Joseph Cacciapaglia

One of the questions that I've heard over and over again from buyers is, "Why would I want to waste my time trying to buy a short sale when there are so many other homes on the market?" This question often comes from buyers who have heard that these transactions can take 6 months to a year to complete, and rarely if ever actually close. While this may be true of many short sales, it is not the norm when a local team of professionals is working on the transaction. The one thing that I would always recommend to my buyers is that they only purchase a short sale where the seller has an attorney working on their behalf. That's right to protect my buyer, I want the seller to have an attorney, and not just any attorney, but one that specializes in negotiating short sales. I have found that this is the single most important determinant of the length of time that it takes to get these transactions closed. As long as we can reasonably expect to get the short sale approved in 60-90 days, which is common, I would say the biggest reason to buy a short sale would be the price. They typically sell at a 10-20% discount to TODAY's market price.

If you need additional reasons to buy a short sale, keep an eye out for future posts.

Joseph Cacciapaglia, MLERE
Realtor Associate®
R&I Realty
15 Potter Street
Haddonfield, NJ 08033
Office: 856.795.3111 x268
Cell: 979.218.2286
Jcacci1@gmail.com

I just received a comment on my previous blog entry regarding Rent to Own transactions. The question that was asked was whether or not real estate agents are required to be educated about rent to own transactions. I thought that this was a great question, and unfortunately most agents are not educated about these transactions. Actually, most agents don't want anything to do with these types of transactions because they believe that they have to delay their commission check. This really is too bad because as I had mentioned in my earlier post, often Rent to Own is a great way for someone who has a blip on their credit to get back into home ownership sooner rather than later.

Because most agents won't handle these transactions, many-would be tenant/buyers end up working directly with companies that only rent to own. This is great when the company is legitimate and isn't out to take advantage of unknowing tenant/buyers, but when it is a less reputable company, there are often many negative repercussions. If you are considering a Rent to Own transaction I would suggest that you seek out an agent who is knowledgeable and will look out for your best interests in this transactions. At the very least do a little research on the company renting/selling the home, and as always have your attorney review the contracts.

Joseph Cacciapaglia, MLERE
Realtor Associate®
R&I Realty
15 Potter Street
Haddonfield, NJ 08033
Office: 856.795.3111 x268
Cell: 979.218.2286
Jcacci1@gmail.com

Yesterday I attended a short sale seminar that was put on by a local attorney who specializes in negotiating short sales. I've been working on short sales for quite some time now, but I do like to attend these types of things as a refresher every once in a while. One of the most important things that he pointed out was that the original loan amount doesn't really matter to the lenders; what lenders care about is today's market value and what they would net in a foreclosure versus what they would net with a short sale.

This wasn't new information, but I was glad to hear it again, because in some of the areas that I currently work in, prices have declined considerably. I have weekly update calls with all of my sellers, during which we discuss my marketing efforts, changes in the market, and the price of their home. It often disturbs sellers that they have their home for sale for 25% or more below what they owe. I always reassure them that this is where the market is today, and that we will have a compelling case once we are ready to start dealing with their lender. I guess it is just nice to hear the same message from another local real estate professional.

Joseph Cacciapaglia, MLERE
Realtor Associate®
R&I Realty
15 Potter Street
Haddonfield, NJ 08033
Office: 856.795.3111 x268
Cell: 979.218.2286
Jcacci1@gmail.com

Here's more good news. This article mentions that foreclosure action in New Jersey fell 40%+ in May versus 2008. I'm hopeful that this trend will continue, but at the moment I'm still very busy helping distressed homeowners, so it's not over yet.

Joseph Cacciapaglia, MLERE
Realtor Associate®
R&I Realty
15 Potter Street
Haddonfield, NJ 08033
Office: 856.795.3111 x268
Cell: 979.218.2286
Jcacci1@gmail.com

I was speaking with a homeowner this past weekend about selling their house, and I brought up the topic of seller assisted financing. In today's market, sellers should do anything and everything to make their home more attractive to the potential buyers out there. A lot of homeowners, especially those in foreclosure, are unaware of this option and how it works. Basically, if you have equity in your home, you can lend this equity to a buyer when they buy your house. At the closing table you get a note and mortgage instead of getting all of your cash. This works very well for sellers who are not buying a new home immediately, or sellers who would prefer money on a monthly basis instead of in one lump sum. For many of my clients who are selling their homes due to foreclosure, and have recently lost some or all of their income, this is a perfect fit. Often they won't qualify to purchase a new home for 6 months or more, and they can use some additional income on a monthly basis.

If you are planning to sell your home, and are interested in receiving top dollar in today's market, seller assisted financing may be right for you. As always, you should consult your local real estate professional as well as legal counsel before making any real estate decisions.

Joseph Cacciapaglia, MLERE
Realtor Associate®
R&I Realty
15 Potter Street
Haddonfield, NJ 08033
Office: 856.795.3111 x268
Cell: 979.218.2286
Jcacci1@gmail.com