Stillwater Real Estate » Foreclosure / Short Sale

Buying a Short Sale

Ben Goheen — Fri, 02 Apr 2010 20:53:50 +0000

If you’re considering buying a home, you’ve probably heard the term ‘short sale.’ The process of buying a short sale differs from a traditional sale and has both advantages and disadvantages.

What is a short sale?

A short sale is when a home is sold for less than the remaining loan amount. This is an option for homeowners who are struggling to pay their mortgage and want to avoid foreclosure. Since the home is being sold for less then the remaining loan amount, the offer accepted by the seller must also be approved by the lender. Here’s an example:

John bought a house in 2006 for $200,000 and had 20% down ($40,000) so he took out a mortgage for the remaining $160,000. Not much principal has been paid down in 4 years so he still owes nearly $160k. Now John wants to sell but properties in his neighborhood are selling for around $120,000. If he sells his house for $120k and still owes about $160k, he either has to write a check for the remaining $40,000 or do a short sale – sell it for less than the remaining loan amount

No two short sales are similar

Since offers have to be accepted by the seller and their lender, response time can vary greatly – from a couple days to several months. Plus there is no guarantee the offer will be accepted by the lender. If the seller has two mortgages it can take even longer since all lenders have to accept the offer.

Does the Realtor have experience?

The seller’s agent submits the offer to the lender and handles negotiations. So if the agent has experience dealing with short sales it will likely help the process move along easier.

Research the seller

See if seller has provided their agent with the complete short sale package, including a notarized letter that allows potential buyers to review the property and loan information. A short sale will be delayed if the required documents aren’t ready when you make an offer. Some sellers can be slow to provide these documents, or may not even know they’re required. But a lender will not review an offer without them.

Research the property

Understand how much is owed to the lender, the loan type and if there are any liens. This will help you anticipate the time frame and likelihood of your offer being accepted.

Make an offer

Assuming the seller accepts your offer, keep in mind the lender also has to approve the offer. Lenders will expect you to be preapproved and provide earnest money. Also, short sales are generally sold “as is” which means no repairs will be made to the home by the lender. It is still important to have a home inspection, so make your offer contingent on having a home inspection after the offer is accepted. Remember a response can take several weeks or months. The seller’s agent should be able to provide you with regular updates on the status of your offer.

Prepare for closing

If your offer is accepted, the lender will provide a letter stating the purchase price and any remaining liens. Buyers are usually given 30 days to close. Some lenders reserve the right to renegotiate the terms of the short sale at the last minute. If the market changes, new laws pass or new information crosses the lender’s desk, the lender can attempt to change the terms of the contract. Also the seller still has the right to reject the offer after the lender accepts it.

Search Stillwater short sale listings

PriceChopper: $10k Drop in Cry for Attention

Ben Goheen — Thu, 21 Jan 2010 06:04:17 +0000

The lowest priced listing in the Long Lake Villas, 2887 Brewers Lane has had some trouble getting traction on the sales front. Which means it’s time for the PriceChopper to enter stage left, carrying axe. This two bedroom, two bath single level townhome was just chopped another 7%, which is the third chop since December. It last sold in 2006 for $215,000 and is marked as a potential short sale. View the listing (courtesy of Keller Williams Classic Realty Northwest)

Start Your Day by Scraping Windows – Inside the House

Ben Goheen — Thu, 14 Jan 2010 07:35:32 +0000

[mappress]
Who needs curtains when every window of this 140 year old South Hill foreclosure appears to be covered with a privacy film. Until you get much closer and realize they’re actually coated with ice. Everyone knows the single pane windows of yesteryear aren’t very efficient, but it’s not every day you see such a phenomenon. What a nice way to start your morning – roll out of bed, make some coffee and start scraping the inside of your windows. Asking price for this 3 bedroom 1.5 bath uber-private pad is $119,900.
604 5th Street S, Stillwater MN 55082

Financial Help for Foreclosed Homeowners

Ben Goheen — Sat, 12 Dec 2009 22:59:05 +0000

The Minnesota Home Ownership Center started a new program to assist families after a foreclosure with up to $2,500 to relocate and secure alternative housing. Funding for this pilot program has been provided by the Saint Paul Foundation Community Economic Relief Fund.

