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It’s not hard to find chatter concerning how a short sale or a foreclosure affects your credit.

Frankly, the differences between a deficiency judgment and a negotiated note from a short sale are considerable.

There’s no gray area here….

A short sale involves the negotiated sale of the property on behalf of the borrower to a third party for less than what is owed to satisfy the mortgage and release the lien, as agreed to by the lender, investor, and the mortgage insurer, and occurs prior to the redemption date.

The short sale of real estate is not a questionable practice in today’s troubled real estate market.  It may actually be a necessity. The short sale transaction is  legal and almost always the most beneficial alternative to foreclosure or even bankruptcy. Lenders are motivated to accept short sale offers to for many reasons, and the short sale of your home can result in a benificial situation for all parties involved.

In some cases if the lender is aware you are attempting to sell your home, or if there is an offer, the foreclosure process may be postponed in hopes that it will be sold, thus saving them from  incurring additional expenses.

Who pays the real estate commission and seller’s when a home is sold in an approved short sale?

The lender pays those costs!

Will I qualilfy for a short sale?

There are many factors that will determine whether or not you qualify for a short sale.  Some of them are:

1. The condition of the property
2. Other liens filed against the property
3. Are you in bankruptcy proceedings?
4. Does the homeowner’s mortgage insurance or loan document prevents the lender from doing a short sale?
5. Is there a legitimate “hardship” that has caused the homeowner to get behind in payments or face foreclosure?
6. Will the bank be better off financially through a short sale, selling it at a foreclosure auction, or selling it as a bank owned property?
7. How much time is left before the redemption date?
8. Bottom line: It is ultimately up to the bank to determine if the homeowner and the property will qualify for a short sale.

Advantages of a Short Sale:

Benefit to Borrowers:

• Avoid Foreclosure
• Loan is often reported to credit bureaus as satisfied
• Least likely to receive deficiency judgement
• Minimizes negative credit impact
• FHA Lenders will allow you to purchase again after a 2-year time period following completion of the action.
• Less overall negative impact to your credit score

Benefit to Lender:

• Avoids/ minimizes legal costs and legal fees
• Avoids/Minimizes other incurred costs
• Home is often in better condition than one that fell to foreclosure
• Achieve maximum yield for the lender/servicer

Will there be any tax consequences to doing a short sale?

Typically, the tax consequences will be far less severe than letting the home go to foreclosure.  If the home is sold at foreclosure auction, you will often receive a 1099-A for the amount the lender lost due to the sale.  In a short sale, most lenders will give you a 1099-C for the amount they have lost due to the short sale, if they decide to not seek a deficiency judgment (in almost EVERY case they will opt to send you a 1099-C for the amount of the loss).  We always recommend that you consult with a CPA regarding tax implications. Additionally, we recommend that you become familiar with IRS form 982 prior to deciding the pursuit of a short sale.

Can the bank give me a 1099-C and report my credit as paid less than agreed?

Legally?  No.  Do they do it anyway?  Yes.  So, you will need to keep that 1099-C as proof that they ‘wrote off’ that loss by essentially ‘giving you the difference of the purchase price and amount owed as income’.  The bank can not legally report ‘paid less than agreed’ to the credit bureaus if they accepted partial payment of the note and also sent you a 1099-C (income to you) for the difference of that note.  Talk to a real estate attorney for clarification on the subject.  If needed, you or your attorney can contact the bank at a later date about ‘fixing’ their slight oversight in sticking it to you twice.

Can the bank seek a ‘deficiency judgment’ for the amount they lose by accepting a short sale?

In most states yes, but a lot of the time they will opt to send you a 1099-C and write it off as a loss on their books, or forgive the debt alltogether.  The thing that you should know is that VERY FEW  lenders will seek a deficiency judgment due to the cost to get the judgment and fact that you probably can’t pay it anyway.  99.99% of the time the lender will send you a 1099-C instead of persuiting a deficiency judgment, even when they can legally seek that option.

Once they have sent you a 1099-C, they cannot seek a deficiency judgment.  They can only do one or the other, not both.

The amount of loss to the bank is usually less in short sale, thus the amount of the 1099 (if any) to the homeowner in a short sale is less as a result.

