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http://listings.listhub.net/pages/DAARMN/143471/?channel=trulia

I think my realtor has done okay with the "traditional" marketing of my home, he's just a little unfamiliar with the "new" things like using more advanced web marketing. He also tells me that he speaks to other agents who are holding open houses, and they are also getting zero traffic. The market here is terrible. - Tue Nov 11 2008, 09:02

My realtor brought over some comparables a few weeks ago... 4 houses in the area sold in the last month, 3 of them were between $50K & $75K, those were 2 bed/1 bath. My house is listed in the low $110's, and is a 3 bed/2 bath. The 4th house on that list sold for much more (around $140K I think) and was a 3 bed, but it had a "lake view" (which generates big bucks around here), however it had been on the market for over a year and was originally listed for close to $200K. See what I mean about comparables are difficult? There just aren't many 3bd/2ba homes in the area, so how can I compare sale prices?

Another thing-the local banks around here ARE lending. They are not subject to the strict policies of the big national banks. But the media is just making it worse by saying how hard it is to get a loan. I honestly don't think sellers are even trying!

And a third thing-there are several down payment assist programs in the area (grant funds for $2000-$4000), some for certain neighborhoods (mine included), some for employees of certain local employers, some income-based and some not, and some for certain persons (persons of color). I know about them, but how do I encourage potential buyers to apply for them? - Tue Nov 11 2008, 07:52

(Question, continued-ran our of space above)
Plusses (things in my control): We de-cluttered and fixed up, prior to listing. I staged and re-photographed the home, at the advice of a third-party with a real estate background. We have a “unique” home in the neighborhood, it’s been updated more than most, it has a 2 car garage (most have none), it has 2 bathrooms (most have 1). We are listed with a national realty company, with exposure on both local and national web sites, as well as the local MLS, and good local newspaper coverage. I post my home on Craigslist every couple of days too. I’m listed on both Trulia and Zillow.

Minuses (things I can not change): The neighborhood has a “stigma” of being undesirable (low income rentals, crime, etc.), but is really variable block to block. I moved here from out of state and didn’t know (or care) about local attitudes, and never knew that the name of the neighborhood would have such an impact on people’s opinions. The city has a weird rental ordinance forbidding any new rental licenses on a property within 300 feet of another licensed rental (it’s about 3 miles from a college area, the city thinks they’re preventing rowdy college parties or something), and of course there are licensed rentals on my block. Homes that are selling in the area are all “fixer-uppers”, being sold for a bargain because they need a ton of work. This is driving the comparables in the area way down. My realtor claims that it’s just the economy. He personally has only 2 buying clients right now, and they are both looking in a price range about half of what mine is listed for. My realtor is also somewhat new in the business (less than 5 years), but he has lived in the area his whole life (I chose him because he is a relative of a co-worker).

So now what? First and foremost, I am not behind on my payments. I have a lot of credit available (and almost no unsecured debt), so I could probably get by for a while on borrowed money (not that I want to). I am just looking for options and ideas.

Short sale? I can’t exactly claim “hardship” and try a short-sale because I chose to build a new house in a weak economy. Can I list it for less than what it’s worth and make up the difference in cash (savings, gifts, etc.)? Is that even considered a short sale? I don’t qualify for any of the government “rescue” programs because I own another home (trust me, I’ve searched).

Deed in lieu of foreclosure? I’ve gotten over the fact that I won’t make any money on this house. I just want to be done with it. However, I don’t have any idea how to proceed with such a transaction.

Rental? I can’t legally rent it, and even if I could get a license, I have a 15 year mortgage so I would have to charge $1100 for rent to cover my payments, when most homes in the area of similar size would rent for about $700-$800. What are the ramifications of renting without a license? Landlord jail? Fine me for money I don’t have?

New Realtor? My listing expires in mid-December. Do I shop for a new realtor? How do I get a “good” one? Where can I get data on realtors who have worked the area for a long time and use the most advanced marketing strategies (i.e. internet, my current realtor seems to be somewhat technology-impaired)?

We Buy Houses? Do I try one of these slippery-sounding “we buy houses” organizations (most won’t talk to me until my listing expires)?

Owner Financing? That seems to be all the rage lately, but it seems very risky. I have a “non-assumable” mortgage, can I even consider owner financing? What kind of person wants to assume my “expensive” 15 year mortgage anyway?

What are my options? I have a little bit of savings (about 4 months worth of mortgage payments for the “old” house), what do I do when that runs out? I have excellent credit and would hate to ruin it. - Mon Nov 10 2008, 14:14

Interesting twist... I asked a LOT of questions, and the person I was working with said he hadn't had a chance to actually run my numbers yet, and he would get back to me. That was 2 weeks ago. I guess I scared him off! - Fri Oct 31 2008, 12:26

Hi, home seller here again. Thanks for all of your responses, any bit of advice helps. Here's a little bit more information. I had a conversation with the organization in question, and although they spoke in only general terms (they haven't had a chance to "run the numbers" officially yet), they answered some of my questions.

