Posts
I’ve put together a list of 10 reasons why Buyers should consider purchasing a Short Sale home in today's market:
1). Great Value: Short Sale properties offer Buyers great prices. On average, these properties are 5%-15% below the market price!
2). Wider Selection: Most of the properties on the market today are Short Sales (65%-80%). In some areas, the percentage is even up to 90%. If Buyers consider Short Sale properties in the current market, they'll actually increase the chance to find the property that will match their needs.
3). Good Condition: The properties sold in Short Sale transactions will be in much better condition than the ones that are sold as REO (real estate sold by banks).
4). Credit of $8,000: If the Buyer purchase a Short Sale home before the end of November 2009, they will receive an $8,000 credit from the government!
5). Tax Relief: Buyers will also be able to deduct all interest, taxes and points from their taxes.
6). Pride of Home Ownership: No further explanation.
7). Reduce REO Inventory: Buyers purchasing Short Sale properties are in fact helping Sellers avoid foreclosure.
8). Negotiations: Buyers will have the ability to negotiate closing fees, home warranty fees and credits for repairs, etc.
9). Quicker Bank Approvals: The time to obtain Short Sale approval has been shortening. Some banks are able to approve Short Sale Approval Letters within 30 days.
10). Advantageous Edge: Banks are very motivated and willing to work with Buyers in order to avoid another foreclosure.
If you have any questions in regards to Short Sale transactions, I can be reached at (562)334-7393.
Ihor Pochay
Realtor / Short Sale Specialist
Tarbell, Realtors
Cell: (562)334-7393
Off: (909) 364-9005 Ext. 471
Fax: (909) 364-9262
ihorpochay@tarbell.com
http://www.myrealtorihor.com/
http://www.shortsaleyourhome.blogspot.com/
Twitter: @ihorpochay
Thursday, September 10, 2009
Thursday, June 25, 2009
SHORT SALE PROPERTIES ARE ON THE RISE
There are more and more Short Sale properties on the market these days. In my market area (Chino Hills, Chino, Phillips Ranch, Diamond Bar) it is about 50% of all the sales. The inventory of the listings is very short. The banks are not releasing the REO properties (shadow inventory), and the government's incentive of $8,000 tax credit for first time home buyers creates a huge demand for properties including short sales.
Recently, I've listed short sale properties on the market and within a few days attracted more than 20 offers from home buyers. The homeowners who listed their properties as short sales are now seeing an opportunity to sell their homes at the current market price, and in some cases even above the market price.
On the other side, the U.S. Department of Treasury will provide a $1,000 incentive to a loan servicing company for every successful Short Sale. It will also offer $1,500 to a borrower to assist with relocation expenses. Also, many REALTORS are encouraged to do Short Sales knowing that the commission will not be reduced if the investor is Fannie Mae. So many factors lead to the increase of the Short Sale transactions in 2009. That will help the Lenders minimize their loss and also will help the borrowers to move on with their lives without going into Foreclosure.
Ihor Pochay
REALTOR / SHORT SALE & REO SPECIALIST
Tarbell, Realtors
Cell: (562)334-7393
Off: (909)629-6186 Ext. 339
Fax: (909)629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
www.shortsaleyourhome.blogspot.com
Recently, I've listed short sale properties on the market and within a few days attracted more than 20 offers from home buyers. The homeowners who listed their properties as short sales are now seeing an opportunity to sell their homes at the current market price, and in some cases even above the market price.
On the other side, the U.S. Department of Treasury will provide a $1,000 incentive to a loan servicing company for every successful Short Sale. It will also offer $1,500 to a borrower to assist with relocation expenses. Also, many REALTORS are encouraged to do Short Sales knowing that the commission will not be reduced if the investor is Fannie Mae. So many factors lead to the increase of the Short Sale transactions in 2009. That will help the Lenders minimize their loss and also will help the borrowers to move on with their lives without going into Foreclosure.
Ihor Pochay
REALTOR / SHORT SALE & REO SPECIALIST
Tarbell, Realtors
Cell: (562)334-7393
Off: (909)629-6186 Ext. 339
Fax: (909)629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
www.shortsaleyourhome.blogspot.com
Monday, May 4, 2009
Who Pays The Commission In A Short Sale Transaction?
