Cape Coral Waterfront - Luxury Homes

Short Sales and How I Think They Should Be Handled

 

First of all I do not believe that any real estate agent should list a home as a short sale without having done some research first.

 

 

Research

 

You should have a preliminary title search done to determine if there is a second mortgage or any other liens on the property. Determine who the owner(s) are.

 

           

 

Document Collection

 

Next, you should collect all of the necessary paperwork that the lender will require for their short sale package. (Some banks require less/more documentation but this is a very 'standard' list)

 

Obviously the following that you'd normally complete:

 

• CMA - YES, you need to know the market value of the property!
• Listing Agreement
• Short Sale Addendum (if your board doesn't have one yet you should get an attorney to create one for you)
• Seller's Real Property Disclosure (Yes, even AS IS deals)
• HOA documents/ HOA/Condo disclosures as necessary
• Lead Based Paint Disclosure as necessary (pre 1978)

 

 

• Last 2 year's tax returns
• Last 2 month's bank statements
• Last 2 pay check stubs
• Letter of Authorization
• Financial Statement
• Hardship Letter

 

(if customer is missing a tax return or pay check stub have them write an explanation as to WHY (i.e. No paycheck stubs because they are 1099 contractor)

 

*for your info: Copy of mortgage statements

                                               

• If there are 2 lenders you will need these documents for each.

 

 

Listing Activities at property

 

 

• Take multiple photos of the property - the good and the bad. Obviously use the prettiest photos for your marketing material but disclose any known defects. The bad photos are good to show the seller's lender.

 

• Put an electronic lockbox on the front door or hidden if seller/tenant prefers. Agents that have to pick up a key or schedule to meet an owner/tenant/agent are WAY less likely to show that home. Especially in this current buyer's market. There are too many other choices available. Check out my previous blog about tenant occupied short sales.

 

• Install your sign.

 

Back at office

 

• Call bank(s). Ask them where to send the authorization to release and what their short sale process is. They'll either tell you over the phone or send you some additional package of information. Also make sure to verify where/to whom you will send the package once you do have an offer (ALWAYS goes to some different #/Dept)

 

• Enter property into MLS. Use multiple photos. Use a full description. Make the showing instructions easy to find and follow.

 

• Enter property onto the best internet sites. We typically start with point2agent and Realtor then add as necessary. Our listings are enhanced on Realtor so we can add more photos and a better description. Point2Agent is a great website to use to get your listings onto several other real estate websites.

 

• Add the property on your blog. Make it interesting. Use lots of photos. Talk about the emotional benefits.

 

           

Yay, Showings and Offers!

 

You get showings, and now an offer comes in. GREAT! How do I think offers on short sales should be handled? Like any other sale.

 

            Present all in a timely manner. Encourage your seller to make a decision asap. If they like the offer, have them sign the contract. We require all contracts to be on the Far/Bar As-Is contract along with the Short Sale Addendum. We also require a bank letter of funds available or a pre-approval letter and a copy of the buyer's escrow check.

 

            What's next? First of all, stop taking other offers! After the buyer and seller have agreed the property is now for all intents and purposes PENDING. Yes, there is a third party approval required but that DOES NOT mean that you do not have a CONTRACT. You do. I'm sorry to go off a little here but this one of my pet peeves. We have buyers write up all of the time to hear weird things like the following:

 

            1) Our seller isn't going to sign - it's up to the bank

            2) The seller has already accepted 4 other offers, they're waiting on the bank to respond

            3) They accepted another offer last week

            ETC.

 

My response to each:

1) Then we don't have a deal. I will continue to look for homes for my buyer. This obviously makes no sense. The contract is between the buyer and the seller - the bank is a third party approver only. Most banks won't even look at a file unless all documents are correct and signed/dated and still within timeframes.

