Posts Tagged ‘drive by’s’

Technorati Tags: drive by's, Foreclosures, hot sheet, housing, loan mod help, mortgage, nolan vance, REO, sales, Seattle, seattle distressed property, seattle fixers, seattle loan mods, Seattle Short Sales, Seattle Wa Foreclosures, short, stop foreclosure, video drive by's

Technorati Tags: drive by's, Foreclosures, hot sheet, housing, loan mod help, mortgage, nolan vance, REO, sales, Seattle, seattle distressed property, seattle fixers, seattle loan mods, Seattle Short Sales, Seattle Wa Foreclosures, short, stop foreclosure, video drive by's

A “short sale” happens when the real estate market will not support a price for property that is equal to or higher than the current owners’ debt on the property plus any Realtor fees, taxes, and closing costs. The homeowner would have to bring money to the closing table to sell the home. Unfortunately, the most widely known

alternative is foreclosure.

Short Sales are another alternative for the homeowner and they also provide opportunities for a savvy real estate investor.

Here’s an example:

Mark and Heather bought a home for $400,000 with 80 percent LTV (Loan To Value) financing. Later they opened a home equity line of credit and used the remaining value in their home of $80,000. A year later they decided to divorce, and Heather moved out. Heather stopped contributing to the mortgage payment.

Mark decided to sell the home and discovered the market value is only $380,000. So if they were to sell the house and get the full value of $380,000, they would have to pay the difference between the loans against the property and the selling price, in this case $20,000. They would also be responsible for any taxes, closing

costs, and any Realtor commissions, which could be as much as another $25,000. They don’t have any money. Mark and Heather are in a “short sale” situation.

The lender or bank’s loss mitigation specialist estimates that a non-judicial foreclosure will cost Mark and Heather about $5,000. Plus there are $2,000 in property taxes due. The property is worth less than the mortgage and with these additional costs, the bank will suffer a serious loss.

With no money, Mark feels he is on a sinking ship and stops making the mortgage payments. Soon he is in a pre-foreclosure situation.

A real estate investor, Tom, approaches Mark and Heather and then the lien holder (the bank holding the mortgage) and offers to buy the

house for $290,000. Everyone agrees, Mark moves out and the closing takes place. Now the savvy real estate investor has a property with almost $100,000 of equity.

What happened behind the scenes is that Tom borrowed the funds to pay the bank from a private mortgage lender, Mary. Mary uses her

self-directed IRA to loan money to real estate investors. She earns a competitive rate of interest on the loan. Everybody wins.

A “short sale” is when no one gets the “short end” of the stick.

Travis Millward
http://www.articlesbase.com/real-estate-articles/the-long-and-short-of-short-sales-336508.html

Technorati Tags: drive by's, Foreclosures, hot sheet, housing, loan mod help, mortgage, nolan vance, REO, sales, Seattle, seattle distressed property, seattle fixers, seattle loan mods, Seattle Short Sales, Seattle Wa Foreclosures, short, stop foreclosure, video drive by's

With the current credit crisis and softening economy, property values have dropped significantly across all states and with all property types.  In turn, owners are lining up to conduct their own property tax appeals to get a reduction in their real estate taxes.  At the same time cities are fighting hard to keep their tax base – the result is shaping up to be an all out “dog fight”. 

On the commercial side, we are seeing a drop in value as capitalization rates continue to rise and as the credit crisis lingers.  Longer amortization schedules and “built in” appreciation models within commercial loans have had an almost artificial boast in property values.  Now as these commercial loans are gone, this artificial increased value is gone.   

For owners, reducing property taxes has an immediate impact to the owner’s bottom line.  All property tax savings go right to the NOI (Which in a way, actually increases the property’s value).  The savings can be huge and once the new assessed value is established, the savings are ongoing, year after year.  In short, it is well worth most owners time to fight for this, especially those that have purchased their property in the last 5 years or less.

Property Tax Appeal

There’s a procedure to getting for any property tax appeal and remember your city, does not want to lessen its tax base (they have those pensions and long vacations to protect).   There is a lot that goes into doing it right, but perhaps the biggest issue, that most property owners are shocked to learn is how much control the city has in picking the COMPS (comparable recent sales).  Your city will only want to use comps from transaction that happened under normal, non distressed conditions.  They often refer to this as “Fair Market Value without Undue Influences.”  

What this really boils down to is that your city will not want to use comps from foreclosed properties sales and or from other “distressed” sellers.  They will want to use comps that support their estimates of value.  Which of course support their point of view and their tax base.  A major problem with this is that a lot of transactions these days occur from foreclosed properties… 

The owner considering a property tax appeal will have to know how to deal with this issue as well as others before they sit in front of their city to appeal.   Your city will do everything in their power to protect their tax base.  You will need to understand the process; otherwise you will just waste your time. 

jeff rauth
http://www.articlesbase.com/taxes-articles/property-tax-appeals-the-reality-677284.html

Technorati Tags: drive by's, Foreclosures, hot sheet, housing, loan mod help, mortgage, nolan vance, REO, sales, Seattle, seattle distressed property, seattle fixers, seattle loan mods, Seattle Short Sales, Seattle Wa Foreclosures, short, stop foreclosure, video drive by's

Technorati Tags: drive by's, Foreclosures, hot sheet, housing, loan mod help, mortgage, nolan vance, REO, sales, Seattle, seattle distressed property, seattle fixers, seattle loan mods, Seattle Short Sales, Seattle Wa Foreclosures, short, stop foreclosure, video drive by's

Technorati Tags: drive by's, Foreclosures, hot sheet, housing, loan mod help, mortgage, nolan vance, REO, sales, Seattle, seattle distressed property, seattle fixers, seattle loan mods, Seattle Short Sales, Seattle Wa Foreclosures, short, stop foreclosure, video drive by's

Technorati Tags: drive by's, Foreclosures, hot sheet, housing, loan mod help, mortgage, nolan vance, REO, sales, Seattle, seattle distressed property, seattle fixers, seattle loan mods, Seattle Short Sales, Seattle Wa Foreclosures, short, stop foreclosure, video drive by's