Jamie Carroll ~ S&B Real Estate Team ~ Vancouver, WA ~ Clark County

I recently found a really wonderful holiday gift idea to give to those you love and people who are important in your life. It is especially wonderful because it is practically no-cost, all it requires is your time. Think of all the people you will be giving gifts to this holiday season, and you can do this for each person. Sometimes this kind of present is even more meaningful than "stuff."

Recession-Proof Holiday Gift: First, think of the person, and of all the wonderful things you like about him or her and/or warm experiences you have shared together. Then, make a list of all the positive things you remember. Fold the list nicely and put in a box. Wrap up, and be sure to put a bow on it! When it is time to open up presents, your loved one opens the gift and reads the list.

You can also give a similar gift to yourself. Think of your life, and make a list of all the things you have to be thankful for (past and present). Wrap it up and open it and re-read the list on your special holiday.

This gift should bring happiness and love to anyone who receives it! One of the best things is, is it is something that can be kept and it can be re-read whenever needed. Happy Holidays!

In this series we've talked about what a short sale is, how they're advertised, and how offers are made and presented to the seller's lender. Today we'll finish up with the overview and discuss the implications of a short sale to the seller.

Once the seller's lender accepts a buyer's purchase agreement, they will send a Short Sale Package or Agreement to the seller. At this point a seller should consult with an attorney and a tax professional to assess the terms. Real Estate agents can NOT offer legal and/ or tax advice! While many good agents have knowledge of the implications of the short sale, it is outside of their profession and fiduciary duty to provide this type of advice to their clients. There are two main issues that must be discussed. First, some lenders require the seller to carry the "short" amount as an unsecured debt for which they are still liable. If the seller doesn't pay this debt off it could result in a judgment lien against any real estate the seller owns now or in the future. Other lenders consider the remainder of the debt to be forgiven with the successful completion of the short sale and agree to never seek payment of the forgiven amount.

Second, if the seller had taken cash out in a refinance, the forgiven debt may be considered as income for tax purposes. This would result in the seller having to pay income tax on the amount of forgiven debt. The seller will need to speak with an accountant or tax specialist about this issue. There are times when, depending on the outcome of these issues, it would be best for the seller to let the property go into foreclosure instead of selling as a short sale. The seller will need to assess the overall risks and benefits of proceeding with the short sale.

Every short sale transaction is different and there is no way to predict with certainty what a seller's lender is going to do. It is the lender that is in control in these situations and the best an agent can do is stay in close contact and stay alert to what's happening. Ultimately, if the lender doesn't think they will receive enough from the sale, it won't be approved. As we've said before, selling and buying a short sale property is a long, time-consuming, often gut-wrenching experience. A good Realtor will be able to guide you through the process and help you reach your goals. If you have questions about buying or selling any real estate, please call the JMC Group at 360-609-6775. Or go to the "Contact Us" portion of our website at www.MyRealtorIsJamie.com. We are here to help!

Lesson 1: http://activerain.com/blogsview/765054/Short-Sale-Basics-First-in-a-Series

Lesson 2: http://activerain.com/blogsview/774079/Short-Sale-Basics-Second-in-a-Series

Lesson 3: http://activerain.com/blogsview/788057/Short-Sale-Basics-Third-in-a-Series

Lesson 4: http://activerain.com/blogsview/796213/Short-Sale-Basics-Fourth-in-a-Series

Lesson 5: http://activerain.com/blogsview/827035/Short-Sale-Basics-Fifth-and-Final-in-a-Series

So far this blog has covered what "short sale" actually means, how they are advertised, and making an offer on one. Today we're going to look what goes on "behind the scenes" when an offer is submitted to the seller's lender for approval.

As mentioned before, it is the seller's lender that will ultimately make the decision on the selling price of a short sale property. They will expect to see all offers made on the property and it is not uncommon for short sales to have bidding wars on them! The lender is being asked to accept less than what the seller owes to release its interest in the property. They do this based on the representation that the property is indeed worth less than the debt the seller owes. Lenders have the right and expectation to know all the terms of all the offers being presented to the seller. It is in the lender's and seller's best interest to submit all offers received to the lender.

If a second, higher offer comes in after an initial offer is submitted the lender will most likely accept the higher offer. This reduces the risk of remaining debt to the seller if the lender demands repayment of the "short" amount. The lender is also more apt to move quickly on an offer that nets them more money. If an offer comes in that is lower than the initial offer submitted, the agent will most likely still submit the offer. The lower offer will work to ensure the lender that the inital offer truly reflects the market value of the property. Part of the service of the listing agent is to persuade the seller's lender that the true value of the property is less than the amount owed. Along with the offer(s) the listing agent will also provide the lender with a comparative market analysis, or CMA. This report further supports that it is in the lender's best interest to take a loss on the debt and sell the home for the amount being offered.

It takes patience and professionalism when working with banks and third party lenders. Remember, they are receiving hundreds of short sale packets every day from throughout the country. Your's is one in that huge stack! As we said before, patience is a virtue when it comes to buying (or selling) short sale properties and it's important to have an agent on your side you can trust to take care of you throughout the process.

