on February 7, 2012 by Bui thi huyen trang in Uncategorized, Comments (0)

10 Reasons to Short Sale Your Home This Year

“Short Sale” is going to be the buzzword with the new decade. In the first share of the new millennium we saw real-estate profit in the vast sums come and we witnessed it go. We saw employees using 40k salaries making 100k in real estate; we saw an in-flux of previously-only-late-night the property market gurus buying prime-time slots relating to the Simpsons & LA Law. I think I knew at the least fifteen people who owned or operated second homes in sites that made no feeling: five people who resented snow owned properties with Wyoming, Telluride, and Sodium Lake; five people who hated the heat & sunshine owned properties smack in the desert here in Scottsdale, Arizona; three more people owned second homes several blocks down from where by they lived, two men and women that couldn’t swim owned waterfront property and one person actually forgot which city & state he previously actually bought his next home in!

Now here we are entering the new decade and boy how the world has changed. We have now see foreclosures at an all time high. We see home values plummeting nationwide We see men and women that used to make six figures by June today scraping by at 30k a year if they’re lucky; high unemployment rates and reduced pay rates; even yesterday’s CEO’s are now taking your lunch get.

Foreclosures are winning the race inside real estate notoriety department today and right behind them is a elusive, slippery “Short Sale”. Although it isn’t everyone quite understands what sort of short sale works, or how it benefits the typical consumer, or the differences in short sales by lender or state, almost everyone has probably heard the term by now. 2011 and beyond is a “Decade of the Short Sale” and allow me to share 10 reasons why:

