Short Sale Prior Lake Minnesota
Short Sale of 19847 Cedar Ln, Prior Lake, MN
19847 Cedar Ln
Short Sale of 19847 Cedar Ln, Prior Lake, MN 55337. This is a stunning former Parade of Homes model on a perfect 2.8 Acres of privacy. Every attention to detail exists and this home is sure to impress. The kitchen is a culinary delight with high end stainless steel appliances and granite galore. The upper level boasts an eloquent master suite and also a 900 square foot bonus room. The deck and patio off the rear of the home are about as relaxing and tranquil as you can imagine. Contact the Twin Cities Short Sale Realtor today for a showing.
Short Sale Inver Grove Heights Minnesota
Short Sale of 9190 Tyne Ln, Inver Grove Heights, MN
9190 Tyne Ln
9190 Tyne Ln, Inver Grove Heights, MN 55077. This 4 level home is sure to impress. It is very clean, bright and open, and in a great location. Don't let the square footage fool you. The lower two levels have the walls, electrical and duct work completed. Once the ceiling and flooring is in, the total square footage would be around 2700 FSF. All bedrooms are currently on the upper level with the master suite boasting it's own luxury bath with separate tub and shower.
Please contact the Twin Cities Short Sale Realtor regarding this home or if you'd like to sell your home via a short sale.
Foreclosure Sales Account for 31% of Real Estate Sales
Foreclosure Sales Skyrocket:
RealtyTrac, the leading online for foreclosure (REO) properties announced that during the first quarter of 2010, 31% of ALL HOME SALES were either foreclosure (including short sale) or REO (bank owned) homes.
The report continues to say that REO sales were discounted 34% from standard sales. Short Sale and Foreclosure (non-REO) properties were discounted 15% from standard sales. This is what is driving our market down and this will continue to drive our market down until the foreclosure mess has been fixed.
The media has started to turn also. After the first quarter, we saw housing reports that the recovery is coming. Those same media outlets are now saying housing is doomed and gloomy. As we've said all along at the Twin Cities Short Sale Realtor, until the foreclosure mess is fixed and demand is equal, or begins to increase above supply, housing prices will continue to slump.
Contact Us at the Twin Cities Short Sale Realtor to discuss your personal situation.
Fannie Mae Announces KnowYourOptions.com
Fannie Mae's new website: KnowYourOptions.com
Fannie Mae has recently rolled out a new website (www.KnowYourOptions.com) geared towards struggling homeowners and the options available. The website is structured with two major points, the first being ways to stay in your home, the second with options to leave your home.
To stay in your home, options include refinancing your current mortgage, a repayment plan to catch up on late payments, a forbearance or modification of your mortgage, or a deed-for-lease program. All have their pluses and minuses and all will need to be worked on with your lender.
Options to leave your home of course include a short sale, or a Deed-In-Lieu of Foreclosure. The path taken most often is the short sale, which we are experts at.
Please contact us at the Twin Cities Short Sale Realtor to discuss your personal situation.
Will I Get A Deficiency Judgment?
Minnesota / Twin Cities Deficiency Judgment:
NOTE: PLEASE OBTAIN YOUR OWN INDEPENDENT ADVISE FROM EITHER YOUR ATTORNEY OR OUR ACCOUNTANT.
A deficiency judgment is a judgment lien against a debtor, defendant or borrower whose foreclosure sale did not produce sufficient funds to pay the mortgage in full. This option may or may not be available to the lender, depending on whether they have made a recourse or non-recourse loan. Most residential loans in the state of Minnesota are recourse loans.
No deficiency judgment can be obtained against a mortgagor in Minnesota if the redemption period is six months (which it almost always is), and foreclosure was by advertisement (which it also almost always is). If the redemption period is something other than six months, a deficiency judgment could be sought after the debtor, but it is limited to fair market value which must be determined through a Jury Trial.
What does this mean? It means to pursue a short sale if at all possible. You will avoid a foreclosure and most likely avoid a deficiency judgment.
Contact the Twin Cities Short Sale Realtor to discuss your personal situation.
What’s The Fifth Step To A Short Sale?
Short Sale Process Step 5:
I've written previous blogs regarding the short sale process and when you're to this point, the sale of your home is getting closer. The bank has already done their BPO, or broker's price opinion and they are ready to start negotiations.
Keep in mind that the lender has thousands of short sale files on each negotiators desk and there really isn't too much thought put into the offer we have at hand. Up until this point, they've verified that you cannot afford the home, or you have a hardship that is going to require you leave the home. They've also verified that the offer that is on the home is reasonable for the market value. All information is filled into their mathematical formula that determines if this is a good deal for them. The lender is only willing to work with you if they think they are the ones that are getting the deal. IE: If they think the they're going to lose more money but not doing the short sale, they will most likely work with you now, as opposed to other remedies that are available to them.
What's next? Trying to figure out if you are going to be required to submit any money in the form of cash or in the form of a note due and payable to the lender over time after the home closes. Should the lender present you with any of these options and you comply, a final submission to the underlying investor takes place and a hopeful approval comes. Should the lender present you with these options and they are not acceptable, or you cannot afford to comply, we need to negotiate these points. As I've always said, these are negotiable points and the goal is to get to the closing table with exactly $0 out of pocket.
