Archive for tag Short sale
August 17, 2011 at 10:24 AM · Posted under Pat Tasker
When considering a Short Sale or Foreclosure, there are more consequences to consider than just the effect on your credit! For example if you hold a government security clearance for a military, CIA or police position, that clearance will be revoked.
Current and future employers monitor your credit scores, and a short sale can cause a reassignment or termination.
A deficiency judgement can be placed against you for the amount of the shortage, or deficiency after a foreclosure, leaving you on the hook for that amount in the future.
According to the Distressed Property Institute here is a chart outlining the issues and effects of shortsales and foreclosures. Please the click the chart below to enlarge.
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| Credit: Distressed Property Institute |
If you find your family having a hard time making the house payment, it might be time to talk about your options. How to relieve the stress and hardship and keep your financial standing in the best possible position. Call me to confidentially discuss your options! I can be reached by phone or text at 414-588-4907 or .
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Pat Tasker
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March 10, 2011 at 04:55 AM · Posted under Pat Tasker
2010 is a year that will have a lot of highlights, in real estate it was the year that Short Sales and Foreclosures were as much as 30% of our market. Those two terms are very popular, but sometimes misunderstood. Once I had a buyer ask why they call them "short" sales, when it takes so LONG to get to closing!
Many are still not exactly sure what is the difference between a short sale and a foreclosure. Both are challenging transactions both for buyers and sellers, and no question, both take a lot of patience to get to closing.
The main difference is who actually owns the home. In a short sale, the owner is a real person, mr or mrs "smith," while in a foreclosure the owner is the bank, who took the home back in a foreclosure action.
SHORT SALES are situations where an owner must sell their home, and the amount they owe on mortgages is more than the amount they can sell the home for in the current market. A short sale is only attainable, if the current owner is suffering a hardship that requires a sale. Hardships include: divorce, loss of job/income, or death of an spouse. A short sale is not necessarily a "deal" or a great buy, it is normally the market value; unfortunately the owner owes more than what that market value is, at this point in time. Once an offer is accepted, it can take anywhere from 1-12 months to close. It all depends on who the bank is, and how far the sellers and the bank have gotten through the short sale approval process.
FORECLOSURES are properties that are owned by the bank. They were in foreclosure, and after the proper timing and procedures the home was sold in a sheriff sale in order to pay off the current mortgage. The home then goes on the market as an "REO" or Real Estate Owned by the bank. There is an asking price, and once an offer is accepted, it takes 2-4 weeks to get to closing. I had some great tips on buying a foreclosure in a prior post.
It takes an extreme amount of patience to buy either type of distressed properties. A recent buyer, Meg & Tim Zei have this to say about their recent foreclosure purchase: "I wanted to walk away more than once. Once you make the decision that you CAN walk away if you need to, it's much easier to sleep at night."
If you are looking for a new home and considering a short sale or foreclosure property, call me for a list of 11 tips on getting to closing.
Posted by: Pat Tasker
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April 16, 2009 at 03:29 PM · Posted under Colleen Kuchta
A short sale in Real Estate happens when the owner of the property owes more on the property than what it sells for. This can happen when a home owner sells after property values have dropped drastically, or when an owner has taken out equity loans on top of the mortgage loans and the loans equal more than the value of the home.
Generally speaking, it will depend on your lender. Before you proceed with a short sale, you would be well advised to call them to find out how they structure and release the short sale.
As well as, how are they going to report the payoff? A short sale can reduce your credit score between 60-100 points, but there have been times when the short sale does not affect your credit score negatively at all. (A foreclosure would be a minimum of a 150 point deduction) This of course will depend on your specific situation. For example, a seller that has missed recent payments and is doing the short sale to avoid a foreclosure would take a bigger hit than the seller that is current on their mortgage, but property values have decreased so they are unable to sell the property for what they owe.
If you decide to sell, and are facing a short sale/foreclosure situation, be sure that the agent you select to list your home has experience in dealing with short sales. 
Each bank has their own requirements. The Kuchta’s - Kelly & Colleen are very familiar with the short sale process/foreclosure process and have helped many sellers, as well as buyers with their transaction. Feel free to contact us for a no obligation, consultation 262-894-6512, or ckuchta@shorewest.com. We are here to help.
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Colleen Kuchta
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April 10, 2009 at 09:42 AM · Posted under Colleen Kuchta
Friends of ours recently lost their home to foreclosure. We can’t help but ask ourselves ‘How and why did this happen?’
As Realtors, we know that, in most cases a foreclosure can be avoided.
We have experience in negotiating with banks to help home owners avoid a foreclosure. If you are feeling overwhelmed, or can’t keep up with your mortgage; please contact us; The Kuchta’s - Kelly & Colleen. We are happy to help. As always, there is no obligation to use our services. Our advice is free and confidential. ckuchta@shorewest.com or (262)894-6512.
A short sale in Real Estate occurs when the owner of the property owes more on the property than what it sells for. This can happen when a home owner sells after property values have dropped drastically, or when an owner has taken out equity loans on top of the mortgage loans and the loans equal more than the value of the home.
Before you proceed with a short sale, the first step would be to contact your lender and find out what their requirements are for the short sale package. Most commonly, you will be required to complete a financial worksheet and compose a hardship letter explaining why you are not able to pay the balance you owe in full. There is also an authorization letter that you will need to supply, allowing us to communicate with the bank on your behalf. In many cases, commission will be negotiated by the bank as well.
If you decide to sell, and are facing a short sale/foreclosure situation, be sure that the agent you select to list your home has experience in dealing with short sales. Each bank has their own requirements. Kelly & I are very familiar with the short sale process/foreclosure process and have helped many sellers, as well as buyers. Feel free to contact us for a no obligation, consultation.
If you have a question that you would like answered, drop us, The Kuchta’s, Kelly & Colleen, a line.
We are here to help. We are easily reached at (262) 894-6512 or by email: ckuchta@shorewest.com,.
The Kuchta’s, Kelly & Colleen
Posted By:
Colleen Kuchta
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