Real Estate Information

If you have been exploring short sale now is the time to look a bit harder at this option.  Why you ask?  A couple reasons.  First, over the past couple of years the lien holders (banks) have developed systems that streamline the short sale process.  Some banks are better than others but overall they have improved.  Second, with the passage of Nevada AB284 which went into affect in October 2011 many banks are delaying the foreclosure process while they work to get their paperwork in order.  This may afford sellers an opportunity to negotiate from a position of power and with the luxury of time.  And lastly, the IRS Debt Forgiveness Act is set to expire in December 2012.  This act provides sellers who have had debt forgiven through foreclosure or short sale with some exemptions.  Many sellers, especially primary residence owners,  benefit from this act.   Now is the time to call a real estate professional and explore the short sale option.

If you answered yes to this question or if your are approaching the 3 year mark post short sale this information if for you.  If you closed a short sale and it has been 3 years you may be eligible to purchase another home using FHA or conventional financing.   Hopefully you have gotten back on your feet and had the opportunity to repair your credit over the 3 year period.  If you have you should consider calling a mortgage lender and getting pre-approved for a new purchase.   With current market prices at the most affordable in years, low interest rates and no more "designer" loans becoming a homeowner again may be a great move for you.  Not only are home prices affording mortgage payments at or below current rents, the mortgage interest tax deduction could save you a large amount on your income taxes. 

If you are under the 3 year mark and would like to repurchase when time allows, you may want to consider visiting with a credit counselor to gauge where your credit is at this time and what you might need to work on.  I recommend Consumer Credit Affiliates .  They can assess your situation and help you formulate a plan to get back on the path to home ownership.   

If you are planning to purchase you will need to save a minimum of 3.5% for an FHA down payment and money for closing costs.  In some cases you can get assistance from the seller with your closing costs which typically are about 3% of the purchase price.  If you need a recommendation to a good local lender contact me.

Someone recently asked me what all the letters after my name on my business card mean.  Here is how it reads...

Amy Shocket, Broker-Salesperson ABR, CRS, GRI, PMN

The broker-salesperson basically says that I have met the same licensing requirements as a broker but I have chosen to be a sales person rather than a broker owner/manager.

ABR stands for Accredited Buyer's Representative.  This is a designation awarded by the National Association of REALTORS through is Real Estate Buyer's Agent Council.  It requires an agent to take several courses on buyer representation.  Visit rebac.net for more information.

CRS is short for Certified Residential Specialist.  This is also a designation, awarded by the Council of Residential Specialist, but the requirements to earn it are more intensive.  Not only do you have to take courses, but you have to reach a minimum dollar sales volume in order to earn the designation.  Vist crs.com for more information.

GRI are the initials for Graduate of the REALTOR Institute.  This was the first designation that I earned and it is awarded by the National Association of REALTORS.   This designation also involved education courses to provide knowlege on working with both buyers and sellers.  Visit the following link for more info http://www.realtor.org/education/gri/value

Lastly, the PMN stands for Performance Management Network.  This designation is awarded by the National Women's Council of REALTORS.  One of the largest women's organizations in the United States this designation is earned by taking a series of courses.  I am pleased to be a member of this organization as both Northern Nevada Chapter President 2008 & 2011 and Nevada State President Elect for 2011.  Visit wcr.org for more information.

I also hold a couple other designations but don't post those after my name.  They are the Certified Distressed Property Expert or CDPE (Visit cdpe.com) and the Short Sale Foreclosure Resource Certification (Visit realtorsfr.org).  These are both extensive education programs that have expanded my knowledge base in the area of short sales and REO properties.

What does this mean?  I am committed to getting the highest quality education available in my field in order to offer top notch service to my clients. 

Short sales still are a major factor in the Reno-Sparks market.  As of today there are 817 active shorts sales and 1261 pending short sales (Area 100/All residential types).  The active short sales only account for 37.2% of the active listings but 62.2% of the pending sales.  In May there were 177 short sales closed which accounted for 28.4% of the closed sales.  If you look at the first quarter of 2010 there were 433 short sales closed.  This year in the first quarter we closed 486 short sales, roughly a 10% increase.  The average time it took to close those short sales is relatively unchanged from 2010 when the average was 205 days to an average of 203 days in 2011. 

