Monthly Archives: November 2013

How Short Sales Create Opportunities for Real Estate Agents

Foreclosures continue to flood the housing market in Maryland, and the state continues to get a lot of bad press for this reason. However, foreclosures are not necessarily a bad thing. When foreclosures are turned into short sales, they present opportunities for everyone involved. The seller has the opportunity to avoid filing for bankruptcy and to save his or her credit score. The bank has the opportunity to recoup more of the value of the house than it would have on a foreclosure. The strain on the judicial system is eased, and everyone’s time is saved. And, short sales present lots of opportunities for savvy real estate agents.

The high volume of foreclosures that can be turned into potential short sales presents a great opportunity for real estate agents. Buyers are out there looking to capitalize on these great investments, and when a buyer and seller come together, they need a real estate agent to conduct the process. Agents who specialize in short sales can see lots of activity in a market that is otherwise still recovering at a slow pace. Short sale training is available for agents who are looking to learn the specifics of a short sale transaction, making it easy for agents to learn how to conduct a short sale. Not only will this knowledge serve well in the short term to conduct sales, it will also add to an agent’s own portfolio of marketable skills, making it a potential career-booster in the long term.

If you’re looking to invest in low-cost properties with lots of earning potential, we can help. Gray’s Home Solutions has properties of all types across the state of Maryland. Contact us for a full list of properties. Even if you’re not looking to buy right now, you can participate in our sellers referral program. Here’s how it works. Send us the phone number and property address for a For Sale By Owner or vacant property. We’ll take a look, and if we buy the property we’ll pay you $250 as a thank you for providing the lead.

Are you interested in learning more about selling your home fast? Our ebook has a ton of great information for you. We also have an ebook with information on how to avoid foreclosure, available for download here. They’re both free, so give them a look. You can also connect with Grays Home Solutions on Facebook, Twitter, Google+, and LinkedIn for more real estate made simple.

Source

http://home.howstuffworks.com/real-estate/10-benefits-of-short-sale-over-foreclosure.htm#page=6

The Impact of Investors on the Housing Market

The housing market is recovering slowly but surely, in no small part because of the efforts of investors who see the value in homes that others may overlook. In Maryland especially, these kinds of homes are becoming a common sight as foreclosure rates continue to rise. Maryland has the third highest foreclosure rate in the nation according to RealtyTrac, and as a backlog of foreclosures continues to make its way through the judicial system, it’s unlikely this trend will change anytime soon.

However, smart investors see the possibilities presented by these properties, and by investing in them they help not only themselves, but the entire market. First, they take a rundown property off the market. This helps the market from becoming saturated with these kinds of properties, which helps keep property values from getting too low. Investors also create work for the construction industry by enlisting contractors to fix up rundown homes. They create work for agents to sell these properties, and opportunities for families looking for quality and affordable housing. Finally, by returning a great home to the market, investors bring up the value of other homes in the area, which can revitalize a stagnating neighborhood. With the efforts of investors, formerly distressed properties that brought the market down can be used to bring it back up again.

Source

http://www.bizjournals.com/baltimore/blog/real-estate/2013/11/officials-launch-offensive-against.html?page=all

How a Short Sale Saves You Money

Last week we talked about how deficiency judgments work, and in what situations banks are authorized to seek a deficiency judgment. We also talked about how banks may be willing to waive their right to a deficiency judgment if the property owner chooses to go the short sale route.

This is just one of the ways a short sale can save you money. Lenders stand to recoup much more in a short sale than they do a foreclosure, which means they may be more likely to cut their losses, which saves you from having to pay the remaining value of the property. While they aren’t without costs of their own, short sales are less expensive than foreclosures. According to the U.S. Congress Joint Economic Committee, the average cost of a foreclosure for a property owner is $7,500, which isn’t cheap. Depending on the severity of your financial situation and your ability to keep up with payments, the cost of foreclosure could be simply too much to bear, making bankruptcy the only option. By opting for a short sale, homeowners can avoid the costs of foreclosure and the threat of bankruptcy, and retain more control over their financial situation than they would in a foreclosure.

