3 Important Keys To A Successful Short Sale

In my short sale business, I have found that these 3 key steps, could really make the difference to a successful Short Sale. These steps also give the seller a chance from the get go. Getting it right the 1st time, could really save all parties a lot of headaches.

The 3 Keys To A Successful Short Sale:
1.) Listing the property accordingly. Using other sold distressed short sale comps. Apples to Apples!
2.) Making sure you do your best to give any ammo of work needed or problems with the property, which goes to the banks appraiser.
3.) Use a professional negotiator. By doing this, it delegates the short sale activities and lets Realtors go get more business. Leverage your time!
images-2 I have also found that Realtors who are less concerned about the property selling for top dollar (while doing a short sale)  are the ones who are doing a lot of transactions & very successful at short sales. They care more about getting the short sale completed for the seller, rather than how much commission they will make.
If you really think about it, the short sale has to get approved at a price that a buyer is willing to pay, or your pretty much doomed with unneeded headaches, you have to continue disputing the value, & fighting the bank on why buyers are backing out.
Avoid all of this by using these 3 key steps above.

If you like what your reading, please feel free to share this blog.
Thanks Jay @San Diego House Solutions

Thinking about doing a Short Sale? Call Jay Right NOW 619-390-0566 or visit http://www.SanDiegoHouseSolutions.com

Market Manipulation Or Housing Recovery?

imagesSome say it is so obvious about the real estate markets manipulation, while others think there is a lot of good things happening.

If you turn on the news, all you hear about is how great the housing market is doing & we are in a recovery. Interest rates are at record lows, so the message is to buy now.

I personally do think it’s a great time to buy but you will need to push hard & at the same time, be very patient to find a property you like, as we have record low inventory, which some sources say we are at an 11 year low.

Why is that happening?

1.) Banks are still holding back on releasing inventory & don’t want to flood the market.

2.) There could still be 10′s of millions of shadow inventory, which is increasing demand.

3.) No money down loans are back, creating interested buyers, & there are also a record number of cash buyers that are in full affect.

There are a ton of opinions on whats going with the real estate market & no one really knows where we are headed.

My advice is to really watch the market & invest very wisely. If prices sky rocket, (which is what looks to be well on it’s way) really making sure you can afford your mortgage, just might be a smart decision, so know one gets caught up in the same trap as 2005-07

Feel free to Leave a comment with your thoughts. We all have different opinions, but from what I’m seeing & hearing from my resources, We have about 2-4 years of inflated prices & then another dip will be under way. Be careful out there & make smart decisions.

Understanding Comparable Sales, Is So Important To A Successful Transaction

reo-houseThere are so many things to consider with understanding comparable home sales, yet it really isn’t that difficult to understand. You just have to do a little extra home work, to get the true value of a property.

The biggest mistake I see in this market, where people get there comparable sales so wrong, is because you have so many different types of sales going on.
There’s bank owned sales “ugly & pretty”, short sales “ugly & pretty” traditional sales, & investor traditional sellers, who put a wide range of fix up costs, into their properties.

Lets look at where new investors make mistakes & why different types of homes, sell with such a difference in price range, yet it can be a similar house.

1st, Most new investors end up paying too much for a property, which makes for a tight repair budget, & then they can’t  give the property what it truly needs.
Also, they tend to cut corners, yet, when they see a few comparable sales from other investor flips, they assume their property will sell close to those comps.

What they didn’t take into consideration, (Which is so Key for Investors, Realtors listing there properties & traditional sellers) is how much money & renovation those investors put into those properties.

IE: An investor who put 15-25k in upgrades, simply doesn’t even come close to an investor who dumped 65-85k+ into a full, completely done renovation.
There is such a huge difference in these numbers & quality of work done to a property.

I recommend digging a little deeper & viewing these comparable sales by doing a quick drive by, viewing them personally, & looking at pictures online.
By doing this it can really help get you a rough idea of how much went into a property.
It Really Isn’t Rocket Science.

Hope this helps with understanding comparable sales. If you have any questions, feel free to comment or send me a message.
Thanks for reading my blog & remember to compare apples to apples.

If you think this post will help someone, Please share it.

Apples

New Home Owner Buys A House, That Had A Double Homicide In It- Buyers Are Suing!

Did a Toronto Seller & Realtor have to disclose there was a murder in the house?

According to what I understand for California, “& I’m sure every case is different” 

but to my knowledge & from the California Association Of Realtors, if the death occurred more than 3 years prior to the transferee’s offer to purchase, lease, or rent the property; or three years has past, you don’t unless someone asks.

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I’m Not to sure I would feel comfortable buying a house with a double murder homicide in it as this couple Eric and Sade-Lea Tekoniemi have done last fall. They learned it had been the scene of a horrific double murder 15 years earlier. That discovery has now led to a lawsuit against the real estate firm, an agent and the house’s former owners for allegedly failing to reveal the home’s history.

Although the couple said they wanted to cancel the $253,000 sale as soon as they learned of the house’s history, their lawyer said it was too late because they were legally bound under terms of the deal.

