Jimmy Mulhern

If you turn on the radio in your car right now, you will probably hear three to four commercials an hour advertising services relating to credit card debt, or law firms advertising loan modifications. Of course with all these services comes a fee...and who do you think is going to pay for that?

Before you make that phone call know this. In short sale situations, the sellers should not pay for the closing costs associated with the sale of their property. No agent fees, no attorney fees...nothing. At least that is how it should be. If you short sale is handled the correct way, you should have proof that you do not have the funds to own the home. In these cases, you the seller do not pay a dime to sell your home. That is something that you have to seriously consider before you contact one of the on-line advertisements or late night TV infomercials.

Some agents charge for services up front due to the low success rate that they have with closing a short sale. Well established agents have arrangements with title companies that allow them to run title searches and create draft HUD-1's at little or no cost. This is who you want to use - someone who has the resources to list your home and work without the stress of whether it will close or not. The agents responsibility/duty should be to evaluate your situation and determine if they can list the property and negotiate out a successful short sale.

It is reported that over 50% of homes being sold as "For Sale By Owner" are doing so because they are short on their mortgage. If you are in that situation, you need to understand that you do not have to pay for the costs of selling your home in a short sale situation.

There are many myths about short sales, and there are many problems that can be avoided with the right agents working on your behalf. If you are having trouble making your monthly payments, make sure you contact an agent who has the education and experience to get the banks exactly what they need to close your sale. These transactions can take months to complete if not done correctly, causing the buyers to walk away. Make sure that you choose a CDPE to handle your transaction.

Visit our website to learn more about the short sale process. We can help - you just have to make the call!

Jimmy Mulhern - CDPE

http://www.HomesInVirginia.net

Dear Fellow Homeowners:

We are all in this together. For the past two years, the real estate industry has been completely overhauled and along with it, the housing market has taken the brunt of the pain. I, just like you, have watched my homes value decline significantly in value. I, like many of you, had an Adjustable Rate Mortgage (ARM) and dreaded the day that it was going to reset. For the past year now, I made a commitment to learn about how we can best represent homeowners facing the same dilemmas - and now we have a system that achieves the highest rate of successful results.

I am sure that you have read and heard about the growing number of homeowners pursuing short sales in the US today. In fact, the chances are that one of your neighbors is going through one right now. Some estimates state that over 50% of the properties that close this year will be short sales or foreclosures. Most people don’t learn what a short sale is until they experience it firsthand.

In a nut shell, a short sale is a closed transaction where the mortgage holder(s) agree to accept less than the mortgage amount balance in order to close the sale. These can be very complicated transactions with far reaching ramifications. Our website has a report that you can download which should help you understand some of the major qualifications and steps that accompany a short sale.

As a CDPE, I have been specifically trained to assist buyers and sellers when they are going through these difficult transactions. I am dedicating my training to help my clients and their friends through these difficult times. Not only are these financially challenging transactions, the stress on a family can be overwhelming.

As a community service, I have included an informational sheet on Short Sales on our website, how to qualify and what a homeowner needs to do in order to pursue one. If you or someone you know should need answers I want to make sure at least the basics can be covered.

If I can assist you or your family or friends, I am here to help anytime.

Sincerely,

Jimmy Mulhern - CDPE

http://www.HomesInVirginia.net

One of the most disturbing trends of the past two years that we had to deal with was the emergence of "The Experts" - you know the people on TV or writers in magazines and newspapers telling people thinking about buying a home that they were fools or that they should offer at least 10% lower than the price of the home no matter what. Why was it disturbing? Because for agent s like our team who help people buy homes they want to live in, we had to fight against the perception that it was not a deal unless you were stealing the property from the seller. Forget that you were buying a home for hundreds of thousands of dollars less than others in the neighborhood, and forget the fact that there was no real competition for finding a home...all that mattered was that you were able to negotiate! Well the pendulum has swung the other way. We had clients who thought that those "Experts" were speaking the truth, and now they can not find a home for less than what they were going to pay last year, and when they do find a home they are competing with 3 or more contracts. These are not games we as agents are playing - I do not get paid to show you homes - you hire us to find you a home and advise you on what it will take to get that home. Take for example the client we have who is looking for their first home. Last year, he could walk into REO's, traditional sales, or even short sales, and take their time to make sure it was the right home for them. Usually they would be able to get their closing costs paid for and negotiate down the price a little. Well that was not good enough for them and they listened to the experts who said the market was going to continue on the downward trend...they were wrong!

It finally hit our client the other day when they said we missed the boat - yes you did. It is unfortunate that you blew off our advice as a sales technique - guess what, I am not interested in just cashing a paycheck...I want you to be the most satisfied client in the world so that you refer your friends and family to us - that is why we do not force sales techniques on you. Now that you listened to national pundits who are not informed on our areas market, you will be paying more than you did last year on the same home in the same condition.

Don't believe me again? Well let me show you the real numbers. In Fairfax County, there are 5,489 homes currently active or under contract. The Average Days On Market for every listing is 34 days! The homes under contract have an average days on market of 25 days...that is for the entire year so far. Lets look at the last 2 months - Since March 1st there have been 3,799 homes listed - the average days on market is 21 days!!! Homes Under Contract average days is 10 days!!! You have got to be kidding me - we are in a sellers market again.

