Submitted by Vicki Owens, ABR, RSD, RECS, Andy & Associates, Realtors

As of July 12, there are 200 homes available for sale.  Prices range from $18,300 for a mobile home to $975,000 for a large estate on acreage.  The averages are 2138 square feet for a list price of $203,070. There are currently 38 homes reported as in contract or contingent on sale.  Inventories are down in the under $150K price range and these homes have been selling faster than other ranges.  The $8000 first time buyer tax credit, low interest rates and special loans available in our area could be a good reason for that.  The inventory is moving quickly which is an indication that we could have very well "bottomed out" and we will see prices begin to recover a bit.   The market is showing about 35% of available homes are "challenged" sales, which means foreclosed or 'pre-foreclosure' short sales.  More of these homes will likely come available on the market soon now that the moratorium on foreclosures has been lifted by the government.

From January 1 thru July 12 of this year, there were 150 homes sold.  The average days on the market was 97 days, the average square footage 1,810 with an average list price of $158,044 and average sale price of $151,262. Only 4 of those sold properties were over the $300,000 price range, and 25 sold between $200,000 & 299,999.  So 121 of the homes were sold at $199,999 or less and within 96% of their listed price.  The least sold price was a mobile home sold for $10,000, the most, a large home with acreage at $385,000.  These statistics are taken from Tempo MLS service used by the Columbus Board of Realtors.

Historically, compared to the same time in 2008, there were 180 homes sold, 30 more than the same time this year.  The average days on the market then was 118, the average square footage 1935, with the average list price being $176,637 and sold price of $169,879.  12 of those were sold for over $300,000, and 37 between $200,000 and $299,999.  So 131 were sold at $199,999 or less.  The least reported was a mobile home sold for $9,500, the most, a larger new home at $635,000.  Again, these statistics are from the MLS as reported by real estate brokers in the Marysville School District only. 

Overall, sales volume and prices are down.  However, the good news is, days on the market are 97 vs' 118 the same time last year.  Again, less inventory and more buyers entering the market due to incentives is a good sign that the market is beginning to recover.  Keep in mind, historically prior to 2006 appreciation rates in our area were only 2.5-3%.  Also, our market has not been hit the hardest by the real estate downturn.  Average prices in the Hilliard, Delaware and other Columbus areas have taken a larger hit and are now reported to be below $140K.  Many of those areas enjoyed 5-8% appreciation back in the top end of the market 3-4 years ago. 

Financing is available but has shown to be a longer closing time for buyers due to the lenders demands for documents and paperwork.  There are still 0% down programs on low fixed rates, FHA raised down payment requirements earlier this year to 3.5% down.  PMI guidelines have also tightened and have caused some delay and even denial of some sales for programs where it is required.  Appraisers are now under strict guidelines and must consider current market conditions closely adding additional work and sometimes delays with appraisals.  Investors have been put under pressure with new guidelines limiting the number of homes they can purchase as investments and commanding 20% down payment.  There are homes that need a lot of work at very low prices that are not finding buyers in part due to these rules.  Homes with safety issues or in need of expensive mechanical systems (septic, well, HVAC, roof) are challenged to find an investor or bank that can or will finance them.

With questions, or help with buying or selling your home, contact Vicki Owens of Andy & Associates, Realtors locally by phone at 937-644-3385, cell: 614-440-5174, via email at vicki_owens@hotmail.com or visit her website www.movetomarysville.com.  She is a native of Central Ohio and a 10 year resident of Marysville, operating her local office in the McCarthy Financial Advisors building at 127 W 5th Street uptown. Serving Marysville/Union County, Ohio since and selling over 12 Million in sales volume 2003. Also serving Franklin, Delaware, Madison, Logan and Champaign county areas. 

You are hearing a lot of "lingo" in the media and may be skeptical that now is a good time to buy.  But here is the skinny on what is happening in the central Ohio market in March 2009.

Home buyers ARE

• Getting an $8000 tax credit for 2009 - yes, a CREDIT that can be deducted from your taxes for 2009 in addition to the other tax benefits of home ownership.  If you have not owned a home in 3 years or a first time home buyer - NOW is the time to get off of the fence. 
• Getting interest rates at 5.5% and below for FHA and other loan types with FIXED 30 year rates from reputable banks like Wells Fargo, Chase, Huntington and 5th/3rd
• Getting loans if you can demonstrate by your scores and debt that you are a responsible spender.  You can get free and real assistance reviewing your credit report from a real live loan rep who will be happy to assist you to "tweak" those scores if you are questioning if you qualify
• Getting phenominal home purchase prices agreed to on move in ready homes.  It is not JUST the fixer-upper sellers that are ready to negotiate. 
• Seeing less inventory on the market.  Sellers who are not motivated to sell are "getting it" and not putting their homes on the market.  This is an indication that we are at the bottom of the low prices folks.  If you are not off of the fence, you better start jumping.  The economic rule of supply and demand applies here.  Less homes and more buyers will equal higher prices by 2010.  So stop the "when are more coming on to the market" mentality and start the "which one best fits my needs and budget" mindset.

Some of the best buys are the "short sales" or pre-foreclosure listings.  Many of these homes have been well maintained and can be purchased below market price.  Patience is a virtue with it though.  Even though the term "short sale" sounds fast, the banks that are agreeing to forgive some of the seller's debt are backed up with requests for review on these offers and it can take 2-3 months or more from offer to close.  But my buyers taking advantage of these will tell you "good things come to those who wait".  And that same term applies if you have been "Looky Lou or Lucy" dreaming online about your home for the last 1-3 years.   You've waited - start taking some action and find a good loan rep and buyer's agent to assist you and get moving now!  If you do not, you will see the prices start to go back up again and realize that you missed out on some great opportunities. 

