Okay can you believe it?  Some lenders are FINALLY getting it!  It is so muc more cost effective and such a better business decision to allow people to short sale (if its legit of course) versus going all the way through the foreclosure process!  I had a lender tell my homeowner they could not or would not modify their loan, but they would immediately stop any foreclosure proceedings and cooperate with a short sale if they followed these simple steps:

1) List with a realtor within 72 hours

2) cooperate with property being shown and move out in timely manner

3) maintain the property (landscaping, etc...) until close of escrow

4) allow lender to do an independent inspection (BPO) before and just prior to closing.

If the homeowner follows instruction the lender is giving the SELLER $5,000 at the close of escrow!  Upon contacting the lender I was told they WILL PAY A 7% real estate commission and will get me an answer on the offer within 10 workin days of submission. 

The only items needed for submission from me is Listing agreement, HUD 1, Purchase agreement, Authorization form.  All needed from the homeowner current pay stubs, current bank statements, hardship letter.  CAN YOU BELIEVE IT?

This will definetly help us get this market corrected for both buyes and sellers if lenders get on board like this.  Lets hope others follow along.

Inventory is (in my areas of service) are still low.  Buyers are still out there, and in a little while people in my industry become "ghosts" just like Halloween!  For you the seller that means opportunity!  There is opportunity if you are a seller with equity (hopefully) or if you are in need of selling and must do a short sale.  Reason is with the inventory low, buyers out there, competition is so great to FIND properties and people that are looking this time of year ARE SERIOUS!

Pricing your property is critical, and making sure you hire a Realtor and not a "ghost" is imperative.  Interest rates are low, and incentives to purchase are high.  I realize the financing is more difficult in most cases, but the reward is so great.  Take a long look at the situation and discuss with your Realtor.

If you would like to discuss with us contact at www.elginwalker.com or www.talktoelginnow.com We appreciate your time.

2010 is going to be interesting.  There are plenty of properties already foreclosed upon not coming to the market for various reasons, but they have to come.  There are plenty of people attempting Loan modifications that should be able to get it done, but are not, and some that really never had chance, but are trying will come to market, and for those who I speak with on the inside, short sales WILL become the dominant market in sales before 2010 ends and probably into 2011 (in some areas).

That is an interesting situation.  It will be interesting to see how the banks "suggest" sellers short sale, streamline the process, AND "recommend" realtors they approve of.  Lots going on behind the scenes.  It appears there are more questions than answers right now, but I am sure more to come.

One thing I believe times are really interesting, and sellers right now you do have some options, whether you have equity or are a possible short sale.  Look into all your options.

This is a question I get alot.  The answer is it depends on your reason for selling, and what your time is for hanging onto the property if the market doesn't recover or dips down further.  You will get alot of opinions on this, but there are some basic facts:

1) There are plenty of foreclosures the banks have and have not released to the market place yet

2) There are plenty of properties in the NOD or NOS stage that ARE NOT going to be loan mods so they will be SHORT SALES OR REO'S

3) Sooner or later the market place will have to get these properties through the system because THERE IS ANOTHER WAIVE OF "TOXIC" LOANS coming in 2010-2012!

What does that mean for you the standard seller?  It means right now while the inventory is lower (at least in the areas I service) you have an opportunity to maximize your sale price IN THIS MARKET and more than likely this will be the best price you will see for your home in the least amount of marketing time you will see for awhile.  I believe if you have a long time frame and can hang on to a piece of property you should probably should, but if realistically you see a small window period of holding the property YOU SHOULD CONSIDER SELLING IT.  The odd are in your favor currently.

The First Time tax credit ends December 1st 2009!  That means your escrow needs to CLOSE on or before that day!  Yes there is talk of extending it but currently that is not the case.  The tax credit is for $8,000.  Lets take a look at what that really means.  You could purchase a property around $225,000 and your 3.5% FHA downpayment is going to be a little under $8,000 and if you can get your closing costs paid you are now effectively purchasing the property with little to no downpayment!  Okay it can be better!  The interest rate is a 30 year fixed rate loan that is somewhere in the high 4 to low 5% range!  W-O-W! Whatever is keeping you on the fence, GET OVER IT! Dont sleep on these opporunities.  They wont be here forever!

Opportunity is knocking....are you answering the door or are you allowing other people, the media, family, etc...to STEAL YOUR DREAMS!

There are some clients crying the blues and are in astonishment.  They have waited 3, 4 ,5 , 6 months or more, they just got great news they loan modificaiton is now approved, but their monthly payment has just risen!  What kind of crap is the bank trying to pull?  Well a heads up that honestly I did not intially think of myself.  If you had a payment one option loan or some form of one and your payment was based upon 1.25% or something like that, and now you get a 3.125% 30 year fixed loan, guess what?  Payment is consistent, but its higher!