Many of the banks have continued to work on their short sale process and make improvements to speed the process.  Many are also starting to roll out new programs where sellers can get "pre-approved" short sales prior to listing the property so that once the property is listed the timeline is significantly reduced which greatly benefits the buyers.   (These are programs in additon to the Government HAFA program.)

We still see obstacles when there are multiple liens, mortgage insurance and bond program loans.   It is important to know what type of loan you have and if your lender took out mortgage insurance on your loan.  Homeowners also need to know that banks are still looking for you to be in default or in danger of default in the immediate future.  There has to be a hardship or reason that you can no longer afford your payments. 

There appears to be a trend toward more deficiency waivers from servicers, but in some cases it doesn't come without a cash contribution or promissory note on the part of the homeowner.  Many servicers are looking at the seller's overall financial picture - credit score, other debts, monthly income, other assets etc. to determine if the seller might be required to contribute.

The key is still to seek the assistance of an experienced short sale listing agent as early in the process as possible.   It's best not to wait until a Notice of Default is filed to consider short sale as an option.

A very common misconception in the short sale world is that you must be behind on your payments to be considered for a short sale.  This isn't necessarily the case as I have assisted homeowners with short sales that were current on their payments.  The key factor is are you facing a financial difficulty.  If you can show the bank (your lien holder) that you have a legitimate hardship (loss of job, loss of income, change in financial circumstance, death of a spouse, medical hardship, divorce etc.) and that you no longer want to keep the home you may be able to complete a short sale while current on your payments. 

From the bank's perspective, the homeowners who are delinquent have the most immediate need to receive their assistance.   In addition, if you are able to continue making your payments they may request a cash contribution or promissory note from you at the closing of the short sale in order to approve the short sale.   Your lender will consider your entire financial situation when making this determination. 

There is an exception.  If you have an FHA loan on your home and you want to do a short sale you will be required to be 31 or more days delinquent at the closingof the short sale.  You do not have to be delinquent at the time you apply to the FHA Pre-Foreclosure Sale Program. 

Working with an knowlegable short sale listing agent is key.

One of the biggest issues with getting a short sale closed has been timeline from the point where the buyer's offer is submitted to the lien holder (bank) to getting an approval.  BofA is introducing a "cooperative short sale" where the homeowner is evaluated for a short sale, the property value and list price are determined by the bank and the homeowner is approved prior to offering the home for sale.  Once the home is placed on the market and an offer recieved, BofA is saying it can provide a response within 10 days.  The key will be the quality of the offer presented. 

The benefits is that once a buyer has made an offer they no longer will wait 60-90 days to get an answer as the underlying approval process was completed prior to listing the property for sale.   This will greatly increase the stigma that has been placed on short sales and make these listing more attractive to buyers. 

There are several other programs that follow a similar model.  The HAFA program designed by the US Treasury is available to borrowers who qualify and provides for an upfront approval.  Also, if your mortgage is FHA insured the FHA Pre-Foreclosure Sale Program requires homeowners to get approved into the program and sets the list price prior to the marketing/listing of the property. 

The key for homeowners in the Reno-Sparks market is to contact an experience agent who can make you aware of all your options when facing a possible foreclosure.  When a short sale is the best solution for a homeowner, hiring an agent who is knowledgable about all the programs available to them is crucial. 

For more information on the Bank of America Cooperative Short Sale please contact me.

Effective January 1, 2011 the State of Nevada will be requiring the seller or a certified inspector to complete a 4 page form that will then be provided to the home buyer.  Click here to see the new regulation.   The  required form has the seller providing information about the home, monthly energy consumption for the past 12 months, information on any energy efficient improvements to the property, the use of Energy Star rated appliances, etc. 

Sellers should be receiving a copy of the form when they list their property so that the form can then be provided to the buyer.  The form can be waived if agreed upon by both the buyer and the seller.

Effective Februray 1, 2011 updates to the Home Affordable Foreclosure Alternatives (HAFA) Program will take affect.  These guidelines may help increase the number of approvals for homeowners seeking assistance under this program.

