The 101 On Short Sales On The 101 In Marin

Everyone expects a deal these days in the real estate market.  We have all been bombarded with the news on these steals and deals in the Bay Area.  Fortunately for Marin homeowners, the trend has not hit this county in the same way as our neighbors in the East Bay, otherwise known as "Vacantville."  If you watch late, late night TV you will be teased by these steals and deals with homes selling in the hundreds of dollars.  These shows were made for people who believe you can get something for nothing, and as the saying goes, "there's a sucker born every minute."

Distressed Properties 101

What is a Short Sale?  The loan balance exceeds the market value of the home.
A Foreclosure?  A notice of default on the loan is sent to the Owner of the property by the Lender and the payments are in arrears.  The Owner has 122 days from the Notice of Default to sell the property prior to the Lender taking it back.
An REO?  Real Estate Owned property is owned by the bank rather than the Owner, and the agreed upon listing price and conditions have been approved by the Lender in advance.

"The best scenario for buyers is the REO.  You do not want to buy a foreclosure until they become an REO; bank-owned property.  The only advantage to the short sale is for the seller to work out a deal with the bank in advance and protect their credit."

That's what my colleague John Skinner, of the Madison Company Realtors has to say.  And according to my broker, Nancie Bottmeyer-

"Short sales create the lower end of the market, and bring false expectations from the buyer, in that they are expecting a bargain."

On a more positive note, last week a Central Marin appraiser had several appraisals that involved multiple offers, some over listing price.  Nancie's quotable quote: Prime properties properly priced, are promptly purchased in any market!