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Kansas City real estate and community news blog featuring Olathe and Overland Park, Kansas.
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What is wrong with the banks regarding short sales and why it pays to hire a specialist to help.
This is a true account of a real life real estate transaction.
A real estate listed a home in Raytown, Missouri for $100,000. The seller owed more than $100,000, so the agent and seller knew it would be a short sale.
After over 6 months on the real estate market, the list price dropped to $79,000. Soon after dropping the price an offer for $69,000 came in from another agent.
The listing agent presented the short sale offer to the seller's lender promptly. After months of dealing with the seller's lender, the listing agent had no response for the buyer and seller, so the buyer cancelled the offer.
The listing agent really wanted to help the seller, so she continued her attempts to sell the home in Raytown.
After two years of trying to sell their home, the seller has not been able to sell their home. A friend recommended to them to hire a short sale real estate specialist, so the seller lets their current listing agreement expire then the hire a short sale real estate specialist.
The short sale real estate specialist starts by making a request to the seller's lender to do an appraisal.
Although the home has newer mechanicals, paint, and decor; the appraisal comes in low. The seller's lender approves a list price of $35,000.
In the matter of a few days, the home is sold and close and the seller moves on.
Just like many short sales, a short sale specialist has experience to get the lender to understand reality. The bank in this situation is looking at what is owed on the home, not at what the home is actually worth.
Have questions, feel free to contact us.
RE/MAX sells more homes than any other real estate company.
For a reason...should we talk?Another blog post written by:
Comments are appreciated! Go ahead and add your 2 cents . . .
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Question: I lost my job 3 months ago and I'm now behind on my mortgage on my home in Olathe, Kansas. I knew there was a possibility that I would lose my job so I started working on a loan modification a couple months before I lost my job. I have not heard anything about my loan modification for the past 3 months and then yesterday I received a notice that my lender is starting to foreclose on my home. What are my options?Danny F. from Olathe, Kansas
Answer: Sorry to hear about your problem, Danny. According to AmHerst Securities Group who has monitored thousands of mortgages, 95% of the mortgages that are 60 days delinquent never were brought current nor where successfully modified. If a mortgage is 90 days delinquent, the percentage of mortgages never brought current or successfully modified was 99.2%.
Danny, if your mortgage falls into anyone of these categories and you have been trying to negotiate a loan modification and have been unsuccessful, I would suggest negotiating a "Short Sale".
If you decide that a short sale is the best path, the Dowell Taggart Team would be available to assist you. If you decide to interview real estate agents, keep in mind the two most important questions when hiring a short sale agent.
The two most important questions when interviewing a short sale agent are:1) How many short sales have you successfully completed? (If the answer is 15 or less, you might consider looking further)2) How is the BPO process handled? (If the real estate agent says something like "it just happens" or "the lender orders the BPO", then you may consider looking further)
Why look further? An experienced short sale agent may not have the best path for you to successfully negotiate a short sale on your behalf.
Have any short sale questions, feel free to contact the Dowell Taggart Team. We would be happy to answer your questions.
RE/MAX sells more homes than any other real estate company. For a reason...should we talk? Another blog post written by:The Real Estate Wizards of Kansas City
Comments are appreciated! Go ahead and add your 2 cents . . .
Short sales, foreclosures, luxury homes, investor homes, first time home buyer homes, land, investment properties and move up buyers. Gardner, Olathe, Overland Park, Leawood, Lenexa, Shawnee, Mission, Merriam, Prairie Village, Basehor, Tonganoxie, Lansing, Leavenworth, Spring Hill, Eudora, De Soto, Edgerton, Platte City, Smithville, Gladstone, Liberty, Riverside, Independence, Lee's Summit, Pleasant Hill, Raymore, Belton, Grandview, Raytown, Waldo and the surrounding Kansas City communities.
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Question: I'm in the process of buying the home I rent in Overland Park, Kansas. The problem is my landlord is selling the home as a "Short Sale." My landlord’s real estate agent has prepared a hardship letter to his loan company asking them to accept a short sale… but he said that she needs us “the potential buyers” to get a prequalification letter from our mortgage lender. We got pre-approved for a mortgage in the amount the home is listed and sent it to the landlord's real estate agent. The real estate agent said he wants to show the mortgage lender that “the potential buyer is willing and able to pay the current assessed value of the home.” Is this normal or what? I just want to hear what someone else that is in the business thinks. Thanks.–Candy from Overland Park, Kansas
Answer: It’s normal if you really want to buy the home and can really afford the home. When a short sale is being considered the mortgage company will look at the purchase contract between landlord and you, the potential home buyer. The mortgage lender wants to view the pre-approval letter, copy of the earnest money deposit in escrow, and the sales contract.
