Are short sales still necessary?
The market is climbing, values are soaring, there is no need for short sales and people have equity again! At least this is what the media wants us all to believe.
The reality is in some markets values have climbed enough that a short sale is not something a potential seller needs to worry about. However, this isn’t always the case. There are still plenty of homes that are underwater and home owners who still need help. As a matter of fact some reports state that every 1 in 5 homes is either under water or in some form of default. In some markets the appreciation has risen slightly enough for the seller just to break even if they are lucky. Some experts say that 20% of the homes with mortgages still are at risk of foreclosure. When facing trouble with their home and mortgage. The first step is to find out what your homes worth. Any home owner can do so by going to www.myhomestruevalue.com where they can obtain a no cost quick valuation of their home.
The good news is due to all of the short sales occurring in the last few years’, lenders have vastly improved their processes and procedures. With the vast amount of foreclosures and short sales on the market in 2009, more realtors have become more knowledgeable about these types of transactions. However, there are many that are just getting back into the game so do your research on the realtor/real estate company you decide to have help you.
Because now that values are appreciating, this in its self is causing issues for home owners who are trying to participate in a short sale. Lenders are coming back with unrealistic valuations that in most cases are forcing buyers to walk and transactions to fall through.
Part of the problem is the time that it takes to get an approval and actually close a short sale transaction. The longer it takes from the time the initial valuation inspection was performed by the bank to close,the most likely they are going to want to order a new inspection and then come back to the buyer with a higher asking price then originally agreed to buy the buyer and seller.
There are many ways to make sure to shorten the time it takes to close a short sale and you as the home owner can help the process greatly. Below I’ll just name a few things that can help your short sale run smoother and cut down on delays.
1. Make sure to provide your agent and lender any and all documentation requested in a timely manner.
- 2. Disclose to your agent if you know or suspect of any potential liens or judgments that might be attached to you or the property that could affect the short sale.
- 3. Inform your agent of any property conditions that could prevent your property from being financed or that could help your agent fight for a more realistic price.
The above are just a few things you as the home owner/seller can do to help the short sale process along. We have been transacting in short sales and distressed properties for 10years and are well versed on the process. Let us inform you of the options that may be available to you and if you can keep your home we will help you do so or whatever makes the best financial sense for your situation.
We do not just push short sales; we are here to help home owners examine their situation and educate them with information that will assist them to make an informed decision that will benefit them now and in the future.
Give us a call for a no cost evaluation, we are here to help you and specialize in lifting your financial burdens by creating a customized market/financial analysis for you. So if your dream is to get out of your current situation, give us a call and let us help you regain financial freedom.
If you want to learn more about short sales we will be teaching a course at Cerritos College on March 8th that is open to the general public. This is a intense 4hour class that will give you a crash course on short sales and all the different aspects related to them. To register you can go to http://cerritos.augusoft.net/index.cfm?method=ClassInfo.ClassInformation&int_class_id=41842 if the class doesn’t show up type in short sales in to the search bar.
Phone: (877) 801-1923 Ext. 101
Fax: (877) 803-3190
Berkshire Hathaway HomeServices