If you have no idea about the benefits of having the service of a buyer's agent work for you, see the Buyer's Resources page of my site www.vickihelpsu.com With a home purchase being such a huge investment for you as well as a place you will spend many years making memories, you deserve to be represented and the cool part is that in most cases (and with my company and services) that service is free to you as a home buyer. 

Have questions about these items or other real estate related questions?  Write Vicki at vicki_owens@hotmail.com or call 614-440-5174.

Submitted by Vicki Owens, ABR, CRS, GRI, Branch Owner/Agent, Andy & Associates Realtors,  Marysville Office

As of  February 14, 2009, there were 215 residential properties listed for sale in the Marysville Exempted Village School District.  There are 35 homes reported to be in contract and pending the close of the sale. Year to date, 20 homes sold since January 1.

From January 1-December 31, 2008, 331 homes sold for the year.  The average list price of a home was $169,047 and sold price $162,889 with market days for sold listings averaging 107.  Homes are selling within 96% of their listed price on the average. 

Compared to 2007, 385 homes sold .  The average list price for 2007 was $171,078 with the average sold price of $165,113.  Days on the market average was 111 days. In review, 44 less  homes were sold in 2008 than in 2007 and for about $3700 less on the average taking just a few less days to sell. These statistics used are per the Columbus MLS for homes listed in the Marysville Exempted School District only, not including all of Union County.  They are a compilation of listings through the Columbus Board of Realtors as reported by agents and participating builders. 

Comparatively speaking, even in other market areas of Central Ohio, we have weathered the market downturn quite well in the past 3 years. There is no question that now is a great time to buy with mortgage interest rates now around 5% and tax incentives!  Qualifying for a loan still remains more difficult than prior to 2007.  If your FICO score and debt ratios show evidence of responsible spending and steady employment, there are still solid programs to choose from.  Many Union county properties qualify for USDA financing at low rates and zero down payment. Ohio Bond Money down payment assistance for first time home buyers is also available again soon.  VA programs offer no money down programs.  The most popular FHA programs now require a 3.5% down payment.  If an FHA loan is utilized for a HUD owned property, there is a $100 down payment program available. Ask your banker or Realtor for more details!

The number of foreclosed homes for sale has remained steady since 2007. We have seen an increase in the number of pre-foreclosure sales (short sales).  These homes are all competition for the pre-owned home market and have resulted in lower home prices overall. Buyers contemplating the purchase of a home should seek the assistance of an experienced real estate agent to guide them through the process.  There can be a sea of paperwork and waivers involved and when making an investment in property, it is important for the consumer to be aware of exactly what and whom they are dealing with in a purchase.  If a buyer is seeking a move in ready property, foreclosed homes may not be the best buy-there are many homes in great condition for sale at very competitive prices.

For more information about our market, if you have a home to sell or are looking to buy, Vicki Owens of Andy  & Associates, Realtors, is our area's only Certified Residential Specialist (CRS) and the WSYX/FOX28 TV area specialist offering highly recommended services in Union County since 2003.  Also assisting clients into Franklin, Logan, Champaign, Madison and Delaware counties.   Contact her locally at 937-644-3385, visit her website at www.movetomarysville.com or email Vicki at vicki_owens@hotmail.com  Copyright 2009 Vicki Owens, Andy & Associates, Realtors

Submitted by Vicki Owens, ABR, CRS, GRI, Andy & Associates, Realtors, December 2008

With the market as tough as it has been, I have received yet more calls and emails from people who have had a lot of difficulty with their lease purchase arrangements.  It unfortunately seems this always comes after the fact and always reiterates the reason why I always advise against these sort of agreements. 

One gal contacted me who was at the end of her 2 year agreement.  I spoke to her way back in 2006 when she was contemplating a home purchase.  At that time, she had been visiting many open houses and could not seem to get the price that she needed for a house the age, size and quality that she wanted.  She went to a For Sale By Owner open house and the owner offered her a lease purchase agreement.  Because there was no way at that time she could quality for a mortgage on the home at an asking price of $235,000, she loved the house and the idea she could move right in and signed right up.

She actually called me the week after she had signed the agreement back in 2006.  I was familiar with the home which had been on the market for nearly 2 years and listed on and off with a variety of agents to no success.  At that time, I commented that the home was priced awfully high for the area compared to others that had recently sold on the block, but welcomed her to the neighborhood. I was happy that she found something that she liked and wished her and her family all the best. 

In her call now, two years later, she explained that she was at the end of her lease agreement and now it was time to purchase.  She had now been approved for the loan! But the bank, after appraising the house recently, would not approve a loan for the contracted amount.  The appraisal was just too low even after she had paid the owner nearly $35,000 (at $1400 a month and a deposit) and the sale price was still what it was when she signed the document 2 years before.  She had redecorated, put in carpet, finished a room in the basement.  The owner will not lower the price to what the bank would agree to finance for the home, now valued at under $200K due to declines in the market. He cannot afford to. He had 2 mortgages and the rent she pays covers just the first. After expenses to sell, even without a real estate agent, he would have to bring funds to the closing table to clear the liens, he just will not do that.

Now she is struggling to decide to stay and see what happens or go forward to buy another home.  And she is actually leaning toward buying another home with the prices and interest rates so low now, but troubled about all that she spent on this one.  In the meantime, the homeowner is getting lots of nice work done and gaining equity on the home as he makes payments.  Hope he does not decide to take out yet another equity line of credit, or worse, quit making payments.  Guess we will see what she decides and how it all shakes out.

