proper tools and techniques. Back to back closings are the simplest and easiest way to close short sale deals in today’s ever changing and volatile real estate market. They are widely accepted by lenders, title companies, and title insurance companies throughout the United States.

 

Terry Wygal is an expert on real estate investing in Short Sales and has several strategies for Closing Short Sale Deals and has been working with Justin Lee.

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