Archive for the 'For Sellers' Category
WHERE HAVE ALL THE SELLERS GONE
July 23rd, 2010 categories: For Buyers, For Sellers
Inspired by words and music of Pete Seeger.
Where have all the sellers gone?
Long time passing
Where have all the sellers gone
Long time ago.
Where have all the buyers gone?
Investors have picked the good ones everywhere
When will they ever learn?
When will they ever learn?
Where have all the builders gone?
Long time passing
Where have all the builders gone
Long time ago
Where have all the bankers gone?
Long time passing.
Where have all the bankers gone?
Gone to graveyards everyone
When will they ever learn?
When will they ever learn?
Where has all the money gone?
Long time passing
Where has all the money gone?
Long time ago.
Will we ever learn?
Will we ever learn
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Anyone Interested in Seconds… A look at 2nd Quarter Sales Data..
June 24th, 2010 categories: For Buyers, For Sellers, Investing in Real Estate, Market Data
Second Quarter 2010 Single Family Home Sales Data:
| County | Total Sales | Total # Foreclosure | Total # of Short Sales | Distressed Sales expressed as % of Total Sales | Active listings | # Sales in 1 Month | Absorption Rate |
| Cook County | 6,215 | 1,803 | 568 | 38% | 19,288 | 2,521 | 7.65% |
| Lake County | 1,402 | 351 | 134 | 35% | 5,833 | 619 | 9.42% |
| McHenry County | 604 | 149 | 89 | 39% | 2,912 | 253 | 11.50% |
| Dupage County | 1,538 | 240 | 123 | 24% | 5,568 | 671 | 8.29% |
| Will County | 1,312 | 319 | 141 | 35% | 4,595 | 513 | 8.96% |
In the second quarter of 2010, Foreclosure Sales and Short Sales together represent 24% -39% of all sales in each of the five counties researched.
There are three (3) times as many foreclosures than Short Sales in the second quarter of (April-June) 2010.
The Real Estate Market is still a buyers market. In each of the five counties surveyed it is taking anywhere from 7 months -12 months to close on a home.
The next few quarters for the real estate market will be challenging for several reasons.
The First Time Home Owners Tax Credit Expired April 30, 2010 and fewer qualified buyers are looking to purchase a home even though Mortgage Interest Rates are at a all time low.
There is speculation of a Double Dip in the Real Estate Market as a result of more Foreclosures come on the market. Right now the “Shadow Inventory” of foreclosures is paying attention to the abosorption rates discussed above.
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5 Personality Types People when Dealing with Stress
April 8th, 2010 categories: For Sellers, Short Sales
Family Therapist Virginia Satir identifies 5 personaliy types when people are in a stressful situation.
I would say working with homeowners in a Short Sale is definately a stressful situation so I suggest you become aware of these 5 personality types as you will most likely be confronted with them if you are a Short Sale Specialist.
- The Placater:
The Placater will do almost anything to avoid stress. Placaters tend to be a little narcissistic and are concerned about themselves and making a good impression. They feel uncomfortable in stressful situations and will ignore any situation that causes them discomfort. Direct confrontation is most likely not the approach you will want to do with a Placater.
- The Blamer:
The Blamer feels all alone in the world and tend to look to others as the reason for their misfortunes. When Blamers are confronted with stress they tend to feel more isolated, and will often take look to take charge of the situation and bluff their way out of a situation as a way to over compensate for their feelings of helplessness. It is important to make sure your client does not feel alone and to give and share some empathy with a blamer.
- The Computer:
The Computer does not like to show emotions and when confronted with stress will resort to logic and appear to be in control of their emotions when they are really churning mad on the inside. Beware of any explosions or melt downs when working with Computers.
- The Distractor:
The Distractor gets easily confused during stressful situations and will grasp for straws when looking for answers to their stress. You know you are working with a distractor when you scratch your head and ask yourself “Who is this Person”. They often will become someone your are not familiar with and so you must be aware that they too are not sure who they are.
