Short Sale Information for Sellers
Posted on May 16, 2012
Due to plummeting real estate values in recent years, there are record numbers of homeowners who owe more on their mortgages than the market value of their homes. This is commonly called being “upside down” in the mortgage, and under certain conditions, the homeowner may qualify for a short sale on the home. A short sale is when the lender forgives a portion of or lowers the loan amount in order for the property to be sold at market value. Simply stated, lenders make the financial decision to dispose of the property in a regular real estate transaction instead of foreclosing on the property if this makes sense from a profit and loss perspective.
Do You Qualify for a Short Sale on Your Home?
In the short sale process, you sell your home and settle your mortgage debt for less than the amount owed. You may be eligible to sell your home in a short sale under the U.S. Treasury’s Home Affordable Foreclosure Alternatives Program (“HAFA”) if:
- You have a hardship, such as a job loss, divorc emergency
- You owe more on the mortgage than your house is worth
- You’re unable to afford your current monthly mortgage payment
- You’re unable to modify your current home loan
If you qualify and want to move forward with a short sale, you should consult an attorney or a professional real estate broker/agent who is experienced in short sale transactions. See the “Basic Steps for a Short Sale” for a general idea of the process…but keep in mind that the steps may vary depending on the lender requirements and/or the advice of the real estate professional who will guide you through the process.
Basic Steps for a Short Sale Transaction
A real estate professional who specializes in short sales and is well-qualified can help you with these steps:
- Completing a property valuation analysis – lenders will only approve a short sale if the borrower owes more than the property’s fair market value.
- Contacting the Lender for a short sale application.
- Collecting all of the financial data and other information required by the lender – including a fact-based letter detailing borrower’s hardship and current financial situation.
- Listing the property for sale.
- Receiving and ratifying a purchase contract from a qualified buyer.
- Sending the purchase contract to the lender, along with all of the lender-required documentation (requirements vary from lender to lender).
- Being persistent, but patient – ideally, it should take 30-45 days for a purchase contract to work its way through the lender’s system, but the process could take longer.
These steps will need to be done for each lender that is involved and every lender has their own process. Some lenders that are in second position (2nd trust/mortgage) will only start processing their short sale after they’ve received written short sale approval from the first trust. This means that the overall short-sale approval process may take twice as long if there are two trusts/mortgages secured by the property.
Consult an attorney and/or a licensed tax professional to understand all your obligations relating to a short sale.
Resources:
- http://www.biggerpockets.com/renewsblog/2012/02/26/short-sale-incentive-programs/
- http://www.move.com/home-finance/mortgages/how-to-avoid-foreclosure.aspx
- http://www.biggerpockets.com/renewsblog/2008/02/12/tips-for-navigating-the-short-sale-process/
- http://www.realtor.org/realtors/short_sales_tips_tools
- http://www.realtor.org/rmosales_and_marketing/handoutsforcustomers/handouts/shortsales_sellers
- Foreclosure Avoidance Resource: http://www.hud.gov/offices/hsg/sfh/hcc/fc/index.cfm
- HARP Program Eligibility Calculator: http://www.zillow.com/mortgage-calculator/harp-eligibility/
- Bank Resources:
Today’s Real Estate Update In the Napa Valley
Posted on May 9, 2012
Our Market continues to be very active especially in the under 500k price range. I wrote an offer for a buyer last week on a bank owned home in American Canyon. We were one of 26 OFFERS !! Yes you read that correctly, 26 offers. There is very little on the market and lots of buyers.
Today’s interest rates are 3.875 fixed with 0 pts on a conventional loan
3.75 fixed – 0 pts on a FHA loan
FHA loans require 3 1/2 % down and conventional minimum 5 % down
The house I made an offer on is pictured below. We still have not received an answer back
If you have questions or comments about my blog please contact me at
Virginia Morse
Coldwell Banker Brokers Of The Valley
1775 Lincoln Ave.
Napa, Ca 94558
DRE# 01873604
Certified Short Sale Specialist
National Association Of Realtors
707 258 4053 -Direct
707 888 2199 –Cell
“Selling a house is not something for amateurs.”
Posted on Apr 23, 2012
Selling a house is not something for amateurs. Don’t waste time stressing about choosing the best agent. I have the skills and experience to get your home in Napa sold quickly. Even the most desirable homes need an expert behind the deal. The person you choose makes or breaks your selling experience.
When choosing an agent, you want someone who can promote your listing, get top dollar for your listing, and negotiate for you in closing. With Virginia Podesta Morse, Realtor®, we deliver a pleasant selling experience!
As a respected real estate agent in Napa County, I can assure you that you’ll get the best price for your home and get it sold quickly. It’s easy to select any agent, but selecting the right agent takes planning. Here are just some of the ways that I will be the best real estate professional for you:
I’m the best in Napa, California choose Virginia Podesta Morse, Realtor® and know your property will get sold quickly.
Virginia Podesta Morse, Realtor®: Napa’s real estate experts
Posted on Apr 23, 2012
Selecting the right real estate agent who understands Napa could be the difference between a joyful, worry-free home buying or selling experience and a drawn-out, troubling hassle. You require a real estate pro ready to fully dedicate their efforts to you.
A real estate professional who understands the Napa area, local economy, property rules, Napa county schools, etc. is vital to buying or selling real estate. And with my great knowledge of the Napa community – I have the know-how and long-running history of success you need
Whether you’re purchasing, selling, investing or doing research, you’ll need an agent who understands technology and how to apply it to a real estate transaction. You’ll love the resources available here such as mortgage calculators, current listings, tips for staging your home and much more – plus the e-mail alerts that I send. But these will never replace the time I personally spend with you, serving as your personal guide through this exciting process.
Home Financing in Todays market
Posted on Jun 2, 2011
There seems to be a lot of misconception about todays lending environment. I want to touch base on a low down payment program that many people don’t seem to know about.
It is called FHA financing. Very common, especially with first time homebuyers but it can be used with move up buyers as well.
This program requires 3 1/2 % down payment of the the purchase price, plus closing costs. For example: you want to purchase a 350,000. home. You would need to have 3.5 % as down payment which equals 12250.00. That would be your down payment amount and then closing cost would be an additional cost, which can usually cost between 2-3 % of the purchase price.
Not to confuse the situation more but very often on Short sale and bank owned purchases the 2-3% closing cost fee can be asked as a credit when the offer is being made. It is very common to get this and if you do the only funds you need to close would be the 12250. , as in the example above.
This is only on a owner occupied property and not for an investment or second home.
Contact me with any questions.
Virginia Morse Realtor®
Direct : 707.258.4053Mobile : 707.888.2199License No: 01873604Mortgage Calculators
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