Spring Into Short Sale Colorado

Spring is Near… oh wait spring is here! Why right now is the prime time to short sale your home?

So you have had some hard times, they no longer have to be especially with spring here.  You have gotten the bank notices, you have tried to catch up but you are just unable to do so.. you see no way out.. well have no fear because along with us and mother nature you too can become part of the short sale Colorado club.

Statistics prove that 74% of Colorado residents prefer to purchase their homes in the spring and summer months.  There is just something about the trees budding and flowers blooming that make potential home buyers want to start browsing what homes are currently on the market.  Everyone wants a great deal and short sales are always a great deal. They help you get out of your contract with the banks while helping another get into their dream home.

Spring is the perfect time to short sale your home because the buyer is able to see potential in the yard, the interior etc. Spring brings that fresh scent into your home and awakens its personality. Thus causing buyers to want to get into a home as quickly as possible. Meaning you could be done with the harassment from the banks in only a very short time. Imagine it….  you may be able to get a full night’s sleep again without having to worry if tomorrow the bank will be trying to lock you out of your house.

So spring into action and get your short sale listed asap and you too can be on the road to recovery by the time fireworks are  firing and the hot dogs are grilling.

Nicole Pittman

www.kjhomefinder.com

 

Short Sales and The Condo Bubble

The Trouble with Townhomes and Condos in Today’s Market

 

We all know that today’s real estate market is struggling, as the correction of values after the bubble burst plods onward, the market sheds value, and the banks take their losses. Many homes can be tough to sell, as buyer demand is not as strong as in years past.

 

Townhomes and Condominiums can be even harder to sell than regular houses.

 

Why?

 

They are still great homes, to be sure, and there is still a demand for them from people in the marketplace that want a lower-maintenance lifestyle. There are, however, a few reasons why they are struggling in the marketplace-

 

1) Homeowners Association Dues- While real estate prices have dropped across the board, HOA fees have not. They have escalated as the cost of services inflate without regard to the real estate market. This means that if a townhome was worth $100,000 and the HOA was $200 a month, in today’s market the value may have dropped to $60,000, yet the HOA dues are still $200 a month. It’s true that the home is now more affordable than it was at 100K, but the HOA dues seem disproportionately high, and act as a deterrent for buyers who are watching every penny, and are very sensitive to monthly expenses.

 

2) Owner Occupancy- When a complex has more renters than homeowners living in the units, it changes the outlook for the complex. FHA, VA, and many conventional loans will NOT make or insure loans in a complex with too many renters. The reason, it would seem, is that the loans could be more likely to become losses, because an abundance of renters can cause significant decline in the quality of the complex. Unfortunately, once it crosses this 50/50 mark, it rarely comes back, because so many buyers, especially first time buyers, rely on FHA and VA loans to buy their first home (often a nice affordable condo) and these buyers are not able to get financing to buy in these complexes, meaning that for the most part, only investors will be able to buy the units, and of course, they would become more and more rentals. This can cause values to decline, as demand declines, and conditions worsen.

 

3) HOA Delinquencies- If too many units are in arrears on their HOA payments, it can cause the whole complex to disqualify for almost all normal financing, including FHA, VA, and Conventional products. Understandably, the lenders don’t want to make loans in a complex where the HOA is in serious financial distress… but it is difficult to remedy in a recessed economy, as people struggle to make ends meet. Of course, the HOA may even have to raise overall dues to cover their losses, accelerating the problem.

 

SOLUTIONS-

 

The premier solution I have always hoped for is that FHA and VA, instead of refusing to make or insure loans in these complexes… would instead give INCENTIVES to people who would buy the homes to personally live in, to encourage them to buy! This would bring many complexes “back from the dead” so to speak, and would improve the owner-occupancy rate and the overall value of the complex, thereby improving the risk factor for the lenders as well!!  I have attempted contact with the Federal Housing Association, to implore them to consider my logic, but have yet to have a breakthrough there.

 

Homeowner Associations would do well to fight hard to keep the dues current with the residents, and the costs down! If the homeowners could even agree to pitch in around the complex, it could keep maintenance costs down, and prevent fee increases, which directly diminish property values.

