Northern Virginia short sale sellers can't sell to family members. Surprised by that? You shouldn't be. Many lien holders, like Wells Fargo for instance, require that short sale transactions be arm's length. That means selling to someone you don't know.
Why do short sale lien holders impose this condition? Well, if you aren't able to pay back the amount of money you borrowed, the lien holder doesn't want you to maintain the privilege of living in the property, or the ability to buy it back at a reduced price.
I was contacted by a local short sale seller's sister recently. She wanted to buy her brother's listing and had been in contact with the listing agent about it. The listing agent strongly discouraged it, but she couldn't understand why. After all, she was a real estate investor. Why wouldn't she be able to invest in the property?
Mind you, it was a one bedroom, one bathroom condo well outside the metro Washington, DC area. Not the first property that comes to mind for an investor. If she wanted to invest, there were plenty of other, better opportunities. But, the lack of arm's length was clouding her judgement. Really, she just wanted to help her brother by buying the place....exactly the kind of the thing the lien holder didn't want to happen. The last person the lien holder wants to help is the person that just defaulted on paying the mortgage and can't repay the money they borrowed.
I advised this sister it was a bad idea to even try. In the long run, she would be hurting her brother's chances of getting a viable buyer. You see, in Northern Virginia, our MLS requires that a home be placed as CONTIGENT when a ratified contract is presented to the lien holder for short sale approval. And with Bank of America and their 120 day approval period getting longer, well, that was 120 days that her brother would be unlikely to get another offer from another buyer. So why put in 120 days to soemthing we knew had a high liklihood of not being approved.
Arm's length transactions are a must when it comes to having a legitimate shot at short sale approval. Northern Virginia short sale sellers can give themselves the best chance of success by keeping their family out of any contractual dealings. That's advice you can take to the bank!
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Short sale sellers often hear the term 1099. So what exactly is a 1099?
A 1099 is a form that reports income other than wages and salary to the IRS. As a short sale seller, what can be reported to the IRS on a 1099 is the amount of forgiven debt by a lien holder. In other words, the amount not repaid, but forgiven by your mortgage holder(s) in a short sale.
When this income is reported to the IRS, you are expected to pay income tax on the money. However, many short sale sellers find tax relief in the Mortgage Debt Relief Act of 2007, that has been extended to 2012.
When considering a short sale, please consult your tax professional for information on how a 1099 can affect you.
This afternoon I traveled down I-95 to Fredericksburg, VA where I heard Special Attorney, for the Virginia Association of Realtors (VAR), Lem Marshall speak for three hours on the topic of short sales. 
This was an event that Brokers from all over the region were invited to attend. And while I do not yet have my Broker's license, I was invited to attend as a state approved instructor on the subject of short sales.
I'll be posting in more detail a lot of what was discussed. For now, it is enough to know that I left the room more confident than ever in my own abilities as a short sale listing agent. It is utterly amazing to me that as we are facing the end of 2009, that more Realtors do not understand the simple logistics of short sales. It is also amazing to me that while the vast majority face failures in this arena of their own making, as listing agents, that they are the voices being heard when it comes to implementing policies for ALL.
It's Friday night and I'll save jumping off THAT diving board until tomorrow morning. Halloween seems an appropriate time to discuss short sale issues. Trick or treat. Perhaps that should be the new slogan for short sales nationwide.
The Northern Virginia Model Home Furniture Sale You Don't Want to Miss!!
Amazing Grace will be hosting the model home furniture sale to end all model home furniture sales. (Don't take that literally. This is just a doozy of a sale.) November 6-8, Amazing Grace will be at JK Moving & Storage in Sterling, VA. Items that will be sold come from multi-million dollar, professional decorated model homes. Upscale items is what you'll find here.
This is a rare sale where Amazing Grace will be taking credit cards and the odl standby--cash. No checks at this event! Delivery will also be available, unlike the other cash and carry events.
Here are the hours for this mega model home furniture sale:
Friday, Nov. 6th: 12p-5p
Saturday, Nov 7th: 9a-5p
Sunday, Nov 8th: 10a-4p
Directions to JK Moving & Storage are:
Take Route 66 to Route 28 North, past Dulles Airport, to Route 606 West. Go three miles and take a right on Mercure Circle. From there, watch for signs.
If you have specific questions about this model home furniture sale, or would like to be on the email notification list for area events, please contact Amazing Grace directly at amazinggraceinc@gmail.com.
Serving Prince William, Fairfax, Fauquier & Loudoun Counties as a Realtor and Short Sale Specialist. A full-time professional that can be your Trusted Advisor in your next real estate transaction.
In February 2005 I started my career as a Realtor, having no idea what was in store for me. I had graduated with a BA in Communications from George Mason University in 1993 and spent years in the newspaper and radio industries, so I was certainly stepping into an unknown world. The satisfaction I have found in my real estate career is beyond anything I could have imagined. Helping my buyers and sellers navigate the transactions that involve their largest finanical investment is rewarding each and every time.
