foreclosures: How long does a short sale take? Depends on these 11 variables - 03/12/11 06:34 AM
I’m often asked by clients and by other Realtors “How long does a short sale take?” I would like to give a concise answer, but alas, there isn’t a reliable one. The concise answer is too broad; “3 weeks to 3 years, depending on variables.”
(1) Who’s backing the loan?
FHA, VA, FNMA, Freddie Mac? They all have their different timelines and flaming hoops to jump through. Those flaming hoops eat up calendar time.
(2) Does the lender we’re negotiating with own the loan?
Does the lender own the loan or are they servicing it for someone else, like a pension … (44 comments)

foreclosures: Short Sale Lenders: We can help you avoid owning all this mold, algea, rust and wood rot - 03/04/11 11:59 PM
In a short sale:
The longer the banks take, the sellers are less inclined to subject themselves to the stress.
The longer the banks take, the buyers are less inclined to subject themselves to the uncertainty.
The longer the banks take, the Realtors are less inclined to subject themselves to the wasteful runaround.
The longer the banks take, the buyer's loan officer is less inclined to subject themselves to the frustration.
Mother nature, however, doesn't mind. She continues to work on these houses day and night.
The short sale lenders, the servicers, the mortgage insurance companies and the investors who own … (3 comments)

foreclosures: Check this picture out - it will probably cause more foreclosures - 03/02/11 11:05 PM
As gas prices go up, house prices go down. Buyer's have less money left over to dedicate to mortgage payments. Therefore they have to pay less for houses.

More owners will fall behind on mortgage payments, which will increase foreclosures and short sales, further fueling the downward spiral of market values.
Homeowners who budgeted only $2.00 per gallon and still have to drive to work and bus the kids around can find themselves in trouble in a hurry.
Gas prices impact the price of any product that requires delivery by any means of transportation. Those price increases again take away … (79 comments)

foreclosures: Can I Stay In The House While A Short Sale Is Being Done? - 02/19/11 03:25 PM
Can you stay in the house while a short sale is being worked out with your lender?
Yes! Actually, your lender usually prefers you stay in the house, even if you are not paying the mortgage.
Why Does The Lender Want You Stay?
If you stay in the house, you are protecting the house, which means you are protecting the lender’s investment.
Here’s how you help the lender by staying in the house:
You are keeping the heat on, thereby protecting the house from freezing pipes and water damage. This is very important in the Louisville, KY area. You are keeping … (39 comments)

foreclosures: Will Increasing the FHA Monthly Mortgage Insurance Cause MORE Foreclosures? - 02/16/11 10:28 PM
Raising mortgage insurance premiums raises borrowers payments.
Anything that raises the payment also lowers the purchasing power of the buyer.
Lower purchasing power means sellers have to lower sales prices.
Lower sales prices means more sellers move into a negative equity position.
More sellers in a negative equity position means more short sales and foreclosures.
More short sales and foreclosures mean greater losses to banks and mortgage insurers.
More losses to mortgage insurers means they have to raise mortgage insurance premiums, which starts the process all over again.
I'm just a simple real estate practitioner and I hope my above … (5 comments)

foreclosures: Hanging On Too Long When Can’t Afford Payments – Avoid Foreclosure With a Short Sale in Louisville - 01/27/11 06:10 PM
When the house becomes a money pit liability, emotions must be set aside and the house must be liquidated in the least damaging way possible. Running up more debt or using medicine money and food money to make the mortgage payments just doesn’t work out in the long run.
Rather than let a foreclosure devastate you financially and emotionally, a short sale is usually the best option.
What is a short sale?
A short sale occurs when a house sells for an amount short of the full amount owed to the lender. Hence the word “short” in short sale.
What … (4 comments)

foreclosures: Why Many Realtors Should Refer Their Short Sale Listings To Specialists - 01/26/11 10:28 PM
If a Realtor is not a short sale specialist, he/she should refer their short sale to a local Realtor who is.
The client-centric reason: It is the responsible thing to do for the client.
The Realtor-centric reason: Someone else does the stressful heavy lifting and the referring Realtor gets paid a referral fee.
The Importance of a Short Sale on the Client's Emotional and Financial Health
We have all heard that buying or selling a house is the biggest transaction for most consumers. The importance of that transaction is eclipsed by the magnitude of a foreclosure or short sale.
The expertise … (67 comments)

