More about short sale procedure!!!! (appraisal, foreclosure, agent, mortgage)

[Norm Barnes]

Realtor goes to the property and meets with you unless assigned to case as short sale agent preapproved by lender. They listen to the horror that has you in this position. They analyze the facts and establish a realistic value -- and then the fun begins. They contact the lender -- the lender sends out a short sale packet and offers a generic letter promoting a remodification. They require an application for short sale/remodification to be completed along with two years tax returns, year to date paystubs, last bank statement and a hardship letter signed and indicating your SSAN. The realtor signs up to be your short sale agent. He follows almost daily to insure all the documents have been received by the "Negotiator" of the Bank. While all this is happening dependent on how long you have waited to take necessary action there may be a foreclosure date established. The Realtor now follows closely to insure a "Stay" is posted and stops the sale. Meanwhile if its a domestic situation you are full time Realtor and part time counsellor. If all works well then a "Stay" is posted. The Realtor in some cases will be alloted 120 days to sell the property. A form will be signed that if after 120 days the house is not sold then you will give the Mortgage company the keys and vacate the property. At about this time the Bank will order an appraisal and if it appraises for an amount more then you have established as a sales price a new listing must be created and on the other hand if less reduce the selling price. Once an offer is received from a "Preapproved Buyer" not prequalified but Preapproved you have to negotiate with an inner-office agent or one from outside the nuances like are the utilities on, has the property been winterized is FHA Financing allowed whose to pay the repairs (Answer:Buyer) and the U&O and whatever. Okay the average consumer has no idea how much work is involved and at any level of information required if there is foot stomping, pouting, disagreement this can become an even more arduous task. So let me ask you "What does a Realtor do or can do?" -- as much as he possibly can -- why?? -- Because its his business...................

[Norm Barnes]

An interesting fact has arisen in this housing melee. The charted cost of homeownership has moved curiously downward from the fair market rental. Stated in English your cost of rental exceeds the monthly mortgage payment to buy. This provides an important alternative to a homeowner who has not waited until the last minute to find a cure. I have calculated on the last 3 short sales that each of these homeowners could have rented the property and covered or nearly covered the mortgage payment. Check this out if the distressed homeowner rents his distressed home out and now rents another property -- he still gets a standard deduction plus all the write-offs that a Landlord would have on his 1040E (Income/Loss from Rental). This could save the day for this individual -- spread the word and maybe an aspect of the current piteous problem can be managed.