Metro Detroit Short Sale Help Team

Our goal is to help those home owners that are facing a foreclosure situation and/or upside down on their mortgage. We will meet with you to review your financial situation and gain an understanding of why you need to sell your home. We will negotiate with the bank, skillfully explain your situation, and find a beneficial solution regarding the sale of your home. Based on our review with you the homeowner, we will develop a tailored marketing strategy which will result in a quick sale of your home at the best possible price.

Homebuyer Tax Credit – Great News!

Nov 6

Posted by msecord in First Time Home Buyer Tax Credit | 3 Comments

The much-anticipated extension to the home buyer tax credit has finally been approved.  The Senate’s vote yesterday resulted in a 98-0 win and today it was passed in the house.  The bill now moves to the President’s desk for a final signature.

First-time home buyers have been eligible for tax credits of up to $8,000 since last January as part of this year’s economic stimulus package.  The newly backed program will expand the credit to include existing homeowners.

Under the revised program, those who have owned a home for at least five years will be able to apply for tax credits of up to $6,500 when they purchase their next home.  To qualify, buyers will have to sign a purchase agreement by April 30, 2010 and close by June 30.

The maximum purchase price on a home will be $800,000 with vacation homes not eligible. Income limitations are $125,000 for single tax payers and $225,000 for joint filers.

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Federal Incentives Coming for Short Sales

Sep 10

Posted by msecord in Buying Short Sales in Metro Detroit, Facing Foreclosure, Short Sale | 3 Comments

I recently read this article on the web written by DIANA GOLOBAY and found it very good and also very exciting for our market place.

By DIANA GOLOBAY 
September 10, 2009 8:09 AM CST

“The mortgage servicing industry in coming weeks will see details of an incentive program aimed to prevent foreclosures by encouraging servicers to pursue short sales and deeds-in-lieu of foreclosure.

US Treasury Department sources confirmed to HousingWire the Treasury expects to issue details on the short sale and deed-in-lieu program later this month.

The program is being finalized and will be announced as soon as possible, according to testimony Wednesday by Federal Housing Administration (FHA) commissioner David Stevens.

He said at a House Financial Services subcommittee hearing that the Making Home Affordable (MHA) Program is on track to provide modifications and refinancings to millions of homeowners, but noted other foreclosure alternatives exist.

“Because we know that the MHA program will not reach every at-risk homeowner or prevent all foreclosures, on May 14th the Administration announced the Foreclosure Alternatives program that will provide incentives for, and encourage, servicers and borrowers to pursue short sales and deeds-in-lieu (DIL) of foreclosure in cases where the borrower is generally eligible for a MHA modification but does not qualify or is unable to complete the process,” he said, according to prepared remarks.

He said the program will simplify the process of pursuing short sales and deeds-in-lieu, which will encourage more servicers and borrowers to participate in the program. The program will standardize the process, documentation and short performance timeframes.

“These options eliminate the need for potentially lengthy and expensive foreclosure proceedings, preserve the physical condition and value of the property by reducing the time a property is vacant, and allows the homeowners to transition with dignity to more affordable housing,” Stevens added.

Distressed sales — including short sales and foreclosures — accounted for nearly one-third of all house re-sales in recent months, leading to the National Association of Realtors to offer a short sales and foreclosure certification program to realtors.

At the same time, tech vendors and mortgage service providers are looking to fill the demand for short sale-related products and services. Equi-Trax Asset Solutions recently launched a new current listing search offering that searches a servicer’s portfolio to determine short sale and modification opportunities.”

Write to Diana Golobay.

Given our overall economic condition that we find ourselves in here in Metro Detroit and given the fact that our property values have dropped so much over the past few years this is something that is desperately needed.

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Short Sale Myths

Aug 19

Posted by msecord in Buying Short Sales in Metro Detroit, Short Sale | No Comments

Myth #1 – The Bank Would Rather Foreclose than Bother with a Short Sale

This is one of the most common misconceptions. The reality is that banks do not want to foreclose on your property because the foreclosure process is incredibly costly. Banks receive more on their investment through a short sale than a foreclosure.

