In response to another Realtor's request for assistance with short sales, I wrote the following note. I thought it might be helpful to anyone just starting short sale work.
1. The 1099 issue is a whole study in itself. Generally, if the owner is living in the house and has the homestead exemption, there will not be a 1099. Again, in general, an investor will get a 1099 for the bank's ENTIRE loss, including fees, atornies, etc. There are many, many exceptions and I suggest you get a copy of the current Federal rule, which has been posted by several people on Active Rain. As noted, cash out re-fis will usually trigger a 1099 unless the bank has a policy against it.
2. Setting a short sale price is a study. I personally have never had a bank tell me what they will accept on a short sale until we had a contract signed by buyer and seller and we had a bank appraisal (and BPO) in hand. Then the asset manager has some numbers to work with. Once they give you this bottom line number (by letter) they usually will not budge, so if you go to closing a few dollars short, guess who has to eat it? The listing agent is always in the weakest negotiating position, so if the selling agent or buyer agree to contribute to a shortage, give thanks! During the hey-day we did a lot of Net Price Deals in land sales. We had to work backwards from the Seller's Net to get the total sales price. Short Sales usually turn out to be Net Price Deals!
3. You will need a preliminary HUD to send to the Asset Manager with the contract. Be advised that the numbers on the HUD enter into the bank's pricing decision. Study it carefully before sending it to the bank. Talk to the buyer and/or buyers agent to get them prepared for any price increase that might happen. Make sure that your title company takes this seriously and does not screw you by coming up with different numbers for closing. YOU WILL EAT THE DIFFERENCE!
4. The firmest rule in short selling is that there are no rules. Banks usually dictate terms and conditions....take it or leave it, so be prepared and have your buyer prepared. Buyer can write all sorts of conditions in the ammedment section of the contract....Bank will often not even read it, let alone pay attention to it. Like in sandlot baseball, He who owns the baseball makes the rules.
One of the largest mortgage banks recently circulated a notice to its' many branches to GET SERIOUS about processing Short Sales. I have noticed some spedup in response, for what it's worth.
Note: I like to slowly study the contract and any amendments before taking any action on a short sale. Even more so than on a regular deal. Always talk to the other agent and/or buyer before taking the next step....look for problems at every turn. Ask yourself: "How will this look at closing?". Talk to the asset manager as often as you can & ask for guidance. You will get precious little, but take seriously what you get. By doing this you try to avoid getting backed into a corner where commission give-backs are the only solution.
Our local Real Estate Board utilizes the GE Supra Key system. I have always been an outspoken proponent of the system and could never figure out why any agents would use the "old-fashioned" combo boxes, other than the fact that they were cheap and didn't want to spend $125 or so for the electronic versions. For mechanical boxes, You have to call the showing reservation number for that listing agent to get the lockbox code. Sometimes the system works good, but for nearly every showing list, there are one or two listing agents who don't answer their phones and sometimes don't respond to messages. Go figure!
Recently, I had two of my cherished electronic boxes "crap out" on me. Both had recently shown 85% or higher battery, but now they are mute and dead. Both were firmly affixed to door handles and both contained my only key for that that house. The outcome to this issue was not pretty. Taking a homeowners door apart to get the box is just part of the problem. Then explaining to a smart-xxx New Yorker why I need to have another key mailed down "post haste", because there is no way to open the electronic box once it dies. Then doing a tap dance for a Buyers Agent who just had to show one of the houses right away ( I never heard from them again after they showed the house - no feedback, no returned call, no business card on the counter, no thank you, nothing - topic for another rant!). Then getting the news from the board that all warranties were void after 365 days and furthermore, there is no repair procedure. When it's dead, it's dead.
So, folks, I have recently gotten acquainted with Home Depot's counter section on lock boxes. Master Lock and GE sell combo boxes at HD for $29.97. Three different models, all $29.97. Curious, isn't it? Well, we moved on past that little analomy and bought a half dozen of the Master Locks. Mostly because I am mad at GE.
Well, I learned some things from this.... 1. The Master Lock is amazingly simple to use, reset and shackle. No phone calls necessary. 2. Never complain about agents who don't use the new electronic keyboxes! 3. Never get caught without a spare key for every house. 4. Re-Double my Effort to Answer every cellphone call as it come in.....to Hell with efficiency! 5. My website has an instructional video on making "bump keys". I finally made one!
One good outcome.... the GE electronic boxes are very heavy and have smooth rounded edges and, of course, have that nice big shackle loop up on top. I have found that they make excellent down-rigger weights for my fishing......in fact, they are superior to the expensive down-rigger balls sold at the Marine Supply store. Not good for high speed trolling, but excellent for "bumping the bottom". I'll be using several of them shortly up on Pickwick Lake as I drift along for big Blue Catfish in 70 to 100 feet of water. The GE Supra Box will stir up mud on the bottom and ole whiskers will follow the trail right up to the bait that follows. So I have a good supply of good weights! Only $125 each! Ruefully I admit that I have spent more for less. Like some of the Search Engine Optimizers who I hired to get my website noticed! Or some of the signs I've had made that now decorate my garage. So we move on and make Silk Purses out of Sow's Ears!
Another good outcome...I have now made a complete set of bump keys which will get me into any of my listed homes IN AN EMERGENCY. There are really only two, maybe three, types of key in common use, so that was a pretty simple project that I can add to as necessary.
Business seems to be picking up. Maybe I'll need another half dozen lock boxes soon!
Previously, we have posted several articles about getting a Florida Wind Inspection under the present, but soon expiring, state funded program. Look up previous posts using the keyword "insurance".
