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Foreclosure Sales Account for 31 Percent of All Residential Sales in First Quarter 2010

Foreclosure Sales Account for 31 Percent of All Residential Sales in First Quarter According to New Report From RealtyTrac.

As an active short sale broker, assisting both buyers and sellers of short sale properties, I consider it a critical party of my job to help keep all parties involved and informed.

A recent statistical article by RealtyTrac, one source for Foreclosure Activity across the US, posted its recent statistical summary releasing statistics for the number of foreclosure properties nationwide, along with comparing the value of non-foreclosure properties to those properties that have been through the foreclosure process and are then sold by the Bank or lienholder.

It’s a statement of our current market to see that even nationwide, foreclosure sales made up almost a third of all properties that actually sold during the first quarter of 2010. Locally, in Auburn WA, the combination of short sale and bank-owned properties comprises a much higher percentage of residential sales.

Even more importantly to all homeowners, whether selling or not, however, is the statistic that properties that have completed the foreclosure process and are now owned by banks (“Real Estate Owned” (REO) properties), have a discounted price 34% lower than comparable properties that are NOT REO properties!

Short sale properties, conversely, look to be discounted about 15% nationwide from their counterparts that are not short sale or bank owned.

So … Mr. Bank … Please cooperate with us to get this short sale property off market. It’ll save you 19% NINETEEN PERCENT and keep prices higher!

(off my soap box now ….)

Auburn Area Mid-Summer Market Snapshot

This morning’s quick Auburn Area Mid-Summer Market Snapshot shows that there’s a total of 361 active residential listings, for an average price of just under $300,000, with an average days on market of 139 days.

Perhaps as expected, when comparing homes currently for sale (Active) to those under contract (Pending) to those where the sale actually closed (Sold), those homes pending or sold were considerably lower in price and were on the market for fewer days than those currently Active.

Red Skelton’s Pledge of Allegiance

One of my favorite gentle clowns (other than the humble clown I live with and married, of course!) is Red Skelton.

A few days ago while surfing the Web and looking for a gift for my hubby, I stumbled across Red’s recitation of the Pledge of Allegiance. Haven’t seen this in years! I hope you enjoy and appreciate this as much as I do. It’s so beautiful … and appropriate as we head into our 4th of July, Independence Day weekend. (Go to the bottom of the page for the video version.)\

Another Transaction Closed!

There are some transactions that are particularly satisfying when they finally close.

I have to say that this Listing is one that took exceptional effort, but after visiting the home to drop off keys to the new buyers, their palpable excitement and relief about being in their new home just left me with such a sense of fulfillment.

Now this was a transaction just overflowing with issues … big issues! Shortly after listing, there were difficulties with the weather, with leaks in the kitchen, with the estate auction (hmmmmmm, I’ll think twice, 3 times, about recommending that guy again), then with fielding call after call after call of low offers from agents informing me that the price was too high and that the place just wasn’t worth anything more than the land. And yet there were offers — eight of them. Most were close to the asking price. Others not so much. One was dreadfully low.

And then there were endless visits to the County and the City of Auburn trying to find appropriate records for permits, as-builts, well certifications, foundation requirements, and on and on. Meeting with contractors for bids and work to be done.

However, floating through all of this were these Buyers. They made three offers before the Seller felt secure that the offer was strong and solid enough to survive the remaining challenges of missing permits, foundation certification, title elimination, etc.

Finally, FINALLY, six weeks to the day after the contract scheduled closing date, it did. What a cause for celebration!

I remain grateful for my client, the Seller, who repeatedly listened to my advice and then took it. As with every client, we talked often. About how things were going, or not going, or just the general frustration of trying to get things done. At the end, about the frustration of the current lending climate where a Buyer’s approval could get challenged over the most mundane and ridiculous items. About the Department of Licensing who decided that they didn’t like the “appearance” of a notary’s stamp, and on and on.

The house sale closed! (whew)

Bank Approved and Ready to Close!

