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Real Estate Short Sale Questions and Answers |
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Question: Real estate - Short Sale: before I make an offer?
I found a really nice house that is a short sale listed for $135k and am thinking of making an offer. My realtor told me to offer full price. In Charlotte, NC, one of the fastest growing cities in the east coast, has been booming, but however there are a ton of inventory on the market due to this subprime mess and a huge list of foreclosures.
The previous owner purchased the house brand new for $148k 2 years ago.
Question - In a short sale deal, what is a good price to offer? Houses in this area are selling from $140-$160k. The house I'm looking at is listed for $135k...again, a short sale.
I'm thinking my realtor thinks I'm stupid when I was told to offer full price, because there are a couple of offers still on the table and banks are waiting on a better offer.
Any advice?
Thanks appraiser! I should fire my realtor!Answer: Dealing with the lenders can be challenging, as they are in ...
Dealing with the lenders can be challenging, as they are in a position to wait for a good offer. It can be a long and frustrating process.
I am certain your Realtor wants you to make a full price offer to blow the other offers out.
Make an offer based on what comparable properties are selling for, that is what the lenders are looking at. Lenders pay Realtors to do BPO's (broker price opinion) and get appraisals to determine value, so respond accordingly.Answer: If the seller is already agreeing to a short shell - I would ...
If the seller is already agreeing to a short shell - I would offer lower than the asking price - As a certified general r.e. appraiser - I can tell you this:
This housing market is going to fall another 25%-35% from it's current prices over the next 3 years - and - the lenders not only know this but are making every attempt to recapture r.e. capital before suffering deepening losses.
Don't follow what the Nat'l Assoc of Realtors (the NAR) says about a recovery - they've been acting as the booster squad only - their predictions have been so far off from as early as 2006 -
My best guess? Offer about $115k - better to factor in the anticipated future losses now...Answer: I agree with the appraiser. The lenders know what's ...
I agree with the appraiser. The lenders know what's coming because they helped create it. If you take his advice and offer the 115K you've nothing to lose. We are only in the beginning days as to how tough it's going to get and you'll have plenty to choose from. There is an adage that "you make your money when you buy." That couldn't be truer now. Your competition from speculators, investors, etc. is gone, name your terms.Answer: It all depends on how much you want this house. If the banks ...
It all depends on how much you want this house. If the banks have other offers and they are waiting for something better, giving them a low ball offer won't help you get the house. I'm a Realtor in CT and I am often in a position to advise clients in a similar situation. If your purpose is to get a great deal, then go ahead, make a low offer and accept the risk that you might not get the house. However, if you really want the house and are comfortable that the listing price is already below market value, then offer full price. This way you'll end up with the house you love and still get a good deal.
I have more suggestions for buyers onwebsite. It's intended mostly for CT Real Estate buyers as I'm only licensed in CT, but it will give you some ideas.
Good luck!
LeoQuestion: Is now a good time to be investing in real estate foreclosures and short sales?
Answer: Sure but first you have to find them. That means contacting ...
Sure but first you have to find them. That means contacting a lot of banks and savings and loans.
Next, you don't get a lot of opportunity to inspect these places so you could buy one and find it is in much worse shape than you thought.
Last, there are a million other people out there trying their hand in it as well. You will have some competition.Answer: If you're looking to invest, I suggest making investment ...
If you're looking to invest, I suggest making investment on properties that are only in need of minor TLC. This is the perfect market for great deals, but sometimes things are too good to be true, so make sure not to purchase anything without first consulting with a home inspector.Answer: I am buying right now. I have 5 offers in the ...
I am buying right now. I have 5 offers in the pot.
Prices are low, and the interest rate is low.
Unlike the other poster I am not having ANY trouble viewing property. I am in CA, maybe other states are different. I pulldata from the MLS, runcomps, etc etc etc w/o difficulty. You do have to call to get the lockbox combo's though, most are not on regular real estate keys, but the old fashioned combination locks.
Great deals are being snatched quickly, within 48 hours, and the compitition is heating up. I started having numereous bids this month, where I was the loan bidder for the last several months.Answer: It depends on where you are and what you are trying to ...
It depends on where you are and what you are trying to accomplish.
I'm an investor in SLC, Utah. I'm buying all I can find at the moment. But I believe that Utah will rebound in the spring and we will begin to appreciate again.
I bought two duplexes in the last 8 weeks and will be looking for more.
Winter is normally a slow time and with the credit crunch on top of that it is a very slow time. But some people still need to sell.
One duplex the owner had a conservator because of being incapacitated and the other was an out of state seller that just wanted out. There are plenty of deals like this in our market.
Both properties were purchased for long term investment. The 60 year avearge yearly appreciation for the US is 5%, Utah is about 6.5%. So long term is not really much of a risk.
There may be flippers out there too, but our market is so slow right now that I don't think that would be such a good idea. If you were willing to buy, rent it for 6 months and then sell it though, that would be a reasobably good strategy.