- Leveller:
The Leveller is the ideal person to deal with stress. They like it when they are told things as they are without minimizing the situation. They are comfortable with who they are and can usually manage ambiquous situations. It would be nice if we all had clients who were Leveller’s during a Short Sale.
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SFR Certificate
March 25th, 2010 categories: Ask the "Specialist", For Buyers, For Sellers
The National Assoication of Realtors (NAR) offers a Short Sale and Foreclosure Certification Course to Realtors who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed property sales continues to grow.
I recommend working with a Realtor who has received the SFR designation to assist you when buying or selling a home in today’s market. According to a recent NAR survey, nearly one-third of all existing homes sold recently were either Short Sales or Foreclosures.
Realtors who have earned the SFR certificate know how to help sellers who need to sell their home as a Short Sale or help buyers with Short Sale and Foreclosure opportunities.
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5 Stages of Grief in a Short Sale
March 1st, 2010 categories: Ask the "Specialist", For Sellers, Short Sales
As a former Social Worker I am reminded of Elizabeth Kubler-Ross book “On Death and Dying’ and the five stages a terminally ill patient goes through when informed of their life threatening illness.
The five stages she identifies in her book are:
- Denial ( this isn’t happening to me!)
- Anger( why is this happening to me?)
- Bargaining ( I promise I’ll be better person if…)
- Depression ( I don’t care anymore)
- Acceptance ( I’m ready for whatever comes)
As I reviewed these five stages and relate them to Sellers I have worked with or am currently working with I am drawn to how these same stages are exactly what sellers go through when selling their home in a short sale.
Stage 1 Denial:
Many sellers who are falling behind in their mortgage payment often do not get help or seek help because they are in total denial. They often think nothing is going to happen to them even after the bank has sent them the Notice of Default letter.
Stage 2 Anger:
This is a very difficult stage. Many homeowners remain angry through the Short Sale/Foreclosure process. Reports of homes being trashed and appliances missing are usually the signs of people who have a lot of anger and direct this anger onto the property.
Stage 3 Bargaining:
This is the stage where sellers exhibit a lot of ambivalence. They do not want to loose their home and will do almost anything to keep it. Some sellers will contact their lenders and try to negotiate a loan modification while you are doing a short sale. You have to be aware of your seller in this stage because they are very vulnarble and will sabotage any efforts you have initiated because they have not truly accepted the need to sell their home.
Stage 4: Depression:
Sellers in this stage just stop caring about the house and will withdraw from you as their agent. It is important to maintain contact with your sellers during this stage and give them support and assure them that what they are doing is in their best interest.
Stage 5 Acceptance:
This is when you see your seller come out of their shell and begin to prepare for a life after the Short Sale.
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Home Affordable Foreclosure Alternative (HAFA) Explained
February 11th, 2010 categories: Ask the "Specialist", For Sellers, Short Sales
Home Affordable Foreclosure Alternatives (HAFA) will begin April 5th of 2009.
What is HAFA?
It is a new Foreclosure prevention program designed to streamline the Short Sale and Deed-in-lieu of foreclosure process.
- Those homeowners who are not eligble for the Home Affordable Modification Program (HAMP) can apply for the HAFA program. Those who do not qualify for HAMP and wish to avoid foreclosure can do so by applying for the HAFA program.
Who is Eligible for HAFA?
- Home owners who are delinquent or in default on their mortgage on their principal residence.
- Loan must have origination date January 1, 2009 or sooner.
- Amount of loan cannot exceed $730,000
- Current mortgage exceeds 31% of homeowners gross income.
What are the Steps?
Borrowers expresses interest in HAFA program.
Servicer has 14 days to determine Net Proceeds they will accept in Bank Directed Short Sale. This amount is expressed as a :
- % of current market value;
- % of list price;
- fixed dollar amount.
Step 2:
A Short Sale Agreement is put into action with a written agreement between lender/servicer and borrower. This agreement shall include:
- List Price/ Allowable Net proceeds to lender
- Guarantee 120 days or greater before lender can pursue foreclosure.
