Do you really need a Real Estate agent to purchase a property?

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Do you think you can write an offer on a Cape Coral foreclosure for sale without the help of an agent? The answer is a big YES!

If you think about it, my guess is you want to save the typical 6% commission that we make. If it’s the case, you are completely mistaken. First, our commissions are not set to be 6%. It’s negotiable. And in the foreclosure and REO world, it’s the bank that decides how much they really want to pay. Most agents doing foreclosure make about 1 to 2% of the closed price as the seller representative. So the buyer’s agent is really doing something like 2 to 4%. In that case, if you represent yourself for that foreclosure home purchase, you’re really saving about those 2 to 4% commission.

Now, prepare yourself to get an accepted offer on that Cape Coral foreclosure house for sale. You will need a few things checked with the listing agent, and I have been in contact with most of them, they use to be very difficult if they are not in front of another agent because they think they’ll have to do all the work believing that you won’t be able to do your part:

  • What kind of paperwork do they want?  Typical is proof of funds, pre-approval letter from your bank, etc…
  • How many offers are on the property? Maybe it is a multiple offers situation already.
  • Is there a mandatory minimum MLS marketing time?
  • How do they want to receive your offer?  Fax, website or email.

So, once you have all that done, you’ll be able to put a good offer but you will need to know something important: the price. Don’t google that. You will not be able to rely on sites like Zillow or Trulia for pricing. They are not accurate. Hire an appraiser instead, especially if you do not have access to your local MLS. The point here is that you don’t want to pay too much or too little. Too much and you may overpay for the property and too little,you may lose the home to higher bidder.

You can also read this buying a foreclosure in Cape Coral post for more tips.

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Comments (0) Sep 26 2011

To be or not to be…a landlord? That’s the question.

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I read an interesting article in the Wall Street Journal yesterday about the renting market versus the owning market. While the scene is in California, this can be very similar here in SW Florida and especially in Cape Coral and Lehigh Acres.

Agustin Gutierrez, a construction worker from this town in the hills northeast of San Francisco Bay, lost his job in 2009, then, 10 months later, he lost ownership of his home.

Now, the husband and father of 4 rents the identical five-bedroom ranch from McKinley Capital Partners, an investment company that is at the forefront of a brand new breed of big-money landlords.
McKinley, which has acquired more than 300 foreclosed single-family houses in the Bay Area over the past two years, lately teamed up with Och-Ziff Capital Management Group LLC, a new York hedge fund, with plans to buy at least 500 more foreclosed houses in the subsequent year. Those homes, too, will probably be rented to people like the Gutierrez loved ones.

Acquiring foreclosed homes as investment properties has long been dominated by mom-and-pop investors. But now hedge funds, private-equity firms, pension funds and university endowments are dipping into that market place. The attraction is double-digit returns at a time when most bonds along with other income investments yield extremely small.

Essentially the most well-liked strategy is for a large investor to team up with a neighborhood organization that scouts out houses and finds the renters. The hope would be to flip the homes within the future when prices recover.

“It’s kind of the Wall Street meets Principal Street phenomenon,” says John Burns, an Irvine, Calif.-based real-estate consultant who has discussed investing in single-family rentals with hedge funds. “The Major Street guys need to have the capital, and Wall Street requirements the expertise.”

At the finish of May possibly, 3.five million loans had been at least 90 days delinquent or in foreclosure, based on investment bank Barclays Capital. In the very same time, the country’s house ownership rate has fallen, to 65.9% inside the second quarter of 2011 from its peak of 69.2% in 2004, based on figures released by the U.S. Census Bureau final month. That drop has produced millions of new renters and helped push the vacancy rate for rental housing down by about two percentage points, to 9.2%.

“The single-family rental market is truly very large,” said Dennis McGill, director of investigation at Zelman & Associates, a study firm that follows the housing market place. “The average American says, ‘If I’ve got two kids and a dog, I can’t live in a one-bedroom apartment.’”