Links Photo Gallery Eating Nook & Corner of Kitchen Gas Fireplace in Family Kitchen w/newer counters Dining as seen from corner of Living room Bonus Room Master Bedroom Master Bath Back Deck Description Bank approval was received today and this sale is READY! We have the attention of the bank negotiator too, he’ll move quickly if you do!! At almost 2000 square feet, this is a BIG house for only $214,000. (Did I mention this price is APPROVED???) This rambler-styled home with fenced yard and great Timber Hills neighborhood, is located in convenient Covington, just minutes away from great shopping–Costco. Home Depot, Kohls–not to mention Highway 18 for easy commuting. Through the front door is the main living area with the living, dining, kitchen, family, and laundry rooms, plus three bedrooms. In the master suite are an extra-long closet and recently updated 3/4 bath with tile floor & walk-in shower. Sliders just off the dining room lead to the fenced back yard, wonderful large deck with built-in seats, and patio. Just four steps up and above the garage, is a huge 440 square foot bonus room, which could also be a very generous 4th bedroom as there are two deep walk-in closets. Storage everywhere–There’s a pull-down attic stairway in the hallway leading to floored additional storage space. And a few steps down from the kitchen are an extra-deep double-door garage with openers, workbenches, shelves and storage. You’ll need to replace the furnace, but the rest looks largely cosmetic. Should be a fairly easy fixer! Features Bedrooms: 4 Bathrooms: 1.75 Parking Spaces: 2 Year Built: 1986 Subdivision: Timber Hills Lot Size: 8012 Garage Size: 440 sq ft School District: Kent Square Footage: 1970 Agent Name: Gabrielle Nemes Broker: RE/MAX Select R.E. MLS #: 11919 Location 26716 199th Place SE Covington WA 98042 Powered by vFlyer.com vFlyer Id: 3065900

Maple Valley Fixer — Soooo Serene!

Looking for serenity and quiet? The hooting of an owl serenaded us while taking these house photos! Backed by the Cedar River Watershed and edged by an empty lot, this home is perfectly sited for a peaceful retreat after a long day!

The current owner is a mason and her skillful tile work is evident throughout the house and yard. You’ll need to finish up much of the home. As an example, the master bedroom remodel was started years ago, but circumstances didn’t allow completion. The home needs flooring, windows, furnace or wall heaters, kitchen cabinets & counters, trimwork, and more.

But when done, in addition to your lovely home, you’ll have a huge back patio perfect for entertaining, a circular driveway, lovely lush plantings, and the space to park all your toys. No homeowner association here!

Baseball & Babies, It Just Doesn’t Get Any Cuter!

For the last month or so I’ve been assisting a wonderful couple find a new home. As we’ve gotten to know each other, I was delighted to find that not only are they the parents of darling little Noah, they were huge Ken Griffey, Jr. fans. In fact, the first time I chatted with them prior to their move to Washington, Dad was absolutely certain that four-month old Noah already knew how to play catch!

As the proud grandma of our own little Tyler, just one month ahead of Noah, I decided it was time to get baseball hats for the both of them, which lead to a pair of tickets for my relocated clients. The hats were HUGE on both of the boys, but little Noah loved the game!

6 Tips for Buying a Home in a Short Sale

I was recently forwarded this article about buying short sales and thought it was good enough to share! Thanks to BuyAndSell.HouseLogic.com, By: G. M. Filisko, Published originally on March 19, 2010

Here are six tips for protecting yourself emotionally and financially when bidding on a short sale.

1.    Get help from a short sale expert

A real estate agent experienced in short sales can identify which homes are being offered as short sales, help you determine a purchase price, and advise you on what to include in your offer to make the lender view it favorably. Ask agents how many buyers they’ve represented in short sales and, of those, how many successfully closed the transaction.

2.     Build a team

Ask agents to recommend real estate attorneys knowledgeable in short sales and title experts. A title officer can do a title search to identify all the liens attached to a property you’re interested in. Because each lienholder must consent to a short sale, a property with multiple liens, like first and second mortgages, mechanic’s and condominium liens, or homeowners association liens, will be harder to purchase.

A title search may cost $250 to $300 up front, but it can help weed out less desirable properties requiring multiple approvals.

3.    Know the home’s fair market value

By agreeing to a short sale, lenders are consenting to lose money on the loan they made to the sellers to purchase the home. Their goal is to keep those losses as low as possible. If your offer is dramatically less than the home’s fair market value, it may be rejected. Your agent can help you identify the price that’s good for you. The lender will determine whether approval is in its best interest.

4.    Expect delays

There are two stages to a short sale. First, the sellers must consent to your purchase offer. Then they must submit it to their lender, along with documentation to convince the lender to agree to the sale.

The lender approval process can take weeks or months, even longer if the lender counteroffers. Expect bigger delays if several lienholders are involved; each can make a counteroffer or reject your offer.

5.     Firm up your financing

Lenders will weigh your ability to close the transaction. If you’re preapproved for a mortgage, have a large downpayment, and can close at any time, they’ll consider your offer stronger than that of a buyer whose financing is less secure.

