This is one of the most common questions I hear lately. Many homeowners know that if they don't sell their home soon, they won't be able to make the payments anymore so they want to sell before they miss a payment. It makes a lot of sense. The main thing that hurts your credit in a short sale is the missed payments. In fact, recent FHA guidelines state that a borrower is immediately eligible for an FHA insured loan after a short sale if they were current on their mortgage and other installment debts at the time of the short sale. Sounds great! You can remain current on your mortgage payments, do a short sale, and immediately buy a more affordable home. Yes, in theory you could.
Let me share a conversation I had yesterday with IndyMac. The borrowers/sellers I am representing in a short sale wanted to preserve their credit as much as possible. As soon as I listed their home I asked IndyMac if they would consider a short sale if the borrowers were current and they said yes. That's great! I relayed the message and the borrowers made the decision to continue making payments. We had a fair offer within one week that I submitted to IndyMac. When I later called to check on the status I was told that they had received the short sale package and had initiated the short sale but they were still waiting for the investor, Fannie Mae, to initiate the short sale on their end. I called back yesterday to see if it had been done and was told that Fannie Mae will not consider a short sale until the borrower is at least 30 days delinquent. Seriously? Let me see if I understand this. The mostly government owned entity that received billions of TARP dollars to help get us out of this housing mess is essentially telling people to stop paying their mortgage if they want to do a short sale. Just wait, it gets better. When working with most banks, when you submit a short sale offer, the lender will postpone the foreclosure date until the short sale has been either approved or declined. In my experience, Fannie Mae will not. If the short sale cannot be finalized prior to the auction date, Fannie Mae will foreclose -- even if the reason the short sale is not approved is due to delays at Fannie Mae! I'll write another post about the recent announcement that Freddie Mac and Fannie Mae will now participate in the HAFA program but for now, know that the other government backed entity, Freddie Mac, is requiring borrowers to be 60 days late to be eligible for a HAFA short sale.
To answer the question "Do I have to miss payments to do a short sale?" I will say you better check to see if your loan is backed by Fannie Mae or Freddie Mac. If it is, the answer is probably yes. I have heard from a few agents that they were able to get a short sale approved while the borrower was current (and the mortgage was backed by Fannie or Freddie) but it's very rare.
The states that took the brunt of the housing bust—like Florida, California, Nevada, and Arizona—also contain some of the nation's most enviable markets in which to retire. Moody's Analytics compared price-to-income data for 384 metropolitan areas to pinpoint affordable retirement spots. Bend made the top 10 for the following reasons:
"Stiff demand from second-home buyers helped nearly double median home prices in lovely Bend, Ore., between 1999 and 2006. But the subsequent real estate collapse has dragged the area's price-to-income ratio from 3.4 in the third quarter of 2006 to 1.7 in the fourth quarter of 2009. That's below Bend's average price-to-income ratio of 2 for the 15 years ending in 2003. This increased affordability makes retirement property in Bend particularly attractive today. Lester Friedman, president-elect of the Central Oregon Association of Realtors said 'Central Oregon has always been a place where people came to get away. And, of course, that is kind of the definition of retirement.' Friedman points to a number of activities that can keep seniors busy in Bend year round, including hiking, mountain biking, skiing, fishing, boating, and volunteering. 'We have wonderful college facilities, so continuing education is easy,' he says. 'You name it, we've got it."
Other cities in the top 10 include Las Vegas, Phoenix, Napa, Fayetteville, Punta Gorda, Burlington, Fort Meyers, Santa Fe, and Santa Cruz. Here's the entire article: 10 Cities for Retirement Property Steals
April stats look an awful lot like March stats. There are 1122 homes for sale, 189 contingent sales, 325 pending sales, and 187 homes sold with average days on market of 180 and a median sales price of $200,000. For bank owned homes there are 77 for sale, 75 pending, and 72 sold. The average days on market was 84 with a median sales price of $165,000. Short sales make up 208 of the homes for sale, 182 contingent sales, 101 pending sales, and 43 of the homes that sold with average days on market of 259 and a median sales price of $190,000. For the traditional sales, there are 836 homes for sale, 7 contingent, 150 pending, and 72 sold. The average days on market was 228 and the median sales price was $256,000.
