by Gagner | Dec 25, 2012 | Uncategorized
If you haven’t heard yet, most banks today are foregoing foreclosure efforts in favor of short sales. Simply put, they have finally figured out that a short sale is actually more beneficial to their bottom-line than foreclosing on a property owner. This is important to know for those people who still find themselves “under-water”. That figure still comprises over 25% of California home-owners. How do you know if a short sale is the right strategy to pursue? There are many factors involved. First, ask yourself if you need to leave your house now or can you “wait out the storm”. If you don’t need to sell your house, then why damage your credit for 3-7 years (depending on your FICO score). The answer to this question is dependent upon your circumstances and your goals over the next many years. Even if you want to leave your house, it is important to recognize that banks will only approve a short sale if the owner can show a hardship, which includes: Unemployment, loss of hours or under-employed 50+ mile job relocation Business failure Medical losses Divorce or death of spouse Increased mortgage payments The bank will also want to know if you have considered other options, such as refinance, lender workout, forbearance, loan modification and rent it. If you meet the criteria above, a short sale may be the right strategy for you. If that is the case, be prepared for a tedious process that can easily take 60-90 days or more. The length of time required to complete this process depends on the financial institution(s) involved and the complexity of...
by Gagner | Oct 30, 2012 | Sellers
The situations that home sellers find themselves in are as varied as sellers themselves. With that said, most sellers will find that using the traditional sales approach works well and helps them meet their objective of getting maximum value for their home. But there are many times when a less traditional method for selling your home might be better. Typically this is the case when a seller has another primary objective besides getting the highest offer. In this article, I will cover those situations in which a cash offer is generally the best solution. The seller that needs to move quickly often cannot wait for the process of selling their home to a buyer that requires bank financing. Buyers that are “pre-approved” still require at least 4 weeks for the bank’s final approval and funding. Further, the lending standards have become so tight that over 30% of 2012 sales transactions in CA never make it to the finish line. When this happens, the seller has to start over and the process can become painfully long. In addition, when a transaction falls thru there is typically a negative impact on the final sales price. For sellers that need to sell in less than 4 weeks, they have one choice, which is to sell to a cash investor that does not require bank approval. It’s the only way in today’s market. What about the seller that has a physically distressed property? Banks are reluctant to finance homes that are in poor condition. Whether a house is inhabitable, and thus financeable, is a subjective matter. It is important to note...
by Gagner | Oct 14, 2012 | Sellers
There are times when selling your home using the traditional approach of hiring a real estate agent might not be your best choice. It is true that a real estate agent will list your house on the MLS (multiple listing service), and therefore maximize its exposure to the market. Generally speaking, this should maximize the amount of money you can obtain for your property. So why wouldn’t this always be the best approach? To answer that question directly, let’s consider any one of the following scenarios: Your house is in disrepair and the bank is unwilling to provide a loan to your buyer. You need to move quickly and do not have time to list and show your property to the market You require very flexible terms that a “retail” buyer might not be able to provide (ie. fast close or long close, etc) You hate the hassle of keeping your house perfectly clean and having prospective buyers come thru your home for the 30-60 days required to sell You do not wish to pay a realtor the 6% commission they will charge you for selling your home These reasons and many more may be why you should consider alternatives to selling your home using the traditional sales process. For example, private investors can buy your house fast, easy and often times with no sales commissions. In addition, there are many FSBO (for sale by owner) websites which help regular folks sell their homes without paying sales commissions and on their own terms. Lastly, there are many forms of seller financing and lease-to-buy options that can be used to...
by Gagner | Oct 14, 2012 | Sellers
Are you looking to sell your house, but find your circumstances to be unusual? If so, you are not alone. We hear from sellers every day who have challenging situations where a traditional approach to selling their home just won’t work. For example, a job transfer that requires a fast move to somewhere far away, or an inherited property that is in bad disrepair, or a family situation that calls for flexible terms (ie extended close date, rent back,,etc.). As discussed in my previous blog, private investors serve a purpose to help in these and many other “unusual” circumstances. Share your goals, and in most cases a solution can be found. The beauty of working with private investors is that they can generally offer the flexibility and creativity needed to help you solve your problem. But be careful, because not all investors are created equal. Besides obvious factors like experience and money (both critical to providing a successful solution), there are other factors that will either help you or hurt you. Does the investor have a team of people that will help him or her execute a smooth transaction? How experienced is their team? Does the investor have a consistent track record of following thru and closing on all their transactions, or do they let small hurdles become large hurdles? In other words, how willing are they to work with you if new challenges arise? What about their quiver of tools to give you choices and help you solve any problem? Perfect examples are seller financing, sale lease-back options and rent-to-own solutions. These might not be right for you,...
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