Have we reached the bottom of the Real Estate Market downturn</= title> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"PlaceType"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"PlaceName"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"place"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"address"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"City"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"Street"/>  <style>  </style>  </head> <body lang=3DEN-US link=3Dblue vlink=3Dpurple style=3D'tab-interval:.5in'> <div class=3DSection1> <st1:place = w:st=3D"on"><st1:PlaceName w:st=3D"on">Flagler</st1:PlaceName> <st1:PlaceType w:s= t=3D"on">County</st1:PlaceType></st1:place> Real Estate News and Views<o:p></o:p> Volume 8 Is= sue 8 <o:p> </o:p> Published b= y: Ben and <st1:Street w:st=3D"on"><s= t1:address w:st=3D"on">Marie Lane</st1:address></st1:Street><o:p></o:p> TwoL= anes<o:p= ></o:p> <o:p> </o:p> In the last several months we have been asked more que= stions about Short Sales than any other aspect of our Real Estate market in <st1:p= lace w:st=3D"on"><st1:PlaceName w:st=3D"on">Flagler</st1:PlaceName> <st1:PlaceTy= pe w:st=3D"on">County</st1:PlaceType></st1:place>. Both buyers and sellers wa= nt to know what Short Sales are, and what they could mean to them. <o:p> </o:p> Well, it’s no wonder Short Sales are a hot topic= . As of this writing, fully 28% of single family homes on the market in <st1:Pla= ceName w:st=3D"on">Palm</st1:PlaceName> <st1:PlaceType w:st=3D"on">Coast</st1:Plac= eType> are Short Sales, and 22% of the homes in <st1:place w:st=3D"on"><st1:PlaceN= ame w:st=3D"on">Flagler</st1:PlaceName> <st1:PlaceType w:st=3D"on">County</st1= :PlaceType></st1:place>. The statistics when based on list price are interestin= g. In <st1:place w:st=3D"on"><st1:PlaceName w:st=3D"on">Palm</st1:PlaceName> <st1:PlaceType = w:st=3D"on">Coast</st1:PlaceType></st1:place>, single family residences listed $200,000 or less the ratio of Short Sales is 50%, between $200,000 and $300,000 it is 13%, between $300,000 and $500,000= it is 8% and over $500,000 it is 4%. (= based on those listed in the Flagler County Board of Realtors MLS). <o:p> </o:p> <o:p> </o:p> What is a Short Sale= ?<o:p></o:p> Simply put, a Short Sale is transaction in which a pro= perty is listed at a price that is less than what the seller still owes the mortg= age holder. For the Short Sale to be completed the loss mitigation department of the mortgage holder has to agree to a sale price that is less than loan balance. <o:p> </o:p> Even though this lower sale price is less than what is= owed on the property it still must reflect a fair market value. The mortg= age holder will require an Appraisal, CMA (comparative market ana= lysis) or BPO (Broker’s Price Opinion) to make certain the proposed sale pri= ce is in line with other similar sold properties in the market. <o:p> </o:p> So, what does a Shor= t Sale mean to a Seller and Buyer? <o:p></o:p> Why would a lender a= gree to a Short Sale?<o:p></o:p> <o:p> </o:p> LENDER:<o:p></o:p> -Mortgage Holders are in the business to loan money, n= ot manage properties. If a particular property is heading toward Foreclosure t= hey could easily lose more time and money in those proceedings than they will i= n a Short Sale transaction. <o:p> </o:p> SELLER:<o:p></o:p> -The seller gets out of the stress and frustration of = owning a property they cannot afford to keep. = ; <o:p> </o:p> <o:p> </o:p> BUYER:<o:p></o:p> -The buyer purchases a good property for a fair market price. <o:p> </o:p> What are some things Sellers and Buyers can expect to encounter in a Short Sale?<o:p></o:p></spa= n> <o:p> </o:p> SELLER:<o:p></o:p> Opinions differ, but we feel it is best to talk to the= Loss Mitigation Department of your Mortgage Holder early and often. Give them a brief summary of your situation. Discover what they expect and want from yo= u. <o:p> </o:p> The reasons you give the Loss Mitigation Department fo= r your Short Sale are critical. Some reasons like job loss, divorce, death of a sp= ouse or illness may be acceptable to the lender, others such as poor credit management or being fired from a job may not be justifiable. <o:p> </o:p> While all lenders are different, they all require some documentation from the seller before they will even consider a Short Sale. = This documentation can