Florida.Simms.com

Choose Your Lifestyle

Categories

Translator

Archives

Short Sales

Short sales are sales at a price that’s not high enough to pay off the mortgage. So – the money is short. Sadly, the time to complete a short sale is anything but short. USA Today had an article this morning on short-sale frustrations. We’ve represented both sellers and buyers in short sales and it’s generally a case of Wait – Wait – Wait. We’ve had buyers that didn’t get a lender response for 6 months. Many times buyers will get tired of waiting for months for an answer to their offer and will withdraw. Sometimes the lender will counteroffer and the buyer will decline.  Back to the starting gate. USA Today cites a study that says just 23% of short sale offers actually close. If I had to make a guess from experience, I’d say perhaps only 5% of the offers actually close – perhaps 23% of the offers that get a response from the lender close.

The timing and complexity gets more complicated if there is more than one loan. If it’s a home equity loan, even with the same lender, it’s a totally separate department. Sometimes there are second or third mortgages. Sometimes FNMA needs to approve. Sometimes a guarantor needs to approve. Sometimes the mortgage is owned by multiple investors. And yes – by the time the lender responds, the market may have changed and the buyer may not longer be willing to pay the once-offered price.

It helps if the real estate agent and/or title company checks to be sure the original documentation (financial statements and hardship letter from the owners, brokers price opinion, etc) is complete, as the package will keep getting rejected if anything is missing, so the time line doesn’t even start.

We hear that the government has plans to streamline the short sale process.

Spoken by Sharon Simms | Discussion: No Comments »

Short Sales – are they a bargain?

Many of today’s “bargain” properties are short sales. Are they really a bargain?  Maybe.

Some properties are listed below what the lender will ever agree to – it’s the current owner setting the price (often at a price recommended by their agent). These homes are “short” in that the sales price is less than is owed on the property. They are NOT “short” in time. Any offer that the seller accepts must still be approved by their lender. If the seller has more than one loan, it gets even more complex. It may take several months before the lender tells you if your offer is accepted. and they may continue accepting other offers during that time.

If you don’t have that much time or don’t want the uncertainty, you may want to look for properties offered by owners at short-sales  prices that don’t require third party approval.  If you’d like help finding these, contact The Simms Team at ALVA International, Inc.

Spoken by Sharon Simms | Discussion: No Comments »

Banks getting slower at processing loans

We’re seeing more instances of banks that are “ignoring” the closing dates on contracts – not all of them, but enough to be a concern. Other agents are reporting delayed closings as well. Sometimes the day before the scheduled closing the lender will ask for more information from the buyer – sometimes the lender will just say that they didn’t “get to it” and delay it a week, and then another week. Lesson 1: it’s not over until it’s closed.  Lesson 2: have a contingency plan in case the closing is delayed.

Spoken by Sharon Simms | Discussion: No Comments »

Hurricane Season Starts – Florida Listens

Hurricane season starts every year on June 1st – not that hurricanes can’t emerge prematurely, but other than that, June 1st is when Floridians start listening to the weather reports – or watching the newspaper headlines.

If this is your first hurricane season in Florida, here are some hints for you: Read the rest of this entry »

Spoken by Sharon Simms | Discussion: No Comments »

Next Entries »

Add to Technorati Favorites Directory of Real Estate Blogs Real Estate Blogs - Blog Top Sites

Copyright © 2007 Florida Simms     Agent Login     Design by Real Estate Tomato     Powered by Tomato Blogs