Many homeowners do not want to Short Sale their homes simply because they think that they will have to pay commission to REALTORS. That is not true. In all cases, when there is a Short Sale transaction, the Lien Holder (Bank) will pay all the commission and all the expenses (taxes, seller’s escrow fees, etc), so homeowners will not have to spend any additional money from their own pockets.
The banks are very particular in regards to how much they will pay to REALTORS for the complete Short Sale transaction. If the Buyers and Sellers are represented by two different REALTORS, the banks usually will pay 5% for them to split. If the Buyers and Seller are represented by one REALTOR – 4% commission is most likely to be approved by the Bank, as they are trying to cut the cost and get as much out of the transaction as possible, and in some cases it is a policy of the Bank.
However, if the investor of the loan is FNMA or Freddie Mac, the REALTORS will be able to receive commission up to 6%. Realtors should ask the sellers to contact their loan service company and find out who is the investor of the loan (most likely the loan will be sold on the Secondry Market to different investors). In many cases it will be FNMA or Freddie Mac as they are the investors for approaximately 60% of all the mortgages in US.
If you have any questions in regards to the Short Sales or need to conduct one, feel free to call me directly (562) 334-7393.
Ihor Pochay
REALTOR®/SHORT SALE SPECIALIST
Tarbell, Realtors
Cell: (562) 334-7393
Off: (909) 629-6186 Ext.339
Fax: (909) 629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
www.shortsaleyourhome.blogspot.com
The banks are very particular in regards to how much they will pay to REALTORS for the complete Short Sale transaction. If the Buyers and Sellers are represented by two different REALTORS, the banks usually will pay 5% for them to split. If the Buyers and Seller are represented by one REALTOR – 4% commission is most likely to be approved by the Bank, as they are trying to cut the cost and get as much out of the transaction as possible, and in some cases it is a policy of the Bank.
However, if the investor of the loan is FNMA or Freddie Mac, the REALTORS will be able to receive commission up to 6%. Realtors should ask the sellers to contact their loan service company and find out who is the investor of the loan (most likely the loan will be sold on the Secondry Market to different investors). In many cases it will be FNMA or Freddie Mac as they are the investors for approaximately 60% of all the mortgages in US.
If you have any questions in regards to the Short Sales or need to conduct one, feel free to call me directly (562) 334-7393.
Ihor Pochay
REALTOR®/SHORT SALE SPECIALIST
Tarbell, Realtors
Cell: (562) 334-7393
Off: (909) 629-6186 Ext.339
Fax: (909) 629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
www.shortsaleyourhome.blogspot.com
Friday, March 20, 2009
What You Need To Know When Buying A Short Sale Home
If you are a buyer, and trying to buy a property in today’s market, most likely you will come across the properties that are sold as Short Sales. Here are a few things you need to know and to have before applying for a Short Sale.
1). You need to be flexible with time. If you need to move in ASAP, Short Sale transactions are not for you. In today’s market it might take 2-3 months for the banks to approve the Short Sale (sometimes even more – depends from the bank and/or investor).
2). You might need to come in with additional $2,000 or $3,000 dollars in addition to your original offer, to make transaction go through. Sometimes the first lien holder (bank of investor who holds the 1st Trust Deed) will not pay enough to the 2nd Trust Deed holder, or there is per diem charge. Be ready to step in and cover that difference. The sellers usually will not pay that amount as they are not receiving any money from the sale. You as a buyer are purchasing the property 10%-15% below the market price, so when the time comes – you might need to make a business decision.
3). The properties are usually come “as is.” Neither the banks nor the sellers will make repairs on the property. All the inspections are usually made just for information purposes only, and there might be no contingency for the home inspection.
4). The banks usually do not approve the closing fees paid to the buyer, and they do not provide Home Warranty Plan either. Be ready to buy the plan by yourself, after the transaction is finished, or include the plan into your closing costs.
5). You will have to be ready to deposit the Earnest Money Deposit to the Escrow right away (prior to receiving the Short Sale Approval from the banks), showing the listing agent that you are willing to wait for the Approval, and will not switch to another property. There is nothing worse for the listing agent than working hard on the Short Sale transaction for 2-3 months just to find out that the buyer will walk away at the last minute, because they changed their minds. Don’t be one of those buyers! Treat others like you would like to be treated. If you are not sure about the property simply do not apply. Let the people who really want the property to be the one who get it.
