The TRUTH About Short Sales

I have had some recent experiences that have inspired me to write a blog about, "The truth about short sales". This is NOT a class, and I am a licensed Realtor, but NOT a Short Sale Certified Specialist. This is basically an ABC's for Buyers and Sellers. This is also based on MY experience and professional opinion. I will cover Sellers first, because then Buyers will understand the process a little better.

What is a Short Sale? Basic definition is a Short Sale is when a home is being sold "short" of the liens and mortgages that is owed on it.

SELLERS: When entertaining the idea of selling your home as a Short Sale, Pahleeeeze...speak with a few Realtors (preferrably a Realtor that is a Certified Short Sale Specialist). Make sure they KNOW what they are talking about. Some clues...If they make sense to you, that means through the process, communication will be good. That is SUPER important! A Realtor that knows Short Sales, will also more than likely advise you to also speak with your CPA and or Attorney (to make sure this is the right decision for you). A Short Sale does not necessarily ruin your credit. It actually depends on each situation. A Certified Short Sale Specialist can give you a really good idea of all of your options. If a Realtor uses a "Mitigation Company" be hesitant (MY OPINION ONLY!). Here's why...a knowledgable Realtor and Title company, can handle a Short Sale on their own. A Mitigation company charges a fee, which will NOT be paid by you (the Seller), or the BANK. Therefor it must be paid either by the Realtors or the buyer. This makes your property a bit less appetizing. I personally will list a Short Sale, but will partner with an Agent that is a Cert. Short Sale Specialist.

BUYERS: The MOST important thing for you to know about Short Sales..."PATIENCE IS A VIRTUE". If you are in a rush to buy a home, a Short Sale is NOT for you. There are so many hoops for the Listing Agent to go through, it is a time consuming process. The second most important...A Short Sale in no way means...Garage Sale. A Realtor that knows what they're doing, has priced the property to reflect closely what the Bank SHOULD approve. When making an offer, my opinion is to stay close to the asking price. The alternative is to make a low ball offer, wait a potential 4 months to get a "No". You have then wasted 4 months of your life, that you can no longer get back. If you are ready to make a commitment to a home, and "feel that great love", then the process is worth the wait. Lastly...be aware that you MAY be asked to pay a "mitigation fee" at closing. Make sure your Realtor makes you aware of that early on.

Well...that's the "quick and dirty" of it. I may come back to add to this. I hope it somewhat helped or clarified some things.

Maureen Velilla
Realtor
727-710-4120
Century 21 East Lake Realty
www.NotJustAnAgent.com
MaureenVelilla@aol.com

First Time Home Buyers

What a GREAT time for First Time Home Buyers (at least anyone who hasn't owned a home in the last 3 years)! Here's why:

FHA and VA are actually LENDING money. All you need is a credit score of 625 (right now) or higher, a job (obviously), and 3.5% down. Two different clients of mine just bought newer homes, in beautiful neighborhoods! Their monthly payments which include mortgage, taxes, and insurance is just over $1,200 per month! Not to mention the $8000 tax credit they're going to get, and NOT have to pay back! Oh yeah...and most of the time the seller agrees to pay up to 6% of the buyer's closing costs and pre-paids! Anyone who has what's needed and doesn't do it now, is craaaaazy!

FHA or VA Loans and Short Sales...

First and most important...make sure the listing Agent has the price approved by the bank. That avoids any unseen disappointment. Make sure the buyer's Agent knows how to word the offer correctly, and uses a good pricing strategy in the offer. If all of the above is done correctly, it's a win - win for both sides.

Makes me wish that I waited to buy my house! Talk about a "Buyer's Market"! The Buyer not only gets the kitchen sink, but practically served up on a silver platter too!!!

Just remember...buying a new home should be a fun and happy occasion. If it's not...something, somewhere in the process isn't right.

Maureen Velilla
Realtor
Century 21 East Lake Realty
727-710-4120
www.NotJustAnAgent.com
MaureenVelilla@aol.com