Active Properties

Tara Nicholle Nelson begin her article of short sales complaints with the following introduction:
Roughly forty percent of the homes for sale on today’s market are short sales and foreclosures! Distressed properties are well known for their value (a reputation which is sometimes accurate, and sometimes not), but they also have a reputation for causing buyers to become distressed, too!
Having been through the short sales process with my clients, Tara’s article is a must read if you as a buyer are contemplating the purchase of a ‘short sale’.

Great detail on the following (5) key ‘short’ points;
- 1. Run-on (and on, and on) escrows.
- 2. Bank won’t take lowball offer.
- 3. Last minute postponements/cancellations.
- 4. The bank’s black box.
- 5. Double standards.
and the key feataure of the article, responses to the complaints
by providing a detailed: “Avoid the drama by:” suggestions

Ask Tara @Trulia provides insight, plus how to “Avoid the Drama” regarding Short Sales and REOs.

Roughly forty percent of the homes for sale on today’s market are short sales and foreclosures! Distressed properties are well known for their value (a reputation which is sometimes accurate, and sometimes not), but they also have a reputation for causing buyers to become distressed, too!

Transactional snafus, last-minute surprises and long, drawn-out escrows that never close seem to be par for the course.

Instead of avoiding these properties altogether, get educated about the most common dramas that go down in these deals, and how you can avoid falling victim to:

1. Run-on (and on, and on) escrows.
2. Bank won’t take lowball offer.
3. Last minute postponements/cancellations.
4. The bank’s black box.
5. Double standards.
Here’s the full information:

What is a Short Sale?

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than what the home is worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here’s a more official definition:

A homeowner is ‘short’ when the amount owed on his/her property is higher than current market value.
A short sale occurs when a negotiation is entered into with the homeowner’s mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then ‘sold short’ of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into all of the following circumstances:
Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
Monthly Income Shortfall – In other words: “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals.
more details, click here: