short sales: Are the days of plentiful short sales numbered?
- 01/15/14 09:09 PM
Let me preface this by saying that short sales have been around for a long time and there will continue to be short sales as long as there are mortgages. With that being said, with stabilizing house values combined with more reasonable lending practices over the last few years, fewer and fewer sellers are finding themselves in a short position these days. Equity in real estate is no longer considered to be a savings account. Second mortgages and lines of credit are harder to obtain, and many more homeowners are building an equity cushion to soften the blow of future market … (31 comments)
short sales: If YOU can’t get your specialist to call me…
- 07/29/13 08:04 AM
I’m still trying to close a “short” sale that we started working in March 2012. It’s being serviced by one of those large banks that has part of a continent in its name. The cavalcade of failures from inception to the present would be laughable if it were not so frustrating. But one pervasive element is fundamentally clear. There can be no expectation of communication at any level of the transaction. On this loan, I have been in direct contact with supervisors on nearly every step of the transaction. Even the supervisors can’t get the appropriate specialist to call me. And … (8 comments)
short sales: What's the first question a potential short sale seller should answer?
- 04/01/13 10:01 PM
What is the first question a potential short sale client should answer? It is probably the most important question of all. Most of the problems involving short sales arise from the fact the seller really doesn’t want to lose their house. As a result the seller isn’t motivated to perform. And without the complete cooperation of the seller/borrower the odds of achieving a successful short sale are severely hampered. The short sale process is invasive and tedious. It involves a lot of people doing a lot of work. Listing agents, buyer’s agent’s and their buyers, negotiators and investors can all expend … (10 comments)
short sales: A million short sales in 2013? I doubt it and here’s why.
- 02/27/13 09:56 PM
Some prognosticators have predicted that the number of short sales completed in 2013 will double the mark set last year and approach one million for the calendar year. Full disclosure: I am NOT an economist. I am NOT a statistician. My rebuttal is not predicated on anything more substantial than common sense. But here are my reasons that we will not see a million short sales this year: First and foremost, the system can’t handle the volume. There isn’t enough infrastructure in place to successfully complete that number of transactions. Second, most of the pre-2006 investors are already out of the … (13 comments)
short sales: Buying a short sale is not for the faint of heart!
- 11/14/12 09:12 PM
Buyers are often attracted to short sales by seemingly low prices. And these distress sales are often confused with the purchase of a foreclosure or bank owned home. But there is a big difference between the two types of sales. In a short sale, the seller holds title but is unable to transfer it without a reduction or elimination of security liens against the property. At first, that seems like there is a potential for an easy resolution, however that is not always the case. It all depends on the type of loan, the loan servicer, the end investor, and the … (9 comments)
short sales: Short Sale Mountains to Climb.
- 10/04/12 10:07 PM
After being told yesterday that a FHA short sale that took six months to open had been unceremoniously closed after six additional weeks without a negotiator being assigned, I began to what in the world “loss mitigation” is all about. I fully understand that these departments are understaffed and overworked. I also realize that my offers are just a drip amidst the torrent of underwater files that need to be salvaged from the oceanic depths of distress. But regardless of the overburdening of these workers, there still needs to be channels of communication open and available. Most people are patient as … (12 comments)
short sales: Foreclosure Round Two. Have we learned nothing from the past debacle?
- 02/24/12 09:29 PM
In Coweta County Georgia, we are starting to see some houses listed as short sales and REO and HUD sales for the SECOND time in the last few years. How did this happen? Did we learn nothing from the past? Have year after year of buyer incentives and continued low down payments completely eroded the fundamental concept of ownership? True ownership involves skin in the game. It is too easy to just walk away and there are fewer and fewer consequences with each passing month. And yet the clamoring continues for easing mortgage qualification requirements. Leverage has toppled the market. The … (18 comments)
short sales: My plan for addressing the current housing crisis. It won’t make me popular but please consider my very humble opinion!
- 10/27/11 01:17 AM
Someone needs to say it. It will not be popular. It is an extreme position. We need to ban short sales on federally backed loans. There, I’ve said it. In my opinion, the biggest negative force applied against housing stability is the short-sale option. It offers an “easy way out” for both the borrower and the lender. As a result, there are probably a lot more distressed property sales that continue to suck prices into the vortex of the downward spiral. One cannot overlook the fact that short-sales hurt those that paid cash, made large down-payments, or did not buy more … (37 comments)
short sales: Old listings don’t die. They just fade away!
- 09/16/11 01:30 AM
In today’s real estate market, there are only two kinds of sellers. Those that have the ability to sell at market price and those that do NOT. Every seller wants to sell, but many are burdened by mortgages far in excess of the value of the property, or they refuse to accept the realities of the marketplace and their expectations are unrealistic. There is however one inescapable truth: Unless the seller has the ABILTY to accept a market price the property will not sell. So the seller has two options: They may either accept the fact that the property will not … (45 comments)
short sales: Who is a lender really helping by agreeing to a short sale? Here's a hint: it's not the buyer or the seller.
- 09/05/09 11:58 PM
There is a lot of talk about lenders and short sales, and about how the process of negotiating a short sale can be a long and tenuous undertaking. It is a stressful time for everyone that is involved in the transaction. I hear agents complain all of the time about frustrated buyers backing out of their contracts after months of negotiations. They blame the buyers for not appreciating the complexities of getting a lender to agree to possibly lose money on a loan. Yet lender can take months to arrive at what would seem to be a very simple decision. And … (94 comments)
short sales: I'm an auctioneer, but I don't recommend auction for most buyers!
- 03/06/08 11:55 AM
Let me tell you first and foremost, I an a licensed real estate auctioneer and broker. I get calls every day from buyers wanting to get a good deal at an auction. We conduct voluntary auctions on a regular basis, but here's the reality of most cases: You can probably get a better deal on a short-sale than you can at an auction! I hate to say it, but it's true. We are bound to clear title on properties that we auction, and that means paying off mortgages and liens. In a short-sale however, the bank will actually take less than what is … (8 comments)
short sales: More Real Estate Auction Tips
- 03/01/08 11:34 PM
As a real estate auctioneer, it is imperative that I secure the highest bid possible. The seller of the property is my client, and my business depends solely on my ability to get buyers to the auction, and to entice them to bid on the properties we are offering. It sounds easy, but its not. With so many foreclosures, short-sales and REO properties being offered, auctions don't fire up the enthusiasm as much as we would like. But if you find yourself at an auction, here are some tips: 1) If an auction is advertised as "Absolute," the property will … (6 comments)
short sales: Coweta County GA could be anytown USA!
- 03/01/08 06:11 AM
The economy is on everyone's mind these days, and residents of Coweta County GA, a bedroom community near Atlanta, are no exception. The county seat, Newnan, could be like any other small town in the United States. We have our quaint downtown square, which is still alive and robust, with nice little shops and eateries, and we have our "strip" section, with Wal-Mart, Best Buy, the chain restaurants and and all of the other "this could be anywhere" stores. What isn't so readily apparent, is that the economy of Coweta County is hurting, because one of its major industries is suffering. … (1 comments)
Let me preface this by saying that short sales have been around for a long time and there will continue to be short sales as long as there are mortgages.
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