Foreclosures & Short Sales

Real Estate Agent with Re/Max Select RE

Foreclosures & Short-sales

Foreclosures & short sales are popping up like crazy in our region.  I was out showing homes to a client and 3 of the 5 we were viewing were short sales.  It's a trying time for a lot of homeowners right now.  Whether it's a mortgage that's resetting or too much equity taken out, it's a difficult scenario.   Home ownership is the American dream yet banks are taking homes back in record numbers.

The Pendulum has swung the other way.  Lending guidelines & appraisals are not just conservative but  amazingly conservative.  I recently had my own home appraised.  I was shocked when it came in grossly under value!  I could have disputed it easily with comps.  If I were selling, I would list it substantially higher, (not just 20 or 30K) and the market could bare it!  It just made me even more aware of the lenders crunching to make sure they're underwriting responsible loans.  That's a good thing though, within reason of course!

Comments (6)

Jerry LaRose - Orlando Fl Real Estate Expert
Orlando Realty Partners, Orlando Short Sale Specialists - Orlando, FL
Orlando Fl Real Estate Expert, Short Sale Expert


Great Post, Thanks for the information. That's a lot to absorb. I'll keep it all top of mind. Keep up the great blogs.

Mar 10, 2008 02:05 PM
Michael & Gayle Ramsey Fujita
Green Realty Group (808) 388-1485 - Honolulu, HI
(S) RAs SFRs ePro MRP
Hi Carmen-Our market is not bad in Honolulu.  It is true even over here though, that the appraisals are getting tighter and tighter.  No appraiser wants their appraisal to get kicked out by the lender so they are all being very conservative!
Mar 10, 2008 02:07 PM
Phil Mitsch

Great Post, Thanks for the information.


Mar 10, 2008 02:15 PM
Eric Reid
Renaissance Realty Group of Keller Williams Atlanta Partners - Lawrenceville, GA

I get a call 2 or 3 times a week from a homeowner that wants to know why they cant get the home sold at the price they paid 3 years ago. After looking at the numbers I see that they bought with a 104%+ loan.

100% for the house 4% closing cost and the plus, down payment assistance. In our market area in a good  market we see a 4 % growth so lets see 3 years times 4% would make 12% at the best now take away the 4% closing cost on the buy side another 6-7% selling cost  so we now have a 11% cost to sell leaving 1% profit and that is if the market had positive growth over the last 12 months,,, and we all know that did not happen.

Thus the short sale is born,,,

That is why I studied trained and became the best short sale agent in GA

Mar 10, 2008 02:26 PM
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

I think you're right!  Once we find a buyer, the next issue is the appraiser.  Keeps life interesting for us, doesn't it?

Mar 10, 2008 02:40 PM
Carmen Tomlinson
Re/Max Select RE - Maple Valley, WA
King & Pierce Counties WA

Eric,  good analysis.    How short do you see the 2nd accept? 50%?


Mar 10, 2008 02:46 PM