Short Sales Tips for Sellers
If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.
1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:
• Your property is worth less than the total mortgage you owe on it.
• You have a financial hardship, such as a job loss or major medical bills.
• You have contacted your lender and it is willing to entertain a short sale.
2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest. A qualified real estate professional can:
• Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
• Help you set an appropriate listing price for your home, market the home, and get it sold.
• Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
• Ease the process of working with your lender or lenders.
• Negotiate the contract with the buyers.
• Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.
3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:
• A hardship letter detailing your financial situation and why you need the short sale
• A copy of the purchase contract and listing agreement
• Proof of your income and assets
• Copies of your federal income tax returns for the past two years
4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:
• If you have only one mortgage, the review can take about two months.
• With a first and second mortgage with the same lender, the review can take about three months.
• With two or more mortgages with different lenders, it can take four months or longer.
When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)
5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:
• You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.
• Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
• Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.
Tuesday, August 10, 2010
Monday, August 9, 2010
Fewer Home Owners Are Under Water
Fewer Home Owners Are Under Water
Some 21.5 percent of borrowers owed more than their homes were worth in the second quarter of the year. That’s compared with 23.3 percent in the first quarter.
"It is the paramount challenge facing housing markets," said Stan Humphries, Zillow.com's chief economist.
Humphries said that much of the improvement came from homes falling into foreclosure, wiping away negative equity.
Rising home values also improved the situation in 45 of the metropolitan statistical areas.
Source: Reuters News, Julie Haviv (08/09/2010)
Some 21.5 percent of borrowers owed more than their homes were worth in the second quarter of the year. That’s compared with 23.3 percent in the first quarter.
"It is the paramount challenge facing housing markets," said Stan Humphries, Zillow.com's chief economist.
Humphries said that much of the improvement came from homes falling into foreclosure, wiping away negative equity.
Rising home values also improved the situation in 45 of the metropolitan statistical areas.
Source: Reuters News, Julie Haviv (08/09/2010)
Monday, July 26, 2010
Buying a House? Step 7
Buying Step 7: Do a Title Search and Finalize Your Financing
Do a Title Search
After making an offer, you need to do a title search on the property you wish to buy. Your agent or a lawyer can do this for you. Typically, all homes listed on an MLS are required to have this done by the listing agent and your agent can obtain a copy. If not, title records are kept at local courthouses and detail real estate ownership (sometimes over hundreds of years) in the local community.
These records are important because they provide proof that the owner has valid, marketable and insurable title to the property they are selling. Equally important, such records enable buyers to provide proof of ownership when they in turn sell the property.
Title insurance is necessary because even though the history of property ownership has been checked, it's possible that the records contain errors, unrecorded claims or flaws in the review itself. Title insurance is paid at closing.
Finalize Your Financing
Often, the cost of real estate financing is greater than the original purchase price of a home (after including interest and closing costs).
Now that you’re offer has been accepted and there is valid title to the property you are purchasing, it is time to finalize your preapproved financing. Your mortgage broker or REALTOR® or loan officer can help you select the mortgage option that is best for you. Because there are so many mortgage options and lenders, it’s a good idea to shop around for a mortgage just as you shopped around for a home.
Do a Title Search
After making an offer, you need to do a title search on the property you wish to buy. Your agent or a lawyer can do this for you. Typically, all homes listed on an MLS are required to have this done by the listing agent and your agent can obtain a copy. If not, title records are kept at local courthouses and detail real estate ownership (sometimes over hundreds of years) in the local community.
These records are important because they provide proof that the owner has valid, marketable and insurable title to the property they are selling. Equally important, such records enable buyers to provide proof of ownership when they in turn sell the property.
Title insurance is necessary because even though the history of property ownership has been checked, it's possible that the records contain errors, unrecorded claims or flaws in the review itself. Title insurance is paid at closing.
Finalize Your Financing
Often, the cost of real estate financing is greater than the original purchase price of a home (after including interest and closing costs).
Now that you’re offer has been accepted and there is valid title to the property you are purchasing, it is time to finalize your preapproved financing. Your mortgage broker or REALTOR® or loan officer can help you select the mortgage option that is best for you. Because there are so many mortgage options and lenders, it’s a good idea to shop around for a mortgage just as you shopped around for a home.
Buying a house? Step 7
Buying Step 7: Do a Title Search and Finalize Your Financing
Do a Title Search
After making an offer, you need to do a title search on the property you wish to buy. Your agent or a lawyer can do this for you. Typically, all homes listed on an MLS are required to have this done by the listing agent and your agent can obtain a copy. If not, title records are kept at local courthouses and detail real estate ownership (sometimes over hundreds of years) in the local community.
These records are important because they provide proof that the owner has valid, marketable and insurable title to the property they are selling. Equally important, such records enable buyers to provide proof of ownership when they in turn sell the property.
Title insurance is necessary because even though the history of property ownership has been checked, it's possible that the records contain errors, unrecorded claims or flaws in the review itself. Title insurance is paid at closing.
Finalize Your Financing
Often, the cost of real estate financing is greater than the original purchase price of a home (after including interest and closing costs).
Now that you’re offer has been accepted and there is valid title to the property you are purchasing, it is time to finalize your preapproved financing. Your mortgage broker or REALTOR® or loan officer can help you select the mortgage option that is best for you. Because there are so many mortgage options and lenders, it’s a good idea to shop around for a mortgage just as you shopped around for a home.
Do a Title Search
After making an offer, you need to do a title search on the property you wish to buy. Your agent or a lawyer can do this for you. Typically, all homes listed on an MLS are required to have this done by the listing agent and your agent can obtain a copy. If not, title records are kept at local courthouses and detail real estate ownership (sometimes over hundreds of years) in the local community.
