Showing posts with label short sales. Show all posts
Showing posts with label short sales. Show all posts
Jan 5, 2011
Sep 26, 2010
Expect to Pay More For Bargain-Priced Homes
The best values in east Orlando real estate today are by far distressed sales (bank-owned & short sales). Buyers – primarily first time buyers & investors – are clamoring, competing & bidding up these distressed sales to an average of 1% over list in the past 60 days.
Competition for move-in ready, bargain-priced homes is fierce. When these homes hit the market, you can expect them to receive multiple offers in 48 to 72 hrs. Buyers, be prepared to write your offer for over list from the start. With the competition for move-in ready bargain homes, you’ll only get one chance to make your bid. These bank & short sale sellers will go forward with their highest offer immediately & you’ll be hitting the pavement again looking for the next best thing.
Competition for move-in ready, bargain-priced homes is fierce. When these homes hit the market, you can expect them to receive multiple offers in 48 to 72 hrs. Buyers, be prepared to write your offer for over list from the start. With the competition for move-in ready bargain homes, you’ll only get one chance to make your bid. These bank & short sale sellers will go forward with their highest offer immediately & you’ll be hitting the pavement again looking for the next best thing.
Sep 11, 2010
The Roller-Coaster Ride Called a Short Sale
Short sales purchases are not for the faint-hearted. While there is a possibility for a good price, there is also a good chance that the deal will not go through. Many cooks are involved in this stew. The buyer must negotiate the price with both the seller and the seller’s lender. At the same time, the seller must negotiate with the lender on the terms for forgiving the amount still owed on the mortgage. Meanwhile the bank is negotiating fees for lawyers and brokers. The process can take six to nine months.
Read full story at The New York Times
Read full story at The New York Times
Jun 25, 2010
200,000 Buyers May Lose $8,000 Tax Credit
Nearly 200,000 homebuyers could lose out on the $8,000 tax credit because they can't get deals done by the Jun 30 deadline.
What did they do wrong? They tried to take advantage of the distressed properties flooding the market.
For example, many are trying to take advantage of short sales, buying from sellers who owe more on their mortgage than the home is worth. In these deals, the lender has to agree to forgive the remaining debt, and that can take time -- at least two to three months from the time an offer is made until lender approval. And that assumes a relatively clean deal, in which there's no second mortgage. If there are any complications, expect six months or more.
Read full story at CNNmoney.com
What did they do wrong? They tried to take advantage of the distressed properties flooding the market.
For example, many are trying to take advantage of short sales, buying from sellers who owe more on their mortgage than the home is worth. In these deals, the lender has to agree to forgive the remaining debt, and that can take time -- at least two to three months from the time an offer is made until lender approval. And that assumes a relatively clean deal, in which there's no second mortgage. If there are any complications, expect six months or more.
Read full story at CNNmoney.com
May 30, 2010
Fannie Offers Spur to Avoid Foreclosure
Fannie Mae will make it easier for some struggling homeowners to buy houses in the future if they avoid foreclosure in the present.
Under rules released this month that will take effect in Jul 2010, some troubled borrowers who give up their homes by voluntarily transferring ownership through a "deed in lieu of foreclosure" or by completing a short sale, where a home is sold for less than the amount owed, will be eligible in two years to apply for a new mortgage backed by Fannie.
Under rules released this month that will take effect in Jul 2010, some troubled borrowers who give up their homes by voluntarily transferring ownership through a "deed in lieu of foreclosure" or by completing a short sale, where a home is sold for less than the amount owed, will be eligible in two years to apply for a new mortgage backed by Fannie.
May 13, 2010
Major Competition For Buyers in the $100s
For buyers in the $100,000 to $200,000 price range in east Orlando, they likely saw & felt the increased competition over the past few months while out house hunting & making offers.
57% of all east Orlando home sales in the past 60 days were for homes btwn $100,000 & $200,000. And 73% of these sales were distressed sales (bank-owned & short sale). This is an affordable price point for many buyers – singles & families - particularly first-time buyers who pushed to take advantage of the $8,000 federal tax credit that just expired Apr 30.
