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In an earlier post, Foreclosure/REO/bank-owned or short sale?, about the Prescott and Prescott Valley foreclosure and short sale markets, I was amazed to find how few short sales were actually closing in the Quad-City area.
After doing some more research on this, it seems that some agents are taking short sales without the right skill sets, and others, I know this may sound cynical, are actually pricing homes BELOW what the bank would actually take.
While I used to shy away from short sales, now there are 10 questions that I ask the listing agent before my clients and I craft their offer:
- Who initiated the short sale?
- Has the homeowner stopped making payments on the property?
- Has the bank received the seller’s short sale package including hardship letter and have they approved the homeowner for a short sale in writing?
- How was the listing price arrived at (BPO, CMA), and has the bank approved it
- Are there any subordinate lien holders? Have all lien holders agreed to short sale?
- Is their Primary Mortgage Insurance (PMI) on the 1st mortgage?
- Have you received any other offers, and has a loss mitigator been assigned to the case?
- How long do you estimate the loss mitigator will take to respond to our offer?
- Has the loss mitigator ordered another BPO yet? When will they?
- When is the scheduled the trustee’s sale? Has the bank postponed it in writing?
Now with the information from these questions, my buyers and I can create a more comprehensive offer, or decide to punt and go on to the next one without wasting any time or emotional distress.
Thanks to blog.franklyrealty.com for the:
Top 10 Questions Before Showing Virginia Short Sales
The REO (real estate owned) foreclosed home market is hot right now in the Prescott area with many homes priced under an already depressed market price. When banks price REOs under the market price, multiple offers are often the response. This means buyers can be up against stiff competition for that bank-owned home.
It’s [...]
Can all agents can do short sales right? Yes.
Are all agents trained to do short sales? No.
Short sales are tough. They involve legalities, financial and tax questions, and negotiations. You really don’t want just any agent to help you sell your home. you really want someone who has proven short sales training. It’s important [...]
Lenders process short sale in different ways. Bank of America now processes short sales through the equator system. BofA ntroduced the equator system in 2009. At first, it was cumbersome, confusing and frustrating. Documents were lost and the process was plagued with delays. Now, the equator system is state-of-the-art. It has streamlined the short sale [...]
Short Answer, no. I counsel many people on short sales. I list many homes as short sales. Many people going into a short sale have the same sort of reluctance. They feel as though they are horrible people and bad financial planners. I tell them that back when they purchased the home, they were approved [...]
I am often asked. What is the best way to find bank-owned homes in the Prescott area? Many people call the Realtor who is listing the REO homes. Though, this realtor can help you buy the home, they would be taking on two roles as the buyer and seller agent, also known as a dual [...]
There are 97 distressed property sales in Prescott, this is 12% of the market.
There are 43 bank-owned homes in Prescott. Go to this link for the MLS listings;
http://www.paarmls.org/prs/maildoc/sd_AAAa007E020110807180654.html
There are 54 short sales in Prescott. Go to this link for the MLS listings; http://www.paarmls.org/prs/maildoc/sd_AAAa003Dr20110807194500.html
Single Family Homes: The market probably doesn’t support much flipping, but there are plenty of good buy, and hold investments out there. Searching for a home to invest in and then rent isn’t always about looking for the lowest price per square foot. A smart investor must also consider the fix-up costs, the neighborhood, and [...]
The Elk’s Theater, as it is known today, opened as the Elk’s Opera House in 1905. The venue, which at the time boasted 900 seats and eight dressing rooms, also was used a great deal for balls, civic presentations and high school graduations. The acoustics were considered “superb.” Architecturally, the building represents a transition from [...]
Did you know? …in 1863 the first 73 lots in downtown Prescott AZ sold for an average of $53.50 per lot. Prices are a bit higher now, but there are still some great deals on lots in the Prescott area. Currently, there are 2400 vacant commercial and residential lots for sale in the Prescott area. [...]
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Posted by Jerry Cecil 
August 22, 2011, 9:52 pm
