Nathan Anderson

A lot of Realtors, buyers, and sellers stay away or cringe around the topic of short sales. However short sales are becoming more prevalent as home prices continue to decline. In Kansas City, there are a several opportunities for buyers and sellers to utilize short sales to help get a property sold.
A short sale is when a home is sold, not there is not enough money to pay all the liens and expenses associated with the sale.
In order for a short sale to work, all parties involved need to benefit. Seller, Buyer, and Lender
Here are some qualifications for a successful short sale:
1. Decrease in market value
2. Mortgage in default
3. Seller does not have the ability to pay or continue to pay mortgage payment
4. Lender will save money/time by approving the short sale over a foreclosure
5. Buyer has patience to get deal done

Documentation typically needed to submit file:
1. Sales contract showing property to be sold "as is" with quick close after approval
2. Listing agreement showing a reduced commission
3. Hardship letter explaining job loss, divorce, medical bills, death, or other fin. issue
4. Preliminary HUD-1
5. Seller tax returns
6. Buyer pre-qualification/proof of funds
7. Bank statements

Keep in mind that the bank has several files "on their desks" You need to be patient, but continue to be persistent to get an answer from the bank. Short sales are a great way to continue to move properties in a down market.

For more information about short sales in the Kansas City, Missouri market, feel free to call or email me at either 816-728-0214 or Nate@AmicGroup.net.

Is a question I have gotten a lot from real estate investors. Most are part-time real estate investors that were lured into the real estate world with visions of making easy money. Well we all know how the market has changed, and some properties are taking longer than projected to sell. It is important to look at a few key items to determine if renting out the property makes sense to the property owner.

We will start with the benefits:

1. Rental Income- In most cases, you can rent out the property for enough money to cover the principal, interest, taxes, and insurance payments. Anything left after that is called positive cash-flow. Even if you are breaking even, this is still a much better scenario that paying thousands in payments.

2. Securtiy of the Unit- By having a tenant in the property, the chances of vandalism, vagrants, or even a water pipe breaking decrease significantly.

3. Piece of Mind- By receiving rent money and having the unit occupied, property owners can continue about their lives without worrying about the unit draining their bank account or getting broke into to.

Negative aspects of Renting out a Property:

1. You are a landlord- You will have to find a renter, negotiate a lease, and collect rent payments. You can also pay a property management company a fee to assist with these things.

2. Hard to show Property- If you are going to continue to keep the property on the market, being occupied makes it more difficult to show.

3. Damage to Unit- Even though you receive a security deposit, some renters will leave the unit in need of expensive repairs.

I always explain the pros/cons with clients and let them come to their own conclusion on what to do. I personally do a mix of both and will continue to do so.