6.     Avoid contingencies

If you must sell your current home before you can close on the short-sale property, or you need to close by a firm deadline, your offer may present too many moving parts for a lender to approve it.

Also, consider ordering an inspection so you’re fully informed about the home. Keep in mind that lenders are unlikely to approve an offer seeking repairs or credits for such work. You’ll probably have to purchase the home “as is,” which means in its present condition.

This article includes general information about tax laws and consequences, but isn’t intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction.

Other web resources:

• More on short sales
• Real-life discussions of short sales

G.M. Filisko is an attorney and award-winning writer who luckily has avoided the need for a short sale on her properties. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Fannie & Freddie Adopt HAFA Short Sales Guidelines

Fannie Mae and Freddie Mac are now allowing struggling homeowners with loans backed by the government-sponsored enterprises, or GSEs, to sell their properties through a Short Sale or deed-in-lieu of foreclosure if they can’t get a loan modification, officials announced this week.

GSE loans were excluded from the Treasury’s Home Affordable Foreclosure Alternatives (HAFA) program’s guidelines, which went into effect in April. HAFA, which streamlines the Short Sale process, was created to help both homeowners and banks avoid foreclosure.

To be eligible for HAFA, Fannie and Freddie loans must first qualify for and enroll in the Home Affordable Modification Program (HAMP). GSE loans are eligible for HAFA only after HAMP and other home-retention options have failed.

Freddie Mac and Fannie Mae servicers must comply with the new HAFA procedures by Aug. 1; the program expires Dec. 31, 2012.

Here’s an excerpt from a DSNews article detailing the new GSE procedures:

Fannie Mae’s HAFA servicing guide stipulates that, “All servicers must implement Fannie Mae’s HAFA for all conventional mortgage loans that are held in Fannie Mae’s portfolio, that are part of an MBS [mortgage-backed securities] pool that has the special servicing option, or that are part of a shared-risk MBS pool for which Fannie Mae markets the acquired property.”

Freddie Mac’s HAFA servicing bulletin specifies, “First-lien mortgages owned, guaranteed, or securitized by Freddie Mac that were originated on or before January 1, 2009.”

The GSEs will pay financial incentives to both servicers and borrowers who make use of a short sale or a deed-in-lieu to avoid a foreclosure on a HAMP-eligible loan. Servicers will receive $2,200 for every HAFA short sale and $1,500 for every HAFA deed-in-lieu completed. Borrowers are entitled to an incentive payment of $3,000 to assist with relocation expenses.

© 2010 RE/MAX, LLC. RE/MAX Affiliates may share this article, provided they do not charge for it and this notice is included. All other rights reserved.

Want to Buy or Sell in Auburn, WA? Better Use an Experienced Short Sale Agent!

At a recent Short Sale and Foreclosure class, I observed that possibly over 70% of agents in the greater Seattle/Bellevue/Tacoma area have never handled a short sale or bank-owned (foreclosure) property on either the buyer or seller side. Now that may be okay in some areas of King County, but as you work your way south into the Auburn area and further into the north Pierce County area, you definitely need to be working with an agent who has Short Sale and Foreclosure experience. Here’s why: 

Although I run statistics frequently, I hadn’t actually compared different parts of the region as far as distressed property sales. Curious, I went to our Northwest Multiple Listing Service to run some quick stats. No, it’s definitely not just my imagination: short sales and bank-owned properties are far more prevalent in my business areas of the south King County and Pierce County areas. 

So here are the facts as of this morning, May 18, 2010 of the residential properties that I work most frequently (single family, condominiums, and manufactured homes): 

In King County, there are currently 15349 unsold properties. (Some of these do have offers of one sort or another.) Of those unsold properties, 971 are noted as being Bank-Owned, while another 4207 are noted as requiring Short Sale or some other third-party approval before the sale can close. Okay, that computes to about 33.7% of unsold properties being either bank-owned or short sale nature. 

In Pierce County, there are currently 6755 unsold properties. Of those, 741 are bank owned and 2178 are short sales. That’s approximately 43.2%. 

Now, to get even more specific, I live and focus my business (although not exclusively) in Auburn, a smaller community that spans the King and Pierce County lines. In the Auburn area, there are 463 unsold listings, 68 bank-owned and 228 short sale properties. YIKES! That’s 63.9% of all listings in my area!

So here’s the point: If you plan to buy or sell a property in the south King County or Pierce County areas where properties are so affordable, be sure that you’re working with an experience Short Sale or Foreclosure Agent. 

 

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