            2) Why would you obligate your seller to sell his/her property 4 times? Again, I'm going to find my customer something else. This is a waste of time. I get what the agent is trying to do. For lack of better terms, 'have their cake and eat it too'. If one buyer gets tired of waiting, they'll have possibly 3 more in line. I get that but it is not done correctly. You can have one offer you are working on and 3 back up offers but not 4 contracts on the same house. That's utterly ridiculous.

            3) Really, then WHY is it not marked pending or active contingent short sale (that's our MLS's new rules for short sales that have been agreed on (under contract) but are waiting on bank approval)?

 

 

Listing agents: If you want to play the multiple offer game that is fine. I realize you want your seller to go with the most likely offer to get accepted and be able to close. That's a no-brainer. But you have to disclosure what you are doing. Like many bank owned listings, they'll say "We will be accepting offers for 5 days before we'll get an answer from the bank. At that point the bank will most likely ask for everyone's 'highest and best offer'." My response: GREAT, here's my buyers offer. It expires in 6 days. At least they know what they are doing. That makes sense!

 

 

Submit That Offer

 

            Ok, now back to the seller's bank. You should have already spoken to the bank(s) to know exactly what to send and to where. Create a nice coversheet detailing the borrowers (that's your seller) Property Address, Name and Loan #. Include page #s like a table of contents. Include the contact for the BPO/Appraisal. Include a preliminary Hud1 (get from your title company), updated financial if out-dated, comparables and property history of the property. Send this and call the following day to verify. (Some banks say it takes up to 72 hours to receive so you may have to call back again) DO NOT STOP CALLING UNTIL YOU HAVE VERIFIED THAT THEY HAVE RECEIVED THE PACKAGE AND THAT THEY HAVE EVERYTHING THEY NEED. Most of the time if you are NICE they will look through the package while you are on the phone and let you know. Also find out who the negotiator is and when the bpo/appraisal will be ordered. Get the negotiators Full Name, #, Extension and Email address if at all possible.

 

 

Follow up

 

            From today on, call at LEAST once a week. Some banks may have an answer within a week; others may not for 2-3 months. All banks work differently. Always ask them what their timeline is. Do not leave multiple messages in the same day. You will irritate the negotiator. They are very busy people. Most have 100-300 files on their desk. Make sure you acknowledge that and make their job easier by having everything ready for them. If they prefer email, shoot them over a quick email for an update. They appreciate the non-intrusiveness of email.

 

            Also each week, call your seller to let them know what the bank said. Call the buyer's agent to tell them what is going on. Tell them to call their buyers to advise. Call the title company to keep them in the loop. Communication is key. If you keep everyone in the loop your chances of a successful closing go WAY up!

 

 

Approval

 

            Now you have an approval. Make sure the closing date will work for everyone. Send the approval over to the buyer's agent and the title company. The buyer may need to get financing so make sure they have enough time for that. They'll also want to have an inspection completed. Make sure to have the electricity and water turned on for that. If your seller cannot afford to have it turned on then turn it on for them! You took the listing knowing the financial situation of the seller. Don't stop helping them out now.

 

            You know the rest of this, now it is just like any other transaction.

 

 

Close on the property

 

The sellers have now SOLD their house. The buyers have now BOUGHT the house they wanted at a good price. Everyone wins.

 

 

Conclusion

 

Good luck out there.

 

Buyers, don't be intimidated by short sales. Just make sure you have an agent working for you that understands the process. They'll be able to inform you right away if something doesn't add up or seem right.

 

 

Sellers, please do not make the mistake of listing your home as a short sale with just any agent. Make sure they fully understand the short sale process. This is a very important transaction in your life and not everyone is cut out to handle this for you.

 

We look forward to working with the other professional real estate agencies on short sales and the many buyers and sellers as well.

 © Susan Milner 2008

Yours in Success,

 

Susan Milner

Florida Future Realty, Inc.

www.Florida-Future-Realty.com

www.The-Extreme-Team.com

888-764-6665 toll free

239-542-8521 local

Susan@SusanMilner.com

http://www.findcapecoralrealestate.com/003C7E

Late on Payments -- Facing Foreclosure?