Hope this helps, Candy.
RE/MAX sells more homes than any other real estate company. For a reason...should we talk? Another blog post written by:The Real Estate Wizards of Kansas City
Comments are appreciated! Go ahead and add your 2 cents . . .
Short sales, foreclosures, luxury homes, investor homes, first time home buyer homes, land, investment properties and move up buyers. Gardner, Olathe, Overland Park, Leawood, Lenexa, Shawnee, Mission, Merriam, Prairie Village, Basehor, Tonganoxie, Lansing, Leavenworth, Spring Hill, Eudora, De Soto, Edgerton, Platte City, Smithville, Gladstone, Liberty, Riverside, Independence, Lee's Summit, Pleasant Hill, Raymore, Belton, Grandview, Raytown, Waldo and the surrounding Kansas City communities.
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Question: My wife and I bought our home in Olathe in 2007. This spring we got a divorce. Recently, I have been laid off from work and can't keep up on the mortgage. I offered to let my ex-wife have the home, but she is not in position to make the mortgage either. I had an appraisal done on the home and found out that my home is worth much less than what I owe on the home. What can I do?Jeremy G. from Olathe, Kansas.
Answer: Sorry to hear about your situation, Jeremy. Although I would prepare for a short sale, I would first request a loan modification from your lender. Your lender should offer some options. Mortgage lenders are getting much more aggressive in working out short sales in Kansas. Since time is of the essence, I would also hire a real estate agent who specializes or has experience with short sales immediately.
Need help, lets talk.
RE/MAX sells more homes than any other real estate company. For a reason...should we talk? Another blog post written by:The Real Estate Wizards of Kansas City
Comments are appreciated! Go ahead and add your 2 cents . . .
Short sales, foreclosures, luxury homes, investor homes, first time home buyer homes, land, investment properties and move up buyers. Gardner, Olathe, Overland Park, Leawood, Lenexa, Shawnee, Mission, Merriam, Prairie Village, Basehor, Tonganoxie, Lansing, Leavenworth, Spring Hill, Eudora, De Soto, Edgerton, Platte City, Smithville, Gladstone, Liberty, Riverside, Independence, Lee's Summit, Pleasant Hill, Raymore, Belton, Grandview, Raytown, Waldo and the surrounding Kansas City communities.
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I have lived in my home in Overland Park, KS. for 15 years. I need to sell but I owe to much. What can I do?
Question: I have lived in my home in Overland Park, KS. for 15 years. Recently, my boss has announced that our department is moving to another state. I like my job really well and have decided to move with my department. I have interviewed 4 real estate agents and they all have me coming to closing with $15-25,000 after paying the mortgage off and closing cost. My wife and I don't have that kind of money. What do you recommend.Cliff from Overland Park, Kansas
Answer: Cliff you would not believe how many times a week I get this question. I too would find it hard to come up with that kind of money to sell my home. Since you live in Overland Park you must have refinanced your home or taken out a second mortgage. The market has slumped in Overland Park, but not that much.
I would recommend looking into a short sale. A job relocation is one of the reasons why some banks have been granting a short sale. When the loan payoff from the sale of a home is lower than the actual loan payoff, the representative you have hired to represent you request your mortgage lender to take the lower amount. Your mortgage lender will review the facts and if the short sale makes sense, they will accept the short sale. If your mortgage lender accepts the short sale, typically you will not have to pay the difference at closing in your particular case of $15,000-20,0000.
Hope this helps you. Short sales do have disadvantages so I would review the whole file with an experienced short sale specialist.
RE/MAX sells more homes than any other real estate company.For a reason...should we talk?Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty Comments are appreciated! Go ahead and add your 2 cents . . .We have 3 easy steps to find you the perfect home . Click here to get started, today! Short sales, foreclosures, luxury homes, investor homes, first time home buyer homes, land, investment properties and move up buyers.
Gardner, Olathe, Overland Park, Leawood, Lenexa, Shawnee, Mission, Merriam, Prairie Village, Basehor, Tonganoxie, Lansing, Leavenworth, Spring Hill, Eudora, De Soto, Edgerton, Platte City, Smithville, Gladstone, Liberty, Riverside, Independence, Lee's Summit, Pleasant Hill, Raymore, Belton, Grandview, Raytown, Waldo and the surrounding Kansas City communities.