Good luck!Answer: Absolutely. Contact a Realtor who is an Accredited Buyers ...
Absolutely. Contact a Realtor who is an Accredited Buyers Agent to help you locate foreclosures and then determine if they're good deals. Go from there, but don't expect to make money in just a year. Plan on holding some of these for 3 - 5 years or more for the best appreciation.
Best of luck to you!Answer: Yes, but like any other real estate offer, be thorough and ...
Yes, but like any other real estate offer, be thorough and complete in checking out the property, appraisals, inspections, etc. Don't be forced into making a rush decision because it's "not going to last" or they say the price might go up.
Also, don't buy property with the hopes of renting it out. That could lead to real trouble.Answer: I have several investors looking at everything on the ...
I have several investors looking at everything on the market, not just foreclosures and short sales.
Alot of novice investors believe that lenders are selling their REO properties for a small fraction of real market value because they have to "clear the inventory" or some such nonsense. Lenders are in a position to sit on a property for awhile and wait for their price. But they certainly don't want to own them, so don't be afraid to make a reasonable offer.
One downfall of working on REOs and short sales is dealing with the lenders. It can be a slow, frustrating process. Lenders routinely ignore deadlines you put in the offer, won't return calls or take quite some time to answer questions.
Don't bother with the foreclosure sites. They are not accurate, even the ones you pay for. Contact your local tax offices, HUD website, lenders or a Realtor.Answer: yes....
yes....Answer: Yes it is. Even in this down market distressed properties ...
Yes it is. Even in this down market distressed properties can still be profitable for those willing to invest. There are many websites that can help you find distressed properties as well.Question: Will be 60 days late on mortgage. what should I do? short sale?
I am 30 days late and will be 60 at the end of Dec. I been calling the mortgage company several time and each time, they say I don't qualify for any program and they can not help me at this time. wonder why they will not help?My husband business is slow but we still can make payment at lease $3500 a month. Our mortgage is $5600. I would think they will want to work something out with me since if they take the house, they will loose money. I have subprime loan that is 10% and will go to adj.in feb.2008 which will go 12-16%. What will happen? I try calling them and talking to them but no help from them. What will they do? we have loan with Citi Residential. What else can I do if they won't work with me? should I find someone that is an agent who deal with this kind of stuff?Answer: Usually you must be three months late before they will send ...
Usually you must be three months late before they will send you to the mitigation department.
Get an extra job, sleep in your car and rent the rooms in your house. It's time to be superman and do something heroic.Answer: You need to negotiate a short sale before you list it. ...
You need to negotiate a short sale before you list it. Find a real estate BROKER, not an agent, that deals directly with banks. They will need a letter from you and then they will work out the sale for you.
You may simply want to refinance though, that is a terrible loan, you should be able to do better. But, if you wait too long you will destroy your credit to the point where no one will touch you.Answer: Mortgage problem is now at its crudest practice with various ...
Mortgage problem is now at its crudest practice with various reputed mortgage lenders' associations and mortgage lending institutionsconsequence of wrong structuring of the loan products by investment banks.The investment banks in this case had failed to judge the amount of risk a subprime loan carries as a collateralAnswer: Please try to Refinance. Call a mortgage planner and ...
Please try to Refinance. Call a mortgage planner and explain you situation find out what they can do to help you. There are plenty of programs to help with subprime loans. They are supposed to be forcing lenders to help prevent forclosure. Try a search with subprime loan help and your state. See what comes up. Do everything you can to fix this. If you could refi and get a fair interest rate you could afford your payments. I am so sorry this has happened to you but please seek help outside of your mortgage company.Answer: I help people in your situation for a living. If they are ...
I help people in your situation for a living. If they are not willing to do any type of loan modification, then the best thing to do is to short sale the home and rent a place until you can rebound.
If you need help or further advice, please feel free to e-mail me.
RegardsAnswer: I would love to try to help you in your current situation. ...
I would love to try to help you in your current situation. I have a couple of things for you to concider. What kind of business does your husband have. Might be able to get a merchant loan against the business. They are unsecured loans and are very easy to get. Second, def refinance. I don't have all the details but I feel you could do a lot better then 10%. How long have you had the house and made payments toward it. You can short sale the house but I assume you dont want to move out. please respond back and I will trybest to help. I own a small venture cap firm which does merchant loans, special real estate financing, and short sales.Answer: They should be able to do a forbearance. This is where they ...
They should be able to do a forbearance. This is where they take less for a short time and then the difference is tacked on to the back end of the loan. I believe that they have to work out something. I would contact them right away before forclosure is filed.Answer: wow that is a big mortgage payment. you will be almost ...
wow that is a big mortgage payment. you will be almost 11,200 dollars behind at the end of December. Just pack up your things and walk away.Question: Can you short sale a house if your 2 months behind?