Zelman lately issued a report saying that in Arizona, Florida and Nevada, states hard-hit by the foreclosure crisis, the number of families renting a single-family house increased 48% from 2005 to 2010.

Huge institutional investors could eventually help stabilize the marketplace by soaking up the huge overhang of foreclosures, which could allow housing to begin healing. However, the number of single-family houses being bought by institutional investors is still small compared to the millions of distressed properties. The biggest players in the industry are deploying hundreds of millions of dollars, not the billions necessary to make a major dent.

The federal government has a significant role as well. The Obama administration is currently considering ways of selling foreclosed houses to investors who agree to rent them out. Fannie Mae and Freddie Mac and the Federal Housing Administration own a lot more than half of all unsold foreclosed houses.

Being a landlord can be a costly hassle for significant investors. Unlike apartment complexes, which concentrate hundreds of rental units in one place, investors must obtain hundreds of single-family houses that are miles apart, each with separate maintenance problems. Tenants can be troublesome.

“You could have a bad tenant who doesn’t want to pay their rent, or maintain the pool,” says Guy Johnson, an investor who buys foreclosed properties in Nevada, Arizona and California and rents some of them out. “A hedge fund manager doesn’t want to have to be their own plumber or electrician.”

Purchasing foreclosed properties isn’t easy either. Investors sometimes have to pay thousands of dollars in “cash for keys” payments to the previous homeowners in order to entice them to leave the property, and foreclosed homeowners often damage their houses before they are evicted.

Private-equity giant Carlyle Group LLC tried its luck with the single-family property market two years ago but abandoned the strategy late last year after concluding that the returns weren’t big enough. Carlyle’s method was different. The organization formed partnerships with nearby asset managers in California that bought and flipped houses, rather than renting them.

For now, a lot more investors are plunging into the single-family rental marketplace. McKinley, the Oakland, Calif., business that owns Mr. Gutierrez’s house, has already begun to use Och-Ziff income to purchase houses. Its model would be to acquire houses at an average price of about $100,000 apiece, put between $10,000 and $25,000 in renovations into them, and set the rental rate of the house so that it produces a return of 8% to 12% annually. This often works out to a rent of roughly $1,200 per month.

McKinley and Och-Ziff could see additional returns from selling the houses at a higher price after a few years, once the market place has improved. “Two years ago no one thought you could scale this business or that it could be institutionalized,” stated Gregor Watson, a principal with McKinley. “Now, you can get extremely good yields. It’s a quite good long-term strategy.” He declined to comment on the Och-Ziff investment. Och-Ziff also declined to comment.

Other significant investors have formed rental-housing partnerships.

G8 Capital, a private-equity fund based in Ladera Ranch, Calif., has bought 3,000 houses across the country since 2008, mostly to flip them. It decided last year to begin pursuing a hold-and-rent technique. It has since bought 250 foreclosed houses as rentals. Carrington Property Services LLC, a Santa Ana, Calif.-based property investment business that manages about 4,500 houses nationally, is in talks with investors to raise funds for a real-estate investment trust, to be called Residential National Trust, which would acquire foreclosed houses for rental. The company plans to purchase as many as five,000 far more rental homes in markets including Chicago, Miami, Phoenix and Las Vegas.

Waypoint Genuine Estate Group, an Oakland, Calif.-based firm, has bought 700 houses within the past two years as rental properties. Doug Brien, a former place kicker for the New York Jets who is now managing director of Waypoint, says that his company has approached pension funds, university endowments and big private investment groups about investing in his fund. In July, he says he closed on a financing deal from an Ivy League university endowment, but declined to name the university.

“At some point, there is going to be a shortage of housing,” Mr. Brien mentioned. “Everyone is realizing that single-family buy-and-hold is the way to go.”

