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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Community Updates
Bridges Bay Resort
Bridges Bay Resort is built on the land purchased a few years prior which used to be owned by the Nielsen family of Arnolds Park. This huge complex consists of a hotel, 3 condo buildings (a 4th is under construction), and over 100 vacation cabins. A popular part of the resort is the indoor waterpark that cabin and condo owners have access to, but also, so does the public for a fee. Braccos is a fantastic summertime restaurant and bar which is frequented by boat, by car, and by foot, especially from the owners of the condos and cabins. All of the units at Bridges Bay have an opportunity for a boat hoist, and it is an extremely popular destination for out of towners looking for a vacation spot in Okoboji. Because Bridges Bay is not within the city limits, many owners utilize property management companies to help them rent their units by the day, week, and month. I've personally sold and shown many condo and cabin units and would be delighted to help.
Beware the (I'll get your home sold in a week) agent
I hear this one all the time from prospects looking to list their house. "Well, agent xyz told us that if we listed with her, she'd have it sold in a week." This would fall into the category of "If it sounds too good to be true, the probably is." The majority of agents are not going to make this claim, but rather will give you an honest market analysis, inform you as to how weak or strong the market is, especially the market in which your home resides, and present the objective facts. A good agent will then lay out an effective marketing plan, where the majority of the focus should be on "online marketing". Be careful to not get caught up in empty promises, reduced commissions, and being talked in to lowering your price below market value (unless you must have a quick sale). The key to choosing a good listing agent is to objectively determine who is going to provide you the best opportunity to sell your home. Will your listing agent also aggressively work to find buyers, or will they just list your home and wait for another agent to do the work.
Dry Dock
The Dry Dock, connected to Four Season's Resort offers a simplified menu, but consistent delicious food. One of the few restaurants on West Lake Okoboji, the Dry Dock offers up legendary breakfasts, great lunches and dinners, and the local favorite Friday Night Fish Fry. Sit inside or out after arriving by foot, car, or boat.
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