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Short Sales are BACK!

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GUESTS: 
Bryant Tutas 
407-873-2747 
Co-founder of www.ShortSaleSuperstars.com. Working Short Sales every day all day.

Real Estate Broker and Owner of Tutas Towne Realty. A virtual Real Estate company specializing in listing and selling Short Sales and REO properties in the Central Florida Area.

Finding solutions that get your property “sold” is what I do.

Folks, if you need to sell your home then give me a call today and let’s talk! 407-873-2747 All calls are confidential. I can help……

….if you’re facing foreclosure. www.CentralFloridaShortSales.com 
….if you need to sell a Holiday Home. www.BuyProperty.ning.com 
….expose your property to over 500 web sites. www.TutasTowneRealty.com 
….educate you on current market conditions. www.BrokerBryant.com

Mike Linkenauger 
904-733-4911

Main website http://www.short-sale-specialists.com

Short Sale Websites - www.ShortSaleHosting.com
Mike got his start in Real Estate in 2005 at the young age of 26. He immediately established himself as a top producer in the Jacksonville, FL market, moving into the top 1% of agents his first year in the business. As the Florida housing market became depressed in 2007, Mike shifted his focus and immediately found a calling in assisting home owners with a short sale. In no time he amassed an inventory of over 100 short sale listings and quickly established himself as one of the top short sale agents in the State of Florida. As his online presence grew, homeowners from other parts of Florida began contacting him for guidance with a short sale and to be connected with a local short sale agent.

     If you are a Realtor or short sale negotiator who has done a short sale with Fannie Mae as the investor during the last few months, this blog post will likely raise a question or two.  For everyone else, it will definitely also raise an eyebrow or two. Government conspiracy theorists are certainly not a rarity in this day and age. Depending on who you speak to, many of our fellow citizens can come off as paranoid and irrational when speaking about all the secret plans they seem so sure our government and those in power are plotting and planning. While the theory I'm proposing on here is certainly not up to par with the New World Order, Illuminati, One World Government folks, it is certainly some concerning and valid food for thought, especially for those of us in the Real Estate and Mortgage industry.  Take a few minutes to read this blog post, and you'll likely agree and come to find that this really isn't about a conspiracy theory, but a very real and disturbing trend that is happening in our housing market right now.

     Lets take a step back here and set the stage.  Over the last five to six years, we have seen real estate prices plummet in virtually every market across the country. This reality of the depressed housing market is certainly no secret. In many areas, prices have declined to as low as thirty cents on the dollar. Several years ago, As things became more and more depressed, our government stepped in.  Both Fannie Mae and Freddie Mac, who back the majority of our residential mortgage loans, were completely bailed out by the US government.  This forced overtaking was something that our government had to do, as the imminent collapse of Fannie and Freddie would have meant the complete collapse of the housing and finance industry, likely permanently.  This was extremely important, as instead of giving bailout loans to Fannie Mae and Freddie Mac, like the auto industry or the banks, they actually took complete control of these organizations.  Our government then established the Federal Housing Finance Agency (FHFA) to "oversee" these organizations which are now referred to as Government Sponsored Enterprises, or GSE's.  Since then, the FHFA consistently dictates policy to these Government Sponsored Enterprises that still back most residential mortgage loans and completely control the secondary mortgage market.

     Now back to the present.  Fantasic news headlines in much of the country that in many of the markets that were hardest hit, prices now seem to get going up almost as quickly as they were once declining. Inventories are low, demand is high, properties are getting multiple offers from buyers paying over list prices the minute they come on the market.  But for those in the industry such as myself who are active in the short sale and distressed property niche, an interesting and disturbing practice that has been taking place.

     In very recent times, just in the past few months, short sale agents across the country have been having difficulties with Fannie Mae short sales.  To be more specific, the difficulty has been with wildly inflated appraised property values that Fannie Mae has been insisting on for short sale properties. For those who may not know, we are not talking about regular appraisals, traditionally ordered by a buyers lender in order to justify a purchase price.  In this case, we are talking about appraised values that Fannie Mae places on properties, ordered by them and completed by their own appraisers, utilizing their own appraising and property valuation methods.  Utilizing these over inflated appraised values, Fannie Mae then demands more money for these short sale properties from patient buyers.  Anyone starting to smell the stink yet? Does this stink smell a little similar to the stink we all experienced several years ago with inflated buyer appraisals from before the housing market collapse?