There are ways out. That's the #1 thing to know.

There are options available to homeowners who have missed mortgage payments & facing foreclosure.

Many homeowners do not realize that they could get out & save their credit too.

You have to know: The bank does NOT want your home. Especially not in the current buyer's market that most of the nation is in.  (This is true for MOST banks. I have recently ran into a few local banks who are thinking differently for some reason)

According to Freddie Mac the average cost for a bank to take back a property is $59,000! Why would a bank choose to lose so much? Wouldn't they rather work with you? Of course...

Typically, you can contact your lender & work something out. Thats the first place to start. Call them as soon as you know there may be a problem, don't wait until after you've missed more payments. Often times they will work out something with you to save you some time & money while times are tough. This may include an adjustment to your current loan or a grace period/forebearance.

If that doesn't work & you think you may risk losing your home, contact a real estate professional. Make sure you interview a few & find out what their experience with pre-foreclosures or short sales are. Some may have never dealt with this type of circumstance before.

You need to make sure you are honest with the agent so they can devise a plan for the sale of your home. Even if you owe more than the current market value, an educated agent can assist you in selling your house & saving your credit. Banks often times take a loss (also called a short-sale) on a property to avoid having to go through the expensive foreclosure proceeding. Short sales are all too common right now in our area.

Another option, if your credit is still intact, is to refinance (if you still have some equity). Again, contact a real estate professional for a referral to a mortgage broker or bank - or contact them directly if you know of someone. There may be a better loan available for you that will ease the monthly cost. Your current lender may even be willing to refinance you depending upon circumstances. Again, ASK. You don't know until you do.

The last option is to find a real estate investor who buys pre-foreclosures. Often times they have access to cash to remedy the situation quickly. Be advised though that they will be making a profit. That's expected but its something to keep in mind. Be careful if they ask you to sign a deed or trust. Have your attorney preview any/all paperwork first.

In conclusion, its pretty scary to be facing foreclosure on your home that you've worked so hard to purchase & maintain but keep in mind that there are many options available so be proactive as soon as you know there is a problem.

Don't give up until you explore all of your options.

 

We have assisted many homeowners with short sales and of course, traditional sales. We always advise that each homeowner contact both a real estate attorney and a tax accountant to make sure a short sale is their best option. There are other options available including deed-in-lieu, foreclosure and bankruptcy. Each comes with its own set of problems but one may be right for you if a short sale isn't.

Feel free to review our website for more information on this, or any other, real estate transaction.

To have us contact you to learn more about how short sales work -http://www.findcapecoralrealestate.com/short-sale-help

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The boat lift in NW Cape Coral is currently being removed. This WILL give boaters a more direct access to the gulf of mexico. It was already gulf access. Now, for the time being, it is just easier and quicker to get out to open water.

They are conducting an environmental study for at least a year to see how this effects everything. Then they may or may not put up another lift or something else.

So question, do I think this can help home sales in the area? Of course. I think if buyers see how their access just became better it will make them like that area more.

Of course, this may or may not be forever. Things can change. Things can change anytime. For anything.

At the present time and without my crystal ball I cannot say if the lift will be rebuilt. They don't seem to know yet either.

There is a lot of bad information out there. Heck, I see agents with listings on FRESHwater with no access to the Gulf advertising them as Gulf Access. Maybe they didn't know. Maybe they did. They should. Either way - buyers be careful.

Make sure you work with a real estate agent who knows the area. I've lived in Cape Coral since 1994. I cannot say I know everything but I'll assist you in finding the answers to your questions.

"Wooing Buyers" I don't think so. Pointing out a PLUS - sure thing!

"Realtors using it as a sales pitch for Gulf Access" - It IS Gulf Access, now and BEFORE :)

 Interviewed by ABC-7 Today ~

Enjoy my video

Or read the story about the Ceitus Lift.

 

Susan Milner

Florida Future Realty, Inc.