But the Tekoniemis decided to sue those involved in the sale of the split-level, partial-brick house, with a claim filed in the Ontario Superior Court of Justice.

Ron England, who suffered from paranoid schizophrenia, murdered his mother, Marian Johnston, 74, and stepdaughter, Jenny, 6, in the home on April 2, 1996. He stabbed his mother 34 times and the child 89 times. The little girl was left lying on the floor with a knife embedded in her heart.

The claims made in the lawsuit have not been proven in court.

The Real Estate Council of Ontario, which regulates the industry, issued a warning to Roy last month on the grounds that she “deliberately withheld a material fact known to her” regarding the murders from the buyers, contrary to the Real Estate and Business Brokers Act. The decision followed a complaint by the Tekoniemis earlier this year.

Lawyers say the case involves a grey area in common law on the issue of “duty to disclose” — and how to assess what information that entails.

If the claim proceeds to trial, it could become a test case for the doctrine of buyer beware, and whether the couple’s situation is an exception to that general rule.

As a result of continuing health problems, the couple say they want to sell the home but recover any depreciation in value from the defendants because they want proper disclosure made to any future owners.

Source & full article here: http://realtormag.realtor.org/daily-news/2012/11/21/realty-firm-agent-sued-for-not-disclosing-homes-dark-past

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Thanks for reading,

Jason Smith – Sell Your House Fast

San Diego House Solutions. Solving Problems

Do You Qualify For HARP 2.0? – Home Affordable Refinance Program

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HARP 2.0 can be a great refinance program to look into, but there are some guide lines to follow to see if one qualifies.
You may be eligible for HARP, if you meet all of the following criteria:

  • The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
  • The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
  • The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
  • The current loan-to-value (LTV) ratio must be greater than 80%.
  • The borrower must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months.The links below is where you can check the ownership of your first mortgage.

http://www.knowyouroptions.com/loanlookup

https://ww3.freddiemac.com/corporate/

Personally, you would think home owners who are behind on their mortgage, would be the ones to qualify as well.

Thinking About Doing A Short Sale? Mortgage Debt Relief TAX Extended

Originally posted on San Diego House Solutions:

 Thinking About Doing A Short Sale? Mortgage Debt Relief TAX Extended

A tax break for doing a Short Sale, also known as forgiven mortgage debt, was set to expire Dec. 31 2012 &
It was extended by lawmakers when they dodged the “fiscal cliff” last week.

The tax break on Short Sales, which has been extended to the end of 2013, allows home owners facing Short Sales, reduced loan principals, or foreclosures to avoid paying taxes on any debt still owed to the bank. Otherwise, the debt would have been taxed by the IRS as income.

Sellers who are looking into doing a Short Sale, should still consult with there tax advisors, as everyone’s situation is different.

There is also Insolvency. What if you are insolvent?
A taxpayer is insolvent when his or her total liabilities exceed his or her total assets. The forgiven debt may be excluded as well, with being insolvent, while doing a Short Sale.

There’s plenty of…

View original 43 more words

Thinking About Doing A Short Sale? Mortgage Debt Relief TAX Extended

 Thinking About Doing A Short Sale? Mortgage Debt Relief TAX Extended

A tax break for doing a Short Sale, also known as forgiven mortgage debt, was set to expire Dec. 31 2012 &
It was extended by lawmakers when they dodged the “fiscal cliff” last week.

The tax break on Short Sales, which has been extended to the end of 2013, allows home owners facing Short Sales, reduced loan principals, or foreclosures to avoid paying taxes on any debt still owed to the bank. Otherwise, the debt would have been taxed by the IRS as income.

Sellers who are looking into doing a Short Sale, should still consult with there tax advisors, as everyone’s situation is different.

There is also Insolvency. What if you are insolvent?
A taxpayer is insolvent when his or her total liabilities exceed his or her total assets. The forgiven debt may be excluded as well, with being insolvent, while doing a Short Sale.

There’s plenty of information out there on the Debt Forgiveness Act & being Insolvent.

Click here for more info:

http://www.car.org/newsstand/news/mtgdebt

I still believe Short Sales can be the best option, “especially working with the right team” when you can no longer afford paying your mortgage payment.

Saving A Seller From Foreclosure & A Realtor From Losing His Listing

Very proud of my team & how we accomplished getting my most recent short sale completed.
This distressed property was 1st listed around 250k. It needed 40k-60k in repairs & updating.

After several months on the market, the listing agent dropped the price to 220k. “Keep in mind that the after repair value was between 260-285k”, so it was listed pretty high for the work needed & for investors to make a decent return on their money.
On top of that, the garage was legally converted into living space many years ago. So that was another concern for selling the property all fixed up on the back end. There was no garage.

After several investors were bidding up this property & offering between 185k-200k, they all kept backing out, as they knew the numbers just didn’t work.

I got the phone call from the listing agent, when the property was a week away from going to auction & I had several questions for him.
I found that no one was actually on the phone negotiating with the bank & this short sale was now screwed up & needed unwound.

