Posted on 2. November 2011 02:28 by qmiskini

 

Last week we spent a full day with nearly 200 of the top REO sales and marketing teams from across the USA listening to the collective thinking of eight of the top asset managers from six asset management companies representing billions of dollars of foreclosed properties for both large and small banks and investors.  The information they shared was a stark commentary on the state of the housing market today and their best prognostication of the market to come.

They described the huge backlog of “grey or shadow inventory,” perhaps as many as 6 million mortgages in default or eminent default still to come to the market.  That number in itself is more than 10% of all mortgages nationally.  If the market is depressed today, imagine what would happen to the housing market and home prices if all these defaulting mortgages were foreclosed at once.  A huge quandary for banks and investors holding these defaulting mortgages: How to clear the inventory from their balance sheets, which hurts their financial health, without crashing the housing market.

Although it seems like a large portion of the resale housing available for sale today are foreclosed homes, a rising percentage of the distressed properties for sale in the Metro Atlanta market and across the country are short sales. These are properties whose mortgages are in default and whose owners are attempting to sell and also work out a settlement with their mortgage holder to repay less than what is owed and have the balance (called the deficiency) forgiven.

For sellers of short sale properties this is still, although a good alternative to foreclosure, a tough row to hoe.  Banks, investors and the asset management companies hired to manage the short sale negotiations are still woefully understaffed.  Processing and procedures vary widely from bank to bank, and federal and local regulations and restrictions on how Realtors can represent sellers in short sale transactions are restrictive and inhibiting.  Not a pretty picture out there.

The bright side of this gloomy picture is that industry professionals recognize what a mess the market and the process to clear out the glut of defaulting mortgages is.  But there is much work to be done to stabilize home prices and allow the housing market to help lead the nation out of economic distress.

As Realtors, the more we know about how to navigate the unclear and turbulent waters of marketing and selling short sale and foreclosed properties, and the sharper our understanding of the internal systems of lenders and asset managers when negotiating sales for our distress sale sellers and buyers, the clearer the housing picture will become.  Taking many months to unsuccessfully negotiate a short sale transaction only to see the property go to foreclosure helps no one.  Learning how to successfully bring a short sale offer to a defaulting seller’s lender and thread the eye of the needle in order to get the sale approved, clearing one by one the backlog of distressed homes from the market, can only speed up change in this otherwise dismal residential housing environment.

At the end of the day, it may well be educated and adept Realtors and their Teams, who have become expert at guiding defaulting sellers and bargain hunting buyers through the process, who will clear out the defaulting inventory and bring the market back to health.  We can help distressed home owners find financial relief, and help buyers anxious to find a good opportunity at the bottom of the market to find the “perfect home,”  stabilize neighborhoods, and do our part in forging a path toward economic recovery.

Until then, there’s is no telling how long this tough market will continue.

Remember… 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.