short sale: Would this solve the 'Foreclosure Crisis'? - 01/10/10 11:10 PM
It is a simple option... isn't onerous, and doesn't involve the government spending billions of our dollars...
Simply make banks responsible
As it stands, in many jurisdictions, banks aren't responsible for maintenance, taxes, HOA fees or any other impacts their foreclosed properties might have on the community. So, if a block is foreclosed, the homes go to crap while the banks dither at dealing with the inventory. The cities lose valuable tax revenue while they are already struggling because of diving property values. HOAs lose chunks of their budgets trying to maintain properties in their neighborhoods... while not collecting fees from … (22 comments)
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short sale: Short Sales, Bank Owned Properties and Credit Pulls - 11/19/09 05:55 PM
A few days ago I wrote about how the purchase offering process is having issues… issues that are especially apparent on Bank-Owned Properties (we call them REOs).
Banks are often requiring that ALL offers be accompanied by pre-qualification letters from specific approved lenders (perhaps even from their own loan department). In other cases, the brokers representing the properties are interjecting this “requirement” on their own.
This morning, local (and nationally syndicated) radio talk show host, Clark Howard mentioned one of the reasons that these things chap my hide. The specific reason he doesn’t like them is that the “credit pulls” for … (4 comments)
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short sale: Deal or No Deal... - 09/10/09 10:30 PM
It isn't just a TV show with Howie Mandel and a bunch of hotties holding briefcases. It is daily life in real estate...
And one of the issues that buyers face is the Deal or No Deal mindset. It boils down to this...
Do you want a deal?
Many buyers see the news or listen to reports about how much of a buyer's market we are in. They hear radio ads about being able to buy wonderful homes in great neighborhoods for "pennies on the dollar"... and one goes so far as to say "and she bought this beautiful home for … (2 comments)
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short sale: Too Late for Shortie? - 08/09/09 10:44 PM
I was talking with a client last night... a first time home buyer. He wants to take advantage of the First Time Home Buyer Tax Credit (FTHBTC). As we were looking through the results, one thing became VERY clear...
In the price range, foreclosures and short sales dominate the market. Of 40 listings, there were about 6 that weren't short sales or foreclosures. Of those 34, about 22 of them were short sales. And he doesn't want to get involved in a process that could end up with him missing the First Time Home Buyer Tax Credit by a few days … (0 comments)
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short sale: Misconceived Pricing Strategies? - 01/19/09 11:43 PM
These kind of stray away from blanket misconceptions and are more opinion... based, I feel, in observed circumstance... It is also a two-fer. One for sellers and one for buyers.
First, for the sellers... There is a tendency among sellers to want to "price in a little negotiation room." But there is a big problem with that... Buyers won't look at a house they perceive as over-priced. So, that little bit of "padding" on the price will move your house out of the "gotta see" column, into the "maybe we'll look if there isn't anything else that we like" column... or … (2 comments)
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short sale: Short Sales, Sport Jackets and other lies... - 08/23/08 10:21 PM
I just had to go get a "sport jacket" this evening... I just want to know:
What sport is a "Sport Jacket" for?
It isn't. I've watched a bunch of Olympics over the last couple of weeks... Aside from the Equestrian events (less of a sport than auto racing...) there were no competitions in "sport jackets." None. So, why do they call it a sport jacket? Maybe because it is better than "uncomfortable jacket worn for no apparent reason"?
And Short Sales?
Not much better... I know why they are called "short sales" and it isn't because they are short. … (9 comments)
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short sale: Sometimes doing the right thing hurts - 12/21/07 01:12 PM
I started by explaining in Everybody put your heads down on your desk... how we got to this ugly spot in the road where we see the paths of:
Government intervention in loans or
A rush of foreclosures In this installment, I'm going to outline the case for why it is the wrong thing for the government to do. There are reasons that range from moral to financial to precedents. Remember, that this isn't an easy decision, and regardless of the path, people are going to be hurt. However, as my father was fond of saying, doing the right thing can … (8 comments)
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short sale: Everybody put your heads down on your desk... - 12/20/07 02:41 PM
Do you remember those words from grade school? The big kid from the back of the class shot a spitball at the teacher, and so everyone got the same punishment. There were 29 kids in the class that didn’t do anything, but they still got the same treatment. What’s worse is that the kid that caused the trouble didn’t suffer any more than the kids that didn’t.
That was simply because it was easier for the teacher to issue a blanket punishment to everyone than to figure out who the real culprit was. Or worse, the teacher knew who it was, … (0 comments)
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short sale: Thoughts on the Foreclosure Bailout - 12/08/07 01:31 PM
Everyone has weighed in with their opinions about the proposed government bailout of some of the 1.2 million people facing foreclosure... I guess I'll toss out my nickel (side thought... if everyone that has offered an opinion actually gave up the nickel, WE could bail out the people facing foreclosure...)
I don't like government bailouts.
I'm a libertarian (I haven't joined the party, so I'm not a Libertarian). I don't believe that government has a role in every part of our lives. I think that the US Constitution is the guideline for the structure of our laws... and the role the … (3 comments)
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short sale: Imputed income - 10/01/07 11:08 PM
Familiar?
Let me give you a quick idea of what it is. Keep in mind that I am not a tax professional, or a lawyer... just a real estate agent.
I guess the easiest way to say it is that it is phantom income. For our current purposes, let's look at a short sale. Let's say that the seller owes $300,000 on their home. In the short sale, the property sells for $225,000. Obviously the difference is $75,000. When the bank takes the loss, they report the write-off as income to the "recipient", the seller. So, that year they get a … (2 comments)
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short sale: F is for Foreclosure - 08/31/07 09:20 AM
This entry will have two distinct parts.
