Emotional, not just a financial matter anymore; what Short Sales entail.
Emotional, not just a financial matter anymore; what a Short Sale/distressed property entail.
First we must define what a short sale is, a distressed property. Once we can define a distressed property we can properly address a Short Sale. A distressed property could be in poor condition (in need of repair), a property soon to be processed to a foreclosure status, and most of all a home in which the mortgage obligation exceeds its current market value; many times forcing the owner to sell their home out of necessity.
Clearly defined, we can state that a Short Sale must prove a hardship, being “underwater,” is NOT a substantial reason to list the home as a Short Sale. 
How a person gets to a point of wanting to Short Sale their home can happen for varying reasons; divorce, separation, death, loss of employment and/or income, loan resets (basically the payment increases; many of this loan were subprime loans, or to the consumer, called “High Risk Loans”), missing mortgage payments due to injury, etc. We could expand on the various reasons as to why someone would want to Short Sale their home.
Financial distress is apparent, but no one ever speaks of the emotional ride that so many homeowners face. Face it, the sub-prime market created a false market as to who could buy. Like a band of little kids running into a candy store, many ran into the market, snatching up a home they could not afford, or several for that matter. I can vouch that many of this consumers where subjected to predatory lending, and over priced homes due to demand. Burning money as I call it, when you pay out more in interest than principle, can be quite annoying; when a home isn’t worth what you paid, it can be infuriating. Short Sale can be the last thing on your mind!
Awaking to a home that you can not afford is very stressful in itself. The hardest part is to ask for help; we as people DO CARE as to what their neighbors, peers, and family might say or think if they are about to lose their home. Many times, there seems to be little hope as to EVER thinking one can climb out of such a disastrous emotional and financial stress. Denial and hoping that the bank will “work” with you on a loan modification, can be very discerning; including if the bank denies the modification and the client stops paying their mortgage. Nevertheless the disparity of the whole situation can cause many homeowners to feel self-doubt, depression, anger, grief, fear, and physical pain, the thought of walking away, rather to Short Sale is very tempting. 
What realtors need to understand is that we are not here to judge, and to also inform the seller that every 5 homes will rather face a Short Sale or go into foreclosure. Realtors are called to problem solve, and make a sale, not to judge why a client needs to Short-Sale their home. 
My goal as a realtor is to make my clients see that there is a light at the end of the tunnel and to put this emotional nightmare behind them. Hope is alive, being courageous and asking for help from a certified distressed property expert (as like myself), can be the first step to regaining peace of mind and financial freedom. 
Get you family back to a path of happiness.
Raiza Schwartz
Certified Distressed Property Expert
First Time Buyer Consultant.
 |
|||||||||||
|
February 2011 Market Update Gradual improvement in the housing market continues at a steady pace without government support. Six months after two consecutive years of tax incentives for buyers; starting in July 2008 with a $7,500 repayable first-time buyer tax credit, extending to a $8,000 nonrepayable first-time buyer tax credit in January 2009, and ending in June 2010 with the expanded credit to repeat buyers; the market has shown remarkable improvement from the initial drop this past July. With mortgage rates remaining near historic lows and home prices having generally stabilized, economists are expecting further strength in 2011. Consumers are showing some signs that they’re feeling better: a significant boost in the food and services industry implies they are eating out more, vacations are back on the rise as spending on travel and tourism increased 8% in the third quarter, and household net worth has risen notably thanks to a strong stock market even as they continue to shrink their debt. As the economy improves, current stimulus efforts by the government and the Federal Reserve Board are expected to gradually wind down, which typically means rising interest rates. Meanwhile, buyers continue to benefit from historically favorable buying conditions and sellers enjoy increased stability in the market. Home Sales in millionsThe uptrend in existing home sales activity continued through December, increasing by a substantial 12.3% from a month ago. This marks the fifth monthly increase in the past six months and indicates a recovery that’s gaining a firmer footing. While home sales remained 2.9% below the level seen last year, the market’s upward momentum, despite the absence of the tax credit, is a welcoming sign.
Home Price in thousandsHome prices softened in December: median home prices edged down slightly to $168,800, 1% below the year-ago level. Contributing to this is a larger share of distressed homes sales which accounted for 36% of sales in December. This is compared to 33% in November 2010 and 32% in December 2009. Prices continue to hold steady and mortgage rates remain historically low, offering favorable buying opportunities.
Inventory- Month's Supply in monthsThe surge in home sales and a shrinking inventory pared down the month’s supply to 8.1 months. This is down 1.4 months from November but remains 0.9 months above last year at this time. While still at a relatively high level historically, months of inventory has declined steadily from its peak of 12.5 months in July and is now back to pre-tax credit expiration levels.
