Status: U Return-Path: Received: from mx-collie.atl.sa.earthlink.net ([127.0.0.1]) by mx-collie.atl.sa.earthlink.net (EarthLink SMTP Server) with SMTP id 1lLC9T3cI3Nl36t0; Mon, 23 Mar 2009 00:53:09 -0400 (EDT) Received: from wsmarth-swift.pas.sa.earthlink.net ([207.217.120.253]) by mx-collie.atl.sa.earthlink.net (EarthLink SMTP Server) with ESMTP id 1lLC9TPo3Nl36t0 for ; Mon, 23 Mar 2009 00:53:09 -0400 (EDT) Received: from domrl-ground.atl.sa.earthlink.net ([207.69.231.199]) by wsmarth-swift.pas.sa.earthlink.net with smtp (Exim 3.36 #4) id 1Llc9l-0004Mu-00 for merileek@earthlink.net; Sun, 22 Mar 2009 21:53:01 -0700 X-ELNK-Loop: merileek@kerncommunications.com Received: from dukecmmtar04.coxmail.com ([68.99.120.47]) by domrl-ground.atl.sa.earthlink.net (EarthLink SMTP Server) with ESMTP id 1lLC9F3Mp3Nl5vF0 for ; Mon, 23 Mar 2009 00:52:55 -0400 (EDT) Received: from merilee07cf8a9 ([68.15.13.44]) by dukecmmtar04.coxmail.com (InterMail vM.7.05.02.00 201-2174-114-20060621) with SMTP id <20090323044444.VRCA2174.dukecmmtar04.coxmail.com@merilee07cf8a9>; Mon, 23 Mar 2009 00:44:44 -0400 Message-ID: <12031B40E5594A49BCFAD02CF6D5895E@merilee07cf8a9> Reply-To: "Merilee:::Kern Communications" From: "Merilee:::Kern Communications" To: , References: <000e0cd51a72f6de160465befced@google.com> Subject: MarketWatch.com Placement Date: Sun, 22 Mar 2009 21:52:58 -0700 Organization: Kern Communications MIME-Version: 1.0 Content-Type: multipart/related; boundary="----=_NextPart_000_06FD_01C9AB38.90406F70"; type="multipart/alternative" X-Priority: 3 X-MSMail-Priority: Normal X-Mailer: Microsoft Outlook Express 6.00.2900.5512 X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.5579 X-ELNK-AV: 0 X-ELNK-Info: sbv=0; sbrc=.0; sbf=00; sbw=010; This is a multi-part message in MIME format. ------=_NextPart_000_06FD_01C9AB38.90406F70 Content-Type: multipart/alternative; boundary="----=_NextPart_001_06FE_01C9AB38.90406F70" ------=_NextPart_001_06FE_01C9AB38.90406F70 Content-Type: text/plain; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable http://www.marketwatch.com/news/story/five-warnings-heed-if-youre/story.a= spx?guid=3D%7BC17D46FA-D819-408F-90CB-D65CEA4DF6D9%7D&dist=3Dmsr_1 REAL ESTATE Short sales, slow sales Check out short sale properties, but get ready to play the waiting game By Amy Hoak, MarketWatch Last update: 10:40 a.m. EDT March 22, 2009 CHICAGO (MarketWatch) -- Those searching for the best housing bargains = on the market might consider buying a short-sale property. But there's = an important qualification for buyers interested in going this route: = They need plenty of patience. In a short sale, a homeowner's lender agrees to accept less than is owed = on the mortgage for the property. It's a useful alternative for = borrowers underwater on their mortgage and on their way to foreclosure. = As home prices continue to decline, short sales have become a viable = option for those who need to sell.=20 "Over the past three to six months, the servicers have really become = aware that short sales are the best way to reduce their losses... when a = modification is not an option," said Travis Hamel Olsen, president of = National Short Sale Center, a company that facilitates short sales = nationwide on behalf of homeowners and real estate agents. The = short-sale option also is less damaging to a seller's credit than a = foreclosure, he said.=20 A short sale can also be attractive to a home buyer since the lender = will often accept bids on the property that can be 10% or more below the = market value, determined by the prices of comparable, nearby properties, = Olsen said.=20 Although the mortgage balance is probably greater than the price a = seller could expect in a traditional sale, the lender may be willing to = take less than it's owed in a short sale if it can avoid the further = expenses of foreclosing and taking over the property. The savings, = however, often come at the expense of a home buyer's time.=20 "Short sales should be called long sales," said Leslie Tyler, vice = president of marketing for ZipRealty. "In some cases, it could take = months for a buyer to hear back from a lender."=20 For Kristine and John Williams the savings seem to be worth the wait.