Yesterday I gave you five key points to determine whether or not you should list your house with an investor who is ultimately going to purchase your home in a short sale situation. Here are a few more topics.
6). Earnest deposit. Let's face it, an earnest deposit is required on nearly every real estate transaction in the United States. So expect them to open escrow upon your acceptance of the purchase offer and put down a reasonable earnest deposit.
7). What if the offer is cash? Well then you should require to see proof of funds, you may be surprised to find out that some cash offers are really not cash at all. It is just financing and a buyer trying to present a "better looking" offer.
8). You need to know what will happen if the bank does not accept the offer that is presented from the investor. Your home is listed with their preferred listing agent, who has submitted an offer to the bank with an amount they want to pay for it. Remember you as the seller have signed the purchase offer and agreed to sell your home to them. You cannot just back out now, but what if the bank is not accepting the offer? Will they continue to market your home to other potential buyers? Or will they keep your home under contract until it forecloses.
9). As with any transaction, whether it be real property or other, you need to use your best judgment and be sure to do your due diligence.
As with any real property transaction in Maricopa and Pinal counties, we recommend you use us! Marie Zubkoff 480.233.7051 and Andrew Walsh 602.527.2639 with US Preferred Realty. Visit us at http://YourGilbertHome.com Thank you!
Showing posts with label short sale. Show all posts
Showing posts with label short sale. Show all posts
Tuesday, August 11, 2009
Monday, August 10, 2009
Investors Listing & Buying Short Sales?
Have you been contacted by an investor that wants to list and buy your short sale? Here are five tips to think about and questions to ask before listing with them. We will cover more on another day.
1). Are they requiring the use of their preferred listing agent or REALTOR? If so who is that listing agent representing. Who is going over the listing agreement with you? Is it the investor who is buying the property or the listing agent who is supposed to represent you?
2). Make sure you receive and fully understand the agency disclosure and election. NO real esate transaction should ever take place without a buyer AND seller acknowledging both sides by signing this!
3). What are the current market comparables to your home? Ask for this and review them. Make sure the homes accurately represent yours.
4). Short sale addendum, make sure there is a short sale addendum included and you thoroughly read and understand it.
5). Look for, Read and Understand the opt out clause. Generally as a seller if you accept a buyer's offer, you must sell your home to them. In the presence of a short sale though, the sale is contingent upon the lender's or "third parties" approval (if a short sale addendum is included).
A bonus tip when you are working with investors, is to make sure all of the forms are drafted from boiler plate Arizona Association of REALTORS forms. These forms are created in the interest of the general public. Please please please if you do not understand any of the forms, consult an attorney to help explain them to you.
If you are approached by an investor looking to purchase your home, please also interview other agents whose primary focus is to sell your home rather than buy it to make a profit. A traditional REALTOR has the same goal as you which is to sell the home. Not to buy it in hopes to make a big profit.
Contact Marie Zubkoff at 480.233.7051 or Andrew Walsh at 602.527.2639 with US Preferred Realty to discuss your Arizona Real Estate needs. If you are a buyer or seller, we can help. visit us at http://YourGilbertHome.com Thank you!
1). Are they requiring the use of their preferred listing agent or REALTOR? If so who is that listing agent representing. Who is going over the listing agreement with you? Is it the investor who is buying the property or the listing agent who is supposed to represent you?
2). Make sure you receive and fully understand the agency disclosure and election. NO real esate transaction should ever take place without a buyer AND seller acknowledging both sides by signing this!
3). What are the current market comparables to your home? Ask for this and review them. Make sure the homes accurately represent yours.
4). Short sale addendum, make sure there is a short sale addendum included and you thoroughly read and understand it.
5). Look for, Read and Understand the opt out clause. Generally as a seller if you accept a buyer's offer, you must sell your home to them. In the presence of a short sale though, the sale is contingent upon the lender's or "third parties" approval (if a short sale addendum is included).
A bonus tip when you are working with investors, is to make sure all of the forms are drafted from boiler plate Arizona Association of REALTORS forms. These forms are created in the interest of the general public. Please please please if you do not understand any of the forms, consult an attorney to help explain them to you.
If you are approached by an investor looking to purchase your home, please also interview other agents whose primary focus is to sell your home rather than buy it to make a profit. A traditional REALTOR has the same goal as you which is to sell the home. Not to buy it in hopes to make a big profit.
Contact Marie Zubkoff at 480.233.7051 or Andrew Walsh at 602.527.2639 with US Preferred Realty to discuss your Arizona Real Estate needs. If you are a buyer or seller, we can help. visit us at http://YourGilbertHome.com Thank you!
Saturday, August 8, 2009
Taylor Bean to Cease Operations
Here is a link to an article by James R Hagerty regarding the Taylor Bean mortgage lending corporation... http://http://online.wsj.com/article/SB124949523458308423.html
This anouncement will hold up many home purchases that were awaiting to close if they were using Taylor, Bean & Whitaker for lending or funding. Not only that, but many of the borrowers may find themselves having to pay perdiem charges if they were purchasing an REO home. Many sellers may lose their buyers and ultimately end up with their home foreclosed if that buyer cannot get new financing right away. This is not just a secondary purchaser of loans, this is a company that would actually fund the purchase.
Please call Marie Zubkoff 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty to purchase your home in Arizona or if you need to sell your home. We excel in short sales and distressed properties. Visit us at http://YourGilbertHome.com.
This anouncement will hold up many home purchases that were awaiting to close if they were using Taylor, Bean & Whitaker for lending or funding. Not only that, but many of the borrowers may find themselves having to pay perdiem charges if they were purchasing an REO home. Many sellers may lose their buyers and ultimately end up with their home foreclosed if that buyer cannot get new financing right away. This is not just a secondary purchaser of loans, this is a company that would actually fund the purchase.
Please call Marie Zubkoff 480.233.7051 or Andrew Walsh 602.527.2639 with US Preferred Realty to purchase your home in Arizona or if you need to sell your home. We excel in short sales and distressed properties. Visit us at http://YourGilbertHome.com.
Thursday, August 6, 2009
Short Sales
Much has been made of short sales and foreclosures in the state of Arizona. People generally argue which is better and often bring the topic of bankruptcy in their conversation. This post will be relatively short considering the depth of this overall topic of Arizona Real Estate. Some key differences between a short sale and foreclosure are the credit reporting, a foreclosure will do more damage to your credit score and for a longer period of time. Your eligibility to get another loan (conforming loan that Freddie or Frannie would buy on the secondary market). If you are foreclosed on a home, then you cannot get a conforming loan for FIVE (5) years! A short sale will only cost you TWO (2) years. In a foreclosure, if the lender (usually the second if it is a HELOC or a cash out refinance) has a right to a deficiency, they can still try to collect from you after a foreclosure. In a short sale, it is sometimes possible to have both or at least the second lien holder to put in writing they will NOT pursue the deficiency! There are three valuable reasons to entertain a short sale instead of a foreclosure. I did not discuss a "Deed in Lieu of Foreclosure" because lenders generally will not accept those without first trying to do a short sale, and a Deed in Lieu will leave that lender responsible for all other liens on the property.
Contact Marie Zubkoff 480.233.7051 or Andrew Walsh 602.527.2639 for more information on a short sale. If you need a referral to a qualified CPA or Attorney, call us we can get you help. http://yourgilberthome.com/
Contact Marie Zubkoff 480.233.7051 or Andrew Walsh 602.527.2639 for more information on a short sale. If you need a referral to a qualified CPA or Attorney, call us we can get you help. http://yourgilberthome.com/
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