Donald Trump: Why Now Is The Best Time Ever to Buy a House | Daily Ticker - Yahoo! Finance

Donald is keen on buying bank owned properties. One time I fully agree with Donald!

Donald Trump: Why Now Is The Best Time Ever to Buy a House Daily Ticker - Yahoo! Finance

Underwater Borrowers Hold Back Sales

I see this everyday.  A healthy economy and active Real Estate market depends on move-up action.

Daily Real Estate News | Wednesday, September 14, 2011

Declines in home values have pushed a high number of home owners to be “underwater,” in which borrowers owe more on their properties than they are current worth, and it’s hampering home sales, according to new data by CoreLogic. 
About 10.9 million, or 22.5 percent, of all residential properties with a mortgage were in negative equity at the end of the second quarter, down slightly from 22.7 percent in the first quarter, CoreLogic reports. What’s more, about 2.4 million borrowers had less than 5 percent equity, which CoreLogic refers to as “near-negative equity,” in the second quarter. 
Since the peak in home sales in 2005, nondistressed sales in ZIP codes with low negative equity have dropped 61 percent, compared to an 83 percent sales decline in high negative equity ZIP codes. 
“The typical seasonal changes in sales volume in high negative equity ZIP codes is very muted, which indicates that nondistressed sales are being heavily impacted by the high levels of negative equity in their neighborhood, even if sellers have equity,” according to CoreLogic’s report. 
“High negative equity is holding back refinancing and sales activity and is a major impediment to the housing market recovery,” says Mark Fleming, chief economist with CoreLogic. “The hardest hit markets have improved over the last year, primarily as a result of foreclosures. But nationally, the level of mortgage debt remains high relative to home prices.” 

Why buy a bank owned property.....

A bank owned property is held and sold by the bank or institution with no sentimental attachment to the property.  Banks do not have an emotional stake, so they’re unlikely to enter into complicated negotiations.  Just the facts with no emotional attachment.

Banks and Investors favor Short Sales over Foreclosure

Reasons why:

• Short sales help neighborhoods
• Bank owned properties (REO's) sell for 10 to 15% less than Short Sales
• It helps borrowers save face and not face the embarrassment of a foreclosure
• The borrower can go back and buy another home a lot sooner after a short sale
• Short sales save the time to put an REO on the market
• Short sales help customers, buyers, agents, investors who own the notes and the neighborhoods

Foreclosure - don't let the process control you!

Take action now! Don't "bury your head in the sand". I often see situations where people have fallen behind and wait too long to seek help.  Bad strategy.  The better strategy is to do everything you can to remain in control of the situation.  Reach out - seek help.  Don't let the process control you!

You can't squeeze water from a stone!

Although I know banks that have tried.  For Short Sales, typically I believe if a borrower is facing a true hardship and has no assets nor means of making a mortgage payment, the lender is unlikely to try to force the borrower to pay back any of it. It does not mean a lender is not entitled to a deficiency judgment, if circumstances warrant.

"Can I short sell my house if I have not stopped making payments?"

The answer to this depends on your lender, the investor on the mortgage and timing.  In most cases lenders will consider an “Eminent Default Short Sale” provided the property is listed for sale. So if you are currently making your payments, but you have circumstances which will make it impossible for you to make the payments in the future then you are likely to have an eminent default and can potentially qualify for a short sale.  With short sales there are no guarantees. If you have any questions about short sales and have property on Mercer Island or the Eastside please contact Ken Urman, Distressed Property Specialist with Ewing and Clark, (206) 232-5700.

Just announced incentive for buyers of Fannie Mae REO properties

Buyers of Fannie Mae backed REO properties will receive 3.5% of the purchase price towards their closing costs. For many homebuyers, the added expense of closing costs is an unpleasant shock. This promotion may take some pain out of that first step in homeownership.

Promotion Guidelines:

• Buyer’s or seller’s agents must request the incentive with the initial offer
• Offer must be submitted on or after April 11, 201,1 and close by June 30, 2011
• The buyer must use property as a primary residence, and will have to sign an Owner Occupant Certification Rider included with the purchase contract
• If buyer’s closing costs are less than 3.5%, there is no credit for the difference

This is a terrific step towards clearing their portfolio of their

Proud to be Certified by RES.NET as an REO Agent

Just want to brag that I passed a rigorous certification course.  I am now a professional member of RES.NET with REO certification. 

SHORT SALES DO WORK.

Just closed one with great overall success.  All parties extremely happy. 1st time home owners, sellers starting over and an asset off the books for the bank.  Des Moines, Washington; 4br over 2,000 sq. ft.