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Category Archives: Short Sales

Lifeline needed for underwater homeowners!

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I’m meeting more and more homeowners who just don’t want to wait for the market value of their homes to catch-up to the price they paid or the mortgage they have. If your home has a lost a lot of equity and your underwater, maybe you are struggling to make the payments, their is hope, really! check out making homes affordable to see if you can get help.

If you don’t qualify for this government program try contacting your lender to see if they can assist with a loan modification if you don’t get help from the lender DON’T walk away! Lenders are pushing for more people to short sell their home because you are helping them solve a problem and saving the bank money. Yes, you are helping the lender solve a problem, both you and the lender have a problem. You can’t afford the house and they are not getting paid. Some lenders are also giving borrowers (the seller) cash at closing to help move. Wells Fargo offered one of my clients $2,500!

Check out a video I did on short sales to see why it’s better for to short sell your home than walking away! Video Link

NEW YORK – Feb. 4, 2010 – An estimated 4.5 million homeowners owe more than their homes are worth. That number is likely to peak at 5.1 million in June, affecting 10 percent of homeowners and making them increasingly likely to just walk away.

“We’re now at the point of maximum vulnerability,” says Sam Khater, a senior economist with First American CoreLogic, the firm that conducted the recent research. “People’s emotional attachment to their property is melting into the air.”

Consultants at Oliver Wyman calculated that 17 percent of owners defaulting in 2008 –about 588,000 – chose to default even though they could pay.

First American estimates that it would cost around $745 billion – about the same as the original 2008 bank bailout – to restore all underwater borrowers to the break-even point.

Doing so would be seen as highly unfair by many taxpayers, says Michael S. Barr, assistant Treasury secretary for financial institutions, but doing nothing would be another blow to a fragile economy.

Source: The New York Times, David Streitfeld (02/022010)

Are you living the American Nightmare! Why others Profit?

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The Problem:►
►Wall street got too greedy.
►ARM, Alt-A ARM, Option ARM, Prime ARM, Sub-prime ARM, these adjustable rate
mortgages will continue reset to higher monthly payments which many homeowners will
not be unable to afford.
►Millions of mortgage brokers originated these types of loans across the nation.
►Now the banks are literally overwhelmed and don’t have enough people to clean up
the mess.

The Numbers:
►More than $250 billion in 2008 another 350 billions in 2009 and another $700 billion
will reset in 2010 and beyond, this is according to a First American study.
►Now here is the recipe for disaster.
►It’s estimated that 60% of all arms borrowers pay only the minimum payment and can
not afford a higher payment.
►According to Freddie Mac 62% of all loan modifications become delinquent within 60
days after a modification takes place.
►Loan modification is a disaster; it’s PROVEN it doesn’t work without principal
reduction.
►Right now according to credit Suisse banks have approximately 900 thousands
properties in their books. Not listed for sale with an agent.
►As per Credit Suisse banks and GSE’s must avoid foreclosure in 4.2 million loans
until the end of 2010 in order to have a recovery.
►Highest unemployment rate in over 30 years.

The FDIC is selling off failed Bank and making crazy deals with the new owners, like this deal with failed IndyMac Bank to OneWest Click to Watch This Video Why would these banks want to help the average homeowners who is fighting to keep their homes when they can make more money doing short sales. Does this seem right to you?

Let me know your thoughts.

Lifeline needed for underwater homeowners – Is Walking away the only option?

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Link To Lifeline Needed For Underwater Homeowners

I’m meeting more and more homeowners who just don’t want to wait for the market value of their homes to catch-up to the price they paid or the mortgage they have. If you’re home has a lot of equity and you’re underwater, maybe you are struggling to make the payments. There is hope, really! Check out making homes affordable to see if you can get help.

If you don’t qualify for this government program try contacting your lender and see if they can assist with a loan modification (CLICK HERE FOR ANSWERS) if don’t get assistance from the lender, DON’T walk away from your home the problems don’t disappear! Infact it will get a lot worse.

Lenders are willing and advising borrowers to short sell their homes because you are helping them save them money. It cost the bank on average $50,000-$80,000 to foreclose on a home. By Short Selling you’re home you are helping the lender solve a problem they have. Both you and the lender have a problem, you can’t afford the house and they are not getting interest paid on the loan. Some lenders are also giving borrowers (the seller) cash at closing to help move. Wells Fargo offered one of my clients $2,500!

Check out a video I did on short sales and why it’s better for you than walking away and facing a foreclosure!
I’m here to help so feel free to call me anytime or shoot me an email.

Indian Rock Beach Fl, waterfront townhome

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Moor your sail boat at your door! Gorgeous town home, builder’s own unit with ALL the extras. Wood floors, crown molding, built-ins, granite-WOW factor! Deep water slip allows for yachts or sailboats. Loads of storage + a 2 car side by side garage! French doors open to private balconies overlooking a gorgeous landscaped yard. Perfect for BBQ’s! Enjoy boating in the pristine Gulf waters. Walk 1 block to white sandy beaches, restaurants & shops or relax on your private roof top terrace with endless views of Gulf and Intracoastal. Located on the best beach-Indian Rocks. This is a home worthy of all this fabulous community offers! “Sale is subject to seller’s lender’s approval”.

Fannie to offer closing cost aid on foreclosures

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WASHINGTON – Feb. 1, 2010 – Fannie Mae, the largest provider of residential home funding in the United States, announced on Friday that it would start to pay closing costs for buyers of foreclosed homes in its inventory. Buyers of qualified properties will get up to 3.5 percent in closing costs or an equivalent amount for the purchase of new appliances.

