THOUGHTS FROM MY DESK
BY
JIM ENGLISH GRI, CRS
We are hearing some new terms today in Real Estate, like UNDERWATER and SHORT SALE. A recent article in the Sun Journal indicated that 25% of the mortgages in this country were "underwater". That simply means that more is owed on a property than the property is worth. How can this situation be remedied? 1-you can wait several years until the market re-corrects and values rise. 2-you can negotiate a Deed In Lieu of Foreclosure with the lender. 3-you can try to work out a loan modification with the lender. 4-if you have no alternative, or need to sell, you can do a Short Sale. All of these options are subject to lender approval and neither buyer nor seller has any guarantees.
Short Sale is the 2nd new term. How does that work? If the seller has a hardship (illness, financial misfortune, unemployment etc.) he or she can apply to the lender to qualify for a Short Sale. The lender will request financial information and other information to document the hardship, and qualify the seller. At the same time, the seller needs to be working with a Realtor who is very knowledgeable and experienced in handling Short Sales. To do otherwise can lead to major problems. In addition to seminars and formal training in Short Sales, there is nothing like experience to qualify a Realtor for this task. The Realtor will be able to counsel the seller about what to expect in this process from the seller qualification period to the 60-90 day period after an Offer is obtained of working through the lender process of accepting and closing a Short Sale. This experience is nothing like the average Realtor has ever experienced! Unbelievable is a good word to describe the experience. It should be noted that not only does the Listing Agent need Short Sales training and skills, but the Buyer's Agent does as well. Buying a Short Sale property is as complex as selling one.
What are the ramifications of a Short Sale for the Seller? 1-the sale will be reported to the credit bureau as "Paid in Full for Less Than the Amount Owed". Most lenders will overlook this after two years. This has become so common that lenders and credit agencies are changing their views. 2-The Lender may ask the seller to assume some of the shortage in the payoff. This could be as cash at closing, or an interest free promissory note. 3-the Lender can issue a 1099 to the seller for the amount forgiven. It should be noted that the Seller should ALWAYS be advised to seek legal and financial advice from Professionals before accepting any terms from the Lender. The Realtor is forbidden from negotiating on behalf of the Seller. If you have a problem that a Short Sale might remedy I would be happy to meet with you. I have had formal Training in managing the Short Sale, and have been involved in working with the lenders in 11 Short Sale situations both in and outside Fairfield Harbour. Please call me with questions at 252-670-6801.
Jim English GRI, CRS Broker
THIS LETTER IS NOT INTENDED AS A SOLICITATION OF ANOTHER BROKER'S LISTING
THOUGHTS FROM MY DESK
THOUGHTS FROM MY DESK
BY
JIM ENGLISH GRI,CRS
BROKER-KELLER WILLIAMS REALTY
So what’s the latest in real estate around town? The volume of business has stabilized, interest rates are at historic lows, and we have plenty of inventory at great prices. IT”S A GREAT TIME TO BUY IN NEW BERN!
Keller Williams New Bern year end statistics reflected very little change from 2010, so in a way, that is good. Sales volume was the same, but dollar volume was down. We look forward to a dynamic 2012!
I encourage everyone to visit my website for the latest real estate and local information at www.jimenglishinnewbern.com. This is a very robust site with complete Real Estate information. I would like to hilite one of the features of my site. If you go to my web site and click on Local Links, and then select One Stop Business Directory and Events you will come to the site for NEW BERN NOW, a creation of Wendy Card. What a fantastic tool for anyone living in New Bern or thinking about visiting or moving to New Bern. The New Bern Now site features all sorts of video tours of New Bern, as well as a very complete list of events and videos of past events. There is also a great business directory arranged alphabetically by type of service or product. Wendy also has a great Community Blog to keep her readers up to date on New Bern Happenings and Events.
I call special attention to Wendy’s very helpful link. Click on Community Blog. Scroll down a bit to the Local Coupon square on the right. Click on it and you have a page with nearly 100 great discount coupons. Featured Coupons are displayed, but you can click on any category on the left and get the discount coupons of your choice. I have used them and they are fantastic! While you are at the Blog be sure to view the current feature. NEW BERN NOW! A great on line resource for the community.
I hope you enjoy this information. Call me if you have questions at 252-670-6801.