As many sellers, buyers and real estate agents know, the short sale approval process at most banks takes months (if not longer); and even when progress is made, less than 30% of short sales actually end up closing.
While there are many reasons surrounding the low closing ratio, one of the most common reasons is the length of time it takes to get a response to the buyer’s offer. … (1 comments)
short sale: BPO more valuable than a FHA appraisal? To BOA it may be. - 11/02/10 10:35 PM
Buyers purchasing a short sale that is owned or serviced by Bank of America (BOA) should be aware that they have recently started using “interval pricing” when it comes to determining value.
Simply put, when a Seller of a property that is under contract for a short sale has their loan held by or serviced by Bank of America, BOA will hire at least one independent real estate agent to conduct an interior Broker Price Opinion (BPO) to determine the worth of the property.
In the past, BOA allowed the agent’s who conducted the BPO’s to give a … (4 comments)
short sale: When buying a bank-owned foreclosure (REO) in Central Florida, those who have the gold make the rules! - 04/11/09 07:49 PM
Over the last year or more, there has been a shift in the real estate market, with the number of homes that are short sales and bank-owned foreclosures growing by the day. As a matter of fact, in reviewing the number of active homes for sale in Central Florida, I estimate that more than 40% of the inventory that is available for sale is either a foreclosure or a short sale. With that being said, one of the most notable attractions to foreclosures for Buyers has been the fact that they are often listed at prices that are 20%-40% less than other comparable active … (10 comments)
short sale: Part I: Are Loss Mitigation Companies Friends or Foes? - 02/07/09 10:11 AM
This series is being written as a result of not only my experiences, but those of other Real Estate agents, Sellers and Buyers who have recently been party to a real estate transaction involving a new breed of company that promised one thing, and yet delivered something much different. Your comments and personal experiences are welcomed, as education is the intended outcome. Part I: In every type of real estate market, there will always be individuals and companies that will capitalize on the current state of affairs. Some might say that they are just entrepreneurs who are making a living providing a service that is … (7 comments)
short sale: Should REALTORS Refuse to Accept a Non-Approved Short Sale Listing? - 01/25/09 05:28 PM
Over the last year or more, the local Multiple Listing Service (MLS) for Central Florida has seen a rise in short-sale properties that are being marketed at a price that has not been approved by the Seller's lender. The explanation for this is quite simple as lenders have been unwilling to communicate a price that they will accept until they actually receive an offer on the home. While this may seem to make sense from a banking standpoint, this policy has created havoc in many markets as Real Estate agents and their Sellers are left to determine a listing price that they … (21 comments)
short sale: What Lake Mary & Seminole County Buyers Need to Know About Short Sales - 11/14/08 07:12 AM
There are many misconceptions about what a short-sale actually is and what questions Buyers should be asking when considering buying a property that is being advertised as a "short sale." To clarify, a "short-sale" is what occurs when the Seller's net proceeds after payment of customary closing costs from the sale of a property are insufficient to pay the outstanding mortgage(s) and/or other lien(s) in full at closing. In my experience, many Buyers in the Lake Mary/Seminole County area think that a "short sale" means that it is a "FAST SALE"... Trust me, that definition can't be further from the truth. Because the Seller … (4 comments)
short sale: Yes, You Can Buy a Home in Lake Mary Florida for Less than $200,000! - 11/05/08 10:39 AM
Just a few short years ago, there wasn't one home available for sale at $200,000 or less...but today, there are 17 homes with a MINIMUM of 3 bedrooms, 2 bathrooms, 1500 square feet and a two car garage that are listed in the Multiple Listing Services within this price range. Here is a breakdown of those 17 homes: 4 are bank owned 10 are short sales 3 are traditional owned properties (Being offered for sale without third party approval being required) If you are a Buyer who would like to own a home in Lake Mary for $200,000 or less and would … (2 comments)
short sale: How Much Does a Foreclosure Effect Your Credit Score? - 11/03/08 08:36 PM
With all of the foreclosures and short-sales taking place in the real estate market today, this might be one of the most important (yet unanswered) questions one can and should ask. According to an article given to me today by Patricia Marbes and Amy Dunn of Wells Fargo Mortgage, the impact on credit scoresis dependent on more factors than just the foreclosure or short-sale itself. For example, Fair Issac has communicated that FICO scores do not distinguish between a short sale, a deed in lieu and a foreclosure when rating a borrowers credit worthiness. In addition, because this is a fairly … (6 comments)
short sale: Why Don't the Banks Have to Sign the Listing Agreement in a Short-Sale? - 10/31/08 02:59 PM
If you are a Buyer, or even a Buyer's Agent, who is dealing with short-sales in your marketplace, you might be wondering the same thing. Of the thousands of homes listed for sale in your local Multiple Listing Service, how of them are being marketed as a short-sale? And of those, how many of them can actually be purchased for the listing price AND be closed on within 30-60 days? If you are finding the same results that I am, I'm guessing, not many. As a matter of fact, most short-short sales that are listed cannot be purchased within 60 days at the price they are being … (9 comments)
short sale: A New Risk For Buyers When Purchasing a Short Sale If The Seller Has a HELOC - 09/05/08 10:04 PM
Just because the bank agrees to the short-sale, it doesn't mean that the deal is agreed upon by all parties, especially if there is a HELOC involved. I'll share an example: I am currently working with a Buyer who is under contract for a house in Longwood, Florida. The Sellers, who have owned the home for several years, had a first mortgage at $80,000 (that must have been a nice payment!). Last year, the Sellers secured a HELOC (Home Equity Line of Credit) for $160,000 on that same house...which means they then had $240,000 in notes on the home. And yes, the same … (8 comments)
short sale: Equity Lines Not Forgiven As Frequently as Straight Second Mortgages - 07/04/08 11:13 AM
Every day in this business, I learn something new! Yesterday was no exception! I am representing a Buyer who wrote a contract on a home that was listed as a "short sale" in a Seminole County community in Longwood, Florida. Thank goodness, the listing agent, Valerie Crane, has been in business for more than 20 years and was successful at negotiating short sales way before most of us were even in the business or even knew what a short sale was. The Sellers, like many others in their same situation, had two mortgages on their property. The first mortgage was for $80,000 and the … (2 comments)
short sale: Should the Buyer be responsible to turn on the power & water for utilities? - 04/24/08 01:07 AM
Tomorrow, I am showing property to a Buyer...yippeee! When I was scheduling the showings for my Buyer this evening, I noticed that they all had something in common...all three of them were "short sales" and the price and commissions were to be approved by the bank. O.K....I can handle that, as that's a pretty customary thing to find listed in MLS these days... One thing that I thought was quite unique though was the fact that one out of the three listings I am showing tomorrow state in the Realtor Remarks that is is the "Buyer's responsibility to turn on the utilities as … (85 comments)
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LaShawn Norden, REALTOR, (321) 377-0157 Your Real Estate Advocate in Central FL
Selling or purchasing a home can be exciting and scary at the same time! The goal of my blog is to educate Central Florida Buyers & Sellers about the Good, the Bad & the Ugly things that can happen in a real estate transaction! As an advocate for consumers in Orange, Seminole and Volusia County, I especially enjoy working with first-time home buyers, relocation buyers, sellers of distressed property and luxury home sellers. Native to Central Florida, I'd welcome the opportunity to be your advocate too!
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