Friday, December 11, 2009

What is a short sale, REO or Foreclosure home?

So in addition to taking on learning all the real estate terms, contracts and procedures of buying or selling a home there are a slew of new processes taking place in light of the current market. It can be overwhelming trying to figure it all out!! But if you have a trusted realtor helping you through you can navigate the waters much more easily and successfully. Here are a few of the transactions that are frequent in our current market. Please feel free to ask any questions if you have them. It is likely other readers are wondering the same thing!
Short Sales- Often buyer think a short sale means a sale which will close in a "short period" of time. This is very much not the case..a short sale occurs when a seller is upside down in their mortgage (owing more for their home than whats it is worth). In this case if the seller needs to sell and can not sell for enough to pay off their mortgage and can not come up with the money for the balance they may consider a short sale. This usually occurs once the seller has fallen behind on payments and is in default.

In a short sale the home is put on the market for what the seller and realtor determine is market value (occasionally much less than market value). Once they recieve an offer they submit the offer and several financial documents from the seller showing why he can not satisfy his mortgage and prrof of the reduced value of the home in comparison to what is owed. After this mountain of paperwork is submitted to the lender you wait. The file appears to go into a black hole for several weeks or months while bank try to catch up with the onslaught of short sales they are processing. It is likely each processor has 100-200 files he is working on at the same time. At some point the bank will assign a negotiator and order BPO'S (broker price opinion).For a BPO a bank will hire 2 or more realtors to go see the property and prepare a market analysis with their opinion of a fair price. With this information the negotiator will determine if it is in the banks best interest to accept the "short sale" and let the seller out of his mortgage even though the bank will come up "short" their money due or foreclose. The seller does still own the home through this whole process until it is foreclosed. Although the seller may have approved your offer in a short sale you do not have a contract until the bank or mortgagor accepts in writing.
When offering on a short sale it is important to have a realtor working for you to find out how likely you are of getting your offer accepted. Sellers can accept multiple offers on their home and they can choose whether to submit those to the bank or not. Some realtors will only submit the first offer to the bank and hold the others as back ups. Once the bank approves the first offer if the first buyer can no longer complete the sale they will go to the second offer.
Some realtors will send all offers to the bank and the bank will choose from the multiple offer or ask for highest and best which creates a blind bidding type situation.
I can let you know what stage the short sale is in to create realistic expectations as to how long you may wait and if you have a good chance at getting the home.
The most frusterating thing on short sales for buyers and realtors is the waiting for the bank to respond. There are no threats you can give to make them respond quicker. They will simply take as long as they'll take and you either wait for the deal or not and they'll take the next buyer.
Important for buyers to realize is that until the bank accepts your offer you do not have a valid contract. You are free to move onto another homeif you wish. However if you no longet intend to purchase a short sale you have an offer on it is good form to let the sellers agent know so they can get another offer if needed for their seller.

REO or Foreclosure- these are home that have already gone through the foreclosure process and the bank is now the owner of the home. The banks do not want to be property owners so they are very motivated to get the home off their books as soon as possible. Many buyers think they need to use gimmicky websites and such to find these homes but the truth is bank use realtors to sell their homes and they are listed through the MLS just like any other home. REO homes can close as quickly as a tradtional sale. You can expect the bank to take 3-5 days to respond to your offer. These homes if priced well go quick! So if you see one you like, walk through and offer quickly before you are beat out. There are often multiple offers on the best ones. You will get the best price by getting it under contract quickly to avoid a bidding war with other buyers. Banks are looking for the best price with easiest terms. So make your offer clean and strong to lock in these deals quick!

If you have any questions please feel free to post and I'll be happy to answer. If you are interested in seeing any homes let me know I'll be happy to help you find just what your looking for at a price you'll love!

Tax Credit Extended and Expanded to Current Home Owners

New Tax Credit has been extended
$8000 for first time home buyers or those who have not owned a home in the past 3 years.
$6500 if you have lived in your primary residence for 5 of the past 8 years.
For more info go to

Thursday, August 27, 2009

Unbelievable Mid Century Modern Renovated Home in Salt Lake City

The Benchmark has been set for what can be done with some of the great MCM existing homes we have available here in Utah! I must have gone back and looked at these pictures 20 times in the past 2 days, this home actually gave me chills and the nagging desire to clean and declutter my home! This home was built in 1957 and the homeowner was kind enough to share some before pics. He is an absolute artist! I can't imagine anything more beautiful! And certainly unique. I find it much more exciting than I do any of the new huge custom homes. I can't imagine leaving this home but it is actually for sale! 3 bedrooms/3 baths/2600 sq. ft/.21 acre lot and a swimming pool with pool cabana. Offered at $749,000. Enjoy the pics!