=20 Kristine Williams says they've found "the perfect house" in Brentwood, = Calif., although the process is taking longer than they originally = thought. The couple waited four months for an answer from the bank, and = then had to revise their bid lower as the market continued to sour.=20 Their current bid is $550,000, on a home that was appraised at about $1 = million three years ago. They're hopeful the current bid will be = successful, but realize it could be months before they find out if the = offer is accepted.=20 "In general, it takes a minimum of two months to get a response from the = bank whether they will accept or counter your offer," said Rob Jenson, = CEO of The Jenson Group, a Las Vegas-based real-estate firm. "That = process could take longer."=20 Are the savings worth it to you? Consider these five caveats before = shopping for a short sale:=20 1. You'll wait in the dark Perhaps just as frustrating as the wait time is the fact that you likely = won't be privy to details as the deal is progressing. That could mean = going months without an update.=20 Banks are "ramping up their capability for short sales," said Dennis = Green, general manager of ForeclosurePoint.com. But it hasn't made the = process much easier.=20 "Where our buyers have been the most frustrated is the lack of status or = information," Tyler said. Saying "we want an answer by this Friday or = we're going walk... doesn't make a difference," Jenson said.=20 There are reasons for the wait: A lender could be considering multiple = offers. If the seller had both a first and second mortgage, that could = also make the process more complicated. The Williamses ran into both = scenarios, slowing their process down -- and that's not unusual. The = homeowner also has to prove their financial hardship to the lender.=20 2. Banks will make you a deal, but within reason There are deals to be found in short sales -- but don't expect outright = steals. A buyer needs to make a fair offer, based on comparable homes = that have been sold recently, Jenson said. The offer should be = aggressive, but not ridiculous, he said.=20 "The misconception is that banks should be happy to get it off the = books," he said. "They are, but to a certain point."=20 Homes that have already been foreclosed on may be even less expensive = than a short sale, Tyler said. But bank-owned properties also might be = in worse shape, especially if the foreclosure home has been sitting = vacant for some time, she added. It's important to consider the cost of = necessary repairs before buying any distressed property.=20 3. Sales are 'as is' In a short sale, it isn't likely that you will get allowances from the = seller for repairs that are needed, as you might in a traditional sale, = Jenson said. Do a home inspection and know what you're getting into, but = remember that your bid is for the property "as is."=20 "The seller will not give you a credit for repairs," he said. "The last = thing they will do is make repairs."=20 4. Have a back-up plan Even if you decide to bid on a short-sale property, it might be best to = keep looking anyway.=20 "There is no guarantee with short sales, and if the buyer is smart they = will put an offer on a short sale they like and continue to look at = properties that interest them," Olsen said. It isn't uncommon for people = to find a home they like better and kill the short-sale deal, Green = said.=20 That said, when a offer is accepted and earnest money is put down, = remember that you risk losing those funds if you decide to walk away and = buy another home, he added. It may take months before the deal closes, = even after the offer is accepted.=20 5. It's not only about price "One thing to not lose sight of is you're buying a house to live in. Buy = a house you like," Tyler said. She recommends that prospective buyers = remain open to properties of all types -- short sales, bank owned and = traditional sales -- and compare prices and features.=20 A short sale is only a bargain if it's a home that you truly want to = live in -- not something you're drawn to only because of its low price = tag. =20 Amy Hoak is a MarketWatch reporter based in Chicago. ------=_NextPart_001_06FE_01C9AB38.90406F70 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable
http://www.marketwatch.com/news/story/five-warnings-heed-if-youre/= story.aspx?guid=3D%7BC17D46FA-D819-408F-90CB-D65CEA4DF6D9%7D&dist=3Dm= sr_1
 
