I am through day three of my Brokers Qualifying Class- Today was Real Estate Finance.

 Our class has some insightful discussions as you may have read in my earlier blog about Ethics- Is it a fine line? 

Today was just as interesting. We got into the discussion about Foreclosures- of course- everyone is talking about foreclosures. We also talked about one of my favorite subjects these days- the short sale. A short sale is when a lender agrees to take less than is owed on a property to release the mortgagor from the loan. The owner puts the home on the market for fair market value, less than is owed. When an offer to purchase is made the parties go into contract and the contract is sent to the bank for third party approval. Short sales are not easy but for the seller and the lender it is a way out- Easier on everyone than foreclosure. The owner takes less of a hit to their credit, and the bank does not have to take back ownership. We are seeing more and more short sales everyday and I think they will continue for some time.

We talked about how we got into the situation we are in....??? and when it will end. We came up with no answer on that one!

Another conversation that is a familiar one in the market today- is where are the buyers? There is loads of inventory at great prices and low interest rates, there are still ways to buy homes with no money down So why are they not rushing out to buy? The conclusion is that we need the media to finally say what we are all waiting for- Ok It is a great time to buy real estate until then the home buyers are terrified.

So we have three days down in our class.... We are off now until Monday. It gives me lots of time to read and reread the book, take some practice tests and sharpen my skills.