Help With Short Sale

Selling a home in metro Detroit continues to be an uphill battle…By Contel Bradford

by averypiantedosi on May 17, 2010

Zillow.com estimates that over 450 homes were sold in Michigan in February. That number may seem encouraging, but it is small when compared to states such as Arizona and California. Selling property can be tough in this economy, and metro Detroit sellers are all too familiar with the struggle.

“Home prices have dropped so much (that) no one wants to pay what your house is worth,” said Pamela Ewert, who, along with her husband, spent nearly four years trying to sell their home. “We had it listed off and on during that time.”

In addition to the economy, Ewert said the difficulties she experienced were due to factors out of her control.

“We lived out in the country,” she revealed. “We did not have city water, just a well. No one offered us what we wanted for our house, so we waited. We finally sold our house after city water was run down our street. That is why we were finally able to sell our house. We did come down in price so we could sell it (for) less than we should have.”

The Ewerts’ story may have had a happy ending of sorts, but not all sellers are so fortunate. Michigan’s economy is struggling, and it is has made victims out of the local real estate market and the residents who are depending on it for survival. Avery Piantedosi, a short-sale specialist, says metro Detroit residents have had it the worst.

“People in the Detroit metro area have been hit hard by the current recession,” she said, “especially in the housing market. The average homeowner in this market owes up to 50 percent more than what their home is currently worth due to the declining values.”

With a firsthand view of what locals are experiencing, Piantedosi said that pay cuts, job losses and the fact that people simply can’t afford to pay their mortgages have put metro Detroit sellers in a bind. She said that some of her clients have resorted to moving to other states and even out of the country to find work.

“I get calls every day with all kinds of scenarios,” said Piantedosi. “Medical problems, mortgage payment doubled, can’t find work, etc. It’s a very difficult situation to find yourself in, and people don’t realize how bleak it’s been here in southeast Michigan for quite some time now.”

Selling a home in Michigan’s ailing economy is often compounded by expenses related to the seller’s next move, as well as other difficulties tied to the recession. For consumers in this situation, selling their home is a matter of obtaining financial security and stability. Attracting buyers can be a real challenge, but as Avery Piantedosi noted, effective options, although not as well-known, do exist.

“One option for them is what’s called a short sale,” said Piantedosi. “In a short sale, the borrower obtains a buyer to purchase the house at market value, and then petitions their lender to reduce what they owe on the home. People come to me seeking a solution to their dilemma, and this is the only option that is working. I am getting almost every single short sale approved that comes to me — sellers are able to move on with their lives, and buyers get a new home for an amazing price.”

Short sales make a viable alternative for metro Detroit residents trying to avoid foreclosure and get their houses off the market. However, there are no guarantees in terms of the lender approving the sale or forgiving the borrower’s debt. Piantedosi offered advice for locals who find that a short sale is out of the question.

“If that isn’t an option, then the single most important thing to remember when selling is to price according to the market,” she said. “Many real estate agents do their sellers a disservice by allowing them to list their home at an unrealistic price. Then, it doesn’t sell and the sellers wonder why and they blame the agent. Two things sell property: One is price, the other is condition. There is a buyer for every property out there … at the right price.”

To link directly to this article, click on: http://www.associatedcontent.com/article/2995402/selling_a_home_in_metro_detroit_continues.html?singlepage=true&cat=40

New guidelines for home short sales- The State

by averypiantedosi on February 7, 2010

Business

Sunday, Feb. 07, 2010

Financially stressed homeowners left hanging while their banks consider whether to approve the short sales of their properties may benefit from new federal guidelines.

In a short sale, the homeowner sells the property for less than what is owed on the mortgage, and the lender forgives the difference.

While short sales are considered an ideal solution for banks and for “underwater” homeowners on the verge of foreclosure, the deals often drag on as lenders take weeks or months to decide what to do.

Lenders now have a 10-day limit in which to respond to purchase offers.

The Treasury rules also call for sellers to receive $1,500 moving allowances – and for the sellers not to have to repay any of the debt.

Lenders will get $1,000 to cover administrative and processing costs.

Note: Only banks that owe the federal government TARP bailout funds must comply.

- (South Florida) Sun Sentinel

“Will a Quicker ‘Short Sale’ Process Bring About Healthier Home Sales in 2010?” Published on PR Web

by averypiantedosi on January 27, 2010

Will a Quicker ‘Short Sale’ Process Bring About Healthier Home Sales in 2010?
New government guidelines and bank programs combine to boost ‘short sales’

Scottsdale, AZ (Vocus/PRWEB ) January 5, 2010 — Is a housing turnaround possible in 2010? That’s what U.S. homeowners and real estate professionals are counting on when the government’s ‘short sale’ guidelines take effect in April—guidelines that are designed to “shorten” the short sale process. This is great news for the nation’s one out of every 10 homeowners currently behind on their mortgage payments.