foreclosures: Job Loss, Health Reasons, Divorce, Foreclosure - I Need To Sell My House Fast In Louisville KY - 10/24/10 04:46 PM
Thousands of homeowners are behind on mortgage payments in Louisville. You are not alone. It’s a local and national epidemic.
·         The job market is weak. ·         House values are down, big time. When the money isn’t there to make the house payment, it just isn’t there.
You know you will recover but it’s a timing issue.
In the meantime this house and the mortgage need to be gone, ASAP.
You want to sell the house before the bank takes it in foreclosure. Your bank may have told you to get a Realtor to sell the house, but you can’t afford … (0 comments)

foreclosures: In Foreclosure In Louisville and The Bank Told Me To Do A Short Sale - 10/24/10 04:30 PM
If you are reading this it means you are taking action. It means you’re not giving up, and you’re looking for solutions.
By seeking answers you are already on the path to recovery, and you have come to the right place to start.
What is a short sale?
A short sale occurs when a house sells for an amount that falls short of the full amount owed to the bank. Hence the word “short” in short sale.
What happens to the difference between the amount owed and what the lender gets?
In an ideal short sale the shortfall is forgiven and … (1 comments)

foreclosures: Louisville Sellers in Foreclosure Tell Lenders: If You Demand The Deficiency I’ll File Bankruptcy - 10/22/10 02:37 AM
Homeowners are hurting. Housing values collapsed. Jobs are evaporating. Bill collectors are calling and suing.
Sellers Try To Help - Banks Demand Deficiency
Homeowners are pursuing short sales which help the bank reduce their losses. In return some banks demand the sellers stay obligated on large deficiencies.
Homeowners Didn't Cause This Crisis and Have Few Options
But, homeowners are pushing back. Just this week a short sale client literally said “if the lender wants the deficiency they can take a number and stand in line.” He also said he’s “that close” to bankruptcy and if the lender pushes him he’ll bankrupt … (0 comments)

foreclosures: In Foreclosure? Look Beyond the Obvious For Real Options – The Short Sale - 10/17/10 03:15 PM
Examples of non-obvious solutions that were better than the obvious ones:
Did you ever think you knew what was wrong with your car but the mechanic instantly found the real problem and solved it? Did you ever think you knew what the doctor would say but her diagnosis and treatment were different? Were you ever sure you knew how to fix your computer but the computer expert knew the real solution? Well, it’s the same with avoiding foreclosure. The obvious solutions aren’t always the best solutions. For example, the obvious solutions to avoid foreclosure are:
Bringing the payments current.
But, if … (4 comments)

foreclosures: In Foreclosure In Louisville? 16 Questions to Ask Your Short Sale Realtor, Lawyer and CPA - 10/17/10 04:02 AM
A short sale enables the “underwater” seller to sell their house even if more is owed than the house is worth. The lender usually forgives the shortfall so the both the seller and the lender can move on. The lender usually pays all of the sellers closing costs and Realtor commissions so the seller doesn’t have to bring any money to closing.
It is vital that the seller bring in a Realtor who specializes in short sales. There is too much at risk to work with a Realtor who is not highly trained and fully committed to performing short sales for … (4 comments)

foreclosures: Avoiding Foreclosure With a Short Sale: The First Meeting With Your Realtor - 10/16/10 03:45 AM
YOU are my client, and the short sale is all about helping YOU avoid foreclosure. It is all about YOU.
Here’s what YOU can expect from our first meeting:
I listen to all YOUR questions and concerns and provide YOU with comprehensive answers. I ask YOU key questions, bringing my years of experience to the table for YOUR benefit. We then customize a strategy, together. There are many variables in a short sale, and we develop a specific plan that fits YOUR circumstances and addresses YOUR wishlist. I make sure to answer all YOUR questions and address every single one of … (2 comments)

foreclosures: Pre Foreclosure Short Sale: Do I Have To Leave The Utilities On? - 10/15/10 02:36 PM
If the sellers already moved out, should they spend their scarce financial resources to keep the utilities on?
Let’s backtrack for a minute. A short sale is a dignified and financially advantageous way for homeowners to avoid foreclosure. The lender accepts an amount SHORT of the amount owed and usually forgives the shortfall. Therefore the underwater homeowner SELLS their home and doesn’t LOSE their home.
So, a successful short sale is the goal. Keeping the utilities on is a good idea because:
It makes the house easier to sell. When potential buyers walk through the house it will be more inviting … (5 comments)

foreclosures: Would You Keep Your Home If The Bank Lowered Your Payments? - 10/09/10 02:59 AM

