Short Sale Buyers
Bank Owned Buyers
If you are a Buyer,you can make
a fantastic purchase under market price. I will help you make an offer on a property that the borrower
can no longer afford, before it goes to foreclosure. Sometimes this is may be called a short sale, when the seller
owes more than the current market value. The
lender is willing to take an offer rather than letting it go into foreclosure. I know what their formula is and
can guide you as my client. I need to stress
that this type of purchase will not happen unless your agent is qualified to package the deal correctly. The lender
requires a specific format and if not done correctly it becomes one of those horror stories we have all been hearing
about. Many times we can negotiate a great price with the Seller in NOD status. This is the time the Seller should either allow us to do a Loan Modification or package it for a
Short-sale. Buyers, call us to set up an appointment
for a Free Consultation with No Obligation where we will show you how to save the most money by making an offer before
this property goes to Auction and becomes a foreclosure.
WARNING: If you use just any real
estate agent to represent you as a Seller or Buyer of a Short Sale property, the odds are against you in getting the
bank to accept an offer. Statistics show that nine out of ten listed short sale properties will NEVER be accepted by the lender and the property will end up in foreclosure after all. The
problem often lies with the listing agent not knowing the proper way to package it for the bank to accept it. If it's
not packaged correctly, the lender has their hands tied and simply cannot accept it. The property ends up going into foreclosure and ruins the sellers credit as well as losing them their home.
During the first half of 2008, agents were listing multiple properties and then blaming the lender because
they weren't "aware" of the proper way to package the deal. The foreclosure time period kept ticking away, and
not only did the home seller lose out, but the lender lost out too, when it became a foreclosure. The bank doesn't really
want to own the property and pay all the legal costs that go with it. The time it takes to get it listed again on the
market and with a new agent means the lender is still not earning any interest, but instead incurring even more costs.
These agents were not really helping the home owners with their lack of expertise in how to package the short-sale deal
for acceptance, they were hurting the home owner. Just because an agent has several dozen or even several hundred listings,
(and many do) does not mean they are foreclosure experts and certainly doesn't mean they are actually selling them all. In
fact, the statistics have shown that only 1 out of 10 Listings (10%) has been the national average of short-sales sold
in comparison to the number of short sales listed for sale. How can this be considered helpful to the already distressed
Understanding the Short Sale
SHORT-SALE means selling price is
less than the amount owed.
This is frustrating to many anxious buyers only because
there are so many real estate agents who don't know how to package the deal right for the lender. The buyers are strung
along for many months and then 9 out of 10 listings aren't even sold, simply because the Listing agent doesn't understand
what is needed to accomplish the sale. Many Realtors representing their buyers have become frustrated and now are avoiding
even showing these properties to buyers because they were made to wait and see for so many months and months and then nothing
happens. If you wish to pursue a short sale, you
need a Short-sale 'Specialist' who is "Certified" and really does know how to accomplish this rather than just throwing
some paperwork at the lender and hoping it sticks.
In a SHORT-SALE, the Seller must pre-qualify for their Hardship
by the lender. Several kinds of disasters may qualify
them, such as losing their job or being injured or disabled with no way to repay their loan ever.
The Seller is trying to save themselves from going Bankrupt
and in that way, preserving their credit, so it is to the Seller's advantage to cooperate in showing the property while
they live there and usually are no longer making a payment. In order for the lender to net the most profit, they, too want to avoid foreclosure. If the deal makes sense in my presentation,
then your offer will be accepted. The lender always verifies the value by hiring an independant to do a BPO (Broker Price Opinion) This BPO will confirm
what the market price should be. The BPO only looks
at the most recent sold homes within 2-3 months. Since
the Lender is going to take a loss, they must document why
they have done so. If you decide to go for a short-sale,
you must have a little bit of patience; it will take a bit longer than a regular purchase.
home sellers need to choose an agent who has the knowledge to correctly handle the short-sale packaging and
then everybody wins. The new buyer gets the deal without a long drawn out wait and the homeowner just saved their credit
so that they can purchase another home when they are back on their feet and the bank saved a lot of legal fees. I feel really good knowing I can help be a part of the solution in this crazy real estate market
that we are in and help distressed homeowners make a wise decision
to keep it with a loan mod, or sell it short quickly.
Call now for your Free Consultation... don't wait... time is of esssence!
Buyers & Investors: Learn the Process of Buying Foreclosures:
Rule # 1,
you need a "Certified Foreclosure Specialist" and Ginger Hopp is a Certified Foreclsoure Specialist... your ticket
to a smooth transaction.
NOD means Notice of Default and this property
is pre-foreclosure and the Owner may simply be late on their payment and not willing to sell it. The owner has
missed their payments and the amount listed only reflects the amount of payments they need to catch up in order
to stop the property from going to Auction 90 days later. This is a pre-foreclosure and not yet a foreclosure; the owner may
still have time to do keep their home. If you are that distressed borrower reading this, CALL ME RIGHT NOW, so I can help you avoid a foreclosure by saving your home with a loan modification
held before it actually becomes a bank owned property. You will need to give them a Cashier's
Check in a sealed envelope with a contract offering and bring it to the Auction steps on the specified sale
date. An AUCTION opening bid amount is typically based on what is owed by the 1st Deed holder. The 1st deed holder needs Cash... they
won't wait for financing. The holder of the 2nd Deed may try suing the borrower for thier amount owed, but
the 2nd Deed holder may lose out completely on this type of sale. At an Auction, when your bid is the accepted bid, will take much less time than an
REO or a short-sale. It's always AS-IS and you usually don't even get a chance to hire and Inspector. Some people think they can't buy at an Auction without
a lot of cash, but if you are creative and pull the cash from an existing property or take out a short-term business
loan or even a private-money loan in order to come up with the Cashier's Check, you can pay that back once a new
loan is finalized through a bank or other lender. The key here is that first you must buy it and take Title.
REO stands for "Real Estate
Owned", meaning Bank-Owned and usually this property is marketed 10%-25% below current market value. The
bank has already done an Appraisal or a BPO when they list this property for sale. The bank will dictate to the
Listing agent what the price shall be and it is strickly sold AS-IS, nothing will be fixed, since the price is based on the
current condition of the property. This REO can be financed
by the buyer, unlike the Auction property in which you bid with cash. The draw back to buying a bank-owned property
is that the bank knows nothing about the property and so, therefore, there are no Disclosures of condition and the Buyer must
do their due dilligence and Home Inspections (at buyers cost) until the buyer is satisfied. As a Realtor, I always
recommend a whole house inspection by a Property Inspector.