The qualifications for a short sale include:

  • Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
  • Monthly Income Shortfall – “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
  • Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

Myth #2 – You Must Be Behind on Your Mortgage to Negotiate a Short Sale

While this may have previously been the case, today lenders are looking for verifiable hardship, monthly cash flow shortfall, or pending shortfall and insolvency.

If you meet these three requirements and believe that you soon may be unable to afford your mortgage, act immediately.  Do not wait until the foreclosure has started and you have even less time left.

Myth #3 – There is Not Enough Time to Negotiate a Short Sale Before My Foreclosure

This is a myth that probably hurts homeowners the most. Many do not realize that foreclosure is a process, and that there is time to make decisions that may result in better outcomes.

The foreclosing party—in most cases a lender—can stall a foreclosure up to the final day of the process. Today, many lenders will stall a foreclosure with as little as a phone call from you explaining that you are trying to sell, and almost all lenders will stall a foreclosure with a legitimate contract. For real estate professionals who understand foreclosures and short sales, there is time available until the foreclosure process is complete.

Myth #4 – Short Sales are Impossible and Never Get Approved

This is a complete falsehood. Are short sales more difficult to execute? Yes. Do you, as a homeowner, need to learn about a new process? Yes. Are they impossible? Absolutely not.

Myth #5 – Banks are Waiting on a Bailout and Not Accepting Short Sales

You may have heard this, but the reality is that banks (and the U.S. government) are trying to do anything they can, within reason, to avoid foreclosing on properties.  Today, more banks are aggressively pursuing short sales and working with agents who understand how to process them.

Myth #6 – Buyers are Not Interested in Short Sale Properties

This is a myth that potential sellers hear all the time. Thankfully, this is just not true. In fact, we are getting calls from buyers who say they only want to look at foreclosure and short sales.

For buyers, short sales and foreclosures have become synonymous with “good deals.”.  Listing with an experienced agent who is educated in the short sale process will provide you with a great chance of quickly seeing a contract on your property.


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1ST Time Homebuyers Alert: Buy Short Sales!

Aug 11

Posted by ericcio in Buying Short Sales in Metro Detroit, First Time Home Buyer Tax Credit, Short Sale | No Comments

This is an Alert for all you 1ST Time Homebuyers out there across the Detroit Metropolitan area! Time is running out for your free tax credit when you buy a home on or before November 31, 2009.

IMPORTANT NOTICE: You must close on your purchase on or before November 31, 2009. Foreclosed homes are beginning to dry up and Short Sales are becoming the best-valued purchase. I might even go so far as to predict that we will see a spike in privately owned homes (yes they still do exist) and short sales. Here’s why:

  • Short Sales are becoming more common with today’s market and banks are approving these types of sales more often and more quickly.
  • Short sale homes are cared for, in much better condition and priced very well. Would you rather buy a foreclosed home that requires $20,000 – $30,000 in repairs for a $100,000 or buy a short sale home that needs no repairs for possibly $ 100,000 as well? It just takes some time to get acceptance from all the lien holders.

My advice is get in contact with a Realtor® that has experience in all aspects of today’s Real Estate market and is willing to discuss your options for buying you first home. My opinion is this, buying a home with very little or no repairs needed are the best deal going. But also remember Short Sales take time but in the end it will be worth it. Now get out there, start searching and Good Luck!

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Should you as a Buyer, buy a short sale?

Jul 8

Posted by msecord in Buying Short Sales in Metro Detroit, Short Sale | 9 Comments

In Metro Detroit for the most part, short sales are a very good purchase.  They are very close to foreclosure prices and in much better condition.  The seller is still living in the home and maintaining it unlike foreclosures, which are often in disrepair to say the least and some are totally trashed.  In a short sale, the seller is trying to do the right thing to lessen the impact on their credit.  They are taking a very proactive and responsible approach to selling their home and can definitely be worth the wait.

Now you want to know, what are the advantages of a short sale?  The advantage is that you are probably going to pay less for the house than it is valued at.  This means that you are moving into a home with instant equity.  Often homeowners who find themselves in a short sale situation don’t have the time to wait 85 days because they are unable to make the payment on their home, this means that they are selling the house below market value in order for it to sell quicker.


