My Thoughts On Real Estate Today

I thought I'd start by attaching an article from the New York Times about 'The state of the real estate market', or 'Foreclosures are EVERYWHERE', OR , 'How to avoid....'.  Something about my topic for this blog.  What is my topic?  Glad you asked.  I plan to explore the current events of real estate with a focus on short sales.  That's the plan and I figured there's always a plethora of articles to choose from and share.  So imagine my surprise when I looked for the 'most searched' words and phrases in the Times and no where was there a recent article on real estate, short sales, foreclosures, local economy, etc.  Really!   Here's 1-10 of the last 24 hours.  They are: "Tiger Woods, Amanda Knox, Obama, Health care, China, December 5, 2009, marriage, education, November 4, 2009, Afganistan."  Some of the next 40 include: "crossword, women, modern love, Korea, drugs, turkey, sex(of course), science, obituaries", yada, yada, yada......  Heck, I don't even see "technology" being searched. 

Whew!  That's a relief.  Here I am in my own little real estate world thinking that everyone wants to know the state of the markets, when to buy and when to sell.  How do I keep my house?  How do I sell my house and not go into foreclosure?  It's not the case and that, my friends, is a huge relief.

Who is Michael Traum?  I'm an open book who's been selling real estate since 1994.  I've been having a good time in high times and the current low.  I am certified in selling distressed properties (CDPE).  I am a fan of social media and enjoy the insights of Ron Ploof, Andy Andrews, David Liniger, and David Pogue. 

Lot's to share and discuss about short sales.  The blog is designed to answer the same questions I hear over and over again.  What is a short sale?  How will it affect credit?  Is bankruptcy better?  What about foreclosure?  Will the bank really accept less than what is owed, and not come after it later? 

I will be quoting others and giving you my take on the above but for today I just thought I'd get my fingers moving to get started.  Nothing fancy here.  Probably nothing funny.  Short sales is not funny.  I am here to help.

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. Contrary to the past, banks and lenders are very receptive to considering this option.   Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here's a more official definition:

• A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
• A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:

• Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
• Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
• Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.  

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. A Realtor who holds the CDPE® Designation is ready to take a leadership role between a buyer, seller, and a lending institurion to identify all possible options and, when possible, assist in the quick execution of a short sale transaction.