The Engels Real Estate » Short Sales

Market Update/Rates are still Good! (May 2010)

Joel — Tue, 11 May 2010 03:48:52 +0000

May 2010

Spring has Sprung!

Home prices are afforadable and we have choices!

More homes are coming to market each week, and Interest rates are still favorable!

(for conforming, <$417,000 loan)

5.125% – 30 year fixed

4.50% – 15 year fixed

4.00% – 5/1 ARM

(Higher Conforming, >$417,000 loan)

5.25% – 30 year fixed

4.75% – 15 year fixed

5.875% – 5/1 ARM

(Government, FHA/VA)

5.00% – 30 year fixed

It’s a Great time to Buy or Sell! The Market is moving again!
Call us to come out and view some amazing opportunities!

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Short Sales

Cindy — Wed, 16 Dec 2009 00:09:11 +0000

With the many changes in the market, we wanted to help to educate our clients and answer some frequently asked questions about short sales. If anyone you know has any questions about short sales, please contact us, as we have relationships with CPA’s and Attorneys who have the latest information. Since each transaction is unique, it is imperative that any person in this situation gather the best advice prior to moving ahead.

What is a short sale?

A short sale is when a lender accepts a discount on a mortgage to pay-off the loan to avoid a possible foreclosure auction or bankruptcy. The lender must approve the contract and terms of the discounted pay-off. Foe example: A homeowner facing foreclosure has an existing first mortgage of $700,000. A buyer writes an offer for $580,000, which is accepted by the lender as full payment for the loan.

What happens to the seller’s credit rating after a short sale?

What typically happens is that the loan will show as “paid” on their credit report, with a notation that says “settled for less than the original owed”, or something similar. It is more favorable for a homeowner to short sell their home than to have a foreclosure on their credit report.

Can an owner profit from a short sale?

The seller cannot profit, monetarily, from a pre-foreclosure short sale.

How do bankruptcies affect the possibility of a short sale?

Most mortgagors will not consider a short sale if the homeowner is in bankruptcy. This is because negotiating a short sale pay-off is considered collection activity, and collection activities are prohibited in bankruptcies.

How late in the foreclosure process can you start a short sale?

Try to allow a window of at least 90 days to effectuate a mortgage approved pre-foreclosure short sale.

For all other questions, leave us a note, or e-mail me at cindy.engel@comcast.net

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The Middle Man

Joel — Tue, 20 Jan 2009 04:27:29 +0000

There are many new companies that offer their service as “negotiators”. These companies for a fee (usually 1-2% commission) will negotiate directly with the lenders involved. Their claim is that they have experience and will stay in constant contact with the lender. Usually, they are employed by the listing agent. It is important to know if one of these companies are involved in the process. Many times it can be more complicated and you can end up with “too many cooks in the kitchen”!

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Over-pricing vs. Under-pricing

Joel — Tue, 20 Jan 2009 04:14:12 +0000

When listing short sale property, a Realtor may start with an asking price that looks to be too high compared to the current market. This may be a part of a required process on the part of the lender involved. Many times the lender will require the home to be marketed for several weeks. If there is no interest, then lower the asking price. Continue to market the home at the new asking price for several weeks and, again if no offers, lower the asking price. This is a process continued until you have an offer to be considered. Now the lender has a history of pricing and marketing the home for maximum return. Sometimes when listing a short sale property, a Realtor may have an asking price that seems very low relative to the current market. This may be the over-anxious agent trying to get several offers going right away on the home. Until there is an offer received on the home, the lender will not begin to process a short sale.

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Short Sale Approved!

Cindy — Mon, 19 Jan 2009 19:56:20 +0000

Really? After submitting an offer to be considered by the lender for a “short sale”, you may be informed that the offer price and conditions have been approved. Many times the “waiting game” takes so long that the buyer making the offer decides to move on and find another property. At that point, the listing agent knows the acceptable price and terms from the lender. Reading in the “confidential remarks” agents are informed that the current asking price has been approved. Get ready, because as you know, things change! Lender situations change…, you have prices of homes in a downward trend and you do not know the current status of the seller’s mortgage payments. You could be thinking you have an offer that should be accepted but not having all the facts, the home could go to “Trustee Sale” and you have nothing!!!

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