Archive for the ‘Short Sale’ Category
Monday, April 2nd, 2012
After a series of months during which foreclosure volume was low, total filings have started to rise again, says RealtyTrac. In February of 2012, 21 states posted a year-over-year increase in monthly foreclosure filings, according to the national foreclosure-tracking firm. This is nearly twice as many states as compared to December 2011, marking the highest monthly reading since November 2010.
A “foreclosure filing” is defined to include any one of the following foreclosure-related events : (1) The serving of a default notice, (2) A scheduled home auction, or (3) A bank repossession. Nationally, the number of foreclosure filings fell 2 percent from January. However, it’s a trend that may reverse. Foreclosure volume is expected to rise over the next few months.
This is because the $25 billion mortgage servicer settlement provides a framework for servicers to execute necessary foreclosures, from notice-to-auction. Some analysts believe that foreclosure filings were artificially depressed in 2011 because of the absence of such guidance.
This is a preview of Foreclosure Volume Slated To Rise This Spring . Read the full post »
Tags: Buy home, Colorado Real Estate, Distressed Homes, foreclosure, Foreclosures, home buyer, RealtyTrac
Posted in Buying A Home, Foreclosure, Housing Analysis, Residential Real Estate, Short Sale | No Comments »
Tuesday, October 11th, 2011
In these difficult economic times, I am commonly asked whether it would be better to have a short sale or a foreclosure on ones credit report. The answer is complicated and has lot of moving parts. A short sale shows up on your credit report as a “derogatory report”; however, it will usually show up on your report as “short sale” or “settled for less then the full balance”. Of course, this will reflect negatively on your credit report. If you have not had any late pays prior to the short sale, your score will likely drop somewhere between 75 and 120 points. Each person’s credit score will vary depending on several factors, such as how much credit you have, how much of your credit facility you are currently using, and how long you have had certain types of credit. You will unlikely be able to obtain a home loan for a couple years. As a general rule, if one has a foreclosure on a credit report, then the waiting period is up to 7 years. The period may be reduced to 3 years if you fit into one of the extenuating circumstances. You should speak with a mortgage broker to see which of the extenuating circumstances may help you reduce the hold period to 3 years. In fact, my best is advice is to speak with more than one mortgage lender so that you may educate yourself about various lender requirements. Please know that different lenders may vary their interpretation of the underwriting requirements, and private lenders may adopt their own underwriting requirements.
This is a preview of Foreclosure versus Short Sale . Read the full post »
Tags: A+ Credit Consulting, Buy home, buyer, Colorado Real Estate, credit counseling, credit score, Down Payment, foreclosure, Getting a Mortgage don'ts, green real estate, home buyer, mortgage broker, mortgages, Sarah Kahley-Rufo, short sale
Posted in Buying A Home, Buying in a Recession, Credit, Foreclosure, Mortgages, Residential Real Estate, Short Sale | No Comments »
Monday, August 22nd, 2011
As part of our series on Short Sales, we posed some questions to the Linked In community and I thought the questions and answers were worth sharing.
As we have discussed, short sales can be a positive solution by helping one avoid foreclosure. Owners facing foreclosure have some hope and a way to relieve some of the stress. Many of our clients tell us they will be able to sleep better knowing that this situation is being handled. Moreover, buyers can oftentimes get a good deal when they buy short sales. Lastly, lenders can minimize their losses when they approve legitimate short sales. I call this the “win/win/win” formula.
On the other hand, especially when folks are operating on partial information or, even worse, wrong information, then short sales can be extremely frustrating. In addition, some lenders have poor policies, inadequately resourced departments, and/or other priorities (like keeping the doors open and the FDIC at bay) that can cause long processing times. Let’s illuminate the truth about short sales from the many interested parties commenting from Linked In: seller, buyer, lender, mortgage insurance carrier, investor, attorney, and broker.
This is a preview of Great Short Sale Debate: Reflections from Linked In . Read the full post »
Tags: approved short sale, credit score, mortgage investment, real estate, real estate pricing, sell home, short sale, short sale frustrations, short sale secrets, win/win/win
Posted in Buying A Home, Foreclosure, Investors, Mortgages, Residential Real Estate, Selling a Home, Short Sale | 2 Comments »
Thursday, July 7th, 2011
How do you get good advice when considering a short sale? First, make sure your trusted advisor has extensive experience in the short sale world. Research the process and the advisor, ask tons of questions, and be wary of anyone who thinks they know it all. Each bank has several short sale programs each with their own set of rules and requirements for participation. You should understand what the Making Homes Affordable short sale program is and whether you qualify. This program is known as HAFA or Home Affordable Foreclosure Alternative.
Moreover, understanding the players, their role and motivation within a short sale is critical. There are several people involved who must work in tandem for the sale to be successful:
This is a preview of Getting Good Advice in a Short Sale: Know the Players . Read the full post »
Tags: Alaris Properties, Colorado Real Estate, short sale
Posted in Short Sale | 1 Comment »
Tuesday, June 28th, 2011
Given the volume of short sales and default resolution cases that we help buyers and sellers complete, we hear a great deal of frustration expressed by all concerned. The sellers have legitimate concerns about deficiencies, buyers have concerns about waiting around for what seems like an eternity, Realtors® wonder if they will ever earn their commission, and some of the lenders feel overwhelmed with the number of requests to approve short sales. It seems to me that a lot of the frustration stems from false expectations, a great deal of misunderstanding, inconsistent information on the web, overgeneralization, desire for discernable logic to play some role on the part of the lenders, and the hope for a “great deal” in a short time frame. The good news is that there many great deals out there. The question is “how do I find the best deal?”
