Short sales.

Many people in this economy are facing very difficult choices. With layoffs and pay cuts, many home owners are struggling to pay mortgage payments. There is no reason for people to have to go through a foreclosure! Many homeowners are embarrassed to admit they are in trouble. The fact is, banks are willing to negotiate sale prices on homes that are threatened with foreclosure. The lenders work closely with the Realtor and Title companies to come up with a fair price for the home. This is called a short sale. The lender is willing to take a loss on the balance owed because, in the long run, it is more costly for them to foreclose. This also gives the homeowner a scheduled and organized way to moved out of the home. The credit ramifications are far less worse with a short sale than a foreclosure. It is the job of the Realtor to negotiate with the lender to "write off" the difference, if any, that is owed after the sale. Although, the homeowner must file a 1099 in the amount of the difference, it is considered profit and falls under the capital gains tax law. If you have lived in the home for two years or more, you pay no taxes on the difference up to 250k if single and 500k if married.

However, if the home is foreclosed and sold again at a lower price than the balance, the lender may file a judgment against the original owner for repayment of the difference. This may force the original owner into bankruptcy.

The lender pays all the fees to sell the house and the homeowner walks away with some dignity and no foreclosure status on their credit.

Please note that this can be a very lengthy process but the homeowner may continue to live in the home while the sale is being negotiated.

If you, a friend, or family member could benefit from a short sale, please do not hesitate to call me. Do not let your home fall into foreclosure.

Dont bite the hand that feeds you.

I recently met a great couple looking for a lake house to spend their down time fishing and relaxing. I showed them a tiny little cottage in a small lake community. The cottage is owned by a local bank here in Fort Wayne. It was been on the market for several months and the bank has dropped the price two times in the last 4 weeks. I met with my clients yesterday and we made a very strong cash offer. After submitting the offer, the bank called and said, "We have an employee that is going to go look at that property today. He may be interested." I find it odd that the same day I submit an offer that an "employee" of the bank that owns the house is now suddenly interested. I am frustrated because you would think the bank would sign a strong cash offer on a home they have foreclosed. I mean, what do you think is going to happen next time I show a listing that this bank owns? At the very least I am going to say, "Oh, once we submit an offer, bank employees have first dibs." Not cool. You want me to sell your foreclosures? Then sign the offer and don't kiss and tell to employees that they may get a potential deal based on a submitted offer.