Then an email recently.  Another gal who signed a lease purchase agreement that was based on the fact that she could be financed once her home (that was on the market in another state) sold.  Well, the home has still not sold and her year is up. So she is now moved out from the home that she had intended to purchase.  She had put $1200 into new carpet and done some other renovations and redecorating in the home and made all of her monthly payments on time to the owner.  In this case, an agent was involved representing the home seller attempting to sell the home with the sale of her current home a contingency to go forward with a true purchase.  She did not mention what she was paying per month, but my guess is that she probably had spent $12000 minimum plus some sort of up front deposit/down payment.

Upon her move out, she had a walk thru with the agent that was assisting the seller who stated the home was in good condition and she moved on.  Well, low and behold she has a bill at her new address from the owner wanting money for the renovations that he is now doing to get the home sold.  My advise was that she needs to have her own attorney look over the agreement that she signed to see if in fact she is responsible and if she has any rights to recovery of the money that she spent.    She admitted that she was more focused on the sale of her current home and relocating her family than what she was signing to get into this one. 

Circumstances and emotions can be distracting, and a good buyer's agent or real estate attorney can be worth their weight in gold to avoid bad situations that can cost literally thousands for an unsuspecting home buyer.  Slow down and get some professional advise BEFORE you sign because "hind site is 20/20".

Copyright 2008 Andy & Associates, Realtors.  About the author: Vicki Owens is an experienced real estate agent in the Central Ohio area.  Highly trained as an Accredited Buyers Representative, Certified Residential Specialist and Graduate of the Realtor Institute.  An award winning multi-million dollar agent for Ohio and the Columbus areas and highly recommended locally.  These opinions and experiences shared are from the standpoint of a Realtor and are meant as education for the public.  None of the information within her articles or blogs should ever be considered as legal advise, an attorney should always be contacted regarding any real estate transaction.  Email her at vicki_owens@hotmail.com and visit her website www.vickihelpsu.com for more blogs, professional assistance and information about her services.  Cell direct 614-440-5174.

Submitted by Vicki Owens, ABR, CRS, GRI, Andy & Associates, Realtors Marysville

Here it is, another holiday season.  If your home is or has been on the market this year without an offer, you are not alone.  So what does it take to win over that buyer in today's challenging market?

· See Your Home from the Buyer's Eyes by asking yourself one of the toughest questions that you can.  If you were on the market to buy, what would you pay for the home today?  Forget your memories there and the money you've spent to maintain or update. What would you honestly pay? Look at it as your product to market, not your home.

· Do Your Homework by looking at what homes comparable to yours, in your neighborhood or vicinity and what they have sold for in the last 90 days.  Not last year, not the last appraisal, but what buyers are truly spending now for a home reasonably comparable to yours. (And yes, bank, corporate owned and short sales DO make a difference on where yours will be priced to win)

· Make It Sparkle by doing the hard things that no one wants to do.  Wash the windows, pull the weeds, clean the basement, get rid of the clutter and junk.  Buyers want a home that they can move right into.  You may have to remove the wallpaper, paint, clean carpets, and store away some of your furniture.  It needs to show like a model home that the owners have taken great care of.

· Get Quotes if your home needs repair.  Take a good look at the roof.  If it needs replaced, call a roofer and get a quote.  If it needs windows, carpet or flooring, get a quote.  Have in writing and face what needs to be done head on.

· Know Your Competition by looking at what is currently out there on the market that buyers will be touring when they come to see yours.  Look at how long those homes have been on the market and keep in mind that you want yours to be the one they pick to offer on.

· Face Reality On the State of the Market and know that the prices have declined by as much as 20% in the last 3 years. If you purchased your home in 2004 or 2005, you may have paid more then than the market will bare today.  You may only be able to get what you paid for the home or even less.  If you have little equity and are not in a position to sell now you may want to wait longer with plans to move on if you can.  Pricing your home too high by just a few thousand in this market can lead to disappointment. In fact, if you are ready to move fast, you may want to price a few thousand lower than your competition and showcase your home beautifully.  Again, what would you buy??

· Call Some Professionals, have the home inspected by a home inspector for condition, termites or gas leaks. Call an appraiser to have the home appraised at today's fair market value. An appraisal by a qualified home appraiser who does work for the banks should be able to provide an unbiased assessment of your home's value.  The appraisal you had done for a refinance or second mortgage a few years ago is not one that would be accurate for resale of your home and is only good for up to maybe 180 days.

· Talk to Several Agents to see what their strategies, track record and experience has been in servicing your area.  Find agents that know the area, have experience with today's market, know the pricing, market aggressively and are currently selling homes.

Regardless of the peppered opinions of the press, the American Dream is still alive and being a homeowner is still desirable.  Yes, many potential home buyers have been on the fence for quite awhile waiting to see what is happening with the market.  They fear paying too much for a home, or worse, facing foreclosure.  There are still many able folks out there who want to be the owner of a home but have been jaded by the media. 

Keep the faith that this will change.  Home prices are low and so are interest rates and they will find when they start their research that this is a great time to be buying.  Homes are still selling, banks ARE still lending and buyers are buying, just at a slower pace.  Patience is a virtue, but your home can be positioned correctly to sell and win in today's market.  Your commitment to be a winner is essential to captivate the right buyer, unfortunately, that may mean some sacrifice for you to succeed in this market.

