* This blog post is part of a 6 part Series on Short Sales.
Short Sales are a hot topic in Grand Rapids, Michigan right now. Indeed in the entire country! Currently about 1 out of every 13 homes on the local real estate board has a little red tag in the listing comments that reads: sale subject to bank's acceptance of short. When real estate agents see these notations, many groan.... Why? Because, negotiating a short sale is the Wild West of Real Estate these days! There is no shortage of surprises, twists and turns in the process.
Five years ago, a home that was in Foreclosure listed on the Grand Rapids Association of Realtors Board was a rarity. I have been selling real estate for almost 12 years and only within the last 3 have I seen this sort of dramatic upsurge in Vacant homes and Homes in Foreclosure or requiring Short Sales.
Approximately six years ago, when the "Creative Lending Business" was throwing out the lasso widely to catch whatever was breathing and able to request assistance with a mortgage, money was flowing freely and all kinds of deals were financed, many of which were breathtaking in their daring and lack of common sense business principles.
Talking to a longtime loan officer today, she shared some interesting experiences she has had with the automated loan approval process. She said there were times that she would stare at the computer after a loan was approved and wonder how such a "smart computer" could give such a dumb decision.
Case in point...Buyer wants to purchase a home. The credit is pretty good, but there is limited income. Running the transaction through the automated approval process denies the loan at $100,000, $90,000 and also $80,000. Then the loan is run through the a Community Loan Program and Voila!...it's approved with the Exact Same Criteria for $105,000. And no...the criteria for the application was NOT changed. Perhaps, some readers in the Mortgage industry can shed light on the rationale of that one!
The reasons why there are so many Short Sales are varied and do not always involve an inappropriate loan being taken on a home. We will look several factors which include examining how to make wise use of financing alternatives. In this series, we will be discussing the process of Negotiating a Short Sale and factors to consider in determining if this is a viable option. Every situation is unique...to discuss your questions and receive informed counsel, please contact Audu Real Estate for customized care and solutions!
Click this Link to Continue reading more of the series
photo courtesy of Dan Mogford on Flickr
Lola Audu, is the Designated Broker & Owner of Audu Real Estate. Our company specializes in helping people buy and sell homes in the greater Grand Rapids, West Michigan area. We've had the privilege of helping hundreds of clients succeed in their goals of purchasing and selling property including demonstrated success in the negotiation of Short Sale Transactions. You can contact us via e-mail @ info@auduhomes.com or by phone at 616-791-0511.
;)
;)
