Selling Short... Your best option??? Part 2

A guy on fox 25 News the other morning was talking about short sales...    he said was that people overpaid for their homes and in some cases find themselves short....    really?????

Most likely they didn't overpay for the home...  It was market value at the time!    Saying they overpaid makes it sound as if it they saw they did something wrong..... They didn't!    It was the market!!!!...
When the market turns around, .. and it will... will those folks who have purchased today be said to have underpaid????      I don't think so....  

Okay, off my box....  and on to the topic...

So, you "overpaid" for your home and find your self in a financial situation where you can't keep up with the mortgage payments...  what do you do?

you  have a few choices to avoid foreclosure....    as stated in an earlier blog .... BUT,  the one choice you don't have is to hesitate....

If your interest rate is the culprit and you could afford the payments if they were only a bit lower.. you might think about re-negotiating rate and terms with the lender....  a "loan modification"....  the caviat here...if the interest rate is lowered or the term extended and you still can't afford it  ..... it's not your option....

or, you could work out a deed in lieu of foreclosure

or,  a "short sale" may be your option.....

A lot of talk going on now is that the lenders are being tough and not considering "short sales". ..   more likely, they are really scrutinizing whether or not a "short sale" is warranted.

• do you have a hardship?
• do you have a ready, able and willing buyer for your property?   
•  is the offer reasonable?
•  is the offer arms length?

If you chose the short sale option, get your home on the market with a Realtor experienced in short sale negotiations.  Price it correctly!     ... Accept the best offer.....  Make sure the buyer is preapproved and can wait.... these things can take some time.... (you don't want to get this thing approved only to find out the buyer can't move forward )  Get your financial paperwork and that hardship letter in order....  your Realtor will provide you with a list of things to have ready....have them ready and be ready to update as necessary....

Ultimately, the option you chose will depend on your personal situation.   

Nobody wants to find themselves facing  foreclosure.... but if you see it coming, you can hit it head on..
and if you do..... you will come out the winner....  emotionally and financially....


Coming Soon...

Part 3       Buying a Short Sale - Is it for You?


contact me if you have any questions...   Carol-Ann
cal@alandcal.com 508-494-9061

Have You Seen This?....and Wondered? Subject to Short Sale Approval ( Part 1)

The subject of  "Short Sales" is always coming up.   We are asked what it means, how and why it's done.

The nutshell answer...

when the sale proceeds are less than the money owed to the lender of the property, and the lender releases the owner of his obligation to pay the entire debt so that the owner can sell the property, we call it a "Short Sale".

For example....

the owner of a property owes a lender (or two) a total of $300,000.    Current market value on the property is $250,000.    if they don't have $50,000 plus closing costs, they can not sell and satisfy the liens on the property.    

So, in order to avoid foreclosure, the owner may put the property up for sale for less than he owes, procure an offer and submit it to the lender(s) with a request that he be released of his obligation to pay the entire debt.

The lender may agree to this to avoid the foreclosure as well.   Why?   Foreclosure is costly to them and they will likely only get market value anyway.   

With a short sale, the seller must have the lender's approval to convey the property.    If the lender does go along with the process, it saves the seller not only the cost, but the embarrassment and emotional drain of a foreclosure... there maybe less credit damage as well.

If you have questions, contact me...we have plenty of experience and success on both the selling and buying side of short sales.

next - 

Part 2     Selling your Home - Is Short Sale YOUR Best Option?
Part 3     Buying a Short Sale - Is it for You?

Painting.... Does it add value??

What you normally find on the cost vs value charts is things like kitchen/ bath renovations or deck replacements...but

2010-2011 Cost vs. Value Chart


The question is does freshening up your home with paint add value?   

with Christmas coming and my addiction to HGTV...
I gently (really Cal??)  urged Al to do a dining room makeover....
I thought, No Big deal really......
We are Realtors for crying out loud!    We know that bright homes are a Giant attraction for people!

... a little paint... new light... curtains...just brighten the place up a little.  

Well....it's done and that's all I'll say..other than, he did a great job....but,

Did we add value?

Probably not monetary value..
but what we really did, was improve the "sale-ability" of the home... and our life style at the same time....

and sale-ability is really important these days with so many homes on the market.....  it's the attraction that makes a buyer chose one home over another.... the more polished looking home with the perception of little to do, wins out every time....

so while we are all looking to gain value....
it's not just the monetary Value that  we need to consider....
sale-ability and lifestyle should be huge considerations on your list.   A fresh coat of paint is an easy, cost effective way to achieve this!
       
        and, oh by the way... 
        now the rest of the place looks shabby......

       should I wait till after Christmas to approach this??????

Today's Count, Al - 16...... The "fearless" Cat - just 2.....

They just keep coming, seeking refuge in this "warm" house....
 (trust me, just a bit warmer that outside! story for another day)..

We are learning..... looks like those very sneaky mice can just slip the cheese right out of the trap, laughing all the way to their dinner table..not only are we providing them with warm shelter, but dinner too!

So what to do here? It's not by poison.....not only bad for our cherished "mouser" but by the time the poison takes effect, the slippery little critter has gotten into the wall somewhere and falls prey to the stuff.... and yep, you get to live with the odor of his demise for quite some time. not acceptable..

We've found the best way to trap the thing is to use peanut butter or chocolate.... put that on the old fashion inexpensive trap...set two side by side so he can't jump over them.....and wait... not too long in this case.

Where there is one, there is many.    A couple of other tips.

Eliminate all openings through which they can enter a structure.
Seal cracks and openings in foundations, openings for water pipes, vents and utilities .
Use smooth patching materials so they can't pick at them.
Doors, windows and screens should fit tightly.
Mouse proof all stored, processed food.   Use airtight containers.

Oh....  and by the way.... this is the best part.... when either Al or the Cat gets one....
they feel the need to show it to me!