Posts Tagged ‘realty’

Short Sale Mistakes a Realtor Should Not Make

February 18, 2011

Have you ever gone to an open house and you hear the realtor mention that the house is on short sale?  If you aren’t familiar with real estate terms, “short sale” can sound like a positive thing, but unfortunately, it’s not.  A house that is on short sale can, in fact, take months longer to buy than a house that is simply for sale or for lease with an option to buy.  For a realtor, this type of house can be harder to sell, depending on their clients, so the way they handle a short sale or present the house on short sale can make or break the deal.  Here are a few things your realtor should avoid when dealing with a short sale.

  1. A house that is on short sale can take months longer to buy than a house that is simply for sale or for lease with an option to buy.  Here are some common short sale mistakes your realtor should avoid.Make sure you are familiar with the short sale process; do not go into it blind.
  2. Do not hire an unqualified professional to negotiate with the bank.
  3. Do your homework!  Make sure you keep following up with bank representatives regarding the short sale.
  4. Do not price the property above market value to try to cover full payoff.
  5. Do not submit an offer that is too low or buyer financing that is not strong enough.
  6. Do not pay any upfront fees for someone to facilitate a short sale.
  7. Do not be unaware of how to approach business cases to lenders.
  8. Do not expect the process to be much shorter than is realistic.

Make sure you are confident with your realtor and that you can trust him/her to get you through the short sale process securely.  With an increase in short sales this year, both home buyers and home sellers should look into the process to avoid any confusion in the future.

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Joie Montoya

Short Sales: How they’re done and why

March 11, 2010

What short sales are, how they are done, and whyIf there are any services that Chris Gabledon, realtor for EXIT Realty SCV, can do well, processing a short sale is at the top of the list.

No doubt, since the economy began tumbling in the last quarter of 2007, much of the news we heard about the realty market shifted from the rise in property values and property-flipping by liquid investors to the alarming number of mortgages that have gone “under water”.  Highlighted in Michael Moore’s 2009 documentary, “Capitalism: A Love Story“, were the foreclosures and evictions of families from their long-time homes.  Some families, however, managed to escape foreclosure by undergoing a short sale.

What is a short sale, anyway?  According to Wikipedia:

A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan.  It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower.   Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers.  This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency.

If the definition had some “lawyerese”, here are the highlights:

  • Mortgage to date + proceeds from sale < balance owed on property’s loan
  • Selling the property at a loss is better than nothing
  • Avoids foreclosure, large fees for the bank, and poorer credit scores for the borrowers
  • Borrowers may still have an obligation to pay the loan

If you find that conducting a short sale is in your best interests, this is how it’s done.  Using the services of a realtor may ease the process:

  1. Verify the value of your property.
  2. Add up all the costs of selling the property.
  3. Determine the amount owed against the property.
  4. Subtract the total amount owing against the property from the estimated proceeds from the sale.
  5. Contact the lender or lenders.
  6. Ask the lender what its procedures are for a short sale.
  7. Sell the property.

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Francis M. Unson

EXIT Realty: Interview with Chris Gabledon, Realtor (part 3)

January 29, 2010
  1. Please retweetIs EXIT Realty looking to hire in the coming year?
    Yes
  2. What have you done to go the extra mile for your clients?
    I had a client that was looking to purchase his dream home in the Santa Clarita Valley when, all of a sudden, my client was notified that his company was relocating him out of the area.  Immediately, I switched gears and focused on the area where he would be transferred and within a week, I was able to find my client’s dream home and the family was very happy.

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Francis M. Unson

EXIT Realty: Interview with Chris Gabledon, Realtor (part 2)

January 29, 2010
  1. Please retweetWhat is the niche that makes you stand out above everybody else?
    Excellent client relationship and the ability to get the client from A to Z, whether it’s a purchase or a sale.
  2. What products and/or services do you offer?
    Our services at EXIT Realty include helping buyers as well as sellers in their real estate transactions.  We process short sales, loan modifications, relocations and guidance in how to move forward in the real estate market.
  3. What kind of promotions do you offer?  What kind of promotions would you like to offer?
    N/A
  4. What do you like about working in the Santa Clarita Valley?
    We have been working in the Santa Clarita Valley for over 10 years.  We have established a great relationship with our clients and their families to make the Santa Clarita Valley a great place to live for our kids.
  5. In terms of your business, what are you looking forward to in the coming year?
    Reaching out to potential clients who are looking for alternatives to foreclosure and guiding them on the alternative choices that are available to them.  We also look forward to guiding our clients and prospective clients in buying or selling property in a timely manner with the least amount of stress.

    (to be continued…)

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Francis M. Unson

EXIT Realty: Interview with Chris Gabledon, Realtor (part 1)

January 29, 2010
  1. Please retweetWhat are your names?
    Chris & Lisa Gabledon (jointly)
  2. What is the name of your business?
    EXIT Realty
  3. What year did you establish your business?
    1998
  4. How did you go about getting your business started?
    Learning about the business through seminars, training classes, and prospecting.

    (to be continued…)

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Francis M. Unson