“Short sales could be the most practical answer for homeowners looking to avoid foreclosure,” said Lisa Matykiewicz, a Gilbert, Arizona-based realtor who blogs at www.lisamatyhelps.com. “Previously, short sales have been anything but short over the past few years, with deals taking anywhere from 4-8 months to move through the process. Now, instead of facing foreclosure, homeowners could actually benefit from a tightened, expedient short sale process.”

Short sales could be the most practical answer for homeowners looking to avoid foreclosure

Previously, short sales have been anything but short over the past few years, with deals taking anywhere from 4-8 months to move through the process. Now, instead of facing foreclosure, homeowners could actually benefit from a tightened, expedient short sale process.

I think in 2010, you’re going to see a lot more short sales and hopefully reduced foreclosures

The push right now is for servicers to avoid foreclosure and the push is coming not only from the Obama Administration and the Treasury but also from the owners of the loans such as Fannie Mae and Freddie Mac. And the focus right now is on short sales.

When all the moving parts in a system start to work well together

then short sales can be facilitated faster, with a better win-win ratio for both sellers and buyers.

The federal guidelines are designed to accelerate procedures and agreements between lenders, real estate agents, buyers and sellers. When they take effect, short sale offers will need to receive lender approval or denial within 10 days. If a borrower sells their home through a short sale, they could be eligible for a $1,500 moving allowance. The new program will also offer incentives for loan servicers to accept short sales when borrowers fail to qualify for the government’s Home Affordable Modification Program (HAMP).

According to a First Core American Logic study, 23 percent of all U.S. homeowners with a mortgage had negative equity in their home as of September 2009—nearly 10.7 million homeowners. An additional 2.3 million mortgages were approaching negative equity (under five percent equity). These homeowners shared similar scenarios, they: financed their properties between 2005 and 2008; purchased newly-built homes; relied on adjustable rate mortgages; and bought properties with an average sales price of $210,300.

More than 300,000 U.S. homeowners were served a foreclosure notice in November, according to the property listings site, RealtyTrac. Additionally, one in every 165 homes is in danger of becoming bank-owned. If foreclosures keep rising, real estate analysts also predict a surge of short sales—when a lender accepts a selling price less than the amount owed on a loan.

According to the National Association of Realtors (NAR), about one in 10 home sales in the U.S. was a short sale in 2009. That ratio tended to be higher, however, in California, Nevada, Florida, Arizona and Michigan, whose housing markets were hit hardest during the recent downturn.

Asking prices for homes are declining in 25 of 26 metro markets, according to the December 2009 National Real Estate Market Report. As asking prices decline, prospects for a quick ‘short sale’ increase.

“I think in 2010, you’re going to see a lot more short sales and hopefully reduced foreclosures,” said Travis Hamel Olsen, COO of Loan Resolution Corporation. “The push right now is for servicers to avoid foreclosure and the push is coming not only from the Obama Administration and the Treasury but also from the owners of the loans such as Fannie Mae and Freddie Mac. And the focus right now is on short sales.”

In recent years, real estate agents have preferred foreclosures over short sales due to the much shorter response time. Typically, lender acceptance or denial of an offer on a foreclosed property is received within two weeks, verses the 4-8 month response time for a short sale. Banks and other lenders, however, generally prefer short sales, which avoid the extra costs involved with foreclosures. This struggle has led to the all-too-familiar scenario of buyers backing out of a short sale prior to receiving the lender’s approval because the home has significantly decreased in value due to the elongated lag time.

Mr. Olsen of Loan Resolution Corporation told Realty Times that greater cooperation between banks and agents on short sales should lead to an improved selling situation. “With the short sale closed, [homeowners can move on with their lives a lot faster. From the real estate agents’ point of view, they spend less time doing short sales and then can go about getting other listings and making more money, and from the banks’ point of view, they’re happy because the volume of short sales that they have going on decreases because we’re resolving so many more, so much faster,” says Olsen.

Next April, residential homeowners will have to prove the following requirements for a short sale: the property must be the homeowner’s principal residence; the homeowner is either late on the mortgage or nearing default; the mortgage is less than $730,000 and was taken out before Jan. 1, 2009; and the borrowers’ total monthly mortgage payment exceeds 31 percent of their before-tax income.

Ms. Matykiewicz, who is a Certified Distressed Property Expert (CDPE) with a specific understanding of real estate issues and foreclosure avoidance options (specifically short sales), says she is encouraged with the recent moves by lenders like Bank of America and Wachovia Golden West & World Savings. They are piloting new short sale programs and training their staff to expedite the process within their own system. “When all the moving parts in a system start to work well together,” she said, “then short sales can be facilitated faster, with a better win-win ratio for both sellers and buyers.”

For a link to the actual article click on: http://www.prweb.com/releases/2010/01/prweb3406144.htm

Short sales get boost from Obama administration – Boston Real Estate – Boston.com

Short sales get boost from Obama administration – Boston Real Estate – Boston.com

by averypiantedosi on January 27, 2010

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