This is a preview of Short Sale Frustrations: How Do I find the best deal? . Read the full post »
Tags: Alaris Properties, Buy home, Colorado Real Estate, foreclosure, short sale
Posted in Buying A Home, Short Sale | No Comments »
Wednesday, June 22nd, 2011
There are a number of critical steps through the short sale process. Once the first lien holder has reviewed all the documents, determined they have a complete package, and determined that the seller is eligible to participate in a short sale program, they will order a broker price opinion (BPO) or an appraisal (this is dependent on the requirements of particular lender, investor and/or mortgage insurance company who is in charge of making decisions) on the property. It can take up to 30 days to complete these initial tasks.
The value obtained by the lender is one of the lynchpins in a short sale transaction. Those who are processing short sales will be well served to work with the brokers or appraisers preparing the valuation. The value must support the contract or offer price. If the value comes in high, then you can expect a counterproposal from the lender or a rejection of the offer.
This is a preview of The Great Short Sale Debate: Critical Steps in the Short Sale Process . Read the full post »
Tags: Alaris Properties, Buy home, Colorado Real Estate, short sale
Posted in Buying A Home, Short Sale | No Comments »
Wednesday, June 15th, 2011
If you’ve heard of a short sale, you’ve probably also heard they take forever and are very uncertain. As a result, the question is, should you submit an offer on a short sale at all? If so, why? The answer is an unequivocal yes! However, you need to work with someone who really knows what they’re doing. The biggest problem with short sales today is that there are a lot of people trying to process short sales, and most don’t have a clue about what they’re doing, or worse, they think they know what they’re doing and they’re incorrect. We have discovered a lot of folks are giving bad advice because they do misunderstand the issues. Brokers and sometimes even attorneys generalize from one short sale experience to the next and create a perception of catastrophe due to some bad experiences. I’m here to tell you that short sales can be a win/win/win: a win for the seller because they avoid a foreclosure, a win for the lender because they do not have to pay for a foreclosure and then resell the property at a substantial loss, and a win for the buyer because they get a good deal.
This is a preview of The Great Short Sale Debate: Is it worth it? . Read the full post »
Tags: Alaris Properties, Buy home, Colorado Real Estate, short sale
Posted in Buying A Home, Short Sale | 2 Comments »
Thursday, November 11th, 2010
No one has been affected by the mortgage and home value crisis more than our military families and veterans. The reason for this is that service members are oftentimes required to relocate and, even if their home value has declined, they must sell. Veterans face many obstacles reintegrating to civilian life. It is important for everyone to know about short sales and loan modifications. There is an incredible amount of misinformation out there, along with overgeneralization. I read blogs and websites all the time purporting to give good advice to borrowers. The problem is that laws vary from state to state and each lender has their own policies and procedures that must be followed. As a result, do not think that everything you read directly applies to your situation.
This is a preview of Veterans Homeowners Assistance Program . Read the full post »
Tags: buyer, foreclosure, real estate, seller, short sale, VA Loan program, veterans
Posted in Short Sale | No Comments »
Tuesday, October 26th, 2010
I love talking about staging. Not the process itself, that’s something one has to walk through to experience, but how staging can make someone’s life better. In these days of financial uncertainty and even crisis, our team feels a huge commitment to help sellers and Realtors® get to the closing table faster and with more money. I’ve staged all kinds of homes in almost every price point and even had some great successes with REO’s when the banks were willing to pay for staging. “Short sale” homes, however, are rarely staged. Sellers in short sale situations just don’t have the capital to fix up their home or pay for staging. It’s in a seller’s best interest to get a short sale approval instead of letting the home go back to the bank. I was recently asked what I would recommend to sellers or the Realtors® working with those sellers, that wouldn’t cost them anything or would cost very little. Here are some suggestions:
This is a preview of Easy Tips for Staging in a Short Sale . Read the full post »
Tags: real estate, seller, short sale, stage your home, staging
Posted in Selling a Home, Short Sale | 1 Comment »
Thursday, October 14th, 2010
One of my clients recently asked me whether she should discuss her short sale and plans for bankruptcy for with her children. She had been trying to keep the information from her children, who are 3, 5 and 9. Experience has taught me that children are way more perceptive than we give them credit and they usually know more than you may think. Poignantly, this client explained to me that her 9 year old had turned over a new leaf and seemed to be trying to be perfect.
If you are in a similar situation, I recommend you read an article concerning bankruptcy and children. http://www.chapter7-11.com/bankruptcy%20and%20children.html. As explained in the article, the worst things you can do are mislead and deceive your child. The experts almost all agree it is important to have a discussion with your children when financial problems arise. Of course, you may need to simplify the matters at hand as appropriate for the child’s age group.
This is a preview of Short Sales & Children . Read the full post »
Tags: real estate, short sale, talking with children
Posted in Short Sale | No Comments »
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