If we assume that at this point you have already gathered the knowledge of what a short sale actually is, how it may affect you in the long run and what criteria it takes to actually pursue one then we also need to explain how we actually go about getting a short sale approved. There are many real estate agents that are currently working hard to try and help homeowners get through the process. We can all commend them for this but at the same time keep our fingers crossed that these agents are actually successful in getting it approved with the bank(s). it is not difficult to list a property, gather some of the necessary documents needed by the bank and turn it in when we get an offer. Any of us agents can do this.

Now here is the difference with how I am successful in getting the bank to approve a short. We are able to get the banks to order a BPO (Broker Price Opinion, similar to an appraisal) and provide us with a value of what they would be willing to accept as a sale price on the property BEFORE we ever list the property for sale on the MLS. This is very important because it cuts down the waiting time for approval when an short sale package is submitted to the lender. In the traditional way of listing the property first and then submitting the package it is unknown whether the bank is even willing to accept a short sale or not. Many times it takes 2-3 months before an answer is even received. Because of this lengthy process often times the buyers find other properties and decide to move on rather than continuing to wait for answers. There is an abundance of properties out there and buyers can be choosy. With our process this goes much quicker and many times much more successfully.

If you or someone you know is facing a situation of not being able to pay the mortgage or simply need some questions answered, please don’t hesitate to call my private line at 763-242-6303 or drop me an email Rob@MnShortSaleExpert.com and I would be happy to have a confidential conversation.

I am still amazed at how many people have never heard of a short sale. With the overwhelming amount of media reports about the housing market it’s hard to imaging not hearing about this concept. The word FORECLOSURE is a very commonly heard term and one that far too many homeowners are thinking about and considering doing. However, these same homeowners would likely NOT consider this if they knew what a short sale was and how they can “benefit” from a short sale versus letting the property go back to the bank through the foreclosure process.

The #1 thing to remember when times get tough and you begin to have difficulty in making your monthly mortgage payments is that you do have options to help keep you from going through foreclosure. The first is to contact the lender to see if you would qualify to do a loan modification. Many lenders are open to this right now however they do have some guidelines in place which are tied to whether you are able to qualify for this or not. In many cases we see that the homeowner is actually not able to qualify for this program and so another option needs to be considered. The next best option that a homeowner has is to speak to a Certified Distressed Property Expert (CDPE)like myself to evaluate their option os possibly doing a short sale. I can help explain the differences between the short sale and foreclosure and the long lasting consequences. Click on the link Short Sale vs Foreclosure for a comparison chart between the two.

If you or anyone that you know is having difficulty making their mortgage payments and do not know what to do or where to turn for help, please call me directly at 763-242-6303 or send an email to Rob@MnRealEstateTeam.com for an immediate response. I am hear to help simply to answer questions and to help keep you out of the foreclosure process.

With all of the talk surrounding the current status of the housing market you might ask yourself, “Who is even buying right now”? There are acually several different groups of people that are in the market to purchase real estate in this current market.

The first group of buyers are the investors. They don’t seem to be purchasing much other than foreclosures and short sales. This is where they are finding the best value, even if there are repairs to be done before they can get the property rented (not many are actually “flipping” these properties right now). Up until the first part of 2007 these same investors were out buying standard “bread-n-butter” existing homes. However with the exploding number of foreclosures as well as short sale opportunities most investors are focusing on these properties rather than mre traditional properties.

 The second group of buyers are the first-time buyers. The ones that are either still living at home, a college dorm or even out on their own in an apartment. These also becoming very familiar with the home buyuing process and doing their homework ahead of time via the internet. They do need quite a bit more “hand holding” and will tend to look at many more homes but when they find something they like you can be sure that in most cases they can’t wait to move in.