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Question: My house in Overland Park is in foreclosure. I received notice that the Johnson County Sheriff will auction my house in a few weeks. I don’t know how it works, can they auction my house without us signing any papers?Greg, Overland Park, Kansas
Answer: Well Greg. You're not going to like my answer. Yes, your lender has the right to foreclose on your Overland Park, KS. house and order the Johnson County Sheriff to auction off your house to recover losses.
I would first recommend contacting an attorney to help you. If you do not know of a good attorney. I'll recommend one at the end of my answer. In Kansas, a mortgage lender has strict guidelines on how to foreclose on your house. Next, after the sheriff sale, a Kansas homeowner has at minimum of 90 days to redeem the sale.
Before the sheriff sale, you may also request a short sale from your mortgage lender. If you need guidance on this, feel free to contact the Dowell Taggart Team.
Real Estate Attorney:Mark D. Molner, Esq. PRICE LAW GROUP, APC 2210 W. 75th Street Prairie Village, KS 66208
RE/MAX sells more homes than any other real estate company.For a reason...should we talk?Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty Comments are appreciated! Go ahead and add your 2 cents . . .We have 3 easy steps to find you the perfect home . Click here to get started, today!Short sales, foreclosures, luxury homes, investor homes, first time home buyer homes, land, investment properties and move up buyers.
Gardner, Olathe, Overland Park, Leawood, Lenexa, Shawnee, Mission, Merriam, Prairie Village, Basehor, Tonganoxie, Lansing, Leavenworth, Spring Hill, Eudora, De Soto, Edgerton, Platte City, Smithville, Gladstone, Liberty, Riverside, Independence, Lee's Summit, Pleasant Hill, Raymore, Belton, Grandview, Raytown, Waldo and the surrounding Kansas City communities.
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I Want a Pricing Analysis on my Olathe Home – What I really need is to Prevent my Olathe Home from Getting Foreclosed on
Every week, we get a handful of calls from homeowners who want a pricing analysis on their home. Most are actually thinking about either refinancing their home or fighting a property tax dispute.
A month ago I received a phone call from a gentleman while he was at work. He seemed very eager to get his home on the market. He even asked, “Can his home be on the market by Saturday.”
That evening I met him at his Olathe home. I started by asking a few probing questions so I could best help him. He didn't want any part of this process.
I then proceeded to my generic presentation since I didn't know what his needs were. I couldn't get through my presentation, all he really wanted was the raw real estate data on his home. He wanted to know how much his home was worth. I gave him a range and all he wanted to do was argue that his home was worth more. I told him, “We can list for higher. The home buyers ultimately pick the value.”
He said, “I want to sleep on it.”
Well it has been over a month and after a few unreturned emails and phone calls at work, I decided to drop by his home and see if he was ready to list his Olathe home.
When I got to his home, he wasn't there but his wife was.
His wife informed me that they weren't going to list. He was just trying to find the value so he could decide whether he was going to refinance. He decided to refinance and the appraiser was within a $1000 of my market analysis.
She went on to inform me that her husband was upset because they spent $500 on a mortgage application fee to find out that they didn't have enough equity in their home to refinance. They needed the money to stay afloat and keep up the mortgage. If they didn't refinance, she was afraid they would get foreclosed on. The reality of owing more money on their Olathe home than what it was worth was uncomfortable and they may need to FSBO their home.
After informing her that although they had made a couple mistakes, I assured her that I could help her out of her situation.
I left the meeting by scheduling an appointment. My next appointment will be how I can help this prevent this couples home from getting foreclosed on and how I can help them from having this situation from ruining their credit.
RE/MAX sells more homes than any other real estate company. For a reason...should we talk? Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty Comments are appreciated! Go ahead and add your 2 cents . . .We have 3 easy steps to find you the perfect home . Click here to get started, today!
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Tryingto avoid a foreclosure in Kansas City? Checkout a HAFA short sale. Inorder for a Kansas City homeowner to qualify for a HAFA short salethey must meet the HAMP eligibility requirements. Without getting totechnical, the requirements are:The home must have been used as a principal residence and not vacant for more than 90 days. If the homeowner moved it must have been for a new job or for a job transfer. The homeowner must have originated the first mortgage on or before January 1, 2009. The homeowner must be in delinquency with the first mortgage or delinquency must be foreseeable. The homeowner must have a current unpaid principal balance that is $729,750 or less. The homeowner's monthly mortgage obligation must exceed 31% of the gross monthly income. The homeowner must have a HAMP qualified servicer.