In November, hedge fund manager William Ackman’s Pershing Square Capital Management LP released a report arguing that single-family rental properties are an “under-owned asset class” that would make “an intelligent investment for institutional investors.” Pershing Square predicted that investing in single-family houses and holding them as rentals for 10 years could produce double-digit investment returns, even if U.S. residence costs only improved marginally.

All the activity is fueling a renewed debate over whether investors are good or bad for the housing industry. In the early days of the housing bust, some community groups discouraged banks from selling foreclosed houses to investors for fear they wouldn’t take proper care of the properties. Some communities riddled with foreclosed houses became slums.

Alan Mallach, a senior fellow with the Brookings Institution in Washington, argues that instead of running from investors, local governments should provide subsidies to investors who buy, rent out and are good landlords for foreclosed properties. “If a neighborhood has a high rate of residence ownership, that’s obviously better,” he stated. “But in some markets, there was so much inventory coming on the market place that the sheer number of properties was destabilizing those markets.”

Mr. Gutierrez, the Vallejo construction worker, now pays $1,800 a month in rent, compared to the $2,500 per month he was paying to cover the cost of his mortgage when he owned the house. He says it bothers him that he no longer owns his property, but is happy to pay less and says his new landlords are good property managers.

He bought the house in 2003 for $340,000 using a $322,700 loan. He refinanced the house 5 times, driving up the total amount of debt on the house to $400,000. He lost the house to foreclosure in 2009. McKinley paid about $155,000 for the house that year.

“It’s confusing, because sometimes I think it’s my house, but I have to remind myself that it’s not,” mentioned Mr. Gutierrez, who says he doesn’t plan to try to repurchase the house. “It’s sad, but it’s what happened to a lot of men and women.”

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Comments (0) Aug 06 2011

Foreclosures in Cape Coral, Florida : Get ready before to buy !

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Today I break two records since I have my Real Estate license, about 10 years ago now.

The first one is I made, so far, more offers than days in the month. We are Nov 18 and I made 19 offers so far.

The second one, and most important for me, the last offer passed the limit of the 10% higher than asking price. Last year, offers were about 2% to 5% below asking price for those foreclosures in Cape Coral. Last spring, they were about on the asking price. Since last summer, buyers had to go higher than asking price for any Cape Coral foreclosure. November and I had an offer at $301,000 for an asking price of $272,900

Now, what’s amazing is my client has been outbid! Someone offered an even higher price for a foreclosure. That’s a very good sign. We were in a buyer’s market and we are entering a very strong seller’s market.

Of course, everything is not lost. My clients are cash buyers and very motivated to buy. So tomorrow will be another offer for them. I’ll have to suggest to pass the 10% above asking bar though, but they know that already :-)

I often have newer buyers calling me about foreclosures in Cape Coral. When I explain that an offer at asking price or below is just not enough, some of them are a bit sceptical. Some believe I’m bluffing to get more commission, other will try another agent, just to hear what they want to hear. The remaining buyers will try several times below asking until frustration appears. Then, they will remember what I said and will try full asking price offers. Most of the time, if not every time, they will be outbid. Usually, the number of offers at asking price is lower than the previous offers at below asking price. They seems to understand faster. That’s when they hit the third level, and honestly, they can be frustrated as well.

  • - If you are interested to enter the Cape Coral foreclosure jungle these days, be prepared.
  • - If you need a loan, you are already in trouble but it’s not necessarily an impossible mission. Just get you loan paper works ready and handy. Your best chance will be to make an offer the very first day. However, you have 50% chance to be outbid by an all cash offer!
  • - If you try asking price or below, 99% chance you’ll be outbid. Don’t waste your time and start above asking price right away.
  • - If you are a cash buyer, make sure to have your solid proof of funds with you, in your pocket, ready to get it at anytime.


The prices of the foreclosures in Cape Coral, Florida, are increasing, little by little. The demand is there and starving for “good deals”. The best time to buy a foreclosure in Cape Coral was last year and winter-spring 2010. The market is rebounding and for those who didn’t catch the train will regret soon or later.