Yes prices have dropped from the historical highs - but so have interest rates. If prices continue to stay low, but interest rates increase, you will be paying more for that house every month with most of it going out the door in the form of interest payments to someone else. For example - if I purchased my home at $300,000 and received an interest rate of 5%, I will actually save $27,468 over the life of the loan vs. someone who buys the same home for $275,000 at an interest rate of 6%. Still a great rate, but the payment on the lower loan at 6% is $38 higher per month, and the amount of interest paid out over time is $38,788 extra - you will never get that money back!

How long will this last - some think only until the next waive of foreclosures hit the market. Well in our area, assuming that things remain constant, there would have to be an increase of inventory 4 times what we currently have in order to make a huge difference. I did see something that I had not seen in a while this past weekend - a builder raised their price $20,000 based on selling 30 homes in the month of April...Last year they did not sell 30 homes in the entire year!

Jimmy Mulhern - CDPE

www.HomesInVirginia.net

There are many things that you the consumer need to be aware of when contemplating an attempt on a short sale. The market place is changing and short sales are becoming an excellent option for the banks to avoid the excess fees that a foreclosure can create for them. The most important thing that you need to understand is that you are not alone - almost 40% of homeowners have missed at least one payment - and almost 70% of homeowners facing foreclosure simply do nothing. You can not give up!

The most important thing you need to understand is that working a short sale costs you nothing. Part of the process is that fees associated with selling your home are part of the short, so no money should come out of your pocket. Be aware of the scams who are out there - YOU SHOULD NEVER HAVE TO PAY AN UP FRONT FEE OR ANY MONEY FOR SOMEONE TO WORK ON YOUR BEHALF! Unfortunately there are people out there preying on distressed homeowners. We offer consultation to our clients fro free, so you should expect the same from anyone else.

When you contact either an agent or attorney for help avoiding foreclosure, their first objective should be to find a way to keep you in your home. There are many options out there, and a short sale should be the last resort. Homeowners are facing hardship for more reasons than buying a home they could not afford. Many loans were set up to favor the banks with the promise that values would continue to rise. The spiral effect of a falling economy has cost primary wage earners their raises and in some cases even their jobs.

Be wary of the "Successful Short Sale Agent" - I hardly count 3 out of 14 successful, but that is what some people advertise on. Make sure that your agent has the education and systems in place to meet all of the banks questions and qualifications. Right now, the industry standard education is the Certified Distressed Property Expert designation or CDPE. This has been adopted by RE/MAX International, and CDPE agents boast a 90% success rate on closing their short sales. Remember, a short sale is simply a regular transaction between a buyer and seller so you have to still sell the property. Most sales fail because they are listed at a low price to try and get a quick offer. You must market the home properly and show the bank that it is in their best interest to accept the sale.

There are many reasons why you want a short sale instead of a foreclosure. The most important issue that is often ignored is simply the mental anguish that a homeowner goes through. I have my own personal reasons why I decided to become a CDPE and help homeowners in trouble, and I want you to know that there is hope. Together we can help find the best solution.

Recap

1 - Do not pay for any consultation or services up front.

2 - There are many reasons why you want to avoid a foreclosure.

3 - Almost 40% of homeowners have missed a payment...Do not be embarrassed.

4 - Education and Training on the Short Sale process trumps throwing darts and hoping you hit something.

5 - Prepare and sell your home like a normal sale

6 - The first priority of any individual offering help should be to find a way to keep the home!

7 - Short Sales will replace Foreclosures in the marketplace by the end of 2009.

8 - Remember...you have a team of experts at your disposal and at no cost to you - Call Us Immediately!

Jimmy Mulhern

http://www.HomesInVirginia.net

We have a client who was interested in buying a home that had become a short sale. The price of the home was $485,000 so she offered $425,000 - they rejected her bid and we moved on. About a month ago, she called up saying that the home had dropped to $385,000 and wanted me to see if we could see it - it was under contract already but I told her it would not settle. And it did not...why? It was not seasoned on the market the right way.

This is a common mistake for those who do not know the best way to handle a short sale. By placing the home at a low price, you do generate offers and get something quick. But in this last instance, the home appraised for $470,000 so the bank said no way. The home was priced so ridiculously low that the bank figured they could reject this short sale and still have almost $100,000 to play with. The bank wants to see that an effort has been made to generate the highest possible selling price - so the huge drop in price and then an appraisal that comes back $90,000 high does not satisfy the banks requirements.

What do you do in this situation - well we have a plan and a formula for that. The first thing you have to determine is when is the drop dead date. This is when the foreclosure filing will take place. You also have to find out what homes are selling for in the area - not listing for - selling for. After you adjust for the condition of the home, you should have an established price and a set rule for reductions in the list price. By "Seasoning" the property, the bank or investor will see that every effort to maximize the property's selling price was made and that this may be their best offer.

Do you need help deciding if a short sale is what you need to do? We are Short Sale experts in Northern Virginia and now hold the CDPE designation. What is that you ask? Visit our website to find out more.

Jimmy Mulhern

http://www.HomesInVirginia.net