Do You Qualify for a Short Sale?

Okay gang, I know, I know, enough already. . . I have been talking and writing and breathing short sales but this has got to be said. With the number of people jumping on the short sale band wagon many are called but few are chosen, and you have to make sure you are actually qualified we need to set the record straight. Yes property is devalued and yes you are way upside down but are you really a candidate for a short sale?

The biggest point to drive home is that you must have a true hardship to qualify. The bank loaned you the money and if you have assets and you have the economic ability to pay back the loan then you are more than likely not going be accepted for a short sale. It is a very timely process with many people investing time and energy to make it happen so it is important to assure that it is a viable option for you. I think it is a great idea to check with a lawyer an an accountant and discuss your situation. Make sure that you are honest with your Realtor because she really can not help you to the best of her ability without honest, accurate information.

Before you even think that you may want to do a short sale make sure you are prepared to be forthcoming and honest about all of your income and dept. You will need to provide a few years taxes, bank statements, and any other source of income that is available to you. More than likely if you have gotten to this stage there is a real tangible reason for your inability to pay your dept. It is vital that when you write your hardship letter is written by you and not an attorney or other party. MOST important, however, is that these items must be submitted before a SHORT SALE contract can even be looked at as a SHORT SALE possibility. So be working on these things as soon as your Realtor takes your listing.

Many people call me and ask me, “Is that a pre-approved short sale?” Now that is a hard one to swallow because there really is no such thing because a short sale can NOT happen unless the bank and the seller agree to the final terms. In other words, per the addendum the seller needs to be satisfied with the settlement that the lender is proposing for the deal to work. It is really a great big jig-saw puzzle with many pieces that have to fit together so really, until it is over – it is just not over.

I hope that this does not come across as a mean spirited article, that is certainly not the intent. I just want to clear up some misinformation that I hear floating around and I am sure that you have heard it too. Thankfully most of our short sales are working but the fact is, they do not all fly, so the best assurance is to lay it all out on the table, take a deep breath, be patient, be really really sweet to your Realtor and she will be really sweet and patient with the lender and hopefully. . .

Sorry if I am beating a dead horse but it keeps coming back to life.

Episode #6 – Hot Deals at an Absolute Auction, Island Reserve

The Beach Show is your ONLY internet TV show all about Real Estate on Panama City Beach.

Call us at 866-994-1770 to see these properties or for anything else you need regarding real estate in Panama City Beach.

Show Notes

Deal 1

List Price: $269,900
Square Feet: 2,172
Price/SqFt: $124.26
3 Bedrooms, 2 Bath
Built in 1991
This home is in superb condition and the landscaping is simply amazing, nearly flawless. There is nothing needed to move in, it’s ready to go. In addition, this IS NOT a short sale and the seller is ready for a quick closing. You just can’t beat the neighborhood, location, house, community, this listing has it all. There have been many upgrades recently, including a Rinnai tankless water heater, oversized shower/bathroom, new roof, pool, big back yard, newer A/C and so much more. The seller is very motivated and ready to move out, make an offer.

Deal 2

List Price: $299,500
Square Feet: 2,150
Price/SqFt: $139.30
3 Bedrooms, 2.5 Bath
Built in 1984
This immaculate home in Bay Point is also move-in ready. Karen says, “bring your toothbrush to the closing table.” If you aren’t familiar with Bay Point, it has long been considered one of the premier neighborhoods in Panama City Beach. At one point, you couldn’t touch a home in here for less than $400k, but this is a sweet deal at $299k. No work is needed, this house has newer applicances and a newer roof sitting right on the Meadow’s Golf Course.

Deal 3

List Price: Nobody knows yet, absolute auction, set your own price!
Square Feet: Ranges from 1,069 to 3,019
Price/SqFt: Mystery!
1 to 3 bed condos, 3 & 4 bed townhomes
Brand new, never been lived in.
This is a rare opportunity to get into a very nice brand new condo or townhome in an awesome resort community for a very great price. 100 condos are selling absolute on Saturday May 16, 2009 at 12 noon onsite and they are sure to bring a great price. Just to give you an idea for what has sold in the past at auction, The Towne of Seahaven, Origin sold on average for around $160/foot in December. Seahaven is across the street from the beach. I can’t speculate here how much these will sell for, but I’d bet they’ll be a screamin deal. If you have any interest in bidding, give us a call and we’ll get you all set up.

Call us at 866-994-1770 to see these properties or for anything else you need regarding real estate in Panama City Beach.

Florida Real Estate Outlook for 2009

Are you the type of person who believes the glass is half full or the glass is half empty? If you think the glass is half empty, then you probably think that real estate in Florida is in the toilet. If you’re the positive type and believe just the opposite, you’re probably not listing to the national media who continue to bash the state of the market at every given opportunity. Don’t believe everything you hear! Real estate is local in nature, and we in Bay County are very blessed to have many factors working in our favor to turn this market around.

Real estate markets are, by nature, cyclical, and we happen to still be in a downturn. Take heart though; our real estate downtown began much earlier and was much steeper than many other parts of our fine country. As you know, we were helped by numerous events beyond anyone’s control (force majeure)…hurricanes, shark attacks, “flippers” (who are, buy the way, speculators, not investors). Reason, and historical data, both demonstrate that we should be nearing the end of a very ugly time to sell your home. When buyers ask me, “When do you think the market will reach bottom?”… my answer is always, “When you see it start to go back up.” You can no more try to time the real estate market than you can the stock market

Despite what you may hear on the media, people are still able to obtain loans for homes. They may be required to have more down payment money available and to have a good credit score, but there are banks and mortgage brokers lending money. And, if you are a veteran and can qualify for a VA loan, the time to buy is now. Also, don’t forget the first time home buyer credit, which is available as a $7,500 tax credit until the middle of 2009.

Although mortgage money is available if you qualify, right now, cash is king. As fast as investors fled from the market, savvy real estate investors have been dreaming of this time to return. The quintessential buyer’s market! Now is definitely the time when buyers get to pick and choose among the large inventory and can actually cashflow a property. For anyone who can buy right now, you should be looking. NOW! Opportunities abound, and there will be tremendous returns to those purchasing property right now. Remember, real estate is always meant for a long turn hold. The “flipping time” is gone with the wind. But real estate is tangible and REAL.

So, how’s that stock market treating you right now?