Homeowners being displaced must have owned in Dakota, Ramsey or Washington County during this pilot program. Funds may be used for:

Moving expenses
Security deposits
Up to half of monthly rent for first three months
Utilities (gas, electric, water)

Download the fact sheet for additional program information.

Woodbury Detached Townhome Foreclosure

Ben Goheen — Thu, 12 Nov 2009 13:50:40 +0000

	Townhome, 3 bedroom, 3 bathroom, built in 2004, 2,479 sq. ft., hardwood floors, tall ceilings, near Dancing Waters
	Asking price: $199,900 Approximate Value: $301,000 Equity: $101,100 (34%)
	ID# 3853354	Request More Information

The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity℠ Program of the Regional Multiple Listing Service of Minnesota, Inc. All real estate listings are marked with the Broker Reciprocity℠ logo, and detailed information about them includes the name of the listing brokers. Information deemed reliable but not guaranteed. Copyright 2009 Regional Multiple Listing Service of Minnesota, Inc. All rights reserved. Listing provided by RE/MAX Associates Plus. Equity amount is based of tax records and may or may not reflect current market value. A competitive or comparative market analysis, appraisal, CMA or home valuation was not performed on the property.

Stillwater Foreclosure – $488k Equity

Ben Goheen — Wed, 11 Nov 2009 13:35:58 +0000

	Single Family, 4 bedroom, 5 bathroom, built in 1999, 7,400 sq. ft., 2.9 acres, gourmet kitchen, screen porch, 3 fireplaces, near Square Lake
	Asking price: $740,000 Approximate Value: $1,228,000 Equity: $488,000 (40%)
	ID# 3849494	Request More Information

The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity℠ Program of the Regional Multiple Listing Service of Minnesota, Inc. All real estate listings are marked with the Broker Reciprocity℠ logo, and detailed information about them includes the name of the listing brokers. Information deemed reliable but not guaranteed. Copyright 2009 Regional Multiple Listing Service of Minnesota, Inc. All rights reserved. Listing provided by RE/MAX Results. Equity amount is based of tax records and may or may not reflect current market value. A competitive or comparative market analysis, appraisal, CMA or home valuation was not performed on the property.

Woodbury Bank Owned Townhome

Ben Goheen — Thu, 05 Nov 2009 21:43:51 +0000

	Townhome, 2 bedroom, 1.5 bathroom, built in 1989, 1,151 sq. ft., private patio, fireplace, vaulted ceilings – near shopping and highways
	Asking price: $69,900 Approximate Value: $161,000 Equity: $91,100 (56%)
	ID# 3853387	Request More Information

The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity℠ Program of the Regional Multiple Listing Service of Minnesota, Inc. All real estate listings are marked with the Broker Reciprocity℠ logo, and detailed information about them includes the name of the listing brokers. Information deemed reliable but not guaranteed. Copyright 2009 Regional Multiple Listing Service of Minnesota, Inc. All rights reserved. Listing provided by Anderson Johnson Real Estate. Equity amount is based of tax records and may or may not reflect current market value. A competitive or comparative market analysis, appraisal, CMA or home valuation was not performed on the property.

Bank Owned Duplex

Ben Goheen — Thu, 29 Oct 2009 13:25:51 +0000

	Duplex, 4 bedroom, 2 bathroom, built in 1870, 2,177 sq. ft., estimated monthly rent is $1,925
	Asking price: $150,000 Approximate Value: $209,000 Equity: $59,000 (28%) *
	ID# 3841117	Request More Information

The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity℠ Program of the Regional Multiple Listing Service of Minnesota, Inc. All real estate listings are marked with the Broker Reciprocity℠ logo, and detailed information about them includes the name of the listing brokers. Information deemed reliable but not guaranteed. Copyright 2009 Regional Multiple Listing Service of Minnesota, Inc. All rights reserved. Listing provided by Mackaby Realty. *Equity amount is based of tax records and may or may not reflect current market value. A competitive or comparative market analysis, appraisal, CMA or home valuation was not performed on the property.

