Free Short Sale Seminar

To Treasure Valley Real Estate Agents:

You are cordially invited to a FREE SEMINAR: "The Buyer Agent's Guide to Short Sale Offers". This event will be held at Pioneer Title in Caldwell on Kimball on May 1st, 2009 from 9a to 11a. Click here for more details. 

Michael Hon
Associate Broker - MBA, GRI
Certified Short Sale Specialist®
Investment Property Consultant
Office 208 939 9033

@ Keller Williams Realty Boise

Thinking of Making an Offer on a Short Sale? What You Need to Know

Are you looking to buy a new home? Are you thinking that now's a great time to find bargains? That's true, but it pays to know a little about the seller's situation before you make an offer. 

If a home is being sold for below what the current seller owes on the property—and the seller does not have other funds to make up the difference at closing—the sale is considered a short sale. Many more home owners are finding themselves in this situation due to a number of factors, including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values in a slower real estate market.

 A short sale is different from a foreclosure, which is when the seller's lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase.

You're a good candidate for a short-sale purchase if:

·          You're very patient. Even after you come to agreement with the seller to buy a short-sale property, the seller’s lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short-sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale.

·          Your financing is in order. Lenders like cash offers. But even if you can’t pay all cash for a short-sale property, it’s important to show you are well qualified and your financing is set. If you're preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably than that of a buyer whose financing is less secure.

·          You don’t have any contingencies. If you have a home to sell before you can close on the purchase of the short-sale property—or you need to be in your new home by a certain time—a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms.

If you're serious about purchasing a short-sale property, it's important for you to have expert assistance. Here are some people you want to work with:

·          Experienced real estate attorney. Only about two out of five short sales are approved by lenders. But a good real estate attorney who's knowledgeable about the short-sale process will increase your chances getting an approved contract. Also, if you want any provisions or very specialized language written into the purchase contract, a real estate attorney is essential throughout the negotiation.

·          A qualified real estate professional.* You may have a close friend or relative in real estate, but if that person doesn’t know anything about short sales, working with him or her may hurt your chances of a successful closing. Interview a few practitioners and ask them how many buyers they've represented in a short sale and, of those, how many have successfully closed. A qualified real estate professional will be able to show you short-sale homes, help negotiate the purchase when you find the property you want to buy, and smooth communications with the lender. (All MLSs permit, and some now require, special notations to indicate that a listing is a short sale. There also are certain phrases you can watch for, such as “lender approval required.”)

·          Title officer. It’s a good idea to have a title officer do an initial title search on a short-sale property to see all the liens attached to the property. If there are multiple lien holders (e.g., second or third mortgage or lines of credit, real estate tax lien, mechanic’s lien, homeowners association lien, etc.), it's much tougher to get that short sale contract to the closing table. Any of the lien holders could put a kink in the process even after you’ve waited for months for lender approval. If you don’t know a title officer, your real estate attorney or real estate professional should be able to recommend a few.

Some of the other risks faced by buyers of short-sale properties include:

·          Potential for rejection. Lenders want to minimize their losses as much as possible. If you make an offer tremendously lower than the fair market value of the home, chances are that your offer will be rejected and you’ll have wasted months. Or the lender could make a counteroffer, which will lengthen the process.

·          Bad terms. Even when a lender approves a short sale, it could require that the sellers sign a promissory note to repay the deficient amount of the loan, which may not be acceptable to some financially desperate sellers. In that case, the sellers may refuse to go through with the short sale. Lenders also can change any of the terms of the contract that you’ve already negotiated, which may not be agreeable to you.

·          No repairs or repair credits. You will most likely be asked to take the property “as is.” Lenders are already taking a loss on the property and may not agree to requests for repair credits.

The risks of a short sale are considerable. But if you have the time, patience, and iron will to see it through, a short sale can be a win-win for you and the sellers

* Not all real estate practitioners are REALTORS®. A REALTOR® is a member of the NATIONAL ASSOCIATION OF REALTORS® and is bound by NAR’s strict code of ethics.

Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA. 

Please call me at 208 939 9033 ext 2 or email me at michael.hon@IronEagleRE.com. Please visit my website at IronEagleRE.com or

Michael Hon
Broker - MBA, GRI
IRON EAGLE REALTY
Certified Short Sale Specialist
Investment Property Consultant
Office 208 939 9033 ext 2

5823 Millstream, Garden City, ID

3 bedroom 2 bath 1618 SF blt 1978

This property makes for an interesting story. One of my agents, Dan Poole, had a client that drove by this empty house in the "GC". They were very interested so Dan called me to help him get some info on the property. I found out that it was going to auction on May 29th. I found the owners; this was a rental property / fixer upper gone awry. Payments have not been made for several months and the owners were resolved to let it go. 