include a hardship letter detailing the specifics of the situation to warrant a Short Sale, W-2’s or pay checks stubs, a perso= nal financial statement., tax returns, bank statemen= ts, a monthly budget assessment, a listing agreement, a signed <st1:place w:st=3D= "on"><st1:City w:st=3D"on">Sale</st1:City></st1:place> and Purchase Contract and a prelim= inary HUD. Remember each lender is different, however each demands, and expects a= ll documentation they request to be presented. If any information requested is= not supplied or supplied incorrectly it will at least delay the transaction, and perhaps permanently derail it. <o:p> </o:p> -There could be tax implications for the seller. In ce= rtain situations the amount of the loan “forgiven” could be interpret= ed as “income” by the IRS. Talk to a tax attorney or your accounta= nt. <o:p> </o:p> -Your credit could be negatively impacted. <o:p> </o:p> -If you have assets such as stocks, bonds, a well payi= ng job some lenders may not let you just walk away with a Short Sale. <o:p> </o:p> -Short Sales typically take longer than traditional transactions. Expect to wait. The wait can be stressful and frustrating. <o:p> </o:p> <o:p> </o:p> BUYERS:<o:p></o:p> <o:p> </o:p> -Before you even start previewing short sales go to yo= ur own lender and get pre-approved for a certain amount. Most Short Sale mortgage holders require this letter, and also “proof of funds” for the = cash portion of your offer. <o:p> </o:p> -The signed <st1:place w:st=3D"on"><st1:City w:st=3D"o= n">Sale</st1:City></st1:place> and Purchase Contract is a legally enforceable contract between you and the seller, but it is also contingent = on Mortgage Holder approval, this can mean several things. The lender may not accept the offer price, they may co= unter. The counter offer can be less, equal to or even more than the list price.</= p> The lender can add more conditions to the sale such as= the right to renegotiate the contract at any stage, or include a clause giving = them the right to cancel the contract at any time if certain criteria are not me= t. <o:p> </o:p> Closing may take longer than a traditional contract. D= elays can be frustrating but they can also potentially cost you money. In contrac= ts time frames usually start from the effective date, which is the date both buyer and selle= r have signed and delivered the same version of the contract. Many actions, and ti= me frames both buyer and seller must make to satisfy terms of the contract sta= rt from this date. However, if the lender is slow to respond to the offer, or rejects the offer, the buyer can be in the situation where they have already paid for such things as inspections, surveys, and appraisals. A clause in t= he FAR Short Sale Addendum addresses this situation by allowing all time frame= s to start from the date of lender = approval, not effective date. Dis= cuss this option with a professional. <o:p> </o:p> Some lenders may require the buyer to pay for some clo= sing costs traditionally paid by the seller. <o:p> </o:p> Most if not all Short Sales are sold “as is”. “As Is= 221; means the lender, or seller, will not pay for any repairs or necessary repl= acements that are uncovered in any inspections. It may be a good idea to make sure y= our <st1:place w:st=3D"on"><st1:City w:st=3D"on">Sale</st1:City></st1:place> and Purchase = Contract allows you to do any and all inspections you deem necessary and gives you t= he right to cancel the contract and have your earnest money returned if you fi= nd anything in the inspections that you don’t like. <o:p> </o:p> <o:p> </o:p> This list is by no means all inclusive. We think it demonstrates that both buyer and seller need to do their homework before, a= nd be patient during a Short Sale transaction. The process can try your patien= ce, but it can also be rewarding for the seller to be rid of a property they ca= nnot afford, and for the buyer to purchase a property at a good value. In our business we call that at “win-win”, and that is always the very= best transaction. <o:p> </o:p> <o:p> </o:p> Need More Information:<o:p></o:p> Contact Us:<o:p></o:p> Email: <a href=3D"mailto:twolanes@twolanes.net">= twolanes@twolanes.net</a>,<o:p></o:p> Phone: Ben 386-931-8531, Marie 386-931-5727<o:p>= </o:p> </div> </body> </html>

