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Will I have to sign a promissory note if I do a Short Sale?

11-19-09
Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc
Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc: Real Estate Brokerage in Poinciana, FL
  • view my blog
  • Office: (407) 870-9003
  • Mobile: (407) 873-2747
Floirda Short Sale Broker www.CentralFloridaShortSales.com

Possibly. I have found that more times than not the Seller is not only willing to but wants to make a cash contribution or sign a note to get the deal done. It helps them to feel better about their situation. Most people WANT to pay their bills and honor their obligations

Our job as your Short Sale Agent is to give you, the Seller, the facts and let you make the decision.

Here are two responses recently received from Bank of America and how they were presented to my Sellers.

What Bank of America is really saying is "Yes we approved your Short Sale request now let's work out the details". This is the response we want. Right?

CASE #1

In response to your counter offer, BofA will not budge. They rejected your offer of $500. Below are the 2 options they have given.

OPTION 1: total proceeds of sale toward the 2nd $7,500.00 Can be any combination of proceeds of sale AND 'cash contribution.

OPTION 2: $3,000 proceeds of sale PLUS new deficiency note for $5,000.00, payable at $150.00 each , 0% APR.

We already have $2,350 to give to the 2nd so subtract that from the $7,500 figure leaving $5,150 needed for the first option and for the 2nd option it would require $650 cash and a note for $5,000. The notes are soft which means they have zero interest and they are unsecured.

Now we could try to get the buyer up higher. Although I personally feel this may cause an appraisal issue with their mortgage. The note could possibly be negotiated for a longer term, say 5 years. That would make the payment $83.33. They may even go 7 to 10 years.

Please consider your options and let me know. We need to give them a response no later than tomorrow.

 CASE #2:

I have just received an email from BofA. They are asking you to contribute either $3,000 cash at closing or they want you to sign a $10,000 soft note. The note would be interest free. I would think they would be willing to go either 5 or 10 years. on the note. 5 years would have a payment of $166.67 per month and 10 years would be 83.33

What are you thoughts? The other items are things I would take care of. Please let me know as soon as possible as time is of the essence.

***I am not an Attorney and cannot give legal advice. You are advised to seek competent legal and tax advice. Any decision you make may have negative repercussions.

Now I don't know what these particular Sellers will decide. They may accept the offers or they may want to negotiate. Once they decide I will act accordingly. I do feel that both of these Short Sales will get closed. Any questions?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

Florida Property search

Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://CentralFloridaShortSales.com

http://ShortSaleSuperStars.com

Are you a Florida REALTOR(R) looking for a change? Check it out.

CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved

11 Comments
Blog_tag

FHA and USDA Buyers are NOT 2nd class citizens! Or are they?

11-17-09
Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc
Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc: Real Estate Brokerage in Poinciana, FL
  • view my blog
  • Office: (407) 870-9003
  • Mobile: (407) 873-2747
www.CentralFloridaShortSales.com

FHA Buyers, at least in my market, are normally placing the minimum amount down, 3.5%, and asking the Seller to pay 6% towards their closing costs. In a market where 87% of the sales are distressed properties, FHA Buyers, in the eyes of the Seller, are second class citizens.

It's not only difficult for FHA Buyers to find a property and get an offer accepted but....they pay more. That's right, the folks who can probably least afford it have to pay more to get a home.

Here are some stats I pulled today that will back up that statement.

During the period 1 October to 17 November 2009 there were 162 single family homes that sold  in the Neighborhoods of Poinciana Villages. 30 of these were purchased using FHA financing. 


***Check out this little chart:


 Beds
 Baths
 Sq Ft
 List Price
 Sold Price
 Price/Sq Ft
 LP/SP
FHA
 3
 2
 1821
 $76,280
 $78,880
 $43.73
 104%
Others
 3
 2
 1847
 $70,267
 $70,404
 $38.63
 101%
Difference
 NA
 NA
 (26)
 $ 6,013
 $ 8,476
 $ 5.10
    3%
 
***Data pulled from the Mid_Florida Regional MLS on 11/17/2009 and is deemed to be reliable.
So what do you think about that? FHA Buyers are getting less house and paying 11% more. Even if you take out the 6% in closing costs assistance FHA Buyers are still paying 5% more....for less house.

