When it comes to “Short-Sales” we are in the Wild, Wild West! Our “best practices” line of thinking is to present all offers to the Seller, they inturn sign “subject to lender approval”, as you might have with any other contingency in a contract (pysical inspections, loan or appraisal approval) and you have ONE accepted offer with perhaps a “back-up”. Now, does that happen? NOPE! Read the rest of this entry »
There is a reason a “Short-Sale” property will be on the market for 100 days–it is NOT being shown because it is listed as a “Short-Sale”. Many Realtor/Licensees try to diguise them under our confidential remarks by stating, “subject to third party approval” as an attempt for us to show these listings. If you look at the numbers of “Short-Sales” and the actual % of them which close, it is VERY discouraging. More disturbing to me are folks tracking “in-escrow” properties and pointing to the “bloated” numbers as an indication of an improving marketplace–nothing could be further from the truth. The “Short-Sale” stacks up in the “Continue to Show” category as they take months to close or NEVER close. They can take months to negotiate, are presented by Realtor/Licensee’s who don’t KNOW what they are doing, are NOT willing to spend the time or money not only in the daily follow-up needed ONCE it gets into escrow but also in any marketing to draw attention to the property. Read the rest of this entry »
The following was asked of other agents by another agent who is obviously ticked that she cannot get them to agree to a “Short-Sale” so she can get PAID!! I find the question absurd! Here is her question followed by MY reponse!!
Her Question: Short Sales, Are Banks opening them self up to a law suit or Class Action suit?
In a declining Market, a homeowner contracts with me to sell their property. I participate in the local MLS and offer a co-broke to a buyers agent, which is another contract. I list their property and some weeks or months later the bank(s) say “ok” but the “the agents involved in the transactions are going to lower their commission”, It dawned on me, a third party, the bank, is interfering with my contract with the Seller and my contract with the co-broker.
If this is happening to you,? If I understand a little contract law “conduct interferes with another’s economic advantage or expectations, they have committed a business tort”My reply: Read the rest of this entry »
Owe more than what your property is worth? Don’t know if you owe more? Then go to my “Market SnapShot” on the front page of this blog and you can see what your homes value is in today’s market. If you OWE MORE than what your property is worth and have NO assetts left after making payments for months, you might qualify for a “Short-Sale”. Go to the above web site: www.SonomaCountyShortSales.com for information on this process. And if you have any questions feel free to give me a call at: 800-959-7244 or locally at 707-322-8503.
The scenario as I understand it, is you have a second TD which is taking the hit and the first which is not. So the first doesn’t really come into the picture as they will just be “cashed” out when the sale goes through. However, you may wish to make sure you have a realistic price for your marketplace. The way things are going you could get into the frist real quick! Read the rest of this entry »
“Short Sale” - FACT SHEET - What they are and how they work
- by: Donald J. Leske II / Senior Broker & Short Sale Consultant
First of all, its a tough market for anyone who needs to sell a home right now. If you do not have to sell at this time or can avoid it, DO NOT sell your home unless it is unavoidable. Many thousands of home owners across the Nation are in or facing foreclosure right now. You may be one of the unfortunate home owners who are caught up in that struggle. If you are a home owner who wishes to avoid Foreclosure, you may qualify to use the Short Sale option. You will need qualified and knowledgeable expert assistance or help in putting together a “Short Sale Package” to present to the Lien Holder, such as:
A). A qualified and licensed Real Estate Attorney, who will know the steps and paperwork required in most cases, but shockingly enough it has been discovered that many do not know how to effect the actual sale in terms of finding a suitable buyer or with at least 50% of Short Sale offers failing to even be looked at due to improper presentation of a short sale package that is incomplete.., or someone else offering a higher price, most Attorneys will want to be paid up front or they will not get paid at all.
B). Hire a Licensed knowledgeable and qualified Real Estate Agent. A good, properly trained agent can do all the required paperwork plus most agents will not require any up front fees. Important fact; Most Listing Agents do not actually what they are doing when it comes to using this option. It has been calculated in training classes on this subject that up to 90% of Licensed Real Estate Agents do not know what a “Short Sale” really is, or simply do not know the fundamentals of how to manage one. Its a very tough way to go for home owners and if not done right they will loose their home to Foreclosure anyway. No one benefits from that. - In my humble opinion this is the most favorable choice, if you are able to choose a good & qualified Agent/Broker. Read the rest of this entry »
What do you need for an effective “Short-Sale” campaign? Read on! The critical item is to make sure your client’s “hardship” package from the lender has been scrupulously filled out with ALL of their questions completed. The client should also give you authorization to deal with the lender in their name. They then should submit it to the lender after making copies galore and also have one scanned in to reside on their desktop. You of course need the same copy on YOUR desktop. Read the rest of this entry »
If you are perhaps considering selling your proprty “Short” or for less than what you currently OWE on the home, this is called a “Short-Sale”. Before you do this check out a web site I’ve developed to answer your questions. It’s called: www.SonomaCountyShortSales.com and you can get familiar with the process and how this workout evolves. It’s not an end all but is an option. It is something you would do after speaking with your LENDER, Attorney and/or CPA!!
I think down payment is extremely critical nowadays with the dreaded appraisal box “Declining Market” being checked throughout many areas of the greatest state of California. In our area of Sonoma County when the appraiser checks this box we loose 5% of the appraised price right off the top!! So your buyer has automatically put themselves in a position where they AND the property must qualify differently. a 10% down payment now is 5%!! So your 20% I’m sure is being looked at by the Loss Mitigation department with longing eyes. But that’s not really the issue as they are so inundated and under siege they may not even get around to you!! Short-sales DO close but you need to be patient. If short-sales are dominating an area where you are looking I’d consider NOT buying in that area. I think we are just seeing the beginning steps of a long, ugly journey of to many homes being foreclosed upon. it is almost a societal norm to “walk” from your financial obligations. I would advise you to be extremely realistic about actually completing the “short-sale” escrow. You’ve got a 1 in 5 chance of doing a successful “short-sale” deal according to our MLS statistics. Find an REO (bank owned proeprty) or better yet a very motivated HOME OWNER SELLER who has equity and needs to sell. I search the MLS for these rarities! Good luck. Check out my “Short-Sale” web site. http://www.SonomaCountyShortSales.com It give you great advice and pitfalls to avoid.
Working with Bank Owned properties and/or “Short-Sales” its kinda like the Wild West out there nowadays. I think we all have “vented” our frustrations as how quickly contract law, ethics, timeliness, etc have all been thrown out the window by some of the Assett Managers for the duration of this shakeout in “Short-Sales” and Foreclosures. Read the rest of this entry »
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