I am not alone in believing the way to mess up something is to put the government in charge. Invariably it will be less effective, less efficient, and more expensive. However, there is one arena in which the government beats out the private sector and that is in short sale management.
First, I will insert my disclaimer here: this does NOT mean I have never had issues with the administration of the program. This simply means, if all things are implemented correctly, and all the guidelines put into place are followed, you will meet with success and that is saying a lot!
Before anyone in the general public knew what was meant by the term "short sale" the Office of HUD had a Pre-Foreclosure Sale program in place that is a model for the industry. The program has been around nearly 20 years and has not varied much from the founding standards.
The biggest positive was publishing of the guidelines as hard and fast rules not open to interpretation of a negotiator having a bad day. Another plus is the establishment of the property's value prior to putting the home on the market, and employing a full appraisal. In most cases the short sale starts off on a much better foot in HUD'S PFS program: To begin, the value is based on something more than the opinion of an agent who hasn't sold a home in 10 years. This is a much more accurate number in the majority of cases.
Next, there is no guesswork and the numbers don't change with the moon's phases: in the first 30 days they will accept 88% of the home's market value as their net, after paying the seller's closing costs, up to date taxes, and commissions. Up to Day 60 they will accept 86%, from Day 61 and beyond they will accept 84%. Knowing these numbers ahead of time takes the guesswork out of the equation and also keeps agent from wasting time by submitting offers that do not meet the criteria. (Note: you may be able to get them to accept less than 84% but that is for another day.)
If you have ever listed a short sale you can understand the frustration of getting a great offer only to have it countered at $20,000 more than the offer they had previously accepted. That would never happen on an FHA short sale since the price does not change except to be decreased as discussed
above.
However surprising it remains true: short sale administration is actually something the government wins on hands down.
If you are a Homeowner with any questions about selling your property, please do not hesitate to call.
Before anyone in the general public knew what was meant by the term "short sale" the Office of HUD had a Pre-Foreclosure Sale program in place that is a model for the industry. The program has been around nearly 20 years and has not varied much from the founding standards.
Next, there is no guesswork and the numbers don't change with the moon's phases: in the first 30 days they will accept 88% of the home's market value as their net, after paying the seller's closing costs, up to date taxes, and commissions. Up to Day 60 they will accept 86%, from Day 61 and beyond they will accept 84%. Knowing these numbers ahead of time takes the guesswork out of the equation and also keeps agent from wasting time by submitting offers that do not meet the criteria. (Note: you may be able to get them to accept less than 84% but that is for another day.)
If you have ever listed a short sale you can understand the frustration of getting a great offer only to have it countered at $20,000 more than the offer they had previously accepted. That would never happen on an FHA short sale since the price does not change except to be decreased as discussedabove.
However surprising it remains true: short sale administration is actually something the government wins on hands down.
If you are a Homeowner with any questions about selling your property, please do not hesitate to call.
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