Posts Tagged “Sellers”
Dec
30
2011
 
Is it common for short sales to close WITHOUT a seller’s contribution for CLOSING costs?Posted by Usual in Short Sales, tags: close, closing, common, Contribution, costs, Sales, Sellers, Short, withoutI understand that 3% or 6% is the standard seller’s contribution. If a seller agrees to this contribution, can their lender still decline? Ie, Can their lender offer 0% contribution towards closing costs?
Jun
09
2011
In one sentence, please state the benefit that short sales offer sellers?Posted by Usual in Short Sales, tags: benefit, Offer, Please, Sales, Sellers, sentence, Short, StateWhy would sellers want to deal with buyers who use short sales?
Dec
01
2010
Top 5 Short Sale Myths: A Message to Santa Maria Short Sale SellersPosted by Usual in Short Sales, tags: Maria, Message, Myths, Sale, Santa, Sellers, ShortTop 5 Short Sale Myths: A Message to Santa Maria Short Sale Sellers Why Submit Articles? 0 && $.browser.msie ) { Register Email Home Page > Finance > Real Estate > Top 5 Short Sale Myths: A Message to Santa Maria Short Sale Sellers Top 5 Short Sale Myths: A Message to Santa Maria Short Sale Sellers Posted: Oct 28, 2010 |Comments: 0 | ]]> Top 5 Short Sale Myths: A Message to Santa Maria Short Sale Sellers By: Tni LeBlanc About the Author Tni LeBlanc, JD, M.A., e-PRO, CDPE (ArticlesBase SC #3563941) Article Source: http://www.articlesbase.com/ - Top 5 Short Sale Myths: A Message to Santa Maria Short Sale Sellers
Top 5 Short Sale Myths: A Message to Santa Maria Short Sale Sellers Myth #1: I have to be an owner occupant to qualify for a short sale. Where did this myth come from? I’ve done short sales for investors and non-owner occupants. They happen all the time. I just listed a home where the lender told the owner to do a short sale on their rental property. You can sell your investment or rental property via short sale. Myth #2: I’m upside down and that is not enough to qualify for a short sale. First off, rarely do people want to short sell just because they are upside down. Usually there is a trigger: a job loss, interest rate change, divorce, etc. Every lender uses different criteria to approve short sales. The handwriting is on the wall, and some lenders understand that being severely underwater means you are at risk for default later on down the road. Many lenders prefer short sales to loan modifications. Being upside down impairs your ability to sell your home which can be a financial hardship. Myth #3: I need to be bankrupt to qualify for a short sale. In cases where a borrower has assets, many times banks will negotiate a small contribution in exchange for approving a short sale. They don’t advertise this fact openly, but it occurs with regularity. Sometimes, no contribution from the seller is required at all. You don’t have to be completely broke to qualify for a short sale. Myth #4: I need to miss payments to qualify for a short sale. Banks approve short sales without missed payments. This is also better for your credit. If you know that the time is fast approaching that you will not be able to make your payments, you can approach your lender about a short sale while you are still current. Myth #5: I can’t afford to pay a real estate agent’s commission so I can’t afford a short sale. Typically, you don’t have to pay your real estate agent’s commission when going through a short sale. All the major expenses of selling your home are included in a short sale. This includes escrow, title and real estate commissions. The real estate commission is deducted from the lender’s “net recovery” as an expense of sale. * Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement — this article does not offer legal and tax advice Retrieved from “http://www.articlesbase.com/real-estate-articles/top-5-short-sale-myths-a-message-to-santa-maria-short-sale-sellers-3563941.html” (ArticlesBase SC #3563941) Tni LeBlanc - Tni LeBlanc, JD, M.A., e-PRO, CDPE ]]> Rate this Article vote(s) Feedback Article Tags: Latest Real Estate Articles Common Short Sale Myths Exposed Sellers and Real Estate Professionals alike are often confused by how to handle a short sale. Do you have to be late on payments? How will the commission get paid? Find out here! By: Finance> Short Sales In Orlando Florida Series - Lesson 4 - Personal Considerations In today’s real estate market more and more homeowners are utilizing short sales as an option to sell their home, especially in Florida. The housing boom was simply unsustainable and the crash was dramatic. If you are a homeowner who needs to sell in today’s market, one must be knowledgeable or at least aware of you options. This series is to educate and answer some of the myths about short sales. If you have questions feel free to contact us. Enjoy. By: Finance> The 3 Biggest Misconceptions That Real Estate Agents Have About Short Sale Listings With a little patience and a little creativity you can overcome some of the shortcomings of listing pre-foreclosure/short sale properties and make a lot of money by helping homeowners get out from underneath the huge burden of debt and stress they are under. By: Finance> Short Sales Learn How To Make Money In Short Sales Short Sales - learn how to make earn big profit in short sales through short sale training. By: Business> Program HR 3648 | The #1 Myth About Short Sales http://www.programhr3648.org - Program HR 3648 busting the #1 Myth will empower agents to help more people like Barry. Learn more at http://www.realtown.com/programhr3648/blog/short-sales-and-the-bpo By: Short Sales, a term you hear often, but do you really know what a short sale is? Do you know the techniques being used to save thousands of homeowners from foreclosure? If you owe more than your home is worth, are behind in your payments or facing foreclosure you must read this article. In it we cut through