When we first started doing short sales back in 2008 it was a new word and frankly a new world. Unfortunately, while there are a few really good things that have changed since 2008, there are a lot more similarities to the experience as back then. It’s worth looking at what has changed and what hasn’t to really educate ourselves on the process. (more…)
Short Sales In 2014 are very different then they were in 2008, but there are some similarities. Many of the banks (and attorneys for that matter) have begun to reduce their work staff as short sales have decreased. However, that doesn’t mean that there are no more short sales in 2014. Short sales are still common and in Georgia real estate, they make up about 20 to 30% of the market. So what’s different
Overall Banks and Investors are making decisions faster. Their process is more straightforward. This is true of most banks, such as Bank Of America and Wells Fargo but Ocwen is still going to take a long time dealing with Pakistani outsourcers.
Most short sales lenders are asking for money, that doesn’t mean they mandate it, it just means they will ask. We haven’t had any clients pay out of pocket but most have been asked.
You have to prove the financial hardship. No more strategic short sales. If you can’t prove it then you’re out of luck. Luckily, proving the financial hardship is relatively easy. If you can barely make payments, then you’re in good shape for a short sale.
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 for sale is located in 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.
Wells Goes to Equator, Navy Fed Dumps on Veterans and Short Sales Smooth Out
This month in Short Sales bring us some interesting news.
Wells Fargo moves to Equator.
For those that don’t know, Equator is a semi-automated system for banks to manage assets. Use primarily for foreclosed properties (REOs), and adapted for short sales. Equator become “famous” when Bank of America decided to use them for their short sales. Since then GMAC and now Wells Fargo use this “software” to manage the process. What we should see is a slowdown as employees get used to the quirkiness of the design (clearly Equator was not designed with User Interface in mind) followed by a much quicker process. Wells has always been ahead of the curve in regards to short sales.
Navy Federal Credit Union Sucks
Honestly I tried to find a different word to describe Navy Fed, but how they handle their business as it relates to our service people is just plain deplorable. If you are buying a home right now, do not use this company. It’s not that you get taken advantage of in the front end but if you get stationed elsewhere and are forced to short sale, expect to have the roughest time of it out of all the lenders we deal with.
No you can’t lease purchase this short sale.
It’s a common statement that we are having to make to potential renters. (We will have a big announcement later this month, where we can say, ”
YES YOU CAN LEASE PURCHASE THIS HOME”, but until then…) The answer of why should be obvious. You have a home owner who is short selling because they can’t afford the mortgage anymore and they are facing foreclosure. So it doesn’t make sense for a buyer/tenant to put themselves in that a potentially dangerous situation like that where they could be foreclosed on shortly after moving in.
September has just ended and there’s always changes going on in short sales. I’ll be doing at least monthly videos on Short Sales in case you are like many folks – “technically qualified for short sale” but able to afford your home or maybe you’re on the fence about whether to move forward. You could just be an agent. Your feedback is always welcome.
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