MIME-Version: 1.0 Content-Location: file:///C:/2D6C18D8/volume8issue8.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" Have we reached the bottom of the Real Estate Market downturn</= title> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"PlaceType"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"PlaceName"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"place"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"address"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"City"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"Street"/>  <style>  </style>  </head> <body lang=3DEN-US link=3Dblue vlink=3Dpurple style=3D'tab-interval:.5in'> <div class=3DSection1> <st1:place = w:st=3D"on"><st1:PlaceName w:st=3D"on">Flagler</st1:PlaceName> <st1:PlaceType w:s= t=3D"on">County</st1:PlaceType></st1:place> Real Estate News and Views<o:p></o:p> Volume 8 Is= sue 8 <o:p> </o:p> Published b= y: Ben and <st1:Street w:st=3D"on"><s= t1:address w:st=3D"on">Marie Lane</st1:address></st1:Street><o:p></o:p> TwoL= anes<o:p= ></o:p> <o:p> </o:p> In the last several months we have been asked more que= stions about Short Sales than any other aspect of our Real Estate market in <st1:p= lace w:st=3D"on"><st1:PlaceName w:st=3D"on">Flagler</st1:PlaceName> <st1:PlaceTy= pe w:st=3D"on">County</st1:PlaceType></st1:place>. Both buyers and sellers wa= nt to know what Short Sales are, and what they could mean to them. <o:p> </o:p> Well, it’s no wonder Short Sales are a hot topic= . As of this writing, fully 28% of single family homes on the market in <st1:Pla= ceName w:st=3D"on">Palm</st1:PlaceName> <st1:PlaceType w:st=3D"on">Coast</st1:Plac= eType> are Short Sales, and 22% of the homes in <st1:place w:st=3D"on"><st1:PlaceN= ame w:st=3D"on">Flagler</st1:PlaceName> <st1:PlaceType w:st=3D"on">County</st1= :PlaceType></st1:place>. The statistics when based on list price are interestin= g. In <st1:place w:st=3D"on"><st1:PlaceName w:st=3D"on">Palm</st1:PlaceName> <st1:PlaceType = w:st=3D"on">Coast</st1:PlaceType></st1:place>, single family residences listed $200,000 or less the ratio of Short Sales is 50%, between $200,000 and $300,000 it is 13%, between $300,000 and $500,000= it is 8% and over $500,000 it is 4%. (= based on those listed in the Flagler County Board of Realtors MLS). <o:p> </o:p> <o:p> </o:p> What is a Short Sale= ?<o:p></o:p> Simply put, a Short Sale is transaction in which a pro= perty is listed at a price that is less than what the seller still owes the mortg= age holder. For the Short Sale to be completed the loss mitigation department of the mortgage holder has to agree to a sale price that is less than loan balance. <o:p> </o:p> Even though this lower sale price is less than what is= owed on the property it still must reflect a fair market value. The mortg= age holder will require an Appraisal, CMA (comparative market ana= lysis) or BPO (Broker’s Price Opinion) to make certain the proposed sale pri= ce is in line with other similar sold properties in the market. <o:p> </o:p> So, what does a Shor= t Sale mean to a Seller and Buyer? <o:p></o:p> Why would a lender a= gree to a Short Sale?<o:p></o:p> <o:p> </o:p> LENDER:<o:p></o:p> -Mortgage Holders are in the business to loan money, n= ot manage properties. If a particular property is heading toward Foreclosure t= hey could easily lose more time and money in those proceedings than they will i= n a Short Sale transaction. <o:p> </o:p> SELLER:<o:p></o:p> -The seller gets out of the stress and frustration of = owning a property they cannot afford to keep. = ; <o:p> </o:p> <o:p> </o:p> BUYER:<o:p></o:p> -The buyer purchases a good property for a fair market price. <o:p> </o:p> What are some things Sellers and Buyers can expect to encounter in a Short Sale?<o:p></o:p></spa= n> <o:p> </o:p> SELLER:<o:p></o:p> Opinions differ, but we feel it is best to talk to the= Loss Mitigation Department of your Mortgage Holder early and often. Give them a brief summary of your situation. Discover what they expect and want from yo= u. <o:p> </o:p> The reasons you give the Loss Mitigation Department fo= r your Short Sale are critical. Some reasons like job loss, divorce, death of a sp= ouse or illness may be acceptable to the lender, others such as poor credit management or being fired from a job may not be justifiable. <o:p> </o:p> While all lenders are different, they all require some documentation from the seller before