     For the most active short sale agents across the country, the past few months have produced quiet a few headaches with Fannie Mae.  It seems virtually every property valuation and appraisal done by Fannie Mae for a short sale is at least 10% or more above current market value.  Values so inflated, that there are typically no comparable sales at all to come remotely close to justifying their prices.  Prices so high, that it most cases it would be virtually impossible for a buyer to find a loan and get an appraisal that would match the property values and prices that Fannie Mae is demanding.  The ironic part, is that these same buyers' loans who are purchasing these properties would of course eventually be sold off to... You guessed it, Fannie Mae! Because of the massive number of loans backed by Fannie Mae, this is widespread and is effecting a very high percentage of current sales.  And when it comes to disputing these inflated values, it can be quiet a challenge for real estate agents and short sale processors to convince Fannie Mae to change their mind and sell the properties for actual market value.

     Put two and two together, read between the lines, and it makes perfect sense that this is just Fannie Mae's and our policy dictating governments' valiant and likely effective attempt at mass, government controlled real estate price fixing.  Control the supply (market inventory), control the demand (interest rates ect), and then control prices and force up property values by demanding more money.  Fannie Mae and Government controlled real estate price fixing.  The tail wags the dog, and the dog has no clue what is going on.  A perfect example of the reality that housing has become completely socialized, but with the illusion that its just all part of the market cycle.  Just my two cents, for what its worth.
Click Here for my original article on Government Real Estate Price Fixing

The short sale market in Winchester, VA is beginning to show signs of a slight decline.  When the real estate market took a hit in the Fall of 2008, REOs exploded onto the scene as the prominent available listings.  As the the market has shifted back and forth, REOs are declining and short sales are the primary distressed properties. 

Now, short sales in Winchester, VA have declined slightly, but they still make up 10% of the overall available listings. Between Winchester City and Frederick County, VA, distressed properties make up 17% of overall available listings in this third week of March.  The overall distressed listings in the Winchester/Frederick County are have declined 1.2% in the past week.  That's a good sign.

There are still opportunities available to buy a short sale or an REO at a great price, but they are slowly becoming a minor part of the local market.  Don't wait too long.  You might miss a great opportunity.  If you've been planning to take advantage of the high number of distressed listings in the Winchester, VA real estate market, you may want to call your Cornerstone Business Group, Inc., agent soon.  The tide is shifting, and before you know it, it will be a seller's market again.

Short Sales in Winchester, VA - March 2012

Currently working on a Fannie Mae pre-approved short sale with BOA as a servicer.

1.  Seller took the time to get a pre-approved price for the short sale

2. I listed the home at the pre-approved short sale

3.  Got an offer at the pre-approved shortsale - Cash

4.  Got a message through equator that they agreed to th eoffer but they needed a couple of the changes on the HUD

5.  Made the changes and submitted them all through equator immediately

6.  This was 7 weeks ago of constant follow up with no response

7.  Escalated through Fannie Mae - got some action and an extension of the approval -

8.  No answer yet and the same run around to call tomorrow.

We have the banks claiming they want to work with Realtors and get the short sales done I am not seeing this.

We have people in selling CDPE certs that to me they sound like just more scheme to get money out of us and encouranging us to work with banks.

Is anyone experiencing the same  levels of pain.

The Winchester, VA real estate market is predominately made up of three types of real estate sales.  There are fair market (straight seller sales), short sales and foreclosures (also known as REOs or bank owned properties).

The Winchester, VA real estate market report for 1/24/2012 - 2/24/2012 consisted of 62 sales.  Of that number, 31 were fair market, 12 were short sales and 19 were foreclosures.  Even though the current active listings show that only 20% of the listings are made up of foreclosures and short sales, the most recent 30 day sales report tells a different story.  Fifty percent (50%) of sales were made up of foreclosures and short sales.  

The price ranges for each category varies substantially.  Fair market sales range from $77,150 - $470,000.  Foreclosure sales range from $42,000 - $285,000, and Short Sales range from $76500 - $370,000.

