Residential Real Estate in SW Washington State

Residential Real Estate Services with Passion, Integrity, Knowledge

Certified Short Sale and Foreclosure Resource

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I recently completed requirements by the National Association of Realtors to receive certification as a Short Sale and Foreclosure Resource, although I’ve been assisting buyers and sellers of these types of properties since 2004.

Taking the certification class was a fascinating experience – of the group of approximately 50 agents present, fewer than 30% of the agents had ever handled either the buyer or seller side of a short sale property! Wow, where have they been and how on earth are they still in business?

When questioned about where they work, well over half of the agents at the class focused on the east and northeast sides of King County – i.e., Bellevue, Redmond, Issaquah, Sammamish, etc., where short sale and bank owned properties aren’t as prevalent as they are in my practice areas. (Briefly, a short sale property is identified in our MLS as one where a property’s sale price is less than its outstanding indebtedness and some sort of negotiation, concession and/or approval is needed by the lien holder(s) before a sale can be completed.)

These types of transactions – for BOTH Sellers and Buyers – require considerably more experience and expert handling than do “regular” purchases and sales (whatever those are – I’ve almost forgotten!). From our informal classroom survey, it’s possible than over 70% of agents in our area have never handled a short sale or bank-owned property!!

Therefore, when you find yourself in need of help – or know someone who does – buying or selling short sale or foreclosure properties, call an experienced agent! I can be reached by phone at 206.300.8421 or by e-mail at gabrielle@gabriellenemes.com.

Bank Rejected our Offer, Then Auctioned

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Sometimes the decisions of banks make absolutely no sense in the short sale world. The bank rejected a solid offer on this house, then auctioned it for significantly less money. Go figure.

With almost 2000 square feet, you’ll love this rambler home with step-up bonus room in Timber Hills! Walk through the front door to the living, dining, kitchen, family, and laundry rooms, plus three bedrooms.  In the master suite are an extra-long closet and recently updated ¾ bath with tile floor & walk-in shower.

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 with two deep walk-in closets. Don’t miss the pull-down attic stairs in the hallway leading to additional storage space! The home’s lower level is entirely comprised of an extra-deep double-door garage with openers, workbenches, shelves and storage.

Sliders just off the dining room lead to the fenced back yard, wonderful large deck with built-in benches, and patio. With minor repairs & new carpets, this home will be perfect for years of living. Offered as a short-sale property and priced to sell!

Watch Your Credit Score If You Do a Loan Modification!

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This morning I was startled to read an article in RIS Media, an information service that scans the news services and gathers articles impacting real estate — for homeowners, buyers and for agents — reporting that Credit Scores are being reduced as much as 100 points for successful Loan Modifications!

Loan Modifications are one avenue that troubled homeowners can take when income levels drop or expenses skyrocket due to unexpected bills such as medical costs. There are a number of different combinations and types of loan modifications available, although I understand that very few loan modifications have actually been successful.

I try to keep an eye out for success stories and, indeed, I know of ONE family that was successful in their quest for lower monthly payments due to a layoff. It took months, lots of frustration, but ultimately they were able to drop their interest rate from the upper “sixes” to about 3%. I’ve talked with a number of potential clients … and now clients … also about their pursuit of loan modifications so that they were able to remain in their homes. These folks just weren’t able to push a loan mod through and finally gave up and listed their homes for sale. A couple actually decided to let the house go back to the bank through foreclosure.

So sad.

RIS reports that homeowners that ARE successful in negotiating a loan modification through private lenders are now finding credit score reductions up to 100 points! That’s certainly causes a significant impact on the homeowner’s ability to obtain future credit at a reasonable rate. Just imagine having a credit score of 750, successfully negotiating a loan modification on your home loan so that you can stay in your house … then finding yourself in a position where you must purchase a new car. Under the scenario RIS reports, your credit score could now be 650 — a real hinderence in obtaining a car loan with a reasonable interest rate!

According to the RIS report, the federal loan modification programs, Making Home Affordable and Home Affordable Modification Program, do not reduce credit scores as the transaction is reported to the credit agencies as a “loan modified under a federal plan” as of Nov. 1. However, if you modify your home loan through a private bank or other lender, your credit score could be impacted significantly.

Click Here to read the entire article … then pay attention: Watch Your Credit Score if You Do a Loan Modification!

 

Will Short Sales FINALLY Become Reasonable?

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j0078820As a busy agent in the south King County area and down into the Tacoma/Puyallup Pierce County areas, I both list properties for Sellers and assist Buyers in finding their “dream home,” whether it be a first time purchase or a repeat purchase.

While definitely not unique to these geographic areas, price points and demographics of buyers and homeowners for these areas seem to especially target short sales and bank owned properties. Or maybe it’s just the clients with whom I’ve worked over the last few months. Sellers need to sell–usually as quickly as possible–and Buyers just want to move in.

In any event, short sales have been a problem. It seems as though it’s nearly impossible to get bank approval in anything less than 120 days … and then IF we get approval, the banks want us to close the transaction in no more than 30 days, another feat that’s becoming more and more difficult.

Back in May, 2009, President Obama indicated that he was pushing forward legislation that would drastically change the method and bank requirements by which short sales would be approved. This was aimed at shortening the time the banks would have to approve such transactions, along with helping a distressed seller by eliminating the “pay back the difference to the lender” clause that has been a real sticking point.

FINALLY, on Monday Reuters reported that the Treasury Department has now set guidelines to simplify short sales. I can’t tell you how excited “I” will be when this finally happens. And when the Banks step up and get their own internal procedures in place to accommodate these new guidelines.

I’m maintaining an “I’ll believe it when I see it” attitude. It’ll be cause for rejoicing!!

AR Gay Sig