Updated 11/4 1PM It's DONE From U.S. News and World Report The deadline for first-time home buyers to claim the $8,000 credit would be pushed back to April 30, 2010. But the term "deadline" doesn't mean the same thing as it does in the current credit. The Senate agreement stipulates that buyers must have a sales contract on a house [...]
I was sharing my message with a real estate company on Wednesday and I mentioned that all indications are that banks will be leaning away from foreclosures and leaning toward 'short sales'.
After class, one of the agents came up to me and told me about one of her listings. The seller was behind on the mortgage and knew they would be hearing from the bank at any time. The other day the dreaded letter was received. However, to the seller's surprise, the letter talked about how to 'short sale' the house - NOT FORECLOSURE!
If you don't know Phil, he is a "short sale" specialist who has spoken all over the country on the subject. He made a great point in a comment to a post on this site:
Remember the banks are looking for maximum recovery relative to the new market values.They will do more short sale deals as long as your deal makes good business sense.
DON'T UNDERSELL the property . I find more and more that professionals fall in the trap of thinking it's a defaulted loan so it should sell way under market value. Not true. There are adjustments to be made for the short sale transaction.
Determing Price in this Market As a Realtor in today’s new economy, your role has changed dramatically from decades’ past. As recent as just a few years ago, most people viewed Realtors as information providers. Today, any person with an Internet connection can access the majority of the information they need to know about the real estate market and how [...]
The biggest mystery to me over the last eighteen months was why banks weren’t more receptive to the ‘short sale’ process. Studies had shown that it cost the bank more money if it foreclosed on a property than if they accepted a ‘short sale’. For homeowners, a ‘short sale’ makes much more sense for several reasons:
There is a much better chance that the deficiency judgment could be negotiated in a short sale versus a foreclosure.
A short sale would have less of a negative impact on the homeowner’s credit rating.
The homeowner would have at least some control over the timing of their relocation to new living arrangements.
A ‘short sale’ would allow the homeowner to leave with dignity.