March 2012

The answer to that can be yes, no or maybe so.

While most lenders have not laid out specific rules saying you must be in default to qualify for a short sale, it has been traditionally more difficult to get a short sale approved for a paying client.

However I have noticed more flexibility in this, especially in the last several months. While some investors will still require a default in order to be approved into a short sale, many will not. Keep in mind your lender - Bank of America, Chase, GMAC, Wells Fargo, Nationstar , etc - usually just services your loan. An investor actually owns it and calls the shots. I have seen Fannie Mae and Freddie Mac owned loans be approved lately for current clients. If your loan is insured by the FHA, they…

Over the last few years here in CT it has become clear that short sales are here to stay – at least for several more years. The good news is there have been many changes in the short sale world as the economic slump continues. A few trends I’ve noted over the last few years as CT's top producing short sale Realtor:

• Short sales are getting faster and easier overall
• The big banks – Bank of America, Chase, Wells Fargo, GMAC and Citi have all made significant improvements to their short sale processing over the last few years. While there is no consistency in processing from lender to lender (or even within a single lenders loss mitigation department) – all have adopted predictable and fast(er) systems to get short sales approved. It’s…

• Hire any old realtor. Your aunt's best friend has a license. Surely she could use a commission check.
• Price the house based on what you owe, rather than what your home is worth in today’s market.
• Disregard your agents recommended price reductions. How dare they? It’s already a steal…after all you paid $X just 5 years ago. Don’t people know a good deal when they see one?
• Force severe showing restrictions – if they want your house they will just have to reschedule until it’s convenient for you.
• Be present for showings –no one can sell your home like you can!
• Refuse to make any effort to get your home to show well – it is “as-is” after all. Why should you clean up dirty dishes or vacuum the floor?
• Move out and then…

2011 was a slow year for home sellers in Southington, CT . 397 homes in Southington, CT sold in 2011 at an average price of $249,302, down slightly from 2010.

Should the trend continue, just 10% of current market inventory of 340 homes in Southington is expected to sell in any given month. Another telling figure is the amount of homes that expired in 2011. An expired home is a home that goes on market, but ultimately just does not sell at. In 2011, 207 homes in Southington expired unsold – leaving the odds of successfully selling at just 66%.

What does that mean to you as a Southington, CT home seller? If you are considering going on market, you will have to be very realistic about the value of your home if you wish to successfully sell. You have…

2011 was a stagnant year for home sellers in Tolland, CT . 117 homes in Tolland, CT sold in 2011 at an average price of $284,514, virtually unchanged from 2010.

Should the trend continue, just 5% of current market inventory of 490 homes in Tolland is expected to sell in any given month. Another telling figure is the amount of homes that expired in 2011. An expired home is a home that goes on market, but ultimately just does not sell at. In 2011, 99 homes in Tolland expired unsold – leaving the odds of successfully selling at just 55%. The average listed price of homes currently on market is $316,153 – a 10% difference over the average selling price.

What does that mean to you as a Tolland, CT home seller? If you are considering going on market,…

 2011 was a rough year for home sellers in Meriden, CT . 456 homes in Meriden, CT sold in 2011 – a 20% decrease from 2010. The average sales price of $136,767 is a 7% decrease from the sales prices of 2010.

Should the trend continue, just 8% of current market inventory of 490 homes in Meriden is expected to sell in any given month. Another telling figure is the amount of homes that expired in 2011. An expired home is a home that goes on market, but ultimately just does not sell at. In 2011, 310 homes in Meriden expired unsold – leaving the odds of successfully selling at just 60%. The average listed price of homes currently on market is $165,737 – a 17% difference over the average selling price.

What does that mean to you as a Meriden, CT…

2011 was a slow year for home sellers in Marlborough, CT . 54 homes in Marlborough, CT sold in 2011 – a decrease from 2010. However - the average sales price of $310,103 is actually an 11% increase from the sales prices of 2010.

Should the trend continue, just 6% of current market inventory of 70 homes in Marlborough is expected to sell in any given month. Another telling figure is the amount of homes that expired in 2011. An expired home is a home that goes on market, but ultimately just does not sell at. In 2011, 72 homes in Marlborough expired unsold – leaving the odds of successfully selling at just 43%. The average listed price of homes currently on market is $348,119 – a 10% difference over the average selling price.

What does that mean…

2011 was a rough year for home sellers in Mansfield, CT .  83 homes in Mansfield, CT sold in 2011 - an increase from 2010. However - the average sales price of $189,226 is also a 22% decline from the sales prices of 2010.

Should the trend continue, just 9% of current market inventory of 77 homes in Mansfield is expected to sell in any given month. Another telling figure is the amount of homes that expired in 2011. An expired home is a home that goes on market, but ultimately just does not sell at. In 2011, 61 homes in Mansfield expired unsold – leaving the odds of successfully selling at 55%. The average listed price of homes currently on market is $211,732 – a 10% difference over the average selling price.

What does that mean to you as a…

I’ve been hearing a lot lately about Fannie Mae forcing customers to go into default in order to approve their short sales, so I knew we’d be up for a rough road with this client. While most of my clients are behind in payments by the time they call me, this CT home seller had reasonable income, heavy liquid assets, great credit and intended to not miss any payments in order to preserve her excellent credit.

Any condo in Connecticut is a tough sell right now as condo financing options here have really crumbled. However, after 2 months on market a buyer was secured for the condo. Chase’s (the servicer on this Fannie Mae loan) short sale processing has really eroded over the last few years, and gets more difficult and time consuming all the time.…

After several failed attempts at modifications and several listings with Realtors who failed to short sell his home, this Mystic, CT short seller finally called me to get the job done.

After an initial price correction, a strong buyer was secured for the property in just under 6 weeks and a short sale package headed to the lender.

Aurora can be unpredictable at times. Unfortunately we were out of luck this time as the negotiator assigned to our file proved completely unresponsive. He refused to communicate via email, never answered his phone and his language skills were severely lacking – leading to a long painful road to short sale approval.

3 months of struggles later – this Aurora short was approved, and closed soon after.

OWED:…