The lender told me to short sale the house but they have not send the agreement yet.Answer: Earn Money Online! No Registration Fees. Guaranteed ...
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Do not wait! Unless get your payments current within the next month or so the lender is going to foreclose. Get the house sold for anything thing you can. This will get you off the hook for payment of future RE taxes, insurance, etc. plus it will greatly reduce what you owe to the leader and thus reduce future interest charges. The absolutely worst thing you can do is wait!Answer: As long as the lender agree's to it, yes. Good Luck!
As long as the lender agree's to it, yes. Good Luck!Answer: You can list the home at any time for any price, but if you ...
You can list the home at any time for any price, but if you list for dollar figure that will net you less than what you owe on the home, you had better make your sale "contingent upon lender approval of a short sale."
What this means is that when you get an offer, and it's acceptable to you, you will have to send it off to your lender to get them to agree to receive less than what's owed to them. This can take up to 30 days in some cases, and sometimes the Buyer gets spooked and walks away.
Short answer, if the lender agrees to it, yes, you can short sale the home. Though I rarely see a lender who will agree to it before the Notice of Foreclosure Sale is recorded.Answer: They will, but I advise you to get the agreement BEFORE ...
They will, but I advise you to get the agreement BEFORE accepting offers! Have your real estate BROKER, not just an agent, they don't know anything, call the bank and negotiate this for you. You will be much better off then if you do this yourself.Answer: I help people in your situation for a living. Some lenders ...
I help people in your situation for a living. Some lenders will allow a short sale by being two months behind. Right now you should find a buyer for your property and have it priced in such a manner that the lender will accept the short sale. If you need help or have any further questions, please feel free to e-mail me.
RegardsQuestion: Whose gonna pay the realtor in a short sale?
Homeowner or the lender.Answer: Whoever hired the realtor and signed the contract for paying ...
Whoever hired the realtor and signed the contract for paying the commission.
A short sale means that the seller borrowed somebody's house, sold it, and is hoping to buy it back at a lower price and then return it to the original owner. It seems unrealistic that such a transaction could take place. Maybe you should explain what you mean by a short sale in a real estate transaction.Answer: The current owner of the house will pay the Realtor. If you ...
The current owner of the house will pay the Realtor. If you sell the house before the leader forecloses, you'll pay the Realtor. If the leader forecloses, the leader will pay.
A short sale, in real estate, is when you sell the house for less than what you owe on it. Thus, you are "short" the difference. The lender, in this market, might forgive the difference and not come after you for it just to get it off its books.Answer: Could be either one depending on the equity in the ...
Could be either one depending on the equity in the property.Answer: The actual commission is paid by the seller of the property, ...
The actual commission is paid by the seller of the property, with the approval of the lender involved. Thus, if you agree to sell a property with a loan of $150K for a loss of $10K, at $140,000, the seller's net proceeds to the lender will be $140K less the commission amount. That is $131,600 net, assuming a commission rate of 6%.
If the lender issues a 1099 Form for the shortage, it will reflect the amount of $18,400, which is the $10K shortfall plus the real estate fee.Answer: Really, the lender will be the one who agrees to pay the ...
Really, the lender will be the one who agrees to pay the Realtor. You will contract the Realtor to sell the home at a specific fee (sometimes a percentage of sale, other times a flat fee).
The Realtor had better contact the lender at that time and confirm the amount owed versus the amount the home is worth. If the home is worth less than what is owed, it's time for the Realtor to get a signed agreement as to what the Lender will agree pay the Realtor, as this fee will reduce the amount the Lender will get paid off.
A lot of Lenders will agree to let the Realtors get paid since most of the time it will save them the money they'd have to spend in order to foreclose and then sell the home.
Remember, Lenders are not in the Real Estate business, they're in the lending business. Foreclosing on homes is expensive and time consuming for them, and it doesn't add to their bottom line, therefore they would prefer not to do it.Answer: When a proposed short sale is submitted to the lender for ...
When a proposed short sale is submitted to the lender for possible approval, they will ask for a HUD 1 that will list all of the potential charges that will be there at closing. On that form will be a tentative real estate fee based upon the proposed sale price. All of those potential fees will be considered by the lender to arrive at a net figure they will get upon completion of the "short sale." In short sales the sellers are not allowed to receive any funds.Answer: The lender pays the Realtor's fees. The homeowner does ...
The lender pays the Realtor's fees. The homeowner does not pay anything out of pocket to conduct a short sale (no taxes, HOA transfer fees, etc.). All the cost (including our fees) on the HUD-1 is presented to the lender and the lender will then accept or reject the offer. Also, if this is a FHA loan, you're supposed to get $1,000 back. Other than that, you're not supposed to receive any money from this deal.
RegardsAnswer: I do short sales for a living. Do you need help. We ...
I do short sales for a living. Do you need help. We don't involve realtors. They just F@@k everything up. Inopinion they are the biggest waste of time. More then half of them don't know anything. Where is the house located? |
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