What has been in the press is here in Lake Oswego, West Linn and many Portland areas – the short sale. Yes real estate prices have come down and that makes opportunity knock on the buyers door, but lenders are knocking on doors as well. Overall Lake Oswego and West Linn have seen the average price come down 12-18% year to date and many areas of Portland range in the high 20′s.
Great news for those sitting on the side lines with cash stashed for a down payment and interest rates now in the mid 4%. The step up buyer of the McMansion has many to choose from, but not so great news for a seller that is upside down because they did a refi at the peak in 2007 to consolidate bills, take a lifetime vacation, or send kids off to college. Or maybe 100% financing with an 80/20 loan package. What are their options now.
The answer is “It Depends”. Pretty grey I know…
Every home owners situation is different; as different as the many lenders that own the paper or are serving the loan. How many liens are against the property? Does the seller have other assets? Does the loan have MIP or are the HOAs on lien as well? These are just the starting questions in our conversation with a distressed homeowner.
NAR - National Realtors Association has stepped up their position to help real estate home owners, buyers and their agents understand that this may very well be the “New Norm” in real estate transactions. They have established a standard to assure Agents have the knowledge and tools to navigate the short sale and foreclosure waters.
SFR – Short Sale & Foreclosure Resource is a designation given to those agents that have completed course work and demonstrated an understanding of the options, pitfalls, and opportunities facing the real estate industry today. I work together with you and your lender as your 3rd party representative, and do not charge a fee for this service.
Sellers – there are many options for us to discuss. You may be seeking a loan modification, forbearance, reinstatement or another of the many “Loan Work Out Options”. Should none of these meet acceptable terms and a short sale is your next step, we can help.
Banks have taken their head out of the sand and are positioning themselves to help. They really do not want any more homes in their inventory. In the past 60 days Bank of American has hired over 5000 employees to assist in moving these files along (they have all the Country Wide & Greenpoint paper as well as others). Additionally, many lenders have signed on with Equator. An online system to help us agents keep up to date on exactly where the “short sale package” is in the system. This is a real benefit for all parties. And hopefully more and more lein holders will sign on to the program.
Should this be the road that makes the most sense – Remember, you “apply” for a short sale in much the same way as you made loan application to purchase the property. They want all the financials that support your distressed position. Now is not the time to get tricky.
There is so much I could write on the subject, but every situation is different. If you or someone you know is facing this stressful situation, give me a call. We will start at the beginning and see if a short sale is the right rode.
Roberta Nopson, ABR, SFR
503-495-5231