Bank Owned Victorian in Stillwater

Ben Goheen — Tue, 27 Oct 2009 13:37:23 +0000

	Single Family, 5 bedroom, 2.75 bathroom, built in 1890, 3,488 sq. ft., close to Downtown
	Asking price: $365,000 Approximate Value: $441,000 Equity: $76,000 (17%) *
	ID# 3821728	Request More Information

The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity℠ Program of the Regional Multiple Listing Service of Minnesota, Inc. All real estate listings are marked with the Broker Reciprocity℠ logo, and detailed information about them includes the name of the listing brokers. Information deemed reliable but not guaranteed. Copyright 2009 Regional Multiple Listing Service of Minnesota, Inc. All rights reserved. Listing provided by RE/MAX Resources. *Equity amount is based of tax records and may or may not reflect current market value. A competitive or comparative market analysis, appraisal, CMA or home valuation was not performed on the property.

Oak Park Heights Bank Owned Condo

Ben Goheen — Sun, 25 Oct 2009 11:51:53 +0000

	Condo, 2 bedroom, 1.75 bathroom, built in 2006, 1,208 sq. ft., bank will pay 3% in closing costs and a home warranty
	Asking price: $104,500 Approximate Value: $259,000 Equity: $154,500 (59%) *
	ID# 3849961	Request More Information

The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity℠ Program of the Regional Multiple Listing Service of Minnesota, Inc. All real estate listings are marked with the Broker Reciprocity℠ logo, and detailed information about them includes the name of the listing brokers. Information deemed reliable but not guaranteed. Copyright 2009 Regional Multiple Listing Service of Minnesota, Inc. All rights reserved. Listing provided by Minnesota Realty Network. *Equity amount is based of tax records and may or may not reflect current market value. A competitive or comparative market analysis, appraisal, CMA or home valuation was not performed on the property.

South Hill Bank Owned – Reduced $100,000

Ben Goheen — Sat, 24 Oct 2009 14:53:36 +0000

	Single Family, 4 bedroom, 3.5 bathroom, built in 2005, 3,720 sq. ft., recently reduced by $100,000, brand new – just finish and enjoy
	Asking price: $270,000 Approximate Value: $281,000 Equity: $11,000 (4%) *
	ID# 3618278	Request More Information

The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity℠ Program of the Regional Multiple Listing Service of Minnesota, Inc. All real estate listings are marked with the Broker Reciprocity℠ logo, and detailed information about them includes the name of the listing brokers. Information deemed reliable but not guaranteed. Copyright 2009 Regional Multiple Listing Service of Minnesota, Inc. All rights reserved. Listing provided by Minnesota Premier Realty, Inc. *Equity amount is based of tax records and may or may not reflect current market value. A competitive or comparative market analysis, appraisal, CMA or home valuation was not performed on the property.

North Hill Foreclosure – $93k in Equity

Ben Goheen — Fri, 23 Oct 2009 22:07:25 +0000

	Single Family, 3 bedroom, 2 bathroom, built in 1908, 1,988 sq. ft., located on the North Hill
	Asking price: $123,900 Approximate Value: $217,000 Equity: $93,100 (43%) *
	ID# 3848209	Request More Information

The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity℠ Program of the Regional Multiple Listing Service of Minnesota, Inc. All real estate listings are marked with the Broker Reciprocity℠ logo, and detailed information about them includes the name of the listing brokers. Information deemed reliable but not guaranteed. Copyright 2009 Regional Multiple Listing Service of Minnesota, Inc. All rights reserved. Listing provided by RE/MAX Resources. *Equity amount is based of tax records and may or may not reflect current market value. A competitive or comparative market analysis, appraisal, CMA or home valuation was not performed on the property.

Top foreclosure scams

Ben Goheen — Thu, 28 May 2009 02:58:13 +0000

Today Show real estate expert Barbara Corcoran explains the top foreclosure scams and how to avoid them. Forward this video to anyone you know who is struggling with mortgage payments.

One of the major scams to look out for is companies that ask for money up-front – legitimate organizations will never ask for this. Run the other way if someone offers to help you save your house but wants you to pay them first. They’ll end up taking your money and will fail to deliver results.

Secondly, don’t fall for companies that give themselves familiar names that appear to be a government agency. They are designed to be misleading. To find a HUD approved counselor visit www.MakingHomeAffordable.gov.