Category Archives: Short Sale

2013 – The Year of the Commercial Real Estate Short Sale

Commercial real estate investors we should be aware that since the last big “commercial office building chandler azreal estate buying” period for commercial real estate properties was around 2008, so many of the existing 5 year fixed commercial loans used to finance those commercial real estate investments may be ballooning or becoming all due and payable in 2013.

 

Over 4,700 CMBS (Commercial Mortgage Backed Securities) with loan balances near $55 billion may need to be refinanced in 2013. A high percentage of these ballooning commercial mortgages may not have sufficient income to service the existing mortgage debt.

According to Bloomberg Financial News, there may be an additional 6,300+ non-CMBS commercial mortgage loans with balances of almost $79 billion, which may becoming all due and payable in 2013.

Things have most certainly changed since 2008 and in many cases, the existing mortgage debt on a commercial property, may currently exceed the market value in 2013 based upon the income and expenses for the commercial property. Some mortgage lenders or servicing companies may accept partial payoffs similar to a residential “Short Sale”.

 

As a result in 2013, Commercial “Short Sales” may increase.

 

This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared

 

Will a Foreclosure Affect my Job?

So can a foreclosure not only affect your credit but also your job? Well I guess that would depend on your job.

Certainly potential employers look at a prospective employees credit before hiring them and and if the job entails having a security clearance there seems to be a strong possibility that a credit mark like a foreclosure may be enough to disqualify someone, based on what I was reading from the U.S. State Departments website under the

Adjudicative Guidelines for Determining Eligibility for Access to Classified Information page guideline F – financial considerations 19a states “inability or unwillingness to satisfy debts “ sounds like foreclosure to me.

So it seems credit is not the only reason to consider a Short Sale for a distressed homeowner. For more information on the current market value of your Arizona home as well as additional short sale information including the short sale advisory guide from the Arizona Department of Real Estate, you can find that here.

As always, no matter if you want to keep your home or not I cannot stress enough the importance of learning the possible tax ramifications, from possible capital gains (yes even if you see no money) to you under all scenarios from a tax professional as well as your legal rights and possible ramifications of any possible deficiency of the amount owned the lender by contacting a real estate attorney so that you can make informed decisions.

This information is for general informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

Short Sale Homes for Sale Gain – REO’s Lose

According to the Cromford Reports mid month pricing update and forecast there continued to be an increase in the number of short sale homes and a decrease in the number of REO across the Phoenix metro area.

They reported an overall price increase of 1.4% as of December 15 2011 over the same time last year and they repeated it twice for the benefit of those who recognize that as being appreciation and that can’t be correct can it, there are many who still think we are in a buyers market, all I can say to them is maybe they should watch less TV!

Narrowing it down a little more local because after all real estate is local, here in the southeast valley we have experienced even higher appreciation than the Phoenix metro area as a whole with Gilbert realizing a 2.1% increase in price/sf from a year ago and an even higher 3.3% over the average p/sf for the year, which shouldn’t come as a surprise since on 12/16/10 Gilbert had 164 days of inventory compared to 77 days inventory on 12/15/11.

Queen Creek has even doubled the appreciation rate of the valley as a whole with 4.1% from a year ago and 3.8% higher average price/sf last month compared to the average for the year. Again can be explained by supply and demand, on 12/16/10 Queen Creek had 145 days of inventory compared to 62 days inventory on 12/15/11.

The Gilbert and Queen Creek area like the rest of the Phoenix metro area has seen a decease in REO inventory REO’s account for 25% of the monthly sales in Gilbert and 23% of the monthly sales in Queen Creek. Short Sales have increased to 36% of the monthly sales in Gilbert and 39% of the homes for sale in Queen Creek are Short Sale.

With the Mortgage Debt Relief Act of 2007 expiring on 12/31/2012, I would not be surprised to see to increase in the number of short sale homes for sale trend we have been seeing continue though out 2012.

This information is for general informational purpose and not intended to be investment advise, and should be explained
to you in detail. You should always consult an attorney and/or tax advisor to obtain further information you deem necessary.
I want you to be prepared.

 

Distressed Homeowner? Know your Options and Beware of the Scammers

It is heartwarming to see how people come together to provide assistance, encouragement and all kinds of support to people who are distressed, there are good people in this world. At the same time there are also bad people and they are preying on these same distressed homeowners.

