Category: Distressed Lofts

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Downtown Loft and Condo Short Sales – Distress Sales Below Market

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Downtown Loft and Condo Short Sales
Distress Sales Below Market

While short sales are currently few and far between in Downtown, they still pop up once in a while when a homeowner has a financial problem on a home that was overpriced when previously purchased.

A short sale can happen any time that a seller needs to sell a home for less than what the seller owes on the property. The lenders must sign off on the sale, which can delay or prevent a successful transaction.

Short sales are not short.  They typically take twice as long as the average sale, or longer.  A few years ago, it was not uncommon for a short sales to take more than 6 months to close.

HOME BUYERS:  Get Downtown Short Sales, Foreclosures and Distressed Lofts in your email as soon as they come onto the market or earlier. Fill out my online form.

HOME SELLERS: Before deciding to do a short sale, consider the following:

  • What is it about your current financial situation that has you considering selling short?
  • Do you know the ramifications of a short sale on your credit report?
  • Do you understand that there is a possibility that the short sale will not relieve your debt obligations?
  • Have you met with a housing counselor, a financial advisor, or an attorney?
  • Have you considered alternatives to a short sale?

Short sales are not for everyone.

Not everyone will qualify for a short sale.  To qualify for a short sale, the following are some of the requirements:

  1. The home must have decreased in market value.
  2. The loan is in default, or will be soon.
  3. The seller must be able to demonstrate a bona fide hardship, such as one of the following:
  • Unemployment
  • Reduced income
  • Business failure
  • Damage to the property
  • Death of a spouse or a wage earner
  • Severe illness/medical emergency
  • Large tax bill
  • Divorce/separation
  • Relocation
  • Military service
  • Mortgage payment adjustment to an unaffordable amount
  • Large debt, no assets, bankruptcy
  • Incarceration

4. The seller has no assets.

Short sellers should then contact a short sale specialist Realtor(R), who may ask some the

Tips and Rules for Short Sales:

  • An O&E (preliminary title report) should be obtained early in the short sale process to determine ownership and encumbrances.
  • In a short sale, the seller must accept and the lender must approve the offer.
  • With a short sale, the listing agent will prepare the CMA with the lender in mind.
  • Try to secure your seller’s cooperation in the short sale process early on.
  • Short sale packets should be thorough and in the form the lender wants.
  • The seller’s hardship letter should concisely demonstrate the seller’s financial plight, and how the seller came to be in the current situation.
  • Short sales must be at arm’s length; there can be no undisclosed relationships between any parties to the transaction.
  • When dealing with the lender’s short sale lender it is important to be polite, professional and prompt.
  • After approval is met on a short sale, the parties should do their utmost to meet all terms, including the closing date; failure to do so could cause the lender to retract its approval.
  • Lenders will frequently start foreclosure proceedings even while the short sale request is being evaluated.
  • Even when the lender approves the short sale, it doesn’t mean the seller won’t have to make up the deficiency in the debt repaid.
  • When a lender forgives a short sale seller’s debt, the lender will file a 1099-C, which is a Cancellation of Debt. This could mean the debt will become taxable; sellers should be advised to check with their accountant.
  • There are two main categories of short sales: approved, and third party required, each with different timelines.
  • When evaluating an offer on a short sale, the lender will look most strongly at the buyer’s ability to close.
  • Two types of mortgage fraud are property fraud and fraud for profit.
  • Flopping is a means of artificially lowering the perceived value of a property to purchase it and make a quick profit; it is a form of mortgage fraud.
  • Any transactional funds should appear on the HUD-1; if they do not, it could be mortgage fraud.

Sellers: The first step is to get a free online home evaluation. Fill out my online form.

Copyright © 2014 This free information provided courtesy Corey Chambers, Realtor, Keller Williams Realty, BRE#01889449 We are not necessarily associated with the home owner’s association, seller or developer. For more information, contact (213) 478-0499 or visit DowntownLosAngelesLoft.org Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.
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How Many Amazing Downtown LA Lofts Will You Miss?

How Many Amazing Downtown LA Lofts Will You Miss?
Pocket Listings Provide Plenty of Places to Purchase

DOWNTOWN, L.A. - VIP buyers get the best deals on the the most amazing lofts
DOWNTOWN, L.A. – VIP buyers get the best deals on the the most amazing lofts

How would you like an amazing Downtown Los Angeles loft that more than gains $100,000 in equity in 2 years?  How would you like to lose an amazing L.A. loft that could have been a life-changing home and investment?  Many of my clients and I have enjoyed experiences closer to the first story, the happy story.  At the same time,  I have had to see some others experience the second story, the less happy story.  What makes the difference between the happy loft story and the not-so-happy story?  Of course anyone with $10,000,000 has lots of options.  For the rest of us, the most powerful free resource for buyers is knowledge and access to more properties, more information about the properties, and more knowledge about the Downtown loft market.

DOWNTOWN Los Angeles - Beat other buyers to the best deals on the the most amazing lofts in L.A.
DOWNTOWN Los Angeles – Beat other buyers to the best deals on the the most amazing lofts in L.A.

