Susan Halverson

Real Estate updates on Clermont FL Properties

WHAT IS A “SHORT SALE?” September 22, 2010

A short sale is a situation in which the seller owes more money on the loan than the sale of the property will likely produce on the market and the seller is unable or willing to bring money to closing. In a short sale, the lender has not yet foreclosed on the property, which creates a window of opportunity for the owner to sell the property in order to at least partially get the lender what is owed.

Because short sales may require multiple approvals and can be extremely time intensive, short sales are considered by many real estate practitioners to be complicated transactions. So what makes for a successful short sale? As a general rule, successful short sales reflect the following:

1. The property is worth less than owned.

2. The seller has some hardship (death, divorce, loss of job, medical bills, etc…) that makes it impossible or extremely impractical for the seller to keep the property.

3. The seller is cooperative and willing to work with the Real Estate agents to package the short sale.

4. The lender is contacted and expresses willingness to entertain a short sale.

5. The property is listed, with appropriate caveats and protections for the seller, properly priced, and effectively marketed.

6. The lender is presented with a contract, accepted, signed and dated by the seller, along with a completed short sale packet and narrative explaining the necessity and desirability of the proposed short sale.

7. With lender approval in writing, the offer and sale closes as usual.

If you want to take advantage of a short sale because of the price, I will be happy to walk you through that. The main factors in a short sale are “TIME and CONDITION”. Usually they take a long time and the condition is not favorable. The buyer with the most “Patience”, will get the deal if they are willing to wait. Maybe 3-9 months, depending on how far along the process is when the offer is made and how many loans are on the property.

The process for putting in a bid on a short is very similar to a non-short sale (a few different forms, they are all “as is” contracts), except a letter of loan approval or proof of payment (on a cash offer) needs to accompany the offer. Many short sales now are such good prices that when they hit the market they may have numerous offers the first or second day. As soon as the seller signs the papers and they go to the bank the property then goes “Pending” which means it is off the market (not active and going into contract) and generally won’t be shown any longer and no more offers will be submitted. The bank can make a counter offer depending on what is owed on the property and what they feel the “market value” is. They will order a BPO (Broker price opinion) which will tell them the “market value” of the property. The most desirable offer to the bank is a “cash” offer with no contingencies.

If a Short sale is not permitted by a bank, the next recourse is “Foreclosure”. Once foreclosure is completed a property becomes a “REO” (Real Estate Owned, by the bank). One of the main differences between a short sale and foreclosure for the seller is the “Credit” hit that is taken. Short sale recovery time is approximately 1-3 years and a foreclosure can be 7-10 years.

There is always the possibility of a seller getting a deficiency judgment on the balance of the loan owned, it is recommended to consult with an attorney or financial adviser for any legal/financial recommendations.


KW “You are not a leader when you have a position or title. You are a leader when others look to you for direction.” September 14, 2010

Filed under: Uncategorized — Susan Halverson @ 6:06 am

I am on my way to Austin, Can’t wait, CAN’T WAIT, CAN’T WAIT!!!
kimbraness says:
September 13, 2010 at 8:42 pm
I am following online and in heart. Thanks for the motivational messages – I can feel the energy that comes through even online. I can’t begin to imagine the excitement of being in the room.

Just a few highlights that spoke to me:

Mark Willis shared “KW is on the verge on something really incredible… we are on the threshold of greatness with opportunities like we have never seen before.” He quoted Steve Murray, editor of REAL Trends in saying “We are about to see the greatest buyer’s market that we’ve ever seen in the history of our lives.” Willis included that “Keller Williams is shining through with positive energy at a time when the rest of the market has lost energy and steam… KW continues to out pace the industry, ad evidenced by an 8.5% increase in agent count year-to-date, vs. a 3.5% drop in NAR membership.”
Not to mention the profit share program and other records and reports where KW has excelled.

But the following messages really got my attention – atop all the growing numbers is:
“You are not a leader when you have a position or title. You are a leader when others look to you for direction.”

“I would rather be known as a company of good citizens rather than a company of top sellers.” Mark Willis

Thanks to the KW family for investing in the lives of your community.

“Don’t talk about it. BE about it.”