UPDATE:

Today is March 29, 2011 and I wanted to give some updates.
Last November, when I wrote this article, there were more than 1,000 foreclosures in Lee County. Today, there are only 389! That’s mean we are going forward the end of the foreclosure crisis. And, banks realize that they can get more money now for their properties. The good prices we saw in 2010 are not there in 2011. I hope you bought your foreclosures last year.

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Comments (3) Nov 19 2010

Heavy drop of foreclosure in Cape Coral, Florida

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I saw the big title in the newspaper today. There had been 656 foreclosure lawsuits filed in Lee County in October, the lowest range in a lot more than three years, according to statistics released Monday by the South West Florida Real Estate Investment Association.

It was a rare ray of hope in a grim situation: The Lee County and Cape Coral  foreclosure rate is normally within the top five metropolitan areas nationwide, with only Las Vegas consistently worse.

October’s variety is down 31 % from September’s 953. Yes, you read me: 31% less than the month before. The pace hasn’t been this slow since quite a long time.  555 had been filed in February 2007 as the wave of mortgage failures that followed the housing boom was just obtaining under way.

Experts stated that the decline likely was part of a long-term downward pattern — but that’s not all.

Foreclosures possibly plunged at least in aspect since for the past month, some banks have been holding off on foreclosures whilst they sort out issues including who truly owns the note and whether attorneys basically read all the paperwork, but the holding was only for 1 week and from 2 banks, including a major one though: Bank of America.

But the recent lender troubles alone couldn’t have caused a drop as sharp as October’s. Bankers “did knock some things out, but in the totality with the trend, no. 10 to 20 percent of your mortgages might be affected,” but not enough to account for the whole drop.

County Clerk of Court Charlie Green said that whatever the trigger, the downward pattern has helped whittle away at a daunting backlog of foreclosures within the court system: Public auctions disposing of properties are now outnumbering new filings.

Only about 14,700 cases are from the pipeline now, Green mentioned, down practically half from the 26,000 when the difficulty peaked at the end of 2008.

Still, he cautioned that there’s a substantial “shadow inventory” of houses that banks are selecting not to foreclose on. “I believe we’re clearing some out, but the banks are holding back.”

But we don’t really know how many far more. Next month will give us a better indication as to whether or not it was a normal trend or lenders stopping until they figure out what the issue with their process was.”

Also the pace of foreclosure doesn’t occur in a vacuum: if the winter tourist season is strong, it will reduce unemployment and keep far more people financially able to keep their homes, which is the case in South West Flroida, which include Cape Coral.

I think it will be only in April, May, June of next year that we’ll see how this season’s sales and the economic effect of your season influenced foreclosures.

A big builder in Cape Coral, stated that whatever the short-term pattern, foreclosures can’t sustain themselves at that pace. It’s going to sooner or later start slowing up. And I think it is happening right now.

Also, the issues with the foreclosure process have made some prospective buyers skittish about buying a previously mortgaged house.

However, while I find it easier to sell to prospective renters a house where owners are living in than a foreclosure, that  non distresses market has a hard time to compete with the foreclosures. Plus, new potential buyers have still a hard time to accept the fact that most of the time, there is a multiple offer situation on every foreclosed properties, ending by an accepted offer above the asking price. Often, those buyers go through a 3 step buying process. The first is the below asking price period where the buyer experience the frustration of being outbid. Then there is the full price offers period of time, which is usually shorter than the first one. Most of the time, the buyers learned their lessons and go the third period, the above asking price offers moment where they finally get a property under contract.

It’s now even more difficult with the decrease of the number of foreclosure and with a possible increase of pricing, even for foreclosures.

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Comments (0) Nov 02 2010

Lee County residents asking for higher assessment values

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Lee Home Appraiser Ken Wilkinson is used to fielding complaints from people who think their home assessments are too high.

