A Quick Short Sale Primer for Non-Professionals

What is a Short Sale (aka Upside Down Sale) ?

The Property has no Equity
The Seller hasn't enough Money

It's that simple

Can I get a fantastic Deal on a Short Sale ?

Probably not …… perhaps a decent Deal depending on activity, location etc…. But fantastic – ain’t gonna happen

Why Not

Because as a rule Lenders will not approve any deal that nets them less than 85 – 90 % of the Current Fair Market Value after Commissions, Closing Costs and Other Expenses. What the Owner paid for the Property and what the Owner currently owes on the property is not relevant.

So even if the Owner paid say $ 800,000 for a Property and owns the house free and clear – If the current market value is $ 400,000 – you can probably negotiate the price down to 90% of Current Market Value. Doesn't need to be in a Short Sale Situation to get virtually the same deal.


The End Result

In pretty much all respects a Short Sale is close to a Regular Sale with the Lender taking a hit on anything owed over 90 % +/- Fair Market Value

Extra Problems

Difficulty in finding who holds the Mortgage due to packaging (time consuming)
Many Licensees that have the Listing do not know what they are doing
Unreasonable time involved in Bank approval process


Summation

Like a regular sale with more aggravation.

Safety Week Tip: Be Alert in Parking Lots

Because real estate professionals are on the go for so much of their workday, they end up spending a lot of time in the car—or, in some cases, getting in and out of the car.

As with so much of what practitioners do, an activity that seems perfectly ordinary and safe can become dangerous. By becoming and staying aware of risks associated with approaching and opening your car, you will be empowered to avoid any dangers before they can occur. Here are six steps you can take:

1. Don’t approach your vehicle if a van or other large vehicle with tinted windows is parked next to it. Find a security guard to walk you to your car, or look for a nearby couple walking to their car and say something like, “That vehicle wasn’t there when I parked. Would you mind making sure I get into my car safely?”
   
   
2. Have your key ready to open the car door. Never stand next to your car searching through your purse. Robbers, carjackers, and sexual predators all watch for this type of distraction.
   
   
3. Once in your car, lock the doors immediately.
   
   
4. Get moving. Don’t sit inside of your vehicle adjusting the stereo, rummaging through shopping bags or your purse, or talking on your phone, especially if the lot is not well populated.
   
   
5. If you have an unlocking button or keyless entry system, make sure you unlock only the driver door. Unlocking all doors allows a predator to simply slide into your car from the passenger side.
   
   
6. Make sure that your dome light is always functioning properly. As you unlock your vehicle at night, glance into the back seat and make sure that an attacker has not gained access to your car.

Source: Road and Travel magazine

Condo Purchases Require Extra Steps

Homebuyers contemplating purchasing a condominium should review a long list of documents and other information to make sure that the property they are considering is a solid buy in this challenging market.

The following information is a the top of the must-consider list:

• Budget. Examine the current budget, a year-to-date statement of income and expenses, and a couple of previous years’ budgets to see how they’ve changed.
  
  
• Reserve study. Understand the plan for maintenance and how it will be paid for.
  
  
• Special assessments. Ask if there have been any and whether more are planned.
  
  
• Delinquencies. How many owners are behind in their payments? Many lenders say no more than 15 percent of owners can be in arrears or they won’t write mortgages in the complex.