Tuesday, August 18, 2009

$8000. First Time Home Buyer Tax Credit

Time is running out to take advantage of this years $8000. Tax Credit!! You must close on your home by Nov. 30 of this year. If you have not owned a home in the past 3 years or are in the market for your first home this is an incredible market to take advantage of!! If you have any questions regarding this please contact me via email phone or blog and I'll be happy to answer your questions.

Monday, July 27, 2009

Vintage Fully Restored Payson Cottage

This home is so cute!! Fully Renovated in the past few years with new roof, electrical, plumbing windows and more. Still has the charm of a turn of the century home without the head aches!! Nice big yard too!! In a historical area filled with Victorians, Bungalows and more. Close to the old main street and city center.

3 Bedrooms, 1 Bath, 1068 sq.ft $175,000

191 N 600 E Payson, UT

New Listing -Edgemont-Provo

If you've ever drove through this neighborhood you'll definitely see the appeal! Super quiet neighborhood nestled by Provo Canyon with large manicured yards and mature landscaping. Birds twitter all day in the spacious green yards. Take a look and you'll see the 1950's Mid-Century Modern Influences. I was lucky enough to have a look at the original model home brochure for this development. The homes were advertised as "The Modern Storage Home". all the interior walls feature built-in storage compartments. The layout is very efficient as well. I live in one and I need to use heat or air only on the extreme days. The homes have large windows in the living room to take advantage of the natural light and views. All the rooms have natural light streaming though. Gorgeous original hardwood floors and natural stone fireplace. Super Cute! Plenty of Original Features Remain! Feel Free to contact me with any questions!

361 E 4380 N Provo, UT 84604
3 bedrooms, 1.5 baths, 1350 sq.ft, .26 acre lot $199,900

Saturday, July 25, 2009

Cool Uses for Green Products. Cali Bamboo

If you are looking for some green products that are absolutely gorgeous and good for the earth check out Cali Bamboo. Their prices are really good and they are very easy to work with. I love going through their photo galleries. I have about 10 years of future projects that have been inspired by the pics I've seen there. We've recently installed a bamboo fence at our home. The price was comparable to other products out there but it looks much cooler and is good for the environment to boot!! They now have decking countertops and more!! Check it out just for the fun of it!! I worked with Eric Ledbetter and he was fantastic! You can find the link for them on my site

Thursday, June 25, 2009

Cork Floors-Gorgeous Old New Green Floors!

Thinking of Green Flooring? Consider Cork. Since the cork is only stripped from the bark which grows back rather than requiring a tree to cut down it is a sustainable product. Fantastic for insualtion and sound barriers it's also a gorgeous and easy to care for floor! I've seen it priced as low as $2 sq. ft to boot. Several have a lock and click installation process making it a easy do it yourself job to tackle. Check out Globus Cork for great pictures and more info link available through my website

Modern Sheds

I Love these! I want to use one to create a huge master suite! I can't believe how stylish they are. It would look great standing alone as a guest house/cabana . I don't care what I use it for I just want it!! link on my site.

North Orem Mid Century Rambler

Check out this new listing I have in NE Orem. Great Area and wonderful potential for a real modern look. My Favorite Feature is the Family Room with Vaulted Post and Beam Ceilings and floor to ceiling windows. All the rooms are really spacious as well. The master has sliding doors leading out the private patio. If your looking for something unspoiled you can put your own stamp that has a great floorplan and tons of room to grow you'll want to see this.
$260,000. 3568 sq. ft. .25 acre lot. 4 Bedrooms 3baths You can view the full listing on the home page

Tuesday, June 23, 2009

Vintage, Period, and Mid-Century Homes in Utah

I'm searching online and I see there are people here in Utah County who appreciate older homes!! I see so many cool homes with a ton of potential who just really need some love and I get so inpsired but I can't restore them all myself!! Generally here in Utah County when people are looking they want new. The only time older homes are considered is when price comes in. Then of course the plan is to make it look as new as possible! If you love vintage or mid century modern homes bargains abound in Utah County and your likely to be the only buyer who appreciates it for what it is. Of course like I mentioned above it will likely need some love but many homes in my area are still owned by the original owners and wonderfully maintained! I've seen homes 50+ years in better shape than homes less than 3 years old!!

Well I just love old homes period. So if you see something great please post pics! If you'd like to find something I'd love to help you with that!
You can contact me here or get info about home buying on my site