Since beginning real estate in 2005, each year has been better than the last. Because the real estate market in 2005 was just teetering at the top before its rollercoaster dive that followed, I gained skills that many Realtors have avoided. For instance, I delved head first into the world of Short Sales and began helping homeowners who were facing foreclosure. All of this, and the skills that I learned in my previous career in media marketing, have given me an edge when it comes to selling residential real estate.
I believe strongly in education. I am active in the Prince William Association of Realtors (PWAR) Education Committee where I serve as Co-Chair. It is here that I help to further my own education, and the education of the Realtors in the Prince William County community. In November 2007 I became a GRI (Graduate of the Realtor Institute) and have become a VREB (Virginia Real Estate Board) approved instructor for PWAR on the topic of Short Sales. I am also a Technology Instructor for new agents joining the ranks of my chosen brokerage, Long & Foster.
I pride myself on my professionalism, determination and commitment to customer service. Be aware, I also have a strong sense of humor and don't enter into any transaction without it. You never know when you'll need it. Buying or selling a home is a serious matter, but it doesn't have to be void of fun.
Climbing my way up through the roughest real estate market known in recent history to become a Top Producer has given me invaluable lessons. Those lessons have become the foundation of my business and will continue to serve my clients well into the future. Whether you are a first time buyer, selling your third home, or facing foreclosure, I am here to be your Trusted Advisor.
SHORT SALES
Successful in personally negotiating and closing short sales with Wells Fargo, Bank of America, Countrywide, Chevy Chase, Capital One, HSBC, Citibank, ASC, Ocwen and more.
Certified VREB instructor on Short Sales for Virginia Realtors.
Featured in Elizabeth Weintraub's Book The Short Sale Saviour.
FIRST TIME HOME BUYERS
Patient and knowledgeable in areas that concern First Time Buyers. No first time buyer of mine ever feels rushed or that they don't know what they are signing when they make an offer.
RESIDENTIAL LISTING AGENT
My media marketing background gives me a special edge when it comes to selling your home. I know how to market your property for maximum effect to get it sold quickly and for as much money as possible.
BRAEMAR COMMUNITY EXPERT
As a resident of Braemar since 2004, and the President of the Tartan Hills Village Board of Directors since 2007, I have an insider's knowledge of Braemar and its various sub-assosications. I have been tracking Braemar Property Values since mid-2005 and the average values can be found on my website: www.nvarealestate.net.
ACTIVE ADULT COMMUNITIES
In the Gainesville, VA area we have three well-known Active Adult communities. These are communities that are designed for residents ages 55 or better. If you are thinking of buying or selling in Dunbarton, Heritage Hunt or Regency, I have the knowledge to help you.
Chris Ann, I can't express my gratitude enough! Thank you for all your communications to me on this not so fun short sale. You've been great to work with. Hui-Ling _______________________________________________ Hi Chris Ann,
_________________________________________ Chris Ann was very helpful in the purchase of my home. I would recommend Chris Ann to anyone looking to sell or buy real estate. Rebecca Livengood First Time Homebuyer _________________________________________
I can't thank you enough for helping me find a townhome in Manassas, especially since I drove into Manassas with no appointment previously arranged with you - you took my cold call and ran with it.
Within three days of having never met, you managed to understand me and my needs, and find the perfect place - in my experience, that's miraculous.
And I have never met a realtor who had their own polarity meter for checking receptacles in a home - I think that just goes to show how committed you are to getting folks not only the right place for them, but also making sure the place is indeed "right."
A million thanks.
Best regards,
Mark Gill
Dear Chris Ann:
Just a quick note to let you know how much we appreciate everything you have done for us. We had such a blast with you and can't imagine doing all of this with any other Realtor.
Heidi, Ron & Grace Warner
First Time Homebuyers
_____________________________________________________
Chris Ann was not only superb in helping us locate the house we wanted, but she was a dilligent worker prior to close.
Chris Ann was referred to me by a friend. My boyfriend and I, at the time, were looking at anything as cheap as possible, not knowing anything about real estate. She took the time to explain the difference of foreclosures, short sales, and regular sales. She worked hard at our first contract on a short sale condo that fell through. Never discouraged, Chris Ann took the time to take a step back, let us re-evaluate our needs and continue forward.
She obviously was a tremendous help to us in the market, but moreover-EXCELLENT in her customer service. She was always willing to bend over backwards by meeting us anywhere, anytime, and answered every single question we had (and believe me-we had plenty)!
We have been very happy in our new home and can't ever forget that Chris Ann was the one who got us here. We have her "sold" postcard she gave us on our refrigerator and will not take it down. It makes us proud to own a home and we owe a tremendous amount of thanks to Chris Ann for giving us that feeling. That's something we can never repay her for.