After all, a increased assessment translates into greater taxes.

But what a difference the housing crash makes.

Now some individuals have a new complaint: “My assessment is too low.”

“Before two years ago, I never got a call,” Wilkinson said. “This year I got two calls. They wanted higher value since they needed to sell it.”

The News-Press also received calls from individuals upset about low assessments since Truth in Millage Notices were sent out with house values and tax rates last month.

Things changed when property values fell sharply right after the residential real estate boom ended in 2006 and commercial house followed suit two years later.

On this year’s county tax roll, as an example, of properties the use of which hasn’t changed, 459,226 went down in value (compared to 2009); only 36,716 went up; and 22,525 stayed the same.

But those who wish to promote or refinance aren’t all happy about the declining values.

“Our lot is appraised at $18,000? That’s insane,” mentioned certified public accountant Leslie D’Alessandro, who with her husband, Peter, has owned a three-bedroom, two-bath house in Caloosa Yacht & Racquet Club along the Caloosahatchee since 1999.

The value of their property on the notice sent out by Wilkinson’s office last week was $169,279, which Leslie D’Alessandro also considers a lowball figure. It’s down from $282,020 in 2009 and $390,730 in 2008.

“It concerns me as far as homeowners insurance,” she said. “How much is the replacement value?”

Refinancing the home also would be more difficult due to the fact of the low assessed value, D’Alessandro stated, and selling would be even harder.

“I’m just glad we don’t have to sell our house,” she mentioned.

Wilkinson mentioned his hands are tied. Even though house owners would pay more taxes if their home were adjusted up in worth, state law requires he assess everything equally.

The notices sent out by the home appraiser every August also are not intended to reflect current worth, he stated; they’re based on comparable sales no later than the end of the previous year.

They’re also more conservative than a private appraiser’s estimate, Wilkinson said. Sales costs are deducted from the total figure, for instance.

Mike Hagen, an attorney who handles home tax value appeals, stated he hasn’t been asked to get anyone’s home value higher. But he said that typically he’d advise someone making the request to leave well enough alone.

Insurance companies and banks deciding whether to refinance don’t rely on the property appraiser’s figures to make their calculations, Hagen mentioned.

A larger assessed worth would help only when trying to sell a house.

“There’s no question a potential buyer may look at the house appraiser system, see what their opinion is,” he said.

Bill Davis thinks his house value is too low but doesn’t blame the home appraiser.
Davis, a retired banker who lives in Marietta, Ga., owns a unit in the Renaissance condominium on Winkler Avenue.

Over the past three years his assessment has fallen from $133,000 in 2008 to $76,430 in 2009 and $22,200 this year.

His unit is worth more than that, Davis stated, but lenders who are dragging their feet on foreclosures keep the complex in limbo.

Dominic Calabro, president of the Tallahassee-based taxation watchdog group Florida Taxwatch, stated there’s some concern about overly low assessed worth by commercial property owners.

“They have a myriad of different loans to support the activity and they’re often leveraged,” he said. “It does (cause problems) in the sense that it can affect whether you have a net loss of worth: whether the banks will continue to renew loans for the appraised value.”

But generally, Calabro said, it’s a perfect storm of low house values and a difficult lending environment that has some people today in denial.

“Florida’s seen some house tax declines once every 30 or 40 years,” he said. “It’s just we haven’t seen the decline in value at the same time as tight money.”

One thing remains constant, he said.

“Property taxes are a lot like the weather: Men and women are never happy with them,” he stated.

