Other Parties in a Macomb, Oakland, or Wayne County Michigan Short Sale
This is part of a series of articles on short sales. The first article in this series explains what a short sale is in general. In this portion of the series, we focus on the other parties involved in a short sale, beyond the buyers and sellers. Here are the first three articles in the series for reference:
There are many other parties involved in a short sale each with a different role. Keep in mind that in some states the laws may be different, but in Michigan, particularly inMacomb, Oakland, and Wayne these are the parties involved.
There are real estate agents, typically a listing and a selling agent. The listing agent represents the seller. The selling agent represents the buyer. Note, one agent might be representing both parties in which case they are participating in both roles.
There are also lenders aka mortgage companies involved in a short sale, sometimes for both the buyer and the seller.
At a minimum there are lenders who have a lien on a property and who need to agree to accept the short amount. These are the seller’s lenders. They may have people working for them including negotiators, processors, analysts and others. There may be more than one lender who has a lien on the property, and each of these lenders will have their own people that play in the aforementioned roles.
If buyers are not cash buyers, they will need a way to finance the purchase of the home. Whoever lends the buyer the money to purchase the home is the buyers’ lender. Typically this is known as a mortgage company and the representative, or the lesson for the buyer to the lender is known as a mortgage rep or a loan officer.
In addition there may be attorneys, accountants, CPA’s, bank managers, negotiators, courts, judges, appraisers, title representatives and inspectors just to name a few. These parties might be representing either the buyer or seller. In order for a short sale to be successful, all these parties must communicate with each other and work together to make sure everything is done properly. If information is needed about these parties and their roles, it is best to ask the professions you are working with.
Here is a testimonial video of a client we, The Rich Sparks Team, did a short sale for.
If you would like more information on short sales, we offer a free short sale seminar where you will be educated and learn what options are available for someone in your situation. Sign up here or give us a call at 1-800-823-4461 Ext. 0
Buying a Short Sale, Here is What to Expect
This is part of a series of articles on short sales. The first article in this series explains what a short sale is in general. For what a short sale means for a seller, read this. In this particular portion, we focus on what a short sale means for the buyer of a property being sold as a short sale.
First off, there are some major advantages to buying a short sale. As a buyer, you are usually getting a house at a foreclosure sale price. But, it is usually lived in and maintained. This means you get a regular property at a discounted rate. Also, you are typically helping the seller out of a hardship, so you are doing them a favor by purchasing their home.
A short sale means the sale will be a multi-step process. The buyers need to not only get the sellers to agree to their offer, but also whatever lien holders involved to accept the terms of the offer too. It also means a buyer might have some additional risk. For example, their EMD (Earnest Money Deposit) may be tied up for longer. Buyers may also be required to do a home inspection and appraisal before knowing for sure whether there will be a short sale approval. A buyer’s real estate agent should advise them of these items as they arise in the process.
Not until all parties agree in writing, and when short sale approval letters from the seller’s lien holders are received is the deal actually considered an accepted (bottom lined) offer. It is not unusual for short sales to take time before they are approved, so buyers should remember to be patient. And, there are no guarantees the sale will ever be approved. Many things can happen to make the sale be turned down. Some examples: the sellers my not qualify, the price might not be high enough, the lender not allow a short sale, other liens might be on the property. Because of this fact, buyers of short sales might want to continue to look for a home to purchase even if they have a seller accepted offer on a short sale. It all depends on their particular timeline and their desire for the property in question.
Also, certain parties (lien holders, state laws, sellers…) may place restrictions on their acceptance of a sale. One common restriction is that a sale closes by a certain date. So, keep in mind that though the whole sale process may be longer, once all parties agree the deal might have to close rather quickly. For this reason financing must be in order. This is also why lien holders prefer quality buyers, why pre-approvals are a bare minimum and why cash offers are highly desirable.
Read what others have written about the Rich Sparks Team by clicking this link.
If you would like more information on short sales, we offer a free short sale seminar where you will be educated and learn what options are available for someone in your situation. Sign up here or give us a call at 1-800-823-4461 Ext. 0
Selling your House as a Short Sale
This is part of a series of articles on short sales. The firstarticle in this series explains what a short sale is in general. In this particular portion, we focus on what a short sale means for the seller of a property.
Basically from a seller standpoint, doing a short sale means selling your house for less than they owe on it, many people call this being underwater. And the current owner (Seller) will have to make arrangements with any and all lien holders to come to an agreement to accept the sale. Any party that is not getting the full amount they are owed according to a full title search will need to sign off in writing to the sale.