Vicki Owens is a top selling, full time real estate agent with advanced education, successful track record in our local market that comes highly recommended by clients.  For a positioning analysis of your home call her at 937-644-3385.  For more information, visit her website at www.movetomarysville.com Listed before and considering trying again?  See www.listitagain.com

Copyright 2008, Andy & Associates, Realtors

First & Foremost you need to know as a home buyer that buying one of these repossessed homes take a great deal of PATIENCE.  Unfortunately, banks are not in  the "instant gratification" business.  We are so used to things happening fast. When an offer is made on one of these homes, it has to pass through MANY hands.  The banks are overwhelmed with work with so many foreclosures available for sale.  Because they are NOT in the real estate business, many systems have not been streamlined to provide timely answers to home buyers. 

 If you are right for it and do not have a deadline that you must make your move in, you can get great deals but it will take patience on your part, and tenacity on mine.  There is risk involved for you financially and a lot of work to be done when offering on a property such as this, and you need to be fully committed to your decision to buy and provide all documentation and sign all waivers needed.  It is risky, many of these homes are sold as is with no warranty and no disclosures.   Buyers for these homes sign many rights away.

 Defining the Difference for you:

A short sale is when the lender is willing to accept less for a home than what is currently owed by the homeowner.  Across the country most real estate markets are feeling the pinch. Most sellers who find themselves in this scary position often think their only option is giving the property back to the bank and going into foreclosure. The Short Sale is a far better option for many sellers, but may take a longer time for the bank to make their decisions on what kind of losses they are willing to take.  If the home owner has a first and a second mortgage, both have to be negotiated.  BUT in most cases, these homes will be in much better condition than the other challenged properties we will visit.  SO THEY CAN REALLY BE WORTH THE WAIT FOR A BUYER, and can take as long as 90 days to negotiate and close.

A bank owned home is when the home has been through the foreclosure process completely, it was financed with a conventional loan by the former owners.  Chances are this home has sat vacant for some time with no utilities before the bank bought back the home, cleared the title and listed it (most likely from the local Sheriff's auction).  Sometimes as long as 12-18 months. Many times they need cleaning and repair.  Contrary to popular belief, the banks rarely negotiate a low offer on a home.  They list them at what they feel is an aggressive price and will allow them to sit on the market for months before reducing the price.  They rarely accept much less than full list price and may or may not pay some of your closing costs.

A VA owned home is when the home has been financed by and repossessed by the Veteran's Administration.  VA loans have more lienient guidelines for credit and no private mortgage insurance.  They charge an up front fee for insurance on the mortgage when the home is originally sold.  This home too typically has sat vacant for many months with no utilities and chances are it is in disrepair.  The process of purchase involves a lot of special paperwork that I can acquire for you and response times from VA seems to be less in negotiations.  There is some room for price negotiation with VA owned homes. If you are a Veteran, you should ask your lender to compare your VA loan option with others available to see what works best for you.

A HUD owned home is simply a home that was financed with an FHA loan thru the Federal Housing Administration.  FHA insured the mortgage and has repossessed the home.  It too may have sat for many months with no utilities and be in disrepair.  There is an on line bidding process with a formula for successful offers generally below the price listed (unless there are multiple competing bids - however, it is essentially an on line silent auction).  You must work with an agent who is registered to do HUD bidding who has a key to let you tour the property. You cannot go on-line and bid on the property yourself, an agent must help you. For FHA buyers there is currently a loan program that offers $100 down payment and up to 3% closing costs paid for the Buyer. However, earnest money as a certified check is required with paperwork that MUST be received by HUD within 48 hours of an accepted bid or the bid is canceled.  The sale requirements for obtaining a loan or having cash to buy apply for HUD properties. They may offer escrow money for repairs to those who want to occupy the property and finance thru FHA. HUD homes are not Section 8 housing or offered to those who cannot quality for a mortgage loan.  Inspections should be done, HUD however will not pay for repairs as a result of those inspections and the potential buyer must pay for utilities to be turned on for inspections as well as pay for all inspections. 

Corporate owned homes are generally homes that an employer has bought from one of their associates so that they could relocate to another area.  A relocation company is most likely involved.  Many times relo will pay for customary closing costs and repairs needed after inspections for buyers.  Utilities are generally left on, the homes for the most part are in good condition and have been inspected and may have had repairs or improvements completed.  A "lowball" offer will be considered and generally a response will be received within 10 days or less of the offer.  There is also a host of paperwork including liability waivers and property disclosures required stating that the owning company has no legal liability for the home. 

Again, buying a home for sale like these can be a GREAT buy for you, but is risky.  You should ask your agent about a third party home warranty and be sure to have good home inspectors in for a look.   When you apply for a mortgage with your lender, you should ask about how any possible repair escrows would be handled if needed and if they are willing to finance any of this with specific programs.  Some homes may be eligible for USDA financing and you should ask your mortgage lender about this type of loan and the property and income requirements as it is one of the few zero down payment options available now heading into 2009.

  Copyright 12/2008 by Vicki Owens, ABR, CRS, GRI, Andy & Associates, Realtors.  Operating in the Central Ohio real estate market within a 30 mile radius of Marysville (In Union, Frankin, Delaware, Madison, Champaign and Logan counties) Contact Direct: 614-440-5174 website www.vickihelpsu.com This information is provided from the views of a Realtor and is not in any way indicating legal advise to the public.  An attorney should be consulted about contracts and legal obligations.

That IS the question.  So What Is A "Short Sale" Anyway?