There seems to be a staggering number of distressed homeowners who are underwater with their mortgages these days and while I know many people who get very emotional about trying to do everything they can to help these distressed homeowners doing a short sale, there are predatory “rescue” scams that distressed homeowners need to look out for.

If a distressed homeowner wants to keep the home there choices are:

Refinance ( I am listing options not probability here )

Loan Modification

Forbearance

or Bankruptcy

If a distressed homeowner wants to or can’t keep the home their choices are basically:

Short Sale

Deed in Lieu

Foreclosure

Bankruptcy

In any event this is not a do-it-yourself project, there are way too many parts (complicated parts) and to many mistakes that can be made without professional advice, you absolutely need to consult a tax adviser and seek legal advise regarding your individual circumstance.

Also be very aware of predatory “rescue” Scams that prey on distressed homeowners, some red flags to look for are:

Large Upfront fees

Guarantees to stop foreclosure (who do they think they are?)

Telling you to transfer your title and/or execute a power of attorney

Forensic Loan Audit

Bait and switch

Rent to Own or Leaseback Scheme

Short Sale Scam – while a short sale may be a legitimate option there are short sale scams out there to look out for they often promise   to be able to expedite the process and usually require you pay a fee upfront

If you like I can send you links to government agencies with more details of these scams as well as ways to report them just let me know.

If you don’t know what the market value of your home is, you need to find out, if after you have evaluated your options you have decided to do a short sale of your home, you will need a realtor that has expertise in short sale negotiation (especially if there is a deficiency to negotiate with your lender) the realtor should also know the market where your home is. If you live in a subdivision larger than a couple hundred homes and they don’t know what city your home is in or what school district your home is in do you really think they really know what the market is where your home is?

And no matter if you want to keep your home or not I cannot stress enough the importance of learning the possible tax ramifications to you under all scenarios from a tax professional as well as your legal rights and possible ramifications of any possible deficiency of the amount owned the lender by contacting a real estate attorney so that you can make informed decisions.

 

This information is for general informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always consult an attorney and/or tax advisor to obtain further information you deem necessary. I want you to be prepared.

Will 2012 be the Year of “Short Sale Home for Sale” ?

According to the recently released mid-month pricing update and forecast from the Cromford Report, sales prices continue to increase across the valley, REO inventory continues to go down and Short Sale homes for sale hits a new record high.

As REO inventories continue to decline the sales prices of both REO and short sale homes for sale have been going up. I would be surprised to see that change as we finish the 4th quarter of 2011.

As we go into 2012 with significantly less REO inventory than we had at the beginning of 2011 and as many of the distressed homeowners who actually pay a professional to prepare their tax returns next spring learn from those tax professionals that the The Mortgage Debt Relief Act of 2007, which generally allows taxpayers to exclude income from the discharge of debt on their principal residence and  applies to debt forgiven in calendar years 2007 through 2012. Talk to your tax professional or visit the IRS website to see if you would qualify. I would not be at all surprised if in 2012 we saw a jump in the number of short sale homes for sale, if this takes place no doubt many of the buyers would be investors as REO properties have been a favorite for them the past couple of years and with that supply dwindling they will need inventory from somewhere.

equal housing opportunity

 

 

 

 

This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax advisor to obtain further information you deem necessary. I want you to be prepared.

Homes for Sale in Queen Creek – Market Report Prices Increase Again

We have been talking about shrinking inventories for months (down to 67 days compared to 140 one year ago), particularly REO inventory, according to the Cromford Report.

Bank owned homes for sale in Queen Creek are down significantly to 30% of the market compared to bank owned homes for sale in Queen Creek a year ago at 44% of the market. Short Sale homes for sale in Queen Creek currently make up 36% of the market, up from 26% of homes for sale in Queen Creek a year ago sold as a short sale.

Homes for Sale in Queen Creek for example were selling at $58.19 per square foot as of 11/03/2011, up from $52.45 /sf on 5/06/2011 and prices of Queen Creek Homes for Sale are up over 4% for the year.

There are some listing brokers than believe that as the REO ( a favorite for investors ) inventories will continue to decline in 2012, they expect HUD inventories will increase, which will benefit any owner occupants that want to buy a home at the current market rates, which is less than you can build one for. ( subject to change I’m sure)

To do a Property Search of the MLS for homes for sale in the valley.

To search bank owned homes for sale in the east valley.

 

This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.