 

 

What this means for people who own townhomes and condos that paid higher prices during the bubble, is that there are many who are ‘underwater’, and need our help. We are well-versed in the art of short-selling these properties, and we offer a high level of service for those who need to get out from under a too-high mortgage. We are especially good at problem solving the different issues that can become obstacles in successfully selling and closing short-sale condos and townhomes.

 

 

What this means for people who are considering buying a condo or townhome- whether to live in or rent- is that there are some AMAZING deals out there to be had. Many properties are so inexpensive in these complexes that the combination of a low price and awesome interest rates means that paying the HOA won’t hurt so bad… and that many of them are so affordable, you have a much better shot and paying them off! It’s a lot easier to pay off a $40,000 condo than it is a $200,000 house. These will be excellent rentals in future years, and we expect to see a strong rebound in their values, as the price cycle of real estate swings back upward, as it historically does.

 

Condos and Townhomes are EXCELLENT bargains right now!

 

We consistently have a strong inventory of listings available for condos and townhomes, because we are darn good at getting people out, that need out… and getting new buyers in at great prices… and the losses get stuck with the bank, not the consumer. Their loss is your gain!

 

Call us today and get the answers you need!!

 

Sam Solomon of: 

KEY CONCEPTS LLC

 (303) 995-5440

 

Short Sales and Winterization

Winter is in the air and for many agents it means its that time again… Winterization time! Now for many, this word is a forbidden scary situation due to the many things that could possibly happen, your cute little love nest for sale can become an ice palace perfect for an Eskimo. Your castle in the mountains will become the house that mold built. However there is hope with ensuring these three  easy steps are taken you too can become a winterization expert!

Step one: Protecting you and your company from the big bad bank! Photos required for your protection

1. Wint sticker on front door of the property and on all fixtures
2. Pink Glycol being poured down all drains and toilets in house blue tape across sinks
3. Picture of water being turned off
4. Pressure gage holding 35 psi in pipes
5. Picture of boiler or hot water heater being drained
6. Pipes being blown out
7. Water meter being removed (except in states where law prohibits)

Step two: Hobos and homeless are a national problem!

1. Check your properties on a weekly basis, as homelessness spreads, vacant homes become targets. If your unwelcomed house guest has used the toilets your wint has been compromised.. time to start all over.
2. If your home gets an unwelcomed guest several states enforce squatters rights (see http://definitions.uslegal.com/s/squatters-rights/)  this then requires eviction.
3. If your property has been vandalized or corrupted in any way contact your local law enforcement immediately so the bank does not hold you responsible.
4. Usually if you have squatters your going to have vandalism, alert the bank and owners immediately the most common vandalism is the stripping of the copper from the piping for money. Holes in walls, feces on floor etc vacant homes can become a nightmare. Keep your property safe by keeping electric on, make sure it looks like someone lives there.. pick up papers and old mail. Those are a few tell tell signs a home is vacant.

Step 3:  Always prepare for the worst and hope for the best. Winter doesn’t have to be a bad if you follow the 2 easy steps above you can rise above the chaos, sit back enjoy some hot chocolate and know your properties are safe and sound.

By Nicole Rickardson- Key Concepts

Denver Short Sales Buyer’s Agent

We understand what it takes when looking for a new home.

In almost every transaction, the seller of the home pays the commissions for both Brokers. This means that, as a buyer, you can enlist professional representation to assist with your search, negotiations, and contracts, without paying out-of-pocket expenses for those services.

Also worth mentioning is that Key Concepts works with a lot of short sales. There are a lot of these types of listings on the market these days, and they require specialized knowledge to negotiate successfully to the closing table. If you’re not already working with a Buyer’s Broker, please consider one with short sale experience.