While inventory in the $100s is still high, over half of all homes are short sales - homes that come with a high degree of uncertainty for buyers with weeks (or months) of waiting for short sale approval from the existing lender. I am seeing my buyers turn away from short sale homes & focus exclusively on normal & bank-owned homes; they want/need a home now & the short sale buying process is too much of a gamble for many buyers.
The condition of these homes is only ‘fair’ for the vast majority of all home inventory – home needs a deep clean, yard is overgrown, carpet is stained/torn, doors ripped off hinges, ant trail through kitchen - things that turn the average buyer off. The average buyer wants a home that is move-in condition, so when that rare, affordable, move-in ready home hits the market, it will likely receive multiple offers & sell for over list.
57% of all east Orlando home sales in the past 60 days were for homes btwn $100,000 & $200,000. And 73% of these sales were distressed sales (bank-owned & short sale). This is an affordable price point for many buyers – singles & families - particularly first-time buyers who pushed to take advantage of the $8,000 federal tax credit that just expired Apr 30.
While inventory in the $100s is still high, over half of all homes are short sales - homes that come with a high degree of uncertainty for buyers with weeks (or months) of waiting for short sale approval from the existing lender. I am seeing my buyers turn away from short sale homes & focus exclusively on normal & bank-owned homes; they want/need a home now & the short sale buying process is too much of a gamble for many buyers.
The condition of these homes is only ‘fair’ for the vast majority of all home inventory – home needs a deep clean, yard is overgrown, carpet is stained/torn, doors ripped off hinges, ant trail through kitchen - things that turn the average buyer off. The average buyer wants a home that is move-in condition, so when that rare, affordable, move-in ready home hits the market, it will likely receive multiple offers & sell for over list.
May 3, 2010
Short Sale Buyers Need To Know
Buyers are attracted to short sales because of price – no one can compete with the lowball pricing of a distressed sale. However, there is more to consider than purchase price alone. Purchasing a short sale home is unlike any other home purchase (normal or bank-owned). Buyers need to armed with knowledge, be informed, ask questions, understand the process & know what to expect before writing an offer on a short sale home.
The questions below are fundamental information the listing agent should freely provide when asked. If the listing agent will not provide this info or answers ‘I don’t know’ to any of these questions - move on, find another home. Trying to pursue a short sale home without this basic knowledge is taking a stab in the dark & you will most likely end up empty handed after investing time, money & energy on the process.
Who is the existing lender? Every short sale transaction is handled on a case-by-case basis - no two short sale transactions are the same (even within one lender). Every lender has different timelines, requirements & business processes. Lenders have ‘reputations’ for their short sale handling: some lenders are aggressive in closing short sales within 60 to 90 days. Other lenders ignore the transaction or do not respond in a timely manner…then weeks (or months) later, the buyer tires of waiting & walks.
Is there one lender/lien, two lenders/liens or more? Closing a short sale purchase on a home with one lender/lien is a challenge in and of itself. Add multiple lenders/liens & the hurdle quadruples (not doubles!) in size. It is all too common for that second lender/lien to reject the short sale & derail the entire transaction. If the second loan is with the same primary lender, the hurdle becomes somewhat easier to navigate.
What is the expected response time on an offer? You find a home you want to buy, you make an offer & like all buyers, want to hear immediately if your offer is accepted...you want the home! With a short sale, response time to an offer is 45 days at best, though majority of lenders are still quoting 60 to 90 day response time. Are you prepared to wait around one, two, three months (or longer!) for a response?
Are there any offers currently being considered? Listing agents will commonly accept numerous offers in order to have ‘back ups’ for the all-too-common 1st buyer who walks away. Since short sales are considered by the existing lender on a case-by-case basis, a ‘back up’ offer cannot simply be inserted in the transaction if & when the 1st buyer walks. The listing agent starts from scratch with the short sale package, the ‘back up’ offer that has slipped into primary position & resubmits the entire short sale package for consideration.
The questions below are fundamental information the listing agent should freely provide when asked. If the listing agent will not provide this info or answers ‘I don’t know’ to any of these questions - move on, find another home. Trying to pursue a short sale home without this basic knowledge is taking a stab in the dark & you will most likely end up empty handed after investing time, money & energy on the process.
