A good graph, which we call a snapshot, of the December market. 

We're seeing an uptick early in January, but those stats are still being gauged.  Based on many important indicators, this is an excellent time to consider buying, and an excellent time to sell.  

   I would like to add a little something to what Mike was talking about in his blog posts last week.  YES!    Homebuyer Confidence is UP. I work primarily with buyers and I have seen a major shift in the type of phone calls that we get on our listings. When I first started in the business, we mostly got phone calls from people locally and that has now changed to people from all over the country.

 Mainly, people call from parts of the country that have been hit hardest by the economic change, places like: Wisconsin, Florida, California, Michigan…etc all saying that they need to restart their lives and are ready for a change. Now, I will say that my team's presence on the internet has played a big part in the phone calls, but our internet presence doesn’t make them go ahead and move here! 

  After speaking with the many families that I have worked with in the past year, it has become apparent that the lure of Middle Tennessee is that we have everything that a larger city could offer like: professional sports (we have football and hockey teams), MUSIC(and not just country!), soon to have an unbelievable new amusement park, great hotels and restaurants,    don't miss part 2 tomorrow

We, and others, believe people have begun to think the worst of our financial and economic woes have passed and there is good reason to have a degree of confidence about our foreseeable future (although we ALL now keep our eyes wide open and will NEVER AGAIN be blindsided and we will PREPARE ourselves just in case,  righ

You have say yes here, in fact we need a "you BET!, YES!") and that means dusting off your old pre-2008 goal book and reacquaint yourselves with them.  You may have had a goal like, “this house is too small and our family is growing, lets invest (yes, I did say invest and when you buy at the bottom there’s only one way for an investment to go) in a new family home”.

http://www.mikeanddarlene.com/video/Occupy-Movement-Occupies-a-Foreclosure-Auction-with-Anti-Foreclosure-Team

"Making that first call to you guys is the hardest part"

We hear often from people that picking up the phone to call us the first time is the hardest part of the whole process.  Of course! most of us have some resistance to the unknown, and starting down the road to a short sale is certainly tricky, unknown territory for most people.

Sooo, what exactly happens when you call us?

First, look at the whole process like a puzzle.... and we're all going to work together to bring all of the pieces of the puzzle together.

You are putting together a team to work for you.  Select the most qualified, dedicated, competent, professional, and trustworthy team available.  It would take an encyclopedia to list all the reasons you want to be sure you hire a CDPE.... Certified Distressed Property Expert, to work for you.  In a nutshell, it doesn't cost you a dime more to use the best in the business, and the difference in the capability and level of service may make the difference in the successful outcome for you.

First, we'll go through a short checklist together on the phone with you.  Based on that call we'll set a time to meet in person, either in the office to introduce you to the entire short sale process, or at the property.  

Step two, we'll evaluate the property and determine the actual fair market value in today's market.  This involves seeing the property in person, then gathering the support data to support the price.

Continued all week......    Feel free to be send your questions to us here, on Facebook, or at Twitter 

The first step to a short sale is to hire a qualified real estate professional who specialize in short sales.

Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who hold a designation, such as the CDPE designation, which proves they have the advance training for short sale management.

Some of the important things your agent will need to be qualified to do for you, and for your bank or mortgage lender:

• Provide you with a comparative market analysis (CMA) or broker price opinion (BPO); and provide same for the lender;
• Be familiar with, and know how to properly complete paperwork required by the lender;
• Help you set an appropriate listing price for your home, market the home, and get it sold.
• Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
• Make contact with your lien holders, and open a line of communication for the transaction.
• Begin gathering documentation before any offers come in.
• Put special language in the sales contract that indicates your home is a short sale and that lender approval is needed. 
• Negotiate the contract with the buyers.
• Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

We'll continue our what the devil is a Short Sale series all week.  Join in on Facebook, Twitter, or right here!

There is a significant change that can best be described as an ongoing hardship.

To go the distance on a short sale, you must document you have a hardship case.

THE PROPERTY IS CLASSIFIED a PRE-Foreclosure, or Foreclosure Risk.

Most lenders begin to consider the short sale route when a mortgage is two, or more, payments behind. 

 At first glance it may appear easier and quicker to just walk away from the property & letting it go to foreclosure.  For many, selling a property as a short sale could be a better deal than walking away.  Although a short sale will likely have some impact on one's credit score, it's typically NOT nearly as severe as that of a foreclosure, and usually doesn't follow them for the ten plus years that is typical of a foreclosure.   

We've been told by lenders that a short sale knocks approximately 80 points off the pre-short-sale credit score; others have told us it's closer to 50 points. On the other hand, an attorney friend claims that foreclosure SEVERELY DAMAGES ONES CREDIT FOR AT LEAST 10 YEARS!   Wooouch! 

A Short Sale can be a win-win scenario -- the bank reduces a portion of "bad debt," avoids foreclosure costs, and keeps the home occupied, while you shed a housing payment you can't afford.

We'll continue this series next week as we start to look at the good, the bad, & the ugly of buying a short sale.

 DON'T be naive when you start down the road of buying or selling a property through SHORT SALE.   A short sale takes TIME & PATIENCE.  TIME & PATIENCE.   Did we say?....TIME & PATIENCE

The purchase process can easily take 4, 5, 6 months, or longer, and you, the buyer, have no guarantee you will ultimatly close on the property even after your offer is submitted to the bank.  Banks process an offer through numerous departments, and often come back with an e-mailed, or verbal "acceptance" from one department, only to come back  later with a counter offer from another department.  

Buyer protection contingencies are limited.  For example, a bank won't accept a sale of home contingency contract on a short sale.  Contingencies to protect a buyer regarding repairs are usually removed, or severly limited, and a buyer must provide their loan approval letter either with their offer, or within a few business days of submitting the offer.  

We tell buyers to be prepared to pay for any repairs required to secure the mortgage.   YEP....you put money into a home you don't yet own in order to obtain the mortgage approval to purchase said home.  It can be scary, and certainly not easy for the faint of heart. 

 I lost my job

We are getting a divorce and paying the mortgage isn't doable on one income.

Because of health reasons I have been out of work for months, and my mortgage is falling behind.

I've moved out of state & can't keep my mortgage current.

"SHORT SALE" is industry jargon that means the lender is accepting less than the total amount due on the mortgage.

Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers, nor all properties qualify for a short sale.

Before we even begin this dialogue, there are two important points to make . . . .

1.  A short sale in real estate is not a quick, easy, or typically a pleasant transaction.

2.  We suggest that all  borrowers obtain legal advice from a competent real estate lawyer regarding their specific situation.

Put on your seatbelt, and join in and we'll make this as painless, as possible.

I’m often asked if this is a good time to buy a home.  Some clients are concerned that home prices may fall further than they have already.  They are assuming that the best course of action is to wait for the bottom in the market and then buy.  The problem with this approach is that you don’t know where the bottom is until you see it in the rear view mirror, meaning until you’ve missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability.  Even though interest rates have gone up in the last six months, they are still near historic lows.  Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life.  It’s important to live in a home that reflects your taste and values, yet is within your financial “comfort zone.”  To that end, it may be more important to lock in today’s relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today’s market.