many of the myths about short sales and provide the homeowner the tools to more clearly understand available solutioins. By: Finance> Dispel These Myths About Short Sales And Foreclosures Among the many solutions available to you if you are facing foreclosure is a short sale. Individuals and companies that promise fast foreclosure help often fail to inform you on the damage a short sale will have on your credit report. A foreclosure will remain on your credit score for… By: Cheap Mexico Real Estate in Yucatan – Your Dream, Affordable Many people dream of living on the beautiful beachfront areas of the Yucatan Peninsula, or in the charming colonial city of Merida; something that many buyers are not aware of is that quality cheap Mexico real estate is available! By: Finance> Where’s Campeche? How Cheap are the Cheap Mexico Beachfront Lots? Have you heard about Campeche? Have you heard about the cheap Mexico beachfront lots for sale there? If not, it’s about time you did. By: Finance> A Playa del Carmen Villa Near the Beach – Your Dream Home How do you imagine your dream home? Does it include any of these items? Consider how these Playa del Carmen villas just north of downtown meet each of the requirements to offer your dream life near the beach! By: Finance> The Advantages of Playa del Carmen Real Estate At a time when there are so many options available, not only in Mexico and North America, but throughout the world, it’s important to know what distinguishes Playa del Carmen real estate from the other options. By: Finance> The Lure of Cancun Real Estate – Mexico Condos at their Best! Cancun real estate holds a special lure. Founded 40 years ago as Mexico’s first Integrated Resort Community, Cancun has been very successful in continuing to offer condo owners increasing luxury and conveniences. By: Finance> People looking for a way to invest their money are beginning to consider flipping homes with all the action going on in the housing industry. What do you need to do to become a house flipper? By: Finance> Freddie Mac Homes: A Leg Up for Low Income Families Freddie Mac homes are the government’s means of providing affordable homes to low income families. Along with its sister company Fannie Mae, the company works at funneling funds to enable lenders to extend credit to homebuyers. By: Finance> Foreclosed Single Family: Securing Your Future Affordably Foreclosed single family homes are perhaps the most popular type of property in the market today. This is an indication of the increasing number of young families starting to secure their future. By: Finance> 4 Biggest Mistakes Short Sale Sellers Make Common mistakes that sellers make when attempting to short sell their home. Short sales have common pitfalls. This article defines 4 typical pitfalls that sellers should avoid. By: Finance> Top 5 Short Sale Myths: A Message to Santa Maria Short Sale Sellers There are many myths out there about short sales. This article seeks to dispel some of them. 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Author Navigation My Home My Home Tni LeBlanc has 2 articles online Articles Categories Advertising Accounting ]]> Need Help? Site Links Webmasters Business Info Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License. Tni LeBlanc, JD, M.A., e-PRO, CDPE
Aug
29
2010
Short Sale Tips for Buyers and SellersPosted by Usual in Lender Approved Short Sales, tags: Buyers, Sale, Sellers, Short, TIPSA short sale takes place when the value of the property declines to be lesser than the remaining value of the mortgage. The homeowner decides to sell his property because he can no longer keep up with the monthly payments. In this case, the approval of the lender has to be approved. This is necessary because he has to agree to receive a discounted payment of the mortgage loan. This makes it difficult because the lender often rejects the proposal of the seller. This is why you have to know how to present a good short sale package. It should convince the lender to approve the proposal. First, you have to understand that the lender wants to minimize the loss, so make sure that you have a decent offer for the property. Make sure you have all the requirements as well. How to qualify There are various requirements needed to qualify for a short sale. First, there should be a decline in the property value. This can happen if there is decline in property prices in your area. This may also occur if you neglect your property. Aside from the price, the lender will also check your mortgage. It should be near default or in default. This can be a result of a hard time that you or your family is facing. Another important requirement is the hardship letter. This should explain the hard time you are experiencing which caused you to miss your payments. Not all hardships are acceptable for the lender. You cannot qualify for a short sale if you are unhappy with the current home you are in or that you want to relocate. Some of the acceptable incidences are unemployment, death in the family, divorce and health expenses. The lender will also require your financial statement. The lender will check if you have other assets. They do this because as much as possible, they want to avoid the short sale. They do not want to resort to this because of the significant loss they will be incurring. Additionally, there are sellers who are doing this to avoid their responsibilities. Some just want to get an approval so that they can move to a more beautiful home. If you want to apply for a short sale, remember to be patient as this can take longer. You might even need to reapply for it. For the buyers If you are a buyer, purchasing a short sale is a good deal. It is not only cheap but it also shows a lot of promise. However, you need to conduct a research before you make a purchase. It is also essential that you know how much the remaining balance of the mortgage is. This will give you an idea of how much to offer the seller. Finally, if you are going to hire an agent, see to it that he is experienced with short sales to be able to represent you properly. A short sale property is a good investment. However, you have to be careful when making the purchase. If the lender rejects the first proposal, you need to be ready to increase your offer. There are interesting Dobson Ranch Mesa Homes you can visit. You may also be interested in Short Sale Property in Ahwatukee AZ as well as in the Short Sale Real Estate in Gilbert AZ.
