For those of you that are considering a real estate short sale transaction for your primary residence, 2012 is the last year that the Mortgage Forgiveness Debt Relief Act of 2007 to get those tax consequences waived.
The key to a short sale involves your ability to offer a property for less than the loan amount and be approved for that sale by the end of 2012. With short sales taking 3-7 months on average, you cannot afford to wait to get that home on the market.
Let us discuss how we can help you get your home sold!
Here is a good reference link http://www.ehow.com/about_6582533_real-short-sale-tax-consequences.html
Steve Armstrong, Realtor Certifying Agent, Florida Green Builders Coalition Smith & Associates Real Estate http://www.baytobeaches.com/
Showing posts with label Short Sales. Show all posts
Showing posts with label Short Sales. Show all posts
Monday, March 19, 2012
Saturday, January 22, 2011
Selling your property as a Short Sale
Many of us in this market come the realization that our home that we have spent time effort and money on is no longer worth in the market what we paid or invested. A " short sale" is a financial sale of a property where the sale price is less than the mortgage value and the owner is coming up "short" on being able to make the transaction work.
At times a difficult decision must address our ability to afford our home or our need to relocate for work. We have worked with many individuals making these painful decisions on what to do next. Here are a few pointers to get started:
Contact your Lender- It is important to document and disclose your challenges to the owner of your mortgage. Many times a lender will allow you to "modify" your original terms and conditions to keep you in the property If you are attempting to stay current on your obligation, many lenders look at this favorably.
Ask for a Short Sale Package- If you are convinced that you need or want to sell the property. As for a package which will outline the documentation and requirements will place on you to sell your home.
Don't fall Prey to "Short Sale Negotiators"- Always evaluate the "paid for" advice you are receiving and the cost associated with having someone perform the the short sale paperwork for you. There are qualified individuals as well as many dishonest individuals to look out for.
List the Property at a Market price- The lenders will not consider your short sale package until you have an offer in hand. Don't wait if you have started the short sale process, get your home on the market with the expectation that the process doesn't really start until you have accepted an offer. Additionally the final sales price will be based upon the lenders assessment of value by a third party evaluation.
Short Sale Contingency- Remember that the final sale of the property is contingent upon you accepting the terms and conditions that the lender has outlined. The bank's offer to you needs to be inline with what you are willing to accept. The Short Sale Addendum reserves your right to reject the deal based upon the lenders terms and condition.
Contact Caryn or Steve if you have question. we will be happy to discuss how we can help as well as point you the resources that can assist you. A fair experience honest approach to a short sale will make this process much less painful.
Steve Armstrong, Realtor GRI
http://www.uniquetampahomes.com/
At times a difficult decision must address our ability to afford our home or our need to relocate for work. We have worked with many individuals making these painful decisions on what to do next. Here are a few pointers to get started:
Contact your Lender- It is important to document and disclose your challenges to the owner of your mortgage. Many times a lender will allow you to "modify" your original terms and conditions to keep you in the property If you are attempting to stay current on your obligation, many lenders look at this favorably.
Ask for a Short Sale Package- If you are convinced that you need or want to sell the property. As for a package which will outline the documentation and requirements will place on you to sell your home.
Don't fall Prey to "Short Sale Negotiators"- Always evaluate the "paid for" advice you are receiving and the cost associated with having someone perform the the short sale paperwork for you. There are qualified individuals as well as many dishonest individuals to look out for.
List the Property at a Market price- The lenders will not consider your short sale package until you have an offer in hand. Don't wait if you have started the short sale process, get your home on the market with the expectation that the process doesn't really start until you have accepted an offer. Additionally the final sales price will be based upon the lenders assessment of value by a third party evaluation.
Short Sale Contingency- Remember that the final sale of the property is contingent upon you accepting the terms and conditions that the lender has outlined. The bank's offer to you needs to be inline with what you are willing to accept. The Short Sale Addendum reserves your right to reject the deal based upon the lenders terms and condition.
Contact Caryn or Steve if you have question. we will be happy to discuss how we can help as well as point you the resources that can assist you. A fair experience honest approach to a short sale will make this process much less painful.
Steve Armstrong, Realtor GRI
http://www.uniquetampahomes.com/
Tuesday, March 23, 2010
Are Real Estate Auctions a "good deal" vs a Short Sale or Foreclosure?
With all of the hype and all of the opportunities for real estate deals, I have recently been on a personal mission to find a piece of investment real estate. As a result, I have spend a lot of time researching properties to find a "good deal"
My two recent attempts to get a deal made me think that maybe there are better deals in the foreclosure and short sale market, more so than an auction.
Here is what I experienced:
I recently attended the Signature building in downtown St. Petersburg auction, where it was advertised and promoted that you could get 50% off the previously advertised prices. Signature is a very impressive downtown condo project that offers a unique design and incredible views. We had set our bidding limit for a high unit with South facing Tampa Bay waterfront views at $310K, vs a minimum bid of $220K for a two bedroom. Auction day came and we watched the frenzy as hundreds of bidders quickly passed our minimum bid within minutes. The worst part was that we researched each unit extensively to see which were the best units. The amazing part was that some of the worse units went for more than some of the best because people got caught up in the frenzy. After that experience, we we contacted to buy at the Auction prices,,,.