If you need more info about Lee County properties, feel free to check the Cape Coral Real Estate website

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Comments (0) Sep 07 2010

Homes median price is up in Lee County, Florida

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March has show an increase of the number of homes sold by Realtors in the Greater Fort Myers area.
There were 11.2 percent more homes sold in March 2010 if compared with March 2009.
Realtors of Lee county have sold 1474 homes in March compared with 1326 in March 2009.
Single family pending homes rose by 22.3 percent month-to-month. However, the pending number is almost the same from March 2009 with  2063 for March 2010 and 2019 for March 2009.
As for the median price, it is at $90,000 for March 2010, 7.2% more than March 2009 and 5.9% from February 2010.
The record number of existing home sales in March is indicative of the continued demand for homes in Southwest Florida due to affordability and low interest rates. Buyers still tying to take advantage of the tax credit before the April 30 deadline need to act now as available inventories are rapidly being depleted and as a result, the median price rose $5,000 in the past 30 days.
There are currently 11,147 properties currently listed in the MLS, a number that is 4,138 (27.1%) less than  in March of last year.
Of these, 6,889 are single family homes, which is 28.7% lower than in March 2009, when 9,666 single family homes were in inventory.
The median price encompasses three types of properties: traditional, short sales and foreclosures. At the end of the first quarter of 2010, the median price for traditional properties rose $5,000 from $135,000 to $140,000; for foreclosure properties, the median price dropped $2,900 to $67,000; however, the median price for short sale properties dropped 10.5% to $85,000 from $94,950 in the prior quarter.
Of the existing home sales in March, traditional sales accounted for $38.8% of all sales, while foreclosures were 44.4% and short sale made up 16.8%.
This do not necessarely include sale made without a Realtor, like the “for sale by owner”.

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Comments (0) Apr 24 2010

Unbelievable strong SW Florida seller’s market!

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I made a couple of offers this week. Both were full price offers, one on a property in Cape Coral and the other one in Lehigh Acres. Thoses properties were freshly on the market that I put an offer right away. And I said right away, because those offers are number 8 and number 9. I have had no success with the first 7 properties for different reasons: too late or offering a 3% to 10% below asking.

But I learn from my mistake and I was offering a full price, the first day. Well, guess what, My offers are a back up because the banks have accepted what I think are better offers. But again, I will learn from this and will offer more than asking price for the next ones.

The amazing strong SW Florida seller’s market remind me when I was living in Pembroke Pines and had multiple offers the very same day when I put the listing on the MLS. If I was purchasing foreclosures or maybe even short sales, I can easily understand the multiple offer situation. Or maybe I should focus on foreclosed properties and offer twice the price, ending by paying a fair market value. But when it occurs with regular homes, it’s obvious that medias are spreading inaccurate information.

Here in TN, at least East TN, it is still a deep buyer’s market, but without any. I see 20% CAP rate investment properties getting no showing, and therefore, even less offers, or this 3bed/2bath residential with no taker at a mere $25,000, bought from the builder in 2005 for $140,000. Not even investors are showing up to buy those which rent for about $950-$1,100/month!

It seems that few miles will make a huge difference these days…

2207 NE 1st Ave, Cape Coral, FL

2207 NE 1st Ave, Cape Coral, FL

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Comments (0) Jan 08 2010

Real Estate agent: documents you need for your short sales.

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First of all, understand the short sales.

A short sale is a transaction that happens when a homeowner is owning more money on his/her home than what it is worth in today’s Real Estate market, and when the bank or the lender is willing to take less than what the homeowner owes.
Most of the time, that bank or lender will be able to collect more money with a short sale than if the homeowner goes into bankruptcy or foreclosure. That’s why they will be listening to short sales under certain circumstances.
For the homeowner, the short sale transaction is a better situation than going bankrupt or foreclosed. They credit will be hurt for 2 or 3 years instead of the 7+ years in a foreclosure situation.