As more and more buyers try to purchase lofts in Downtown, we are hearing more and more sad stories of buyers who have already been priced out of the market, who wish they would have purchased in 2011 when most were either to broke or too scared to buy a property.  Many others have placed offers on a nice loft, only to be outbid or outmaneuvered by another buyer.  They lose their dream loft.  Still other buyers have searched for a long time, and when they finally placed their offer on the same day of the listing date, the agent completed the paperwork and got it back to them that night.   The offer got to the seller the very next morning, but the seller had already accepted another offer.  They had seen that happen once before.  The best lofts seem to be sold sometimes before they are listed.  Are many of the best lofts and condos selling instantly when they are listed or even earlier?  This is not our imagination.  Many of the best lofts really are sold before they are listed, or shortly thereafter.  This is called a “pocket listing.” It is actually a type of unlisted property that is not on the internet and most real estate agents do not have access to them.  Some buyers get priority information and privileged access to the pocket listings before they are listed.  These lucky and/or smart buyers are called VIP buyers.

One happy buyer — we will call him Jeff Mason to protect his privacy —  just sent me an email thanking me for helping him to buy a loft that more than doubled in value in two years, along with a comp listings showing a similar loft that just sold for more than twice what he paid for his loft.  How did Jeff do it?  Jeff was a VIP buyer.

The best deals on the most desirable Downtown lofts are unlisted
The best deals on the most desirable Downtown lofts are unlisted

Another buyer — we will call him Robert Gallagher —  was able to place an offer on a resale Barker Block for thousands less than other Barker Block lofts.  With only  10% down, he was able to go into escrow with the most desirable loft unit in Downtown with resort-level amenities, low HOA dues, in the coolest neighborhood in the world.  He was able to see the property before it was listed on the MLS. How was Robert able to do it?  Robert had already lost one unit before.  He is a quick learner, and he found out how to become a VIP buyer for free.  That’s right!!   Believe it or not, it cost him nothing to gain access to these pocket listings, as well ask listings of all agents, including foreclosures, REO, bank owned properties, short sales, distressed properties and raw lofts.  Robert got access to the largest number of pocket listings and other unlisted properties.  At no cost, Robert joined the VIP buyer program to gain access to the pocket listings.  Robert was notified by email and text about a pocket listing in the prized Barker Block building.  Robert hear about the property before it was listed to the public, and this time he was the one who was able to see the unit before it was listed, and place an offer before the other buyers were able to.  Rob learned how to go from being the guy who watched other buyers steal his dream loft, and even though he only has 10% down, he is now the VIP buyer who was able to buy a dream loft before other buyers ever knew it existed.  This time, it was the other buyers who missed out, not Robert.

VIP Buyers Get the Deals
VIP Buyers Get the Deals

The biggest secret in Downtown is pocket listings and other unlisted properties.  Knowing about unlisted properties is the first step.  There are many other advantages that buyers absolutely need in order to get maximum advantage.  Buyers need access to the largest number of foreclosures, bank owned, company owned, REO, short sales, fixers, raw lofts and other distressed properties from all agents.  To get the lowest price, the buyer should also use a Downtown specialist agent who knows what lofts in the building sold for less than 30 days ago, before it gets listed on the MLS.  Downtown buyers need to access boldest, most powerful strategies that are required to help the average buyer beat out wealthy international cash buyers who are trying to buy the same unit.  Using an out-of-area agent is just not worth it.  It is simply not worth it to use an agent who does not have access to the very largest number of pocket listings and unlisted properties in Downtown. To get every advantage, Buyer’s absolutely must join the VIP buyer’s program to work with the buyer’s agent team with the largest number of pocket listings in Downtown.

Prices have risen. The number of buyers has increased. The number of easy bargains has decreased. The average buyer today is getting crushed by wealthy investors, cash buyers, and VIP buyers who are buying the property before the average buyer sees it.  It is no longer effective to be the average buyer.  Every buyer must use the most powerful free tools available.

To get the the best investment and best deal on an amazing loft, become a VIP buyer, and gain free access to the largest number of distressed properties and unlisted properties.  Those who are not ready to work with an agent can immediately take advantage of the free Downtown real estate information at http://www.LAcondoInfo.com while buyers who are ready for the best deal today should immediately call the buyer’s team with the largest number of Downtown unlisted properties and distressed properties. Call Corey Chambers at (213) 478-0499 and become the VIP buyer who is able to beat out other buyers to the best deals.

Get free access to up to twice as many amazing lofts in Downtown Los Angeles. Fill out my online form:

DOWNTOWN LOFT LISTINGS:  FOR SALE  |  RENTALS  |  SUBSCRIBE  |  VIDEO

Corey Chambers, REALTOR®
(213) 478-0499
corey@laloft.org
http://www.LAloftBlog.com


The #1 Downtown buyer’s agent with 19 successful buyer transactions closed in 2013, Corey Chambers is a Realtor®, and member of the Top 6 award-winning, 5-Star Yelp rated team.  J.D. Power Award 2012 – Keller Williams Realty ranked Highest in Overall Satisfaction for Home Buyers and Sellers Among National Full Service Real Estate Firms.  DRE#01889449