Sale Leaseback Transactions Today: Monetizing Real Estate Assets September 12, 2010

A troubled economy and a chilly borrowing environment require a re-thinking of how capital and debt are used in your business. Monetizing real estate assets by sale-leaseback transactions may free up needed capital to invest in your business, particularly if the real estate is undervalued.
This teleconference will help you understand when and where sale-leaseback transactions on real estate assets may be better than debt financing or ownership. Companies have significant capital outlays in real estate that can be redeployed in their core business. Understand the basic financial and accounting rules governing treatment of sale-leaseback transactions and operating leases. Learn about the most common sale leaseback structures that are available, how they work and whether they would be advantageous for your business. Also, for real estate investors (large and small), learn more about the availability of Sectio n 1031 exchange property from companies with sale-leaseback and net-leased property programs.
David W. Green, Stoel Rives LLP
Liese S. Horn, Private Practice



Pessimists are implying that the housing market will never get any better and housing will always be a lousy investment.

Are they right? Of course not, say experts at the Motley Fool finance Web site.

In fact, the Fools predict that pretty soon housing will be a great investment because prices will have fallen to the point where homes are cheap.

Then as now, the Fools say the key to buying a home that is a good deal will be:

• Location
• Don’t overpay
• Buy what you can afford

If the price goes up, great, the Fools say. If not, buyers will be OK because they have picked a great place to live.

Source: The Motley Fool (08/23/2010)


FLORIDA consumer confidence up 1 point! September 1, 2010

GAINESVILLE, Fla. – Sept. 1, 2010 – With no clear signs that the nation is either recovering or entering another recession, Florida’s consumer confidence remained stagnant, inching up only one point to 67 in August, according to a new University of Florida survey.

“Consumer confidence is entrenched at a relatively low level,” says Chris McCarty, director of UF’s Survey Research Center in the Bureau of Economic and Business Research. “With the exception of a jump in April due almost entirely to the housing and appliance rebate programs, consumer confidence has been stuck in the upper 60s to low 70s for the past year. We are in the economic doldrums.”

Two of the five components of the index increased, while one decreased and two remained unchanged.

Perceptions of personal finances now compared with a year ago rose four points to 52 from a record low in July, while perceptions of personal finances a year from now rose three points to 78.

“On the bright side, the oil spill has been contained and this is probably part of the reason for increased optimism about personal finances,” McCarty says. “Although the long-term effects of the spill are not yet known, there is evidence that tourists now realize that Florida beaches are, for the most part, unaffected.”

Remaining unchanged were perceptions of U.S. economic conditions over the next year at 61 and perceptions of U.S. economic conditions over the next five years at 70. The only component to decline was perceptions about whether it’s a good time to buy big-ticket consumer items, which fell two points to 73.

“While the mix among the five components has changed, overall consumers’ attitudes reflect other economic indicators that don’t show a clear path out of recovery or back to another recession,” McCarty says. Unemployment, the stock market and housing prices all add to the state’s economic uncertainty.

Florida’s unemployment rate still remains high, having risen .1 to 11.5 percent in July, McCarty said. Also last month, the stock market fluctuated wildly, mostly downward, as unexpectedly pessimistic news about existing and new home sales rekindled fears of a double-dip recession, he says.

In other bad news, housing prices fell in July to a median price of $138,000, erasing gains from the spring that were pushed up by the federal rebate program, McCarty says. However, it seems unlikely that housing prices will continue to decline in the short term. Prices over the past year have remained relatively flat, compared with the volatility over the past three years. In addition, unemployment is not rising dramatically, mortgage rates are at record lows and the containment of the oil spill means it will be less likely to affect housing prices on the Gulf. However, if unemployment starts creeping back up, there could be a problem, McCarty adds.

On the positive side, inflation remains in check despite the massive infusions of capital from the stimulus and bailout packages. Taxable sales for June, the latest month for which figures are available, appear on track, and as other news such as the November elections dominates the headlines, the oil spill will become less of a factor for tourists and people who interested in moving to Florida.

Nationally, consumer confidence, as measured by the University of Michigan’s index, which was released on Friday, mirrors Florida, with a one-point increase, although that index is about two points higher overall, he said.

The research center conducts the Florida Consumer Attitude Survey monthly. Respondents are 18 or older and live in households telephoned randomly. The preliminary index for August was 425 responses.

© 2010 Florida Realtors®