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Is A Short Sale For Me?

A short sale is a real estate transaction in which the bank or lender agrees to let the homeowners sell their home for less than their loan balance. In some cases, the sellers don't need to pay back the difference between what they owe and the proceeds of the sale.

Recent changes in the industry have streamlined the short sale process, making this sort of transaction a popular alternative for both buyers and sellers. Additionally, banks are much more interested in facilitating short sales and avoiding foreclosures that result in placing the properties back on their books.

Who benefits in a short sale?


In many cases, short sales present a proverbial "win-win" situation. Here's how:
Sellers avoid foreclosure and protect their credit from the harder hit of foreclosure.
Buyers receive a good price on the home.
Lenders avoid a costly foreclosure. The potential loss from a foreclosure is typically higher than a loss from a short sale.

 

How it works

Say you owe $200,000 on your home and can no longer make the mortgage payments. One option is to refinance your home and secure a lower payment based on a longer term or better interest rates. But if your property has lost value due to local market conditions (say it would sell for only $150,000), refinancing isn't feasible. If the bank agrees to a sale at $150,000, it's called a short sale.

Although short sales have become more common in recent years, banks don't always grant them. In general, they approve short sales in theses situations:


Seller has a hardship (such as divorce, bankruptcy, unemployment, job relocation).

Seller owes more on the mortgage than the home's current market value.

Mortgage is in or near default status.

Seller has no assets.

However, different banks and lenders have different requirements. So sellers should discuss the short sale option with their lender.

Short sales can present a great deal for buyers. But the process is a bit more complicated than a normal home purchase, and it will take patience.

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Having lived in Okoboji all my life, there are a wealth of memories of Arnolds Park. I, like many of the locals, miss the nostalgia of the old Roof Garden, the fun house, the water slide and much, much more. With time comes change, and the amusement park continues to reinvent itself. Currently with over 20 rides to choose from, the family is sure to have a good time. The main attraction, The Legend Roller Coaster, is the 7th oldest coaster in the United States and apparently the 13th oldest in the world. Reaching speeds of up to 50 mph, the roller coaster has undergone substantial renovations in the last year. In front of the amusement park on West Lake is the Queen II excursion boat, and Pirate Jacks Bar. The sunsets here are unparalleled. If you have a chance to visit, make sure to check out the tipsy house, the three sons, and all of the shops. Just to the east is the green space, which provides great entertainment and in 2013 OAR came to play, which is a pretty big name for Okoboji.

Cheap vs high end quality. A buyer's perspective.

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Here's the scenario. You are building a house or remodeling your house. Material costs are up. Labor costs are up. You ask yourself, where can I save a buck? Before answering this question, you must be careful, especially if your home is located in an area where other quality homes are built, whether on the lake, off the lake, or in higher valued developments such as golf course developments, etc. Growing up in construction and with a plethora of new construction and remodels under my belt, let me share with you some of the easy things that your future buyers will recognize when they are looking for quality.
1. One of the first things buyers of higher end homes will look for is to determine if the owner used hollow core doors. It's an immediate sign that the seller was looking for ways to save money (where else then did they cut back that I can't see???)
2. The second most obvious is the counter tops. Did the sellers spend for a quality granite, quartz, or other hard surface, or was formica used?
3. The third item that might stick out is the cabinetry. Do the drawers have dovetail construction with hardwoods? Did they use "soft close" drawers? Are there pull outs for the pots and pans?
4. Flooring is an easy one also. Was laminate used, or is it engineered or hardwoods? Does the carpet convey a quality feel and plushness? Is there a nice thick pad underneath the carpet?
5. Though there are many other items to look at, cheap vs quality lighting and plumbing fixtures are probably the next major focus.

There is nothing wrong with with using lower cost materials, especially when trying to keep a project within budget, especially when trying to build more house for less money. Just be aware that most buyers looking to spend in excess of $300k for off lake homes and $500+ for East Lake chain homes, and $1M+ for West and Big Spirit will expect the very best materials and finishes.

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