This is one of the first questions I ask a potential short sale client.
I will not lead a homeowner down a short sale path if there is a possibility they can keep their home AND they actually want to stay in the home.
If the sellers are committed to keeping their home, I strongly encourage them to pursue all avenues to get a loan modification.
Most sellers reply that they’re done with the house and with the struggle. The bank would have to dramatically slash their payments, and even then it would many years for the house value to … (3 comments)

foreclosures: Why Do Short Sale Lenders Demand Offers 30% Higher Than Market Value? - 10/08/10 04:21 AM
It’s a mystery. We can send the lender the electronic log from the lockbox to prove that 20 or 30 agents showed the house and that we got the highest offer the market will pay.
We can send them comparable sales showing market value. We can show the banks the long days on market and all the comparable listings that never sold.
Somehow the lender overrides reality.
Foreclosures Cause Values To Spiral Down. Short Sales Reduce The Lender's Losses.
The lender dooms the house to foreclosure rather than accepting a logical short sale. That causes more blight in the neighborhood, which … (4 comments)

foreclosures: Pre Foreclosure Short Sales: The 2nd Mortgage Doom Loop - 10/06/10 12:27 AM
Recent Trend in Short Sales:
2nd position mortgage holder demands $X dollars more than the 1st mortgage holder is willing to allocate 1st position mortgage holder is unwilling to allocate more Seller doesn’t have the extra money to bring to closing Doom Loop Scenario #1
Buyer is unwilling or unable to pay the extra $X dollars on the seller’s behalf Buyer walks. Takes time to get a replacement buyer, the market continues to decline. 1st mortgage company loses much more than the $X dollars they withheld from the 2nd. Doom Loop Scenario #2
Buyer is willing to pay the extra $X … (2 comments)

foreclosures: In a Short Sale “Is it better that I move out?” - 09/30/10 12:56 AM
In a Short Sale “Is it better that I move out?”
Sellers ask this all the time. The answer is the seller can stay in the house all the way up to the closing of the sale to the new buyer.
There are actually many questions behind this question:
Question: Will the bank be angry that I’m living in the house without paying?
Answer: The bank realizes that many borrowers can’t pay. That’s why they have the short sale program. You didn't create this housing slump or job market crisis.
Question: Does the bank want me to move out because … (4 comments)

foreclosures: Foreclosure and Loan Modification Notices to Borrowers = Scary and Incomprehensible Gibberish - 09/26/10 04:12 PM
As a short sale Realtor, I have many kitchen table conversations with borrowers in foreclosure. I often get handed a stack of letters and asked to decipher what the lender is saying. Although crystal clear to the professional, to the end consumer the verbiage is often confusing, cryptic, ambiguous and frankly incomprehensible.
Why Not Use Simple English?
Complex banking terminology is used instead of simple English. Borrowers get denial letters for requests they never made. The list goes on.
Many borrowers get so scared and perplexed by the process they just don’t know who to turn to and who to believe.

foreclosures: 45 Blog Posts in 30 Days – Important Lessons Learned - 09/23/10 02:12 AM
The AR "30 posts in 30 days" was a great challenge. I just completed 45 blogs posts in 30 days, at least one post per day. Most of the posts were insights about short sales.
The biggest challenge was to roll out quality information for the consumer and not "blogs about nothing" just to meet the quota.
This required a new type of time management – blog time management.
I learned early on to get one or two days ahead of myself. Always have one or two fully developed posts in draft mode – ready to go for the next morning … (9 comments)

Dave Halpern, Louisville Short Sale Expert (Keller Williams Realty Louisville East (502) 664-7827)

Dave Halpern

Louisville Short Sale Expert

Louisville, KY

More about me…

Keller Williams Realty Louisville East (502) 664-7827

Address: 1230 S. Hurstbourne Lane, Louisville, KY, 40222

Office: (502) 664-7827

Mobile: (502) 664-7827

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