You will want to have an expert on your side dealing with the lender!

Our Mission

Our commitment to the homeowner is conducting each negotiation with excellence and assist in an effective short sale for homeowners while minimizing subsequent liability.  Each homeowner’s situation is treated as if it is our own.  We endeavor to make the process smooth, private, and as free from stress as possible while perpetuating honesty and integrity throughout the transaction.

Effective Short Sale Negotiators

We are a team comprised of experienced Realtors, Title Professionals, Legal Council, and Support Staff focused on your transaction. Inequity or short sale properties are our primary focus. We are effective because our Team has experience working with multiple Lender’s loss mitigation departments,  and have been trained in short sales as a specialty. Our trained staff of mitigaton experts make every effort to analyze, negotiate, and assist in the successful closing of Short Sales.

What We Do

We assist homeowners and mortgage services in negotiating down the amount owed on a home loan.  It creates a win-win situation for all parties by providing the homeowner an option before their property is foreclosed upon, and by achieving maximum yield for the servicer.

Disclosure and Disclaimer

Use this link to see Hutchinson MN Real estate listings for sale for sale.

If you live in nearby parts of Wright, Meeker, and Mcleod County, you probably make more shopping trips to Hutchinson than anywhere else. This is truly a shopping mecca for the area, and the retail sector is large and varied, meeting the shopping needs of almost everyone in the area. In addition to large retail stores, there is also a robust business community in the heart of downtown. The Hutchinson MN EDA is resolute about maintaining and expanding this business, offering generous grants and loans for fixup, exterior work, signs, and awnings. This is one of the few Minnesota cities that has not been affected by a freeway bypass. The bulk of traffic still passes right through the heart of the town. State Hwy 7, 15 and 22 transect this city, and offer access to a major urban location in less than an hour’s drive.

Hutchinson Minnesota has frequently been lauded by various national publications for its high quality of life. Minneapolis-St Paul Magazine designated Hutchinson as one of the nation’s top 50 small cities with great jobs. The city is home to Hutchinson Technology, a 3M facility, and a number of other light industries. Because of demographics, location, and a solid base of employers, the Hutchinson MN real estate market does not suffer from the kind of roller coaster boom-and-bust cycle that afflicts the Minneapolis MN real estate market. However, people who work in Minneapolis are discovering that the commute to Hutchinson is quite do-able, and the quality of schools, parks, and municipal services are a big drawing-card. One could only expect that trends of population and housing demand will continue and probably increase sometime in the future.

Hutchinson MN Real Estate for Sale at Great Prices!

At any given time, the the Hutchinson MN MLS will offer about 150-170 single family homes for sale, with an average list price usually under 200K. Opportunities vary from vintage homes constructed in the later part of the 19th century to newer walkout ramblers, splits and two stories situated on small acreages.

If you are shopping the Hutchinson MN real estate market for something more affordable, townhomes and condos might be a viable option for you. There are usually a couple dozen of them or so on the Hutchinson MN MLS, at an average asking price of around the mid 100’s. Townhome options include affordable side-by-side style to luxury one-level quads, like the ones you might find in the Ravenwood development.

Your Hutchinson MN Real Estate Agent

Hutchinson MN is a major part of my core service area, and I have had years of experience with helping people buy and sell homes here. I attribute the success of my career to repeat business, and to generous referrals from satisfied clients. My goal as your real estate agent is to offer vigorous representation, top-flight service, and all of the information you need to make a wise decision.

Browse the inventory of Watertown MN homes for sale here.

Watertown, Minnesota is located along the south fork of the Crow River in northern Carver County. Although the city is conveniently located within the Twin Cities 7- county metro area, it still retains the charm and slower pace of small town living. This is a town where people still wave at each other when they drive by. They will probably strike up a conversation with you if you visit a local café, and in the winter you can still hop on your snowmobile and catch miles of snow covered trail right outside your back door.

Why Purchase Watertown MN Real Estate?