A short sale is when the bank agrees to take less than what they are owed on a mortgage and forgive some of the debt in order to avoid foreclosure.  The key is "to avoid foreclosure". 

In this 21st Century market, many home owners that purchased their homes anywhere from 2001-2006 have come to find out that their values declined.  VERY disappointing when so many were promised appreciation by super charged sales reps, real estate agents and mortgage lenders.  But the best thing to do if you can ride out this market is NOT TO MOVE - at least for now.  Homes historically are a long term investment.  Inflated appreciation during those years was a way of the market, not the representative.  Pay your mortgage on time and stop bellyaching that your timing was off and you purchased a home in an up market. You made the decisions, signed the papers and own your home - or at least you pay for a mortgage on the home and the bank holds your deed. It is easy to point fingers are whomever sold you the home, but what is done is done.

Another reason for distress for home owners losing value was the "second mortgage" boom.  Home equity lines of credit, consolidation loans that use your home as collatoral - once upon a time these were called "second mortgages" - and they still are.  In order to sell your home, your current home MUST be paid off (at least in Ohio).  This means that you used up your equity. If you did not have that loan to pay off, you would be taking away that money today in a sale. 

When home owners think about making a move, it may come as a big surprise to them that they owe more than they will get on today's market.  And there are expenses to sell as well. About 8-15% generally (or to put it simply 8-15 cents on every dollar).  So with this discovery and the desire to move for whatever the reason, home owners are getting angry. Angry at the bank, lender, appraisers, Realtors, tax man - whoever.  But the only answer now is to look at the whole picture and see if moving on is a good route now.

SO, many are tuning into the web and news to learn about "this short sale thing".  And some are even so angry that they go to extremes to not pay their mortgage, wreck their credit and anticipate foreclosure.  Anger at market conditions is not a reason to consider short sale.  Pay your bills, improve on your home and stay put.  This whole "just walk away" hype (if you've seen it) is childish and irresponsible.  It's as silly as not making your car payment because gas prices are too high or screaming at the clerk at the mini-mart for the same.  As unfortunate as it is, many people are really stretched in their budget now.

It all started somewhere.  And yes, some people were misled to believe their monthly payments would be less than they anticipated by ambitious or misinformed sales people.  Some ambitious lenders qualified home buyers on the start up lower payments available with special loans and not for the payments they would maximize out at a few years later.  Some ambitious lenders provided loans for far more than the homes value with the second mortgage boom.  Some ambitious lenders qualified buyers on what they told them they had for income (fudged the numbers) and did not thoroughly check out the real numbers. At the time, no one thought twice about it, the programs were available, the government insisted that lenders have programs for credit challenged potential homeowners and it was common in the business.  And everyone wants the American Dream, we all want what we want and we want it now - instant gratification.

The Short Sale IS an option for someone truly in hardship.  Whether is was due to one of the above "just plain in over your head" loan reasons, a divorce, job loss, illness - the truth is that when a person gets behind on the mortgage and wants to work it out and save some face and credit the short sale may be the answer.  The process IS NOT an easy one, there is no "instant gratification" answer. A short sale is not the "silver bullet" to easily relieve you from your debt.  As a consumer, the first step to take when you see truly you cannot pay the mortgage is to call your lender. Ask for the loss mitigation or loan work out department.  Please be leary of companies that are charging an up front fee and including the negotiation of your home's short sale in their program to consult or consolidate you out of debt. That is a brand new industry with no regulations - you should consult an attorney to review your rights.

Take out that envelope you have not looked in since you closed on your house and read over your mortgage.  See what sort of penalties that you may be facing and what can happen when you are in default on the mortgage loan.  Banks do not want your house back! Many times they are now refusing deed in lieu of foreclosures. Ultimately, they would like to see you get up to date and some may re work you loan to make it more affordable if you have not moved out of the home.   The foreclosure process for lenders is extremely expensive.  And today, they are overwhelmed with requests - be patient in working to reach the right person and ask for a short sale package.  If you do not get it in a week, call back again - and get on the horn to some of the best Realtors in your area to see if they will consider taking on the short sale with you.

It takes tenacity and team work between you and your agent to get to the right person at the bank who will help you get the job done.  Do you know why you need an agent to help you?  Because not only will you need someone to market and sell your home quickly at a very competitive price, but the agent will have to communicate with your lender(s).  The agent can help you put the package of paperwork together to prove your case on why the bank should take less than you originally agreed to pay. A hardship letter, net proceeds of the sale, prove market conditions through professional analysis, bringing offers the bank will review and accept with their requirements.  A long list and hard work.  Many times with larger banks, it can take 6 weeks or longer just for the completed package (which can be a challenge in and of itself) to be assigned to a negotiator to work out the loan.

And just to note too, the agent is taking a risk that they will get a reduced fee paid to them, or not be approved at all, yet with a lot of extra work.  It takes a dedicated agent that knows the market, has strong communication skills and what they are doing. Not a job for your friend who just got their real estate license or for a part time agent who has never done a short sale.  The bank will be taking a loss, but only if they agree to do it.  The bank takes time to look at offers because they have to weigh how much the short sale would possibly save them rather than having the home go to sheriffs auction* repairs and fees to re-sell. You must be honest with your agent it you know that your home is on the way to sherriff's sale. (And if someone promised to pay you for something they were using of yours, you would be reluctant to take less too, wouldn't you?)  Keep in mind, "the big bad banker, builder or agent" did not force you into this situation. When you call for help, be kind.  You know the old saying "you get more flys with honey".