Here are the key changes:

1. Monthly Gross Income Requirements- Servicers are no longer required to verify any financial information to determine if the borrower's total monthly mortgage payment exceeds 31% of the borrower's monthly gross income.  This being said, the servicer is still required to verify the borrower's hardship and may request financial documents to evaluate the hardship.
2. Vacant Property Requirements - Properties can now be vacant or rented up to 12 months prior to the Short Sale Agreement as long as the borrower can prove that the residence was their primary residence and they have not bought another home in that time.  Relocation no longer is limited to work related relocation and the relocation distance requirement has been removed.
3. Release of Subordinate Liens (Paying Off Second/Junior Liens) -  the 6% cap to pay off junior liens has been eliminated.  The servicer determines the percentage going to each junior, but the $6,000 cap is still in place.
4. Timing For Issuance of Short Sale Agreement - now for both HAFA short sales initiated by the servicer  and those requested by the borrower, the time line for the servicer to respond to the borrower is 30 calendar days. (Please note that many servicers are not adhering to this guideline simply because of the volume of HAFA requests.  There does not appear to be any penalty to the servicer for not meeting this timeline.)
5. Timing For Response To Alternative Request For Approval of Short Sale - if the borrower submits an executed sales contract, Alternative RASS and signed Hardship Affidavit or RMA, the servicer must communicate approval or disapproval, or a counter within 30 calendar days. 
6. Real Estate Commissions - the 6% cap remains, but servicers must now include a statement in the Short Sale Agreement that they will not deduct 3rd party vendor fees from any agent commission.
7. Alternative Deed-In-Lieu (Deed for Lease) Programs - these programs did not previously qualify for the borrower to receive relocation incentives.  They now are included but only when the DIL is final.
8. Borrower Notices - Servicers can now consider a borrower for HAFA while the borrower is considering HAMP.

Servicers are not required to, but may re-evaluate borrowers who were previously ineligble before the guideline were changed. 

For more information contact me for the full Supplemental Directive 10-18.

If you are considering a short sale and looking for a real estate agent to assist you with this process finding the right agent is KEY.  Short sales in the Reno-Sparks market are a large portion of the business in our market, but not all agents are created equal. 

1. Can you explain the short sale process?
2. Do you have prior short sale experience and more importantly, success?
3. Can you tell me if my property qualifies for a short sale?
4. Do you know what information I'll need to provide my lender?
5. Can you tell me what hardships qualify for a short sale?
6. Do you have an effective short sale strategy?
7. Do you know how to effectively market my home in a timely manner?
8. Do you know how to strategically price my home?
9. Do you have an effective pricing and marketing campaign for 15, 30, and 45 days?
10. Will you be negotiating my short sale or do you use a 3rd party company?
11. Why are you the right agent to sell my home?

If the agent you are considering can't answer these basic questions and thoroughly explain the process of a short sale you may want to consider moving on.  Short sales require an agent who is actively engaged and experienced in getting short sales approved and closed.

Please contact me if you have questions about short sales and whether or not you might qualify to do a short sale.  A short sale is just one of the options to avoid foreclosure, and one of the best options if you are unable to retain your home.

I don't think there is anyone out there who would not agree that the real estate market in the Reno-Sparks area, and in many other areas around the country,  has been hard hit over the past several years.  We have all seen our property values decline pretty significantly.  Many folks are struggling to find jobs.   And many homeowners have been faced with tough decisions such as foreclosure and short sales. 

Being a REALTOR has taken on a whole new meaning for me.    I have gone from a salesperson who specialized the marketing of property for sale and helping buyers find their new home, to so much more than that.   Helping homeowners avoid foreclosure by successfully finding alternatives such as short sale has made me so much more than a salesperson.  I am a problem solver, listener, helper, and facilitator.    I am genuinely helping people and making a real difference in their lives.  For buyers I am assisting them in navigating the more complicated web of purchasing short sales and REOs.  Helping them avoid the obstacles that arise in these types of purchases.  It has become harder than ever to be a buyer with tighter lending standards, distressed properties and long wait times. 

We look around in this industry and are often hard pressed to find positives and things to be thankful for.   But, there is plenty that I am thankful for.  The challenges of this market have made me a better REALTOR.  I have been given the opportunity to not only help my neighbors buy and sell homes, but help them improve thier lives.  By necessity I have been motivated to learn more, so I can help more. 

This REALTOR is thankful... 

Happy Thanksgiving to Everyone!