Can I Short Sale My Investment Property or Second Home

 Call Scott Gregory NOW at anytime at (850) 501-2574 / www.ScottGregoryHelps.com / http://www.greatpensacola.com/

Can I Short Sale My Investment Property or Second Home?

Many people do a short sale on their primary residence, but are banks doing short sales on second homes or investment property?
 
They are absolutely doing lots of short sales on investment properties and second homes today. It was much less common a few years ago, in the early days of short sale, but they do them all day long now. 
 
So the bank doesn't prefer it to be your primary home?

Not at all, because the way the bank looks at it, "a foreclosure, is a foreclosure, is a foreclosure, is a foreclosure." It's a vacant property that needs to be dealt with, so they finally made the paradigm shift to include second homes, and not only primary homes.
 
Now since this is your second home and not your primary home, do you need a hardship?

It still helps if you have a hardship of some sort. There are the rock-solid hardships such as: death, divorce, military relocation. Aside from that, it is completely a judgement call, but it never hurt if you have a solid hardship, yet it is not necessary in all cases.
 
Do your monthly expenses matter?

They do matter because if your showing excessive debt and excessive expenses over your income, that will certainly come into play and increase your chances that they will do a short sale for you. But, to be realistic, they will make exception even if the financial hardship isn't overwhelming.

What do I have to pay a Realtor to get a short sale done for me?

You actually don't pay anything because the bank covers the real estate fees and closing costs in the transaction. The bank will look at the seller's overall financial picture and they may ask for a contribution based upon your income and assets. Now, if they do ask you for a contribution, it is almost always reasonable. It is rarely more than a couple of mortgage payments, and it is a great solution to get rid of the problem of hundreds of thousands of dollars in debt. It just makes sense for a lot of people to do that.

Would there be any reason to deter someone from short selling their investment property?

No! There is no reason. If you have a problem of this nature, you need to get rid of it, and this is a solution that makes sense for a lot of people. If anyone has any questions, we are always here to help.

Call Scott Gregory of The Gregory Team (850) 501- 2574

 The Gregory Team

The Gregory Team is a “mega agent” team at Keller Williams Realty Gulf Coast (Keller Williams Realty Pensacola) that specializes in residential sales and investment properties, and has extensive experience in getting homes sold in a changing market (from regular sales to distressed sales). When you buy or sell with The Gregory Team, you get a full team at your service. They can help you buy or sell property anywhere in America. Local market areas include Pensacola, Navarre, Navarre Beach, Pensacola Beach, Gulf Breeze, Milton, Pace, Fort Walton Beach, Mary Esther, Perdido Key, Cantonment and Destin. Sellers, buyers and referrals are always welcome. Call us at 850-501-2574 or email to gregoryteampensacola@gmail.com.

Scott Gregory

Should I Rent Out My Short Sale?

 Call Scott Gregory NOW at anytime at (850) 501-2574 / www.ScottGregoryHelps.com / http://www.greatpensacola.com/

Should I rent my Home While Doing a Short Sale?

Is it always better to have someone living at the home?

You would think so. Common real estate advice says it's always better to have a house occupied. But through our experience of short sales here in the Pensacola area, we can tell you it is actually better for it to be vacant.

What are some of the problems you can have when renting out your property or former home?

There are a number of problems that come up when we are dealing with rental property while trying to do a short sale. The first issue is "pride of ownership." Since the tenant does not own the property, he does not have the same connection or care that the homeowner would. There's a saying in real estate that goes once you rent your home out that "you never get the same house back." Also, homes do not show as well with tenants in them, and for some reason, Realtors shy away from showing homes with tenants inside in Pensacola, because the common fear is that dealing with the tenants will be a problem. The last issue is, in most situations, why would the tenant help? All that happens at the end of the day is that he is going to have to move out and find a new home. You're better off not having tenants.

Can you collect rent when you have already stopped paying the mortgage?

If you are collecting rent when you have stopped paying your mortgage… IT'S MORTGAGE FRAUD ... plain and simple. Every loan has the language in it that if you are not paying the mortgage and are collecting rent, that you are committing mortgage fraud. And, yes, some would say, "but thousands of people are doing it." Well ... all of them as well are committing mortgage fraud, and that does not justify the action. It is not legal and not recommended.

But what about for the people that have lost so much money and just want to collect a little rent?

We can understand the frustration of being upside down on a house. But at the end of the day, it is still mortgage fraud. It is better to be legally safe and not do this.

What should people be doing as an alternative to all these ideas?

If you know you want your home sold, we don't want you investing big money to make changes, because at the end of the day the property is being sold "as-is." What you can and should do is just clean it up as best as you can and just help the real estate agent as much as you can to get your place sold. The important thing to do is to find an agent that is experienced in short sales with a good track record. Your home will be sold quicker if it is clean and accessible so this problem can be put behind you.