- Homeowner must agree to pay 31% of gross income while Short Sale is being considered
- Maximum Real Estate Commission of 6%. Realtor must also agree that out of the real estate commission a % or $ amount will be paid a third party vendor.
Step 3:
Borrower must provide evidence within 14 days of Short Sale Agreement (effective date)
- A signed copy of a Broker Listing Agreement at Approved List price.
- Information regarding any Subordinate Liens.
- Market the property 120 days or greater
- 3 business days to submit all offers
- Servicer has 10 days to approve all offers.
- Buyer has 45 days to get financing and close
- Borrower has 45 days to move out of the house from date contract has been acccepted.
HAFA Agrees to the following Payments :
- B orrower to receive $1,500.00 for moving expenses.
- Servicer to receive $1,000.00 for processing costs.
- Investor to receive a $1,000.00 back on maximum $3,000.00 paid to all subordinate liens.
Advantages to HAFA:
- No hidden administrative fees can be asked from borrower from servicer.
- The investor must waive all rights to seek a deficiency judgement.
Disadvantages of HAFA:
- Subordinate liens may not agree to $3,000.00 maximum payment.
- Investor owned property does not qualify.
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Family Searches Web For Help
October 26th, 2009 categories: For Sellers
By
Betty Cunningham
Re-Max Realtor and Staging Lady.
I recently received an email from a young couple who were on my website.
They were looking for an agent who could help sell their home.
After speaking with them it became apparent that the sale of their home was going to be a Short Sale.
They purchased the home 3 years ago, had multiple mortgages with no equity in the home. The recent loss of a job and having to care for 2 twins and a 4 year old has become a real hardship on the family.
I listed the home and continued to make price adjustments until I received a buyer for the home. We are in the process of negotiating the offer with the bank as a Short Sale.
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How Your Credit is Affected …
May 13th, 2009 categories: For Sellers
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How much Is Your Home Worth Today?
April 15th, 2009 categories: For Sellers
How much is your home worth today?
Depending on which county you live in your home has lost between 22%-42% of its value since 2007.
(Information provided in the table below comes from the MLS)
| County | Avg Price 2007 | Avg Price 2008 | Avg Price 1st Qtr 2009 |
| Cook | $377,370 | $327,801 | $231,606 |
| % Decline | 0% | 13% | 29% |
| Lake | $430,467 | $378,877 | $282,680 |
| % Decline | 0% | 12% | 25% |
| McHenry | $284,958 | $257,313 | $212,640 |
| % Decline | 0% | 10% | 17% |
| Kane | $299,724 | $275,390 | $208,937 |
| % Decline | 0% | 8% | 24% |
| Dupage | $449,508 | $415,413 | $357,122 |
| % Decline | 0% | 8% | 14% |
| Will | $286,961 | $266,858 | $221,381 |
| %Decline | 0% | 7% | 17% |
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Are You Upset about Declining Home Values?
April 2nd, 2009 categories: For Sellers, Local Markets
Are you upset about declining home values in your neighborhood. If you are you are not alone.
The other day I was asked by a neighbor to do a “Market Value” on her home because she is a senior and is thinking about selling her home and moving to a retirement community.
When I completed the “Market Value” I was shocked to see the lower value of homes even in my own neighborhood.
I remember 15 years ago several neighbors decided to put additions on their homes and we used the same contractor and were very happy with the results. Each year we saw our home values increase as a result of our home improvements.
Today is a different story. There are 3 homes on my own block which are listed as “Short Sales” and another 3 homes in the neighborhood that are bank owned foreclosures.
On a personal level I feel very sad about the current affairs of my neighbors and my neighborhood. I also realize that home values will continue to decline in my neighborhood just like other neighborhoods and there is little I can do about it.
I do have confidence that the home values will eventually stabilize and we will see the real benefits to home ownership in the near future.
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