With one phone call I convinced them it was more beneficial to go the short sale route; it benefits them from a credit perspective (2 years vs 7 years) and benefits the community. So now we have it listed with an offer to be submitted to the bank. Another foreclosure (potentially) bites the dust!!! Stay tuned. 

Please call me at 208 939 9033 ext 2 or email me at michael.hon@IronEagleRE.com. Please visit my website at IronEagleRE.com or 

Michael Hon
Broker - MBA, GRI
IRON EAGLE REALTY
Certified Short Sale Specialist
Investment Property Consultant
Office 208 939 9033 ext 2

2447 E Parkside Dr., Boise, ID

2320 SF 4 Br 3 ba 0.21 Acres 3 Car Garage Asking $330,000

Beautiful views and a steal of a deal! This desireable foothills location is sure to please. Updates throughout the home, daylight basement with separate entrance, fantastic deck perfect for entertaining! A must see.

Please call me at 208 939 9033 ext 2 or email me at michael.hon@IronEagleRE.com. Please visit my website at IronEagleRE.com.

Michael Hon
Broker - MBA, GRI
IRON EAGLE REALTY
Certified Short Sale Specialist
Investment Property Consultant
Office 208 939 9033 ext 2

1505 E Roanoke, Boise, ID 83712 Asking $349,000

2980 SF 6 Br 3.5 Ba Two Story 0.24 acres. 2 Car Garage 

Asking $349,000

Priced to Sell! Ready to Move In! Come Home to the Foothills. Wonderful mature neighborhood. This home was renovated in 2004. Modern kitchen with a warm and cozy fireplace. Stainless steel appliances. Tiled floors in the master bath. Upstairs loft for the kids. Perfect for entertaining. Shade trees in spacious backyard. Use one of the bedrooms as your home office. BTVA

Please call me at 208 939 9033 ext 2 or email me at michael.hon@IronEagleRE.com. Please visit my website at IronEagleRE.com or

Michael Hon
Broker - MBA, GRI
IRON EAGLE REALTY
Certified Short Sale Specialist
Investment Property Consultant
Office 208 939 9033 ext 2

1805 Overland, Meridian Short Sale Fourplex $325,000

Four year NEW Fourplex in Meridian, ID. Centrally located near two brand new business parks, movie theatre/restaurant complex, largest regional medical center in SW Idaho and freeway. Development has clubhouse, pool and weight room. This fourplex is in a great location. Asking $325,000. All 4 units are 2 br 1 ba. 

Please call me at 208 939 9033 ext 2 or email me at michael.hon@IronEagleRE.com. Please visit my website at IronEagleRE.com or

Michael Hon
Broker - MBA, GRI
IRON EAGLE REALTY
Certified Short Sale Specialist
Investment Property Consultant
Office 208 939 9033 ext 2

1505 E Roanoke, Boise, ID Asking $349,000

Priced to Sell! Ready to Move In! Come Home to the Foothills. Wonderful mature neighborhood. This home was renovated in 2004. Modern kitchen with a warm and cozy fireplace. Stainless steel appliances. Tiled floors in the master bath. Upstairs loft for the kids. Perfect for entertaining. Shade trees in spacious backyard. Use one of the bedrooms as your home office. 

Click here for listing info. BTVA

Please call me at 208 939 9033 ext 2 or email me at michael.hon@IronEagleRE.com. Please visit my website at IronEagleRE.com or

Michael Hon
Broker - MBA, GRI
IRON EAGLE REALTY
Certified Short Sale Specialist
Investment Property Consultant
Office 208 939 9033 ext 2

Pres. Obama's Housing Affordability and Stability Plan

I really hope Pres. Obama is smart enough to know that this first plan of his to rescue homeowners in foreclosure really misses the mark. If you bought your home between 2005 and 2007, there is no help for you. The loans on these purchases are way above the 105% maximum in the plan. As for homeowners in Boise, Nampa, Caldwell, Eagle, Meridian and Kuna Idaho, this plan does not help if they bought homes within those years. 

