Foreclosure Report

Home Foreclosure Report

Home Foreclosures grew by 7% percent in May and increased by 48% annually, according to a

report released by RealtyTrac.

That is the highest rate since the firm began tracking foreclosures in 2005.

One in every 483 U.S. households received a foreclosure notice during the month.

If you are facing difficult times, my advice. . don't do it alone.

There is assistance at a county level [ Community Action Agencies] available.

A short sale could help you avoid foreclosure all together. .

A Professional Realtor that specializes in short sales could help you seee your options to make a sound decision that will protect your best interests.

For a no obligation consultation if you may be a candifate for a short sale. .Herboso & Associates is available if you just call. .

for SHORT SALES in Maryland, DC and Virginia

Need immediate help? Call 240.426.5754 right now!

Fernando@ReallyNiceHomes.com

Free List Of Foreclosures In Maryland

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Announcing the arrival our newest website

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What Percentage Of Sales Price for a Short Sale ?

What Percentage OFF Sales Price for a Short Sale ?

I've been asked many times about this. The short answer is : Depends
Here are 3 things that will determine this question:

#1 Are there any similar comparables. If two houses are alike and one SOLD for $100,000 and the other one is a short sale. The percentage of the sales price from this comparable should be less that the amount it will cost the bank to foreclose the property. If the cost to foreclose a property from XYZ Bank is $20,000. .then an offer of $81,000 will make sense to the bank. An offer below $80,000 will not make sense to be accepted by the bank.

#2 Of course there are many conditions to be in line before a short sale can be accepted. The number 2 reason to validate a percentage of the sales price during a short sale is by knowing if there are two or only one bank holding the note. From the last similar comparables you can deduct that bank #1 holds 80% of the mortgage. .and bank #2 gets the "short" end of the stick
If bank #1 can get their 80%. . bank #2 will try to get whatever they can get. . .after they realize that the property value doesn't give them a chance to get anything. When bank #2 is the same bank. . they maybe willing to write it off.

#3 The percentage off the sales price when it is a short sale will also be determined by BPO.
The Buyer Broker Opinion plays a huge role in determining what percentage off you will be paying when buying a short sale. Proving to the bank that the property needs major work could get you an offer accepted 30 to 40% below the last comparables.

As a listing agent for close to 20 active short sales, I ask my dear Realtor friends that I don't care how low your offer can be. ..I will submit it to the bank. . .as long as you can send me a comparable that supports your offer amount.

Low Ball Offer Extraordinaire

Top Mistakes Made by Lowball Buyers

* Can't Afford or Unqualified to Pay More. As your Realtor, I can’t tell the seller your price is fair because that's how much our lender has qualified for . A seller doesn’t care what you can or cannot afford to buy. If you can't afford to buy that particular house, that's not the seller's problem; it's yours.
* “I’m Paying All Cash”. It's all cash to the seller anyways. .The only advantage is that you will be removing the financing contingency out of the picture. .it helps somewhat but in the end, it’s all cash..
* Walking Away At The Crucial Time . Some buyers get their feelings hurt or can’t accept rejection. It’s not a mano a mano competition. . . the one that shuts the door first will never find out if they were truly ready to accept your offer
* Not hiring me or an experienced negotiator to represent you. Our services are free for buyers and our advice will save you Thou$and$$ during the course of a 30 year mortgage.

Some Of My Strategies for Winning the Lowball Offer

* I Find out the Seller's Motivation. It requires tact and years of experience to get this information in a stealth manner. Hiring me will put you in another level.
* Writing a Clean Offer. I keep it simple and make sure that that even the smallest of details aren’t missed. My offers reflect your ability to perform together with a clean strong lender’s approval and the least amount of contingencies
* I Always Advice to Counter the Counter Offer. It goes without saying that if we received a counter-offer. .we didn’t insult them with our initial offer. This is the time to see how low will they go.
* I Move Attention Away From Price. There are many other considerations than just price. Amplifying the negatives and ignoring the positives has its merits. then again. .there is a fine line here too.
* I Always Give a Logical Reason Why Our Lowball Offer is Fair. Don't insult the agent by ignoring this. I have to give the agent a reason to give the seller something to think about. . if is something new and was never considered by them before.. . .then we got the upper hand.
* When Our Lowball Offer is Rejected and Negotiations End I just wait a couple or three weeks and cross off the date in the original offer, put in the new date and I resubmit the offer. A lot of sweating in 3 weeks by the seller and maybe they will be relieved that you are still considering it.

Great News For Short Sales

Tax implications for the borrower was very significant that a short sale would not be in the borrower’s best interest. Before a short sale was contemplated in 2007, I strongly recommended that the borrower seek the advice of a professional tax advisor.

Generally speaking, any relief of indebtedness was supposed to be included in the sellers gross income for the tax year.
The great news is that as of January 4th, 2008 Congress and the President pass into law that a short sale will not be liability for the seller period. Read It Here
There are some exceptions to this rule , please contact me if you have any questions.
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