Please call me at your convenience. I look forward to talking with you about your future home.

www.kjhomefinder.com

How to Qualify a Short Sale Agent

There are a lot of real estate companies and real estate agents in Colorado claiming to know short sales, but they are really just learning the “how-to’s” of short sales.  Now even national short sale companies are claiming to know how to process short sales in all states, but do they?  Short sales are certainly a process that needs a lot of experience and finesse. Processing, negotiating, and listing short sales are not for the novice. Key Concepts has been a leader in processing and negotiating short sales in Colorado since 2005. It has come to our attention that many of these so-called “short sale” experts do not know anything about the short sale process or about short sales in general. I have listed a few questions that I feel will qualify a real expert from a novice. I would also advise a homeowner to not use an agent who has not performed more than 10 short sales in the last calendar year or who has less than a 90% success rate. Here are a few questions I would suggest a homeowner ask before selecting a short sale agent.

 1. How many short sales have you completed in the last 6 months to 1 year?

2. How long have you been performing short sales? 3. How many short sales have you completed for (your mortgage company here)?

 4. What has been your experience with my mortgage company?

5. Do you process your own short sales or do you sub out? If the answer is: no they do not process their own short sales then ask who handles the short sale after it is submitted? Be cautious if the agent uses a national short sale processing center or title company to process the short sale.

6. How long do you think my short sale will take? Be cautious of agents who propose “quick”, less than 60 days, or we get them done the fastest.

7. Make sure to note if your short sale is a conventional loan, FHA pre-foreclosure sale, or VA short sale. Ask the agent if he or she is knowledgeable in the type of loan product that you have. All loans are not treated the same.

For more information on short sales call Key Concepts at 720-276-2553 or visti www.kjhomefinder.com . We understand short sales and we can help.

Key Concepts Short Sales Expand

Now Serving the Colorado Short Sale Market of: Alt, Arvada, Aurora, Broomfield, Brighton, Boulder, Briggsdale, Castle Rock, Centennial, Colorado Springs, Commerce City, Carr, Denver, Dacono, Elizabeth, Englewood, Erie, Federal Heights, Foxfield, Fort Collins, Fort Lupton, Glendale, Golden, Galeton, Gill, Greeley, Highlands Ranch, Keenesburg, Lakewood, Littleton, Lone Tree, Longmont, Lochbuie, Loveland, Milliken, Morrison, Northglenn, Pueblo, Parker, Salida, Thornton, Windsor, Westminster, Wheat Ridge, Wellington… and more cities. Check out www.kjhomefinder.com

Bank of America Short Sales

Why are realtors not doing Bank of America short sales?

How long will take to finish your short sale? We are experiencing unexpected delays.

Just recently I was notified by BOA that they have over 760,000 short sale requests to date and more coming in each day. The bad news is that they only have about 1/4 of the manpower needed to move the files through the system. From here on out, once a file is sent in it will take 15-45 days for “the imaging” process which prepares the file to be assigned to a phase 1 negotiator. Recently these phase 1 negotiators have been reassigning files due to overflow. When this happens the file gets sent to a new phase 1 negotiator who has 15 days to respond to the file. If the new negotiator does not have time or room for the file within 15 days they send it to a new phase 1 negotiator who again has another 15 days to respond and then it keeps going and going until the file “wins the lottery”. I have had 1 file that has been moved 4 times through phase 1. That’s 6 X 15 = 60 days in phase 1.

At the beginning of the year BOA had quoted that the imaging process would take 15 days and each of the 3 phases should only take 30 days each. This would mean that the process would take 90-120 days. This is no longer the case and BOA has no response as to how they will handle their short sales from here on out.

This is not something that was anticipated by anyone and certainly does not reflect the efficiency of Key Concepts. Every file is called on twice a week and we are at the mercy of the banks who service the loans. There are several factors which have contributed to this overwhelming and impossible volume of short sales going through one of America’s largest banks. 1) they are not prepared at all 2) only 15% of the homeowners who apply for a loan modification will actually qualify. The other 85% are told to apply for a short sale. 3) the loan modification department and the short sale department are the same department and with 85% of the applicants being turned down they waste valuable time and resources 4) the adjustable rate boom of 2004-2005 has finally expired and now the interest rates are higher than homeowners can afford. 5) the amount of agents now working short sales have tripled in the last 12 months..