Call Scott Gregory of The Gregory Team (850) 501- 2574

 The Gregory Team

The Gregory Team is a “mega agent” team at Keller Williams Realty Gulf Coast (Keller Williams Realty Pensacola) that specializes in residential sales and investment properties, and has extensive experience in getting homes sold in a changing market (from regular sales to distressed sales). When you buy or sell with The Gregory Team, you get a full team at your service. They can help you buy or sell property anywhere in America. Local market areas include Pensacola, Navarre, Navarre Beach, Pensacola Beach, Gulf Breeze, Milton, Pace, Fort Walton Beach, Mary Esther, Perdido Key, Cantonment and Destin. Sellers, buyers and referrals are always welcome. Call us at 850-501-2574 or email to gregoryteampensacola@gmail.com.

Scott Gregory

New Guidelines Mean "The Years of The Short Sale" Will Continue

 Call Scott Gregory NOW at anytime at (850) 501-2574 / www.ScottGregoryHelps.com / http://www.greatpensacola.com/

The last two years have been proclaimed "the years of the short sale." And thanks to new guidelines aimed at making the process easier, 2013 should be another banner year for short sales.

Fox Business writer Justin McHood wrote Sept. 17 that Fannie Mae had completed 38,717 short sales in the first six months of 2012, and in 2011 it completed 70,025 total.

Notable short sale guidelines that begin on Nov. 1:
1. Through Fannie and Freddy if you are current on your mortgage though qualify for a hardship (death, divorce, etc.), you can go through the short sale process and sell your home.
2. As long as the homeowners make a financial contribution toward the closing on the lenders behalf they will not pursue deficiency action through the court systems.
3. If you are a military personal and you are being relocated, you automatically qualify and are not responsible for any financial contributions in deficiency.
4. In many situations, the seller will be able to receive up to $3000 for relocation.

Lenders are also under new guidelines:
1. Must respond in 30 days of the receipt of the short sale offer sheet.
2. Has to update the borrower weekly.
3. Finals decision must be made within 60 days of the offer being received.

Remember that these are just guidelines. Whoever is handling your short sale needs to have the experience and tenacity to get the process finished for you.

 The Gregory Team

The Gregory Team is a “mega agent” team at Keller Williams Realty Gulf Coast (Keller Williams Realty Pensacola) that specializes in residential sales and investment properties, and has extensive experience in getting homes sold in a changing market (from regular sales to distressed sales). When you buy or sell with The Gregory Team, you get a full team at your service. They can help you buy or sell property anywhere in America. Local market areas include Pensacola, Navarre, Navarre Beach, Pensacola Beach, Gulf Breeze, Milton, Pace, Fort Walton Beach, Mary Esther, Perdido Key, Cantonment and Destin. Sellers, buyers and referrals are always welcome. Call us at 850-501-2574!

Scott Gregory

 

Pensacola Short Sales- Short Sale Information You Should Know

 Call Scott Gregory NOW at anytime at (850) 501-2574 / www.ScottGregoryHelps.com / http://www.greatpensacola.com/

 Short Sale Information You Should Know... 

Scott Gregory and Jason Plescow from The Gregory Team

Does it matter how much I owe?

No it doesn't matter… in the old days of short sales they based decisions partly on the ratio of how much you owe on the loan. But today that doesn't matter anymore.

If that doesn't matter what does matter?

Fair market value is what the buyers are willing to pay in today's market. Its the real money and the real transactions that are going on in today's market.

How do they banks know what fair market value is?

The banks really don't have any idea what your home is worth… THAT IS THEIR DIRTY SECRET! The banks rely on Realtors, like myself, to set the price on property so that they know what buyers are willing to pay in todays market. Then, once an offer has come in, they will send out an appraiser or have a Realtor do a "broker price opinion."

What if there are no offers?

That means that your price is just too high. Sometimes the fair market value that was initially stated is just too high, and we suggest you lower the price in increments every couple of weeks or so. Buyers are watching prices on Realtor.com and other similar sites, and when it hits that right price point… they will go and take action on the property.

Should the sellers, regardless of fair market value, be sending offers into the bank?

No! It is real important to get as close to fair market value as possible because it increases the chances that it goes through. Back in the day, in the early days of short sales there was a theory of send anything to the bank and let them decide. Buyers just want the best deal regardless of whether is a regular sale, short sale, or foreclosure and they are willing to pay the fair market value.

 

Successful Gulf Breeze Short Sale with Bank of America

 Call Scott Gregory NOW at anytime at (850) 501-2574 / www.ScottGregoryHelps.com / http://www.greatpensacola.com/

Scott Gregory’s “The Gregory Team” at Keller Williams Realty Gulf Coast in Gulf Breeze, Florida, successfully closed a short sale on this property on Aug. 24, 2012.

The property had a single VA loan with Bank of America.

The property had been purchased in 2006 for $223,000, and the sellers had a balance of approximately $216,000 at the time of the short sale. The sellers were current on their loan payments at the time of the short sale, and had to sell the home because of a military job transfer.

The entire process from listing to closing took less than four months.