This all will likely mean the seller will have to show a reason why they need to sell the property at this particular time, typically known as a hardship exists, and why the parties should accept less then they originally agreed. Normally, sellers must fill out legal forms such as a Dodd frank Certification (stating no mortgage fraud is being committed), a hardship letter (explaining their situation and asking for help), and present their financials. In addition, more information, explanations, additional financials, or proof of said hardships may also be required on a case by case basis. Keep in mind, this may also require the hiring a CPA, attorney, or negotiator to help the seller navigate through the process and make sure their interests are protected. Note also it makes since to hire the appropriate professionals because there may be legal and tax consequences.
Here is a testimonial video of a client we, The Rich Sparks Team, did a short sale for.
If you would like more information on short sales, we offer a free short sale seminar where you will be educated and learn what options are available for someone in your situation. Sign up here or give us a call at 1-800-823-4461 Ext. 0
The perfect gift for Baby Boomers
More and more I have seen programs on T.V. for folks who are “Preppers”. People who are preparing for the end of the world as we know it. They talk about storing years of food, growing gardens, and raising goats. What they never talk about is when your world ends as you know it due to the loss of a spouse or loved one.
Imagine standing in an emergency room in the midst of a full blown crisis. The person you have been building a life with lays unconscious and you know the end is near. Questions begin to race through your mind decisions have to be made.
What’s their e-mail password? Where are those phone numbers for the important people you need to contact? Gosh where did they put the life insurance policy? Do we have life insurance? She always took care of the bills how do I handle it now? Some of the questions seem inconsequential, but each question you have just adds to the stress of going through such a life altering experience. Many of us are not prepared for such a terrible event, one such person was Chanel Reynolds.
Chanel Reynolds, the founder of the site www.getyourshittogether.org (GYST), found herself when her husband was hit by a van while he was bicycling.
He later died.
She was left with a mountain of decisions, she didn’t have key phone numbers handy, she wasn’t sure about the amount of life insurance due to her and she and her husband hadn’t signed a will.
Based on her experience, Chanel developed GYST, a site that offers something that other financial and life planning sites don’t.
It cuts through all the noise and tells you exactly how to prepare your life for an emergency. The message is clear and direct it hasn’t been massaged by lawyers or marketing gurus into a seemingly impenetrable language that only an expensive guide (lawyer) can guide you through.
The site outlines some of the difficult conversations you need to have such as “honey if something was to happen to you how would you like to be laid to rest?” The site also walks you through key decisions you need to make, from sharing passwords and bank account details, to designating guardians for children and signing medical directives.
Also included are checklist, templates, worksheets, and even fill in the blank wills and other important documents which makes the process clear and simple. In addition, Reynolds helps you understand that a life-or-death crisis (car accident, heart attack, you name it) can happen in a minute.
So this Christmas season I urge all of you to take the time and give the best gift of all to your loved ones.
Curious about what the health care law means to you? Check this article out.
By Rich Sparks
Senior Real Estate Specialist
Looking For a Free, No Hassle, No Obligation pricing analysis on your home?click here.
Short Sale
By Nick Casteel, MBA
What is a short sale, the basics:
There are a few different types of sales in real estate, and one of the more common ones is the past few years has been the short sale. Simply put a short sale means a property is selling for an amount where the proceeds are not going to be able to pay off the liens owed on a property and the current owner (seller) is unable to come up with the difference and pay those amounts off. Sometimes professionals call this being under water. So in order for a sale to close, the difference between what the sale brings in (net proceeds) and what the payoffs add up to must balance out. And, because the payoffs are higher in this situation, lien holders must take less than what they are owed in order for this to actually balance. Which ultimately means liens and fees must be negotiated and agreed on by all parties.
What it is not:
A short sale is not a guaranteed sale until it closes. It is also not a foreclosure. Many people make the assumption that a short sale and a foreclosure are the same, when in fact they are entirely different. Typically a short sale is also not a quick sale due to the fact all the parties must agree upon all terms, and this typically takes some time. Due to this complexity and laws and regulations a short sale is also not something that should be attempted without professional help.
Take Away:
A short sale is a more complicated sale and should be treated as such. Questions should be asked before, during and after by all parties especially the buyer and seller. And, the appropriate professionals: realtors, CPAs, and attorneys should be consulted and utilized throughout the process. Remember short sales can be lengthy and everyone should remember to be patient and keep each other updated throughout.
2013 Real Estate in Review
7 Housing Trends for 2013
As 2013 comes to a close and real estate experts predict where the housing market is headed in 2014, a look back reveals several trends.
“In 2012 we saw the housing market recover and, going into 2013, we expected continuing recovery,” said Lawrence Yun, chief economist of the National Association of REALTORS®. “Instead, the recovery accelerated a lot faster than we anticipated, which was great for sellers and for the 75 million homeowners who saw their home values appreciate.”
1. Housing Prices Rose Faster Than Expected
The national median listing price was $179,900 in January 2012 and rose to $180,000 by December 2012, according to realtor.com® research. The pace of price appreciation accelerated quickly over the year to reach a median list price of $199,500 by September 2013.