The only way to insure this from happening is with a principal reduction and I am not seeing banks do that very much.  I am not saying never, but it appears the banks (that do work with you) are helping with interest rates, payment schedules, even deliquent payments, BUT NOT REDUCING WHAT IS OWED TO THEM.

As a consumer while you are deciding what is best for you and your family, keep this in mind.

Okay its been 2, 3, 4 months and FINALLY, you look in your email or efax and guess what THE APPROVAL LETTER FROM THE LENDER ALLOWING YOU TO COMPLETE YOUR DISCOUNTED PAYOFF (short sale)  That's great we are ready to proceed now correct?  Well maybe not so fast.  Some of the lender are putting language in their approval letters giving the bank the right to come back after the seller any deficiency amounts at a later date.  Hey no big deal they NEVER come back right?  There is too many they aren't equipped to go AFTER so many customers later, heck it took them 6 months just to do the deal!  Maybe, but what if?????????????

Lets say you cant sleep, it is late at night and all of sudden you see on T.V, Did you do a short sale with your lender?  Did your REAL ESTATE AGENT have you sign an approval letter giving the bank the RIGHT to collect deficiency amounts from you in the future?  IF SO YOU COULD BE ENTITLED TO DAMAGES.  Call the Law Office of I am getting Ready to Screw Another Realtor 1-800.........

If you think this is not coming you also thought property values never go down! This is not meant to scare you from either helping customers with short pays or if you need to do one as a consumer, you don't do one.  It is really meant so you understand the SERIOUSNESS of short pays AND keeping the customers best interest at heart!

You get an approval letter such as that what do you do?  I think that varies from situation to situation, but the LEAST you should do is really explain to the seller their rights AND what their rights are if THEY WALK AWAY.  I know after 6 months working on the deal the LAST THING you want the seller to do is walk away, BUT that might be best for them.  The least thing you can do IS LET THEM UNDERSTAND AND MAKE THE BEST DECISION FOR THEIR FAMILY!

I would also suggest rolling up your sleeves and going back to the lender and fighting for your seller to receive a proper approval letter that allows them to close escrow knowing this deal will no longer hang over there heads.........Just a thought

Weren't those the headlines?  Wasn't that the word of the day?  You still hear that all the time. We haven't bottomed yet!  Wait to buy.  Don't catch a falling knife (I think I used that one...hahahaha) We are witnessing a collapse of Real Estate as we know it!  Let me ask you a question, Have you or anyone you know actually attempted to purchase a home lately?  If not let me tell you what those of us that actually WORK in the field.  In the areas I service, if you are looking at REO's, Short Sales, Standard sales (the few there are) you will find the pick of inventory low, and you will find the competition to purchase stiff.  I am finding very few homes sell less than their listing price, NOT in multiple offers!  Yes I said not in multiple offers and above asking price!  Does that sound like the real estate market has collapsed?  Yeah it doesn't to me either.  Look I do not know were the market is going to go, nor do I know what the market has coming a head.  I do know what is going on in the know.  You can sit back and listen to whole bunch of people not in the trenches everyday (if ever) or you can pay attention those of us in the game with a pulse on the market.  The choice is yours.

Is the crisis over?  Are we just around the corner from doom and gloom?  The real estate market will collapse ANY MINUTE NOW!  Is the what you are hearing?  Worse than that is this secretly what you are thinking?  I have to tell you its hard not to feel that way.  I will also give you it is tough all over.  The economy has seen much better days.  Well let me talk to you about what I see every day in the field of what I do to make a living.

I have buyers, all pre-qualified prepared to purchase and guess what?  No inventory to fit their needs.  Oh I have another one, my buyer makes offers at list price on a property on the market less than 3 days.  Our offer was submitted to the bank, and our offer was number 16!  We raised our bid 10% and still DID NOT GET THE PROPERTY!  10% above its list price!

You better stop listening to those who jump on the bandwagon and don't know what really is going on.  If you continue on that path you will miss out on great opportunities!  I can guarantee that! I do not know if we are at the bottom etc....I do know we are at levels that if you have a proper plan, get into something you can afford and afford longer term.  YOU WILL WIN!  Think about it.

Clients and friends are calling me all the time asking me, Whats next?  Are we at the bottom? Will interest rates go up?  Are there more foreclosurses coming? Should I buy now? Should I sell now? Truthfully the answers are generally I do not know!  There are no soothsayers in this business, although some may self proclaim to be.  We can only go by trends, data, and history.

Each person, each family has a unique situation that requires carefully examination before developing a plan on what to do.  That will determine, What's Next!  One thing I do believe is good or bad, if you do nothing, you get nothing!  Dont allow the market, the media or other people to keep you from making decisions that need to be made.  Whether you should sell and move up to another home, whether you should take that job and relocate, should you short sale rather than walk away, maybe you need to walk away versus short sale.  I believe you should contact professionals, interview them and allow someone to help you make a plan that gives you the opporuntiy to meet your goals, and/or change your quality of life.  The Elgin and Pilar Walker Team are there for you with that.