Watertown is a growing community with a population in July 2008 of 4,118, with an overall population increase since 2000 of 36%. The estimated median household income in 2008: $60,145 (it was $47,500 in 2000). The city has a solid base of employers, but most of the growth is due to an increase in Minneapolis commuters who have discovered the benefits of purchasing in this community. It is strategically located between MN Highway 7 and MN Highway12, providing two major routes into the metro area. The drive itself is approximately 30 miles from downtown Minneapolis, and the real estate prices are favorable compared to the inner-tier suburban homes for sale.

The Watertown-Mayer school district (ISD 111) is known for academic excellence, and there is a labyrinth of parks, trails, and a multitude of outdoor recreational opportunities. Did you know that there is also 102% financing Home Loans available in Watertown? The purchase of a home in this growing community just makes sense.

Watertown MN Homes for Sale

According to the NorthStar Regional MLS, there are 38 single family Watertown MN homes for sale (12/09,) offered for an average asking price of $319,287 at a cost of $138 per finished square foot. The bulk of them are listed under $300,000.

The Watertown MN real estate market is diverse. There is a new single family home development in Forest Hills, with single family quality homes constructed by DJ Dalbec Inc. Surprisingly, there 13 single family homes priced under $200,000, including newer splits with unfinished basements, offering instant equity to home buyers who are eager to finish off the lower levels.

Townhomes and Condos

Watertown MN townhouses are even more affordable; prices range from about 100-300k, and include everything from side-by-side units to twin homes with all living facilities on main floor. These townhomes have a wide demographic appeal, and are in-demand by first-time buyers, Arizona snowbirds, and anyone who wants to enjoy the benefits of home ownership without the responsibility of maintaining lawns, driveways, and building exteriors.

Read more about Watertown, MN from the city-data.com website…

Your Watertown MN Real Estate Agent

Watertown  MN real estate is one of my favorite markets because there is truly something for everyone here. The affable demeanor of the residents makes it even more enjoyable. I know this market, and will offer professional representation with red carpet service. Please call me at (952) 210-0436 for a free home buyer or home seller consultation.

Browse Minnetrista MN real estate listings here.

Do you own horses? Do you own boats? If you found this site by googling “Minnetonka lake homes” or “Hennepin County MN horse property,” then you should bookmark this page. There is a good chance that I can show you some Minnestrista real estate that would suit your needs for either.

Horse Lovers:

Minnetrista is one of the few cities in close proximity to Minneapolis that allows horses. If you find the right property with small acreage, you can be sure that the City of Minnetrista will do its best to make your horse and your neighborhood compatible with each other. The city strives to maintain good sanitation and a high quality of life for both your horse and your neighbors. There are reasonable ordinances in place to assure the welfare of your horse and the quality of the local environment. The rules were written to benefit the welfare of your horse, and the local residents. But be forewarned; the inventory of horse properties is sometimes very limited. If you find your ideal property here, you need to act decisively!

Boaters:

Is this a good place to own a boat? Well, that’s a no brainer. Just take a look at the map and you will see plenty of blue coloring. Minnetrista is situated on the west side of Lake Minnetonka, Hennepin County’s premier recreational lake. To be more specific, Minnetrista shoreline is found along a large bay called Halsted’s Bay. If you like waterskiing, you will think you are in heaven. If you like fishing, you can expect to find your bliss here. King’s Point is a hot walleye fishing spot. There are also respectable numbers of smallmouths and northern pike, and the place is teeming with panfish.

Minnetrista MN Homes for Sale

Some of the most splendid Lake Minnetonka luxury homes are found right in Minnetrista. There are eye-popping lakefront property estates in the neighborhoods of Enchanted Island Park and Palmer Pointe. Some of these dream homes are mansions with several hundred feet of prime lakeshore. Quality construction is found here, and many homes were constructed by notable builders such as Keith Waters or McNulty. At any given time, there are one or two dozen Minnetrista lake homes for sale. Prices range from 5M to more modest ones at 600K.

Of course, not everyone in Minnetrista does not live in a lake home. The real estate market here is eclectic, and at any given time, there are seven or eight dozen homes for sale on the Minnetrista MLS, at an approximate average list price of about $900,000 to $1,000,000.

Westonka School District 277 featured links:

Westonka Edge

Westonka Annual Report

Westonka Test Scores

Innovation and Excellence

Westonka Schools fast Facts

Your Minnetrista Real Estate Agent for Life

Thank you for visiting this site. If you visit, I would like to be the first one to welcome you. I live here and practice real estate here. I know the market, the homes, and the community. As my future neighbor, I want you to be as happy here as I am.

