Sacramento Expert Short Sale Real Estate Agent

Posts Tagged ‘sellers’

Being upside down seems to be the case with most sellers in Sacramento these days.  Short Sales, Short Sales, Short Sales….. This home was listed as a Short Sale because of course the seller was in a financial situation that forced the sale of the property.  I was lucky in a sense that I was only dealing with one lien holder on the property.  This makes it so much easier to negotiate the sale.  Actually there were two liens that I worked with, but one was for the new window’s that were put in a couple years ago.  Of course Smud financed these windows which enabled them to become a lien against the property. This lien would have to be paid off by the first lien holder on the property no matter if the house went to foreclosure, or was sold as a short sale.  The seller seems happy to avoid the word FORECLOSURE on a credit report, but sad that their once purchased dream home is gone.

Now a home that was once a dream for one person became a loss, but turned around and became a dream again for another first time home buyer. Now this home will get all the new touches the new buyer has to give to make their new home their own.  Of course this buyer is also happy to get get the Tax Credit that is almost ready to expire. As it seems buying  Short Sales is becoming more  popular in Sacramento as REO’s ( foreclosures, real estate owned, bank owned).

Terri Wisecarver

REALTOR®

Prudential California Realty

916-201-4007

Sacramento Real Estate

DRE# 01429634

A down hill spiral is inevitable, therefore I often have a lot of sellers asking me whom pays the back taxes I owe, and do I have to pay for you to sell my home as a Short Sale??   Of course I then begin a conversation that will hopefully give the seller more knowledge in which to base a decision on selling the home or just walking away from the mortgage.

There are of course many people that make money on the sale of a Short Sale, just like they would if anyone else was buying or selling a home.  But in the case of a Short Sale the seller does not pay the commissions, or back taxes.  Sellers are always concerned about if they are having to come up with any money at the close of escrow. At the time of the listing agreement I do ask my sellers if they owe for delinquent water,sewer and garbage because the lien holder will not pay this at closing. If it is a large amount this could be an issue. I always ask the seller to keep the utilities on because it is hard to sell property if nothing is on. This also helps when the buyer goes to do their inspections, as they will need to test the water and electric.

Everyone that is involved in the sale of any property or home will make money somehow. 

• Listing Agent, Buyer’s Agent
• The Current Lender ( They avoid the high cost of the foreclosure process )
• Title Companies ( Title Insurance for the seller and buyer)
• The buyers new Lender ( generates new interest income )
• Appraiser’s ( required by the new lender )
• Homeowner Insurance Company ( required by the lender to protect the property )
• Tax Consultants or Attorney’s ( legal advise and tax consultations )
• Buyer ( purchased the home somewhat below market value therefore gaining equity )
• Escrow Company ( processing the legal paperwork )

If you have any questions regarding the possibility of selling your home because you can not make the payments or you have a financial hardship, please contact me and I can hopefully be able to answer any questions you might have.

It never hurts to ask, it only hurts you when you don’t have all the facts or answers you were needing and wish you did.

Terri Wisecarver

Whitman Metropolitan Inc.

Sacramento Real Estate

BPO is an acronym for Broker’s Price Opinion.  In general, the term Broker’s Price Opinion (BPO) is a method that a Real Estate Broker (or an agent acting on behalf of their employing broker) uses to estimate the probable selling price of a Real Estate property/house.  This estimate is submitted in a report to the BPO Company that has ordered it. This basically is information of  properties that compare to the (subject) house that is being priced.  This is similar to a CMA that an agent would provide a seller to show the approximate value of their property.

These are done for numerous reasons, but I would like to tell you how they would play into a role of doing a Short Sale.  When taking a listing of a Short Sale there are many factors that play a role in the process of getting the bank to accept a short sale at all.  With that said you have listed the property for sale, received the whole hardship package from the seller, and submitted this package including an offer to purchase to the lender for approval.

The lien holder (bank) will then look over the package to make sure everything is complete, and then they will secure an agent or broker, an place an order to obtain a BPO on the property.  Basically the bank just wants to see the market value of the property and the condition the property is in.  This gives them some kind of idea if the offer submitted is really a good one compared to the BPO, and how much their bottom line will be.

Example:

• Home loan owed on a home is $700,000
• Listed the home as a Short Sale for $600,00
• Offer submitted to the bank of $600,000
• Bank orders a BPO to be done
• BPO comes in at an approximate value of  $640,000

 The bank now has a higher value than the offer, and this gives them great information on how to proceed with the offer.  They have a choice of doing a few things at this point

• They can accept the offer presented to them
• They can counter the offer
• They can reject the offer
• They can refuse to allow a Short Sale

Having done BPO’s  myself I now have a better understanding of a banks position.  If you have any questions about buying, selling real estate in Sacramento, please feel free to contact me anytime.

Terri Wisecarver 

REALTOR

Sacramento Real Estate 

Well this was one of the easiest short sale yet.  Nice and smooth.  The buyers staying in the game, the bank was easy to work with, seller wanting to close and agents great to work with. This home was located in desired area in Sacramento, Ca.

I was the Short Sale Negotiator for a broker friend of mine on this one. I do this for him as a side job. I worked the file until acceptance, needed an extra 2 day extension on closing, emailed the bank and poof there was the extension.  Done deal.  Happy Buyers, Agents and of course Seller.

On my previous blog about my short sale listing, I received 3 offers in 2 days. I already submitted to the bank the whole package and asked the other 2 agents if they wanted to remain in back up position. Of course they said yes!!

The bank called me on Saturday ( 4 days after submission) to tell me they received the whole package and needed nothing else at this time.  They have already ordered the BPO and assigned a workout specialist to the file. I have heard that this bank is moving faster than they did a year ago, but this is really fast. Awesome is the word. This will really boost Short Sales in the market if the banks can all move this fast. Maybe buyers and their agents will not be so afraid to look at short sale homes.

If you need any help with doing a Short Sale, in Sacramento, Placer, or El Dorado County, please contact me. I am eager to help you in any way possible.

Terri Wisecarver

REALTOR/Short Sales