The New Normal - 2012

Happy New Year! I hope everyone has had a wonderful holiday season. Several years ago I wrote an article about a "new normal".  That new normal was the advent of the repo age. In 2009 our Team sold 437 homes. Those within the industry know that is a daunting number, about 100 times what a typical REALTOR® sells in a year. Unfortunately about 90% of those sales were repossessed sales.

Today in 2012 I again will use the term "new normal" but for a very different reason.This new normal is the age of the short sale. By now most of you are aware of what a short sale is.  In short (no pun intended), you are selling your home for market value but for less than what is owed and the bank is taking the loss. During the age of the repo, very few banks would negotiate short sales. The ones that did, or attempted to, did not have systems in place and the process could easily take 6 months or more. Well buyers are funny in that they want to know, did I or didn't I buy a house. Many, in frustration, walked away from the transaction and purchased a home that had already been foreclosed on because the bank already owned it and the process was complete.

Now we have the new normal. Today, many of those same banks communicate with the homeowner and discuss the short sale. Then they contact us, the REALTOR®, to work with the seller to get the property sold.  In many cases they are releasing the seller from future liability of the loan and paying the seller up to $4500 to leave the property in good condition and move out. There is also a program that pays 3% of the buyers closing costs at no cost to the seller.

Why are banks being so gracious? Because even after paying all of these costs, they still net more money on a property that is occupied. There is less chance for vandalism and the upkeep on the property is in place with a homeowner still living in the property.

What does this mean to you? If you have a friend, coworker or family member that needs help and has questions, PLEASE don't let them stick their head in the sand and walk away from the home. The options offered today have changed dramatically. 

To learn more about the options available, please sign up for our free webinar. Click here to join us on Saturday, January 21st at 10:00am.