Short Game?

This year is one heck of year so far, and it’s not even half over. We have short sales on houses and we’re short on water resources, jobs, money, and reasonable gas prices. Ouch!

Banks have never before had so many foreclosures and they are desperate to get rid of them. It used to be the ‘norm’ to see a house for sale about every 2 or 3 miles apart. Now it is typical to see 15 to 20 houses for sale in that same area. And 2 out of every 5 houses are now being sold below market value!

There is such a glut of foreclosures and houses for sale these days that some buyers are opting for the short sale. And a short sale can sweeten the deal. For example, say a house that originally sold for $500,000 is now being offered for $350,000 by the seller. A buyer might offer $300,000 calling it a short sale. It can take up to 5 months to complete a short sale. And at any time another buyer can come in with a higher offer. If a buyer does go for a short sale they must be prepared to wait a while to see if their offer is accepted, so patience is key but the reward could mean a great deal of savings on a house. And an interesting point to know is that in a short sale the buyer gets full disclosure of the true condition of the house, something that is not given in a foreclosure sale.

For the seller a short sale (prior to foreclosure) can lower the negative impact on their credit report. For example, if a foreclosure is say a -10 on a credit report, a short sale could only be a -2 if the seller can provide all of the following information:

• hardship (loss of job, health reasons, divorce, etc.)
• 2 months of bank statements
• 2 years of tax returns
• listing agreement to sell the house
• appraisal of the house’s current value

Following are foreclosures/bank owned houses in Fremont. I was able to find how much some of them were listed for prior to foreclosure. Had a buyer sought a short sale for less than the listed amount prior to foreclosure there would have been a good chance the buyer would have gotten the house for that amount. Now the trick is to find out which houses are about to go into foreclosure.

38041 Palmer Dr – 3/2 – 1840 sf $729,000
53 Leslie St – 4/2 – 4791 sf $488,900
40484 Shaw Ct – 3/1 – 950 sf $419,900 (Feb. listed for $389,000 prior to foreclosure)
4860 Balboa Way – 3/2 – 1330 sf $367,000 (Feb. listed for $409,900 prior to foreclosure)
5553 Roundtree Ter – 2/1 – 1006 sf $264,500 (Feb. listed for $269,000 prior to foreclosure)
39255 Sundale Dr – 3/2 – 1204 sf $523,500
4742 Serra Ave – 3/2 – 1701 sf $620,000 (March listed for $544,000 prior to foreclosure)
39366 Mariposa Way – 3/1 – 948 sf $540,000 (March listed for $475,000 prior to foreclosure)
4667 Alameda Dr – 4/2 – 1593 sf $569,900 (listed for $549,900 prior to foreclosure)
4419 Terra Cmn – 4/2 – 1631 sf $665,000 (March listed for $599,900 prior to foreclosure)
4992 Omar St – 5/3 – 1971 sf $488,900