This is the percentage difference between what a home was listed for vs. what it sold for. For example, a home listed at $150,000 sold for $145,000. The ratio is 96.7% or the home sold for 96.7% of it's asking price.... more
I believe what you are refering to is what is known as a land contract. The terms of a land contract are negotiated between the buyer and the seller. The terms of the land contract are usually not affected by the market going up or down. The only thing difference between a land contract and conventional forms of financing is the property is being financed by the seller as opposed to a bank, credit union, etc.. If you purchase a property under land contract, you have a set price, a set payment, a set interest rate and a set length of time for the contract. The value of the property may change but the terms of the contract don't.
There is , of course, a direct correlation between the value of the property and the owner's equity. If the property drops in value, the owner has less equity. If it drops far enough, the owner may not have any equity at all. If you would like to discuss this further, please feel free to call me at 920-655-8468 or email me at email@example.com.
I hope this answers your questions. Take care.... more
You have signed a contract and if the buyers have performed what they were supposed to do and you don't, they can hold you to the contract.
They can actually file and action that puts a cloud on the title called a Lis Pendens. What that means to you is that you cannot sell the property until the dispute has been resolved.
I suggest you consult an attorney!... more
Sorry to mhear about you lender issues. A lot of lenders today are happy to work with you...it is xheaper than foreclosing on a home. Who is your lender? If it is a major one, I may be able to give you a contact....you should be able to do a loanmod yourself....don't pay an outside service.
Call a Realtor or several in your area and ask your questions. You will pay Realtor fees when you sell but also don't forget title insurance for the buyer, possible state and local taxes on the sale, Most Realtors can give you an Approximate Proceeds estimate that will list all the seller costs so that you will have a good idea what you will have available. Also ask for buyer closing costs, however, so that you will not misjudge what price home you can purchase. Most home prices have been falling in the past several years, so it is a good time to purchase if you have the profit from the sale of your current home and additional savings. Please be careful that you have additional savings that you will leave in savings, however, for emergencies. It is never a good idea to have every penny wrapped up in real estate or any other investment for that matter. Generally financial advisors suggest from 6 to 12 months living expenses in savings whenever possible. Good luck to you.... more
The $64,000 question:
The first step is to make sure that the agent representing you is an expert in short sale contracts . The majority of all short sale offers fail to close because the agents on either side of the deal lacked the training and the experience to successfully negotiate the deal. It also fair for you to have your agent inquire about the listing agents training and experience in this area.
Most of the time lending institutions will hire real estate agents to perform a BPO ( Broker Priced Opinion) to determine the value of a property. The problem is that most of the time these are drive by BPOs. The agent is paid between 50 and 100 dollars to drive by take a couple of pictures the compare it to other sold properties and competitive properties ( homes currently for sale). The secret is to control the BPO. An experienced Short Sale agent will complete their own BPO that includes an inspection of the interior and an estimated list of repairs that are needed and come up with a estimated value in the current market.
It is my experience that most lenders are looking to get 90% of the BPO. After costs and realtor fees this means the bank is taking between 18 and 20 % loss on the current market value.
Lastly make sure that you can prove to the lender you are ready to move fast and have the ability (money) to close this deal before they lose any more of their investors money. Another way to grab their attention is use the current lender for your financing. This makes it a win win for the bank.... more
Obviously every area is different as there are some areas that have had double digit growth over the past year. However, there are a few reasons why there is not going to be a buying frenzy. First, with all of these foreclosures and short sales, your buyer pool is much smaller than it used to be. Second, there are a lot of people that would like to buy a different home, but they need to sell their's first. Third, there is so much inventory out there right now that even if there was a buying frenzy, I'm not sure it would even put a dent in the amount of homes for sale b/c other's would see that and put their home's on the market. Fourth, even though interest rates have remained low, it is more difficult to qualify for a mortgage these days. Add that to people getting laid off and energy prices going through the roof and you could see why homes aren't selling so fast.... more
While I know this answer will not be what you want to hear....it is, in fact.....the way it is. It might be a week.....and you might not hear for well over a month. In isolated cases, I have heard of a bank responding upwards of 60 and 90 days.
It depends upon if there are other offers, how long the property has been on the market, if the sellers' hardship package is complete, or if the bank is requesting more info, how much lower the offer is compared to the payoff, and how many other short sales or REO properties the bank is attempting to sell.
I wish I could be specific for you.........
Your agent can find out if the sellers have been diligent in preparing a complete hardship package w/ all details, or if the bank is requesting more info. The bank will not be receptive to your inquiry. I wish I could tell you something more specific....Short sales require patience.... more
I would work on increasing my credit score. 100% percent financing with a credit score under 720 is next to impossible.
You might be able to get a FHA loan with your current credit score if you had a 3% down payment. Your best bet is to increase that credit score to work towards getting a good loan.... more