If your lender is foreclosing on you, keep in mind that they may be willing to go the short sale route. If you’re facing foreclosure and considering a short sale, you should know that finding a buyer for your home doesn’t have to be a difficult process. Gray’s Home Solutions will buy your home quickly. We’re looking for properties of all types across the state of Maryland. Whether your house is in pristine condition or if it has seen better days, we’ll make an offer fast. Best of all, in addition to our speed, you pay no fees or commissions when we buy your home.

Even if you’re not looking for a buyer, you can participate in our sellers referral program. Here’s how it works. Send us the phone number and property address for a For Sale By Owner or vacant property. We’ll take a look, and if we buy the property we’ll pay you $250 as a thank you for providing the lead.

Source

http://home.howstuffworks.com/real-estate/10-benefits-of-short-sale-over-foreclosure.htm#page=3

What is a Deficiency Judgment?

A deficiency judgment is a legal process that can occur either after a foreclosure, or after a short sale. Basically, a lender can use a deficiency judgment to attempt to get the rest of the money they are owed that they didn’t get from a foreclosure or short sale. For example, if a property is worth $150,000, and it was sold at a short sale for $100,000, the lender can file a deficiency judgment to try to get the remaining $50,000 of the property’s value. The lender has to go through the court system and file a lawsuit to do this, and if it is successful, your wages can be garnished or bank account levied as a means of paying back the remainder of the loan.

Many states prohibit lenders from filing deficiency judgments after a foreclosure, and three states prohibit them after a short sale. However, Maryland does not prevent deficiency judgments after foreclosures nor short sales. A lender can seek a deficiency judgment up to three years after a foreclosure.

So how do you prevent the lender from seeking a deficiency judgment? One option is to negotiate with the lender during the short sale process. You can attempt to get them to waive their right to seek judgment or, if they refuse, you can try to make a settlement offer of a smaller amount. The lender may be willing to do this because collecting a deficiency judgment is both time consuming and costly. A more risky option is to take the chance that, because of the difficulty of the process for the lender, they may decide not to sue you for deficiency. They may send you letters demanding payment, but they can’t actually freeze your bank account or garnish your wages unless they file a suit.

Negotiating with a lender during the short sale or foreclosure process can help prevent the threat of a deficiency judgment. If you’re considering a short sale and are concerned about a deficiency judgment, Gray’s Home Solutions can help you through the process and save you time by buying your home quickly. We’re looking for properties of all types across the state of Maryland. Whether your house is in pristine condition or if it has seen better days, we’ll make an offer fast. Best of all, in addition to our speed, you pay no fees or commissions when we buy your home.

Sources

http://www.nolo.com/legal-encyclopedia/how-avoid-short-sale-deficiency-judgment.html http://www.nolo.com/legal-encyclopedia/deficiency-judgments-after-foreclosure-maryland.html

How Lenders Benefit from Short Sales

Lenders are in a unique situation when it comes to foreclosures. By foreclosing on a house, they’re expressing their intent to recover money that’s owed them, but they end up having to spend a lot of money in the process. Court costs in the foreclosure are quick to pile up. Not only is foreclosure an expensive prospect for a lender, it’s also time consuming. The process can take a long time to get through all the litigation, especially in Maryland, where the average foreclosure timeline is about a year and a half. The old adage “time is money” couldn’t be more true here. Not only does foreclosing cost a lot, but holding a foreclosed property presents a financial burden to the lender. The property may require renovations, and it will certainly require a real estate broker to sell it.

This is why lenders benefit from short sales. They avoid the lengthy and expensive foreclosure process and also avoid having the costs that come with selling the property after its acquisition. Short sales often reduce a lenders loss to a level that’s acceptable to just write off, which is easier and less expensive than going through foreclosure.

Source

http://www.washingtonpost.com/local/thousands-of-marylanders-are-losing-homes-in-second-wave-of-foreclosures/2013/08/10/859bbfde-fde5-11e2-96a8-d3b921c0924a_story.html

http://home.howstuffworks.com/real-estate/10-benefits-of-short-sale-over-foreclosure.htm#page=4