(239) 542-8521

Search Cape Coral & other area listings: www.Florida-Future-Realty.com

Susan@SusanMilner.com

http://www.findcapecoralrealestate.com/003A3C

Lee County Florida Property Taxes can be confusing at best with all of the recent changes both legislatively and through voter amendment to the state constitution over the past twelve months here in the State of Florida.

 

The first change to property taxes in the State of Florida this year was instituted by the Florida legislature.  During the June 2007 session state legislators froze the current millage tax rates as the new millage tax rate cap.  In addition they required an additional percentage reduction below the roll back rate.  Local governments had to cut additional property tax revenues 3, 5, 7 or 9 percent based on how much their taxes had increased between years 2001 and 2006.  They also placed limits on future tax increases.  A roll back rate is the millage tax rate a governing body needs to generate the same amount of revenue they did in the previous fiscal year.

 

The second major change to Florida Property taxes was the adoption of Amendment 1 the new Homestead Exemption.  This made several changes.  It raised the $25,000 exemption to $50,000 on homes with assessed values greater than $75,000.  As an example if the county had your home assessed at $200,000 you would pay property taxes based on a $150,000 taxable value if you used the property as your primary residence aka homestead.  Next it allowed for Florida Homesteaded property owners to transfer or port their Save-Our-Homes benefits to a new property.  The total amount of exemption couldn't exceed $500,000 and if a resident purchased a property with less value than their current property the Save Our Homes exemption amount would be applied proportionally to the new property.  This amendment also exempted business owners from paying the intangible taxes on the first $25,000 of assessed value on tangible personal property.  Lastly it placed limits on assessment increases of non-homestead properties (Vacant, Commercial, etc...) to ten percent each year.

 

The Lee County Property Appraiser has a tool for perspective home buyers to use to estimate taxes on a home they intend to purchase.  You simply fill in the property address, click on the strap number, and the click the link that says tax estimator.  The link also provides a disclaimer on the use of the tool and also offers some insight into just "How do they calculate my property taxes?"

 

If you are looking to purchase or sell a home or have questions regarding a future transaction I can be of assistance to you or someone you may wish to refer.  I am able to assist buyers and sellers of fantastically priced properties throughout our market area here in Southwest Florida to include but not limited to Foreclosures, Pre-Foreclosures, Short-Sales, Vacant Land, Waterfront Properties, Single Family, Multi-Family, and Condos.

 

My market areas include Cape Coral, Pine Island, Fort Myers, South Fort Myers, Gateway, Fort Myers Beach, San Carlos Park, Island Park, Lehigh Acres, Estero, and areas surrounding Florida Gulf Coast University (FGCU) and Southwest Florida International Airport (SWFIA).

 

Please contact me direct at (239) 340-1384 or via e-mail Scott@The-Extreme-Team.com.

Scott Slocum, REALTOR®
Florida Future Realty Inc.
2816 Del Prado Blvd South, Unit 2
Cape Coral FL, 33904
Direct: 239-340-1384
Scott@The-Extreme-Team.com
Scott's Real Estate Web Page
Scott's Real Estate Blog

"Copyright © 2008 by Scott Slocum. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed without the written consent of the author."

http://www.findcapecoralrealestate.com/0026F3

As you have probably heard, the people have voted & homestead portability was passed.

What does this mean? Well for starters, it means our phones have been ringing even more than usual. Many homeowners looking for a change are ready to make a decision.

Those looking to purchase a bigger or newer home are very excited about this. They are now able to port, or bring with them, their homestead exemption from their current house. Previously, they would not be able to.

This also opens up great opportunity for those looking to downsize. Many people who had wanted to retire could not justify the move due to taxes. Now, they can simply transfer their homestead exemption over to their quaint condo or smaller house.

If you would like more information about homestead portability & how this may affect you, please contact one of our real estate agents at Florida Future Realty, Inc.

http://www.findcapecoralrealestate.com/001C09