Hamden, CT Market Report: Real estate sales prices continue to hover at 10 year lows…

Posted by Minna Reid on Monday, November 21st, 2016 at 10:47am.

Hamden, CT November 2016: As the year starts to draw to a close, the average sales price in Hamden continues to hover at a decade low of $190,000, although up a tad from 2015:

Sales prices usually continue to fall through the dead of winter in CT, so it is likely that Hamden will see the average price point fall even further through the end of the year. While sales volume has increased throughout the state, prices have failed to recover significantly. Negative equity remains a problem for those who purchased or refinanced since the early 2000’s, leading to continued short sales and foreclosures. Inventory in the upper price points is plentiful, while buyer demand is focused on homes in the lower price points leading to further stagnation.

 

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Minna Reid
Team Leader – Reid Real Estate Group
Keller Williams Connecticut
Voice or Text: 860.416.1255

Minna Reid  is a  CT Licensed Real Estate Broker Associate with Keller Williams Realty, and Team Leader of Reid Real Estate Group. Reid Real Estate Group is a team of full-time, full-service real estate experts with locations throughout Connecticut, and a specialty in short sales. The Reid Group brings years of real estate experience, intimate knowledge of the local market and the highest levels of customer service and professionalism to help guide you through all of your real estate transitions. Visit us at REIDREALESTATEGROUP.COM.

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Seller walks away from upside down Hamden home with fully forgiven mortgage and $10K in his pocket in this SLS/Citibank short sale!

 

HOME SALE CHALLENGE:

After realizing he would never be able to sell his home for enough to clear the mortgage, this Hamden, CT homeowner quickly came to the conclusion that a short sale on his home was likely his only option to cut his losses and move on.

REID REAL ESTATE GROUP APPROACH:

With an ASC first mortgage and a Citi second,  our seller was looking at a pretty smooth short sale as both lenders are decent to work with. Even better, his odds of getting into a HAFA short sale were pretty high. HAFA, which ends this year,  allows for full debt forgiveness, large payoffs to junior lien holders and even a $10,000 relocation incentive to qualifying sellers.

RESULTS:

After a short time on market a buyer was secured and we started processing the short sale. After some initial troubles and a short sale denial, we had to reapply for the short sale but were quickly approved by ASC ( Wells Fargo) this time, and Citibank followed soon after. Closing was scheduled.
Unfortunately just days prior to closing we received word that ASC had sold their loan to SLS and we would have to seek a new short sale approval with SLS. Fortunately, SLS was able to pick up the file exactly where we left off and produced a new approval within days!
A few days later the sale closed with our seller walking away free of their mortgage debt, and with an incentive check of $10,000!

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Minna Reid
Team Leader – Reid Real Estate Group
Keller Williams Connecticut
Voice or Text: 860.416.1255

Minna Reid  is a  CT Licensed Real Estate Broker Associate with Keller Williams Realty, and Team Leader of Reid Real Estate Group. Reid Real Estate Group is a team of full-time, full-service real estate experts with locations throughout Connecticut, and a specialty in short sales. The Reid Group brings years of real estate experience, intimate knowledge of the local market and the highest levels of customer service and professionalism to help guide you through all of your real estate transitions. Visit us at REIDREALESTATEGROUP.COM.

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Ditech delivers another quick CT short sale approval!

 

Ditech is quickly becoming one of my favorite lenders to work short sales with. It’s usually these smaller guys that could teach their bigger cousins Chase, BOA and Wells Fargo a thing or two about getting things done!

After a few years of renting out their former home, these CT homeowners were no longer able to keep up with their payments and were forced to consider other alternatives. The value of the home had plummeted and there was simply no way to cover the loss on the home. A short sale was ultimately their best option.

Lenders are not as receptive to workouts with investors as they are with owner occupants. Investors are more likely to have their financials heavily scrutinized and to be asked for cash contributions and promissory notes in order to be approved for short sales, which is what I expected in this case.

It took just days to secure a buyer for the home and we quickly went to work on the approval. Ditech, in usual fashion, proved to be responsive and efficient in their processing. Unfortunately, Fannie Mae (the investor on the loan) did request a rather large contribution from the sellers in order to approve. After some negotiations we were able to get this to an acceptable amount for the sellers and Ditech seamlessly sent their approval letter!

Unfortunately Chase, our second lien holder, proved to be their usual slow, difficult self. They forced us into getting extensions on the first while they dragged on and made unscrupulous demands of our sellers. After weeks of haggling, agreement was reached and Chase also approved. A few weeks later, this Ditech/Chase short sale closed!