Who is the existing lender? Every short sale transaction is handled on a case-by-case basis - no two short sale transactions are the same (even within one lender). Every lender has different timelines, requirements & business processes. Lenders have ‘reputations’ for their short sale handling: some lenders are aggressive in closing short sales within 60 to 90 days. Other lenders ignore the transaction or do not respond in a timely manner…then weeks (or months) later, the buyer tires of waiting & walks.
Is there one lender/lien, two lenders/liens or more? Closing a short sale purchase on a home with one lender/lien is a challenge in and of itself. Add multiple lenders/liens & the hurdle quadruples (not doubles!) in size. It is all too common for that second lender/lien to reject the short sale & derail the entire transaction. If the second loan is with the same primary lender, the hurdle becomes somewhat easier to navigate.
What is the expected response time on an offer? You find a home you want to buy, you make an offer & like all buyers, want to hear immediately if your offer is accepted...you want the home! With a short sale, response time to an offer is 45 days at best, though majority of lenders are still quoting 60 to 90 day response time. Are you prepared to wait around one, two, three months (or longer!) for a response?
Are there any offers currently being considered? Listing agents will commonly accept numerous offers in order to have ‘back ups’ for the all-too-common 1st buyer who walks away. Since short sales are considered by the existing lender on a case-by-case basis, a ‘back up’ offer cannot simply be inserted in the transaction if & when the 1st buyer walks. The listing agent starts from scratch with the short sale package, the ‘back up’ offer that has slipped into primary position & resubmits the entire short sale package for consideration.
Apr 11, 2010
Year of the Short Sale
Homeowners who are underwater and struggling to offload their homes through a short sale may get relief soon through Home Affordable Foreclosure Alternatives (HAFA). Part of the government’s Making Home Affordable program, HAFA is designed to incent borrowers & lenders to avoid foreclosure. It takes effect 4/5/2010 -12/31/2012 and is aimed at homeowners who are eligible for a loan modification, but unable to complete the process.
Read the whole story from smartmoney.com.
Read the whole story from smartmoney.com.
Mar 28, 2010
Want a Short Sale? Best to Wait
Effective Apr 5, the current frustrating system of buying a ‘short sale’ home will change. That's when the federal government will begin to provide financial incentives to lenders to do more short sales. The rules also help standardize the process, so your chances of negotiating a distressed-property bargain will increase.
Read entire story from wsj.com.
Read entire story from wsj.com.
Mar 2, 2010
Best Selling Communities 2010
East Orlando is experiencing brisk sales this year with 307 homes and $46,000,000 changing hands. 75% of these sales were distressed (bank-owned or short sales). Top selling single family communities are:
Feb 19, 2010
Distressed Sales Still Dominate
In Jan, 73% of all Orlando home sales were distressed sales (bank-owned or short sale). The average home spent 90 days on the market before going under contract & sold for an average 94% of asking price.
“Homeowners should note that Orlando’s median price is being downwardly distorted by the significant proportion of distressed and bank-owned sales,” says ORRA Chairman of the Board Kathleen Gallagher McIver. “This distorted median price does not equate to an across-the-board loss of value for traditional homes in good condition.”
Learn more from Orlando Regional Realtor Assn.
“Homeowners should note that Orlando’s median price is being downwardly distorted by the significant proportion of distressed and bank-owned sales,” says ORRA Chairman of the Board Kathleen Gallagher McIver. “This distorted median price does not equate to an across-the-board loss of value for traditional homes in good condition.”
Learn more from Orlando Regional Realtor Assn.
Feb 15, 2010
203(k) Loan
There are many great, affordable available for sale in East Orlando and many of these homes are in need of repair. Due to cost and time, the average buyer shies away from these homes. When will we have the time to do necessary repairs and more importantly, where will we get the money?
For a homebuyer with the time and money to buy a distressed property, a 203(k) loan may be something to consider. With a 203(k) loan, a homebuyer can get one mortgage loan at a long-term fixed (or adjustable) rate to finance both the acquisition and the rehab/repair of the property.