they will even consider a Short Sale. = This documentation can include a hardship letter detailing the specifics of the situation to warrant a Short Sale, W-2’s or pay checks stubs, a perso= nal financial statement., tax returns, bank statemen= ts, a monthly budget assessment, a listing agreement, a signed <st1:place w:st=3D= "on"><st1:City w:st=3D"on">Sale</st1:City></st1:place> and Purchase Contract and a prelim= inary HUD. Remember each lender is different, however each demands, and expects a= ll documentation they request to be presented. If any information requested is= not supplied or supplied incorrectly it will at least delay the transaction, and perhaps permanently derail it. <o:p> </o:p> -There could be tax implications for the seller. In ce= rtain situations the amount of the loan “forgiven” could be interpret= ed as “income” by the IRS. Talk to a tax attorney or your accounta= nt. <o:p> </o:p> -Your credit could be negatively impacted. <o:p> </o:p> -If you have assets such as stocks, bonds, a well payi= ng job some lenders may not let you just walk away with a Short Sale. <o:p> </o:p> -Short Sales typically take longer than traditional transactions. Expect to wait. The wait can be stressful and frustrating. <o:p> </o:p> <o:p> </o:p> BUYERS:<o:p></o:p> <o:p> </o:p> -Before you even start previewing short sales go to yo= ur own lender and get pre-approved for a certain amount. Most Short Sale mortgage holders require this letter, and also “proof of funds” for the = cash portion of your offer. <o:p> </o:p> -The signed <st1:place w:st=3D"on"><st1:City w:st=3D"o= n">Sale</st1:City></st1:place> and Purchase Contract is a legally enforceable contract between you and the seller, but it is also contingent = on Mortgage Holder approval, this can mean several things. The lender may not accept the offer price, they may co= unter. The counter offer can be less, equal to or even more than the list price.</= p> The lender can add more conditions to the sale such as= the right to renegotiate the contract at any stage, or include a clause giving = them the right to cancel the contract at any time if certain criteria are not me= t. <o:p> </o:p> Closing may take longer than a traditional contract. D= elays can be frustrating but they can also potentially cost you money. In contrac= ts time frames usually start from the effective date, which is the date both buyer and selle= r have signed and delivered the same version of the contract. Many actions, and ti= me frames both buyer and seller must make to satisfy terms of the contract sta= rt from this date. However, if the lender is slow to respond to the offer, or rejects the offer, the buyer can be in the situation where they have already paid for such things as inspections, surveys, and appraisals. A clause in t= he FAR Short Sale Addendum addresses this situation by allowing all time frame= s to start from the date of lender = approval, not effective date. Dis= cuss this option with a professional. <o:p> </o:p> Some lenders may require the buyer to pay for some clo= sing costs traditionally paid by the seller. <o:p> </o:p> Most if not all Short Sales are sold “as is”. “As Is= 221; means the lender, or seller, will not pay for any repairs or necessary repl= acements that are uncovered in any inspections. It may be a good idea to make sure y= our <st1:place w:st=3D"on"><st1:City w:st=3D"on">Sale</st1:City></st1:place> and Purchase = Contract allows you to do any and all inspections you deem necessary and gives you t= he right to cancel the contract and have your earnest money returned if you fi= nd anything in the inspections that you don’t like. <o:p> </o:p> <o:p> </o:p> This list is by no means all inclusive. We think it demonstrates that both buyer and seller need to do their homework before, a= nd be patient during a Short Sale transaction. The process can try your patien= ce, but it can also be rewarding for the seller to be rid of a property they ca= nnot afford, and for the buyer to purchase a property at a good value. In our business we call that at “win-win”, and that is always the very= best transaction. <o:p> </o:p> <o:p> </o:p> Need More Information:<o:p></o:p> Contact Us:<o:p></o:p> Email: <a href=3D"mailto:twolanes@twolanes.net">= twolanes@twolanes.net</a>,<o:p></o:p> Phone: Ben 386-931-8531, Marie 386-931-5727<o:p>= </o:p> </div> </body> </html>