The Short Sale Process Defined in the Seattle Market
What Is A Short Sale?
A short sale is a work out program that allows the customer to sell the home for less than total amount owed. Upon final approval, a short sale can help Seattle homeowners avoid further collection activity or foreclosure action.
Documents Required To Begin An Application
From the REALTOR
• Fully executed listing agreement
From the Homeowner
• Signed and dated financial worksheet listing all monthly expenses.
• Signed and dated hardship letter (why they are unable to pay the mortgage).
• Letter authorizing the REALTOR access to information on the account. It must be dated and include the last 4 digits of the borrower’s Social Security Number, their signature, the full account number and the property address.
Additional Information
• Short sale approval is good for 30 days. If closing does not occur within 30 days, the entire short sale package may need to be resubmitted with updated information, or the approval process may need to start over.
• REALTOR or homeowner inquiries should be directed to the negotiator assigned to the file, whose information will be communicated during the introduction call.
• REALTORS are generally allowed 5% to 6% commission based on investor rules. If dual agency applies, maximum commission is 5%. Some investors operate on a reduced commission structure and the actual commission schedule can be confirmed during the introduction call.
• This must be an “arms-length” transaction. The property may not be sold to anyone the seller has a close personal or business relationship with including family, friends or neighbors.
• During the introduction call the following will be addressed:
- Commissions
- Fees and costs
- Pricing of the property
- Timeline
• In order to reduce the 37 day response time the liquidation team is strongly recommending that the homeowner and/or REALTOR notify their Home Mortgage of their intention to sell their property as soon as the listing contract is signed. This will allow us to complete the property valuation and borrower financial evaluation prior to receiving an offer. This significantly reduces the short sale decision time on a submitted offer.
• In some cases investors and/or PMI companies require the mortgag
ors to sign an unsecured note for some or all of the difference between the net proceeds from the sale and the total amount due. This is communicated as part of the response on a short sale offer.
This is our estimated timeline based on business days and assuming all documents are submitted in completed form and timely.
• Complete short sale application received
• Short sale application activated
• Complete application assigned to negotiator
• Incomplete application will delay process
Event Timeline
(Business Days)
Total Process
(Business Days)
• Complete short sale application received
• Short sale application activated
• Complete application assigned to negotiator
• Incomplete application will delay process
Event Timeline
Total Process
(Business Days) 37
• Complete short sale application received
• Short sale application activated
• Complete application assigned to negotiator
• Incomplete application will delay process
• Negotiator initial review
• Introduction call to REALTOR and homeowner
• Property evaluation completed (appraisal or interior BPO per investor requirement)
Additional Steps:
• Mortgage insurer approval
• Investor approval
• Additional liens negotiated by REALTOR
• A completed net sheet/HUD (our payoff is not necessary)
• Fully executed purchase contract with all pages initiated by buyers(s) and seller(s).
• Buyer pre-qualification letter or proof of funds if cash offer.
All items above complete
• Application decision
• Decision letters issued
Property Tax Assessments in the Seattle-Metro Area
Did You Know?
In Seattle, Washington, property taxes account for 30 percent of tax revenues for the entire state. A large percentage of these tax revenues go toward educating our community’s young people. In addition, our police, fire, libraries, and parks and recreation are funded with this money. Each year at this time, Seattle, Washington homeowners receive their annual property tax assessment. Though many of us greet these statements with some trepidation, the assessment presents a perfect opportunity to think about your home’s value, and the value it brings to the community.
By keeping school levies, community improvements, and public services in mind, you’ll have a greater sense of where your hard-earned money is going.
How Do They Determine Values?
Disputing Your Assessment
Your Tax Assessment
$7500 Tax Credit Assist You IN SEATTLE
FIRST TIME HOME BUYER TAX CREDIT
The passage of the Housing and Economic Recovery Act of 2008 should not only benefit hundreds of thousands of Seattle home buyers and sellers, it also marks the beginning of the next real estate cycle. Two of the most significant provisions in this legislation are first-time home-buyer tax credits and permanent increases to FHA loan limits. In order to qualify for the first-time home-buyer tax credit of 10% of the home purchase price (up to $7,500), buyers must not have owned property within the last three years and must make their purchase between April 9, 2008 and July 1, 2009. The credit phases out for individuals making more than $75,000 or couple making more than $150,000 a year. The credit functions much like an interest free loan from the government. It is not a tax deduction and must be paid back in equal installments over 15 years. The last time the government passed a tax credit for Seattle home buyers in the 1970s, 535,000 people took advantage of it, sales of homes increased 10%, and inventory of new Seattle homes and properties on the market went from over 10 months to under 6.