It is my hopes that BOA will hire more staff and facilitate their short sales in a more timely fashion. I am just not sure when this will happen. For more information on short sales log on to www.kjhomefinder.com

Denver VA Short Sale- a breath of fresh air

The VA Short Sale- What a breath of fresh air

I recently had the easiest short sale of my career. With this particular deal I had two things going for me.

1) The bank was Chase

2) The loan was backed by the VA department.

Chase has very friendly customer service. Their wait time to talk to a rep is minimal and they almost guarantee approval within 30-45 days from submission date (not post date, mind you).

Here is where communication is key. We all know that sellers who are facing foreclosure are bombarded with phone calls and letters. Sometimes these phone calls can amount from 5-15 per week. These phone calls are from banks, debt collectors and attorneys. Let’s face it these calls are never pleasant and sellers will forever screen these calls.

It was about 3 weeks into the short sale process when I was alarmed by my seller that the local Denver, Colorado VA department was “blowing up” his answering machine. The words on the machine were “you are going under foreclosures and need to call the Denver VA department right away”. My seller was alarmed as if this was the first time he had really come to the realization that he was in fact facing his demise.  

None-the-less, he calls me in a panic… “Help!” As a short sale realtor, we get quite a few of these calls and avoiding the caller is not always the best solution. I told him that we could conference the VA department and see what they want and at the very least tell them that we are in the short sale process.

Long story short, the VA rep was the knight in shining armor. He assured us that if the bank did not have an approval letter in 2 weeks then he would take the entire file and process the short sale himself. He made a few calls to Chase Bank and within 2 weeks we had our approval letter.

If you ever have a VA short sale listing be sure to contact your local VA department as soon as you get a valid offer. The VA department is here to help, but they need the seller to cooperate.

Blog by www.kjhomefinder.com

Countrywide short sale update for 2009

Good News for Short Sales in 2009 with Litton Loans and Countrywide

Litton Loans Services and Countrywide are now participating in “Home Base Notes” and “Home Saver Systems”. This means that you can now call and get updates from an automated design. It used to be just the loss mitigation person assigned to a particular file.

Their goal is to decrease REO by 50% in 2009 and increase in short sale by 50% in 2009. Mortgage servicers do not want to file foreclosure and this is good news. I think we will see more of this in the future.

Litton Loan Services is also offering a 6% commissions on a successful closing, but Countrywide is still 5%. 

Litton Loan Services: 1800-999-8501 ph    1-972-653-6389 fax  

Countrywide Home Loans: 1866-880-1232 ph    1888-491-4947 fax

Thank you,

Key Concepts- serving the Colorado short sale market

Learn more about Short Sales in Colorado and how we can help! 

www.kjhomefinder.com

Helpful Tidbits about Colorado Foreclosure Law

In becoming or being a short sale specilaist, it is always important to know important highlights on your states foreclosure law regarding residential property.  Being a short sale professional in Colorado, I thought I’d list some important information about my states forelclosure law.  The law changed on January 1st, 2008. 

Before January 1st, 2008, the borrower was able to cure before the sale and redeem the property after the sale.  Both time periods were approximately 2 months before the sale and 2 months after the sale.  The new law allows the borrower approximately 4 months after the filing of the Notice of Election and Demand (NED) with the public trustee to cure before the sale.  The borrower no longer has the option to redeem after the sale.

Below are helpful tidibits about our states foreclosure laws:

• If the borrower files a notice of intent to cure and the public trustee sends the notice to the lender before 30 days to sale, the lender must submit cure figures to the borrower within (10) business days.  If the lender is tardy, the sale date can be postponed.
• Lenders are allowed to postpone sales date up to a year after the initial scheduled sales date.
• Liens that are filed before the NED have redemption rightts after the sale date.  Liens filed after the NED have no redemption rights.
• Junior lein holders must file a notice of intent to redeem within 8 days after the sale date.
• In general, foreclosure sales from most counties are typically held on Wednesdays but in Denver they are held on Tuesdays.
• Most HOA liens are not wiped out in foreclosure.  The lien can have a maximum value of (6) months plus associated fees.

The information posted above is useful tidbits.  Always seek legal counsel should you have any questions or need more information.  Thanks!

Blog by www.kjhomefinder.com