2. Mortgage Rates Rose but Remained Low
“We expected mortgage rates to rise in 2013, and they started to increase in the late spring, but they’re still very affordable when you look at rates on a historical basis,” Yun said. “They just aren’t at the super-low point we saw earlier.” According to Freddie Mac, 30-year fixed-rate loans were as low as 3.45 percent in December 2012 and rose to 4.49 in September 2013. Barry Habib, co-owner and chief market strategist for Residential Finance Corp., said mortgage rates are likely to stay low and perhaps even drop between now and March 2014.
3. Bidding Wars Returned
The combination of rising prices, low mortgage rates and low inventory led to a sense of urgency among buyers and the return of bidding wars, said Don Frommeyer, president of the National Association of Mortgage Brokers. According to realtor.com® research, inventory in 2012 reached a high of 2,083,710 homes on the market, then steadily declined to a low of 1,583,497 homes in February 2013. At the end of September 2013, 2,210,000 homes were for sale, approximately a five-month supply.
4. Housing Affordability Remained High
“Housing affordability has come down a little this year because of double-digit home value appreciation and the fact that income isn’t rising in comparable amounts,” Yun said. “Rising mortgage rates, even though they’re still low, also have an impact. While affordability right now is at a five-year low, it’s still the fifth highest for the past 30 years.”
5. All-Cash Buyers Continued to Be a Strong Market Segment
Yun said a continuing surprise is that about one-third of all home purchases were made with cash, a market share that has been consistent for the past three years. While some of these cash buyers are from overseas and some are institutional investors, others are “mom and pop” investors who have had trouble getting financing. “Even some owner-occupant buyers are cash buyers because of the excessively tight underwriting standards for loans,” Yun said. “Some people are getting help from relatives to buy, and then they plan to take out a home equity loan later to repay them.”
6. Mobile Apps Accelerated Connections Between Buyers, Sellers and REALTORS®
Nearly every REALTOR® and brokerage in the country introduced a mobile app this year to make it easier for buyers and sellers to access information from their smartphones and tablets, including realtor.com®. “Everyone realizes that it’s inconvenient to be tied to a desktop when you’re looking for housing-market information and homes,” Yun said. A recent study by Google and the National Association of REALTORS® found that 68 percent of homebuyers used a mobile app during their home search and 89 percent used a mobile search engine at the onset of the home-buying process and throughout their research
7. Rising Rents and Pent-Up Demand Pulled More First-Time Buyers Into the Market
“Right now we’re seeing replenishment of renters who want to buy homes,” Habib said. “At the peak in 2002, nearly 70 percent of people owned homes and 30 percent were renters; now 65 percent of people are homeowners and 35 percent rent. Not only are rents rising faster than home prices in many markets, but there’s pent-up demand from people who don’t want to live at home with their parents and who want to buy a home.”
Source: http://www.realtor.com/news/7-housing-trends-for-2013/?iid=mktng_2013-YIR_home_housingtrends
Who turned off the porch light? A social commentary (just for fun)
Being a Realtor, I notice things, like neighborhoods. What type of feeling do they have? Is it more reserved or is it a place you can live for a decade and not know the folks two doors down. Or is it a social neighbor-hood, where people know each other and look out for each other? Everyone is different. Some prefer to be an isolationist. Me I’m a pretty social guy and my neighborhood is about as social as it can get without turning into a commune. More and more I think my neighborhood is kind of unique, especially after trick or treating with my children Nicho and Alli on Halloween.
With Nicho being 10 and Alli 8 we have had the privilege (on warm Hal-loweens) and or the obligation (on the wet and cold Halloweens) to go out with our children door to door. First we do our street, going door to door talking with the neighbors for a few moments by a front yard fire pit; often sharing a quick libation then moving on to the next house. Don’t worry while we are out collecting with our children a friend of ours passes out candy to the children and warm cider with a touch of some-thing from Tennessee to the adults. Once our block is done we move out into the rest of the sub and that’s when things start to change.
Every year fewer and fewer lights are on the street. Most are dark but there always seems to be that last hold out, the one 
porch light on in the middle of the block. My children debate if it’s worth going down there and maybe they should move on to the next neighborhood where the pickings would be better. My wife and I let them debate for a few moments then we suggest we walk down to the lonely porch light. I tell my kids “you know it’s been about a year since I said hello to those folks let’s walk down real quick”. We walk down, our children get a quick treat, my wife and I say hello and explain how we live a few streets over then we move on down the street. A quick exchange, nothing spectacular, but who knows maybe my neigh-borhood became a little bit more of a community. So next year what do you say, let’s bring back the porch light or who knows, maybe the “Tricks” for those dark lonely porch lights:)
Rich Sparks Real Estate 