Whether you are buying or selling a Minnetrista MN home, please call me at (952) 210-0436. I will help you in any way that I can.

See Waconia MN real estate listings for sale here.

First and foremost, this city is known for being home to Lake Waconia, one of the largest lakes in the region, second only to Lake Minnetonka. It is fully recreational, has a maximum depth of 37 feet, covers just over 3,000 acres, and the water clarity is nearly five feet. If you are looking for a lake home, this place will probably be on the top of your list.

The city itself has plenty to offer, too. The award-winning school district is a big reason for many to move to Waconia. This is also home to Crown College, Ridgeview Medical Center, the quaint downtown “Shoppes of Waconia”, a brand new Super Target, remodeled Mackenthuns Grocery, and residents who take pride in the friendly, small-town atmosphere. They also take pride in their local parks, especially City Square Park. City Square Park offers its “Music in the Park” program every Sunday throughout the summer, and is also the host location for the annual “Nickle Dickle Days”.

Did you know that a 100% financing loan program still exists? Waconia is eligible…

New Waconia MN Homes for Sale

New Waconia homes are being constructed by award winning builders such as Matamy, Brandl Anderson, Centex, Trumpy, and Sondergaard Forcier Builders. Of the 163 homes that sold and closed in 2009, Northstar Regional MLS indicates that 83 of them were built in 2000 or newer.

Today, there are 105 Waconia MN homes for sale on the Northstar Regional MLS (2/2010) at an average list price of $292,578.00. Choices include newer side by side townhomes for first-time buyers, stately two story homes built around 1920, and newer developments such as Pinehill, and Waconia Landing, a community with deeded access to the lake.

Waconia MN area School Information

Waconia Public School district 110 has created a learning environment that enriches the lives of every student. From education supported by the latest technology, extra curricular clubs and activities, the Edible Classroom, Sports, music and more, Waconia Schools offer students every opportunity to develop self confidence, teamwork, and an environment to thrive and succeed. Watch video

Waconia Public School District 110

St Joseph Catholic Church and School

Trinity Luthern Church and School

Crown College

Your REALTOR for Waconia Minnesota

Not only do I serve this area, but I am also a proud resident. My personal and professional reputation depends upon client satisfaction. Whether you are buying or selling, you can be assured that I will represent you well, provide due diligence, and ensure a smooth transaction.

If you need help, please call me at (952) 210-0436. Your Waconia real estate agent is ready and willing to help.

The Come Home to Edina program is a 2nd mortgage program offered through the Edina Housing Foundation.  The program is designed to help you own a home in Edina.

The City of Edina has a lot to offer.  Major employers such as Jerry’s Enterprises, Fairview Southdale Hopsital, and Southdale Center all call Edina home.  The Edina Public Schools are highly rated for both academics and sports.  The Edina High School boys hockey team won the MN State Hockey Tournament again in 2010.

The population of Edina is approximately 48,000 people.  It is located just 9 miles from Minneapolis and is centrally located near many central highways.  Residential properties comprise the majority of the city, which is about 95% developed.  With that being said, there are many great opportunities for housing within the city.

Click on the link for more information on the Come Home To Edina program, or contact me for more information.  For a list of Edina Homes for Sale that may meet the program requirements, click here.

edina homes

Bank Owned Foreclosure properties, or more commonly referred to as Real Estate Owned (REO’s) are flooding todays market at record rates.

Buying an REO property can be a great way to save money and get a fantastic deal, but it can also be a challenging and frustrating process, so be prepared.

A Guide to Buying REO’s

What is an REO Property?                                      

A property that is owned by a Lender, typically a bank, after an unsuccessful sale at a foreclosure auction (or Sheriff Sale). The Lender will usually set the opening bid for at least the standing loan amount, and if there are no interested bidders, the bank will legally repossess the property after the redemption date.

How do banks sell their REO’s?

Often the Banks hire Asset Management companies to  help move their REO Inventory. These management companies work closely with independant Real Estate Agents to help with the marketing and selling of these properties.

