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Posts Tagged ‘short sale listings’

Oakland County MI Real Estate

A short sale is when the house is offered for sale by the owner (person as opposed to a bank) who owes more than what is owed. Once an offer is accepted, the bank has to agree to reduce the mortgage payoff. Usually some of the leg work has been done before the house ever hits the market, but there’s only so much that can be done prior to getting an offer. I have had answers back on short sale offers as quickly as a few days (this is VERY rare), but typically it takes 3-6 months to get an answer back on an offer, and sometimes that answer is just “no” with no counter.

If you need to get into your Oakland County home right away, looking at short sale listings is probably a bad idea. If you have time (and patience) you can usually get a pretty good deal on a short sale listing. It benefits the bank to take their loss now rather than wait and incur the costs of foreclosing. Short sale is also a searchable field in the multiple listing service (MLS) I belong to. Oakland County MI short sale listings can be searched or excluded from searches.

WARNING:

  • Short sales are not for the faint of heart
  • There is no guarantee the short sale will be approved
  • There is no guarantee if the short sale IS approved that it will be at the price agreed upon by you and the seller- SO be prepared for a counter offer
  • Do not even look at short sales if you are under any kind of time constraints!!

Search the MLS

What to Expect From Your Oakland County Buyer’s Agent

Financing Your Oakland County Home Purchase

Buying an Oakland County Foreclosure or Short Sale

Jackie Hawley, Realtor
ReMax Encore, Clarkston MI

Cell: 248-736-6407

Jackie@JackieHawley.com

www.MiRelocation.com

www.MacedayLake.com

www.OaklandCountyMichiganLakes.com

www.LakeOaklandHomes.com

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Buying an Oakland County MI Short Sale Listing- What to Expect

Between what I’ve heard on TV and radio, read and from conversations I’ve had with clients, potential clients, other agents, relatives, friends… I have learned that there are a whole host of definitions for the term “short sale.” And most of them not very accurate.

A short sale is when the house is offered for sale by the owner (person as opposed to a bank) who owes more than what the house is worth and can’t, or isn’t willing to, pay the difference themselves. Any offer that home owner would accept would be subject to the bank agreeing to reduce the mortgage payoff. Selling short. Short sale.

Short sale listings can be some of the best bargains available in Oakland County Michigan, but there are things about short sales that the Oakland County Michigan home buyer should be aware of prior to even looking at houses.

  • Be prepared to wait 3-6 months (sometimes longer) for short sale approval
  • Be aware the lien holders may not agree to the payoff required to proceed with your offer. After 3-6+ months your offer may be countered or outright rejected
  • Don’t expect appliances to stay
  • Don’t expect the seller to pay for repairs
  • Don’t expect your closing costs to be covered in the form of seller concessions- sometimes they’re capped at 3% and sometimes they won’t be covered at all
  • DO expect to close pretty quickly once the short sale is approved

One of the first things everybody involved in a short sale needs to understand is that the banks are under no obligation to approve a short sale. You would think it would be in the banks best interest to approve a short sale when the offer is reasonable, but often times the actions of many of these banks seem to defy logic. Also, the more lien holders involved in the transaction the more difficult it is to complete and the higher the probability that it won’t close.

Buyers need to realize that there are factors beyond the control of the buyer or buyer’s agent.

  • We can’t control how cooperative the seller will be with the bank’s demands addressed in more detail here
  • We can’t control how knowledgeable or diligent the listing agent is
  • We don’t know from day-to-day what financial incentives the government will offer the banks which can determine what short sales they approve
  • When there are multiple mortgages we don’t know how well the negotiators for the first and the second will play together or the abilities of the listing agent to ref them
  • The seller can also reject the terms of the short sale which will be addressed in detail in another article

In a nut shell– short sales can be a good bargain but for the right buyer. You need to have the patience of a saint and the ability to move on someone else’s schedule.

What if the Appraisal is Low?

Search the MLS

Property Taxes and Your Home Purchase

Is the Appraisal for Your Protection?

Jackie Hawley
Keller Williams Realty
Cell: (248) 736-6407
Email: Jackie@JackieHawley.com
www.MiRelocation.com

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Short Sales Are NOT Worked Out Before Listing the House

If you are buying a home in North Oakland County or Lapeer County MI you are probably seeing a lot of houses offered as a short sale. A short sale is when the seller owes more than they can sell for and are asking the bank(s) to reduce their mortgage payoff.