Contact Us at the Twin Cities Short Sale Realtor and we can discuss your personal situation and if a short sale is right for you.
Housing Double Dip Is Coming
Twin Cities Housing Is Hurting:
Meredith Whitney, CEO of Meredith Whitney Advisory Group, LLC recently summarized the housing market to CNN as a mess, with lower prices on the way shortly.
I've consistently said that housing in the Twin Cities of Minneapolis/St. Paul and surrounding areas will decline 10-15% over the next 1 to 2 years. Ms. Whitney said housing will dip another 10% over the next 6 months. I believe this to be a comment regarding the national average. The Twin Cities of Minneapolis/St. Paul are typically above the national average when it comes to housing. Here are the reasons behind her comments:
1.) Banks have started releasing their inventory. This is the first time this has happened in the past year. More inventory comes back to the supply vs. demand simple economic outlook. More supply, less demand, lower price points.
2.) When it was reported that housing prices were up for the first half of 2010, it was not reported that 45% of the market was first time home buyers cashing in on the government first time home buyer tax credit. Those buyers are now gone.
3.) The mortgage market has had it's 9th consecutive month of shrinking volume. This statistic alone shows that not as many buyers are buying.
4.) Consumer credit is getting tighter. If buyers cannot be financed for a new home loan, they cannot buy.
5.) Unemployment is now the leading cause of mortgage defaults. In recent years, it was bad loans that restructured themselves that hurt homeowners. Now it is the unemployment that is causing homeowners not to be able to afford their homes.
6.) State and Local Government are actually cutting jobs. In years past, it was the State and Local Governments that would be hiring when the recession is close to an end. Since they are cutting, we can assume that they are not as optimistic as the current administration contends.
All said, there are many negative signs in our economy that are hurting the housing market. Until unemployment is solved, until the majority of the REO/Foreclosure homes are sold, and until there are some more lenient lending guidelines, the housing market it in for a plunge.
New Mortgage After a Short Sale or Foreclosure
Waiting Period For A New Mortgage After Short Sale/Foreclosure Changes:
Fannie Mae announced changes to the policies regarding the amount of time that must elapse after a borrower experiences a preforeclosure event (preforeclosure sale, short sale, and deed-in-lieu of foreclosure). The changes highlighted the importance of borrowers working with their servicers to avoid foreclosure.
Currently, the waiting period that must elapse after a borrower experiences a foreclosure is seven years. However, Fannie Mae allows a shorter time period – five years – if certain additional requirements are met (e.g., minimum down payment and credit score, and occupancy requirements). These requirements are being modified to remove the five year option. Unless the foreclosure was the result of documented extenuating circumstances, which only requires a three-year waiting period (with additional requirements), all borrowers will now be required to meet a seven-year waiting period after a prior foreclosure to be eligible for a new mortgage loan eligible for sale to Fannie Mae.
The following table describes the waiting period policy changes for foreclosures:
The following table summarizes the waiting period requirements for all significant derogatory credit events.
Continued...
Please contact us at the Twin Cities Short Sale Realtor if you have any questions.
Twin Cities First Half Sales & Median Price Index
2010 First Half Sales Reported for the Twin Cities
The St. Paul Association of Realtors recently published the home sales data for the Twin Cities of Minneapolis and St. Paul. The following county home sale numbers and median home values can be found for the first half of 2010.
Dakota - Scott - Goodhue Counties
The most interesting fact when taking into account the numbers published in these reports is almost all areas saw an increase in the median home sales price (equal numbers of homes sold above and below the median price). I am a firm believer that these numbers are skewed because of the first time home buyer tax credits that have come to an end (The Military Tax Credit is still good). Recently published housing reports by MSNBC showed a huge dip in home sales starting in May, a month after the tax credit ended. These low home sales numbers most likely would not have closed by the dates the reports published by SPAAR above came out.
It will be interesting to see in mid January the final numbers for 2010. I would say that housing numbers will be lower than 2009, an indication that the Twin Cities Housing Market is still in a decline.
What’s The Fourth Step Of A Short Sale?
Short Sale Process Step 4:
Previous to this step, I've written about Short Sale Step 3, gathering all the documentation to submit to the lender. Although this Step 4 involves the negotiations with the lender for your short sale request, this step involves the most important aspects as far as the lender is concerned - the BPO, or broker's price opinion.
Because the lender will base all of their negotiations on the value of the home, it is important to make sure the agent or appraiser that is performing the BPO does not over value the home. The Twin Cities Short Sale Realtor will either conference with the agent or meet the agent at the property with good comparables in hand to show that the offer we have received on the home is fair for the condition, style and location.
Once the BPO has been completed and submitted back to the lender, we begin the negotiation process so your lender is satisfied that the offer submitted for short sale meets the minimum requirements for the underlying investor. Once we have worked with your lender to ensure the minimum requirements are met, your offer is awaiting approval on any final negotiations before being submitted to the underlying investor.