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Our Economic Stimulus Package!

by The Linda Frierdich Real Estate Group

Short Sales

by Andy Gotto

We've had a lot of questions about short sales and how they work so we here at the LFREG thought we might try to shed some light on the subject for the buyers who are contemplating buying a property in short sale status.

A short sale happens when a home must be sold and the seller owes the bank more than the home is worth.  The bank does not want to foreclose (take back) the property, so the bank agrees to take a lesser amount for the sale of the home than what they are owed on the property.  This is a type of what the banks call "loss mitigation."  If the property goes into foreclosure the bank incurs cost associated with possession of the property, and often the value of a home decreases after it sets vacant and without utilities and someone to properly love and care for the home. =)  So the bank cuts it's losses.  The "short" part of the sale is the money that the seller is short in paying off the loan. 

The timeframes on a short sale are usually anything but short. 

There are several reasons for the long time that it can take to purchase a home via short sale.  Let's go through a quick scenario of why it can take so long.  Say a seller borrowed $200,000 to purchase a home one year ago.  For whatever reason, (taxes, disrepair, an ill thought out home equity loan, market changes) let's assume the home is now only worth $170,000.  The sellers still owe $200,000.  So a Buyer comes along and offers $170,000 and the seller, knowing that the home will not sell for more, accepts the offer with a contingency of a short sale.  The seller with the guidance of the listing agent contacts the bank to inform them of the offer, and the ball begins to roll...

The bank must decide what the home is actually worth before they accept or reject the offer.  Generally this involves hiring a third party to do a mini appraisal or two on the home.  Sometimes these mini appraisals don't quite match, and the bank will solicit a third, or perhaps a full appraisal, basically they will do what it takes to determine the value of the home.  This can take some time.

Once the value is determined,the bank must then decide whether or not it is in their best interest to accept the offer.  When we say the bank, we mean the representatives of the bank, and banks have lots of representatives!  Sometimes we are even dealing with two banks depending on the type of financing.  It would be nice if every bank followed the same procedures for the process, but of course there are thousands of banks, and they all do things differently.  The bank reps make these decisions from desk hundreds of miles away, and the contract must cross numerous desks and departments before a final decision is made.

To complicate matters further, the number of these short sales have more than doubled over the last year.  While we do see more than we used to here at the Linda Frierdich Real Estate Group, we know that they are a very small percentage of our sales.  But to the people at the banks who handle these situations, the increase must seem exponential.  The banks are trying to expand their loss mitigation and short sale departments, but they aren't doing it as quickly as we'd like!

All in all, if you are going to Buy a home in short sale status, you will need a couple of things.  You'll need a good, experienced buyers agent.  We've got you covered there!  Next, you will need patience.  A short sale is not a good idea if you have to move in a certain time frame.  These things are typically done on the banks time frame, and there isn't much anyone can do to speed things along.  Believe me, we have tried! =) 

Feel free to get a hold of us here at the Linda Frierdich Real Estate Group if you have any questions!

The Kings Survior Tournament

by Lindsey Bivins

The Waterloo Kings Soccer team, sponsered by The Linda Frierdich Real Estate Group, recently participated in the "Survivor Tournement" at the Metro East Power Haus in Waterloo IL.  This was the boys' first year playing in the tournament and I think everyone had an awesome time!

We are getting ready to start our new indoor season and can't wait for more pictures from the parents!  Click the icon below to view a virtual tour of this exciting tournament.  Thanks to Dale Siedenberger for the pictures!  They turned out amazing!

http://www.visualtour.com/show.asp?T=1797544&prt=10003

Info for Buyers: Senate votes unanimously to amend the Economic Stimulus Bill!!

by The Linda Frierdich Real Estate Group

Last night (2/4/09), the US Senate unanimously passed an amendment to the Economic Stimulus Bill, creating a $15,000 (or 10% of purchase price, whichever is less) tax credit to any homebuyer who purchases any home used as a principle residence!!  The tax credit does not have to be repaid as long as the home is not sold within 2 years of purchase. 

 

With the original Economic Stimulus Bill, there was a $7,500 tax credit which had to be repaid over a period of time and was only for first-time homebuyers.  While the final details of the Stimulus Bill are still being debated, this amendment represents a tremendous step forward in efforts to stabilize housing markets around the nation.  Because of the efforts of REALTORS, we expect the final Economic Stimulus Bill will contain several major housing provisions.  We will continue to update you as the bill progresses through the legislative process.

 

Low rates, reduced housing prices, and a tax credit for buying a home…There has never been a better time to Buy a home!!!   For more information, please call The Linda Frierdich Real Estate Group at 618-719-3134.

 

Our Group was #1 In Sales for 2008*

by The Linda Frierdich Real Estate Group

WHO SAYS HOUSE AREN"T SELLING???            We've got the formula for SUCCESS!                       Call us to get RESULTS!

The Linda Frierdich Real Estate Group                  was Ranked #1 is 2008*

$31,762,289 in real estate SOLD*                            159 Units CLOSED*

Thank you so much to all of our past, present, and future clients for helping us make this happen!  We are so excited to be #1 for the first time!  Without all of you, we could not have made this happen.  We are starting 2009 off strong, so if you ever hear someone say that their home isn't selling, send them our way so they can take part in our success too! 

THANKS AGAIN TO EVERYONE & HAPPY HOUSE HUNTING IN 2009!

Linda, Lindsey, Naureen, Andy, Angi, Sam, & Whitney

*According to the Agent Market Share Report from the Southwestern Illinois Regional Multiple Listing Service, The Linda Frierdich Real Estate Group is ranked #1 in the Realtor Association of Southwestern Illinois for 2008. 

Displaying blog entries 1-5 of 5

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Photo of The Linda Frierdich Real Estate Group Real Estate
The Linda Frierdich Real Estate Group
Century 21 Advantage
103 S Main St
Columbia IL 62236
IL: 618.281.7621

138 Concord Plaza Dr
Saint Louis MO 63128
MO: 314.649.0221
Fax: 618.281.4311

Linda Frierdich is the area's premier real estate professional, offering services in St Louis, Kirkwood, Webster Groves, Crestwood, Ballwin, Arnold, Fenton, Oakville, Columbia, Waterloo, Millstadt, Valmeyer, Dupo, Belleville, O'Fallon, Mascoutah, Fairview Heights, Smithton, Ruma, Hecker, New Athens, Edwardsville, Collinsville, Caseyville, Shiloh, Swansea, Monroe County, Madison County, St Clair County, and Randolph County.  Her team focuses on resale homes, new construction, first time home buyers, condos, farms, land sales, subdivisions, lot sales, single family, multi-family, commercial, foreclosures, bank owned property, military relocation, and building. This site offers options to search real estate in Columbia Illinois and other areas. We offer buyer and sellers services second to none!

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