6). Be prepared when submitting the offer to the listing agent. With the offer send the following items:
a. Pre-approval letter (must be from the direct lender)
b. First page of the credit report with FICO scores
c. Copy of the Earnest Money Deposit 2%-3% of the purchase price
d. Proof of funds (copy of your checking or saving account showing the amount needed for the down payment and closing costs).
7). Have your agent to follow up with the listing agent every week. Sometimes the listing agent has 20-30 properties and they just simply do not have time to call every agent who represents buyer. Remember there might be multiple offers. Don’t blame anyone for anything. Always be polite and have a positive attitude. Being rude and blaming someone will not get you anywhere. Remember everyone is working hard in order for you to buy the property under the market value.
8). If you receive any documents during the Short Sale transaction from Escrow or the listing agent, make sure that you read them, sign them and return the documents ASAP.
9). Do as much work on your loan as possible. Always give to your loan officer updated information (paychecks, W-2s, checking and saving accounts info, etc.); sometimes you will have to close as soon as possible.
10). Stay motivated and make sure that the listing agent knows what he or she is doing. Have your REALTOR interview the listing agent about Short Sales to determine if the listing agent is knowledgeable in Short Sale transactions. It is wise to think about this detail before applying for a particular Short Sale property.
Hope this will help you in the future. Meanwhile if you have any questions, you can reach me at ihorpochay@hotmail.com. Feel free to contact me at (562) 334-7393 if you need to sell or buy a property.
Sincerely,
Ihor Pochay
Realtor / Short Sale Specialist
Tarbell, Realtors
Cell: (562)334-7393
Off: (909)629-6186 Ext. 339
Fax: (909)629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
www.shortsaleyourhome.blogger.com
1). You need to be flexible with time. If you need to move in ASAP, Short Sale transactions are not for you. In today’s market it might take 2-3 months for the banks to approve the Short Sale (sometimes even more – depends from the bank and/or investor).
2). You might need to come in with additional $2,000 or $3,000 dollars in addition to your original offer, to make transaction go through. Sometimes the first lien holder (bank of investor who holds the 1st Trust Deed) will not pay enough to the 2nd Trust Deed holder, or there is per diem charge. Be ready to step in and cover that difference. The sellers usually will not pay that amount as they are not receiving any money from the sale. You as a buyer are purchasing the property 10%-15% below the market price, so when the time comes – you might need to make a business decision.
3). The properties are usually come “as is.” Neither the banks nor the sellers will make repairs on the property. All the inspections are usually made just for information purposes only, and there might be no contingency for the home inspection.
4). The banks usually do not approve the closing fees paid to the buyer, and they do not provide Home Warranty Plan either. Be ready to buy the plan by yourself, after the transaction is finished, or include the plan into your closing costs.
5). You will have to be ready to deposit the Earnest Money Deposit to the Escrow right away (prior to receiving the Short Sale Approval from the banks), showing the listing agent that you are willing to wait for the Approval, and will not switch to another property. There is nothing worse for the listing agent than working hard on the Short Sale transaction for 2-3 months just to find out that the buyer will walk away at the last minute, because they changed their minds. Don’t be one of those buyers! Treat others like you would like to be treated. If you are not sure about the property simply do not apply. Let the people who really want the property to be the one who get it.
6). Be prepared when submitting the offer to the listing agent. With the offer send the following items:
a. Pre-approval letter (must be from the direct lender)
b. First page of the credit report with FICO scores
c. Copy of the Earnest Money Deposit 2%-3% of the purchase price
d. Proof of funds (copy of your checking or saving account showing the amount needed for the down payment and closing costs).
7). Have your agent to follow up with the listing agent every week. Sometimes the listing agent has 20-30 properties and they just simply do not have time to call every agent who represents buyer. Remember there might be multiple offers. Don’t blame anyone for anything. Always be polite and have a positive attitude. Being rude and blaming someone will not get you anywhere. Remember everyone is working hard in order for you to buy the property under the market value.
8). If you receive any documents during the Short Sale transaction from Escrow or the listing agent, make sure that you read them, sign them and return the documents ASAP.
9). Do as much work on your loan as possible. Always give to your loan officer updated information (paychecks, W-2s, checking and saving accounts info, etc.); sometimes you will have to close as soon as possible.
10). Stay motivated and make sure that the listing agent knows what he or she is doing. Have your REALTOR interview the listing agent about Short Sales to determine if the listing agent is knowledgeable in Short Sale transactions. It is wise to think about this detail before applying for a particular Short Sale property.