 

Richard D Chapin, PLLC - Realtor

equal housing opportunity

Bank Owned Homes for Sale in Queen Creek – Prices up slightly

Bank Owned Homes for Sale in Queen Creek – Prices up slightly.

The Cromford Report published it’s mid mouth update the other day with no surprises, with REO inventories continuing to decrease and as a result the prices for those bank owned homes is increasing. Short Sale homes for sale in Queen Creek and the surrounding area are increasing in number although the selling prices have decreased.

This summary mirrors pretty closely to what is happening in the Queen Creek, San Tan Valley area where we have seen an incredible volume of distressed sales take place in the past couple or years or so.

Bank Owned homes for Sale in Queen Creek

 

In Queen Creek and San Tan Valley, while sales are down slightly from last month, sales are still higher than the same period last year. With inventory levels at a ( sellers market ) low 71 days, and the inventory of bank owned homes for sale in Queen Creek and San Tan Valley representing a smaller percentage of that inventory it is not surprising that according to the Cromford Report sales prices in Queen Creek are up 3.9% compared to last year.

This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

 

 

Queen Creek Homes for Sale

San Tan Valley Homes for Sale – 130’s or – San Tan Valley Homes for Sale – from 70’s

San Tan Valley Homes for Sale – 130’s or – San Tan Valley Homes for Sale –  from 70’s

Yesterday I was driving by a local community and noticed the big sign the builder had up saying homes starting in the 130’s and the best part was the big red star in the upper right hand corner of the sign that said Last Chance.

That sign reminded me of a conversion I had a few weeks ago with an investor “suspect” , he hasn’t made it to investor prospect status. This suspect had told me he didn’t think it was a good time to invest in a house in the area.

When I saw that sign I felt like shooting a picture and sending it to him ( but I didn’t) because I happen to know of several houses that same builder build 2 and 3 years ago that are listed as bank owned or short sale starting at 71k. As a matter of fact I was in one that closed about a month ago that was move in ready that sold for 58k which was over the listing price at the time so that would have been a better time.

But even a 71k slap a little lipstick on it ( new carpet, paint the inside, a few scented candles ) for 59 thousand less.

Some are seeing the opportunity they have and taking action. Some are watching what is happening, and some will wake up someday and wonder what the heck happened.

And in all fairness their some see the opportunity and would like to take advantage of the opportunity now but don’t think they have the money to invest. For those people see my previous post about self-directed IRA‘s

To search bank owned homes for sale in San Tan Valley.

This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

 

Thinking about doing a Short Sale or a Foreclosure?

Thinking about doing a Short Sale or a Foreclosure?

Have you considered the short and long term credit and financial implications of walking away from your property and allowing it to be foreclosed on?
Learn what are realistic expectations for a potential outcome before doing so. Whether you opt for a Short Sale or Foreclosure, there will be a impact on your credit.

Before you decide to walk away from your property and allow it to be foreclosed on, we feel it is important to consider all of the short and long term credit and financial implications of doing so. Make an informed decision about getting the help you need.
Whether you are successful in your short sale your home or allow your home to go into foreclosure, I recommend expert advice one involving whether Arizona’s “anti-deficiencystatutes would apply.

I cannot stress enough the need to seek legal counsel for each individual case and how they may or may not be affected with their individual circumstance.
The other area would be in the area of any possible Tax Consequences as a result of any forgiveness of debt by the lender. Again each individual should seek advice of any impact in their individual circumstance.

Contact me to discuss the options that may be available to you.

Short Sale homes in Johnson Ranch – San Tan Valley AZ homes for Sale

Short Sale homes in Johnson Ranch – San Tan Valley AZ homes for Sale

Johnson Ranch is a master planed community in the San Tan Valley AZ, just south of Queen Creek AZ.
The Johnson Ranch community not only offers affordable homes, but many of the amenities include: community recreation centers, playgrounds, pools, spas, lighted basketball/tennis courts as we as the Johnson Ranch golf course, a 18 hole championship golf course open the the public. Johnson Ranch homes for sale are not only affordable but, homes for sale in Johnson Ranch, offer a genuine value with the many amenities, designed for an active Family lifestyle.
Whether you are looking for a personal residence and/or investment property to produce passive income for you through positive cash flow, you owe it to yourself to check out the Johnson Ranch homes for sale today.


To search for Bank owned Johnson Ranch homes.
To search for Short Sale Johnson Ranch homes.

This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.