One of our most recent posts (“Back on the Market”) was about 2090 Brickton Station and how it come back on the market. Are Banks Still Accepting Short Sales? YES! The challenge with short sales has actually never been the bank’s willingness to do them, it’s been either the seller’s lack of knowledge (or the listing agent they chose) or the buyer backing out of the transaction.   This is why the Jarvis Team has a 90% success rate with short sales.

I know some people wonder Are Banks Still Accepting Short Sales? because they heard that the tax exemption will end or that HAFA ended but the truth is, that they are  still vaiable.  They are and they probably will for at least another year or so.

It’s still the best option for those under water and struggling to make the mortgage payments.   Obviously, selling traditionally is the best but a short sale is the next best option for those in a hardship.

Most areas prices have increased as noted in our latest GA Real Estate Market Update, but areas such as Lawrenceville and Snellville continue to struggle.

Just because banks are still accepting short sales doesn’t mean they are easy.  In fact, although the process is more streamline, the qualifications are a bit tougher.  You need to be able to demonstrate you cannot afford the home with your income (do not count savings).

Contact us if you have any questions!

Bankruptcy?  Short Sale Or Foreclosure?

For the longest time it seemed like if you filed for bankruptcy there didn’t seem to be any reason to do a short sale.  Afterall, your debt is gone and that’s kind of the whole point of the short sale is to get the debt, gone.  In this case it’s not all about the debt.  Bankruptcy affects your credit in a HUGE way, it pretty much eliminates you from buying another home with financing (and credit cards, etc) for at least 3 or 4 years (3 years from discharge).

A foreclosure will prevent you from buying a home with financing for up to 7 years!

You might think to yourself, “well I’ll be sitting out for 7 years due to my bankruptcy, so a foreclosure can’t hurt me.”   If you thought that, you’d be wrong.  You might have noticed some of your neighbors have no jobs and are at home and yet no one has evicted them.  It can be a big win for the bank, they have someone take care of the property and they’ll get to foreclosing when they feel like it.   The result?  Let’s go to an example:

Say you filed bankruptcy in 2006.  The bank took their sweet time foreclosing, so your debt slate is clean but the home still remains an “asset,” since the bank never took back possession.  Let’s say you get clear in 4 years, sometime in 2010.  The bank now decides to foreclose because the see the market starting to come back.  Yep, you guessed it, now you have a bankruptcy that has faded away but a new foreclosure hitting your credit as if it just happened.   So when can you buy again?  Yep, the earliest maybe 2014 with some programs, but if Fannie Mae still exists you won’t get a loan from them until 2017.

After a Bankruptcy?  Short Sale or Foreclosure?

The answer is pretty simple.  You should short sale, there’s almost no downside in this scenario except the time spent.  Not to mention the short sale does the least overall damage to your long term credit.

We’re usually focused on answering questions here, but although we’re not happen at the circumstance we do want to alert you to a great property that has popped back up on the market.

2090 Brickton Station, Buford, GA 30519 - This short sale is approved and ready to close.  It’s a large, wide open home with some minor repairs needed.  It features 4 large bedrooms and 2.5 baths, but it’s the huge kitchen that opens completely to the family room that will have you excited.  There’s a nice large room on the main level as well.

This home goes to the Buford high school district and is in a very convenient neighborhood.  Check it out before it is under contract like so many other homes.

Every client we get to help we approach with an open mind and heart, but clients who have Flagstar, Ocwen and Suntrust we have a special place in our heart. If we’re completely honest those are just the files we don’t want to work.  Add on top of that, Freddie Mac and you’re one Google search away from find out these are “deadly” combinations for home owners to avoid foreclosure.

I had a recent conversation with a negotiator that was servicing a file with Fannie Mae and told me the ways you can get an automatic short sale approval from Fannie Mae.  I should correct myself and say “approved of” but only the value and the offer are needed if you have one of these 4 circumstances.  In each instance, the borrower can remain current if they choose and still qualify.  

We bring you another success story this time featuring Wells Fargo and their servicer ASC.  This particular home was a condo in Decatur with 2 liens on it.  To top it off, the home did not have an air condition and had not been updated in 20+ years of ownership.   The owner had lost his job and frankly had been struggling for some time.  When he called it was only a short time before the home would be foreclosed.  Unlike most homes in this price point (under $50K) this one could not be rented due to HOA restrictions.

This short sale success story is special to us.  This couple had not only lost their job but had mounting medical bills as well as taking additional responsibilities as caregivers for some of their Grandchildren.  It was one of those short sales in Buford that we just say, ironically, “Praise the Lord for short sales.”

The lender was M&T with Bayview Servicing servicing the loan.  Even with a clear hardship this short sale faced several problems.