How do Banks decide on a price?

Once a Lender takes over a property, they need to determine a current market value. This is typically done by ordering one or more BPO’s, or Broker Price Opinions, which are completed by specially trained Real Estate Agents in the respective markets. Based on their findings, a property is usually priced within 10% of the determined value, although there are sometimes exceptions. Condition is also factored in when determining an opinion of value.

Should I make a low-ball offer?

REO’s are priced to sell quickly, but as close to market value as possible. The perception is that banks are desperate to get rid of these properties, but it is rarely the case. Once a sale price is determined, exposure on the market and an absence of offers is usually what drives price reductions. Low ball offers are often not taken seriously.

I offered what they are asking, but still didnt get the house. Why?

Lower than market pricing often draws multiple offers,  which can result in a property selling for far over asking price. Do your homework. Understand the market you are shopping in, and ask your Realtor questions. Success often comes to those that make their offer based on value rather than list price. Remember that declining market values have already paved the way to huge discounts. Anything further is just a bonus.

Are REO properties in poor condition?

Some are, some are not,  but because Lenders have aquired these properties though foreclosure and know virtually nothing about them, most are sold as-is, so its up to you to conduct your own due dilligence and perform an Inspection so you know what you are getting into.

Will REO banks make repairs? 

Maybe.  Sometimes repairs are made before the property hits the market, and in some cases repairs can be negotiated, especially if the repair is required by the new Lender in order to approve the loan (ex. FHA and USDA).

Ive made an offer, so when will I get a response?

Again, depends. Typically it takes 24-72 hours for a response, but have your Realtor find out when submitting your offer. Offers with response time contingencies are usually ignored, or can void your offer before it is ever reviewed, so be prepared to be patient.

Where do I find REOs for sale?

REO property lists are all over the internet, but keep in mind that many are outdated, inaccurate, or incomplete, and many charge a fee. There are thousands of REO’s available in our market, but the only way to get an up-to-date and complete list is to work with a knowledgable real estate agent. The Seller almost always pays their commission so it will cost you nothing, but could save you thousands.

Watertown MN is a great place to call home.   The town offers a small town feel with an easy commute into Minneapolis.  Located on the Crow River, about 35 miles west of Minneapolis.  With other towns such as Waconia, Delano and Mayer close by, shopping, restaurants and other amenities are never far away.

Take advantage of the tax credit and purchase this custom home located at 828 Quail Pkwy.  A quick close is possible on this property!  This 2800+ sq ft home offers 3bedrooms, 2 baths, and a partially finished walkout basement, with an additional 2 bedrooms and another full bath framed in and ready to finish!  100% financing is available with the USDA Rural Housing loan program.

For a list of Watertown homes for sale, click here.

Rural Housing Guy

USDA Loans are offered through the Rural Housing Division of the US Department of Agriculture. USDA Loans were created to facilitate housing and development in America’s rural areas. The USDA offers affordable home loans so that individuals and families can afford housing in the rural areas they want to live in. USDA Rural Development loans are one of the last remaining 100% financing programs. The government offers the zero money down option so that rural borrowers can have access to affordable mortgages. That is why the USDA does not require any down payment on their rural housing mortgage loans. USDA Rural Development loans are the perfect way to finance your rural property without coming up with a down payment.

Some of the USDA Loan program highlights include:
• 100% Financing – No Down Payment Required
• No Mortgage Insurance
• No Cash Reserves Required
• Low Fixed Rates
• Unrestricted Gifts
• Loans to $417,000
• Purchase or Refinance
• Excellent Credit Not Required

Along with the other benefits of this program, any closing costs and prepaid expenses not covered by the seller can be financed in, if the appraisal supports it. This is a unique feature with a USDA Rural Housing Loan.

Income, Property Location and some other restrictions do apply with USDA Loans, however you might be surprised to find the communities that do qualify. With rates on USDA loans similar to rates offered for VA and FHA loans, the monthly payment can actually be more affordable because the USDA home loan does not require monthly mortgage insurance.

Search USDA property eligibility.

We can review your USDA loan scenario and give you an answer in less than 48 hours. Send a message today to get your 100% financing, no down payment USDA home loan!