Source: National Association of Realtors - December housing data released Janurary 20.Interest Rates Mortgage rates are inching up but remain historically low. This trend continues to support home buying, as it translates to significant savings for buyers. As overall economic recovery remains on track, rates are expected to rise to keep inflation in check.
Source: Freddie Mac, Rates as of Feb 7 .This Month's Video
Topics For Home Owners, Buyers & Sellers
|
Contact me, your local real estate expert, for information about what's going on in our area.
|
||||||||||
 |
|||||||||||
Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed in This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate. |
A knowledgeable Realtor; If buying or Selling. Ahwatukee Arizona, Phoenix Arizona
If Buying or Selling, why you need a Realtor!
A licensed real estate professional provides much more than the service of helping you find your ideal home. Realtors® are expert negotiators with other agents, seasoned financial advisors with customers, and superb navigators around the local neighborhood. They are members of the National Association of Realtors® (NAR) and must abide by a Code of Ethics and Standards of Practice enforced by the NAR. A professional Realtor is your best resource when buying your home.
Raiza wants nothing more than the best interest of the client. Raiza believes in continuing education as a Real Estate agent in order to attain the upmost fudiciary duties to every single client she encounters. With a past history as a loan originator, Raiza knows exactly what her loan officers can provide for her clients; the upmost detailed explanations and customer service to her clients. Her loan officers ensure exceptional servicing and follow the best business practices in the industry. One other exceptional service is her vast knoweldge of technology and marketing, in addition to working with a partner; so you know you will always be provided exemplifiable customer service.
A knowledgeable Realtor; If buying or Selling. Ahwatukee Arizona, Phoenix Arizona
Raiza is a member of Sevrar (South East Valley, Regional Association of Realtors), NAR (National Association of Realtors), and attains her certified designation as a CDPE. A CDPE is one of the top presitious designations in this market; as a Certified Distressed Property Expert Raiza can help you save your home or even keep you in your home. In addition, Raiza is a designated First Time Buyer Consultant; she will walk you through your first purchase every step of the way.
Raiza is dedicated to community involvement with her children and volunteering for community and work events. Proud to be part of one of the top real estate firms in the South Western Region, Keller Williams Realty!
LET RAIZA BE YOUR GUIDE
A knowledgeable Realtor; If buying or Selling. Ahwatukee Arizona, Phoenix Arizona
• A knowledgeable Realtor can save you endless amounts of time, money, and frustration.
• A knowledgeable Realtor knows the housing market inside and out and can help you avoid the “wild goose-chase.”
• A knowledgeable Realtor can help you with any home, even if it is listed elsewhere or if it is being sold directly by the owner.
• A knowledgeable Realtor knows the best lenders in the area and can help you understand the importance of being preapproved for a mortgage. He or she can also discuss down payments, closing costs, and monthly payment options that suit you.
• A knowledgeable Realtor is an excellent source for both general and specific information about the community such as schools, churches, shopping, and transportation—plus tips on home inspections and pricing.
• A knowledgeable Realtor is experienced at presenting your offer to the seller and can help you through the process of negotiating the best price. By bringing objectivity to the buying transaction, Raiza can point out the advantages and the disadvantages of a particular property.
A knowledgeable Realtor; If buying or Selling. Ahwatukee Arizona, Phoenix Arizona
ª According to the J.D. Power and Associates 2010 Home
Buyer/Seller StudySM, Keller Williams Realty, Inc., the third largest real estate company in the
United States, has received the highest overall satisfaction ratings from home buyers among
the largest full-service real estate firms for the third year in a row. The company also ranked
Second among home sellers in the study for the second year in a row.
Arizona monthly market Real Estate report for sellers and buyers, Phoenix Arizona, Ahwatukee Arizona
Below you will find the Arizona Monthly market Real Estate report for seller and buyers. I feel as a individual thinking about listing your home, you need to know what is going on in the market as well for any on considering buying a home.
NOTE; definition for REO: (Real Estate Owned; Property which is in the possession of a lender as a result of foreclosure or forfeiture)
The average sales price analysis; Arizona monthly market Real Estate report for sellers and buyers.
Sellers:
After an increase in the average sales price in October, November saw a 3.06% decrease to $165,108.00. This is the LOWEST average sales price in the 36 month reporting period. Continue to watch this graph to see how interest rates, inventory, and the evolving lender requirements impact this price.
