We were talking about the overall process for someone new to the short sale world and looked at each other and said “man that is a lot of stuff and it seems to take forever”.
You have heard us say this before, but we MEAN it we have a tool box that makes the machine run smooth. Check out our website and start getting our training and feel the accomplishment of success. www.shortsalealliance.com
Anyway just to show you SOME of the things needed to be done in a short sale process, read below or just go straight to our website and we will take you through the maze with ease. www.shortsalealliance.com
.short sale in nutshell:
A list of items you will need to prepare for a short sale:
If you’re interested in working with your bank to accept a short sale, there are many documents you’ll need to gather.
Most banks have a loss mitigation department. It is the loss mitigation department’s job it is to resolve problems associated with a defaulted mortgage loan. Often, you’ll be working with a loss mitigation officer charged to help the bank minimize the loss due to a loan in default. Each bank is different and has its own guidelines and requirements. It should also be stated that some banks will not consider a short sale until you actually are late on your loan, and have received an offer on your property. It’s essential to have the short sale package of required documents ready so that you can work thru the process quickly. Some buyers may not want to wait weeks or months to navigate a short sale, so to expedite a fast, successful sale, get your paperwork in order. Although your lender may have slightly different guidelines, the following items are commonly required:
The loss mitigation department may request additional information and documentation in order to verify the change in the borrower’s financial situation and hardship. It may also be noted that some of the requested documentation may lead to re-verification of your financial status at the time of your loan origination.
Bobby and Howard
P.S. Please click below for some more great training on Working with Short Sales www.shortsalealliance.com
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DO THE DUE
Due diligence in a real estate contract involves the buyer investigating all aspects of the property so that they know everything that can be known about the property before a sale. A typical residential sale will have a due diligence period of 14 to 21 days. There is no “standard” due diligence period, or legal due diligence period, unless a contract is signed specifying the period of due diligence. It can be as long or short a time period as needed, providing the buyer, seller and lender agree.
As the buyer, you are entitled to know everything about the property you are buying. The law requires much of what you want to know, but laws vary by state. If you are borrowing money, the lender will have their own requirement–starting with an appraisal. They will not loan money for a property that isn’t worth the price. A very short list of required inspections includes termites, roof damage and building code violations, a properly titled deed and liens. That is only the beginning.. or perhaps it is “AS IS” and the due diligence is totally up to you.
Some things will be required as part of due diligence on the part of the lender if you are taking a mortgage out on a home. Required or not, these are areas of potential problems. They include the age of the heating system and boiler and when they were last serviced, signs of corrosion around the heating unit, the condition of piping, cracks or bulges on the interior wall finishes, the electrical service and insulation and whether the building is served by municipal water and sewer systems. These are some of the most important things that are usually included in the formal period of due diligence.
The more you know about your property the better and you can start before the formal period of due diligence. Look at public records. Zoning is the first and one of the most important items to consider. If you plan to expand the home at some time in the future, you could be surprised to learn that the property cannot accommodate a home with a larger footprint or a second home. Is the property in a flood plain? Is it located in a special overlay district–a historic district, for example–that restricts what may be done on the property. The property may be irregular, that is non-conforming, to the existing zoning.
No matter the time it takes, you should have enough knowledge of the property to give you a clear picture of the physical, legal, and, in the case of a commercial property, its financial condition. The time it takes to get a true knowledge of your investment is worth whatever effort it requires. Remember, once you have bought it, it belongs to you, and if it isn’t worth what was paid, it is still yours. In our “tool box” we have laid out the steps you will need to do to do your “due diligence”. In a short sale, life of due diligence has a form of its own.
Hey, do your DUE DILIGENCE and check us out, you will be given information along with the training tools to use it! Now is a good time.
Bobby and Howard
]]>SHADOW INVENTORY -AVAILABLE SHORT SALE PROPERTIES- just wanted all of you to read this article from DSnews.com. Inventory depletion last year didn’t make a dent in the available properties. It could take as long as three more years to clear the inventory and expect to see property values still fall for some time in the future.
By: Carrie Bay
The industry’s shadow inventory of repossessed and soon-to-be repossessed homes that aren’t visible as properties for sale has contracted, according to CoreLogic.
Analysis released by the company Wednesday shows that the shadow inventory of residential properties as of January 2011 fell to 1.8 million, down from 2.0 million a year earlier.
CoreLogic estimates current shadow inventory, also known as pending supply, by calculating the number of distressed properties not currently listed on multiple listing services (MLS) that are seriously delinquent (90 days or more), in foreclosure, and real estate owned (REO) by lenders.
While the total volume of properties in the shadows dropped, CoreLogic says the amount of time it would currently take to clear this hidden inventory remains the same as a year ago – nine months’ worth of supply. The company says the unchanged supply calculation is due to the slower pace of home sales the industry has experienced in recent months.
Of the 1.8-million unit current shadow inventory supply, CoreLogic’s study shows that 870,000 units are seriously delinquent; 445,000 are in some stage of foreclosure; and 470,000 are already REO.
For the first time, CoreLogic has examined how loan modifications and short sales could reduce shadow inventory levels. The analysis took into account optimal treatment methods, based on net present value (NPV) calculations, as well as expected severity and re-default rates.
Based on these factors, the company concluded that loan modifications and short sales could potentially reduce shadow supply by one-half. However, low borrower response rates to lender outreach and high modification re-default rates would render even the optimal treatment’s impact to be “small,” according to CoreLogic.
In addition to the current shadow inventory supply, CoreLogic points out that there are nearly 2 million negative equity loans that are currently more than 50 percent “upside down.” The company says these properties will likely become part of the shadow supply in the near future.
Mark Fleming, chief economist for CoreLogic commented, “While the trend of the shadow inventory is improving somewhat, the current level and distressed months’ supply remain very high. The short-term weakness in prices and longer-term weakness in the drivers that affect the housing market imply that excess supply will remain high for an extended period of time.”
The highest levels of distressed months’ supply, which is the ratio of the number of properties that are 90 days or more delinquent to the number of home sales, are in New Jersey, Illinois, and Maryland.
CoreLogic says the driving force behind these states’ elevated supplies of distressed properties is a combination of higher than average 90-plus day delinquencies and low sales activity.
The states with the lowest distressed months’ supply are where the boom/bust did not occur and include North Dakota, Alaska, and Wyoming. The largest state with the lowest level of distressed months’ supply is Texas.
]]>How to use Trulia.com to find free short sale leads.
]]>MyLocalShortSaleExpert.com provides services to homeowners under distress and hardship, to prevent foreclosure and provide quality homes to buyers and investors
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