October 22, 2010 at 10:36 AM · Posted under Glenn Hanon
Short Sales are becoming a common term in the American Lexicon these days. A short sale is when a bank agrees to a reduced amount originally owed to prevent a foreclosure action; which in many cases would net the bank less money in the long run. Real Estate practitioners, buyers and sellers are sometimes left scratching their heads as to why a good offer, in these difficult market times, is rejected by the lender which will most likely be sold for less than the short sale price. Once a home is foreclosed on, the banks are responsible for winterizing the home, keeping up with maintenance items, keeping HOA fees current and paying real estate taxes. These costs can be substantial given that it sometimes takes banks months to get the home back on the market and then even more months looking for a new buyer. So why do banks do this? If you follow the money you will find the answer. Since many of the mortgages were packaged as CDO’s (Collateralized Debt Obligations) and sold as investments on Wall Street, the real owner of the mortgages are not the banks but the investors. The banks are concerned about investor actions against the banks for selling a home short. The plot thickens. Many of the investors have insurance on the investments they made to protect them from a loss. The insurance cannot be collected in a short sale agreement, but it can be collected in a foreclosure action. Some banks are trying to shift the risk to the investor, who in turn shifts the risk to the insurance company. But in the end the economy suffers the brunt of this “shifting” because a foreclosed sale is generally for much less than a short sale. As a homeowner we don’t want any short sale comparables in our neighborhood since they reduce the overall market value of our homes. But we certainly don’t like the foreclosed stats since they are so much worse. A rejection of a short sale doesn’t make sense to us, but it makes cents to banks and investors.
February 01, 2010 at 04:46 PM · Posted under Glenn Hanon
This quick video gives some reasons why walking away from your home may not be a good idea. The financial impact of a foreclosure decision can negatively impact your credit for the next 5-7 years. Short sales are longer and can be more difficult routes, however the negative impact can be as little as 2 years on your credit. Take a look at the video and decide for yourself. If you find yourself in this situation feel free to call me and we can discuss your options.
January 20, 2010 at 08:42 PM · Posted under Glenn Hanon
The Real Estate market is changing fast. Recently the NAR (National Association of Realtors) developed a program that educates agents to become advocates for sellers who find themselves in very difficult waters with their current mortgage, i.e. short sales and foreclosures. A short sale is when a homeowner sells their property for less than the current mortgage balance. The “shortage” is often but not always absorbed by the bank. Because of the growing problem with foreclosures, this option is providing a way out for distressed homeowners and banks who find themselves with a growing inventory of bad mortgages.
The NAR developed the “Short Sales and Foreclosure Resource Certification” (SFR), which I was happy to learn more about. Recently I passed the exam and received the SFR certification. I also completed the REO Trans Network training and exams and am now certified to assist with REO inventory (Real Estate Owned) that the banks have assumed. As a leader at Shorewest I believe that continuing education is paramount in addition to assisting clients in this very difficult economy.
If you have further questions about the market give me a call at the office, toll free 1-888-HEY GLEN
The holiday season may be over, but in real estate, we are focused more than ever on the remaining “shopping days” of the “retail home hunting season!” What I mean by that is, the number of days that are left before the various incentives to assist buyers and sellers expire.This chart outlines the terms of the credits, and if ever there was a slight, and I mean slight, window of opportunity for a seller’s market, it will be between January and April of this year. April is the deadline for offers to be accepted, in order to receive the tax credits.
Sellers who price their homes aggressively and utilize the various tools that Shorewest has to offer, can propel their sale to the closing table. Shadow foreclosure inventory is expected to increase throughout the year, as are mortgage interest rates. The effect of these issues will be increased depreciation in home values, as well as a softening of buying power. If mortgage rates increase by one percent, a corresponding price reduction of 10% must occur, in order to maintain the same monthly payment in principal and interest on a new home.
This is not all doom and gloom, however. Education is the key. As a Certified Relocation Specialist, and Certified Short Sale and Foreclosure Specialist, it is my duty to educate my buyers and sellers on how to maneuver through these critical months, in order to maximize their buying and selling power.
To find out more about these tax credits and where your goals fit into this ever changing real estate market, consult your tax advisor and give me a call.
This is a great place to learn and share with others. If ever you were to have any questions with regards to Short Sales or Foreclosure, feel free to contact us and we’ll try to help. Please take a look at our blogs, website, email or just call us to get valuable information and the best part - your questions are answered for FREE!!
The Kuchta’s - Kelly and Colleen are the ones to call for those difficult questions. Website: goshorewest.com Cell: 414-651-1613. We hope you have a great day!
Glenn Hanon
I was happy to learn more about. Recently I passed the exam and received the SFR certification. I also completed the REO Trans Network training and exams and am now certified to assist with REO inventory (Real Estate Owned) that the banks have assumed. As a leader at Shorewest I believe that continuing education is paramount in addition to assisting clients in this very difficult economy. 
Karen Trepton
This is a great place to learn and share with others. If ever you were to have any questions with regards to Short Sales or Foreclosure, feel free to contact us and we’ll try to help. Please take a look at our blogs, website, email or just call us to get valuable information and the best part - your questions are answered for FREE!!
The Kuchta’s - Kelly and Colleen are the ones to call for those difficult questions. Website: 
Kelly Kuchta
