PAGE 13 The Real
Estate World By Vicki Puterbaugh
CRS, GRI, CDPE More About Short Sales
QUESTION: I’ve heard of people who weren’t behind in their mortgage payments and were still able to get their lender to accept a “short sale”. I’ve also heard that the bank representa- tives have told mortgagees they wouldn’t consider a short sale if they were current in their pay- ments. Who is right?
ANSWER: Mortgage hold- ers will consider a short sale even without you being in de- fault. If you can show them that default is imminent i.e.; your variable loan is going to recast and your payments will be more than you can make. Or you have been told that you will be affect- ed by a company reorganization or down sizing or transfer. Any of these can be sufficient rea- sons to get a short sale started.
QUESTION: I’m a 1st time
buyer. I’m qualified to use my VA loan but I’m having a hard time finding a home to buy. When we do find one we like and make an offer, the seller accepts an- other offer. With so many fore- closures, I thought it would be easier. to find one. What do you suggest?
ANSWER: Let me start with a little current background. Ac- cording to recent statistics pre- sented at the Southwest Riv- erside County Association of Realtors, as of January, 2012, foreclosure sales in the prior 12 months made up approximately 28% of this area’s resale mar- ket. Short sales accounted for 32% of the re-sales. Standard sales accounted for 40%. That describes the seller activity. Ac- cording to DataQuick, in Janu- ary, 2012 cash buyers account- ed for 31.4% of the home sales. FHA loans accounted for 31.2% of the purchases. Bottom line: there isn’t a large inventory of
foreclosed homes sitting on the market. There are many buyers, cash and entry level and some move-up buyers trying to take advantage of the low interest rates and low home prices. Inci- dentally, the home prices in the Temecula Valley have remained stable for the past two years. My suggestion is be sure you are working with an experienced lo- cal Realtor. The strategy needs to be preparedness, persistence and patience. Be sure you are completely approved by a good lender. You don’t want any sur- prises when you do find the right
MARCH 2012
over list price for the house, you have to be ready & willing to come out of pocket and pay the additional $10K if the property doesn’t appraise for the offering price. Remember, the purchase of a good home in this market is worth the extra effort
home. Be realistic. There is a difference between your needs list and your wants list.
Your
agent needs to structure your of- fer so it will be attractive to the seller and realistic. That means if you are willing to pay $10,000
Vicki Puterbaugh, CRS, GRI, CDPE has been a successful Realtor in Temecula Valley for 22 years. Email your questions to
Vicki@rancon.com or call 951-453-9735
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