Increasing FHA loan limits
As much as $625,000 (varies by area) will help many potential borrowers qualify for affordable mortgages. Loan limits in our area are $xxx,xxx.
While there is a good selection of homes in the more affordable price ranges, there is not an overabundance. Homes in the more affordable price ranges will only go up over this next ten-year housing cycle. The ripple effect of increased sales in the more affordable markets will eventually cause a chain reaction of sales up the price points, helping to stabilize the entire housing economy. If you are interested in learning more about how this new legislation could affect your and your home, please feel free to contact me. I would be happy to answer your questions or put you in to touch with a qualified mortgage consultant who can discuss financing options with you.
Insist on a Quality Home Inspection when Buying in Seattle
What Is an Inspection?
A home inspection in Seattle takes place after you’ve made an offer on a home that the seller has accepted. A professional will examine the home to ensure it meets specific codes and laws as set by the City of Seattle, King county, and state of Washington. Put simply, the purpose of a home inspection is to make certain that the home you’re about to buy doesn’t have any major defects of problems that will cost you money down the road.
What Are They Looking for?
A home inspection usually includes an examination of a home’s major systems, such as heating and air conditioning units, plumbing, and electrical systems. It might also include looking at the roof, attic, insulation, walls, ceilings, floors, windows, foundation, and basement or crawl space. Once the inspection is over, the inspector will prepare a report detailing what he or she found. If any major repairs are needed, you will work with your Realtor® to determine how to proceed.
Finding a Good Inspector
Your Realtor® is likely to know someone who they’ve worked with in the past that they’d recommend. However, if you’d rather find an inspector on your own, you can start with home inspection organizations such as the American Society of Home Inspectors or the National Association of Home Inspectors. Once you have narrowed the field of inspectors, ask to see their records of experience as well as referrals from past clients. Also, make sure they are experienced in Seattle and King county residential inspections. You can ask them for an estimate, too. When you’ve found the right inspector, schedule a time for the inspection, and be present as it’s going on. You’ll learn more about the home you are buying and can ask the inspector questions. The inspector might also point out things he or she wouldn’t mention in the report but that you should be aware of nonetheless. Any inspector that doesn’t want you around during the inspection should raise a red flag.
Let Me Help!
As your Realtor®, finding a home inspector in Seattle is just one of the services I offer to you. If you’d like help finding an inspector, I’d be more than happy to put you in touch with one or two with whom I’ve worked in the past. You can also visit www.ashi.org or www.nahi.org to view inspectors who are certified through the American Society of Home Inspectors or National Association of Home Inspectors.
Five Rights to Selling Your Property in Seattle
What Are Your Rights?
In order to sell your property in Seattle in the smallest amount of time and for the greatest return, you need to make sure that it gets maximum buyer exposure by following the five rights: house right, yard right, price right, marketing right, and using the right REALTOR®.
House Right
It’s important to make sure your house is in ideal condition for prospective buyers and other agents. Clean everything thoroughly, including walls, closets, and appliances. Eliminate clutter and excess furniture. Open window coverings and turn on lights for showings.
Yard Right
Curb appeal is everything. Keep flowerbeds neat and weed-free. Walkways should be swept clean. Lawns need to be mowed and regularly watered in the summer.
Price Right
Marketing
The SONNY KWAN Group
The Right REALTOR
I’d be delighted to talk with you about how we can work together to get the best price in the shortest time for your home.
Sonny Kwan - VP of International Marketing -John L Scott 206-819-8228
Fighting Mold and Mildew - What Seattle residence are accustomed to
Did you know?
There are over 100,000 known species of mold, a.k.a. mildew, and it can grow in almost every environment. Since it rains in Seattle, mold can be found throughout the house, it is most likely in your bathroom, kitchen, basement or any place there is excess moisture. Mold and mildew are not only unsightly, left untreated they can create or exacerbate health problems like asthma, headaches, sinus problems, and even depression. While it’s impossible to rid your home of mold completely, there are preventive and treatment methods to keep your home as safe and mold-free as possible. Properties in Seattle are not the only place where mold and mildew pop up. Any homes with moisture that gets trapped are prone.
Testing for Mold
If you suspect you have a mold problem, you can hire a professional to come run tests or you can rely on a do-it-yourself test that can be purchased online. Most “at-home” tests require you to send your sample to an outside lab for results, but it will likely still be less expensive than hiring a professional. For more information on mold testing, contact your Realtor or the City of Seattle health department.