View the complete statistics: April 2010
Cheri Smith, Broker, SFR
Total Property Resources
www.findbendhomes.com | csmith@total-property.com
c: 541-788-8997 o: 541-330-0589 f: 541-330-0589
I don't typically take a political stance in my blog but I strongly support an upcoming constitutional amendment being considered. Oregon does not currently have a statewide real estate transfer tax. A real estate transfer tax is a state or local government imposed tax that is collected when you transfer ownership of your home, land or commercial real estate and depending on what the law stipulates, must be paid by either the buyer or seller or split by both parties. Typically, once the tax is initiated, the rate can be increased by the state, county or city at any time. During the last 5 legislative sessions there have been 10 attempts to authorize such a tax. There is a current effort to place a measure on the upcoming ballot that will amend the state constitution and permanently prohibit the imposition of real estate transfer taxes in Oregon.
As a homeowner in Oregon, you already pay taxes on your property based on a portion of your property's assessed value. A transfer tax would impose a second tax on your home or property at the point-of-sale. This tax is imposed whether there is any equity in your home or not. Currently 36 states impose real estate transfer taxes and the tax rates range from 0.1% to 4% of the sales price. Imagine you sell your home at a loss for $300,000. In addition to your typical closing costs, you also have to pay a 1% transfer tax of $3000. Or imagine you're a home buyer with a very limited down payment. In addition to your down payment and closing costs, you also have to come up with a percentage of the sales price to cover the transfer tax.
In the current economy, many families are being forced to sell their homes because of a job loss or pay cut. With home values dropping, many are selling at a loss. It is unfair to impose additional taxes on people who are already facing severe financial hardship. Furthermore, Oregon’s housing market is struggling. A real estate transfer tax will make it harder and more expensive for people to buy or sell a home.
This measure needs more than 150,000 signatures of registered Oregon voters turned in to the Secretary of State by July 2, 2010, in order to qualify for the November ballot. If you're interested in signing in support of prohibiting a real estate transfer tax, please contact me.
Today I just want to vent. One of my short sale listings is going back to the bank, even though we had a full price, cash offer. The lender, American Home Mortgage Servicing Inc (AHMSI) approved the sale but wanted to retain their right to pursue a deficiency down the road. The sellers would not agree to the sale unless AHMSI waived their deficiency rights. In the state of Oregon, if the first lien holder files a notice of default and election to sell and chooses to pursue a non-judicial foreclosure, they have no right to a deficiency claim after the foreclosure. In this case, since AHMSI would not waive their deficiency rights, it's actually in the sellers' best interest to allow AHMSI to foreclose knowing that AHMSI cannot pursue a deficiency. I'm really frustrated because I worked really hard on this deal, the buyer was really excited about the house, and the sellers were relieved to sell the house but the lender decided foreclosure was the better option for them. The most ridiculous part of this whole situation is that the full price cash offer we got was for $89,000. By electing to foreclose, AHMSI will now incur roughly $75,000 for the foreclosure process AND there's no way they will be able to sell this house for $89,000 once they finally relist it. That makes me smile a little bit. Enjoy your new house AHMSI!
Cheri Smith, Broker, SFR
Total Property Resources
www.findbendhomes.com | csmith@total-property.com
c: 541-788-8997 o: 541-330-0589 f: 541-330-0589
I'm a residential real estate agent in Bend, Oregon who enjoys working with buyers and sellers. My priority is to ensure that all of my clients feel like they are my most important client.
The Bend, OR real estate market has changed dramatically. In order to keep up with those changes I earned the National Association of Realtors' SFR designation, which allows me to effectively help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities. If you're a homeowner struggling to make your mortgage payments, contact me to discuss your options. If you're a buyer interested in the foreclosure and short sale market, let me help you find one of those great deals everyone is talking about. I continually track hot properties in the foreclosure market in all price ranges.
I'm a member of the Luxury Property Network, a select group of area Brokers that joined together with the primary goal of more effectively marketing high-end real estate. It’s a unique collaboration between the area’s most knowledgeable and tenured Real Estate Brokers.
I'm committed to helping you buy or sell your home with the highest level of expertise in your local market while helping you to understand each step of the buying or selling process. For me, it's not about finding a house you'll like, it's about getting to know you and finding a home that fits your lifestyle. Whether you want to live near work, the hospital, or a particular school, close to hiking and biking trails, or you're looking for a neighborhood with its own pool and parks, I'll help you find it. I'm ready to commit to you, and I hope you'll let me guide you through every step of your next real estate transaction.
I'm very active in the short sale and foreclosure market. I'm constantly tracking the newly listed bank owned/REO properties and frequently post information about Bend's Best Buys. I love modern architecture and make it a point to always know what's available in all price ranges. I also thoroughly enjoy helping first time home buyers.
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