Jul
29
2010
How long does a seller’s bank take to approve the short sale of a preforeclosure house?Posted by Usual in Bank approved short sales, tags: Approve, BANK, House, long, Preforeclosure, Sale, Sellers, Short, takeIt can be very frustrating to the buyer who already has his loan ready to close and is on the contract to buy that house. What would you advise that buyer to do?
Jun
19
2010
Short Sale-a Means to a Good Deal for Buyers and SellersPosted by Usual in Lender Approved Short Sales, tags: Buyers, deal, Good, Means, Salea, Sellers, ShortIf 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. Take a look at Santa Ana, CA real estate for short sale properties. Consider South Gate homes for sale for short sale listings. Browse Sun City houses for sale for short sale homes.
Jun
06
2010
A Short Sales Guide For SellersPosted by Usual in Lender Approved Short Sales, tags: Guide, Sales, Sellers, ShortLet’s say that your mortgage is for $300,000, but thanks to the housing slump, your property is only worth about $280,000 in today’s market. You’re now what is referred to as being “upside down” on your mortgage—owing more than your home is worth. This is a problem in itself, but if you’re also having trouble making your monthly payments, you could soon find yourself in the same position of thousands of Americans who are facing foreclosure. A daunting prospect indeed, but there are alternatives. Refinancing your home loan for instance, is one way to get a bit of breathing room. Some lenders may also consider temporarily halting or reducing your mortgage payments, which would give you a bit of time to recover from whatever hardship you’re facing. And there’s also the option of trying for a short sale. A short sale is when you sell your home for less than you owe the bank. Using the same numbers as above, say you owe the bank $300,000, but you know that the house will only reasonably fetch about $280,000 from a buyer. If you sell your home for that amount, you’ll be short $20,000 on your debt to the bank. While the bank naturally wants its entire $300,000 back, they know they can’t squeeze water from a stone. If you can’t afford to make your monthly payments, the bank will have to face two options: accept a short sale or go ahead with a foreclosure. A foreclosure means that the bank will repossess the home and try to sell it themselves. This is a risky option for the bank because foreclosures are time consuming, and often result in the bank taking a big financial loss. In a short sale, while the lending company will not recoup all monies owed, they may be able to recover more of their money than if they went the foreclosure route. Why would a seller want to do a short sale as opposed to a foreclosure? A short sale typically does less harm to a person’s credit score than a foreclosure, which is second only to bankruptcies in terms of credit damage. Depending on the terms of your agreement with the bank, you could also walk away with the remaining debt forgiven, which essentially gives you a fresh start at life. Your lending company holds all the power when it comes to a short sale. They decide whether they’re willing to accept one in the first place, and what the terms of the sale must be. They determine the viability of a short sale based several things. First, they need to be convinced that you’re not simply shirking your responsibilities, but are actually facing a hardship. According to most banks, legitimate hardships include the death of your spouse, unemployment, illness, and divorce. If you’re interested in trying for a short sale, you need to consult a real estate agent or attorney who has experience with short sales. They can advise you on the documents and procedures involved. You’ll usually need to supply the lender with two years’ worth of income records, as well as pay stubs and bank statements. It’s also a good idea to gather a list of all your income and expenses to demonstrate the severity of your financial distress. Aside from the hard numbers, you will also need to write a letter detailing your situation, and how desperately you need the bank to forgive your debt. Experts recommend that this letter be brutally honest and heartfelt. If you’re having trouble feeding your children, tell them. Even if you feel ashamed of your financial situation, you need to communicate with the bank. While a short sale is primarily a business decision for the bank, they will take your needs into consideration, and look more kindly upon a short sale if they see that you’re truly struggling to make it. A short sale is a lengthy process, taking between one and four months on average for the bank to approve a short sale offer. If the offer the buyer makes is lower than the bank is willing to accept, they will deny your request for a short sale, and proceed with a foreclosure. If you have professionals to guide you, you may escape the dark cloud of foreclosure, and enter the slightly brighter skies of a short sale. Just be patient, honest, and have all your paperwork prepared well in advance. Amerivest is a realty company based in southwest Florida, and specializes in Naples FL real estate. To view properties in the Monterey real estate market, please visit us at NaplesGuru.com.