A big question at the present time is “Are you a first time home-buyer?”  If so, the federal government is offering an $8000 tax credit to all first time home-buyers or anyone who has not owned a house in the last three years.   In order to receive the tax  credit you must close on your home before December 01, 2009.  With a short sale the process can take anywhere from 30 days to 180 days with most taking 60 days.   This is because although the current owners are the sellers they are not going to be paying back their loan to the bank so the bank must approve the offer that you make.   This means that if you are considering a short sale and are a first time home buyer you need to be looking for a home immediately or you are going to risk losing the $8000 the government is offering you.

So what is the down side to a short sale?  I have already mentioned that it takes a lot longer to close but it also gets more complicated than that.   Often the bank takes a while to respond to the offer, this means that you (as the buyer) are waiting for an answer.  Buying a home can be a stressful process so just proceed with caution when purchasing a short sale as a home-buyer.  They are a wonderful investment opportunity for a buyer, you will need to make sure that your Realtor is fully versed in negotiating a short sale.  Not all turn out bad but just be aware that you may be waiting a lot longer than usual before knowing if this house is going to be your future home.

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What NOT to do when you’ve missed Mortgage Payments!

Jun 28

Posted by msecord in Facing Foreclosure | 2 Comments

  • Do not hire an agent who has never done a short sale. Interview agents who have done short sales before and… have gotten them approved! Most Agents hate them, they’re a lot of work and there’s no guarantee they’ll go through. If an agent wants to do your short sale, they genuinely want to help. Period!
  • Do not let your property sit on the market 2 weeks without an offer! The bank will not even look at your file without an offer. If it’s been 30 days and you still don’t have an offer, this means you are not negotiating with the bank yet… and time is ticking.
  • Do not sign with an agent that says “I can get you more money” the market is what it is. Getting more money for the property has very little to do with getting the short sale approved! We price your property where it needs to be according to the market and prove it to the bank; that this is where it needs to be!
  • Do not try to “sell it yourself”! You’re wasting your time! You need a buyer and… try to negotiate the short sale. Just hire a professional. It’s a totally different ball game.
  • Don’t wait until the last minute to hire a real estate agent to do a short sale. Short Sales can take 3-6 months and we need that time to try and get it done. Call us as soon as you get the “Notice of Default” or better yet, before you miss a payment.
  • Do not procrastinate! Once you get a notice of default, find a solution quick. Let the professionals handle it. It’s less stressful if you hire an experienced short sale professional to handle this type of emergency.

You must find a buyer, that is where we can help!

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What is worse? A Short Sale or a Foreclosure?

Jun 22

Posted by msecord in Short Sale | 12 Comments

If you are one of many Metro Detroit homeowners who have fallen behind or are in the fear of falling behind on your mortgage payments, you are probably wondering what is worse a Foreclosure or a Short Sale and which one will allow me to have a fresh start with the least amount of damage to my ability to purchase a home again in the future.  I am here to say most definitely a Short Sale is your best option of the two.

What is a Short Sale?

A short sale is when the lender(s) agrees to accept a mortgage payoff amount less than what is owed in order to facilitate a sale of the home.

What is in it for the Seller?

The ideal scenario would be for the seller to catch up on their payments and stay in their home.  But for an increasing number of homeowners, this is not a realistic possibility.   This is why they look at Short Sales as a way to resolve the problem rather than hide from their lender.

As a seller, there are myths to a short sale, such as you will lose your home (but that will happen anyway with a foreclosure) or that you have to be behind in your payments – both are not true at all.   There are pros as well, such as your credit score will recover faster than with a foreclosure.

What Motivates the Lender?

Why would a lender let you walk away from the home and forgive the shortfall on your loan? To save time and money.  The foreclosure process is a long and very expensive process for the bank.  Once the bank realizes a foreclosure is eminent, a Short Sale may seem like the lesser of 2 evils.  Also, with a short sale the property was never listed as a foreclosure, therefore improves the lenders foreclosure rate not to mention the property continues to be inhabited and maintained so it doesn’t become a blight on the surrounding neighborhood.

Negotiating a short sale is not for the faint of heart.  It can be very time consuming and take months to negotiate from start to finish.  A well put together short sale package along with an experienced Realtor will net the best results with dealing with the lender.



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