Buyers;
For buyers, this means the average buyer paid less for the home in November than at any time in the past 36 months. This is an indicator that great value is still in the market…and that buyers are actively purchasing these homes. Find time now to meet with your Real Estate professional to learn why this could be the very best time for YOU to buy.
New Listing Analysis; Arizona monthly market Real Estate report for sellers and buyers
What is my waiting period after a Post Foreclosure, Short Sale, Bankruptcy, and Loan Type? Phoenix Arizona, Ahwatukee Arizona
Many former home owners who have filed bankruptcy, experienced a short-sale or foreclosure, often email as to when they would qualify for a home loan again. This is a very important topic, many times when clients ask this question; they come into frustrating answers that are vague and non-factual. I hope to address these topics.
The steps to owning again will be contingent on what I call, The Waiting Period Factors. 
These factors are as follows:
Below you will find a matrix of the Waiting Periods (this matrix is subject to change at any time). For example, Fannie Mae will allow someone to purchase again in two years if they went through a short sale and have 20% down as a down payment. FHA (Federal Housing Administration) will allow someone to use FHA financing in three years if they went through a foreclosure or short sale.
FHA also has extenuating circumstances in which if someone went through a short sale and never missed a payment they may purchase immediately with FHA. Many times this is due to the market, not everyone who experiences a short-sale is delinquent, many times a relocation of employment forces a homeowner in a bad market to Short Sale their home due to a upside down market.
What is my waiting period after a Post Foreclosure, Short Sale, Bankruptcy, and Loan Type?
APPENDIX A
WAITING PERIOD MATRIX FOR POST FORECLOSURE, SHORT SALE, BANKRUPTCY, AND LOAN TYPE
|
Occurrence |
Fannie Mae |
FHA |
VA |
USDA Rural |
Jumbo* |
|
Foreclosure |
7 years from completion date |
3 years from completion date |
2 years from completion date |
3 years from completion date |
5-7 years from completion date |
|
Short Sale |
2 years with Max 80% LTV ratio 4 years with max 90% LTV ratio 7 years LTV per eligibility matrix |
3 years from completion date
**Per FHA ML 09-52, FHA financing can be obtained in less than 3 years under certain conditions.* |
No specific information on this yet, assume foreclosure rule of two years |
3 years from completion date |
5-7 years from completion date. |
|
Chapter 7 Bankruptcy |
4 years from discharge or dismissal date |
2 years from discharge date |
2 years from discharge date |
3 years from discharge date |
4-7 years from completion date |
|
Chapter 13 Bankruptcy |
2 years from discharge date 4 years from dismissal date |
1 year of the payout must elapse and payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage |
1 year of the payout must elapse and payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage |
3 years from discharge date |
4-7 years from completion date |
***Waiting period time frames may be less in situations with extenuating circumstance. *Jumbo waiting periods may vary by lender.
Rev. 10/2010
If you have any further questions, or need expert advice please contact me.
As a realtor, Raiza wants nothing more than the best interest of the client. Raiza believes in continuing education as a Real Estate agent in order to attain the upmost fudiciary duties to every single client she encounters. With a past history as a loan originator, Raiza knows exactly what her loan officers can provide for her clients; the upmost detailed explanations and customer service to her clients. Her loan officers ensure exceptional servicing and follow the best business practices in the industry.
Raiza is a member of Sevrar (South East Valley, Regional Association of Realtors), NAR (National Association of Realtors), and attains her certified designation as a CDPE. A CDPE is one of the top presitious designations in this market; as a Certified Distressed Property Expert Raiza can help you save your home or even keep you in your home. In addition, I am also designated as a First-Time Buyer Consultant (FTHBC).
Raiza is dedicated to community involvement with her children and volunteering for community and work events. Proud to be part of one of the top real estate firms in the South Western Region, Keller Williams Realty!
I specialize in first time buyers, listing traditional properties, and distressed properties going into pre-foreclosures.
Raiza,
Thank you so much for showing us the rental homes today. You really did a great
job of finding houses in good condition. We narrowed it down to the Amberwood
home and the Cathedral Rock home, but we were afraid the trucks coming in the
morning to deliver to Safeway would wake Kelly up as she is a light sleeper. The
floor plan on the Amberwood home was great although the location is a bit
further east than we hoped for and the backyard is "low maintenance", we think
it will work best of all the homes we saw. We have printed the application and
will drop it at the management companies mailbox on Sunday or Monday. If you see
any additional properties you think we may be interested in, please let us know.
Many realtors don't want to take the time helping renters but we will be sellers
and buyers in the future and will definitely recommend you to anyone looking for
a home.
Regards,
The Lerches
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2012 ActiveRain Corp. All Rights Reserved
