Short Sales & Bank Owned

The Short Sale

Short Sales occur when the homeowner sells their home for less than what they owe to the mortgage company.   Distressed Properties, Shorts Sales & REO’s, constitute for about 40% of our current Real Estate market. While these transactions can be challenging and time consuming, if negotiated properly they can offer an excellent opportunity to purchase a home below fair market value.

Buying Short Sales

I always tell my buyers of short sales the same thing…you must be patient.  Before we submit an offer, I conduct a full inquiry to the listing agent.  As a buyer of a short sale, there are things you need to know.  The more you know the better you can prepare yourself.  Below are a few “Quick Tips”

  • How many lien holders are attached to the property?
  • Has the seller been advised of all their options and liabilities and are they prepared for the “what-ifs”?
  • Is the Seller local or out-of-state?  This could add time to the process.
  • Has the Seller received any Notices of Default or Trustee Notices.  If so, when?
  • The property is considered As-Is, Where-Is.  The Seller nor the Lien Holder(s) are willing/able to make any repairs.
  • Average purchase price of a Short Sale – 80% of FMV (Fair Market Value). We are seeing banks counter at higher values recently!

There are many other factors to consider when writing up an offer on a short sale.  On average, only 30% of written Short Sale offers make it to closing.  I have beaten the odds by preparing my buyers (and seller’s) making sure they understand what to expect, successfully closing 90% of my transactions.  My job as your buyer’s agent is to find out what players are in the game and if we are all ready to handle the “what ifs”.  With that said there will sometimes be issues that arise that are out of the control of the seller.  The lien holder holds the cards in this transaction and we must wait on their response.  But, if you are willing to wait, it can be a good deal.

Selling a Short Sale

Due to a variety of reasons, homeowners may find themselves in a Distressed Property situation.  I have an excellent team of Lenders, CPA’s and Real Estate Attorney’s that can help us find the best solution for you.  My job as your agent is to advise and assist you through the process, whether it’s a Short Sale, Loan Modification, Mediation Services, or a Foreclosure. 

Bank Owned

Also known as “REO’s”, Bank Owned properties are those that the bank took back in possession after a foreclosure sale.  In today’s real estate arena, we have all type of REO property sellers.  Credit Unions, Local Banks, Big Banks (such as Wells Fargo, Bank of America, Chase and so on), the VA, Fannie Mae, Freddie Mac, HUD and so on.  In some cases we also have private investors who purchased bank assets in “pools”.  These type of transactions differ from Bank to bank and require, in most cases, different forms and requirements.  Regardless of who the seller is I can help.  I am familiar with banking procedures and requirements. If your looking to buy a bank owned, let me know.  If you are an investor looking to purchase, let me help.  The rules of engagement for investors are different than an owner occupied, therefore you need to have good investor partner to help navigate these deals. Call me!