She's one in a million! I can't say enough about her.
Sincerely,
Kimberly Hessberg & Richard Hirst
First Time Homebuyers
_________________________________________________
Chris Ann:
We are so incredibly lucky to have picked you out of that haystack. We never doubted that you always had our best interests in mind. Thank you so much for all you have given to us. You are forever welcome to our home, you're family!
With Love & Appreciation,
Thuy & Jeremy Beinert
First Time Homebuyers
________________________________________________
Dear Chris Ann:
Thank you for all your help in my home search and purchase. Working with you was definitely enjoyable. You are very patient, kind, informative and pleasant.
Every time we went out to look at homes, you were prepared. You had done your homework, making what could have been an overwhelming process,easy.
You are extremely knowledgeable and enthusiastic about your job. You better believe that I will be calling you when I am ready to sell my new home and move up to another. And I will not hesitate to send my family and friends to you, as I know they will have an outstanding agent working for them
Thanks again for all your hard work.
Sincerely,
J.D. Gheen
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Chris Ann is a driven and professional real estate professional. She is extremely knowledgable about market conditions and the home buying process. Chris Ann is tireless in her efforts whether it is to help find that perfect home for a buyer or selling an existing home. She is especially good at listening to what is important to a client, so that she can be sure to meet their expectations. In every case that I have worked with Chris Ann she has not only met expectations, but exceeded them.
Laura Pullen/Prosperity Mortgage
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Dear Chris Ann Cleland,
Thank you so much for helping us find our first home! When we moved to Northern Virginia we thought that we would never be able to own a home. With your help, our dream of homeownership has come true. Some of my co-workers who graduated from college with me last year always ask, "How were you able to buy a house in less than a year of graduating from college?" My answer is, "I have an excellent real estate agent." You have grown from just our real estate agent to our friend. For that, we are grateful.
Thank you,
James & Nikki Howell
First Time Homebuyers
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Dear Chris Ann,
I want to take a moment to thank you for all that you have done. I was at a point that I felt I wouldn't sell my house. I had been through several real estate agents and I wasn't getting even one bite on my house. Then you came along with your expertise, creativity and consistent positive attitude. I started to hope again. You got people to notice and become interested in my house. Eventually it sold and now is becoming a home again.
I have to also thank you for your patience. My personal life was a big part of why I had to put my house on the market. Unfortunately, at times you were in the middle. Your mediation skills were put to good use and you went above and beyond your real estate agent role.
I can't thank you enough for what you did.
Sincerely,
Shannon Russo
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Dear Chris Ann,
You are a class act! We really enjoyed working with you and will refer anyone we know. And, of course, if we decide to buy or sell in the future we would love to have your help and expertise. Thanks again for all of your help and hard work. We'll stay in touch!
Jeff, April, Sydney & Abbey Hunt
____________________________________
To Whom It May Concern:
This letter is to acknowledge my complete satisfaction with the services that Ms. Chris Ann Cleland has provided as my Realtor in the purchase of my new home. Ms. Cleland provided current and accurate information that aided in the decision making process of selecting my new home; she was able to supply alternate options when it came to hiring a mortgage lender that saved me a whole percentage point on my loan.
She is hard working, willing to go the extra mile for her clients, and she will do everything she can to help you have a non-traumatic, minimal stress settlement. She does her homework, she does not wait until the last minutes, and you have all the information as it is occuring in the process. For a first-time homebuyer, this has proven to be an invaluable asset.
I would highly recommend Ms. Cleland for any of your real estate needs.
Most Sincerely,
Nichole Charlton
First Time Homebuyer
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Dear Chris Ann,
We wanted to thank you for all the time and effort you put into helping us find our home. As first-time buyers we were quite unsure of ourselves, as we ventured into the unknown, but you made the process so much easier.
It was especially important to us that we not feel pressured into making a commitment we were not ready for or comfortable with. Although you understood the necessity to act fast in this crazy market, you also understood the enormity of the decision that we had to make and you respected our hesitation and our excitement.
We were lucky to find you and will keep you mind should our friends or family require a realtor in the future. We will be calling you in a few years when the time comes to sell our "starter" home and move on up!
All the best,
Karen & Pernell Disney
First Time Homebuyers
Dear Chris Ann,
THANK YOU!!!! You made this move so much easier than we ever expected it to be. From selling our home within three days, to finding packers for our truck (at the last minute), playing "Catopoly" with our kids, to all the other little details done behind the scenes that made this move go so smoothly. THANK YOU again and again.
Your professionalism, attention to detail, understanding of the stress of moving, and your willingness to go the extra steps are the reasons that you are so much more to us than the realtor who sold our house.
You are the perfect person for home sales and we expect to see you as number one in your area in no time at all.
Sincerely,
Carolyn Dikranis & Dona Leith
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