Denver Metro area foreclosure filings:
(Notice of Election & Demand)for the week of 7/22 - 7/28;
Adams County - 64 NEDs filed
Arapahoe County - 113 NEDs filed
Boulder County - 16 NEDs filed
Broomfield County - 4 NEDs filed
Denver County - 93 NEDs filed
Douglas County - 34 NEDs filed
Jefferson County - 67 NEDs filed
There were a total of 391 NEDs recorded during the past 7 days. The previous 7 day period had 458 NEDs filed.
*Information is deemed reliable but cannot be guaranteed. All information is available from public records.
Thursday, July 29, 2010
Tuesday, July 27, 2010
Short Sales - How to deal with Bank of America
If you are looking at a Bank of America short sale, there are certain things you must be aware of.
1) The receive thousands of short sale file requests each week from distressed property sellers.
2) They are severely understaffed.
3) They are notorious for losing documents. It is ESSENTIAL to verify they have received documents and confirm what they have received.
4) They recently introduced a new short sale processing system through a system called Equator. Equator has helped to streamline the short sale process for Bank of America. While it has helped, they still are slow to process.
5) Did I mention they are behind on processing and the files take several months to be completed.
The bottom line, short sales are a long and cumbersome process. Bank of America is a little slower than most of the other banks. It is understandable with the HUGE amount of requests why they take just a little bit longer.
If you need more information about the short sale process please visit http://www.my5280homes.com and click on the Short Sale Specialty tab. 5280 Homes is a short sale negotiation expert and with the experience to help both buyers and sellers complete the short sale transaction.
1) The receive thousands of short sale file requests each week from distressed property sellers.
2) They are severely understaffed.
3) They are notorious for losing documents. It is ESSENTIAL to verify they have received documents and confirm what they have received.
4) They recently introduced a new short sale processing system through a system called Equator. Equator has helped to streamline the short sale process for Bank of America. While it has helped, they still are slow to process.
5) Did I mention they are behind on processing and the files take several months to be completed.
The bottom line, short sales are a long and cumbersome process. Bank of America is a little slower than most of the other banks. It is understandable with the HUGE amount of requests why they take just a little bit longer.
If you need more information about the short sale process please visit http://www.my5280homes.com and click on the Short Sale Specialty tab. 5280 Homes is a short sale negotiation expert and with the experience to help both buyers and sellers complete the short sale transaction.
Monday, July 26, 2010
Why short sales are good for banks
As we are entering into possibly another downturn in the real estate market, it's more important than ever to understand why a "short sale" may be in the banks best interest.
First and foremost, the foreclosure process is expensive. An example of some of the fees the bank will incur during the foreclosure include:
- Legal fees
- Property acquisition fees
- Clean up fees
- Property maintenance fees
- Appraisal fees
- Real estate agent fees
- Property settlement fees
- Loss of home value because the bank has taken possession of it
These costs can often sky-rocket to 10s of thousands of dollars.
The next reason why banks may accept a short sale is to get a "bad" loan off of the books and take the write off. Bad loans go against a banks balance sheet and to many of them scare investors away. While not 100% of short sales are going to be approved, the banks actively want to approve short sales and are willing to work with most borrowers who are not able to modify or catch up their loans.
The third reason why banks accept short sales is because homeowners in foreclosure don't keep up with maintenance on their homes. This lack of maintenance and the very real possibility of extensive damage being done to the home after a foreclosure can cost banks in excess of 20% to 30% of the home's value.
In a soft market like the one we are experiencing, it is often in the banks best interest to move the asset without completing the foreclosure process. Ever deal is a different but often times the bank ends up losing LESS money by approving a short sale.
First and foremost, the foreclosure process is expensive. An example of some of the fees the bank will incur during the foreclosure include:
- Legal fees
- Property acquisition fees
- Clean up fees
- Property maintenance fees
- Appraisal fees
- Real estate agent fees
- Property settlement fees
- Loss of home value because the bank has taken possession of it
These costs can often sky-rocket to 10s of thousands of dollars.
The next reason why banks may accept a short sale is to get a "bad" loan off of the books and take the write off. Bad loans go against a banks balance sheet and to many of them scare investors away. While not 100% of short sales are going to be approved, the banks actively want to approve short sales and are willing to work with most borrowers who are not able to modify or catch up their loans.
The third reason why banks accept short sales is because homeowners in foreclosure don't keep up with maintenance on their homes. This lack of maintenance and the very real possibility of extensive damage being done to the home after a foreclosure can cost banks in excess of 20% to 30% of the home's value.