We immediately suggested a 3rd party negotiator, disputed the value, requested another appraisal, came out of pocket & ordered an inspection & termite reports, & now had ammo to give the banks appraiser, to show the true value of this property.

We offered 130k, knowing we had room to negotiate up, & the bank countered us @150k, & ended up settling with us @140k.

So there you have it. Short Sales can be done in a faster manner, & you can get great deals, while at the same time helping home owners avoid foreclosure & listing agents from losing there listings.

I’ve always said “Fixer Short Sales, Should Never Turn Into REO’s, When Processed Correctly”

Bob Proctor on Fantasy, Theory, Fact.

Here is an interesting concept that I have used ever since I can remember and that I have shared in my seminars for years. If you’re interested in setting a sizeable goal, I know it will help you too!

I want to talk about Fantasy, Theory, Fact. The basis for this concept is that everything has its origination in the form of a Fantasy, which some adventurous soul dares turn into a theory and then becomes bold enough to turn into a fact. This entire transition, of course, is the result of the highest form of no-limit, positive thinking available, yet, the cautious may construe this as erratic behavior.

Give this serious thought for a moment. The idea of moon landings, communicating via a fax machine, traveling on supersonic jets or wearing synthetic garments was, a very short time ago, sheer fantasy. Today, they are almost considered commonplace. Why? How did these things come about?

Fantasy
This entire cosmos is filled with thought stuff – a creative form of energy. Imagination is one of our mental faculties and it is the one we use to fantasize. An active imagination is able to build clear and vivid images. The most important step in building your fantasy is that you not concern yourself with how your fantasy is going to become a reality. Where the resources will come from is of absolutely no concern to you. Let the image evolve freely in your mind. Build the picture in color … feel it, smell it, taste it, touch it … all through the aid of your imagination.

Theory
Once you’ve built your fantasy, turning it into a theory calls for you to answer two questions: Are You Able? Are You Willing?

You could very easily be thinking, “Yes. But!” At this point, it’s important to remember that you are stepping out of your comfort zone and attempting to go beyond the limits that your old belief system dictate… and whenever that happens, doubt, immediately followed by fear, enters the picture. To be able to answer this question in the affirmative–”Yes, I am definitely able,” does not mean that you have to know how it will ha
ppen. There is no way that you could know how it will happen…you have never done it before, it’s a brand new experience. The Wright Brothers didn’t know how to fly when they fantasized themselves doing it! They just believed they could.

The second question: Are you willing? Are you willing to pay the price? Are you willing to make the sacrifices that will be required to turn your dream into a reality? And you know that there will be sacrifices. My mentor, Val Van De Wall shared with me that most people think sacrifice is giving up something. That’s not true. Sacrifice is merely releasing something of a lower nature to make room for something of a higher nature.

The minute you answer–”Yes, I am able!” and “Yes, I am willing!” … your fantasy moves to the next phase of creation and becomes a theory in your consciousness and, at this point, it turns into a goal.

Fact
The process of turning your fantasy to fact is ready to move into the final stage … fact. From this point on, it becomes a lawful process. As you turn the image over to your universal subconscious mind by getting emotionally involved with the image, the laws of the universe kick into gear and begin to turn that image into physical form. The law of perpetual transmutation takes that image and begins to move it into form with and through you. Your vibration starts to change and that causes your behavior to change. Your new vibration sets up an attractive force and begins to attract to you all things requisite to the fulfillment of the picture, through the harmonious vibration of the law of attraction. Although you have no way of knowing exactly how it will move into form, faith and your understanding of the laws will create a knowing within you that it must move into form.

This is the very process that has taken us out of the cave and into the condominium. Let your mind play. Fantasize a much better form of life than you presently enjoy.

To your success,
Bob Proctor

Appraisals Killing Deals – Appraisers Taking The Heat

An article this week at Cleveland.com tells the story of a couple who agreed to pay $218,000 for a home in the area, and were ready to close and move in. That’s until the appraisal came in at only $202,000. The seller would only knock off $4000, so the couple had to increase their down payment to fund the difference. They considered themselves fortunate to have had the extra cash to keep the deal moving.

Appraisers around the country are being criticized by just about everyone; real estate agents, builders, buyers and sellers. New rules and lender procedures are resulting in out-of-area appraisers coming in, and critics say that their lack of knowledge of the local market is causing botched appraisals. With so few buyers willing to buy in this market, and even fewer able to qualify for a mortgage, a low appraisal is the last nail in the coffin. Deals are dying when they’re badly needed to help improve the overall market.

One of the factors that contribute to these low appraisals, and isn’t understood by many buyers, sellers and even some real estate agents, is that these days appraisers must calculate and take into account the falling values of homes in the area. If an area is considered to be one where values are decreasing (most are now), then their value is reduced to take that into account. They can’t just rely on recent sold “comparables,” but must adjust based on overall market price action.

As the appraisers work for the lenders, and lenders are super-cautious these days, appraisers are being even more careful not to increase their liability for problems later from banks who might accuse them of over-estimating home values.