Jody's Blog

Short Sales verses Forclosures

Jody Orns (Charles Rutenberg Realty) — Wed, 08 Aug 2007 19:22:48 -0500

Short Sales

Negotiated Settlement
No Attorney fee
sellers credit bruised
Lien negotiated

Forclosure

Court settlement
Big Attorney fees
No peace of mind
Buy in 10 years again
All Liens extinguished

Lender wins with a short sale.

Proceeds within 24 hours of closing.
Reduced non performing inventory.
Full blown apprasial/ BPO

Seller wins

Possible 1099 for forgiveness of debts. If they dont have assets they dont pay tax. They have to be broke! If seller owes more then 1 property this is not the best thing to do. If the seller has little or no equity they can walk away from the property with the help of a good realtor. The seller will be left with credit that can be repaired in 2 years verses 7 with the forclosure. Its a win win for everyone seller- buyer- bank. The bank will also end up with more money in their pocket so they are happy to accept a short sale offer. Agent is happy they have motivated sellers a property that is below market value and buyers that are happy to get a deal.

What Real Estate Agents need to know about SHORT SALES part 1.

Jody Orns (Charles Rutenberg Realty) — Tue, 07 Aug 2007 15:14:52 -0500

What is a Short sale ? Lender is willing to take less then what sellers owe just to close the deal.

Its a win win opportunity for the seller.

seller stays in property longer.
smoother transaction
0 proceeds to seller-seller does not owe bank money either.
no defiency judgements

The process with the seller.

Creative offer from 3rd party
avoids forclosure on credit
may avoid bankruptey
less worry- no padlock on door.

Top Short sale opportunities for Real Estate Agents.

Health issues
Lis Pendence
divorce
loss of jobs
2 house payments
distressed sellers
Forclosures

How to sell your home without an Agent, part 2.

Jody Orns (Charles Rutenberg Realty) — Sun, 05 Aug 2007 23:06:27 -0500

Check financing at least once a week with the mortgage Broker so that you can help the buyer
understand their down payment and monthly payments.
You will need to buy a amortization table from your local bookstore. Be prepared to explain loan types to prospects.. back end and front end ratios..You must understand this or you could spend months with a buyer who can not get financing.
Beware of contingent offers.. the property could be tied up for months or even years. The buyer could be a dealer who wants to hold the property as if it were a option that would be exercised only if another buyer is located.
Understand fully the tax consequences of the sale. Have you cosidered the advantages of a tax- free
exchange where you choose the property you recieve?

If you are determined to sell your home yourself, I wish you good luck. I will, however, be here if you would like to discuss some of the advantages of having agency representation.

Thanks..I hope you enjoyed this post.