What is a Real Estate Short Sale?

What is a ‘Real Estate Short Sale’
A real estate short sale is any sale of real estate that generates proceeds that are less than the amount owed on the property. A real estate short sale occurs when the lender and borrower decide that selling the property and absorbing a moderate loss is preferable to having the borrower default on the loan. It is therefore an alternative to foreclosure.
BREAKING DOWN ‘Real Estate Short Sale’
Real estate short sales can be done only by mutual consent of borrower and lender. Both parties can benefit greatly from this type of transaction. Borrowers can avoid having a foreclosure appear on their credit report, while lenders can avoid substantial fees associated with foreclosure.
What is ‘Foreclosure – FCL’
A situation in which a homeowner is unable to make full principal and interest payments on his/her mortgage , which allows the lender to seize the property, evict the homeowner and sell the home, as stipulated in the mortgage contract. One month after the homeowner misses a mortgage payment, he/she is in default and will be notified by the lender. Three to six months after the homeowner misses a mortgage payment , assuming the mortgage is still delinquent and the homeowner has not made up the missed payments within a specified grace period, the lender will begin to foreclose. The farther behind the borrower falls, the more difficult it becomes to catch up, since lenders add fees for payments that are 10 to 15 days late.

 

Posted in Knowledge Base by houseres. No Comments

Selling Your Home

What to do before you sell
Become a real seller

Selling your home can be an emotional process, so prepare yourself before listing your property. Begin viewing your house not as a home but as an investment and a business transaction. Try not to take suggestions from your realtor personally and it will make the process much easier.

Hire the right agent

Hiring a real estate agent is one of the more important decisions you will make when selling your home, so take your time. Altman recommends interviewing at least three agents, asking about past sales, what type of advertising budget they would have for your property, if they are available 24/7 and if they work in your neighborhood. And don’t be shy about asking friends, family and neighbors for recommendations as well.

Price it right

No matter how well your home is advertised, it it’s not priced right, it won’t sell. Altman says pricing depends on the type of market and strategy your agent uses, but he recommends listing your home just above the market to leave room for negotiation, but not too high that you miss your buyer pool.

Another popular strategy is to list your home just under market value, creating a sense of urgency. Discuss pricing with your agent to decide the best approach for your property.

Depersonalize

You are selling your home, not yourself, so put away photos of your family or children’s artwork so that they don’t become distracting to any potential buyers. They need to visualize themselves living in the home, not you.

First impressions are the only impressions

The first impressions will either make or break a buyer’s opinion of your home, so make sure you put your best foot forward. Take the time to make the home bright, clean and smelling great.

Always be ready to show

Selling a house is a full-time job as a potential buyer might be wanting to walk through at any time, so do your best to keep your home in showing condition.

Don’t over upgrade

That custom-built pizza oven or glass-bottom tub may sound fun, but extreme upgrades are unlikely to return in value. Do consider putting money in kitchens, flooring and bathrooms, but make sure the finishes are comparable to other homes in the area.

Kitchens sell

The kitchen is the heart of any home, so it’s worth it to spend some money on upgrades if necessary. Altman recommends adding stainless steel appliances and granite countertops, adding that buyers typically get 1.5-times the money they spent on these types of kitchen upgrades.

Half-empty closets

Showcase how much space is in your closets and cabinets by clearing out old clothes, toys, pots and pans.

Light it up

Turn those lights on, bust open the blinds and drapes and, if you’re up for it, paint the walls white to make your home as light and bright as possible.

What to do before you buy

Check the school district

For personal and financial reasons, it’s smart to check out the school district assigned to your home, as a good school district will add $15,000 to $50,000 to your home’s value.

Visit the home at different times of the day

As a buyer, you need to know all the good and bad that your next home has to offer. Try and swing by the property at different times of the day to see if it gets too much or too little light, if the traffic sounds too loud during rush hour, etc.

Posted in Knowledge Base by houseres. No Comments

How to Buy Foreclosured RE

Buying a foreclosed home is a little different from buying a typical resale.

In many cases:

Only 1 real estate agent is involved.
The seller wants a preapproval letter from a lender before accepting an offer.
There is little, if any, room for negotiation.
The home comes as-is, and it’s up to the buyer to pay for repairs.
On the upside, most bank-owned homes are vacant, which can speed up the process of moving in.

“Buying a foreclosure is definitely a bit of a grind. It’s not easy,” says Robert Jenson, owner and founder of the Jenson Group at RE/MAX Central in Las Vegas. “You’re getting fantastic pricing, but sometimes it takes going through a lot of houses and writing a lot of offers to get the home you want.”