Fannie wants to clear out the nearly 50,000 properties it has in inventory – listed on www.HomePath.com, the Web site created by Fannie Mae last year to sell the growing number of foreclosed homes. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010. Applicable properties can be found on HomePath.com, along with property descriptions, photographs, community and school information, and more.

In addition, some Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers qualified homebuyers the ability to purchase with as little as 3 percent down.

“Attracting qualified buyers to the market and reducing inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover,” Terry Edwards, executive vice president for credit portfolio management, said in a statement.

I think this is a great opportunity for any buyer. Check out the homepath website and see what homes are available in your area!

Short Sale investors flipping homes – Good or Bad?

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Over the past couple of years since “Short Sales” have been the hot topic in the real estate market I’ve been contacted by several mortgage brokers and investors/firms looking to get access to my clients who need to sell properties and who are upside down in their homes value.

These people offered to help my clients by making an offer on their home. (Banks are only willing to talk about a short sale if we have an offer) They will negotiate the short sale on behalf of the client and purchase the home (if they can get a good deal).

I was quite interested when I heard this the first time, because I know how hard it can be to find a buyer who is willing to wait 3-9 months before they can close on a home (these mortgage brokers who weren’t making money by financing homes now wanted to make a living from people’s hardship) It was pitched to me that I would make the commission on the listing side and on the buying side. After the bank approved the sale I would then market the home below fair market value to find a buyer quickly. (Banks typically give us 30-60 days to close the transaction once they have given us their approval) I would then get the commission on the listing side and maybe the buying side for the investor. WOW that could be as much as 12% commission for one deal! Who wouldn’t be interested in that?! (not me if it’s hurting someone)

After further questioning, I discovered these “white knights” looking to help my sellers get out of their homes make offers at 65% below fair market value minus repairs and tie up the home for several months negotiating with the bank. They had no intention of buying the home unless they can sell the bank on accepting this lowball offer, then finding an end buyer who will pay market value for the home. Once they find an end buyer they use a “Hard Money Lender” to close on the property, then resell the home the same day to the end buyer making a huge profit.

If no end buyer can be found or the bank doesn’t accept the low ball offer the seller could end up in foreclosure, plus during the time the home was under contract with the investor any real buyers miss out on these homes. These investors are not helping the turn around of the real estate market they are just taking advantage of desperate sellers and banks, ultimately you and I as tax payers are fitting the bill for these guys because its our tax paying money that has been bailing out the banks from their losses.

Example: At the end of last year a client of mine made an offer on a home in Crescent Heights, we received a counter offer where the sellers name was scratched out and an investment firms name was in its place. The investor had gotten the seller to sign a contract which allowed the investment firm to control the sale as described above. We did come to terms on a sales price after going back and forth for a couple of days. At the closing the investor walked away with over $13,000. The seller could still be on the hook for any unpaid balance of the mortgage.

I feel the banks and/or the government need to set rules to prevent these investors from taking advantage of our down turned real estate market.

December 2009 MLS Stats for Pinellas County FL

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Lot’s of great info here! Take a look at the number of active homes on the market today compared to the past couple of years. The median home price is also on the rise. If we see the unemployment rate go down we could see a much faster recovery in Pinellas County. The number of bank owned homes is also on the way down! Does this mean the end of the great deals? I don’t think so. I’ve seen some great deals in the past few weeks! Like mutiple 3 & 4 bed, pool homes in Clearwater for under $130,000!

Click on the links below and view the pdf. files.

Pinellas December 2009 All Reports: “Condo’s & Single Family”

November 09 monthly foreclosure &short sales report

You still have time to negotiate and buy a “Short Sale” property before the $8,000 first time home buyer tax credit and the $6,500 move up credit runs out! But don’t delay because what I experienced last year was at about 60 days before the end of the tax credit sellers of non “short sale” homes got a higher sold price to list price percentage because they negotiated harder with buyers because they knew that they had the only homes buyers could close on and still get the credit! The morale of the story here is if you want negotiating power, start early.

Have questions? Call or Email me

264 Valencia Cir, St. Petersburg, FL, 33716

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his spacious corner unit townhome is situated on a private preserve lot that is very peaceful. The end unit is light and bright with a nice side yard. Hardwood floors in living and dining area as well as up the staircase. Granite counter tops and maple wood cabinets continue from the kitchen to bathrooms. Stainless steal appliances, designer paint finishes throughout, upgraded tile in kitchen and baths. The split floor plan offers privacy for guests. Laundry room is located upstairs for convenience. Carillon/Feather sound location offers all of life’s conveniences. St. Anthony’s medical and Wellness center are walking distance along with all the shopping for your everyday needs. Of course, there is a Starbucks across Ulmerton! “Sale is subject to seller’s lender’s approval”.

243 Heritage isles Bradenton FL

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Heritage Harbour, Award Winning Gated Golf Course Community. This 2,751 Sq Ft Grand Weston Flex floor plan located on the 14th hole. The home has an amazing floor plan which will suite any family! High tray ceiling with crown molding, formal living room and family room on the 1st floor overlooking the heated in-ground salt pool and custom summer kitchen with SS grill and refrigerator. Large master suite with tub and separate shower (1st floor) 2nd floor game room has built-in office with views of preserve and 14th green. Over $100k of upgrades, pool, window treatments, moldings, California closets, tinted windows, Murphy bed, landscaping, built-in office and so much more. This is a must see!

Short Sale process overview

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This video is my personal experience of selling homes that need to go through the short sale process. Some banks have made the process easy while others have (bank of America) are making this so hard. I’ve tried to give you an overview of what I’ve see and what my clients have experienced over the past 2 years. If you have any additional questions about the process or maybe you need help selling your home call or email me. visit me at www.DavidPriceRealtor.com