 
REAL=20 ESTATE

Short sales,=20 slow sales

Check out short=20 sale properties, but get ready to play the waiting game

By Amy Hoak, MarketWatch
Last update: 10:40 a.m. = EDT March 22,=20 2009
 
CHICAGO (MarketWatch) -- Those = searching for the=20 best housing bargains on the market might consider buying a short-sale = property.=20 But there's an important qualification for buyers interested in going = this=20 route: They need plenty of patience.
 
In a short sale, a homeowner's lender agrees to accept = less than is=20 owed on the mortgage for the property. It's a useful alternative for = borrowers=20 underwater on their mortgage and on their way to foreclosure. As home = prices=20 continue to decline, short sales have become a viable option for those = who need=20 to sell.=20
"Over the past three to six months, the servicers have = really=20 become aware that short sales are the best way to reduce their losses... = when a=20 modification is not an option," said Travis Hamel Olsen, president of = National=20 Short Sale Center, a company that facilitates short sales nationwide on = behalf=20 of homeowners and real estate agents. The short-sale option also is less = damaging to a seller's credit than a foreclosure, he said.
 
A short sale can also be attractive to a home buyer since = the=20 lender will often accept bids on the property that can be 10% or more = below the=20 market value, determined by the prices of comparable, nearby properties, = Olsen=20 said.
 
Although the mortgage balance is probably greater than = the price a=20 seller could expect in a traditional sale, the lender may be willing to = take=20 less than it's owed in a short sale if it can avoid the further expenses = of=20 foreclosing and taking over the property. The savings, however, often = come at=20 the expense of a home buyer's time.
 
"Short sales should be called long sales," said Leslie = Tyler, vice=20 president of marketing for ZipRealty. "In some cases, it could take = months for a=20 buyer to hear back from a lender."
 
For Kristine and John Williams the savings seem to be = worth the=20 wait.
 
Kristine Williams says they've found "the perfect house" = in=20 Brentwood, Calif., although the process is taking longer than they = originally=20 thought. The couple waited four months for an answer from the bank, and = then had=20 to revise their bid lower as the market continued to sour.
Their current bid is $550,000, on a home that was = appraised at=20 about $1 million three years ago. They're hopeful the current bid will = be=20 successful, but realize it could be months before they find out if the = offer is=20 accepted.
 
"In general, it takes a = minimum of two=20 months to get a response from the bank whether they will accept or = counter your=20 offer," said Rob Jenson, CEO of The Jenson Group, a Las Vegas-based = real-estate=20 firm. "That process could take longer."
 
Are the savings worth it to you? Consider these five = caveats before=20 shopping for a short sale:
 
1. You'll wait in the dark
 
Perhaps just as frustrating as the wait time is the fact = that you=20 likely won't be privy to details as the deal is progressing. That could = mean=20 going months without an update.
 
Banks are "ramping up their capability for short sales," = said=20 Dennis Green, general manager of ForeclosurePoint.com. But it hasn't = made the=20 process much easier.
 
"Where our buyers have been = the most=20 frustrated is the lack of status or information," Tyler said. Saying "we = want an=20 answer by this Friday or we're going walk... doesn't make a difference," = Jenson=20 said.
 
There are reasons for the wait: A lender could be = considering=20 multiple offers. If the seller had both a first and second mortgage, = that could=20 also make the process more complicated. The Williamses ran into both = scenarios,=20 slowing their process down -- and that's not unusual. The homeowner also = has to=20 prove their financial hardship to the lender.
 
2. Banks will make you a deal, but within reason
 
There are deals to be found = in short=20 sales -- but don't expect outright steals. A buyer needs to make a fair = offer,=20 based on comparable homes that have been sold recently, Jenson said. The = offer=20 should be aggressive, but not ridiculous, he said. =
 
"The misconception is that = banks should=20 be happy to get it off the books," he said. "They are, but to a certain=20 point."
 
Homes that have already been foreclosed on may be even = less=20 expensive than a short sale, Tyler said. But bank-owned properties also = might be=20 in worse shape, especially if the foreclosure home has been sitting = vacant for=20 some time, she added. It's important to consider the cost of necessary = repairs=20 before buying any distressed property.
 
3. Sales are 'as is'
 
In a short sale, it isn't = likely that=20 you will get allowances from the seller for repairs that are needed, as = you=20 might in a traditional sale, Jenson said. Do a home inspection and know = what=20 you're getting into, but remember that your bid is for the property "as = is."=20
 
"The seller will not give = you a credit=20 for repairs," he said. "The last thing they will do is make=20 repairs."
 
4. Have a back-up plan
 
Even if you decide to bid on a short-sale property, it = might be=20 best to keep looking anyway.
 
"There is no guarantee with short sales, and if the buyer = is smart=20 they will put an offer on a short sale they like and continue to look at = properties that interest them," Olsen said. It isn't uncommon for people = to find=20 a home they like better and kill the short-sale deal, Green said.
 
That said, when a offer is accepted and earnest money is = put down,=20 remember that you risk losing those funds if you decide to walk away and = buy=20 another home, he added. It may take months before the deal closes, even = after=20 the offer is accepted.
 
5. It's not only about price
 
"One thing to not lose sight of is you're buying a house = to live=20 in. Buy a house you like," Tyler said. She recommends that prospective = buyers=20 remain open to properties of all types -- short sales, bank owned and=20 traditional sales -- and compare prices and features.
 
A short sale is only a bargain if it's a home that you = truly want=20 to live in -- not something you're drawn to only because of its low = price tag.=20 3D"End
 
Amy Hoak is a MarketWatch reporter = based in=20 Chicago.
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