When is a Short Sale Not a Short Sale?

True story…Seller is an elderly widow.  Her husband became quite ill and they spent every penny of their savings trying to return him to health. After his death she did the best she could to hang on and make things work. She rented out all the extra bedrooms, turned the thermostat down, and crimped on every expenditure. It was a slowly losing battle and finally she just could not do it any longer. She put the house on the market as a short sale.

The house was listed at $229K, she owed a little over $300K to the bank.  Her home had lots of delayed maintenance but was in a good area of Santa Rosa and was basically sound construction.  7 days and 19 offers later, she accepted an offer for $345K curing her short sale and paying all her expenses related to the sale.  She also side-stepped a potential credit issue.

If you haven’t taken a look lately, there is a huge demand for homes in the $500s and below, but very little on the market.  The offers are aggressive…cash, as is, no appraisal and a fast close.  This could be your chance to cure your financial situation and get out from under your mortgage.

Less than two miles from that house and within the last 3 months this happened…

  • 429 Bosley (South of A neighborhood), an early 1900s bungalow listed for $229K as a short sale got 33 offers and finished up in contract at $329K.
  • 521 Hendley (Burbank Gardens), listed at $249K, in contract in one day, closed in 27 days at $255K.
  • 410 Brown (Burbank Gardens), listed at $249K, it had a price increase to $289K within 3 days because of the intense interest. Went into contract in 7 days with multiple offers.

Call me and I can tell give you an idea of the market value of your home.  Good decisions require good information.

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The ‘Perfect Storm’ for Short Sales Continues in 2013

Like 2012, 2013 may just continue to be the perfect storm for doing a Short Sale:

  • Sonoma County’s available inventory of homes for sale continues to be the lowest in years.
  • Competition for what inventory does exist has pushed up prices and turned the tables, making it a Sellers Market.
  • Bank and Government programs are getting more and more favorable for the Distressed Homeowner who needs to sell.
  • Lenders have too many foreclosures on their books, making Short Sales a better alternative for them.
  • Short Sales are getting, well, shorter because of improved operating standards by the banks and programs by the government.
  • The option to Short Sale is easier on your credit than a foreclosure, making it possible to buy another home sooner.

And the Number One Reason:  The Forgiveness of Debt Tax Relief Act has been extended to the end of 2013 saving you literally tens of thousands of dollars you would otherwise owe the IRS in Federal Income Tax after a Short Sale.