Unlike a mortgage pre-approval there is no short sale pre-approval. The asking price you see on a short sale listing is a price the seller and his agent came up with. If the agent is a good agent it should be a price the lender will accept ifthey approve the short sale. The lender will have the house appraised or order a BPO (broker price opinion) before approving a reduced mortgage payoff. If the appraisal comes back at $200,000 the lender will not approve a short sale with a $100,000 sale price. Recently we had a lender counter a short sale price by $50,000- AFTER a 5 month wait.

The 2 main things to remember when considering a short sale listing:

  1. The lien holder does NOT have to approve the short sale
  2. And if they do they approve the short sale they may not approve at or below the asking price

If you are considering purchasing a home in North Oakland or Lapeer County MI, please contact me.

Jackie Hawley
Keller Williams Realty

cell: (248)736-6407

Jackie@JackieHawley.com

Buying a Short Sale

The Nuts and Bolts of Buying an Oakland or Lapeer County Home

Short Sale Approval is Also Subject to the Seller’s Approval

What Makes a Good Short Sale Agent

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Buying a Short Sale in Oakland County Michigan

Since at the current time my categories and tags are a mess I thought it would be a good idea to have all my posts about buying a short sale in one place- hence this post. Below are links to blog posts I’ve written about writing an offer on a short sale, some tips to help make the process go smoother, and what to expect.

Short sales are not for the faint of heart. It will usually take 3-6 months to even know if the seller’s bank(s) will approve your offer. The seller has different motivations than with a normal sale thus negotiation tactics will be different with a short sale than with a regular sale or foreclosure sale.

The first link is for a post covering the basics of writing an offer on any Oakland County or Lapeer County Michigan Home. The rest of the links are more specific to short sale listings.

Writing an Offer on a Southeast Michigan Home

Short Sales in Southeast Michigan- What to Expect

Buying a Southeast Michigan Short Sale Listing- Negotiating Tips- Part 1 of ?

Buying a Southeast Michigan Short Sale Listing- Negotiating Tips- Part 2 of ?

Buying a Southeast Michigan Short Sale Listing- Negotiating Tips- Part 3 of ?

Short Sales and Seller Concessions- Important Update!

“Highest” and “Best” are Not Synonyms

Contingent Offers on Distressed Sale Homes

Southeast Michigan Short Sale Buyer- Beware the Flopper

Please don’t hesitate to contact me if you have any questions or are in the market to buy a house in Oakland or Lapeer County Michigan.

Jackie Hawley
cell: (248)736-6407
Jackie@JackieHawley.com
Search The MLS

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Buying a Southeast Michigan Short Sale Listing- Negotiating Tips- Part 2 of ?

Short sales are about a quarter of the sales lately in Lake Orion and Oxford Michigan. So unless you are in a hurry to close on a new house, you will more than likely be looking at short sale listings– they are becoming very difficult to ignore.

Remember- the seller walks with nothing but bad credit. If the listing agent did his/her job the seller will be protected from future lawsuit from their lien holder(s). Sometimes the threat of a future lawsuit will just be waived by the lien holders, but often times the seller has to pay for that piece of mind.

Usually the second mortgage is the problem when it comes to obtaining a deficiency judgement in the future. I’ve had sellers who had this threat negotiated away by setting up a zero interest payment plan for a portion of the outstanding debt (usually about 10%) and I’ve had sellers bring money to the closing.

So this brings us to buyer tip #2! Don’t ask for personal property in the purchase agreement. More than likely you are going to get the house at a great price. You might even be willing to pay more for the house than you’re getting it for. So if you want the seller’s appliances or boat or lawn tractor, etc. offer to buy them outside of the real estate sale. There’s a good chance the seller will need that money to buy a waiver of liability for the deficiency. Since appliances/boats/lawn tractors are not real estate, they do not need to be part of the purchase agreement. And the cash the seller will be getting may be the difference between the seller approving the short sale conditions or rejecting them and allowing the house to go into foreclosure.

Jackie Hawley
Keller Williams Realty
cell: (248)736-6407
email:
Jackie@JackieHawley.com
web: www.MiRelocation.com

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