Today we received our Homeowners Renewal from ASI Assurance and it was interesting reading.
Bad News....The premium went up from $7,357 to $10,241. Yes, I have a large home on a golf course in Cape Coral, Florida.
Good news.....Multiple Discounts on the premium due to the wind inspection report are just over $7000. Also got a New Dwelling discount (why not last year????) and a Senior Citizen Discount (thank you). Then they added back a whole laundry list of miscellaneous charges ......(this is good news????)
Bottom Line....New Premium is $2,824.
If your Florida Homeowners Premium did not go down this year, you need to ask your agent a lot of questions !!!
$145,000 for a NEW 2347 sq ft home, Never Lived In !!!
Boomer Alert !!!!! Buy this home before you shovel another snowed-in driveway!
This 3 bedroom, 2 bath home sits in a quiet neighborhood just West of Santa Barbara Parkway and just North of Pine Island Road. Garage Door Openers, Multiple Keys, Warranty books, etc. are all in Realtor's possession. COME ON DOWN !!!
We have one fine waterfront building lot which is a corner on intersecting canals, one of which is the Alligator Slough, a major freshwater canal across the Northern side of Cape Coral.
The lot is offered at $49,000 with some seller financing available.
A recently opened access from this area to Del Prado Blvd makes for easy driving to a new shopping mall with grocery and restaurants. It is also quick out to US Hwy 41 in North Fort Myers and the free bridge into Fort Myers.
There are new homes in the immediate area of this lot. Fishing is GREAT !!
$299,000 for this Nearly New (2006) Luxury Waterfront Pool Home in Central Cape Coral, Florida. 1886 sq feet under air, 3 bedrooms, 2 baths, POOL, Waterfront with a Seawall and Dock In a quiet neighborhood near Santa Barbara Blvd and Veterans Parkway. Close to shopping, Restaurants, Services and the major route ...
see details and pictures on this home's personal website:
We have a followup to yesterdays listing announcement for these fine Buckingham Model homes in Cape Coral and Lehigh Acres Florida. These are the remaining homes and are subject to prior sale. All of the homes are NEVER LIVED-IN, 1785 sq ft with no pool unless otherwise noted. No appliances unless otherwise noted. Go to our previous BLOG for floorplans and interior pictures from the model home. Three full bedrooms plus a large den and two full bathrooms. Split floorplan, Florida Style.
These are bank-owned, ready to go. The foreclosure process is complete.
430 NW 1st Avenue, Cape Coral Florida $135,000
3313 72nd Street West Lehigh Acres Florida $127,000
415 NW 4th Terrace Cape Coral Florida $135,000
1022 SW 9th Court Cape Coral Florida $135,000
733 Fuller Avenue South Lehigh Acres Florida $180,650 POOL....Upgrades galore.....
As dicussed under "Financing" on my website, you will need either a bank-issued pre-approval letter or proof of cash funds available for immediate purchase. http://www.JimGibson.BIZ Call me to discuss or contact David Hoke, First Capital Lending, cell 239-292-5460 ref: jim Gibson's Buckingham Homes.
James R. Gibson, Realtor, MBA, E-Pro Sellstate Advantage Realty Network, Inc.
My agency just listed a bunch of REOs (bank-owned properties) in Lehigh Acres and Cape Coral, Florida. This is just a sampling of one model, the Buckingham. Prices vary somewhat, but most are at $135,000. Most homes are NEW, never lived-in. I will not give an address because we have eight of them all alike.....call me for addresses of whatever is left. These homes were given back to the bank by Deed-In-Lieu of Foreclosure (DIL), so there is none of the "Short Sale Stall" or "The Asset Manager is on Vacation" stuff. Once the bank owns the property, they suddenly take an interest in getting rid of it. That said, these homes turn over pretty fast, with good offers subject to acceptance. I don't know where the newspaper gets their numbers, but these REOs are selling like Hot Cakes! We get a new batch of these homes about monthly (43 this month), so if your "dream home" sells before you get around to making an offer, just get on my Listing Book account to see the new listings come up. Some, but not all, of these homes have new appliance packages for delivery on closing day.
By the way, if you would like to join an agency that has a good resource for listing and selling REOs, give me a call.....If you are going to be in the business, you might as well have something to sell!
As you can see, this model is generously appointed, with plenty of room for your family. The large den can accomodate extra sleepers in a pinch. We presentyly have one Buckingham model with a pool (in Lehigh) at $180,650.
If you are not familiar with Cape Coral, Florida, go to my main website for more city information.
I have other listings in Cape Coral, Florida, including a very nice waterfront condominium and a luxury golf course home. Call me and tell me what you are looking for!
Four Lots - 160 feet of frontage on Embers Parkway. Clear Lot - no trees. $46,000.
Seller owns four contiguous 40' lots - will sell two or four. These lots have a city water line but have not been served with an assessment for water as yet. No sewer or irrigation water lines are contemplated at this time. A zoning variance was granted for a model home across the street.
OWNER FINANCING AVAILABLE!!! Call for more information.
MLS# 200836257 Agent has a beneficial interest in the property.
We just listed a very nice (age 55+) SailBoat Access unit in the Moonlight Bay Condos just off the Bimini Bay in Cape Coral. Close to Restaurants, shopping, services, convenience store, etc. in downtown Cape Coral, but on a quiet cul-de-sac drive along a saltwater canal. Catch your dinner off the dock!!! Nice pool, well-kept building and grounds.
See the virtual tour at www.JimGibson.BIZ . Look for "Cape Coral Area Listings" and find the Tudor Drive address.
MLS #200834630
Jim Gibson, Florida Realtor, MBA, E-PRO cell 239-823-3469
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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