  1. HAFA Application (Home Affordable Foreclosure Alternative) : The HAFA program (or when i have sometimes un-affectionately referred to it, the HAHAHAHA program) may be the governments’ idea of “helping”. I admit that if the program works it is fantastic and I’m here to tout it’s advantages not it’s shortcomings. If you qualify for the HAFA program you could be in a world involving short sale heaven: Relocation costs paid to you (yes, get paid to do a short sale!), quick response time from your lender(s), and an agreement from your lender not to pursue you afterwards for any deficiency. A great program, with excellent benefits, if you happen to qualify. Not everyone does but this will be your first question to your real estate agent: “Do you know precisely what the HAFA program is and do you think I’ll qualify? ”
  2. Loan mod Failures – Millions were promised help and favorable loan mod terms, almost as many million were let down. The staggering stat is that of the lucky ones who did qualify for a loan modification, fifty percent of them will fail the program in the first 6 months. This however will are very effective in the favor of the short sale – with so many people not qualifying for a loan modification but still willing to cooperate with their lenders this means an increase in the quantity of people willing to short-term sell their properties and will hopefully in turn motivate the lenders to staff up their short sale department. Maybe they are able to spend a Tuesday moving desks in the loan modification floor to your short sale floor… that’s my suggestion, take it or leave it.
  3. Realtor Agent Experts – Although this one can go both ways, I’m confident that it’s going to benefit the consumer. When short sales primary became prevalent most real estate agents shied away from them; afraid of the unfamiliar, afraid of the loan companies, afraid of the dreaded “short sale”. Now that they have become such a huge part of the marketplace agents have either must leave real estate altogether or are generally forced to learn regarding the process. Many agents took it upon themselves being true specialists in this field and have taken multiple classes, found a lot of clients with upside-down mortgages, and have now negotiated many short sales and can be considered an expert. Some agents however have nodded on and off through a forty-five minute intro course, printed out a certificate from their I-Phone, and have taken to the streets as “Shirley Small Sale”, ready to blindly lead the blind heli-copter flight cliff. Find yourself an actual expert with experience, know-how, and a track record avoiding the Shirley Short Sale Agents at any expense.
  4. Lender Changes – Lenders, banks, servicers, investors, etc. have all learned that these kinds of transactions are not going away. Like ‘em, really enjoy ‘em, or hate ‘em, these entities have been forced to deal with them by the thousands or even hundreds of thousands. One bank we overcome frequently used to have four people on their short sale department back in the mid 2000′s. Without a doubt, four. They now employ over 3, 000. Although the lenders will still be overwhelmed and overworked they will at least have at least one structure and departments in position to at least attempt to deal with your needs. There’s hope that when you sit on hold for just two hours, get transferred 6-8 times, and have eight people present you with ten different answers to the same question that at the least half of those people work in the department instead of pretending they have no idea what you’re dealing with!
  5. Neighbors Took a “Chill Pill” – Neighbors were a big problem at first of this era. When everyone on the block paid $500, 000 for a homes the assumption was no one wanted to be that will guy who sold for $350, 000. People short selling their home didn’t ever want their neighbor to know and avoided contact with them at all costs. Leave the house a tad earlier than normal, come home at dark, don’t answer the entranceway. Lawns everywhere went overgrown because people didn’t want to chance cutting their yard and having their next-doors corner them! In 2011 it will be different – for many people this isn’t only a smart finance decision (and who doesn’t love to brag to the neighbors/family/associates approximately smart financial choices) but now over time in this market the stigma of being upside down is ended up. The decline is housing values can be so pervasive that even those “responsible” buyers who get 20% down are approach underwater. Here in the local Arizona, Phoenix – Scottsdale real estate market home values have declined 50%. So unless your neighbors bought prior to the height of the market or put more than that fifty percent down they’ll likely too are in the same boat as you.
  6. Real estate market Conditions – The real estate market will always exist and will be different nationally, regionally, locally. Underwater mortgage numbers may be higher in California, The state of nevada, and here in Arizona than in Connecticut, Kentucky, or Kansas but the national real estate market will affect us all. The national real estate market is not really favoring very well along with the outlook into at least 2011 is not very bright. We hope for the best but with the ongoing economy in its poor state, high unemployment costs, and lack of consumer confidence home values will continue to sputter. “Appreciation” is a word in the past and a word with the possibly-distant-future, not a word with the present. Some areas will thrive more than others and we all traumas a sooner-than-later recovery but the facts remain that a turnaround inside national real estate economy is going to take a while. In that time short-term sales and foreclosures can dominate many local & regional markets which will in turn affect the national real estate market.
  7. Taxes – The Mortgage Help with debt Act of 2007 ignited tax relief to those performing a short sale or a foreclosure on the primary residence. The Economic Stabilization Take action of 2008 extended this tax relief on the year 2012. Some restrictions apply, check with your CPA to be sure you qualify, but people who do a short sale on a primary residence through 2012 may be absolved of all tax liability. Hopefully as 2012 draws for a close we’ll see that extended but until then this window is just open for a specific time frame and that time is now!
  8. Attorneys Versed in short Sales & Foreclosures – Along with real estate agents, many attorneys are now well educated inside real estate & foreclosure laws on their practicing states. Many attorney now offer free or discounted consultations, teach workshops, and some even help Realtors negotiate these kinds of deals. Attorneys are don’t just those guys in expensive suits with the goofy commercials every 5 a matter of minutes, they’ve become mainstream, personable, together with affordable! Just like substances, not all attorneys know what they’re doing so make sure to ask around, get referrals from trusted sources, and don’t be afraid to get a second or third viewpoint.
  9. Mainstream & Morality – Professional real estate agents & attorneys do not necessarily coerce, entice, or force people to short sell their property. This is a business decision made by a client as to what’s on their best interest. Some people ought to move because of economical hardship. Some people are compelled to relocate and can’t sell their residence otherwise. Others have unanticipated medical bills, family troubles like divorce or separation, or were tricked into some ridiculous interest rate that has now doubled or tripled. These people can put food on the table or they can pay for their mortgage. What’s that gonna be? Well, if it’s the former then there are only a few options and foreclosure and short sale are two advisors. People have become more knowledgeable in the process and as the idea and concept becomes less foreign the average homeowner can make a lot more informed decision. Foreclosures usually benefit no one while a selling your home can benefit all people involved, especially the lenders. Don’t believe that? Call your lender and tell them you’ve planned to stop paying your payments and I’ll bet somewhere along the way they tell you to try a short sale. In most cases, anything but a home foreclosure!
  10. To be able to Move On – This isn’t the end, it’s a new beginning! Sticking your head inside sand and waiting for you to definitely come along and love you out is not a good idea. Maybe a short sale isn’t the answer; maybe it’s a loan mod. Maybe you turn your personal property into a rental. Or even a foreclosure may end up best. Maybe you even make the decision to stop watching this news, stop reading the cardstock, and stop reading these “Top 10 Reason” lists and you choosed stick it out for any long haul. No matter what you decide follow these steps and you can succeed: Acknowledge the situation you will be in, explore all your options, discuss your situation along with the right professionals, make a decision, stick to it, have a backup plan just in case, and go out and spend your time without stress or burden. A wiser man than me once said; “I have been given a finite amount of heartbeats and I don’t anticipate wasting even one”.





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