(*a side note here to buyers on sheriff's sales - generally the bank will start the bid and send reps to buy the homes back to acquire the deed. The homes are not open to look at and inspect to buyers or Realtors, are generally in awful condition from sitting vacant for months or even years and can have liens that must be paid by the buyer - a good deal for investors and handymen with financial resources, but not in "move in condition" to live in right away as a general rule. And if you win the bid, you must have 10% down and a financial plan to pay on auction day)

Something else you should know is that you, the former owner, can be taxed as income on the amount that the bank forgives you.  So as an example, if your $180K mortgaged house sells for $160 and their are selling expenses too, you may end up taxed on as much as $30K or more.  The government is trying to work through some programs that may provide relief for this, but so far, not a definite unlimited yes.  You may owe the IRS when you file your taxes that year - and that is something you most certainly do not want to tangle with.  Be sure at your closing to ask the bank, title rep and a tax professional about this.  Surprises are not good when you are trying to bounce back financially - and I am sure you have had your share of "bad surprises" if you are reading this.

If you have a second mortgage or equity line, this complicates matters more and essentially you and your agent must do the whole process twice.  The second mortgage lender may or may not forgive the loan and you may be left having to finance your debt into an unsecured loan (a signature loan) if you have the credit and resources to do it. If you do not have the resources to do that, the second lien holder can stop the sale by not forgiving the loan. They have to be convinced too on the idea this is a better answer for them than foreclosure. And your credit will suffer, but not like a foreclosure or bankruptcy on your credit history.  With lessons learned, you can be back on track in as little as 2 years as long as you pay your bills on time and watch your spending.

Sounds like a lot of work and trouble, doesn't it? But consider the alternative.  If you are foreclosed on, with the recent tightening of lender requirements, it could be 10 years before you are eligible to buy another home.  Do you know where you will be in 3 years, 5, 7, 10 years?  You can have judgments and other liens against you for years too.  Doesn't it make sense to put yourself to work at something that will get you out of that dark cloud and let you move on with your life sooner?  Isn't it a shame that it is so much harder to get out of it than it was to get in?  Such is life. And I know from working for years with many people that good work ethic and pride does still exist here.  Taking a temporary ego hit beats every time a decade of getting denied for credit and financial worry.

For buyers in this market the short sale can be a great opportunity. HOWEVER, it will take patience on your part as a home buyer for the process to work.  A short sale IS NOT for someone that needs a place to live in 30 to 45 days, it is generally NOT FAST.  Homes that are short saled are sometimes some of the very best buys because they are generally in move in condition and priced below market.  The home owners have loved their homes, are sad to go, but thankful for qualified buyers willing to wait while the details are worked out with their bank.  Buyers agents too must know what to expect, not over promise and bring the buyer's offer with a preapproval from a mortgage lender. The offer cannot be contingent on the sale of a buyers current home. Much of the waiting will be out of control of the seller or their agent.  And sometimes a buyer's agent may have to share in the income loss by sacrificing some of their fee as well.  So it also takes a dedicated, experienced buyers agent and understanding home buyers for this to work.  Short sales are not a playground for ruthless negotiations and demanding time constraints.  The selling bank will really be the one in charge and all parties will have to be willing to let that happen and go with the flow to end with a successful closing.

And one more thing. . .in today's market, when you are a seller, whether you are fortunate to take away some equity, can come up with your own money to clear the debt OR have help from the bank with a short sale package. . .you cannot take personally low offers on your property.  Being offended by low offers is self defeating and will not lead you to meet your goals.  You need to buck up and get over that and counter offer as reasonably as you possibly can.  Especially with short sales, you do not know what the bank will accept and until you get their go ahead after the extensive package and contracts are presented.  Remember, with short sale you are getting assistance and just barely escaping foreclosure if you are fortunate enough to get the transaction completed.  Buyers WILL see short sale as desperation to sell.  You MUST put your personal feelings aside and cooperate as a team member with agents and the buyer to get the job done.  This will include maintaining the property, including the expense of utilities, whether you are living there or not until the sale process is complete.

Hopefully I have shed some light for you on what the process is, is not, and some details on how it works. There is a lot of gray area, no monitored regulations on the banks to promptly respond, and can be surprises for even the most experienced agent. I am no way offering this information as an attorney or member of the legal profession, but from the perspective of a Realtor. Again, you should get the assistance of a good attorney to answer your questions if you feel a short sale is for you.  

This information was put together as a reply to many of the questions that I get daily.  If I can help you within a 30 mile radius of the Marysville, Ohio area, feel free to call me at 937-644-3385 or 614-440-5174 or send an email to me at vicki_owens@hotmail.com  All information is kept confidential and there is no need to feel embarrassed or alone.  This is the state of the real estate market and a natural economic correction.  You are definitely NOT alone, should set the ego and emotions aside, get the bull by the horns and take some action. 

Copyright 12/2008 By Vicki E Owens, ABR, CRS, GRI, Andy & Associates Realtors.  For more information about my services, visit my sites at www.vickihelpsu.com, www.listitagain.com and www.movetomarysville.com Direct: 614-440-5174

Submitted by Vicki Owens, ABR, GRI, Andy & Associates, Realtors

Allow me to begin with a story: Mary Jane and Doug are really nice people. They have 3 children and have relocated into a new area for Doug's work nearly 2 years ago.  When they moved here, they had a home to sell back home and decided it would be best to rent an apartment until their home sold.  There home did sell about 4 months ago and they have a little money in the bank saved for a down payment.

