Posts Tagged ‘short sales’

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.


  • 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






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Southeast Michigan Short Sales- Why You Should Avoid Many Of The So Called “Short Sale Specialists”

I will preface this post with a kind of anti-disclaimer: If you have to sell via short sale, I DO NOT WANT TO LIST YOUR HOUSE. If you are a past client or a friend, I will list your house if selling via short sale is the best option for you, and you agree to my rules. So this post is NOT to get your short sale business.

I have my own reasons for not listing short sales, one of them being the success rate to close. In just general MLS searches for buyers and for market anlaysis’ for listings, it appears that about 1/3 of the houses that go pending short sale approval, end up back on the market or foreclosed. I personally never saw the benefits of a business model that has a 1/3 failure rate built into it.

Then today, one of my associates received an e-newsletter from a local “short sale team.” They bragged a bit about having closed over 100 short sale transactions in the past year. They then go on to crow about the fact they “process on average 75 active short sales daily…” Hmmmm. I was never a math genius, but I do own a calculator and that comes out to 100 closings for every 27,000+ clients they take on. So about one third of one percent of their business actually closes.

Since I can’t convince all my buyer clients to avoid short sale listings, PLEASE PLEASE PLEASE hire a good, experienced, successful agent to handle your short sale. Someone who was a good and successful agent BEFORE short sales became such a big business. To me it looks like many of the “specialists”, whether they are attorneys or real estate agents, specialize in listing a high volume of distressed homes with a small success rate. From a seller’s perspective, you may want to consider quality over quantity.

What Makes a Good Short Sale Agent?

Short Sale Approval is Subject to Seller Approval of the Terms

Bad Advise From Your Realtor? From Your “Short Sale Specialist”? What Are Our Responsibilities? Where Does The Buck Stop?

Jackie Hawley

Keller Williams Realty, Clarkston MI

Cell: (248) 736-6407


Buying Real Estate In Oakland County Michigan

Writing the Offer


The Home Inspection

Foreclosures and Short Sales 

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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


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

Search the MLS

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lying rat media

lying rat media

Lake Orion Michigan 3rd Quarter Home Sales- Cold Hard Facts Refute Media Reports Regarding Foreclosures. Which is a fairly nice way of stating that, again, the main stream media is full of shit and spreading alarmist and untruthful information regarding the state of housing sales. I kept hearing all day how foreclosures in Michigan are not only up for the 3rd quarter compared to the 3rd quarter of 2009; I was hearing reports about how foreclosures in Michigan were hitting record highs.

First of all, at least one of the sources quoted counts foreclosure notices as a foreclosure. Many of those houses will never go to foreclosure sale. Secondly, you can’t take Detroit statistics and claim that is reflective of the rest of the state. The way I was raised this is the same as lying. If you are of a more forgiving nature this is at a minimum misleading.

You need to look at individual communities to gage the recovery of the real estate market. This blog post will discuss the sales trends for Lake Orion Michigan– both the township and the Village.

The facts are:

Lake Orion Michigan unit sales for the 3rd quarter of 2010 were down from last year but are still up over last year through the first 3 quarters.

The Lake Orion Michigan median sale price for the 3rd quarter of 2010 was up 12.8% – $158,250 vs $138,000 in 2009.

The median monthly sale price in Lake Orion Michigan was up over last year for the last 5 months in a row and 6 of the past 9 months. 

lake orion michigan monthly median sale prices

2010=yellow 2009=blue

There were 27 foreclosure sales in the 3rd quarter of 2010 (or 33% of total sales) vs 56 foreclosure sales for the same period in 2009 (or 46% of total 3rd quarter sales).

Short sales made up 22% of total sales for the 3rd quarter of 2010 and only 4% of total 3rd quarter sales in 2009. The decrease in foreclosure sales and increase in short sales are probably a huge factor in the increase in median sale price.

Also the decrease in inventory is a contributing factor for the increase in sales price.all is not rosy in the lake orion michigan housing market

All is not rosy in the Lake Orion Michigan housing market, but it is much better than the media would have you believe. Have we hit rock bottom? Who knows? Only time will tell; we won’t know where the bottom is until we’ve passed it. But facts are facts and the bilge the media has been spewing is far from factual.

Lake Orion Michigan Detailed Sales Data

Neighborhood Sales Data

Lakefront Sales Data by Lake   

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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
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
web: www.MiRelocation.com

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