Category Archives for "For Sellers"
Short Sale information for Sellers
Short Sale information for Sellers
Starting January 1st, a new real estate process was enacted in the state of North Carolina. This process deals with a new contract that will now be used to buy and sell homes.
Originally, a potential buyer would make an offer on a property that is for sale and once the buyer and seller reach an agreement, the contract will then be signed by both parties. The buyer will provide earnest money and the house will be changed to “conditional” status, which will make the property essentially off the market unless the sale falls through. The buyer has the responsibility of meeting several different deadlines and if they fail to meet any of these, the seller has the option to cancel the contract and keep the earnest money. The buyer is then able to cancel the contract, as well, and receive a refund of the earnest money at the buyer’s discretion.
However, with the current housing market, this previous contract created some bad situations. Sellers were under the impression that they had their house sold, only to have the buyer cancel the contract after inspections. Buyers were legally entitled to receive the earnest money back, but the Realtors® cannot return it without the seller’s written authorization. If the seller and buyer cannot agree on who receives the earnest money within 90 days, the Realtors® are required to turn it over to the court to decide.
This new contract process’ goal is to alleviate this situation by creating a due diligence period. The new process was summarized by Ballantyne Scoop website below:
“The Potential buyer will make an offer on a house and the buyer and seller begin to negotiate the contract. After both parties agree on the terms, the buyer will provide the seller with a due diligence period, and the Realtors® with an earnest money deposit. During the due diligence period, the buyer needs to complete any work that needs to be done in order to decide whether he/she is willing to able to move forward with this purchase. This includes applying for the mortgage and conducting inspections. During the due diligence period, the buyer can cancel the transaction for any reason. The buyer would receive the earnest money deposit back, but the seller keep the due diligence fee. If the buyer has not canceled the contract by the end of the due diligence period, he/she will be in default if he/she doesn’t go through with the contract. This means that the seller will automatically receive the earnest money deposit if the buyer did not cancel the contract before the end of the due diligence period and then does not close on the house.”
This new contract helps keep equality in these sales, for both the buyer and the seller, but it also makes it easier for buyers and Realtors® to track deadlines and make sure they are completed in a timely manner. Now there is just one deadline to keep track of instead of several.
Homes sold without the help of a real estate professional dropped to a record low over the past year. According to the 2010 NAR Profile of Home Buyers and Sellers, unrepresented sellers made up only 11 percent of the market, down from 13 percent in 2009.
Owners who sell their home without the help of an agent usually sell to someone they already know. Factoring out those private sales, the actual number of homes sold on the open market without professional assistance was a record low 5 percent, compared to 10 percent in 2004.
With the higher rate of foreclosed and short sale properties on the market currently, buyers need to use a certified Realtor to help navigate through a sale or purchase. It is not out of the ordinary for many Realtors to be unfamiliar with the process, and this can make the real estate journey a lot harder for the buyer.
Finding a Realtor that can assist you and your needs is the best way to find a home or have your property sold in a timely manner.
For help with this process you can contact Showcase Realty by clicking here to get started on your way to selling or purchasing a property.
Yesterday evening, December 8, 2010, Showcase Realty held the first of monthly workshops to inform the local agents and community about buying and selling distressed properties. The workshop was titled, “Success in Distress”. It was a free event, but donations for the Boys & Girls Club were taken up.
There were 50 people in attendance, including keynote speakers, and we raised almost $800 for the Boys and Girls Club. This exceeded our expectations of the first workshop and we are looking forward to bigger and better workshops in the future!
We want to say thank you again to our wonderful sponsors, Wells Fargo Home Mortgage, RJR Insurance Agency and K&T Construction Company, and speakers. Without these very special people the workshop would not have been possible!
Our next workshop will be January 24th, 2011, 2 p.m. – 5 p.m. at the Marsh Road Boys & Girls Club in Charlotte, NC.
To register for this workshop go to http://hudworkshop.eventbrite.com
For more information regarding Showcase Realty or to speak with a CDPE about finding a home or getting help with your current situation, www.CharlotteREOBroker.com
According to Fannie Mae, they are lifting some of the holds on eviction actions and REO closings that were put in place in September 2010. The holds were placed in response to the issues of possible defects with affidavits submitted in foreclosure actions. This means the homes that were removed from the market will be placed back on the market and closings will be able to proceed over the next week as Fannie Mae works through lifting the holds.
The following are instructions for brokerages Fannie Mae has issued to inform them of the current situation and how to proceed.
“Effective November 24, 2010, Fannie Mae is issuing the following instructions for REO properties relating to all loans which were formerly serviced by GMAC, Bank of America, PNC Mortgage Corporation, JP Morgan Chase, One West Bank and Sovereign Bank in all states previously on hold:
1. Our prior guidance with respect to evictions and lockouts for each of the affected servicers remains in effect at this time.
2. Proceed with scheduling and holding the closings of Fannie Mae REO property as agreed between the parties. If a title issue arises with respect to the potential defect of an affidavit used in the underlying foreclosure, the Closing entity will identify the issue in AMN as they would any other title issue and will work with their title representative for further instructions.
3. Please reach out to all buyers that have been awaiting closing to ensure that they can now move forward. They may reschedule to an earlier date if needed. It is possible that their loan and/or closing files will need to be updated before their closing can be scheduled.
4. Please reach out to those buyers that elected to terminate their contracts to determine if still interested in purchasing the property. All details of the contact and response must be noted in AMN. We require response/update in comments within 72 hours of this notice if the buyer associated with the terminated contract wishes to re-engage.
Over the next week, impacted properties will be removed from their current “Unable to Market” status in AMN and will again be available to market.”
For more information regarding the foreclosure freeze or for help buying a home that was taken off the market due to a title defect, please click here.
Join us for our Community Workshop to Boost Homeownership in our Community!
Learn about Affordability & Availabilty of Homes in Your Area
Wednesday December 8th
6:00 p.m. – 8:00 p.m.
-Learn How to buy a HUD Home from the Broker-In-Charge of HUD registered firm, Showcase Realty, LLC
-Foreclosure, short sale and distressed property Information: Buying & Selling
-Pertinent Mortgage Information from Wells Fargo
This is a free event but there will be an opportunity to make donations to the Boys & Girls Club of Greater Charlotte.
Limited Space! Register Today!