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The following was a post we did in February of 2009. Not much
has changed in 1 year. We are expecting the government to start incentives
to banks and second mortgage lenders to encourage the short sale process
instead of waiting for foreclosure.
Benefits:
- House usually sells for a higher price
- Credit of the seller is not affected for as long
- Neighborhood is not affected as adversely
The term Short Sale has nothing to do with the time it takes to close
this type of transaction. It refers to the money the bank or mortgage holder
will receive from the sale of the property. The closing will be “short” of the
funds that the seller owes on the mortgage. In other words, they are upside
down: they owe more than the home is currently worth.
Since we don’t live in a past world where the home “was” worth more or
a future world where it “may” be worth more, this is the sad financial
situation many reluctant home sellers find themselves in today, selling at
a loss. It doesn’t make for happy campers.
The Short Sale scenario usually doesn’t have anything to do with
greed or mismanaging money. Many of the cases we see are typical families
that bought a home, fixed it up a little, and then got a job transfer, had a job
loss, a divorce, a family death or illness occurred which drastically changed
their financial situation.
What the falling prices on homes does is trap the homeowner.
He can’t sell it for what he paid for it—— he has to take a loss, go bankrupt,
or lose his credit rating. How many people have equity in their home, or
savings, or a 401K they can borrow from to pay their losses? We see that
occasionally, but it is not the rule.
The banks and mortgage companies are in a difficult situation.
They are going to take a loss, no matter what happens. The object is to stall,
wait, and negotiate until they get the best outcome they can for their company’s
bottom line. Okay, companies stay in business by minimizing losses.
But, and this is a big but, stalling, and prolonging these transactions
until the potential buyers walk away is hurting everyone. Delaying a month,
two months, three months on answering a decent real estate offer hurts the
bank, the seller, the buyer, and the real estate agent. This kind of time lag is
typical of short sales. I have heard getting these transactions to close as
compared to ” trying to land a 747 on a blade of grass. ”
Real Estate agents don’t like to get involved in these transactions
because they are prolonged, messy, tons of paperwork, many, many frustrating
phone calls, and at the end of the transaction, the bank or mortgage company
will typically “short” the commission the agent has worked for. This is another
sticky wicket because the contract is with the seller, not the mortgage lender.
So, this has to be negotiated again, if you are fortunate. If not, you take what
they will give you.
Short Sales are becoming a much more common transaction as
banks are deluged with foreclosures and calls from homeowners requesting
help. The recent * Recovery Act may be a relief valve, allowing some people
to reduce their mortgage, save their credit and their home. The first week of
March the US government will tell us what the parameters of their plan are
going to be.
*We have seen little effect from the Recovery Act yet.
Make sure your agent has the experience and knowledge to get you
through the minefield of short sale negotiation, if you are buying
or selling.
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The authors of the this blog write about Grand Rapids Real Estate, the Greater Grand Rapids MI area, and what it is like to live in West Michigan. Grand Rapids Michigan is a vibrant, growing metropolitan area with a diverse business community, great medical research & services, numerous universities, plus lively arts and entertainment of all kinds.
We believe: Grand Rapids is a Great Place to Live!
Westbrook Realty Grand Rapids MI Real Estate
Contact Terry 616-292-7263
This unique A Frame home on the northwest side of Grand Rapids has an open floor plan, 3 bedrooms, 2 baths in 1923 finished square feet.
The main floor has an open cathedral ceiling in the Great Room which is open to the kitchen and upper loft. Large windows let in lots of natural light and a brick wood burning fireplace adds lots of architectural appeal.
A large master suite with private bath upstairs just off a loft that
overlooks the living area below.
Two bedrooms and full bath on the main floor. A family room with
fireplace on the walk out lower level that has sliding glass door to the
front of the home.
An attached 2 car garage and a large utility laundry room are also on this
level. A wrap around deck offers plenty of room for outdoor living and
entertaining in the warmer months.
Close to public and parochial elementary schools on the NW side,
John Ball Park & Zoo, Millenium Park, 3 golf courses, and downtown
Grand Rapids.
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More information at Westbrook Realty
This country estate is located on 10 acres of wooded land in a small
development with all homes having at least 10 acres and no splits
allowed. There is a private paved road that is maintained by the
homeowners.
The home has 3 bedrooms, 2 full baths, a finished lower level with
walk out, a separate storage barn, and lots of privacy.
The kitchen was redone in 2008 with new appliances, tile flooring,
Solid surface countertops, updated cabinetry and lighting.
A quality built home that has been well maintained.
Call or email for further details.
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The authors of the this blog write about Grand Rapids Real Estate, the Greater Grand Rapids MI area, and what it is like to live in West Michigan. Grand Rapids Michigan is a vibrant, growing metropolitan area with a diverse business community, great medical research & services, numerous universities, plus lively arts and entertainment of all kinds.
We believe: Grand Rapids is a Great Place to Live!
Westbrook Realty Grand Rapids MI Real Estate
Contact Terry 616-292-7263
It looks like the most affordable homes in the United States are in the
Midwest, according to CNNMoney.com’s latest posting about the Most
& the Least affordable cities to buy a home. New York and the California
dominate the least affordable cities to buy a home today.
Grand Rapids Michigan comes in 5th Most Affordable with an affordability
score of 92.9%.
CNNMoney’s lineup is as follows:
MOST AFFORDABLE
- Indianapolis, IN median home price – $107,000
- Youngstown, OH median home price – $ 73,000
- Detroit, MI median home price – $ 86,000
- Dayton, OH median home price – $105,000
- Grand Rapids, MI median home price – $100,000
LEAST AFFORDABLE
- New York City, NY median home price – $419,000
- San Francisco, CA median home price – $580,000
- Honolulu, HA median home price – $395,000
- Los Angeles, CA median home price – $294,000
- Santa Ana, CA median home price – $391,000
The foreclosure crisis that has hit the Midwest hard has influenced the
prices of homes in a downward trend for the past few years. The
auto industry is a big factor, although many of these Midwest cities, like
Grand Rapids are diversifying their economic base and will come out of
this much stronger and with many more people as homeowners.
If you are looking for a home in Grand Rapids Michigan, you are much
more likely to find a home you can afford than many other cities, which
is great news for the average home buyer today.
Grand Rapids Ada Real Estate – Westbrook Realty
Copyright 2009 All rights reserved
Current Absorption Rate for Grand Rapids Township homes is 12.59 months,
which means if no new listings come on the market, it will take 12.59 months
to sell the existing inventory of homes. The average sold home price has
dropped about 17% from last month and time on the market is up another
month. If you want your Grand Rapids Township home to sell, it must be in
tip top condition and priced to sell. Otherwise, you could be waiting at least
a year for your home sale to be completed.
There are 170 Active listings currently for sale.
The average List price is $ 308,115
Average List price $/SqFt $140.47
108 Sold & Pending Grand Rapids Township Homes since 9-15-08.
The average SOLD price is $ 248,308
Average Sold Price /SqFt $121.60
High Sold Price $ 775,000
Low Sold Price $ 57,500
If you have questions about Grand Rapids Township or Grand
Rapids homes, please contact me directly:
1-888-240-1968 ext 0
email: terry@terrywestbrook.com
Grand Rapids -Ada Real Estate – Westbrook Realty
Copyright 2009 All rights reserved
Photo of Frederick Meijer Gardens Entrance by Bonnie Westbrook