Buyers’ Appetite for Pre-Foreclosures and Short Sales Growing


The housing market seems to be picking up in most states including Florida as market conditions continue to favor buyers. But, sellers are having a hard time dealing with declining home prices and are holding out, waiting for a buyer who will agree to their prices.


Because of such dynamics, a lot of buyers are turning to distressed properties which include pre-foreclosures and short sale homes. Sellers of these properties are easier to negotiate with since they are more worried about having to deal with a foreclosure entry on their credit report.

Although the inventory of short sale and pre-foreclosure homes is still huge, plenty of buyers are having a hard time competing with cash buyers. These investors snap up homes and usually re-sell them at a higher price.


The other buyers are complaining of the endless search and the unfairness of having to deal with these cash buyers. Also, the number of homes entering the foreclosure and short sale market is slowing down in states such as New Jersey, New York and Florida because of new legislation where courts process foreclosures.


Still, it cannot be disputed it is a great time for buyers to buy homes. With the economy easing, unemployment rate declining and mortgage delinquencies easing, conditions are indeed looking much better if you are looking for a home to invest in. Couple this with low interest rates and depressed home prices; homes have never been this affordable.


If you would like to take advantage of the savings potential offered by short sale homes, work with a short sale Realtor. You will have an expert to advise you every step of the way. Of course, you need first to understand the process involved in buying short sale home. They may be a bit complicated but with the right Realtor beside you, you will be able to manage everything just fine.

Reference: http://online.wsj.com/article/SB10001424052748703907004576279443655125936.html

Short Sales: Saving Distressed Homeowners Everywhere


The worst thing that could happen to homeowners is to discover there is a huge possibility of losing their homes to foreclosure because of mortgage default. There are times when financial difficulties arise and trying to look for a way out is the thing you need to focus on.

Truth be told, there are actually plenty of options available to you. Although these options will be less damaging to your credit report compared to a foreclosure, you still need to understand what you are getting into. For instance, a loan modification might look attractive, but if your financial troubles are permanent, then this option will only delay the inevitable.

The Short Sale Choice

Avoiding a foreclosure via a short sale is actually a road less travelled simply because the process involved has not been perfected yet. True, it can take a while for the entire transaction to be completed especially if the lender has very little experience handling short sale applications.


Believe it or not, more and more distressed homeowners are putting a short sale on top of their list of foreclosure alternatives. Why? For the simple reason it allows the owner to avoid foreclosure AND pay off their mortgage debt, provided the lender waives their right to file for a deficiency judgment.

It is the only solution which lets you get away from your mortgage trouble virtually damage-free. Of course, you can say goodbye to whatever equity you have, but considering you will not have any negative entry on your credit report other than a short sale, you actually created a better situation for yourself.

For a short sale proposal to be approved, you need to make sure everything is in order. This means looking into the details and making sure all lender requirements are complied such as, documents showing your true financial state, income, tax returns and the very important, hardship letter.

With an experienced short sale Realtor by your side, your chances will be greatly improved.

Florida Short Sale: Still the Best Option for First Time Homebuyers


Owning a home has always been considered to be one of the great American dreams, but with the current state of the economy, the high unemployment rate and tightening lending guidelines, it has been a dream only a few can afford.


Although home ownership may seem to be out of your hands now, you will be surprised to know there is a way around it. The best news is you even get to enjoy savings. All this is possible if you consider Florida short sale properties.

Why short sale homes? The savings potential with these homes offer can be substantial because of declining home values. The owners have found themselves owing more in mortgage debt compared to the value of the home. For those who are having problems making their mortgage payment, they look for a way to avoid foreclosure through a short sale.

These homes are usually priced according to their current market value and the mortgage amount still owed on the property. Lenders have been more accommodating of short sale applications ever since they discovered they spend more on foreclosures in the long run. Also, accepting a short sale offer means being able to get rid of the property and not letting it languish in their inventory.

Many homebuyers have discovered the wisdom of buying short sale homes as evidenced in the growing percentage of short sale transactions in the state. Nearly 30 percent of the total homes sales activity in the past couple of months involved short sale homes.

Since the Florida short sale process is far from perfect, you just need to grit your teeth and be patient. A professional short sale Realtor will be able to help you iron out the details in order for the lender to accept your offer quickly, and hopefully without any counter offers. Patience, they say, is a virtue and you will surely need this while waiting for lender approval.