Secondly, here are a list of documents you will need in order to prepare the short sale transaction with the bank representative:

FOR THE REALTOR:

  • ~ Signed letter of authorization from seller authorizing you to negotiate with the lender on their behalf.
  • ~ Letter of facts about the property. Everything that is wrong with the property and why it is impossible to sell it at a higher price.
  • ~ Current Market Analysis. Highlight comparable sales that reflect the lower value.
  • ~ Photographs. Remember, the photographs aren’t to highlight a charming house. Photograph evidence of damage, bad location, etc…
  • ~ Evidence of all showings and feedback. Explain to lender results and conversations you’ve had while trying to sell the property.
  • ~ Copy of listing contract/MLS Listing/MLS history.
  • ~ Current “AS IS” CMA.
  • ~ Copy of purchase contract if you have one.
  • ~ Preliminary HUD
  • ~ Make sure the seller has a detailed, tear jerking letter of hardship. See an example here
  • ~ Sales and services Quotes

Also, insert copies of the following if any:
1. Code Violations
2. Fines
3. Hearing Information regarding the maintenance of the property
4. Evidence of lawsuits the City is filing against lenders
5. Evidence of pending litigation or changes in the law
6. Insert Tenant / Landlord provisions if it helps your case
7. Evidence of the town / city’s enforcement of fines against other banks
8. Latent Material Defect
9. Sexual offenders and predators

FROM THE SELLER:

    -Two years tax returns and W-2′s.
    -Three months bank statements.
    -Pay stubs for last 30 days.
    -Detailed monthly budget.
    -All mortgages with account numbers.
    -Copy of the deed.
    -Copy of the note and/or mortgage
    -Pending bankruptcy, or other action/judgment or lis pendens.
    -Tear jerking hardship letter. See an example here

Buyers generally get a lot more house for their money in a short sale situation, because these properties are usually very competitively priced in order for the sellers to unload them before they end up in foreclosure. It’s a very good situation for them. The only downside I see is often the multiple offers situation for those short sale properties. But there are a lot of short sale properties available in the Cape Coral Florida market than in other parts of the country, so this area is the place to buy!.

So, if you are thinking of buying a short sale, here are 3 tips:

1 – Find a Realtor with short sales experience. There are many rigorous short sales and foreclosure training programs available to real estate agents, including the Certified Distressed Property Expert (CDPE) and the Short Sales and Foreclosures Resource Certification (SFR). If you wish to purchase a short sale property in Cape Coral, Florida, or anywhere else for that matter, you will greatly increase your chances of getting your deal to closing if your agent is experienced and comfortable with short sales….either through a short sales certification program, or through hard knocks experience in the field.

2 – Get pre-approved. No short sale offer will be considered without a pre-approval or a proof of funds letter. If you have not yet been pre-approved by a local lender and are not sure who to call, your real estate agent is a good source of referrals. The pre-qualification process generally takes less than 30 minutes, and can be done over the phone, however, a pre-approval takes longer but is better than a pre-qualification. Make sure you work with a local lender – today’s wild & woolly finance environment means that you greatly increase your chances of closing a deal if you use a local lender with a good reputation. All short sale offers must be submitted with a pre-approval letter, or with a proof of funds, as bank’s statements, in the case of a cash transaction.

3) Submit your highest and best offer the first time around! Lenders generally do not counteroffer….they will either say “Yes” or “No”. So if you are going to go through the process of waiting 60 days or more to hear back from the lender, you will greatly increase your chances of hearing that “Yes!” if you submit a good, solid offer with no contingencies.

Once you submit an offer that is approved by the seller, the seller has to submit your offer to their lender to see if the lender will accept the offer as well….remember, in a short sale situation the lender is agreeing to accept less than what the homeowner owes on the mortgage…..and the lender is going to do whatever they can to minimize the amount of that loss to their bottom line. Parting with their profits is not something that comes easy to lenders…..so it takes awhile to find out if they are willing to take the level of financial beating that is inherent in the amount you are offering. Sometimes the wait can be up to 90 days….sometimes much more (the amount of the wait often depends upon which lender holds the paper).

Look at the frustrating wait time as the price you pay for getting the chance to get a home you might not otherwise be able to afford.

If you want to receive listing from banks, this program will give tremendous help to get in the game as well.

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Comments (0) Dec 31 2009

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