Before you sell your home on a short sale.

Market Value Matters Short sales sell for market value. That’s right. A bank will typically agree to a short sale if the numbers make sense. Banks understand that homes need to appraise. Banks also need to mitigate their loss. Listing a home for well below market value is not the best strategy for getting a short sale accepted. Sure, you may get plenty of offers, but if the bank won’t accept any of them you end up having wasted a ton of energy, not to mention paper, and facing quite a few angry potential buyers. Banks are no longer in the business of giving away houses. If you send the bank numbers that make sense, you increase your likelihood of a successful short sale closing by 90%. Only Real Hardships Get the Help I’ve lost count of the number of times potential sellers have told me the only reason they are pursuing a short sale is because everyone else is doing it. Purchasing a house during the housing boom is not a legitimate hardship. Purchasing a house during the housing boom and being unable to pay your mortgage is a hardship. Strategic default is never a good idea! Banks actually analyze short sale sellers’ hardships, and most center on the economy, so the bank is going to make sure that a short sale is in their own best interest. Acceptable hardships include medical issues, divorce, disability, significant loss of income, death, unemployment, and relocation

Good News For Home That’s Underwater

Yesterday, officials held a conference call promoting the “Helping Responsible Homeowners Act of 2011.” Originally introduced in January, the bill aims to remove the barriers that keep non-delinquent, existing borrowers from refinancing. Those in the mortgage business should be interested to know that they are proposing to eliminate LLPAs and adverse delivery charges for loans - the GSEs could not charge any additional upfront fee beyond the standard guarantee for a qualified mortgage. (In effect, this would lead to only one standard guarantee fee for all borrowers.) It would remove LTV limits for underwater borrowers so mortgage refinancing would not be limited by the LTV of the borrower. (Currently, borrowers in the HARP program can have a maximum LTV of 125%. Removing this constraint could allow up to 10-15% of borrowers in the 2005-07 vintages to be eligible for GSE refinancing.) It would remove the second-lien barrier to refinancing so that servicers and creditors that refuse to have their second liens ”re-subordinated” in the refinanced mortgage would be prevented from originating new GSE loans. And it would ensure that higher LTV borrowers receive a fair mortgage rate, suggested at no more than 40 basis points higher than the GSEs’ 60 day commitment rates.

New listing in Newcastle

Estate Property- The old farm house must go, but the land is gorgeous. Beautiful approx 5 acres suitable for development (zoned R6) or a horse lovers dream. Within Newcastle City limits. Near Luxury homes. Gently rolling, half cleared, half wooded. City of Newcastle sewer, water and natural gas. Power on property. 10 minutes to Bellevue. Walk 300′ to the new elementary school in the Issaquah school district. Close to shopping and medical. Lots of potential here.

New homes coming in Sandpoint

Watch what is coming with in the next 2 weeks. Two new listings (new construction). Homes are almost finished. There will be a huge brokers open and open houses every weekend. Area Sandpoint. Huge homes with basements and mother in law apts.

Stay tuned