We may be 6+ years into the housing downturn here in CT and short sales shouldnt be a mystery to anyone anymore...however I am still shocked at just how many buyer's agents attempt to represent clients through these transactions without the slightest clue of how short sales work. This along with inexperienced listing agents on the other side of the short sale are likely the #1 reason so many short sales fail. Time and time again I see short sales fail simply due to agent mishandling. Sellers need to take care in selecting the agent to list their short sale.

But today Im talking about buyers. As a buyer you also need to make sure your agent is experienced in short sales - or prepare for a bumpy ride and a slim chance of seeing a closing. There…

GMAC - by far my favorite lender to work short sales with strikes again with another smooth short sale approval...

When my seller was forced to relocate for work, he was stuck with an underwater house and few options except to short sell the home.

This Colchester, CT home went on market priced well and agressively marketed. Within a week a bidding war erupted and the home was soon under contract. Within 2 weeks GMAC was ready to approve and we had but one obstacle - the PMI company. A week of negotiatons with the PMI company resulted in my seller agreeing to a small note in order to get the short sale closed.

It took the buyer just a few short weeks to pull their loan together and just 8 weeks after listing the home - we closed.

OWED:…

Southington Connecticut Short Sale Report - 2012

Short sales are 8% of the current market inventory in Southington CT. There are currently 381 homes on market in Southington CT with 32 of those homes are listed as short sales.

However, short sales make up just 4% of Southington's sold inventory for the past 12 months. 417 homes have sold in Southington in the past 12 months with 15 of those homes being short sales 

On its face this would sound as if only half of homes in Southington listed as short sales actually close...or...short sale inventory in Southington has doubled in the last year. Further examination of the mls data shows that 6% of all listed inventory in the last year was short sales, and also that the market share of closed…

While in theory pre-approved pricing on short sales sounds fantastic...the reality often proves the opposite.

There are a few of these programs currently floating around. FHA has always had a preapproval process where an appraisal of the property can be ordered prior to having a buyer. HAFA has a similar model. Some lenders have their own in-house preapproved short sale processes, and Bank of America has their Co-op Program (which actually REQUIRES the homeowner to be pre-approved before a contract comes in). All offer the opportunity to get an appraisal or BPO (brokers price opinion) of the home prior to even going on market.

So - the homeowner decides they want to short sell and before they even call a Realtor, they call their helpful lender and…

The rising costs of living and long daily commute left these CT homeowners tired and scraping change to make ends meet until they decided they had enough. Realizing they would likely never pay their way out of the upside down home they decided to cut their losses and short sell their home to move closer to work.

Originally a Bank of America first and second mortgage, the week we listed the home the first loan got sold to Nationstar, making the process a little more complex than originally anticipated.

It took two months to find a buyer for this home in the dead of winter. A short sale package headed to the lender. Nationstar is hit or miss. They have been known to be on the ball and approve in a few short weeks, and I have also seen the…

Bloomfield, CT 06002 

Bloomfield is an interesting combination of suburban, historic and modern housing in a town that is as committed to providing natural open space as it is to expanding its commercial development responsibly.

The town of Bloomfield was incorporated in 1835 and adopted its current name.  Bloomfield was primarily an agricultural community but after incorporation, the town began to diversify its economic base. 

One of the first things you will note about Bloomfield is that it has the charm and beauty of a small Connecticut village with its location convenient to Hartford and Bradley Airport and is located halfway between Boston and New York.  Bloomfield is bordered by Windsor, East Granby, Simsbury, Avon, West Hartford and…

Mansfield, Connecticut

Mansfield, Connecticut is a diverse, cultural, prospering town in the heart of Tolland County that appeals to families, young couples and seniors alike. From rolling farmland, to parks and hiking trails, to the ever-growing community of shopping and casual nightlife, Mansfield is the perfect location to begin, raise and expand your family. 

Located right off exit 68 on Rte 84, just a short commute from Hartford, Mansfield holds a major appeal being the home of the prestigious University of Connecticut, smack in between of Boston and New York City.

Home to some of the most competitive schools in the state, Mansfield has several elementary schools for kindergarten through fourth grade students, a middle school, and high…

Should I short sell or just wait for my equity to come back?

While every situation differs I decided to take a very common scenario here in CT and run the numbers just to see how they look:

Lets say you bought (or refinanced) an average Connecticut starter home for $250,000 5 years ago.

Lets take an average overall 30% loss in values since those peak years.

The current value of your home: $175,000.

The current balance on the $250,000 loan with regular payments over the last 5 years (at 5% interest): $230,000.

YOU ARE NOW $55,000 UPSIDE DOWN

LETS ASSUME DEPRECIATION STOPS TODAY AND REAL ESTATE IN CT STARTS APPRECIATING IMMEDIATELY AT 4% ANNUALLY (THE HISTORICAL RATE)

SCENARIO #1: STAY AND PAY. You wish to sell your…

Windsor, CT is a diverse, culturally competent suburban town with gorgeous and expansive public open space, very desirable residential areas and an immaculate corporate area.

Windsor was the first English settlement in the state of Connecticut in 1633.  The coastal areas and River Valley were typical areas of settlement, relying on the rivers for fishing, water and transportation.  Windsor eventually became a farming community in the latter part of the 1600’s with seeds brought up from Jamestown Colony in Virginia.   Tobacco farming has a long history in Windsor as it was already being grown by the native population.  Windsor’s tobacco leaves are highly prized by fine cigar makers and are used as the cigars outer wrapping.

Windsor lies on…

Q: Will I still owe the difference after my CT short sale?

A: It all depends on what your short sale approval letter says.

Connecticut is a deficiency state. What that means to any CT homeowner is that your lender can pursue you for a monetary loss resulting from a foreclosure or short sale of your property - unless your short sale approval letter says otherwise. Many people mistakenly believe that letting the home foreclose, walking away or simply sending in the keys absolves them of their responsibility for their mortgage - however this is absolutely not the case.

When you signed up for the loan you agreed:

• To pledge the property as collateral for the loan
• To sign a promissory note to pay back the loan

IN A FORECLOSURE the…