In a soft market like the one we are experiencing, it is often in the banks best interest to move the asset without completing the foreclosure process. Ever deal is a different but often times the bank ends up losing LESS money by approving a short sale.
Wednesday, July 21, 2010
Short Sales - For Buyers
Short sales are a reality for thousands of buyers in the Denver area market. As discussed in previous articles, getting a short sale approved is a long and cumbersome process. There are many pros and cons to purchasing a short sale.
Some of the pros are:
-Buying a house below market value
-Extended wait time for approval scares lots of buyers away so there is less competition for the homes
-Being able to get sweat equity in a home that needs a little bit of work.
Some of the cons:
-Extended wait time for approval
-The sale is not guaranteed to happen
-The bank may counter offer back at a MUCH higher price than the accepted offer between buyer and seller
What can a buyer to ensure the best chance for successfully closing a short sale deal?
1) Ensure you are working with a CERTIFIED DISTRESSED PROPERTY EXPERT. If the sellers agent is not a CDPE, then make sure your buyer's agent is and ask for your agent to negotiate directly with the bank.
2) Make sure you fully understand the Short Sale Disclosure form. There is a paragraph which allows the seller to accept multiple offers. If you want to be the only offer the bank reviews, ensure your contract is written to indicate that.
3) Ensure the negotiating agent is following up with the lenders on a consistent basis and get weekly updates. Good agents will readily provide you the information.
5280 Homes is a short sale expert and we love to help both buyers and sellers complete short sale transactions. Ben Grisinger is a CDPE and has the experience to give you the best chance of success.
If you have more short sale questions, be sure to visit http://www.my5280homes.com and click on the 'Short Sale Specialty' link. If you are interested in buying a short sale, you can search for only short sale properties on the website.
Some of the pros are:
-Buying a house below market value
-Extended wait time for approval scares lots of buyers away so there is less competition for the homes
-Being able to get sweat equity in a home that needs a little bit of work.
Some of the cons:
-Extended wait time for approval
-The sale is not guaranteed to happen
-The bank may counter offer back at a MUCH higher price than the accepted offer between buyer and seller
What can a buyer to ensure the best chance for successfully closing a short sale deal?
1) Ensure you are working with a CERTIFIED DISTRESSED PROPERTY EXPERT. If the sellers agent is not a CDPE, then make sure your buyer's agent is and ask for your agent to negotiate directly with the bank.
2) Make sure you fully understand the Short Sale Disclosure form. There is a paragraph which allows the seller to accept multiple offers. If you want to be the only offer the bank reviews, ensure your contract is written to indicate that.
3) Ensure the negotiating agent is following up with the lenders on a consistent basis and get weekly updates. Good agents will readily provide you the information.
5280 Homes is a short sale expert and we love to help both buyers and sellers complete short sale transactions. Ben Grisinger is a CDPE and has the experience to give you the best chance of success.
If you have more short sale questions, be sure to visit http://www.my5280homes.com and click on the 'Short Sale Specialty' link. If you are interested in buying a short sale, you can search for only short sale properties on the website.
Tuesday, July 20, 2010
Denver Area Short Sales - Seller Information
If you are a seller who is in financial distress and may be facing foreclosure (whether you are in it now or will be soon), a short sale may be an alternative. Here are few items you need to be aware of:
- Your credit will be damaged by a short sale, though it will likely not be as damaging as a foreclosure.
- Short sales take time to process and they are very complicated transactions. They often take 3 months or longer to negotiate with the bank(s). You NEED to have a professional helping you complete the short sale.
- You MUST be able to document a financial hardship for the bank to consider your short sale.
- You will need to be prepared to provide all of your financial documents to the lenders for review. This will include two years of tax returns, recent bank statement, verification of assets, a full and complete monthly budget, recent pay stubs, any monetary award letters (e.g. Social Security benefits, VA benefits, unemployment)
-If you are using a professional like 5280 Homes, you will have to sign an Information Release Authorization so we can help negotiate.
-You will need to list your home and allow potential buyers to visit during reasonable hours.
- The difference between what the bank receives and what you owed on the house may become taxable income. You will want to get advice from a tax professional to discuss how this might affect you.
If you have additional short sale questions, please visit http://www.my5280homes.com and click on the 'Short Sale Specialty" tab. 5280 Homes is a short sale negotiation expert and we can help you navigate through the short sale maze and help you avoid foreclosure.
- Your credit will be damaged by a short sale, though it will likely not be as damaging as a foreclosure.
- Short sales take time to process and they are very complicated transactions. They often take 3 months or longer to negotiate with the bank(s). You NEED to have a professional helping you complete the short sale.
- You MUST be able to document a financial hardship for the bank to consider your short sale.