Hope this will help you in the future. Meanwhile if you have any questions, you can reach me at ihorpochay@hotmail.com. Feel free to contact me at (562) 334-7393 if you need to sell or buy a property.
Sincerely,
Ihor Pochay
Realtor / Short Sale Specialist
Tarbell, Realtors
Cell: (562)334-7393
Off: (909)629-6186 Ext. 339
Fax: (909)629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
www.shortsaleyourhome.blogger.com
Friday, March 13, 2009
Homeowner Affordability and Stability Plan and Short Sales
Recently, President Obama signed a plan designed to help the homeowners to stay in their homes and avoid foreclosure. The three main points of the plan are as follows:
1. It will help homeowners refinance their homes to lower interest rates. The “Loan to Value” on the loan should be no more that 105%. So let’s assume the house was bought for $500,000 with the first Trust Deed of $400,000 and the second Trust Deed of $100,000. If the value of the home dropped to $420,000, the homeowner still can refinance as it is 105% from the first Trust Deed. If the Value dropped below $420,000, the homeowner will not be eligible to refinance. This section of the plan will receive $75 billion to help seven to nine million homeowners to refinance.
2. The plan will help homeowners modify their loans. All the loans which were bought by FNMA and FDMAC can be modified (60% of all the loans in today’s market fall under this category).This section of the plan is designed to help approximately four to five million homeowners. The bank will modify the loan where the new PITI (Principle+Interest+Taxes+Insurance) will be 38% and they the bank and FNMA will split the additional 7% of the costs and bring the PITI to 31%. If the loan is not held by any of the mentioned above investors, the homeowner should contact the bank directly and try to work out some options. Homeowners should be aware of the many scammers working in the loan modification field. Make sure you hire someone with a license and do not pay any up front fees for these services. At the end, you can do the modification yourself.
3. This part of the plan is designed to make some money (over $200 billion) available for people who are buying a home for the first time (first time home buyers) by providing new mortgages with very affordable and low interest rates, including tax credits that will be available to them at the end of the year: $8,000 tax credit if new homeowners buy in 2009 and up to $18,000 if they buy from a developer.
The homeowners unable to qualify for the programs mentioned above will still be able and encouraged by the banks to do a Short Sale or a Short Pay Off to avoid foreclosure.
This is just short break down of the plan. If you have any questions or need to see if you qualify for any of the three programs discussed, or to learn more about Short Sale programs, you are more than welcome to contact me at ihorpochay@tarbell.com
Ihor Pochay
REALTOR / SHORT SALE & REO SPECIALIST
Tarbell, Realtors
Cell: (562)334-7393
Off: (909)629-6186 Ext. 339
Fax: (909)629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
www.shortsaleyourhome.blogspot.com
1. It will help homeowners refinance their homes to lower interest rates. The “Loan to Value” on the loan should be no more that 105%. So let’s assume the house was bought for $500,000 with the first Trust Deed of $400,000 and the second Trust Deed of $100,000. If the value of the home dropped to $420,000, the homeowner still can refinance as it is 105% from the first Trust Deed. If the Value dropped below $420,000, the homeowner will not be eligible to refinance. This section of the plan will receive $75 billion to help seven to nine million homeowners to refinance.
2. The plan will help homeowners modify their loans. All the loans which were bought by FNMA and FDMAC can be modified (60% of all the loans in today’s market fall under this category).This section of the plan is designed to help approximately four to five million homeowners. The bank will modify the loan where the new PITI (Principle+Interest+Taxes+Insurance) will be 38% and they the bank and FNMA will split the additional 7% of the costs and bring the PITI to 31%. If the loan is not held by any of the mentioned above investors, the homeowner should contact the bank directly and try to work out some options. Homeowners should be aware of the many scammers working in the loan modification field. Make sure you hire someone with a license and do not pay any up front fees for these services. At the end, you can do the modification yourself.
3. This part of the plan is designed to make some money (over $200 billion) available for people who are buying a home for the first time (first time home buyers) by providing new mortgages with very affordable and low interest rates, including tax credits that will be available to them at the end of the year: $8,000 tax credit if new homeowners buy in 2009 and up to $18,000 if they buy from a developer.
The homeowners unable to qualify for the programs mentioned above will still be able and encouraged by the banks to do a Short Sale or a Short Pay Off to avoid foreclosure.