5 steps to buying foreclosed homes
Find an agent specializing in foreclosures.
Get preapproved for a mortgage.
Know how long it takes to sell a home in your price bracket.
Study the sale prices of comparable homes in your area.
Remember the sale is for the home as is.

 

.

Posted in Services by houseres. No Comments

Do You Need a Short Sale?

Fearing foreclosure? Consider a short sale
By JC San.

If you are one of the many homeowners who have fallen behind on your mortgage payments and you don’t see any way to avoid foreclosure, a short sale may offer you the least painful way to resolve the situation.

A short sale is when a lender agrees to accept a mortgage payoff amount less than what is owed in order to facilitate a sale of the home by a financially distressed owner. The lender forgives the remaining balance of the loan.

What’s in it for a seller?
Obviously, the ideal scenario would be that you magically catch up on your mortgage payments and keep your home. But for an increasing number of Americans, that is not a realistic possibility, so it’s to your advantage to take an active role. This is what a short sale is all about — resolving the problem, as opposed to simply hiding from your lender and hoping the issue will go away or, worse, walking away from the property.
As a seller, there are cons to a short sale. Obviously, you will lose your home — but that will happen anyway when the bank forecloses. You will also walk away without a cent in profit from the sale. And, your credit score will take a major hit.

However, because you are making a good faith effort, the lender may look more favorably on you, and perhaps be willing to help minimize the damage to your credit score. You are also spared the stress and embarrassment of a long drawn-out foreclosure process. That’s may allow you to feel more in control and that you have a more direct role in paying off part of the debt. Remember, too, that every short sale is a negotiated agreement between the owner and the lender. In a foreclosure, the lender can always pursue the seller for a deficiency judgment to recoup the difference between what it was owed and what it actually collected. In a short sale you may be able to get the lender to accept the sale as “payment in full without pursuit of any deficiency judgment.” The lender might agree to that release in return for the seller showing the home, maintaining it as well as possible and not trashing it on the way out.

Two short-sale killers
Before you even start considering getting involved in a short sale, there are two situations in which an attempt at a short sale is almost certain to fail.

An attempt at a short sale will fail if:
No default on loan — Lenders almost never will accept short sale offers or requests for short sales until the borrower is far behind in payments and a notice of default has been issued.
Bankruptcy — If the seller has filed for bankruptcy, forget it. Few, if any, lenders will consider a short sale when the seller has filed for bankruptcy, because negotiating a short sale is considered a collection activity and collection activities are prohibited in bankruptcies.

The lender’s motivation
Why would your lender let you walk away from the home and forgive the shortfall on your loan? To save time and money. Foreclosures are expensive and time-consuming for lenders. Once the lender realizes that a foreclosure is inevitable, a short sale may seem like the lesser of two evils. Plus, short sales help the lender look good on paper — the property was never listed as an actual foreclosure, which helps the lender’s numbers.

 

Posted in Services by houseres. No Comments

Purchasing A Short-Sale Property

Purchasing A Short-Sale Property By JC San.

When shopping for a home, you may notice that certain listings are labeled as short sales, short pays or pre-foreclosures. All of these terms mean the same thing: the seller is upside-down on his or her mortgage and is attempting to negotiate a deal with the lender in the hope of avoiding foreclosure.

In this type of sale, the bank (lender) agrees to accept less than the amount owed on the mortgage. The transaction benefits the bank by allowing it to avoid repossessing the home in foreclosure, which is expensive and time-consuming, and it benefits the seller by allowing him or her to avoid the negative credit ramifications of foreclosure (and the bankruptcy that sometimes accompanies it). (For more on foreclosures, see Foreclosure Investing Not A Get-Rich-Quick Venture and Foreclosure Opens Windows For Investors.)

If you’re interested in buying a property that’s listed as a short sale, here’s what you need to know.

How It Works
Unlike in a foreclosure, the bank does not own the property in a short sale. However, because the bank must approve the sale (because it is the lender, not the seller, who will be taking a loss on the property) it will seem like the buyer is purchasing the property from the bank. Short sale transactions, however, can be much more time-consuming and patience-testing than foreclosure transactions. (Keep reading about this in Short Sell Your Home To Avoid Foreclosure.)

