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Archive for the 'Short Sales' Category

A Second Chance for Strapped Sacramento Homeowners

The entire Nation is struggling in this economy. If you watch the news as of last week we are officially in a recession, Although all of us on “Main Street” already knew that. Here in Sacramento California I am looking at the possibilities for a young couple who are upside down in their home have missed a couple of payments and she was recently laid off. The story seems all too common these days. It is unfortunate that the lending practices of this last real estate cycle bred this virus that no one seems to have the antidote for.

The Governor as well as may lenders have put a 90 day freeze on new Foreclosures. It is important that you are proactive since this may or may not help you.

For those of you in a tough spot let me offer some advice:

• Call your lender and find out if you have options for a restructure.
• Seek the advice of an Attorney and/or an Accountant.
• Do not ignore the problem as time goes on your options will become fewer.

For this couple it looks like a Short Sale will be the answer. Even if they qualify for a loan restructure their finances may not improve soon and being married to a  forty or fifty year mortgage has both of them scared in light of their current situation. As an expert in short sale listings I feel confident that they have a hardship the banks loss mitigator will accept.

For many Sacramento homeowners that are in Notice of Default and for those that have missed payments. I feel that you have been dealt a second chance. The additional 90 days that the state and some of the banks have given could a window of opportunity to list you home as a short sale and minimize the impact of this difficult situation. Choosing a Realtor with extensive knowledge of the short sale process and the proper marketing of a short sale could mean a second chance at minimizing your losses.

If you have questions regarding this process I would be happy to share my knowledge with you. Give me a call at (916)332-1292.

Short Sales the Looong…… and the Short of it

I have had many clients lately that are curious why there are so many short sales with 90, 150, or even 250 days on market. The quick answer is simple there is nothing short about a short sale. However the real story is not so simple.

 

Short Sales explained. A homeowner faces financial uncertainty, hardship, or the dreaded adjustable rate mortgage. They take a proactive approach and contact a real estate professional for help. At this point they go over all of the likely options and determine that a short sale is best for this client. Now the process begins where the realtor works on behalf of the client to negotiate with the bank to approve the short sale. But the bank has specific requirements namely they want a valid offer first. Really the current homeowner is now a third party whose only interest is getting out of a bad situation with out foreclosure. The bank has an amount that they are willing or not so willing to write off. A bank representative handles the file along with hundreds of others. Now offers for the house start coming in, one of them might even be yours!  They are then submitted to the bank representative .The one with hundreds of file on their desk, and several hundred offer like yours. Are you getting the picture? The bank representative will then make a decision at their convince on the offer they will choose to accept or not.

 

I do not want to discourage anyone. In today’s unpredictable economic cycle short sales present an option for people who are having a difficult time. The also present and opportunity for the patient buyer. Unlike most bank owned or REO (Real Estate Owned) homes they are move in ready and likely to meet FHA financing guidelines.

 

With the right attitude and an agent that is knowledgeable about the short sale process you can find help in preventing foreclosure.