Posted on 21. September 2011 02:40 by qmiskini

 

 

Managing expectations is one of the most important tasks in delivering a successful short sale.  I say delivering because it almost feels like giving birth.  Over the past year a number of “safeguards” created to protect the consumer from unscrupulous real estate practitioners like MARS and the Georgia SAFE Act have added to the complexity of the process.  So whether you are a short sale Buyer in Marietta, or a short sale seller in Alpharetta, the Realtor you select to help you conclude a purchase or sale MUST be thoroughly familiar with the increasingly complex short sale process.

First and foremost all parties must understand that the time it takes to complete a successful short sale can be double, triple or quadruple the time it takes to conclude a retail sale or even a bank foreclosure (REO) sale.  There are some transactions that take even longer! Here’s a just a sampling of the real world tasks and issues that must be executed and solved, and the hurdles that have to be jumped.

The HAMP and HAFA programs set up by Congress and managed through HUD to help struggling home owners modify their loans or to assist short sale sellers in completing their sales are, for the most part, a failure.  It is not mandatory for lenders to even participate in these programs.  No question there are some homeowners who have modified their home loans, or benefited from the move-out program.  But most, like two recent clients who tried to modify their loans themselves with their lenders ended in failure. They spent months being passed from customer service person another, were repeatedly told their files didn’t exist, were lost, were wrong, and after all those months were ultimately turned down for modification or offered a modification program that was worse than the payment plan they started out trying to modify.  One fought the system right up to a week before foreclosure and lost their home having been told that they made too much money to modify.  A totally incorrect conclusion by the Lender but received too late for the home owner to take any other course.  The other pulled out of the process after a year with the same experience and no results, but did have sufficient time to place the home on the market as a short sale and his Realtor and short sale Team are working to complete sale approval with his Lender.

Even with a very experienced Realtor and the Realtor’s short sale Team, concluding a short sale is no easy task.  In addition to all the carefully crafted and targeted marketing that must be  done to expose the property to the right Buyers, the added burden of getting a reasonable and acceptable offer and hoping that the Buyer’s expectations are correctly managed by the Buyer’s Realtor, complicates the offer, negotiation, sale and closing process.  There are many excellent Realtors who have learned through tough experience how to navigate the stormy seas of a successful short sale.  But there are many who are woefully unschooled. They may have participated in one or two unsuccessful short sales and have no idea how to guide their Buyers through the process.  As a Buyer, if you think purchasing a short sale property can net you the best deal, be sure your Realtor thoroughly understands the short sale process before you start your dream home search.   Remember, the Seller wants to sell you their home… but is not in control of the process.  Their Realtor better be schooled, experienced and savvy or the sale process with the Seller’s Lender will fail.  Lose-lose.

Buyers must keep in mind the Sellers are losing their home.  They are under a lot of stress.  They have no control over a difficult situation, are being continually harassed by their lender’s customer service department or foreclosure department despite the fact they have a short sale in process in the short sale department.  They receive letters and phone calls regularly from disconnected clerks, lawyers representing the Lender, or collection companies representing the Lender (or the Investor in the background that actually holds the mortgage,) asking the Seller to pay up, make a deal.  When the Seller explains they are working on a short sale with the lender’s short sale department and ask “why don’t you know this, isn’t that information in your system,”   they are told it will be noted.  Then three or four days later another person calls and the same conversation starts all over again.

You would think after several years of short sale processing, the many lenders and investors who own or buy defaulting mortgage packages at discount prices in order to successfully profit from a sale would have developed a coherent system for short sale processing.  Unfortunately, for the most part they have not.  At the same time, with short sales having become such a large segment of the residential home resale market you would think Realtors would have learned how to correctly manage and execute a sort sale and manage their Buyers’ and Sellers’ needs and expectations.

Whether you are buying or selling a short sale property, the process is arduous, often disjointed and not always pleasant for either party.  So a word of caution, because with the right Team assisting you, your short sale can be successfully completed with a minimum of added stress.  When choosing a Realtor to guide you through the short sale process, be sure they are well schooled, experienced and backed up by a Team that has the track record of successfully closing short sales.  If they do, helping you through the process by both correctly executing each of the many added steps in the sale process and helping manage expectations with all parties will get the short sale job done.