Our second attempt at a deal was a beach front condo in the other side of Florida where we bid up to a certain point and also researched the property. The bids came in and quickly surpassed the price that unit had sold for the previous year.
Bottom line is make sure you research the properties that you interested in. Make sure you evaluate the purchase history to see if you really are getting a good deal. Short sales and foreclosures may take longer, but may be a better way to get a great investment real estate deal.
Steve Armstrong, Realtor
Certifying Agent, Florida Green Builders Coalition
Smith & Associates Real Estate
http://www.UniqueTampaHomes.com
My two recent attempts to get a deal made me think that maybe there are better deals in the foreclosure and short sale market, more so than an auction.
Here is what I experienced:
I recently attended the Signature building in downtown St. Petersburg auction, where it was advertised and promoted that you could get 50% off the previously advertised prices. Signature is a very impressive downtown condo project that offers a unique design and incredible views. We had set our bidding limit for a high unit with South facing Tampa Bay waterfront views at $310K, vs a minimum bid of $220K for a two bedroom. Auction day came and we watched the frenzy as hundreds of bidders quickly passed our minimum bid within minutes. The worst part was that we researched each unit extensively to see which were the best units. The amazing part was that some of the worse units went for more than some of the best because people got caught up in the frenzy. After that experience, we we contacted to buy at the Auction prices,,,.
Our second attempt at a deal was a beach front condo in the other side of Florida where we bid up to a certain point and also researched the property. The bids came in and quickly surpassed the price that unit had sold for the previous year.
Bottom line is make sure you research the properties that you interested in. Make sure you evaluate the purchase history to see if you really are getting a good deal. Short sales and foreclosures may take longer, but may be a better way to get a great investment real estate deal.
Steve Armstrong, Realtor
Certifying Agent, Florida Green Builders Coalition
Smith & Associates Real Estate
http://www.UniqueTampaHomes.com
Friday, January 1, 2010
2010 More Great Buying Opportunities in Tampa Bay!
As 2010 rolls in, many of us are looking for opportunities for in real estate for investments, homes, offices and vacation homes.
On a positive note for buyers, prices have dropped in the Tampa Bay area further than other major metropolitan area according to the Case Shiller Index.
Case Shiller shocker: Tampa Bay is biggest monthly home price loser
Sellers will continue to struggle with the challenge of foreclosures and short sales consuming the market.
When buying property, always be aware that there are challenges when working with a Short Sale or REO (Real Estate Owned) property. It is in your best interest to work with experience representation, mortgage bankers, and title companies in the Short Sale or REO arenas. Short Sales and Foreclosures can be frustrating but also can be profitable!
Happy 2010!
Steve Armstrong, Realtor
Certifying Agent, Florida Green Builders Coalition
Smith & Associates Real Estate
http://www.UniqueTampaHomes.com
On a positive note for buyers, prices have dropped in the Tampa Bay area further than other major metropolitan area according to the Case Shiller Index.
Case Shiller shocker: Tampa Bay is biggest monthly home price loser
Sellers will continue to struggle with the challenge of foreclosures and short sales consuming the market.
When buying property, always be aware that there are challenges when working with a Short Sale or REO (Real Estate Owned) property. It is in your best interest to work with experience representation, mortgage bankers, and title companies in the Short Sale or REO arenas. Short Sales and Foreclosures can be frustrating but also can be profitable!
Happy 2010!
Steve Armstrong, Realtor
Certifying Agent, Florida Green Builders Coalition
Smith & Associates Real Estate
http://www.UniqueTampaHomes.com
Tuesday, February 3, 2009
Frustrated with Short Sales?
I have recently run into a few frustrated buyers when trying to get a deal on a short sale.As an agent in the game, I very much feel the pain of s short sale.
Everyone reads about what a great deal a 'short sale' is and how distressed properties can be acquired at 50 cents on the dollar.On short sales, it takes Patience and being mindful that the bank is going to do everything they can to reduce their losses. Sometimes this means waiting for an offer that is closer to their appraised value (while the property value continues to slide) or sometimes it means just letting a property foreclose.If you are in a hurry to get into a house, a short sale is not usually something that can happen quickly.
When reviewing short sales, a good note to look for is "approved short sale" which means that someone has already tried to get the property and the bank has agreed to that sale price. Keep in mind, just because it is "approved" that doesn't necessarily mean that this house is being sold as a deal. Evaluate the price and ask your Realtor to provide some competitive data (also do a quick Zillow search). Be mindful also that a price on a "short sale" that has not been "approved" may not equal the value or sales price of that home--generally the bank had done NO due diligence into the home value or what they would be willing to accept as a loss.