Part I
If you are a seller, or thinking about selling because you are in financial trouble, STOP. Examine what you are doing and why. Examine all of your options. Talk to a credit counselor, like CCCS in Atlanta (no experience with them personally, but Clark howard said...). Really examine all of your options. Talk to your lender. Contrary to popular belief, they don't want to own your home, even if the way they act seems to suggest otherwise. Some of the questions you might need to answer are:
Is this a temporary problem, … (0 comments)
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short sale: Real Estate Investing 203 - 08/22/07 05:24 PM
Back in Real Estate Investing 101, Part II, I briefly mentioned "Shifting Classes" after the Buy & Hold strategy. There are a few different ways to shift classes and uses that can build value for investors.
Residential to Commercial
One of the most common ways to increase value while shifting classes or use is to have a property re-zoned from residential to commercial usage. A property that is located on a busy street would be a prime example. The busy street lowers the value for a residential property because of the noise and associated traffic. It is even more true of … (2 comments)
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short sale: Want to sell your house to an investor? - 08/21/07 11:31 AM
I get the occasional call from people that have a house they wish to sell quickly. Often, the home is in less than optimal condition (sometimes heinous is a word that creeps into my mind). They range from estate sales to pre-foreclosures to rentals that the owner doesn't wish to handle any more. Usually, these people are wanting to market to my investor database. Sometimes, I don't think people understand what this entails.
Investors are looking for houses that they can use to make money. In order to make money the house needs to offer one or more possibilities.
It needs … (3 comments)
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short sale: Real Estate Investing 301, Part II - 08/17/07 09:25 AM
Real Estate Investing 301Part II
Link to Part I
Advanced strategies
Strategies for selling hundreds of properties
For most buyers, holding the properties isn’t the option that they are looking for. Turning the properties is the goal. Generally, there are a few different strategies that sellers use to dispose of the properties. These depend on both the properties and the type of buyers.
Wholesale sellers sell to other investors at a discount from BPO. This allows them to minimize further expenditure, while maximizing return for less than optimal properties. The properties can often be moved fairly quickly. One … (0 comments)
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short sale: Real Estate Investing 301, Part I - 08/17/07 09:16 AM
Real Estate Investing 301
Advanced strategies
In Real Estate Investing 101, Part I we covered buying a house to resell for a short term profit, while minimizing risk and making it happen fast. We delved further into flipping in Real Estate Investing 201. In Real Estate Investing 101, Part II we covered buying and holding property for long term appreciation and wealth building. We also touched on class shifting to increase value. Real Estate Investing 202 continued on the Buy and Hold theme and offered deeper insight into making it profitable. In Real Estate Investing 203, we looked at shifting … (0 comments)
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short sale: Real Estate Investing 202 - 08/15/07 06:33 PM
Real Estate Investing 202
Digging a little deeper in Buy and Hold strategies
In Real Estate Investing 101, Part II, we covered buying and holding property for long term appreciation and wealth building. This is by no means a get rich quick scheme, but is one of the most proven ways to build wealth over time.
Finding an appropriate property
Just like with flipping, property is a required ingredient. In fact, the same sources will work for buy and hold strategies as for flipping. The primary difference is that buy and hold strategies are generally a little less … (2 comments)
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short sale: Market update for Gwinnett County, July 2007 - 08/10/07 04:33 PM
Gwinnett County sales comparison for residential real estate. 7/07
It time for me to make my prognostications for the coming market, while recapping that which has happened. Please keep in mind that even on the 10th of August, the numbers for July WILL change. I will come back and correct them before posting the September results. I originally posted the June number on July 10th, and they had changed pretty significantly by August 6th when I reviewed and corrected them.
I see a solidification of some of the trends that I pointed out last month. Listings are up vs. … (0 comments)
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short sale: OK, I said this a month ago!! - 08/08/07 09:13 PM
I just got today's REALTOR Magazine Online Daily Update. This was one of the stories that was featured. It is about how foreclosures are up. They make up 10% of the listings in CA, as opposed to 1.7% last year. But, at the same time, distressed properties aren't listed at much of a discount compared to other properties.
A month ago, I posted this update for part of my area. If you struggle through to the end, you'll see this passage:
Foreclosures will start to get more attractive if the lenders start to get realistic about the prices. I … (0 comments)
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short sale: Real Estate Investing 201 - 08/03/07 10:05 AM
Digging a little deeper into Flipping
In Real Estate Investing 101, Part I, we covered buying a house to resell for a short term profit. In this lesson, we’re going to delve a little deeper into flipping, run a scenario, and examine ways to maximize profit, while minimizing risk and making it happen fast.
Finding an appropriate property Obviously the first ingredient in a profitable flip is the property. Despite what one may see on TV, it takes a little while to find good candidates. The various types of properties that may make good flip candidates are foreclosures or REO … (0 comments)
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short sale: Hello, Media... Are You Listening? Real Estate is LOCAL. - 07/25/07 03:12 PM
How many times do we have to hear that the housing market is doing one thing... and that must mean that the whole market is doing the same thing?
When the price of a barrel of oil goes up, it is a singular commodity moving. While there are different grades of oil (sweet light crude, heavy crude, rough crude, etc.) they are interconnected. If one moves, they all move because their value is interconnected.
When prices move up or down in GA, there is little correlation to prices in Maine. They aren't interconnected. There may be a few instances when … (7 comments)
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