Stop It Before It Starts
Most mold feeds on moisture. In order to keep it at bay, you need to keep your home as dry as you can. Clean rain gutters to prevent flooded basements and rotted roofs. Repair leaks and cracks in the floor, foundation, or walls. Apply a waterproofing compound to basement floor, walls, and any cracks you find. Keep a dehumidifier in rooms that tend to be damp and keep them as warm as possible during winter.
Getting Rid of Mold
Cleaning an area of mold that is only a few square feet can be done yourself with disinfectants and scrubbing. Areas larger than 30 square feet will most likely require the help of a professional. Since Seattle is such an eco-friendly city, for a green approach, tea tree oil, a powerful antibacterial and antifungal agent, will kill mold when mixed with warm water. No matter how you choose to get rid of mold, you must be vigilant about keeping the area dry and clean, or the mold will come back. Summer months in Seattle are not to be taken for granted, mold still exists in these temperate climates.
Let Me Help
10 Tips for Buying a Fixer Upper in Seattle
Several Key Home Buying Tips To Understand With Seattle Real Estate
Did you know?Whether it’s a starter home, an investment property, or simply a fun project, according to the National Association of Realtors®, buying a house in need of some TLC requires a few special considerations. · Purchase a home that is at least 30 percent below the market value of comparable homes in the neighborhood. · Choose a location with a low crime rate, good schools, and quiet streets. There isn’t anything you can do to cure a poor location.
· Choose a house with three or four bedrooms. Smaller homes are unlikely to have the same buyer appeal.
Top Tips for Home Sellers
Use a Realtor®A Realtor® is an agent or broker who belongs to the National Association of Realtors and subscribes to its strict Code of Ethics. Along with maintaining a high level of knowledge about real estate and marketing your home to potential buyers, a Realtor can help you evaluate and negotiate offers, remove contingencies, and assist in the escrow process. Assemble a Trusted TeamIn addition to choosing the right Realtor, you should also enlist the services of a title insurance representative, a homeowner’s insurance agent, and an escrow representative. Make Your House Sparkle!
New listings often get a lot of attention. So make sure your house is “show ready” before the keybox is on the door or the sign is in the yard. Ask your Realtor to advise you on which inexpensive touch-ups can reap the greatest reward. Also, get his or her opinion on more extensive cleaning, repairs, or renovations before you arrange for them.
Top Tips for Home buyers in Seattle
Get Pre-Approved
In addition to getting a good idea of how much house you can afford, getting pre-approved for Seattle homes in advance shows sellers that you are serious about buying—they might even consider your offer more seriously than unapproved buyers.
Make a Strong Offer
Use a Realtor
®A Realtor® is an agent or broker who belongs to the National Association of Realtors and subscribes to its strict Code of Ethics. Along with maintaining a high level of knowledge about the Seattle real estate market, a Realtor can help you evaluate homes, negotiate offers, remove contingencies, assist in the escrow process, and assemble a strong team of home inspectors in Seattle, title insurance representatives, lenders, and escrow agents.
Be Ready to Act Quickly
What you want in a house, how much you’re willing to spend on it, and make a commitment with your Realtor that you will be able to get in touch with each other 24/7. You never know when the right house could come on the market, or how much might ride on a 9 p.m. phone call. Sonny Kwan has his cell phone by him anytime his clients have questions on the Seattle home buying process. his number is 206-819-8228
Be Flexible
Know Your Risks
Use All Your Information Resources
Spring Pest Control Specifically in Seattle
Did you know?
Over a million homes will be invaded by rodents each year in Seattle . Insects, including dangerous termites and spiders, account for even more home invasions. To keep your home pest free this spring, here are some easy and inexpensive tips to keep your Seattle home and property pest free.
Mice and Rodents
Mice need only a dime-size opening to enter your home. Mice, rats, and other rodents are not only likely to cause property damage, they can also spread dangerous diseases such as Hanta virus. To keep them out:· Seal cracks and holes, especially those where utilities and pipes enter the house.· Keep branches and shrubbery well trimmed and away from the home.· Store boxes off the floor and inspect them often for unwanted visitors. * Having a cat in the house won’t hurt either.
· If you find any sign of rodents, call a licensed pest professional. or call your Seattle real estate professional for referrals they have worked with.
Spider and Insects
Though most insects and spiders are merely annoying, some, including mosquitoes and some spiders, can bring unwanted diseases into your home. Keep them out by:· Sealing holes and cracks in the home.· Ensuring all windows and the chimney have secure screens on them.· Keeping attics and basements as dry and well-ventilated as possible.· Stacking firewood away from the house.· Cleaning gutters frequently.· Removing dead leaves, grass cuttings, or other dead weeds and plants promptly.
Bats and Birds
Let Me Help