In some ways, buying a short-sale property is just like a traditional purchase. However, there are a couple of ways in which the purchase agreement you and your agent draw up are different. The contract will specify that the terms are subject to the mortgage lender’s approval. In a normal transaction, the only party who would need to approve the sale is the seller.

The contract should also state that the property is being purchased “as-is”. While it is acceptable to include language in the contract that allows you to back out of the deal if an inspection reveals considerable problems, in general, you should not expect the bank to lower the price to account for repairs if any problems are revealed. The bank is also unlikely to make any repairs, and the seller, being strapped for cash, is probably even less likely to help out. Given the situation, you’ll likely also need to have enough money for closing costs. (Keep reading about the closing process in Understanding The Escrow Process.)

Posted in Blog & News by houseres. No Comments

Foreclosure VS Short Sale

Fearing foreclosure? Consider a short sale
By JC San.

If you are one of the many homeowners who have fallen behind on your mortgage payments and you don’t see any way to avoid foreclosure, a short sale may offer you the least painful way to resolve the situation.

A short sale is when a lender agrees to accept a mortgage payoff amount less than what is owed in order to facilitate a sale of the home by a financially distressed owner. The lender forgives the remaining balance of the loan.

What’s in it for a seller?
Obviously, the ideal scenario would be that you magically catch up on your mortgage payments and keep your home. But for an increasing number of Americans, that is not a realistic possibility, so it’s to your advantage to take an active role. This is what a short sale is all about — resolving the problem, as opposed to simply hiding from your lender and hoping the issue will go away or, worse, walking away from the property.
As a seller, there are cons to a short sale. Obviously, you will lose your home — but that will happen anyway when the bank forecloses. You will also walk away without a cent in profit from the sale. And, your credit score will take a major hit.

However, because you are making a good faith effort, the lender may look more favorably on you, and perhaps be willing to help minimize the damage to your credit score. You are also spared the stress and embarrassment of a long drawn-out foreclosure process. That’s may allow you to feel more in control and that you have a more direct role in paying off part of the debt. Remember, too, that every short sale is a negotiated agreement between the owner and the lender. In a foreclosure, the lender can always pursue the seller for a deficiency judgment to recoup the difference between what it was owed and what it actually collected. In a short sale you may be able to get the lender to accept the sale as “payment in full without pursuit of any deficiency judgment.” The lender might agree to that release in return for the seller showing the home, maintaining it as well as possible and not trashing it on the way out.

Two short-sale killers
Before you even start considering getting involved in a short sale, there are two situations in which an attempt at a short sale is almost certain to fail.

An attempt at a short sale will fail if:
No default on loan — Lenders almost never will accept short sale offers or requests for short sales until the borrower is far behind in payments and a notice of default has been issued.
Bankruptcy — If the seller has filed for bankruptcy, forget it. Few, if any, lenders will consider a short sale when the seller has filed for bankruptcy, because negotiating a short sale is considered a collection activity and collection activities are prohibited in bankruptcies.

The lender’s motivation
Why would your lender let you walk away from the home and forgive the shortfall on your loan? To save time and money. Foreclosures are expensive and time-consuming for lenders. Once the lender realizes that a foreclosure is inevitable, a short sale may seem like the lesser of two evils. Plus, short sales help the lender look good on paper — the property was never listed as an actual foreclosure, which helps the lender’s numbers.

Posted in Blog & News by houseres. No Comments

Video-Intro-Foreclosure


” title=”INtro to 

Posted in Uncategorized by houseres. No Comments

Free Information

Find out how we can help you save your home from foreclosure and lower your payments !


Can you answer yes to any of these questions?

  • Have you fallen behind on your mortgage payments?
  • Is your home now worth less than you owe on the mortgage?
  • Are your payments and interest sky high and unaffordable?
  • Are you facing foreclosure?

If you answered yes to any of these questions, we can help! You don’t have to lose your home, but you can only save it if you act quickly!
President Obama has been urging mortgage lenders to work with homeowners to save their homes. As part of his foreclosure bailout plan, he has asked lenders to modify mortgage loans to help owners avoid foreclosure and bring their payments current.
This plan could help:

  • Reduce your mortgage payments substantially.
  • Reduce your interest rate significantly.
  • Give you more time to pay off your loan.
  • Stop foreclosure proceedings that have already begun.
  • Wipe out late fees that make it hard to get caught up.
  • Reduce the principal balance on your mortgage.

Just fill out the form below, and have immediate access to  valuable information.

Full Name:
Email:
referred by:
What is your need?:

Posted in Uncategorized by houseres. No Comments