And then there was light
The Minneapolis Association of Realtors recently released a report (but it took me awhile to get in on the blog) on foreclosures and short sales in the Twin Cities market. The report is long overdue to show some contrasts between decline in median home prices.
Foreclosures and short sales in the Twin Cities area have seen a decline of around 15.9% compared to JUST 3.9% for traditional home sales. This is the number that is not been reported in the media and is widely inaccurate.
So just how many bank owned homes are on the market? There are just under 6600 bank owned homes for sale which represents about 20% market share compared to traditional home sales.
Bank owned homes and short sales will remain a factor in the marketplace for some time to come. It is important to review all your information when compiling data.
Know Your Fees
A recent study shows that the mortgage industry takes advantage of consumers being confused of what they are purchasing when it comes to home loans. It is important to work with a reputable lender and make sure you ask plenty of questions about the fees and where they come from
View the article here from The Wall Street Journal here
Trulia keeps it coming
Trulia created it’s latest assault on real estate search sites when it launched Trulia Snapshot the other day. This site is sleek and modern with a great, interactive way to search for homes.
Scroll over the bottom pictures to pull up images of the homes on the larger map. You can browse homes by price range with the bar graph below the pictures from most expensive to least expensive.
If you want more info on the property then their is links in the window to click on to bring you to Trulia’s website. Be sure to check out more of Trulia’s revolutionizing search experiences Hindsight and Searchpath which appears to be coming soon.
Twin Cities Market Update
2% decline in houses on the market since last year at the same time. Pending sales slightly ahead of last year. 27.5% of these houses where completed by a financial institution meaning a short sale or REO property. Pending sales over three months is down compared to last year at this time. The number of new listings is down almost 14% from same time last year.
Are there any obligations to a seller in a short sale?
With short sales being the way to go over the past year, many people are left wondering what obligations are left to the seller after the sale of the home. A simple definition of a short sale is when a borrower owes more on the house than what it is worth and the lender agrees to the sale of the home.
The biggest question is if the seller is free from any further liability once the transaction has closed. In most situations, the way the borrower is satisfied has to do with what documentation the lender provides.
What your looking for from the lender is a satisfaction of the mortgage along with an agreement that the lender will not pursue any other claims against the losses. However, if the lender only provides a release of the mortgage, then the borrower may be liable for the outstanding balance and the lender could pursue a lawsuit for the unpaid balance.
A recent federal law was passed allowing the individual to not pay federal income tax on their primary residence on the forgiven mortgage debt. Also known as a ‘Ghost Tax’.
Pleased be advised that short sales are tricky situations and should always consult an attorney or accountant when regarding tax liabilities when regarding short sales.
Evicted too early?
Recent story that aired on KSTP 5 about neighborhood residents being evicted with little warning.
Foreclosures on Parade
A new way to look at foreclosures or REO (Real Estate Owned) properties has been bus tours. Some companies around the metro have set up tours leaving their office and visiting local foreclosures with potential clients. How do I know this? One company has called me to visit a few of my properties that I have listed with banks.
Another company has gone all out, Foreclosure Parade has now popped up. By viewing their website, not sure if it is just the name or if they really get a caravan of people out looking at properties. As for now the website looks like it just launched and all they offer is an online property search, call and go see the property with an agent.
Not a bad way to see homes and I hope it evolves.
‘The Donald’ sells his West Palm Beach crib
Donald trump has sold his estate in West Palm Beach for a whopping $100 million. Although he didn’t get his asking price of $125 million, he bought the house for $41.25 million and stands to make a pretty hefty profit.
Listings decrease as builders and sellers hold back
A recent article in the Star Tribune about the housing market.
Let’s Roll…
This weekend was the 7th annual bowl-a-thon for the Adam Bauman Foundation at Cedarvale Lanes in Eagan. The event, which features bowling, prizes and a silent auction helps raise money for charities and scholarships for local communities in Adam’s name.
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