Of course, at the end of the day, what matters is you will have a house you can call home.

How Risky Are Short Sale Investments?


When it comes to investing in real estate properties, it is not a secret they are worthwhile investments. Compared to putting your money in the bank or buying up stocks, they will certainly allow you to enjoy a better return on your investment in the long run.

Of course, just like any other investment, they pose some risks. Since there are different types of real estate properties, the risks vary as well. For instance, investing in short sale homes, especially these days, is fast becoming the trend.

As you know, the housing industry has suffered a serious beating when the mortgage market collapsed due to predatory lending practices and has yet to recover. As a result, there are literally millions of homeowners who have defaulted on their mortgage and millions more are in trouble as home values continue to decline, leaving most underwater.

Because of this situation, short sale properties are growing in numbers and home buyers as well as real estate investors are noticing them more.

In terms of risks, they are certainly riskier compared to newly-built houses, but the good news is the risks are quite manageable and the benefits enjoyed from choosing these homes far outweigh the risks.

So what are the risks?

Since these homes are pre-owned and the homeowners are busy trying to avoid foreclosure, you may expect some level of neglect. One solution is to check the home personally before making an offer and after, you can have the home professionally inspected. You can always have them inspected right away so you can adjust your offer accordingly.

Another risk involves the lender approval. If you want your offer to receive the nod from the lender, make sure you do some research regarding the home’s current market value and the mortgage debt owed so you have a clear idea what “reasonable” is. Second, make sure you have breathing room, meaning you are ready to increase your offer.


Lender approval can also take some time and you have to be prepared to wait and be patient. Be sure the short sale Realtor knows what is needed to be submitted, in terms of paperwork to ensure no further delays.

Managing these risks will make short sale transactions simpler and quicker. To keep you motivated, think of the huge savings you get to enjoy, which can also be translated to instant equity as soon as home values pick up.



Florida Short Sale Reforms Introduced

Good news for distressed homeowners considering a Florida short sale. Last week, Florida Representative Tom Rooney, along with New Jersey Representative Robert Andrews introduced new legislation which aims to speed up the short sale transactions.

With lenders having trouble keeping up with the flood of short sale proposals, the two legislators deemed it crucial to require lenders to decide on the short sale within 45 days. Obviously, the new legislation is also welcomed by realtors and agents who usually work hard to make sure the short sale is approved as soon as possible.

The Florida Association of Realtors considers the new bill the answer to some of the problems surrounding short sale approvals. In Florida, about 30 percent of the total home sales involved short sales, which proved just how popular this foreclosure alternative has become. Unfortunately, many of the short sales do not happen because of the delays on the lender side.

A long short sale transaction usually results to the buyer backing out. This certainly will not bode well not only for the seller who is trying to avoid foreclosure but also for the entire industry, which is currently suffering from declining home values and median home prices due to the large inventory of foreclosures for sale.

With this new bill, experts are hoping the tide will turn for the state housing market. Florida remains to have one of the highest foreclosure rates in the nation and the end of such crisis is still nowhere in sight. Hopefully, the reforms will prove to be the break the industry needs to jumpstart recovery.

If you are a homeowner with underwater mortgage, you should consider talking with a short sale Realtor. This newly-introduced legislation will certainly benefit you and will most likely allow you to sell your home, avoid a foreclosure and rebuild your life.

Reference: http://www.ocala.com/article/20110413/ARTICLES/110419883/-1/news?Title=Delays-associated-with-home-short-sales-may-soon-shorten&tc=ar

