A recent report indicated that from ninety-eighty of the top cities in the United States, it is now cheaper to own a house than to rent. The report attributes this phenomenon due to low interest rates and real estate prices that are at or pretty close to rock bottom levels.

The short sale inventory is continuing to apply downward pressure through pricing. It appears that anyone who knows that they will be remaining in their residence for 5 to 7 years should expedite their efforts to purchase a home.

If you should have any questions, or would like more information please comment this post, email, or call (718) 377-7798 to speak with Michael Reinhardt.

DISCLAIMER:

The use of the Internet or this forum for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this forum. This information is for general information only and should not be relied upon

To my Short Sale enthusiasts!

I know all Real Estate professionals have tossed and turned over whether or not to get involved in Short Sales. These transactions are not easy, there is no set pattern that guarantees success, nor do they offer a measurable return on your investment of time.

If all of this is true, then why do I continue writing about these types of transactions? I’ll tell you why… if it were easy, everyone would be working on them, which would pose it’s own set of problems from incompetence to saturation of agents.

The sentiment is changing once again, and statistics show some positive reasons why homeowners should want to get their homes sold through Short Sales. A recent series of publications reveal the following benefits selling with a Short Sale as opposed to Foreclosure.

SELLER’S BENEFITS

• FICO SCORE:

A Foreclosure can lower a credit score by as much as 400 points.

A Short Sale will lower a credit score by around 80 to 100 points.

• ABILITY TO PURCHASE:

A Foreclosure can delay the homeowners ability to purchase by as much as SEVEN (7) years.

A Short Sale can enable some sellers to purchase a home again in TWO to THREE (2-3) years.

• CREDIT FROM THE LENDER FOR MOVING EXPENSES:

Some Lenders are offering credits for moving expenses to sellers who cooperate.

LENDER’S BENEFITS

• The Lender benefits by a quicker turnaround than if they have to Foreclose, saving the Lender the carrying costs, repair costs, and a host of other problems for a Lender who is not in the business of owning homes.

• Lenders are now educating their workers to be less problematic when dealing with Short Sales based upon the financial benefits, and the pressure from the Government.

SALESPERSON BENEFITS

• The playing field provides a great opportunity for all agents to educate themselves and capture a part of the Real Estate sales that are growing every year.

• As a famous Entrepreneur said in the mid 1800′s in California, “There’s GOLD in them thar hills”. This could be the GOLD RUSH you are waiting for! This may not be easy an task, but usually anything worthwhile requires effort.

If you have any questions, concerns or would like more information comment this post, email, or call  (718) 377-7798 to speak with Michael Reinhardt.

DISCLAIMER:

The use of the Internet or this forum for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this forum. This information is for general information only and should not be relied upon

The length of time it takes a lender to provide answers is a common problem stated by those who try to work with short sales. The lenders simply do not handle all of the requests as quickly as needed.

If a buyer has obtained a mortgage commitment for 30 days, it will probably expire before the short sale bank renders a decision. Now the buyer is faced with not only trying to get an extension on the mortgage, but also wondering how much longer they will need.

When the bank renders a payoff figure, it is usually good for a few weeks. If the buyer does not have a mortgage, the payoff figure may expire, causing the process to start all over again.

The larger issue however, is while all parties are working hard to complete this process in an attempt to proceed to the closing, the foreclosure clock is still ticking. It is only a matter of time until the seller is faced with the issue of a foreclosure proceeding.

To assist both my clients and real estate agents who are working with short sale transactions, I have created a guide providing beneficial information about short sales, in depth explanation of documentation required, and sample documents. If you are interested in receiving a copy of this guide, please visit my website and request a copy to be sent to you today!

If you have any questions, concerns or would like more information comment this post, email, or call  (718) 377-7798 to speak with Michael Reinhardt.

DISCLAIMER:

The use of the Internet or this forum for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this forum. This information is for general information only and should not be relied upon without consulting with an attorney.

Several years ago, the psychology of the home buyer was to become a homeowner as part of the “American Dream”. If they faced an obstacle paying their mortgage, they could sell the house for more than they purchased it for because it was assumed that real estate always goes up in value. However, this assumption is WRONG.

Some people had loans that were adjustable, and simply reset at monthly payments that the homeowner could not afford. Others, had loans that they never should have been approved for, had it not been for some loose banking policies that were not seen as risky provided that the market would continue to rise.

The other category of homeowners, were faced with hardships such as unemployment, illness, disability, death of a spouse, non-payment from tenants, and/or unforeseen major repairs needed to the property.

The reality of our world also tells us that there are a percentage of homeowners who will try and use this banking crisis as an opportunity to take advantage of a situation and fraudulently attempt to do a short sale while they have the ability to repay the loan with other assets they possess.

It is important for homeowners to confront these obstacles when faced with them to avoid falling into a possible foreclosure proceeding.

If you have any questions, concerns or would like more information comment this post, email, or call  (718) 377-7798 to speak with Michael Reinhardt.

DISCLAIMER:

The use of the Internet or this forum for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this forum. This information is for general information only and should not be relied upon without consulting with an attorney.

When doing a Short Sale, the lender will require a short sale package be submitted before any consideration will be given to a request for a Short Sale. The following documents will be requested by the lender:

1. Authorization letter for the lender to speak with a real estate agent, attorney, or other third party.
2. Estimated Net Sheet; an estimate of what the lender can expect to receive from the sale after the expenses.
3. Appraisal of the Property (also known as the Broker Price Opinion – BPO).
4. Hardship Letter indicating why the owner cannot make the payments. Supporting documents such as medical bills, bank statements, pay stubs, etc., should be included.
5. Estimate of any repairs that may be needed.
6. Asset and liability worksheet should be filled out to determine financial inability to re-pay.
7. A Contract of Sale executed by the Purchaser.
8. Payoffs of other loans, liens or other mortgages on the premises.
9. Any other information that the lender is requesting.

When submitting documents to the lender it is imperative that you submit all documentation in a prompt fashion, as a delay in submitting documents can lead to the lender not approving the short sale.

To assist both my clients and real estate agents who are working with short sale transactions, I have created a guide providing beneficial information about short sales, in depth explanation of documentation required, and sample documents. If you are interested in receiving a copy of this guide, please visit my website and request a copy to be sent to you today!

If you have any questions, concerns or would like more information comment this post, email, or call  (718) 377-7798 to speak with Michael Reinhardt.

DISCLAIMER:

The use of the Internet or this forum for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this forum. This information is for general information only and should not be relied upon without consulting with an attorney.