Over the coarse of the year, they had to trade both of their older cars for newer ones because they had a longer commute to work and their vehicles were starting to show a lot of wear and costing a lot for repair.  In addition, 5 months ago, Mary Jane got a new job and used some of their credit cards so that she could have a new wardrobe for her improved position with the employer.  Then Christmas came and went and they charged some toys for the little ones and gifts for their families.

About a year ago, they began looking to buy their new home.  They found a home that they absolutely loved.  They wanted to make an offer and went to talk to some mortgage lenders to find out what their payments would be.  After meeting with several lenders who had looked at their credit, they realized that their credit scores were lower than they expected.  The debt they had taken on and a few late payments on those credit card bills had put them in a position that they could not quite afford the house they loved.  Houses in a lower price range that were available just were not large enough for their family or were in such poor condition that they could not move right in.  Both working, they just didn't have the time, skill or cash to rehab a home.  Needless to say, they were very disappointed.  They would have to wait awhile longer and work on their credit.

While driving around on a Sunday afternoon, they spotted a beautiful home with a sign that stated "For Sale By Owner Lease/Purchase Available Bad Credit OK".  They called the number on the sign and the owner came and showed them the home.  It was just stunning. The owner, Jack, had recently divorced and was struggling with his home improvement business and could no longer afford to live in the home.  Mary Jane and Doug knew that this was much more home than they would be able to afford to buy outright, and signed a lease purchase agreement with the owner feeling they were getting a great deal.  They could paint, improve the home, do anything they wanted to do because they had a purchase agreement with Jack.

They used all but $1000 of their savings to give the owner a $5000 down payment to move in. They agreed to pay Jack $1700 a month for the home. They moved in and their was plenty of room for the kids, their things and Doug even bought the new big screen TV he's wanted since they moved to town.  Mary Jane got some beautiful light fixtures that they installed in the home and decorated the kids rooms so cute.  Oh how they just loved this house!!

About 6 months after moving in, the sump pump in the finished basement stopped working during heavy rains. Doug opened an account at the home depot, and replaced the sump pump, the damaged carpet and trim and ended up with quite a bill to pay for the repairs. 

In the 7th month, Mary Jane noticed they were starting to get urgent looking mail for the owner of the home, Jack.  She called him, but had a hard time reaching him as his cell phone was disconnected.  When Jack came to collect their payment for month 8, 3 weeks later, he was quite distressed and told the two that he had been unable to pay the mortgage for several months. His divorce was finalized and he had big child support payments now. He explained, nearly in tears, that the bank may foreclose on the home and they will have to move out. Jack apologized profusely to Mary Jane and Doug and drove away.

Stunned, Mary Jane did not know what to do.  She was in a panic.  She made a call to her real estate agent that they had dealt with when they were looking for homes previously and asked her what to do.  The agent advised Mary Jane to contact an attorney.  Doug was just plain mad.  They had paid and paid and even had debt on the home, done all of these repairs and improvements, and for no fault of their own had to move out?  Mary Jane called Jack's mortgage company to see if maybe they could assume toe loan or make up payments, and found out that even the property taxes were behind and that and homeowners insurance needed to be caught up.  With late fees all to the tune of over $20K!!  They knew there was no way a mortgage lender would approve them for a loan on this home, it was worth way more than they ever shopped for.  They started to look for places to move.

And if you are on the edge of your seat to find out what happened. . .well, it's a fictional story, but points out what a major pitfall can be to the lease purchase option.  What if Mary Jane and Doug just decided one day they didn't really like the house enough to buy it? If they were leasing from an investor or builder, the builder may say fine, move right out. And the owner of the home may never have had any true intention of selling, just renting with a big deposit up front, knowing they would have to go in and clean it up to do it all again.  Again, Mary Jane and Doug are vulnerable as they have no way to get a refund of the down payment or for any improvements they added to the home without paying attorneys and going to court.  .

In lease purchase you don't own it until the deed is in your name.  Most of the time, at least here in Ohio, this is when the final payment is made to the owner, whether that be with a mortgage loan up the road or actually paying him for years.  Paying lease payments to Jack doesn't show positive on your credit, does not show that you own anything and you cannot take out an equity line of credit or gain tax deductions benefits on a house you don't own. 

I understand folks with not so good credit who are just so anxious to be in a house they will agree to almost anything.  Many times, I've helped people be patient and work through those credit issues, sometimes for years or through several loan resources, and to not be as emotional about what is essentially a huge business decision for your personal finances.  With us being such an instant gratification society, so many people who have bumps in their credit do not want to take the time to untangle the knots and make it better. I know it's hard, yes, it takes effort.  It is so wise to calm down, get a reality check and find a resource you can trust to help resolve things.  Whether that be with your banker or financial advisor. You need to take this dream seriously!  Otherwise, you are open season to expensive lenders, hungry vendors and opportunists who see you as another way to make a quick buck and not give it a second thought about your well being. The old saying "if it sounds too good to be true, it probably is" applies here.

Also, something else to think about is the recent falling values of homes.  I get many calls from folks who have been in that lease now for 12-24 months and are finding that the price they committed to is too high.  The appraiser comes in and the home does not appraise for what they have it in contract for.  Sometimes the owner is extending the lease, sometimes the price is renegotiated, but many times the folks holding the lease move out and look for something else, losing anything they paid or updated in the property.

And yes, I've had some people who contact and question me about lease purchase be absolutely nasty to me  treating me as the enemy when I explain I do not accommodate these types of contracts and suggest resolving the credit problems and getting a mortgage.  Well, you asked and I answered, sorry you did not like the answer. If you want someone to take advantage of your vulnerability, not care, and not discuss the options and pitfalls with you, you've called the wrong agent.