Good news for distressed homeowners considering a Florida short sale. Last week, Florida Representative Tom Rooney, along with New Jersey Representative Robert Andrews introduced new legislation which aims to speed up the short sale transactions.
With lenders having trouble keeping up with the flood of short sale proposals, the two legislators deemed it crucial to require lenders to decide on the short sale within 45 days. Obviously, the new legislation is also welcomed by Realtors and agents who usually work hard to make sure the short sale is approved as soon as possible.
The Florida Association of Realtors considers the new bill the answer to some of the problems surrounding short sale approvals. In Florida, about 30 percent of the total home sales involved short sales, which proved just how popular this foreclosure alternative has become. Unfortunately, many of the short sales do not happen because of the delays on the lender side.
A long short sale transaction usually results in the buyer backing out. This certainly will not bode well not only for the seller who is trying to avoid foreclosure, but also for the entire industry, which is currently suffering from declining home values and median home prices due to the large inventory of foreclosures for sale.
With this new bill, experts are hoping the tide will turn for the state housing market. Florida remains to have one of the highest foreclosure rates in the nation and the end of such crisis is still nowhere in sight. Hopefully, the reforms will prove to be the break the industry needs to jump-start recovery.
If you are a homeowner with underwater mortgage, you should consider talking with a short sale Realtor. This newly-introduced legislation will certainly benefit you and will most likely allow you to sell your home, avoid a foreclosure and rebuild your life.
Reference: http://www.ocala.com/article/20110413/ARTICLES/110419883/-1/news?Title=Delays-associated-with-home-short-sales-may-soon-shorten&tc=ar

Florida Short Sale Homes As Rental Properties

In recent years, the housing industry tells the same story over and over again — homeowners are unable to pay their mortgage and are foreclosed on or decide to do a short sale. Some simply leave their home and never look back.

In any case, some people end up with one option, which is to rent. The rental market is obviously having trouble accommodating the huge demand for homes for rent and this situation should be considered a great business opportunity. If you have some money to invest, you should consider the practicality of buying short sale properties.


Why Short Sale Houses

Unlike foreclosure homes which can be in a state of serious ruin, these homes are sometimes in much better shape. If you are lucky you do not need to spend much for repairs and you can quickly enjoy the return on your investment. To be on the safe side, have a professional inspect the short sale home to determine any serious damage particularly structurally which can pose a costly problem in the future.


Of course, another advantage of this type of property is their relatively-cheaper prices. A short sale happens when the seller asks the lender to agree to the sale of the home at a price less than what is owed in mortgage balance. Usually, this is done because the home’s market value has dropped and created a situation for the owner referred to as being “underwater”.


Most lenders will agree to a short sale as long as the offer price is reasonable. As a buyer, you should take this requirement seriously, especially if you want the transaction to go without a hitch and get approved without the lender making a counter offer.


To do this, make sure you ask the assistance of an experienced short sale Realtor. He or she will help you come up with an offer that both the seller and lender would not be able to resist. It will also be wise to get pre-approved for a loan. This will show how serious you are with the purchase.


Investing in short sale homes and converting them into rental properties is a good investment decision. Market conditions are currently favoring this decision and you should certainly check it out.

Short Sale Buyers: Ask Yourself These Questions


With the savings opportunity offered by short sale properties, a lot of home buyers and real estate investors have started considering these homes a worthwhile investment. If you are among these people, you need to know short sale transactions are different.

To help you decide if this sort of investment is for you, ask yourself the following questions:

  1. Do you have a deadline in terms of moving into a home? – If you are hoping to move into a home at a particular date, you need to understand short sales usually take longer time and you might find your plans in an uproar if the transaction is not closed according to your schedule. If you have a deadline, then this type of home may not be for you.

  2. Are you prepared to increase your offer? – Typically, the short sale offer price is not accepted since the lender would naturally want more. You have to be ready to agree to the counter offer and to be able to do so, you need counsel from a reliable short sale Realtor regarding the recent home sales.

  3. Are you willing to pay for repairs? It would be wise to accept the fact the short sale property may be in need of some repair. Do you have the budget for such costs. Also, accept that banks will not likely shoulder the repair costs considering they are trying to cope with the losses incurred due to mortgage default.

  4. Are you willing to give up control? Again, the lender will need to approve the short sale offer and agree to the entire proposal. This means, as the buyer, you will not be able to dictate much. If you think this is a bit impersonal, then it is not for you.

An experienced short sale Realtor will also most likely ask you these questions to help you determine if you can move forward with the transaction. It is best you answer them truthfully in order to avoid wasting time.

Picking the Best Short Sale Offer


Many short sale Realtors will agree the hardest part is not actually getting lender approval. Believe it or not, the difficulty usually lies in making sure the buyer gets to the closing table.

Once you accept a short sale offer, you can consider the closing to be successful. If the property is priced correctly, you can even expect multiple offers. It is best the seller and Realtor wait for at least 5 days before starting the screening process to ensure no more offers will come in.