We listed the property for $139,800 on May 1, 2012. We received an offer for $134,800 on the property 30 days later. The process with the bank took two months. The buyers received a counter-offer of $139,800 and accepted it. The home was in excellent condition.

Bank of America paid the real-estate fee, State of Florida doc stamps on the deed, property taxes due to closing, title closing fee and title insurance, and a 3-percent concession to the buyer, who purchased the home with a VA loan.

The investor agreed to accept a net of $123,871.40 in the approval letter, which represented approximately 57 percent of the loan balance.

If you are facing foreclosure or want to sell a property that is worth less than you owe, call us now at 850-501-2574.                              

Successful Pensacola Short Sale with Wells Fargo

Call Scott Gregory NOW at anytime at (850) 501-2574 / www.ScottGregoryHelps.com / http://www.greatpensacola.com/

Scott Gregory’s “The Gregory Team” at Keller Williams Realty Gulf Coast in Pensacola, FL, successfully closed a short sale on this property on Aug. 22, 2012.

The property had a single FHA loan with Wells Fargo that was backed by the U.S. Department of Housing and Development.

The property had been purchased in 2002 for $70,000. The seller refinanced the property two years later and owed approximately $129,000 at the time of the short sale. The sellers had attempted to do loan modifications several times but ultimately decided that a short sale was the best option for them.

Wells Fargo did an appraisal prior to listing on March 21, 2012, and instructed us to set the price at $95,000. This proved to be way too high, as there was little buyer traffic through the home for quite some time and the home had aluminum wiring that needed to be corrected for safety and insurance purposes (cost of the fix runs about $4,000 to $8,000).

We finally convinced Wells Fargo to do another appraisal, and the price was reset at $70,000 on July 2. We reached contract on the property nine days later. After only 15 days, we received written approval of the Wells Fargo short sale.

“WOW! GREAT JOB! This is by far the fastest short sale that I've experienced!” the buyer’s agent wrote us after being notified of the approval.

The sellers also received $750 in relocation funds and a full waiver of deficiency for the balance of the loan.

The home sold for $65,800, with the seller’s lender paying the real-estate fee, property taxes due to closing, title closing fee and title insurance, and State of Florida doc stamps on the deed. The investor accepted a net of $58,896.40 in the approval letter, which represented approximately 46 percent of the loan balance.

If you are facing foreclosure or want to sell a property that is worth less than you owe, call us now at 850-501-2574.

Short Sales Are Booming in Pensacola

Call Scott Gregory NOW at anytime at (850) 501-2574 / www.ScottGregoryHelps.com / http://www.greatpensacola.com/

There has been a "dramatic shift" in the housing market, according to an article in USA Today dated August 30, 2012.

Mortgage companies are not leaping to foreclosure nearly as quickly anymore, because they have realized that they get more money back from short sales, the report said.

While foreclosures used to dominate many markets, 65 percent of distressed properties sold today are short sales, while only 35 percent are foreclosures.

“Banks have become much more supportive of short sales,” Kathleen Howley states in the article.

“That’s better for the lenders, who have smaller losses on a short sale, and it’s going to be better for homeowners, who won’t have as much psychological distress as a foreclosure.”

Distressed homes represent one third of  transactions in today's market, according to the report.

Simply put, a short sale is a real estate transaction where the homeowner owes the lender more than what their property is worth, and is a way to get it sold. In a short sale, the lender must approve and accept less than what they are owed as full payoff. The bank also often pays most or all of the closing costs for the seller.

Are you facing a financial hardship that you know will decrease your income?

Are you getting behind on your mortgage and you're not sure if you can catch up?

Or do you just need to sell quickly but your home is worth less now than when you bought it?

If you are facing any of the situations above, and you think a short sale might be your best option, then read on. I can help you at no cost to you! I can help you if you have property for a short sale in Pensacola, Navarre, Gulf Breeze, Milton, Pace, Mary Esther, Fort Walton Beach, Pensacola Beach, Navarre Beach, Cantonment or Destin.

 If you're still not sure and just want more info, then scroll to the bottom of this page and request a free copy of our article "The 9 Alternatives When Facing Foreclosure"

Did you know that nearly 90 percent of the homeowners nationwide who try to "short sale" their home will end up losing their home to foreclosure due to an uneducated or lazy agent? CALL US NOW!
 

Call Scott Gregory of The Gregory Team (850) 501- 2574

 The Gregory Team

The Gregory Team is a “mega agent” team at Keller Williams Realty Gulf Coast (Keller Williams Realty Pensacola) that specializes in residential sales and investment properties, and has extensive experience in getting homes sold in a changing market (from regular sales to distressed sales). When you buy or sell with The Gregory Team, you get a full team at your service. They can help you buy or sell property anywhere in America. Local market areas include Pensacola, Navarre, Navarre Beach, Pensacola Beach, Gulf Breeze, Milton, Pace, Fort Walton Beach, Mary Esther, Perdido Key, Cantonment and Destin. Sellers, buyers and referrals are always welcome. Call us at 850-501-2574 or email to gregoryteampensacola@gmail.com.

Scott Gregory