Should FHA Buyers be treated like second class citizens? I don't think so. Maybe Sellers Lenders should have more incentive to help these folks get a home without having to pay more than others. OR...maybe Buyers need to save more money before getting into the housing  market.

What say you?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

 

Florida Property search

Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://CentralFloridaShortSales.com

http://ShortSaleSuperStars.com

Are you a Florida REALTOR(R) looking for a change? Check it out.

CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved

 

 

 

22 Comments
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Florida Foreclosures. Be prepared to pay higher than asking price

11-15-09
Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc
Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc: Real Estate Brokerage in Poinciana, FL
  • view my blog
  • Office: (407) 870-9003
  • Mobile: (407) 873-2747

Florida foreclosure stats

How many times have you heard "I want to buy a foreclosure so I can get a deal" and "I was told I could buy foreclosures for 20% less than asking price"?

I hear these things every day. It's frustrating when you try to explain the "market" to potential buyers and they don't listen to you. I'm sure they figure that all we are really doing is trying to sell them. Well they are right. We do want to sell them a house. BUT...we also want to make sure they get  the house they want and are able to buy a house.

In my market, Kissimmee Florida, the well priced foreclosures are flying off the shelves. It is imperative that buyers understand the market or they'll end up without a property at all.

So....hopefully this article will help you to understand the market in my area. As you can see, there were only 21 REO (foreclosures) properties that sold in Poinciana Florida between 1 October and 14 November 2009 that fall within these parameters:

  • Built in 2000 or later.
  • At least 1500 sq ft living area.
  • Priced less than $65,000.

Of the 21 sales only FOUR sold for less than the asking price. The average was 110% of asking price. That means a house priced at $60,000, on average, sold for $66,000. This means if you are looking for this style of property offer at least asking price and be prepared to go higher.

Knowing what a property is worth will make it easier to prepare an offer that will be accepted. That's where we come in. Does this help?

Here a list of the properties used for this report with their asking prices and selling prices. Check it out.

Florida Foreclosure Report

 

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

 

Florida Property search

Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://CentralFloridaShortSales.com

http://ShortSaleSuperStars.com

Are you a Florida REALTOR(R) looking for a change? Check it out.

CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved

 

10 Comments
Blog_tag

Another Kissimmee Florida Short Sale Approval

11-13-09
Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc
Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc: Real Estate Brokerage in Poinciana, FL
  • view my blog
  • Office: (407) 870-9003
  • Mobile: (407) 873-2747

 

It only took 7 months BUT we have another Bank Of America Short Sale Approval.

Location:

  • Kissimmee Florida.

Details:

  • Went pending on April 17th at $79,000 all cash Buyer.

Mortgages:

  • $188,000 owed on the 1st Mortgage with Bank of America.
  • $25,000 owed on the 2nd with Real Time Solutions.

Challenges:

  • Keeping the Buyer on board for almost 7 months.
  • The 2nd started out with Bank of America and was sold to Real Time Solutions about 5 months into the transaction.
  • The Seller is an investor than owns multiple properties.

Outcome:

  • Bank of America netted $69,000 (37% of what was owed).
  • The 2nd received $3,000
  • Only $500 cash contribution required from the Seller.
  • NO note
  • Happy Seller. Happy Buyer, Happy Agents

 

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

 

Florida Property search

Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://CentralFloridaShortSales.com

http://ShortSaleSuperStars.com

Are you a Florida REALTOR(R) looking for a change? Check it out.

CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved

 

17 Comments
Blog_tag

Bank of America Short Sale Approval!!

11-04-09
Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc
Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc: Real Estate Brokerage in Poinciana, FL
  • view my blog
  • Office: (407) 870-9003
  • Mobile: (407) 873-2747

Short Sale broker

Hi folks, Miracles do happen. After many months of phone calls, updating documents and keeping the buyer on track we finally received an approval to close on a Bank of America Short Sale.

Only one small issue........they approved the wrong Buyer and the wrong contract!!!

So, we start over.

I love Short Sales. I really do. There can be no other reason that I would deal with this crap day in and day out.

Need help with your Florida Short Sale? www.CentralFloridaShortSales.com

Florida Property search

Bryant Tutas
Broker/Owner
Tutas Towne Realty, Inc
Licensed Florida Real Estate Broker
http://CentralFloridaShortSales.com

http://ShortSaleSuperStars.com

Are you a Florida REALTOR(R) looking for a change? Check it out.

CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved

26 Comments