This is just short break down of the plan. If you have any questions or need to see if you qualify for any of the three programs discussed, or to learn more about Short Sale programs, you are more than welcome to contact me at ihorpochay@tarbell.com
Ihor Pochay
REALTOR / SHORT SALE & REO SPECIALIST
Tarbell, Realtors
Cell: (562)334-7393
Off: (909)629-6186 Ext. 339
Fax: (909)629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
www.shortsaleyourhome.blogspot.com
Tuesday, February 24, 2009
You Now Want To Do A Short Sale. Top 10 Seller Short Sale Questions, Answered.
Number 10
I can’t make my house payments but I do have an ability to pay back all or part of the negative equity. Also, I want to preserve my credit score…is a short sale right for me?
Probably not. In cases where the seller can pay back all or part of the negative equity (usually to the 2nd lien holder) it makes sense for them to work out a repayment plan. The lender will then release the lien and allow the home to close.
Number 9
If I pay mortgage insurance and default on my loan, wouldn't that cover the deficiency amount?
The mortgage insurance is not there for your protection, it protects the mortgage lender.
Number 8
Do I have to have my home ‘Approved’ by my lender prior to offering it for sale as a short sale?
No. Technically speaking, there is no such thing as being ‘Short Sale Approved.’ The actual approval only happens with an accepted offer.
Number 7
I just missed a payment and I know I will miss more….how long does the foreclosure process take and is there time to do a short sale?
In California it’s taking 6+ months. Generally speaking a well-priced short sale being processed by an educated short sale listing agent will sell and close in less than 120 days.
Number 6
Will I still have to pay property taxes if I do a short sale?
Property taxes will always have to be paid as part of any accepted short sale. Whether it’s you or the lender depends on their policies and the specific agreement you reach while negotiating the short sale.
Number 5
I owe more than my home is worth and I can’t make the payment, do I have to somehow qualify for a short sale?
The simple answer is NO. If someone can’t make their payment and they are otherwise insolvent, they qualify for a short sale. Note: insolvent simply means their total debts are great than their assets.
Number 4
Do I have to pay income taxes? I have heard that I will get a 1099. Will the loss the bank takes be treated as a taxable gain to me..the seller..is this true?!
It WAS true, now it’s not. Consult your Tax Attorney or Qualified CPA. Very recently the tax law was modified and now most people who do a short sale will have no Federal taxes due (CONSULT YOUR TAX ATTORNEY OR CPA).
Number 3
How do you, my listing agent get paid? Who pays your commission?
The bank will pay the commission along with all the other usual closing costs.
Number 2
Do I have to miss a payment to do a Short Sale?
No. Late last year most major lenders started accepting short sale offers from sellers who have never missed a payment.
Number 1
I want to do a short sale and have a 2nd mortgage, does this make me ineligible?
No. Both of your lenders will need to be satisfied in some way to complete the short sale. If your first lender will be paid off by the sale, then you just negotiate the terms with the second lender. Most short sales do involve 1st and 2nd lien holder.
Ihor Pochay
Realtor / Short Sale Specialist
Tarbell, Realtors
Cell: (562)334-7393
Off: (909)629-6186 Ext. 339
Fax: (909)629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
www.shortsaleyourhome.blogger.com
I can’t make my house payments but I do have an ability to pay back all or part of the negative equity. Also, I want to preserve my credit score…is a short sale right for me?
Probably not. In cases where the seller can pay back all or part of the negative equity (usually to the 2nd lien holder) it makes sense for them to work out a repayment plan. The lender will then release the lien and allow the home to close.
Number 9
If I pay mortgage insurance and default on my loan, wouldn't that cover the deficiency amount?
The mortgage insurance is not there for your protection, it protects the mortgage lender.
Number 8
Do I have to have my home ‘Approved’ by my lender prior to offering it for sale as a short sale?
No. Technically speaking, there is no such thing as being ‘Short Sale Approved.’ The actual approval only happens with an accepted offer.
Number 7
I just missed a payment and I know I will miss more….how long does the foreclosure process take and is there time to do a short sale?
In California it’s taking 6+ months. Generally speaking a well-priced short sale being processed by an educated short sale listing agent will sell and close in less than 120 days.
Number 6
Will I still have to pay property taxes if I do a short sale?
Property taxes will always have to be paid as part of any accepted short sale. Whether it’s you or the lender depends on their policies and the specific agreement you reach while negotiating the short sale.