The "list to sold price" also swung sharply from one group to the other.  The market data shows that a buyer is better off to buy a short sale than either of the other two types of sales. Short sales on average sold at 84.36% of list.

Fair market sales sold at 95% of list, and foreclosures sold at 91.42% of list.  The advantage of buying a foreclosure during this period is the days on the market.  From list to close, foreclosures averaged 45 days.  Short sales, which are notorious for taking forever to get to closing, actually only averaged 93 days on market to close.  Fair market sales averaged 139 days on the market.  

A buyer was likely to pay more for a fair market property during this period, but in most cases, the fair market property offered less potential problems getting to closing.  That's not always true, but it often is the case.  Short sales and foreclosure properties have potential issues getting to closing due to the circumstances which brought them to market. 

All three types of properties offer Winchester VA real estate buyers great options.  When you're ready to start your real estate search, give Cornerstone Business Group, Inc., a call and we'll help you find the right house at the right price.  

 Winchester, VA real estate market report for 1/24/2012 - 2/24/2012 

The short sale market in Winchester/Frederick County, VA is alive and well.  The current market for both city and county offers 555 active listings.  Of that number, 55 are currently listed as potential short sales.  In the Frederick County listings, short sales make up 9% of the 443 current active listings.

With the combined area of Winchester City and Frederick County, short salesmake up between 9-11% of the overall available active listings.  Foreclosuresmake up another 9% of the overall listings.  That leaves 80+% of available listings that fall into the fair market category.  That high number of fair market properties are as likely to give support to  short sale and foreclosure prices as the reverse.

The price ranges for short sales in theWinchester / Frederick County area range from $69,900 - $589,433.  Both high and low figures can be found in Frederick County with it's higher number of overall properties, as well as higher numbers of short sales and foreclosure listings.

The average price range for a Frederick County short sale is $178,766.  That property is off it's original list price by 16%, and it has been on the market for 88 days.  In Frederick County, the days on the market range from 722 to 1. Winchester averages vary between 487 - 1.  The longer number of days on the market may signal that distressed homeowners have found a way to continue to support an upside-down mortgage while attempting to short sale a property closer to the payoff.

The pace at which properties are moving through the local market and the limited number of property sales indicates that the ratio of buyers to sellers is still leaning in the buyer's favor.  That presents many buying opportunities for  savvy buyers, but it places a great deal of pressure on distressed homeowners who are trying to get out from under a house that is currently underwater. 

Even though the high ratio of fair market properties available in the Winchester / Frederick County Virginia area may signal good news for homeowners hoping to maintain some of their previous equity in a sale - it means little for a distressed homeowner who is still looking for a little relief.

If you're in the Winchester / Frederick County, Virginia area and you need to sell your home through a short sale, don't give up hope.  We can help get you through the process and on to a fresh start with a lighter load.  Give Cornerstone Business Group, Inc., a call and we can discuss your options.

Short Sales in Winchester-Frederick County VA - February 2012

The foreclosure market in Winchester, VA has been changing this year.  The current market has 544 properties listed and available as of March 10, 2012.  Of that group of available listings,only 35 are foreclosures.  That brings the current foreclosure listings down to 6.65% of available listings.

If a buyer is looking for a great deal on a foreclosure, he better act fast.  The foreclosure market in Winchester, VA is contracting at a rapid rate.  How do the current available listings compare to pending sales? 

There are 253 sales pending the Winchester market.  Of that group, 41 properties are foreclosures.  That's 16% of the current pending sales.  That's a substantial drop from the February 4 - March 4 closings.  During that period 29% of closings were foreclosures. When you add short sales into that period, total distressed home sales made up 51% of total homes sales.

It's hard to say at this point if this is trend or a positive bump in the road, but no matter how you spin it, it's good news.  As foreclosures and short sales decline, property values have an opportunity to recover.  Will they see the values of the 2005-2008 market?  That is unlikely to happen for many years, but any improvement in home values is a plus.

Homeowners who still need to do a short sale may be able to redeem more of their equity for their lenders.  That puts them in a better position to execute a short sale. Short sales are another chapter in the local market.  The decline in available foreclosures in the Winchester, VA market is a good sign, and hopefully, a new trend. 

Available Foreclosures in Winchester, VA - March 2012