My mortgage does have a "due on sale" clause, I checked. I mentioned this to "Joe" (the person I have been speaking with), and he said that they work with these all the time, and the process involves "putting the home into a trust" and transferring that way. He said "everything is fine and legal" and "we do this all the time". Big red flag for me there. It's getting into "legal-eeeze" that I no longer can follow. I hate to spend the money on an attorney, but I guess it's the right thing to do if I want to protect myself. I have not mentioned any of this to my Realtor yet. Do Realtors have any training or information about this kind of legal stuff? I am guessing not.

So according to my conversation with Joe, it works like this: Joe's organization finds "good people who have fallen on bad times," who need housing. They get them into a house (like mine), charging these people "rent", on a rent-to-own plan, which equals about $100 more than the mortgage payment (therefore Joe makes $100/month on these people). These people agree to pay Joe's company, for example, $130,000 for this house they are currently living in and renting. Joe agrees to pay me $120,000 for the house. Joe's company works with these people to help them clean up their credit, then works with lenders to get them some "traditional" financing. When the people get their financing and buy the house from Joe, he makes his $10,000 and pays off my mortgage. At that time I get a check for the equity in my home (this process could take years, as you can imagine).

This sounds "too good to be true". I have already resigned the fact that I won't be getting a big fat check when I sell my house, if I have to keep dropping the price in this depressed market. But, I have a 15 year mortgage currently, and I "earn" about $500 every month in equity. If this process takes a year, that's $6000 more in equity, or less I owe, on my mortgage. Assuming I can live without my equity right now (which I can), this seems to be an outstanding option for me. The longer it takes, the more profit I make, as someone else pays down my mortgage. What am I missing, because this is just too easy.

And Keith, I am, if you read my original post, already represented by a Realtor. My home is listed in the Duluth Area Associaton of Realtors MLS, on the local and national Coldwell Banker websites (as well as Trulia and Zillow), in the local newspaper on the front cover of the Homes section every week, and my Realtor holds open houses at least twice a month. It is TOTALLY listed. I ended up speaking with "Joe" by searching on-line trying to find help with my situation (i.e. I own two homes right now).

According to the Better Business Bureau, the organization has been in business since November 2005, and
"based on BBB files, this company has a satisfactory record, does not have an unusual volume of complaints, or any government actions involving its marketplace conduct. The BBB understands and has no concerns about the company's products, services and type of business. The BBB processed a total of 0 complaints about this company in the last 36 months, our standard reporting period." That's mildly reassurring.

Any other bits of insight? - Mon Oct 20 2008, 14:22

Hi, this is the home seller again. I have been reading about "mortgage assumption", which is what I think is the suggestion here. It is perfectly legal, in certain cases. According to what I have read, my mortgage (which is not an FHA or VA), is probably NOT assumable (although I will have to go find it and check the fine print to be sure). The information out there says that if my mortgage has a "due on sale" clause, it means that if I try to do this "under the table", without telling my lender, then the lender can demand payment in full when they find out.

I have also read that some lenders will sign a "Assumption Agreement of Deed of Trust and Release of Original Mortgagors contract", whereby the new purchasers of the property (i.e. this mystery organization) assumes and agrees to pay the debt to the lender, and the lender releases the original mortgagors (i.e. me and my husband) from any future liability on the loan.

I would love to hear some feedback from lenders out there, or realtors with experience in assumed mortgages. Is this a good idea for a seller, assuming the offer from this organization is a reasonable one? It will be the only offer thus far on my property. I really NEED to sell this house soon.

For what it's worth, my payments are current, I am not in foreclosure, and I can afford to wait a month or two (but not much longer) to make a decision. - Fri Oct 17 2008, 12:14

Hi, it's me, the homeowner again. First, Scott, isn't getting information from another broker some kind of breech of contract with my current agent? My agent shows me information about other homes in the area, but like I mentioned before, comparables are hard to come by, because there are not very many 3 bed/2 bath/2 car garage homes in the area, and if there are, they aren't in good move-in condition like mine is.

Second, Kim, my realtor works for Coldwell Banker, so my house is in the Duluth Area Association of Realtors MLS and on the local CB website as well as the national CB website. It's in the local newspaper every week on the front page of the Homes section. And with this sales campaign, it's also being advertised (not my house specifically, but the 10 day sales event) on the radio and TV. I have put up flyers at my workplace, I have put ads on craigs list. I seriously don't know what else to do.

I am looking for ideas to put into the listing, like "seller will pay xxx costs", but I don't know what that would be. What are the current trends? Cash toward down payments? Paying certain fees? Sorry Scott, but "a year's worth of heat" is just too ambiguous for me. I'd rather give a known lump sum determined up front, but I don't know how to do that.

What about these "real estate investors" who claim to take over the payments until they can get the home sold? Is it a scam, or something to consider? - Thu Oct 16 2008, 14:27