When Do Showings, Contracts and Closings Spike Each Year?

Short Sale application process is very similar to the loan origination process when you received your loan from a bank. This package must be prepared for a bank to consider approving your request to sell your home short.

• Financial Information:
• Tax information --two most recent 1040's and 2 most recent W2's
• 60 days of current bank statements-(this is ongoing until the approval)
• 30 days of current pay stubs or commission check stubs.
• If self employed- pay stubs or YTD profit and loss statements
• Monthly budget/financial statement signed and dated

Hardship Information

• Hardship letter dated and signed same day as purchase contract
• Any documention supporting the actual hardship
• Medical Bills
• Child support or alimony payment information and divorce decree or child support order.

Mortgage & Other Relevant Property Information

• First Mortgage Statement
• 2nd mortgage statement if required (home equity loans?)
• Recent Real Estate Tax bills
• Recent condo association bills if applicable
• Any recent water, sewer bills, electricity, gas bills.

Other Documention

• Authorization form for lawyer and Realtor
• Short sale disclosure
• Waiver of conflict if representing the buyer
• 3 recent comps
• Listing agreement
• Offer to purchase agreeement
• Listing history
• Buyer proof of funds letter or Pre approval letter. 

It is important to understand that the above documents are required for almost every short selling bank. There are also bank specific forms that, in most cases, must accompany the above.

The end result if packaged correctly will be a happy buyer, seller and bank negotiator. By preparing yourself for the financial details you will make this horrendous task an easier one.

Knowing the right information and putting everything in perspective:

1. Zillow reported that 47% of all buyers think that the average appreciation in real estate is 7% a year.....

      j-whoa there! Real estate appreciation in normal times was 3-5% in the   Chicagoland area.

2. Zillow reported a misconception about mortgage insurance.

       j-Mortgage insurance is paid by a buyer who has less than 20% down to protect the Bank. There is no value to the buyer at all ==> it's a risk to the Bank to protect their portion of their money.

3. Zillow reported that 56% thought appraisers for the Bank acted as a HOME INSPECTOR.

        j- An appraiser is there to justify the price paid in the market for a house. The Bank is protecting their interest in your choice of housing.

         A Home inspector is there to tell you the up and down side of used housing. Every home has a problem, and it behooves the buyer to have a crystal clear view of potential problems with any home.

4. 37% of all buyers thought that Homeowner's Insurance was an optional insurance.

         J-All Banks require Homeowner's Insurance, and if you fail to pay your premium, the note allows the Bank to charge you for the insurance they pick.

5. Zillow reported that many people believed the signed offer to purchase means they own the home.

          J-Not until the Bank has commited the funds, the deed has been transferred in your name, does a buyer own the home.

Let me clear up your questions on Home Purchases! Call me anytime.

The reason for the shift to rentals, according to the Morgan Stanley's report:

• Home price declines: not only are millions of homes available to investors at deeply discounted pricing but the low prices are changing consumer attitudes on housing as an investment
• Hurdles to buying: down payment requirements, higher FICO score thresholds, and income verification are making it harder for households to even consider buying
• Costs of ownership: without home price inflation, costs like property taxes, home owner association dues, maintenance and repair make ownership less attractive
• Demographic effects: Gen Y growth is heading up while baby boomer households are downsizing
• Unemployment, labor insecurity and mobility: long unemployment durations make labor mobility (and thus renting) more important

Morgan Stanley says the U.S. home ownership rate, which has fallen to about 64 percent from close to 68 percent at its peak, is really closer to 60 percent when you factor in home owners who’ve stopped paying on their mortgage and only remain in their house because the bank hasn’t finished processing their foreclosure yet. Once these cases make it through the system, they’ll move to the renter side of the equation.

So how I see it is if you can get a mortgage, or you have savings, some of the distressed properties are such a bargain, (of course, you'll do some rehab), your return on an investment is increasing. It was interesting to me that 4 out of 10 people prefer to rent rather than purchase at this time.

j

The reason for the shift to rentals, according to the Morgan Stanley's report:

• Home price declines: not only are millions of homes available to investors at deeply discounted pricing but the low prices are changing consumer attitudes on housing as an investment
• Hurdles to buying: down payment requirements, higher FICO score thresholds, and income verification are making it harder for households to even consider buying
• Costs of ownership: without home price inflation, costs like property taxes, home owner association dues, maintenance and repair make ownership less attractive
• Demographic effects: Gen Y growth is heading up while baby boomer households are downsizing
• Unemployment, labor insecurity and mobility: long unemployment durations make labor mobility (and thus renting) more important

Morgan Stanley says the U.S. home ownership rate, which has fallen to about 64 percent from close to 68 percent at its peak, is really closer to 60 percent when you factor in home owners who’ve stopped paying on their mortgage and only remain in their house because the bank hasn’t finished processing their foreclosure yet. Once these cases make it through the system, they’ll move to the renter side of the equation.

So how I see it is if you can get a mortgage, or you have savings, some of the distressed properties are such a bargain, (of course, you'll do some rehab), your return on an investment is increasing. It was interesting to me that 4 out of 10 people prefer to rent rather than purchase at this time.

j

Recently read this article and I am not surprised!

Mortgage Bottlenecks Hold up Closings

Written by: editor Mon, October 24, 2011

Beyond Today's News, Crisis Watch, Housing Crisis

Print

Giant Sand Sculptures are back again!

Radon- A Health and Safety Issue for your Family

Radon gas can be a worry for homeowners. This naturally occurring substance has been found in homes throughout the Illinois and the country. 47% of the entire state of Illinois has this problem, and interesting enough the house next door may be under the 4.0 psi measure and you maybe way above.

It is odorless, colorless and undetectable without sophisticated testing. Radon is a health and safety issue in home inspections, and  has been linked to many diseases, and environmental experts caution that it should be tested. Remember that if radon gas is detected, it can usually be removed at a relatively low cost with simple ventilation systems.

Concerned about radon in your home? You can have it tested. You can contact your the Environmental Protection Agency for information about how to find a reputable company qualified to perform the tests or you can call me, since I have had to do the research for some of my sales and listings. If you are buying a new home, you might consider including a radon test as part of the inspection contingency clause. And if you are planning to sell your home, you can test it for radon before placing it on the market. If there is no problem, your fears will be put to rest, and even if radon is detected, it is neither difficult nor costly to correct.

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