SHORT SALES:
an Alternative to FORECLOSURES
CLARK COUNTY, WA. REAL
ESTATE MARKET & TRENDS
SHORT
SALES UPDATE: "Mortgage Forgiveness Debt Relief Act of
2007"
This
Debt Relief Act "revises a section of the Internal
Revenue Code which classifies forgiven debt as income. As a
result of the Act, sellers will not be taxed on up to
$2,000,000 of debt ($1,000,000 if filing individually) that
is forgiven upon sale of the sellers' principal residences.
The Act is retroactive, in that it applies to debt forgiven
on or after January 1, 2007, and will be in effect until
January 1, 2010."
(This
information is provided as reference only and is not intended
as tax advice.)
REAL ESTATE Headline news ~
"Current
real estate market in Clark County, WA. - Tough Times
Ahead"
"Pre-foreclosure
notices are being sent out in a record number for Clark
County".
"Fannie
Mae expects big jump in foreclosures".
WORK OUT SOLUTIONS:
If
you have recently received a pre-foreclosure notice from your
bank, or, if you are just starting to get behind, you need to
start looking at options. "Work Out Solutions" and
"Loan Modifications" are being offered by most
lenders.
They
may be able to modify your loan terms, offer a temporary
payment plan, reduce your interest rate, move missed payments
to the end of the loan, or extend the term of your loan to
lower the payment amount. It is so important for you to make
that phone call and communicate with your lender. Remember
that you are one of thousands facing the same problem. The
banks are willing to find the best available alternative to
resolve your delinquency!
Going
through a foreclosure is going to hurt your credit history
for 7 years!
Call
your lender as soon as you have a late payment. Even if you
are 3 months late, call your lender! Ask about loan
modifications or work-out solutions. Be willing and ready to
present to them with the reasons why you are having financial
problems. High interest rates on adjustable rate mortgages is
a huge problem right now. If the interest payment is killing
the deal - tell them! It will be cheaper for them to
negotiate than foreclose!
SHORT SALES:
A
Short Sale is simply stated as the "sale of your
home for less than what you owe".
If
the sale of your home is the only solution to your current
financial situation, then consider a Short Sale.
Most
lenders are willing to forgive a portion of the debt in order
to avoid the foreclosure process! Once the bank approves the
offer on your home, it can proceed to escrow, and close with
a clear title for your buyer - you have avoided foreclosure
and saved your credit!
You
do not need to be behind on your payments to start the Short
Sale process. But if your payments are putting you in
financial stress, and late payments are in the near future,
consider a Short Sale. Lenders consider financial
hardships caused by unforeseen circumstances such as layoffs,
divorce or illness - in addition to the problems caused by
adjustable rate mortgages.
The
current real estate market in Vancouver, and most of Clark
County is still on a downward trend. We have a record number
of homes for sale - a true Buyer's Market - and
homeowners are reducing the list price considerably to get
their homes sold. Some homeowners purchased at the peak of
the market and are faced with the fact that they owe more on
their home than it is worth in the current market.
Lenders are also aware of this problem.
If
a lender agrees to a Short Sale - all of the debt is packaged
- Property Taxes, Liens, Real Estate Commission, Excise Tax,
Closing Cost, all of the accumulated debt on the loan, plus
any other debt that clouds title. In a Short Sale, the seller
gets no money, but is also not charged with the normal fees
of selling a home.
It
is important to find a Real Estate Agent that is experienced
in the Short Sale process. Negotiations are the backbone
to a successful Short Sale. If your negotiator is weak,
the lender may not agree to clear all debt. Giving your agent
an "authorization to release information" is
essential. The lender wants to work with only one party, and
wants constant updates on the listing process.
SELLER BEWARE:
Beware of any proclaimed
"short sale specialists" who is not a fully
licensed real estate agent.
Beware of working with
an agent that turns over the negations to a separate
company. Know who is going to be your negotiator
before you give authorization to release information.
BUYER BEWARE:
Not all Short Sale
properties are priced below market value. Be sure to
ask for a "current market analysis" on any
property before making an offer.
When making an offer on
a Short Sale property, be sure to have a contingency
that gives you clear title, and that all debt has
been paid, including property taxes, etc.
Even if the property is
sold "as is", be sure to have a property
inspection done. Know what you are buying.
SANDY MICHAELS: an Alternative
to FORECLOSURES
REALTY
PRO, INC - 12000 SE Mill Plain Blvd, Vancouver, WA. 98684 - CELL
(360) 601-3490
EMAIL
sandymichaels@msn.com WEB www.sandymichaels.com
I have experience with Loan
Modifications and Short Sales - they do work - banks do
negotiate.
As
a"Broker Price Opinion Professional" (BPO's)
I have the experience to set an adjusted fair market
value on your home, a value that the lender will approve for
a fast sale. You can get your home sold prior to foreclosure
and save your credit!
I
would be glad to discuss options with you.
Follow
the links below to find more info on Work Out Solutions and
Short Sales...
Feel
free to call me and discuss options - or just ask questions -
no obligation!
 |
Sandy Michaels - Realtor
Cell (360) 601-3490
Email sandymichaels@msn.com
Realty Pro, Inc
12000
SE Mill Plain Blvd Vancouver, WA. 98684
Office
(360)882-7000 ~ Fax (360)254-3330
|
 |
SandyMichaels.com
- SW Washington Real Estate Online
Sandy
Michaels, Realty Pro Inc, Interactive Property Search
ClarkCountyHomeBuyerSeminars.com
~ First Time Home Buyers
BlueStoneCondo.com ~ BlueStone
Cottages ~ a Washougal, WA Condo Community
ALL
INFORMATION DEEMED ACCURATE AND RELIABLE BUT NOT GUARANTEED
Information
is provided as reference only and is not intended as tax
advice - Please seek advise from a CPA or Tax Adviser.
copyright
2007 ©SandyMichaels.com all rights reserved
Updated
~ 03/03/2008