- You will need to be prepared to provide all of your financial documents to the lenders for review. This will include two years of tax returns, recent bank statement, verification of assets, a full and complete monthly budget, recent pay stubs, any monetary award letters (e.g. Social Security benefits, VA benefits, unemployment)
-If you are using a professional like 5280 Homes, you will have to sign an Information Release Authorization so we can help negotiate.
-You will need to list your home and allow potential buyers to visit during reasonable hours.
- The difference between what the bank receives and what you owed on the house may become taxable income. You will want to get advice from a tax professional to discuss how this might affect you.
If you have additional short sale questions, please visit http://www.my5280homes.com and click on the 'Short Sale Specialty" tab. 5280 Homes is a short sale negotiation expert and we can help you navigate through the short sale maze and help you avoid foreclosure.
Monday, July 19, 2010
Denver area short sale information
In yesterday's blog article, I gave a very brief definition of what a short sale is. The focus of today's article will be to discuss who qualifies for a short sale.
A short sale is an alternative to foreclosure for many homeowners. It is a last resort to be used if the seller is unable to modify the terms of his or her loan and does not have the ability to continue making payments.
The seller will have to show some type of "hardship". Often, this is loss of employment, divorce, death, serious medical conditions, etc. The lender will want a detailed explanation about the sellers personal circumstances to make a decision on approving the short sale.
A short sale IS NOT intended for borrowers who are eligible for loan modifications or who are capable of making payments but have chosen to stop doing so.
If you want additional short sale information, please visit our website at http://www.my5280homes.com and click on the "Short Sale Specialty" tab.
A short sale is an alternative to foreclosure for many homeowners. It is a last resort to be used if the seller is unable to modify the terms of his or her loan and does not have the ability to continue making payments.
The seller will have to show some type of "hardship". Often, this is loss of employment, divorce, death, serious medical conditions, etc. The lender will want a detailed explanation about the sellers personal circumstances to make a decision on approving the short sale.
A short sale IS NOT intended for borrowers who are eligible for loan modifications or who are capable of making payments but have chosen to stop doing so.
If you want additional short sale information, please visit our website at http://www.my5280homes.com and click on the "Short Sale Specialty" tab.
Sunday, July 18, 2010
Short Sale Properties
Over the next few days, I'm going to be going over the different aspects of buying and selling short sale properties. Today, I am going to focus on a question I get a lot: What is a short sale?
In Colorado, a short sale is a LENDER approved transaction where the lender agrees to take less than the full payoff amount to release a deed of trust (often referred to as a mortgage).
If you would like more short sale information, be sure to check out the "Short Sale Specialty" on my website at http://www.my5280homes.com.
Look for tomorrows short blog article about who qualifies for a short sale.
In Colorado, a short sale is a LENDER approved transaction where the lender agrees to take less than the full payoff amount to release a deed of trust (often referred to as a mortgage).
If you would like more short sale information, be sure to check out the "Short Sale Specialty" on my website at http://www.my5280homes.com.
Look for tomorrows short blog article about who qualifies for a short sale.
Friday, July 16, 2010
5280 Homes has earned the CDPE Designation
Did you know, Ben Grisinger, Managing Broker, of 5280 Homes earned the Certified Distressed Property Expert Designation? 5280 Homes specializes in helping clients purchase foreclosure properties. We also specialize in assisting sellers who are upside on their mortgage complete a short sale if they are no longer able to keep up the payments.
The foreclosure and short sale markets are likely the fastest growing segments in the Denver real estate market and it is imperative an agent who understands how to navigate the complexities of foreclosure and short sale properties.
If you are in the market to buy a foreclosure or short sale property give 5280 Homes a try. If you are in financial trouble let the 5280 Homes help you complete a short sale on your home.
The foreclosure and short sale markets are likely the fastest growing segments in the Denver real estate market and it is imperative an agent who understands how to navigate the complexities of foreclosure and short sale properties.
If you are in the market to buy a foreclosure or short sale property give 5280 Homes a try. If you are in financial trouble let the 5280 Homes help you complete a short sale on your home.
Thursday, May 20, 2010
It's been way to long
It's been way to long since I have blogged, but I wanted to provide some updates. As expected, the tax credit ended on 4/30/2010 and sales in May will definitely struggle. However, the market hasn't completely seized and 5280 Homes continues to have new visitors to the website and interested buyers. With extremely low interest rates and a lot of inventory, it is still a great time to get into the market. There are buyer's for entry level homes and motivated sellers for step up buyers.
Check back in the next few days for a complete update of market statistics.
Check back in the next few days for a complete update of market statistics.
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