Ifthe Kansas City homeowner meets these requirements, then they shouldcontact a HAFA short sale specialist. If not all requirements aremet, maybe a HAFA short sale specialist can direct the Kansas Cityhomeowner to a proper remedy to prevent a foreclosure. RE/MAX sells more homes than any other real estate company. For a reason...should we talk? Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty Comments are appreciated! Go ahead and add your 2 cents . . .We have 3 easy steps to find you the perfect home . Click here to get started, today!
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Should you Apply for a HAFA Short Sale in Kansas City to Prevent Your Kansas City Home from Being Foreclosed On?
Ok, you're struggling to meet the monthly mortgage payment. Since you been laid off from your full-time job, the part-time jobs are not even coming close to helping your family financially.
You have thought about selling, but you owe more than what your home is worth. Now what?
Try a HAFA short sale.
Yes, there are many horror stories because the program started on the wrong foot. Now that the wrinkles have been worked out, the HAFA short sales are working.
First, there are pre-approved HAFA short sales and the traditional HAFA short sales.
A pre-approved HAFA short sale has been approved by the mortgage lender prior to an offer. The benefit is that the bank will help determine the list price. A pre-approved HAFA short sale will be much faster to negotiate once an offer has been submitted. In some cases, most HAFA short sales can be negotiated and closed within 45 days.
A traditional HAFA short sale has not been approved by the mortgage lender prior to an offer. Matter a fact, there is many documents required by the seller during a traditional HAFA short sale, that most of these take 3-7 months to negotiate and close. Most HAFA short sales fall into this category.
The benefits of negotiating a HAFA short sale are the bank will issue a full release of liability, the homeowner can receive up to $5,000 in relocation funds, the mortgage bank can not foreclose during the HAFA process, the homeowner will contribute zero expenses in the sale and the mortgage lender is required to acknowledge and start negotiating the HAFA short sale within 10 business days.
The risk of hiring an unqualified HAFA short sale specialist is the short sale process blows up or worse, the homeowner does not receive up to $5,000 in relocation expenses due to the tricky and complicated paperwork and short sale process.
Before you hire a HAFA short sale specialist ask them how many successful short sales they have completed.
There are more then just HAFA short sales. There are also FHA short sales, Fannie Mae HAFA Short Sales, Freddie Mac HAFA Short Sale and Traditional Short Sales.
RE/MAX sells more homes than any other real estate company. For a reason...should we talk? Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty Comments are appreciated! Go ahead and add your 2 cents . . .We have 3 easy steps to find you the perfect home . Click here to get started, today!
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Many people think so due to the Obama’s Home Affordable Foreclosure Alternatives plan which goes into effect in 4 days on, April 5, 2010.
HAFA is incentive based offering $1,000 Short bonus to banks, $1,500 moving expenses to borrowers, $1,000 to investors, and up to $3,000 for subordinate liens, if they respond within 10 days of the offer.
Will it make a difference? As a Loss Mitigation Short Sale specialist, I’ve seen first-hand how all this works and it will not be fixed with this plan. It takes distressed property sales education, a sharp mind, patience, cooperation, and a task oriented personality to get the job done. To get through this ordeal the agent has to assume nobody is doing their task therefore becomes responsible for ensuring everyone follows through. It is not uncommon to make 15 phone calls a day on a short sale.
The incentives really don’t mean much when you’re talking about a $225,000 loan on average in Johnson County, Kansas. Why? Because $1,000 is a very small percentage when compared to the defaulting loan.
What will make a difference is to inform all parties what to expect up front, initiate early, stay in communication with the asset manager/risk mitigator/negotiator, and stay on task - daily. Short sales aren’t for the meek or mild. I just genuinely want to help people and hopefully earn a client for life.
Last December I met with a homeowner who was under water in their mortgage. I explained to them what needed to be done and they thought it was to much work. The homeowner decided to work with a real estate agent who had a much simpler plan (or the homeowner thought). The homeowner called me this weekend to see if I could help them. Unfortunately. the homeowner has wasted 3 months and the their options have dwindled.
If you're underwater on your mortgage and need to move, lets get together and discuss your options. The more time you have the more options you will have.
Let us know what you think or add to our blog by writing a comment.
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