Number 5
I owe more than my home is worth and I can’t make the payment, do I have to somehow qualify for a short sale?
The simple answer is NO. If someone can’t make their payment and they are otherwise insolvent, they qualify for a short sale. Note: insolvent simply means their total debts are great than their assets.
Number 4
Do I have to pay income taxes? I have heard that I will get a 1099. Will the loss the bank takes be treated as a taxable gain to me..the seller..is this true?!
It WAS true, now it’s not. Consult your Tax Attorney or Qualified CPA. Very recently the tax law was modified and now most people who do a short sale will have no Federal taxes due (CONSULT YOUR TAX ATTORNEY OR CPA).
Number 3
How do you, my listing agent get paid? Who pays your commission?
The bank will pay the commission along with all the other usual closing costs.
Number 2
Do I have to miss a payment to do a Short Sale?
No. Late last year most major lenders started accepting short sale offers from sellers who have never missed a payment.
Number 1
I want to do a short sale and have a 2nd mortgage, does this make me ineligible?
No. Both of your lenders will need to be satisfied in some way to complete the short sale. If your first lender will be paid off by the sale, then you just negotiate the terms with the second lender. Most short sales do involve 1st and 2nd lien holder.
Ihor Pochay
Realtor / Short Sale Specialist
Tarbell, Realtors
Cell: (562)334-7393
Off: (909)629-6186 Ext. 339
Fax: (909)629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
www.shortsaleyourhome.blogger.com
Friday, February 13, 2009
Ok, I Get It…A Short Sale May Be My Best Option…Tell Me More…
A short sale is when a lender accepts a discount on a mortgage to avoid a possible foreclosure auction or bankruptcy.
For example, a homeowner, who is facing foreclosure, has an existing first mortgage of $500,000. The market value of the home is $350,000. Long story short, the lender accepts the offer for $350,000 and the home is sold.
That’s a short sale.
Why are lenders so eager to take such a huge discount? Banks do not like bad loans. If they see an opportunity where they can sell the property without the huge loss of a foreclosure, they will do it. Some lenders report that if the home goes into foreclosure by the time the home actually closes with the new buyer, the lender will be lucky to net 50% of the original loan balance.
Bottom line from the lenders perspective? They are in the business of lending money, not owning homes. If they can accept a short sale offer and rid themselves of the bad loan AND net more, vs. the home going into foreclosure, they will do it every time. It’s simply smart business.
Time is not on your side when you are considering a short sale. You must act quickly and work only with a real estate expert who has successfully completed and graduated from advanced real estate education programs.
Ihor Pochay
Realtor / Short Sale Specialist
Tarbell, Realtors
Cell: (562) 334-7393
Off: (909) 629-6186 Ext. 339
Fax: (909) 629-6710
ihorpochay@tarbell.com
http://www.myrealtorihor.com/
www.shortsaleyourhome.blogger.com/
For example, a homeowner, who is facing foreclosure, has an existing first mortgage of $500,000. The market value of the home is $350,000. Long story short, the lender accepts the offer for $350,000 and the home is sold.
That’s a short sale.
Why are lenders so eager to take such a huge discount? Banks do not like bad loans. If they see an opportunity where they can sell the property without the huge loss of a foreclosure, they will do it. Some lenders report that if the home goes into foreclosure by the time the home actually closes with the new buyer, the lender will be lucky to net 50% of the original loan balance.
Bottom line from the lenders perspective? They are in the business of lending money, not owning homes. If they can accept a short sale offer and rid themselves of the bad loan AND net more, vs. the home going into foreclosure, they will do it every time. It’s simply smart business.
Time is not on your side when you are considering a short sale. You must act quickly and work only with a real estate expert who has successfully completed and graduated from advanced real estate education programs.
Ihor Pochay
Realtor / Short Sale Specialist
Tarbell, Realtors
Cell: (562) 334-7393
Off: (909) 629-6186 Ext. 339
Fax: (909) 629-6710
ihorpochay@tarbell.com
http://www.myrealtorihor.com/
www.shortsaleyourhome.blogger.com/
Wednesday, January 21, 2009
No One is Safe in Today's Market!
No one is safe. News stories from across the country tell the tales of both celebrities and average Americans who are all considering selling their homes through a short sale.
