Making Sense of Short Sales and REO Listings - Think RE*Link: San Gabriel Valley Real Estate

Posted by | December 24, 2009 | News | 2 Comments

The 1,2,3′s of Foreclosed Homes

1. What to do on the Short Sale Listing Side:

a. When you first start to have trouble making your payments, consult a real estate professional & your CPA  (1099) www.irs.gov
b. Start gathering information for your Hardship Package: Hardship Letter, Tax Returns, Paystubs & Financials, Executed Purchase Contract
c. The benefit is that a short sale is much better on your credit than a foreclosure.  A short sale is like a “charge off” because you are negotiating with the bank to settle your debt
d. Be careful about loan modification companies (DRE Approved) www.dre.ca.gov

2. What to expect when purchasing a short sale property:

a. Short Sales are actually “Long Sales” (Banks are short staffed and the underwriters have an average of over 250+ files each (average time frame to close escrow: 2 – 6 months)
b. Properties usually have a lot of deferred maintenance due to seller’s hardship
c. Always put a “drop dead date” on your offers (Short Sale Addendum)
d. Most Important:  Short Sales are Subject to Lender Approval!

3. What to expect when purchasing an REO property:

a. Buyer agrees to the condition… As is (deferred maintenance or fixed up)
b. Paragraph 14 taken out (passive contingency removal)
c. Shortened contingency period 7 – 12 Days (Do your inspections early!)
d. Most banks have a per diem of $100 dollars a day for every day you go past the close of escrow (so work with a professional who is on top of things or it could cost you!)
e. Limited Disclosures (REO Advisory) because the bank has never lived in the property

For more information please contact:

Ryan Asao (626) 253.4557
Not Just Another Realtor. A Friend For LIFE!

About Ryan Asao

Ryan Asao is a Monrovia real estate agent and founder of Think RE*Link. Ryan currently serves as President of his local BNI and Toastmasters chapter and is a board member of the National Association of Hispanic Real Estate Professionals - MSELA Chapter and Mt. San Antonio College Foundation. He is also President Emeritus of the Arcadia Association of Realtors. When he's not working, Ryan is deeply involved with the activities of his family, volunteering with local schools and soccer organizations.

2 Comments

  • Harsha says:

    Great info and right on point. My Google Local Business Listing was created autimaotcally because my website was out before they launched this program. However, once I discovered it I did go in and add more content + videos. I would highly recommend that anyone with a business take advantage of this free Google program.

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