Learn more from HUD.
For a homebuyer with the time and money to buy a distressed property, a 203(k) loan may be something to consider. With a 203(k) loan, a homebuyer can get one mortgage loan at a long-term fixed (or adjustable) rate to finance both the acquisition and the rehab/repair of the property.
Learn more from HUD.
Dec 1, 2009
Ease Short Sales?
The Obama administration laid out final guidelines yesterday that should make it easier for some financially troubled borrowers to sell their homes. Under the plan, borrowers will receive $1,500 from the government if they sell their homes for less than the amount of their mortgages. Mortgage-servicing companies will also receive $1,000 for each completed short sale.
Oct 3, 2009
Are Distressed Homes Worth It?
From wsj.com
Home buyers are finding that the battered real estate market offers just as many opportunities for headaches as for bargains.
Home buyers are finding that the battered real estate market offers just as many opportunities for headaches as for bargains.
Jul 26, 2009
Short Sale May Not Mean You're Home Free
From wsj.com
Financially troubled borrowers may think that foreclosure or a short sale of their home means their mortgage woes are over. Not necessarily.
Some homeowners are finding that when they sell their homes for less than the outstanding mortgages - a so-called short sale - their mortgage companies are going after them for some or all of the difference. Mortgage companies are also sometimes taking legal action to recover unpaid amounts after a foreclosure is completed.
Financially troubled borrowers may think that foreclosure or a short sale of their home means their mortgage woes are over. Not necessarily.
Some homeowners are finding that when they sell their homes for less than the outstanding mortgages - a so-called short sale - their mortgage companies are going after them for some or all of the difference. Mortgage companies are also sometimes taking legal action to recover unpaid amounts after a foreclosure is completed.
Jul 22, 2009
Tax Hits On Short Sales
From wsj.com
For a homeowner who is attempting to complete a short sale on the sale of their home, consider these examples of the tax consequences that you may experience.
For a homeowner who is attempting to complete a short sale on the sale of their home, consider these examples of the tax consequences that you may experience.
Jun 17, 2009
Short Sales: The Shortcomings
From smartmoney.com
Dealing with the burden of owning a home that's underwater, or worth less than the underlying mortgage, can be financially devastating. Go into foreclosure and the blemish will stay on your credit report for the next seven years. Try to eke by and you put the rest of your finances in danger.
One solution some struggling homeowners turn to in hopes of limiting the financial damage is a short sale. Even though short sales are often frowned upon by lenders, the U.S. government is trying to make them more amenable to such transactions.
Dealing with the burden of owning a home that's underwater, or worth less than the underlying mortgage, can be financially devastating. Go into foreclosure and the blemish will stay on your credit report for the next seven years. Try to eke by and you put the rest of your finances in danger.
One solution some struggling homeowners turn to in hopes of limiting the financial damage is a short sale. Even though short sales are often frowned upon by lenders, the U.S. government is trying to make them more amenable to such transactions.
Jun 6, 2009
Can You Handle A Short Sale, Buyers?
If you’re a buyer looking for a good value and have the time and patience needed to complete a short sale purchase, consider a short sale home in east metro Orlando. These homes represent the majority of available homes on the market, so there are numerous homes to choose from.
- single family under $200,000
- single family over $200,000
- townhouse
The majority of sales today are short sales. These homes were purchased by some hearty souls who chose to weather the ups and downs, the delays and the uncertainty of a short sale home - and they walked away with the prize - a good home at a great value. These buyers stuck it out, remained motivated and gave the transaction the time and patience needed. In other words, they rolled the dice and won.
Bear in mind that a typical short sale home requires quite a bit of elbow grease. The average buyer just isn’t cut out for a short sale, but if you’re the kind of person who likes to take on a project, it could work. A short sale home may be just what you’re looking for - something to sink your teeth into – cleaning, painting, yard work and general repairs. I call this “sweat equity”.
Purchase price = est. monthly payment (30 year, 5.375% fixed rate)
$150,000 = $840
$175,000 = $980
$200,000 = $1,120
$225,000 = $1,260
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