The third group of buyers are those that do not necessarily HAVE to move but would LIKE to move. They are also in a position of strength when it comes to negotiating on a property. Because they do not absolutely have to move they can typically demand further price cuts on certain properties. In many cases these are “move-up” buyers. These buyers are more likely to purchase short sale properties because they are able to wait to get an answer from the bank that a short will be appoved. Thie first time buyers are very anxious and want to get moved quickly. The investors simply look at the numbers. If it makes sense they proceed. If it doesn’t they move on to the next property.

The current market that we are in is ever changing and who knows when or where it will end up. We all need to keep a positive focus and ]things WILL turn around. They always do..!!

Short Sales Explained

Although the phrase “short sale” is starting to become more and more common in today’s vocabulary for many people I am still getting this same question over and over…What is a short sale..?? Many have heard of it but simply do not understand how the process works and others simply have never heard the term yet. Surprising but true.

A short sale is a phrase used to describe a sale where the cost of the product (in this case the property) is actually more than the sales price. In real estate a short sale can be a rather lengthy process in which an agreement is made between the lender and the seller where the lender will accept a lesser amount than is owed. There are a few typical steps involved with a short sale as follows:

• The seller of the property needs to be in a distressed state which in most cases means that there is a financial hardship that has occurred. Many times the property is in foreclosure at this point. If the seller is NOT behind on their mortgage payments the lenders will not always approve a short sale. They look at this as being a “performing” loan. However, recently the lenders are even starting to consider these performing loans for short sales.

• A lengthy package of documents needs to be assembled by the real estate agent to prove to the bank that the seller no longer has the ability to make the payments. Most of these same documents wil be ones that you actually used to qualify for the loan. In addition to the financial documents a hardship letter needs to be drafted explaining the causes of the financial hardship. Also market trends, statistics, listing history, recent sales and other information gets sent along to the bank to help the lender make a more accurate determination as to why they should accept a short sale.

• The property would then be listed for sale on the MLS and proceed as a normal sale with the exception that the offer would need to have the lender’s approval before being finalized.

This gives just an overview explaining a short sale as well as the process that a seller can go through to determine whether a short sale makes sense or not given their situation. If you or anyone you know is having difficulty with paying their mortgage please feel free to contact me directly through this site and I would be happy to answer any and all questions to see if a short sale is the best option. I can be reached on my private line at 763-242-6303 or rob@mnrealestateteam.com.

                                           “Specializing in helping families avoid foreclosure” 

 

 

Minnesota Short Sales Expert
MN Real Estate Team

 

“Specializing in helping families avoid foreclosure”

Avoid Foreclosure Hotline,
Call 800-818-4359, Ext. 9111

Are you or someone you know behind on mortgage payments..?

Certified Distressed Property Experts
We Can Save 9 out of 10 Families from Foreclosure!

In today’s ever changing real estate market an overwhelming number of homeowners are facing challenges with having the ability to pay their mortgage each month. Hardworking families are losing their homes at record levels. The latest numbers indicate that nationwide the foreclosure rate is worse than during the Great Depression and it is far from over.While it’s true that many distressed properties are the result of the subprime mortgage crises there are many other reasons that a homeowner may find themselves in this unfortunate situation. Here is a list of additional reasons.

• Payment Increase or Mortgage Adjustment
• Loss of Job
• Divorce or Separation
• Business Failure
• Extensive Damage to the Property
• Death of a Spouse
• Death of Other Family Members
• Sever Illness
• Military Service
• Too Much Debt
• Reduced Income

Through extensive and ongoing education, I have earned the CDPE Designation, and have dedicated my time and effort to understanding the issues distressed homeowners are dealing with. I understand the full range of solutions and am ready to help you avoid foreclosure. When I work with homeowners in listing their home as a short sale I handle all of the details. I have a team that I work with to do all of the negotiating with the bank to get them to accept a short sale for the property.

Foreclosure is NOT your only choice.

There are alternatives!

Please visit Frequently Asked Questions where many of your questions will be answered.

Call or email today for a confidential conversation.

763-242-6303

Rob@MnShortSaleExpert.com