Steve ArmstrongRealtor
Smith & Associates Real Estate
http://www.UniqueTampaHomes.com
Everyone reads about what a great deal a 'short sale' is and how distressed properties can be acquired at 50 cents on the dollar.On short sales, it takes Patience and being mindful that the bank is going to do everything they can to reduce their losses. Sometimes this means waiting for an offer that is closer to their appraised value (while the property value continues to slide) or sometimes it means just letting a property foreclose.If you are in a hurry to get into a house, a short sale is not usually something that can happen quickly.
When reviewing short sales, a good note to look for is "approved short sale" which means that someone has already tried to get the property and the bank has agreed to that sale price. Keep in mind, just because it is "approved" that doesn't necessarily mean that this house is being sold as a deal. Evaluate the price and ask your Realtor to provide some competitive data (also do a quick Zillow search). Be mindful also that a price on a "short sale" that has not been "approved" may not equal the value or sales price of that home--generally the bank had done NO due diligence into the home value or what they would be willing to accept as a loss.
Steve ArmstrongRealtor
Smith & Associates Real Estate
http://www.UniqueTampaHomes.com
Tuesday, January 20, 2009
The Short Sale Process reviewed
I continue to get more questions about how Short Sales work. I am participating in the Short Sale process on both sides of the transaction. I am working with buyers interested in a good deal and sellers needing to get out of a property.
There are 2 key steps for a seller in getting their home listed as a short sale:
Approval to Market Home as a short sale
The bank must agree that they will entertain a short sale offer on a property based upon the seller submitting the information about their financial situation, property information, and a hardship letter.
Approving an offer on a short sale
Subsequent to the approval to market the home as a short sale, the seller can then call the listing a short sale and apply a price to the property. The bank does not review the short sale price unless and until an offer comes in. At this time the bank does either a BPO (Broker Price Opinion) or an appraisal.
Once the bank has created a value to the home, the listing agent can advertise a short sale as an "Approved Short Sale". A bank reserves the right to keep offers coming in while the property is being marketed to ensure they maximize the value and reduce their losses.
Remember there is still an outstanding issue of a deficiency notice where the seller may still be responsible for the loss on the property. The seller may need to be prepared to negotiate with the bank once the offer comes in.
Many times the paperwork does not move quickly in a short sale but that is more bank specific. Generally plan on 3 to 6 months to get a short sale sold.
There are 2 key steps for a seller in getting their home listed as a short sale:
Approval to Market Home as a short sale
The bank must agree that they will entertain a short sale offer on a property based upon the seller submitting the information about their financial situation, property information, and a hardship letter.
Approving an offer on a short sale
Subsequent to the approval to market the home as a short sale, the seller can then call the listing a short sale and apply a price to the property. The bank does not review the short sale price unless and until an offer comes in. At this time the bank does either a BPO (Broker Price Opinion) or an appraisal.
Once the bank has created a value to the home, the listing agent can advertise a short sale as an "Approved Short Sale". A bank reserves the right to keep offers coming in while the property is being marketed to ensure they maximize the value and reduce their losses.
Remember there is still an outstanding issue of a deficiency notice where the seller may still be responsible for the loss on the property. The seller may need to be prepared to negotiate with the bank once the offer comes in.
Many times the paperwork does not move quickly in a short sale but that is more bank specific. Generally plan on 3 to 6 months to get a short sale sold.
Friday, January 16, 2009
Evaluating Pricing on Short Sales
As I continue to work with clients on finding incredible real estate deals in Tampa and St. Petersburg, I am always being asked about "Short Sales" and Short Sale pricing. For those of you that are not familiar with short sales, check out http://www.uniquetampahomes.com/shortsale for some basics on them.
Basically a good concept to remember is that there are basically 2 key categories of short sale and the important phase to look for is "Bank Approved". When you see "Bank Approved" that can help identify whether the price of a short sale and the terms has been reviewed by the bank. Generally Banks do not review or approve Short Sale pricing until there is a valid offer presented. Sometimes these offers take in excess of 6 months for the Bank to review and do an approval.
If the bank has not approved a price, feel free to make an offer on the home at a price you deem is reasonable. One caveat here is that the bank will continue to entertain other offers during the time that they care considering your offer. As a result, you might find that you have waited for 5 months for someone to offer a better price. When the Bank Approved language appears on a listing, it doesn't always mean that it is a deal, but it does tell you what the bank has agreed to take to get this home sold.
Basically a good concept to remember is that there are basically 2 key categories of short sale and the important phase to look for is "Bank Approved". When you see "Bank Approved" that can help identify whether the price of a short sale and the terms has been reviewed by the bank. Generally Banks do not review or approve Short Sale pricing until there is a valid offer presented. Sometimes these offers take in excess of 6 months for the Bank to review and do an approval.
If the bank has not approved a price, feel free to make an offer on the home at a price you deem is reasonable. One caveat here is that the bank will continue to entertain other offers during the time that they care considering your offer. As a result, you might find that you have waited for 5 months for someone to offer a better price. When the Bank Approved language appears on a listing, it doesn't always mean that it is a deal, but it does tell you what the bank has agreed to take to get this home sold.
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