Jan
18
2010
Real Estate Sellers Revolt! Rejecting Ridiculous OffersPosted by Usual in Licensing Real Estate Road Kill, tags: Estate, Offers, Real, Rejecting, Revolt, Ridiculous, SellersIt is in the past that we find the quaint efficient way to handle the negotiations of the real estate contract. The simple concept of ‘in good faith’ has (over time) been strengthened by the holding of earnest money. Earnest Money and Faith are held hand in hand. Hence, the seller and the buyer have typically agreed to earnestly act in good faith in order to make a real estate deal happen. The Realtors and the real estate attorneys involved in the transaction take on the roles of coach and referee, while the mortgage lender provides the ball. Pulling a fake out will be grounds for a penalty, so remember to act earnestly (and always) proceed in good faith. The subject at hand, has to do with today’s real estate market. Unfortunately, the adjustment has not made it over to the buyers side. And, here, below, is a look at how this type of transaction works in real life: The sellers get the offer, it’s 30% below list price. The sellers counter offer looks something like this: The buyer then cops an attitude: As the Realtor, let me interject: The buyer: A thought about this. The sellers may be facing a difficult selling market, but unless you are a cash buyer, the seller has to take it your offer on good faith; that you will earnestly march forth and provide the lender with all the documents that they may need to get you (the buyer) through to the closing table. What if sellers took the stance that all buyers (except cash buyers, got to love’em) were unqualified because of new strict lending policies or looming layoffs. Yes, you may qualify now, but rumors that the ax is falling on more jobs means that you may never close.The negotiation of real estate purchases is still a two way street. People typically buy houses to make them into a home. If you are an investor, stick with the foreclosures. If you are honestly looking for a house for you and your family to call a home, then proceed in such a manner. Again, from the sellers: This conversation, sprinkled with a little attitude and you have a perfect recipe for a terrible sandwich. One that will leave a bad taste for real estate in everyones’ mouth. Home is where the heart is. Ahh, I thought so. Real estate is a good sound investment. The home buying and selling transaction is like none other. It is tied to heart strings…emotions. If you find a home you love, proceed forward with your negotiations, and be realistic. Eventually, the shoe will be on the other foot, and someday you will be the home seller. You will find yourself hoping that someone will come along and buy your home, and that they too, will love it like you do. Claude Cross is Broker/Owner of Homes By Cross. Specializing in Charlotte NC Real Estate and Relocation since 1994.
