I have a Sellers Short Sale Listing here in Coral Springs Florida with a highly qualified Buyer who can't get financing to purchase a condominium. He's a Dream Buyer, High credit score, Secure employment, 30% down and the Star-Like qualities go on and on but nobody will let him buy my Seller's condo that he just loves and has wanted to live in for a long time. 

So what's happening here with Lending? Here's the specifics of the obstacles:

• Association delinquency over 25% of units
• Owner occupied units at 59%

What do the Lenders want?

• Most want a Association delinquency of under 15% yet we found a Lender who will take on the over 25% delinquency
• Lenders want a owner occupied rate of about over 75% and we're at 59%. Here's where we hit the brick wall

Please tell me how such Lender refusals benefits anybody? The way to get condo communities turned around is to get this type of almost risk-free, dream Buyer buying in these condo communities with their present high rates of delinquencies. The more you get Buyers who will pay their HOA fees, the chance is afforded to get these condo communities functioning again. Yet, with the stance that Lenders are now taking can only result in a tumbleweed effect. Tumbleweed how?:

1. Distressed homeowners can't sell home, increases HOA delinquency
2. Distressed homeowners home results in a foreclosure
3. Increase in Bank owned homes in condo communities further erodes market values in community.
4. Increase in losses by these Bank owned homes with less money to lend.
5. Distress, delinquencies and losses grow and grow hence TUMBLEWEED EFFECT

 Is this the way to focus on seeing a recovery in the Real Estate market?

I represented Buyers here in South Florida who wrote a Short Sale sales contract at the end of October and we had a successful closing today with no headaches along the way. Yes, it's true....a smooth Short Sale.  They happen more than you think. If you beleived everything written on a Short Sale you'd think they never close. 

Today, I had the pleasure to represent Buyers in a Short Sale purchase. I routinely represent Buyers and Sellers here in Coral Springs and the surrounding towns. These Buyers were lovely Buyers. What fun to help a young family search for their first home. What did these Buyers get out of their Short Sale?

1. A well cared for beautiful single family home in mint condition. Yes, again contrary to what is often written, many a Short Sale are in excellent condition. This home was spic and span clean!
2. Their offering price was for $170,00 but they paid $168,000 due to the Buyers appraised value coming in at $168,000 with the Sellers Lender agreeing to the reduction. Most such situations that I have experienced where the appraised value comes in lower, Lenders have agreed to reduce to appraised value.
3. First time home Buyers tax credit; a great savings.
4. Joy, complete Joy!

Compassion is at it's best when disaster hits.

My church, Church by the Glades, announced at our services last weekend that they were going to donate 100% of their offerings over this past weekend to Haiti in the form of money. We all know how desperately needed money is in Haiti. When Pastor David Hughes announced this at the service I was attending last Saturday at 5:30, it didn't surprise me at all. This is what we, who are so blessed, are supposed to do when others are in need and going through devastating times. I'm blessed to be a part of Church by the Glades here in Coral Springs Florida. God rocks at Church by the Glades. Church by the Glades sent $160,000! WOW!

If you're here in South Florida and are looking for a Church to make a difference in your life, check out Church by the Glades. You'll be glad you. 

Another relieved Seller avoided foreclosure and closed on a Short Sale for their home this week.  It's hard to post on every single Short Sale closing but when they go like this I like to get the news out to boost distressed Sellers confidence in the value of a Short Sale. Here's the particulars of this South Florida Short Sale Closing:

• Home sold above list price of $203,000
• Home approved for Short Sale and written approval received in 56 days
• Home closed in 85 days from the day Short Sale package was faxed to the Seller's Lender
• Sellers received written approval indicating "Full satisfaction and release of mortgage"
• Buyers found a bottle of champagne in the fridge welcoming them to their new home having been left by the Sellers

Please remember the next time somebody tries to tell you to skip the Short Sale, don't listen to them, as time and again those who have chosen to help the Short Sale Seller avoid foreclosure are succeeding in doing just that.

.... because if you don't give up, you too can close on a Short Sale just like I did today.

For over two years, the homeowner I"m representing has had their home listed for sale as a Short Sale before me. Too many other Agents threw in the towel and caved when CitiBank told them "NO" that they wouldn't accept the Buyers offer. You can imagine that the prior Buyers offer were also much higher than today's closing price as we all know what has happened to market values over the past two years. Yet what happened with these prior offers? Did they give up too easily.  I imagine so as Citibank initially told me "No" that they wanted 5% more to approve the sale. Yet I kicked and I screamed until I got my way....well, no I didn't really do that but I did not give up.

I believed in and backed up the offering price with:

• comparable sales that supported purchase price
• negative local market conditions which threaten market values
• reiterating the adverse financial circumstances of the Sellers themselves
• reminders of the prior rejected offers at much higher prices and where the declining market values are at today

Soon thereafter, we received written approval indicating the account paid in full for less than balance. Sold for $215,000.

Getting a Short Sale approved is really all about having conviction, being persistent and willing to work hard and just don't give up. And more importantly don't listen to all the nay sayers that tell you Short Sales don't close. As they do if you follow these simple suggestions above. 

Reading the Sunday morning newspaper, yes, I still read the newspaper, I can across an article entitled " Yes, your credit can bounce back "as written by Sharon Epperson in USA Weekend.  All was good as I was reading along as she was providing some good credit repair advice until I came to the last section on "Skip the Shortcuts". This contributing writer is advising homeowners that it is better to Foreclose on your home than to do a Short Sale. I about lost it! Here is what Sharon Epperson reported:

• Short sales are popular alternatives to foreclosure but they likely will be reported on your account as "not paid as agreed".
• She then went on to conclude from this that they would do the same damage to your credit score as a foreclosure.

This is just reckless commentary. One size does not fit all either.

Like many Real Estate Agents who specialize in Short Sales, the majority of Lenders for my customers Lenders will agree to settle the distressed Sellers account and do not report it as " not paid as agreed".

FHA has published guidelines that indicates a person having gone through a Short Sale will be in a position to purchase a home again after only 2 years whereas, having gone through a foreclosure you must wait 5-7 years.

So where did this commentator receive her information? This is why so many Homeowners do not know where to turn when seeking advice on what to do when foreclosure is looming.  These type of articles harm everybody. We all know how foreclosures effect everybody including you the possible neighbor next store to the home just foreclosed on.

With this I'm impelled to continue to spread the word that Short Sales can be a good thing and they shouldn't be skipped if its right for the homeowner. 

This is a time of year when professionals, such as Real Estate Agents, reflect on what they have done right and what they need to do to succeed. How will they plan for the new year of 2010? What skills as Real Estate Agents must we possess to effectively lead our business?

What track are you on? Does it include character and skill? Do you need both to succeed? I say absolutely!  Look at the number of what we thought were success stories based on skill alone only to later find out that the skillful individual fell flat on their face due to their lacking character; no integrity of heart! I don't need to point to individuals who this describes as there are both famous people and obscure individuals who this describes.

Integrity of heart- hmmm. Incorruptibility. As defined by Webster Merriam online dictionary Integrity: firm adherence to a code of especially moral or artistic values

 Back to what is more important Skill or Character? Character is foundational to being an effective leader. Skills can be learned but can you learn Character? So if you truly want to make a difference this year, use your skills and hope that your possess Character as without the two, you won't go far.