Because selling or buying a home is a process and a journey, not an event, you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series. 

If you just want to see what other homes in your area are selling for by searching the MLS CLICK HERE =èSEARCH THE MLS FREE

Or contact us directly for free, no obligation information at info@TMTRealtyGroup.net

 

 


Posted on 16. September 2011 03:04 by qmiskini

 

Nearly every “great deal” distressed property for sale comes with strings attached.  That’s because it’s not just the home that is “distressed.”  It is the seller and the selling situation that is distressed.  So, before starting your search for your great deal distress sale property, whether it is in Marietta, Alpharetta, Roswell, or anywhere in the Atlanta Metro area, be sure you select a Realtor who is well educated and experienced in representing Buyers in distress sale transactions.  These types of sales can easily become distressing for the buyer as well as the seller if both Realtors in the transaction are unfamiliar with managing this specialized purchase and sale process.  They can be great opportunities for a buyer, but closing a distress sale transaction takes skill as well as patience.

A distressed property can be a foreclosed home owned by a Bank or investor.  It can be a short sale, sometimes referred to as a “pre-foreclosure” property.  It can be a home being sold because of a divorce, or an estate owned property.  No matter the condition of the property - and they can range from neat, clean and in move-in condition to smelly fixer-uppers or even total rehabs - as the Buyer, you must view both the property and the sale from the point of view of the seller, or you will have a really difficult and unpleasant experience when trying to actually buy and close on a distress sale transaction.

Here are some of the “strings” attached that must be either tied into neat bows or removed altogether in order to have a successful distressed property sale for one of the fastest growing categories of distress sale purchases, the short sale.

A short sale property is one in which the Seller can no longer afford to keep the home and is asking their lender, or lenders (often a home will have more than one loan that must be satisfied) to accept a loan payoff amount that is less than the seller owes and forgive any deficiency (the amount not paid back by the seller at closing) allowing the sale to close with no further debt burden for the seller. There are many reasons why a seller must short sale their home including job loss, divorce, personal or family illness resulting in extreme financial distress… and intense personal distress.   Although the home may be in good condition remember, the sellers are definitely in distress.  These homes are usually sold in “As-Is” condition with a variety of special stipulations and sale conditions.  The time frame to close a short sale transaction can range from sixty to ninety days on the quick side to many, many months.  Many of these homes can be purchased at below fair market prices. A great deal!  But unless the Buyer is willing to wait for the seller’s lenders to assess the short sale request, assess your offer and make a decision about whether to even accept the short sale vs. foreclosing on the property, making an offer on a short sale property can be an exercise in futility. 

From the seller’s point of view, when a Buyer loses patience and pulls out before the short sale negotiation with their lenders can be completed, it often kills the seller’s chances of finalizing a short sale and they lose the home to foreclosure.  From the Buyer’s point of view, if the seller’s Realtor fails to keep the buyer updated and informed, even if there is no progress to report, the absence of information scares buyers who come to believe nothing is happening or will ever happen, and prompts them to rescind their offer before the seller can complete the short sale work to close the sale. Lose-lose.

If buying a sort sale property offers the best opportunity for a great home that may need nothing more than some TLC, be sure the Realtor you choose to guide you through the process has experience, patience and tenacity to help you walk knowledgeably through this often difficult but usually rewarding purchase process.

There are many excellent opportunities to purchase a distress sale property.  This Distress Sale video series will help you choose which type of distress sale property is best for you.

For access to a complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home purchase whether it is a distress sale property, retail sale or new home construction, you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE BUYER VIDEO EMAIL SERIES in the subject line. 

If you just want to start out by searching the MLS to see what types of distress sale homes are available in your projected price range and area of preference CLICK HERE =èSEARCH THE MLS FREE

When searching, remember: Distress Sale property purchases require patience and focus.