Oct
13
2009
Outrageously Low Real Estate Offers are Now Getting a Second Look From Sellers and LendersPosted by Usual in Bank Owned REO, Bank approved short sales, Lender Approved Short Sales, Real Estate, Short Sales, foreclosures, tags: Estate, From, Getting, Lenders, Look, Offers, Outrageously, Real, Second, SellersForeclosures in the country have pushed past over one million homes. Couple that with folks just trying to sell their home for whatever reason and there is a glut of homes in many markets. While this level is high it is within many historical swings of the past. The point of this discussion is to point out the incredible buyers market that exists in many areas of the country. Arbitrage in the financial markets takes advantage of price differentials between more than one market. Money is made taking advantage of the differences. In real estate, with the benefit of trained Certified Property Managers and the like, there exists the potential to invest in areas, which are depressed and hold good value in the future. Like examining the financials of a company so the same type of play can be marshaled with investment situations across the country. In crafting offers, returns in the 25% plus range over say a two-year period must be factored in even consider the ramp up into these venues outside of one’s backyard. Finding deals in the backyard would be best, however, lacking that one must look elsewhere. In an example of buying a rental condo in a resort area that has abundant inventory and has plenty of foreclosures forcing prices down some investment play may be possible. If a rental condo is listed at $300,000.00 and has and existing mortgage of $280,000.00 with a pending foreclosure pressing the owner this might be a deal worth looking at. Owners with ARM mortgages with accelerating payments and/or other pressures have come to bear on owners who find themselves in a fix. Many of these condo rental properties with onsite rental offices make for a decent cash flow. In some water front properties the gross rents will approach $30,000 plus per year. In trying to negotiate with a lender with a foreclosure action in hand it is best to have ones own financing or cash to bring to the table. That lender will not cut the price (mortgage) if they are being asked to hold the mortgage. In this example, a proposed “Short Sale” would be probed as a possible action. In this case, the owner receives nothing. The owner may save a foreclosure nick on their credit but that’s it. The lender on the other hand will be offered an offer in the $240,000 range IF the return is figured. The lender takes a $40,000 plus hit on the deal with additional costs for legal fees, past payments, late charges, etc. in addition to the “short” settlement. This is a big hit for the lender. However, Real Estate Owner (REO) properties have to be liquidated. If the lender foreclosed and sat on the condo for another six months and took another hit at sale time, the proposed $40,000 plus hit starts to look pretty good. An investor needs to determine the condition of market place in a year or two. The economy still has strength, employment is strong, so then it is a question of what will be happening in the market down the road. If that analysis comes up positive then one would continue on the track. An outside force on these waterfront investor condo properties will come to into play as when possibly the dollar falls against the Euro or Pound. Those buyers coming into the market with stronger currencies will see these situations as strong buying opportunities and prices may spike back up. A Realtor needs to market to these buyers immediately. In addition, with stronger currencies abroad vacations in these waterfront condos can almost look cheap with a good deal of safety. A few years down the road, the rentals could be pumping and the demand could be up for these specific properties which can be rented when not being used by the owners. Naturally, there is no guarantee that this will play out exactly that way, but it is an educated analysis basis on the facts currently in hand. When depreciation, interest deductions and other factors are put into the equation, perhaps a $40,000 “short” is not enough. Perhaps it will take a little more. In any case, an investor’s numbers should be shared with the lender to shore up the case for the “short sale” and give a little cover to the work out specialist who is signing off on the deal. The lender will have several BPOs (Broker Price Opinions) of the value as several AVMs (Automated Value Models) to further peg the value. However, if things have not been moving with say six months exposure to the market place, then the lender may be compelled to pull the plug. Much like when the accelerated depreciation plug was pulled in the 1986 Tax Code, properties must stand on their own. Limited Partnerships and REITs were being offered with low (50% LTV) leverage to realize any kind of cash flow. In this case, a highly leveraged mortgage would insure a negative cash flow. Thus the return on investment will be calculated on a low leveraged situation. The 25% plus return then would be possible. Each case needs to be turned inside out before making an offer. If there has been several price reductions over the listing period with offers of paying all the closing costs and such, then this will garner further investigation. To save a lot of time, the question phased as: “To save us both a lot of time, I’m looking to buy at a deep discount from a motivated seller or a lender who will consider a deep “short sale. I’m very liquid in cash and can close quickly. Is there any shot at a deal on this property?” If not move on. This glut of properties won’t be here forever. It took a few years to absorb the Savings and Loan fiasco and major write-downs that took place, but it was absorbed and money was made by many. The original owner being in an overly leveraged mortgage situation may have cast the initial foreclosure situation. High leverage kills when the underlying financing is an Adjustable Rate Mortgage in a rising interest rate market. Cash flow disappears. The bleeding begins. It’s no place for the faint of heart. Like arbitrageurs in the financial markets, it takes a strong will, liquid cash and a good feel for the current market and the future market and how it will all play out. The climate for a play is here and now in some targeted areas. Over 1,000,000 foreclosures, a glut of listings on the market, a falling dollar making attractive situational buys to foreign borrowers makes for a play now. “Knock, knock.” “Who’s there?” “Deal” “Deal Who?” “To Deal Or Not To Deal, That Is The Question” Dale Rogers All rights reserved. Article may be reprinted as long as the content remains intact, unchanged, and all links remain active. Dale Rogers is a thirty-year mortgage veteran and frequent contributor to the Broken Credit Blog. The BCB is a free website created to assist the general public with information about credit repair and responsible mortgage lending. |
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