Selling your home through a short sale doesn’t need to be a shameful, life-ruining experience. Sometimes short selling your mortgage simply makes smart economic sense, especially for homeowners who find themselves "upside down" — that is, they owe more on their mortgage than their house is worth.
Late last year, CNBC financial guru Jim Cramer was telling homeowners to ‘Just Walk Away.’ (Watch the video on YouTube.com)
We are clearly in uncharted waters. The current housing crisis is different from all the previous housing recessions. It is well known that many financial institutions sold mortgages in a deceptive manner — for example, by approving people for loans they couldn't really afford — then why should homeowners feel obliged to honor their commitments?
From a homeowner’s perspective, why should they stay in a home that is depreciating? Often times it’s possible to rent the same style home in the same area for half (or less) than their current mortgage payment. Assuming it takes years for the market to recover, the homeowner who sells their home via a short sale now will be far ahead of the person who ‘stuck it out’.
Ihor Pochay
REALTOR / SHORT SALE SPECIALIST
Tarbell, Realtors
Cell: (562) 334-7393
Off: (909) 629-6186 Ext. 339
Fax: (909) 629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
Selling your home through a short sale doesn’t need to be a shameful, life-ruining experience. Sometimes short selling your mortgage simply makes smart economic sense, especially for homeowners who find themselves "upside down" — that is, they owe more on their mortgage than their house is worth.
Late last year, CNBC financial guru Jim Cramer was telling homeowners to ‘Just Walk Away.’ (Watch the video on YouTube.com)
We are clearly in uncharted waters. The current housing crisis is different from all the previous housing recessions. It is well known that many financial institutions sold mortgages in a deceptive manner — for example, by approving people for loans they couldn't really afford — then why should homeowners feel obliged to honor their commitments?
From a homeowner’s perspective, why should they stay in a home that is depreciating? Often times it’s possible to rent the same style home in the same area for half (or less) than their current mortgage payment. Assuming it takes years for the market to recover, the homeowner who sells their home via a short sale now will be far ahead of the person who ‘stuck it out’.
Ihor Pochay
REALTOR / SHORT SALE SPECIALIST
Tarbell, Realtors
Cell: (562) 334-7393
Off: (909) 629-6186 Ext. 339
Fax: (909) 629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
Tuesday, January 6, 2009
A National Epidemic of Short Sales
Are you stressed out about mortgage payments? Do you think your only option is a foreclosure? Is a short sale right for you? Millions and millions of homeowners are asking themselves the same questions. It is projected that more than 20,000,000 homeowners will have negative equity in their homes in the very near future. In other words, they will owe more on their homes than the homes are actually worth. More than 2.9 million homes have foreclosed in the last three years and the number is only expected to grow. Expect the effects of the estate recession to ripple for years to come.
What can you do now?
There is expected to be massive tsunami of homeowners who are simply making the decision to sell their homes through a short sale vs. staying in a home, hoping that one day it may be worth what they paid.
No one is safe. News stories from across the country tell the tales of both celebrities and average Americans who are all considering selling their homes through a short sale.
Selling your home through a short sale doesn’t need to be shameful, life-ruining experience. Sometimes short selling your mortgage simply makes smart economic sense, especially for homeowners who find themselves "upside down" — that is, they owe more on their mortgage than their house is worth.
To find out if you qualify to sell your home in a Short Sale transaction, call me today at (562) 334-7393.
Ihor Pochay
REALTOR / SHORT SALE SPECIALIST
Tarbell, Realtors
Cell: (562) 334-7393
Off: (909) 629-6186 Ext. 339
Fax: (909) 629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
What can you do now?
There is expected to be massive tsunami of homeowners who are simply making the decision to sell their homes through a short sale vs. staying in a home, hoping that one day it may be worth what they paid.
No one is safe. News stories from across the country tell the tales of both celebrities and average Americans who are all considering selling their homes through a short sale.
Selling your home through a short sale doesn’t need to be shameful, life-ruining experience. Sometimes short selling your mortgage simply makes smart economic sense, especially for homeowners who find themselves "upside down" — that is, they owe more on their mortgage than their house is worth.
To find out if you qualify to sell your home in a Short Sale transaction, call me today at (562) 334-7393.
Ihor Pochay
REALTOR / SHORT SALE SPECIALIST
Tarbell, Realtors
Cell: (562) 334-7393
Off: (909) 629-6186 Ext. 339
Fax: (909) 629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
Subscribe to:
Posts (Atom)