Maybe I "shoot myself in the foot" by not doing all I can to take advantage of people and hooking them into something that they cannot afford, but I have to sleep nights folks.  They will find someone else to "help" them I am sure with just a few more calls. And we wonder why there are so many foreclosures?  I want my clients to know that I have their best interest in mind and feel comfortable passing my name along to a friend, co-worker, neighbor or family member as an agent that has patience, does the right thing and keeps her client's best interest in mind.  That's the backbone of my business.  So far, so good.  Thanks for reading.

Vicki Owens is a top producing real estate agent in the central Ohio area offering both buyers and sellers top of the line, highly recommended, service for the past 5 years running.  For more information about the author, Vicki Owens, ABR, CRS, GRI, and services offered from her with Andy & Associates, Realtors, visit her website www.vickihelpsu.com.  Feel free to email vicki_owens@hotmail.com with questions, comments and your experiences to vicki and see her website blog at  http://www.vickihelpsu.com/blogs/frequentlyaskedquestions/privaterss.aspx or call 937-644-3385 or 614-440-5174.

By Vicki Owens, ABR, CRS, GRI, Andy & Associates, Realtors

Want to sell that house in today's market?  You know you need to clean, remove any wallpaper or borders, give a fresh coat of off white paint and de-clutter.  But if you really want to capture that buyer for top dollar fast, here are the top 10 things you should know, and put in your budget to do, before you ever go on the market:

1) PRICE IT RIGHT: With all due respect, your home is where you live and a place to be proud of.  If you are attached to it, that is only natural.  BUT, you can sabotage your chance to sell by hanging on to emotional ties and refusing to make improvements and updates.  Find out what area homes have recently SOLD for and price accordingly.  Just a few thousand too high and your buyer may never even make it through the front door. If you cannot afford to price right, find a way to stay put and get more equity into your home..

2) FLOORING: Shiny vinyl floors are OUT, berber carpet is OUT.  Move on to more soft, warm earthy tones. There are many affordable vinyls that have a wood or tile look. (and carpet in the kitchen or bath is a huge no no)  Pink, green or blue (and even sometimes gray) or dirty worn carpet will sabotage an otherwise great house.  Replace the carpet. An updated beige frieze' is best.

3) CLEAN THE BASEMENT & GARAGE: You get 5-20 minutes for a buyer to take a look.  Make that basement (including the windows, sump pit, floor and mechanicals like furnace and hot water tank) sparkle.  Throw away or organize your junk.  These areas, although unimportant for us to live with looking shabby normally, are very important to the impression of the potential buyer.  Junk and dirt show them the home is not well maintained.  Paint your stairs and floors, seal the walls with white sealer for an extra clean like new look, get the junk out of the garage and clean/paint it to sparkling too.

4) WINDOWS: Get rid of floral, fruity, lacy or dusty worn out curtains.  Dust or replace those blinds and wash the windows and window sills.  Heavy, custom draperies are OUT.  Replace plain old curtain rods with some decorative ones and take a look at the home décor isles of some of the more trendy stores and use your imagination to make that sparkling window more modern.

5) APPLIANCES: Bisque and white are OUT.  Black and stainless are in.  You do not have to spend a fortunate replacing the appliances but it can really pay off when the kitchen "pops"  Kitchens and baths sell homes.  No one wants to buy a home with missing or dated appliances.

6) LIGHTING: Builders brass and vintage 70's & 80's is OUT.  You can find affordable fixtures on sale many times that have a brushed nickel or cast iron look finish.  It will amaze you what a difference new light fixtures  can make.

7) COUNTERTOPS: Pink, blue, green or worn chipped laminate countertops can detract from the entire kitchen or bath.  Earthy granite, marble and composites have become much more affordable and make a huge difference.  Even changing out the cabinet hardware or mirrors (an easy change) can make that old sleepy kitchen and bath into a "new room".

8) WOODWORK & DOORS: Scratched up or dirty woodwork and cheap looking flat doors just don't get it.  Shine up, replace, re-stain or paint that woodwork (not colors, just washable white).   Replace flat panel doors with 2 panel or 6 panel doors with some updated nickel hardware.  It is more affordable to do than you think.  Give extra care to solid wood doors and show them off.

9) EXTERIOR: A new front door can give your whole house great curb appeal.  And take a good look at those big garage doors.  If they are not dented, paint them.  If they are dented, replace them.  Again, much more affordable than you think and can make a huge difference in your price and length of time on the market.  Paint trim and replace shutters or gutters if needed.  Add a storm/screen door. If the roof needs replaced or repaired, do it.

10)  MISMATCHED OR WORN OUT FURNITURE: No, the buyers are not buying your furniture. BUT an old stinky worn out chair or the coffee table the puppy chewed the leg on are a distraction.  Again, use your imagination.  Cover the chair or mismatching furniture, get rid of the table, move matching pieces to rooms where they match, buy a few new throw pillows and remember less is always more when you are showing your home, so you may want to put some stuff in storage. 

Clean is the smell of the year! Thoughtful welcoming treats are nice. Nice landscaping helps. Make your home a place that you, on first visit, would want to buy all over again! Yes, these things can cost some money and do take extra effort, but also show your buyer that you are dedicated to making your move. For more information or to schedule a personal evaluation of your home, call Vicki at 614-440-5174.  She has an excellent track record for sales and service and comes highly recommended in the central Ohio real estate market. Visit www.vickihelpsu.com today for more information about the extensive marketing services offered.