These records are important because they provide proof that the owner has valid, marketable and insurable title to the property they are selling. Equally important, such records enable buyers to provide proof of ownership when they in turn sell the property.
Title insurance is necessary because even though the history of property ownership has been checked, it's possible that the records contain errors, unrecorded claims or flaws in the review itself. Title insurance is paid at closing.
Finalize Your Financing
Often, the cost of real estate financing is greater than the original purchase price of a home (after including interest and closing costs).
Now that you’re offer has been accepted and there is valid title to the property you are purchasing, it is time to finalize your preapproved financing. Your mortgage broker or REALTOR® or loan officer can help you select the mortgage option that is best for you. Because there are so many mortgage options and lenders, it’s a good idea to shop around for a mortgage just as you shopped around for a home.
Thursday, January 28, 2010
Se reducen los espacios de oficinas
Hoy en dia cuando cada centavo cuenta y la tecnología móbil( internet) es la via principal de generar negocios en el mundo de los bienes y raíces, muchos brokers han decidido reogarnizar sus espacios y reducirse.
Independientemente que el volumen de negocios para algunos brokers se ha reducido dramáticamente por las múltiples razones que todos ya conocemos, es el cambio demográfico y cambio de hábitos en los vendedores asociados,especialmente las generaciones "X " y "Y" que estan reeplazando a los baby boomers, las que han creado una revisión de las dinámicas que afectan una oficina.
Hoy en día la libertad de poder conectarse a la red a través desde un BlackBerry o in iPhone, poder reunirse con un cliente en Starbucks o Panera Bread y utilizar un laptop o simplemente poder trabajar desde su hogar ha hecho que una inmensa mayoría de vendedores asociados utilicen cada vez menos las oficinas, lo que a su vez a generado un sin número de cubículos vacios,espacios perdidos y por ende la pérdida de $$$ en renta de enormes espacios que no se utilzan y que pudieran ser aprovechados en mejorar la tecnología de la oficina, expander los mercados,hacer publicidad y sobre todo entrenar al nuevo personal.
También debemos considerar que toda esa nueva tecnología ha creado cambios radicales en el hábito de los consumidores,años atrás, lo compradores tenían que ir a las oficinas de bienes y raíces y sentarse con un vendedor asociado y reviasr un enorme libro para ver que había disponible, hoy en día lo hacen en la internet y son ellos los que nos dicen que casa quieren ver y más aún en muchas ocasiones esos consumidores saben tanto o más que el vendedor asociado de lo que se ha vendido en una comunidad en particular.Con esto les quieros decir que los famosos "walk in" ya casi ni exiten,hoy en día llaman al vendedor asociado para hacer la o las citas lo que facilita hasta cierto punto el trabajo.
Cinco años atrás cuando el mercado estaba caliente aperecían nuevas copañias de bienes y raíces y las que ya existían reducir espacios era lo último que se pensaba,hoy en día reduccion de espacios y costos es el tema principal.Años atrás el average de espacio por vendedor asociado era de aproximadamente unos 150 pies cuadrados,hoy en día es de 100 pies cuadrados.
Creo que eso es bueno, antes de la caída del mercado lo típico era una oficina más grande de lo necesario.Hoy en día si Ud. que tiene una de esas enormes oficinas y no ha pensando como reducir espacios,es mejor que piense como lo va a hacer.Tal vez en estos momentos está bien,pero mañana tal vez no lo esté.
Independientemente que el volumen de negocios para algunos brokers se ha reducido dramáticamente por las múltiples razones que todos ya conocemos, es el cambio demográfico y cambio de hábitos en los vendedores asociados,especialmente las generaciones "X " y "Y" que estan reeplazando a los baby boomers, las que han creado una revisión de las dinámicas que afectan una oficina.
Hoy en día la libertad de poder conectarse a la red a través desde un BlackBerry o in iPhone, poder reunirse con un cliente en Starbucks o Panera Bread y utilizar un laptop o simplemente poder trabajar desde su hogar ha hecho que una inmensa mayoría de vendedores asociados utilicen cada vez menos las oficinas, lo que a su vez a generado un sin número de cubículos vacios,espacios perdidos y por ende la pérdida de $$$ en renta de enormes espacios que no se utilzan y que pudieran ser aprovechados en mejorar la tecnología de la oficina, expander los mercados,hacer publicidad y sobre todo entrenar al nuevo personal.
También debemos considerar que toda esa nueva tecnología ha creado cambios radicales en el hábito de los consumidores,años atrás, lo compradores tenían que ir a las oficinas de bienes y raíces y sentarse con un vendedor asociado y reviasr un enorme libro para ver que había disponible, hoy en día lo hacen en la internet y son ellos los que nos dicen que casa quieren ver y más aún en muchas ocasiones esos consumidores saben tanto o más que el vendedor asociado de lo que se ha vendido en una comunidad en particular.Con esto les quieros decir que los famosos "walk in" ya casi ni exiten,hoy en día llaman al vendedor asociado para hacer la o las citas lo que facilita hasta cierto punto el trabajo.
Cinco años atrás cuando el mercado estaba caliente aperecían nuevas copañias de bienes y raíces y las que ya existían reducir espacios era lo último que se pensaba,hoy en día reduccion de espacios y costos es el tema principal.Años atrás el average de espacio por vendedor asociado era de aproximadamente unos 150 pies cuadrados,hoy en día es de 100 pies cuadrados.
Creo que eso es bueno, antes de la caída del mercado lo típico era una oficina más grande de lo necesario.Hoy en día si Ud. que tiene una de esas enormes oficinas y no ha pensando como reducir espacios,es mejor que piense como lo va a hacer.Tal vez en estos momentos está bien,pero mañana tal vez no lo esté.
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