OUr next installment in this series will cover the lender's approval of a buyer's purchase agreement. If you have questions in the meantime, please call the JMC Group at 360-609-6775. Or go to the "Contact Us" portion of our website at www.MyRealtorIsJamie.com. We are here to help!

Lesson 1: http://activerain.com/blogsview/765054/Short-Sale-Basics-First-in-a-Series

Lesson 2: http://activerain.com/blogsview/774079/Short-Sale-Basics-Second-in-a-Series

Lesson 3: http://activerain.com/blogsview/788057/Short-Sale-Basics-Third-in-a-Series

Lesson 4: http://activerain.com/blogsview/796213/Short-Sale-Basics-Fourth-in-a-Series

Lesson 5: http://activerain.com/blogsview/827035/Short-Sale-Basics-Fifth-and-Final-in-a-Series

So far in this series we've covered the basics of what constitutes a short sale and how they are advertised for sale. Today we'll step into the shoes of a buyer and learn a bit about making an offer on a short sale home.

Remember that "patience is a virtue" quote your grandmother used to tell you? Well, you'll want to dig up and dust off that old adage when looking to buy a short sale property! Buying a short sale can be a great way to get a "deal" on a house but the road to it can be long and bumpy. The final decision to sell the property rests with the bank that holds the mortgage, usually by someone across the country who has no idea about our local market. Banks receive 400-500 short sale packets per day so, needless to say, your offer will be one packet among hundreds. Whereas a seller typically will respond to an offer within several days, when it's the seller's lender making the decision it can take months. Yep, you read that right...months! And, unfortunately, sometimes the answer that arrives a month or two after making the offer is "No!"

The upside is that if you find several suitable properties you can submit offers on each of them. You are not bound to a single home as you would be when purchasing from a "human" seller. Then, whichever bank responds first, you can move forward on that home and rescind your other offers. Washington State has an addendum which provides two important provisions for buyers of short sale properties. One gives you the right to terminate the purchase contract at any time prior to the seller's lender's approval. The second establishes the date of "mutual acceptance" of the offer as the day the lender's approval letter is delivered to the buyer. This means you do not have to deposit earnest money or conduct inspections or appraisals until the bank approves your offer.

One more important thing to remember when making offers on short sales is that you will often find yourself in a "multiple offer" situation. In the time it takes the bank to review your offer, several more may have come in on that same property. As any seller would, they will generally accept the offer that is most likely to close and will net them the most money. That being said, make sure the offer(s) you submit are the BEST you are willing and able to do on that property. This is no time for back-and-forth negotiations!

Our next installment in this series will dip into what actually happens once an offer is submitted to the short sale lender. If you have questions about short sales, or any real estate transactions, please feel free to call the JMC Group at 360-609-6775. Or go to the "Contact Us" portion of our website at www.MyRealtorIsJamie.com. We are here to help!

Lesson 1: http://activerain.com/blogsview/765054/Short-Sale-Basics-First-in-a-Series

Lesson 2: http://activerain.com/blogsview/774079/Short-Sale-Basics-Second-in-a-Series

Lesson 3: http://activerain.com/blogsview/788057/Short-Sale-Basics-Third-in-a-Series

Lesson 4: http://activerain.com/blogsview/796213/Short-Sale-Basics-Fourth-in-a-Series

Lesson 5: http://activerain.com/blogsview/827035/Short-Sale-Basics-Fifth-and-Final-in-a-Series

This was passed around our office last week and it was such a nice story, I thought I'd share it. Unfortunately, I don't know who to give credit to! If anyone knows the story's origins please let me know!

A group of graduates, well established in their careers, were talking at a reunion and decided to go visit their old university professor, now retired. During their visit, the conversation turned to complaints about stress in their work and lives. Offering his guests hot chocolate, the professor went into the kitchen and returned with a large pot of hot chocolate and an assortment of cups - porcelain, glass, crystal, some plain looking, some expensive, some exquisite - telling them to help themselves to the hot chocolate.

When they all had a cup of hot chocolate in hand, the professor said: "Notice that all the nice looking, expensive cups were taken, leaving behind the plain and cheap ones. While it is normal for you to want only the best for yourselves, that is the source of your problems and stress. The cup you're drinking from adds nothing to the quality of the hot chocolate. In most cases it is just more expensive and in some cases it even hides what we drink. What all of you really wanted was hot chocolate, not the cup; but you consciously went for the best cups... And then you began eyeing each other's cups.

Now consider this: Life is the hot chocolate; your job, money and position in society are the cups. They are just tools to hold and contain life. The cup you have does not define, nor change the quality of life you have. Sometimes, by concentrating only on the cup, we fail to enjoy the hot chocolate God has provided us. God makes the hot chocolate, man chooses the cups. The happiest people don't have the best of everything. They just make the best of everything they have. Live simply. Love generously. Care deeply, Speak kindly. And enjoy your hot chocolate!"