If you know of someone who is facing foreclosure, please call me at 208 939 9033 ext 2 or email me at michael.hon@IronEagleRE.com. Please visit my website at IronEagleRE.com or

Michael Hon
Broker - MBA, GRI
IRON EAGLE REALTY
Certified Short Sale Specialist
Investment Property Consultant
Office 208 939 9033 ext 2

Eagle Home Report

If you are looking to buy in Eagle, there are a ton of deals. 

Currently there are 497 active listings of which 40 are REOs and 82 are short sales. If you are interested in my weekly foreclosure and short sale list, please click here or email me to get on the weekly distribution list. If you want to search the MLS, please click here. Please call me at 208 939 9033 ext 2 or email me at michael.hon@IronEagleRE.com. Please visit my website at IronEagleRE.com or LinkedIn Profile

Michael Hon
Broker - MBA, GRI
IRON EAGLE REALTY
Certified Short Sale Specialist
Investment Property Consultant
Office 208 939 9033 ext 2

February Foreclosure and Short Sales Stats

This month I have decided to start reporting statistics on foreclosures and short sales in the Treasure Valley (i.e. - Ada and Canyon County only). These are stats from the Intermountain MLS. Here it goes:

Currently

REO  

595 Active 

247 Pending  

32 Sold in Jan. 

128 Sold in Feb

Short Sale 

1815 Active 

235 Pending  

48 Sold in Jan.  

58 Sold in Feb. 

138 Exp in Jan.  

42 Exp. in Feb. 

What do these numbers mean? They mean that we losing the battle. Banks need to smarten up and accept more short sales. Agents need to get a better understanding of how to work a short sale both from the buy side and list side. 

Please call me at 208 939 9033 ext 2 or email me at michael.hon@IronEagleRE.com. Please visit my website at IronEagleRE.com or LinkedIn Profile

Michael Hon
Broker - MBA, GRI
IRON EAGLE REALTY
Certified Short Sale Specialist
Investment Property Consultant
Office 208 939 9033 ext 2

$114,500 3 br 2 ba Craftsman in Nampa

1304 Sannetta, Nampa, ID 83651

3 Br 2 Ba 2 Car Garage, Single Level, 1406 SF

Short Sale. Currently tenant occupied. Stainless steel appliances and hardwood floors in kitchen. Open and spacious dining and living room area. Nice and new. Centrally located near shopping and freeway access. Please call me at 208 939 9033 ext 2 or email me at michael.hon@IronEagleRE.com. Please visit my website at IronEagleRE.com or LinkedIn Profile

Michael Hon
Broker - MBA, GRI
IRON EAGLE REALTY
Certified Short Sale Specialist
Investment Property Consultant
Office 208 939 9033 ext 2

My War on Foreclosures

According to a report on 60 Minutes last Dec. called The Mortgage Meltdown, the number of foreclosures that we will face in the next 12 - 36 months is frightening. The next wave of loan defaults will come from Alt-A and Payment Option Arm loans.


Watch CBS Videos Online

How do we deal with this next wave? Pres. Obama's Housing Affordability and Stability plan is a start but I think the administrative aspect is unwieldy at best. There are still a huge number of homeowners that will face foreclosure no matter what. Homeowners that don't meet the criteria of the HASP or those that don't have FNMA or FRMC backed loans. If you think about it, it's almost as devastating as terrorists driving jumbo jets into the World Trade Center. A veritable foreclosure tsunami.

How do we stop this wave? Can we stop it or slow it down? To take a line from Pres. Obama, Yes We Can; one real estate short sale at a time.

I know there are thousands of other Real Estate Brokers / Agents like myself that are focusing on successfully closing short sales across the country. The lenders that hold these loans are for the most part, not very helpful. Their organizations are byzantine at best and they seem to be adding gasoline to the fire by not cooperating with the foot soldiers in this war, i.e. - my fellow RE Brokers and Agents across the country.

This is why I am focusing my real estate practice on helping distressed homeowners short sell their properties. This is My War on Foreclosures. Please visit my website IronEagleRE.com, or my LinkedIn profile. 

Regards

Michael Hon

Broker / Owner

Iron Eagle Realty

Certified Short Sale SpecialistTM

Homeowner Affordability and Stability Plan

Dear Readers:

Here is a link to the new Homeowner Affordability and Stability Plan issued by the Obama Administration today. Here is another link to a NY Times article about the plan.

Regards
Mike Hon
Certified Short Sale Specialist
Iron Eagle Realty