Accepting an Offer and Closing Schedule

Once an offer is accepted, you need to make sure the buyer knows you need time to negotiate the short sale proposal. For instance, you need to include in the contract a provision stating the closing will be completed within 30 days of the approval by the lender. By defining the time frame, the buyer is made aware of the time he has to prepare his finances. Keep in mind most short sale approvals are good for at most 30 days.


Buyer Commitment

It would be practical for you to require an earnest money deposit or down payment. Even attorney reviews and inspections should be made after you have accepted the offer. Make sure these contingencies are due BEFORE lender approval. This way, the buyer will feel committed and will think twice before changing their mind.  In most circumstances a buyer will not perform inspections before lender approval though. This can make the process even more difficult, since once you have the approval and the buyer walks because of inspections, you now have to start over with the short sale in many cases.


Getting Buyers to Agree

Many sellers and their short sale Realtors are fearful buyers will not agree to terms like this. Surprisingly, most buyers do, especially those who understand how much savings they will enjoy from buying the short sale property. Enticing the buyer to agree is also simple. Just lower your price a bit and you will be delighted with how agreeable and cooperative they can be.

How to Price Your Short Sale Home Right

In Brevard County, a single family home will still fetch for a median sales price of $120,000. If you are a homeowner thinking of selling your home, you may think such a price would be reasonable. But according to a report from Florida Today, most homes for sale would be sold for about $25,000 higher.

Median home sales price has always been the standard when it comes to charting home value changes. But with thousands of distressed properties entering the market at such a fast rate, the trend has been distorted to a point where relying on the calculated median home price is no longer enough. For every four houses sold last year, one was a foreclosed property. median home sales price for this type of homes was $70,000 and the other types of residential properties were sold at a median price of $143,000.

The story is the same for condo units. Foreclosed condo properties posted a median price of $45,700 while the other condos had a median sales price of $118,750. If you think the reason for the cheap prices of these repossessed properties is because the lenders who own them are desperate to sell, they will offer huge discounts, think again. These foreclosures were sold at such low prices because most of them are in far worse physical condition compared to other homes for sale.

For this reason, sellers of short sale properties should consider these factors when pricing their homes. Basing your price on the median sales price of both traditional and distressed houses should just be one of your considerations, but you should also do some legwork in order to price your home accordingly. You’ll know you have done your job when you receive multiple offers for your short sale listing.

As always, work with an experienced short sale Realtor. You would need their familiarity with market trends as well as their expertise when it comes to pricing.

Reference: http://www.floridatoday.com/article/20110403/BUSINESS/110402001/Median-price-isn-t-necessarily-your-price

Secret to Successful Florida Short Sale: Proper Home Staging


If you have been following the news lately, you are most likely aware of how Florida short sales are dominating the homes for sale market. As a type of distressed property, buyers are slowly coming to realize how smart investing in them is, in terms of profit and savings.


On the other hand, a lot of sellers who are having trouble with their mortgage payments are choosing to sell their home via short sale to avoid having to deal with a nasty foreclosure entry on their credit history. At the same time, they sell at somewhere around 80 percent of their asking price which is really not bad considering the tough competition and prevailing market conditions.


Why Home Staging

Of course, deciding to do a Florida short sale is just half the battle. Since Florida is among the states hit hardest by the foreclosure crisis, the state’s home for sale inventory is brimming with properties. With time against sellers and the tough competition, it is important to recognize the value of proper staging.


Many sellers, even their agents, fail to see the importance of staging a home. It is not enough to think buyers will be using their imagination when looking at your home for the first time. As a seller, you will need to market your home and make sure you grab the buyer’s attention. It is also your job to make the buyers look at your home as their future home.


Smart Staging

If you are worried about spending money you really do not have to, you just need to be a bit more creative. There are actually plenty of ways you can improve how your home looks without spending much money. For starters, you might want to get rid of all the junk cluttering your home such as unused furniture and broken appliances. If you think a fresh coat of paint will do wonders to your home, then by all means do it yourself. Ask a friend to help you, so you can complete the job faster. Simple cleaning and organizing your things can also do amazing things for your home’s physical condition.


It is crucial you and your home make a good first impression. It is the only way you will be able to successfully close a Florida short sale. Keep in mind “less is more” and you will be glad you decided to make your home look simply comfortable and livable.