How to deal with a request for a cash contribution

Top 5 reasons short sales get denied

GET OUR FREE SHORT SALE GUIDE!

 

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Minna Reid
Team Leader – Reid Real Estate Group
Keller Williams Connecticut
Voice or Text: 860.416.1255

Minna Reid  is a  CT Licensed Real Estate Broker Associate with Keller Williams Realty, and Team Leader of Reid Real Estate Group. Reid Real Estate Group is a team of full-time, full-service real estate experts with locations throughout Connecticut, and a specialty in short sales. The Reid Group brings years of real estate experience, intimate knowledge of the local market and the highest levels of customer service and professionalism to help guide you through all of your real estate transitions. Visit us at REIDREALESTATEGROUP.COM.

 

 

How will a short sale affect my credit?

 

In a successful short sale a lender accepts less than what is owed on the mortgage so that the homeowner can sell their home at market value. While there is no “short sale” credit mark, the usual result is your mortgage being marked on your credit as “paid for less than full balance”,”settled for less than owed” or some similar language.

What will that do to the credit score? While it is a derogatory mark, there is no exact formula for how many points this will drop a credit score as it depends on every individuals entire credit picture. Also, some folks miss payments during their short sale, further dropping their credit score. Others do not and are able to close with few or no missed payments, easing the credit ramifications.

However, the main benefit of the short sale is not actually its credit benefit – it is the ability to be able to settle the balance on the mortgage debt. In the state of CT, lenders are allowed to pursue foreclosed homeowners for deficiency judgements. What this means is that if you simply let a home foreclose, you can still be pursued for the balance on the loan. In a short sale we are able to negotiate terms of debt settlement with the lender and we do successfully receive a full deficiency waiver over 95% of the time.

The other main benefit of a short sale is a quicker resolution over foreclosure. Foreclosure in CT can take as much as a few years. That is a few years of missed payments, followed by a foreclosure on the credit which results in a much longer recovery time overall. After the foreclosure is over, it could take as many as 4-7 years to qualify for a new mortgage. The average short sale takes 4-6 months from beginning to end and will generally keep you from qualifying for a new mortgage for 3 years. The 3 year  period is not due to the credit score itself, but instead to lender guidelines for writing new mortgages.

All the clients that have reported back to me about their credit after their short sale have reported a quick recovery to their credit score, and just a few years later I have been able to get many of these same former short sellers into new homes again.

Is a short sale a perfect solution with no ramifications? No, nothing is.

Is it likely one of the very best ways to cure an over-leveraged mortgage situation and move on quickly? Absolutely.

 

VIEW OUR SHORT SALE FAQ TO GET ALL YOUR SHORT SALE QUESTIONS ANSWERED!

READ UP ON OUR FULL SCALE SHORT SALE SERVICES

READ RECENT REVIEWS FROM OUR SHORT SELLERS

Considering a short sale? Contact us today to find out if a short sale is right for you.

 

 

 

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Minna Reid
Team Leader – Reid Real Estate Group
Keller Williams Connecticut
Voice or Text: 860.416.1255

Minna Reid  is a  CT Licensed Real Estate Broker Associate with Keller Williams Realty, and Team Leader of Reid Real Estate Group. Reid Real Estate Group is a team of full-time, full-service real estate experts with locations throughout Connecticut, and a specialty in short sales. The Reid Group brings years of real estate experience, intimate knowledge of the local market and the highest levels of customer service and professionalism to help guide you through all of your real estate transitions. Visit us at REIDREALESTATEGROUP.COM.

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Trying times with Shellpoint – a short sale success story!

HOME SALE CHALLENGE:

After some devastating unexpected events, this Bloomfield homeowner found herself unable to afford her home. With the loan balance much higher than the home’s value, and without enough funds to cover the loss she was left with a short sale as her best option.

REID REAL ESTATE GROUP APPROACH:

With Bank of America in first lien position and an HSBC second, we anticipated a quick result on the second, and a lot of hassles with Bank of America as they are generally slow, confused and disorganized. Little did we know what was actually ahead.

RESULTS:

Just a few weeks after we started working on the file we got two pieces of unexpected news. Not only did Bank of America sell the loan off to Shellpoint, but HSBC completely released discharged their note and released the lien off the property. While this was good news – unfortunately HSBC sent the lien release to the wrong town, which left us scrambling for many months to track down the release.  With the release finally found and a buyer in contract we were finally able to move forward with our short sale with Shellpoint. Unfortunately Shellpoint moves at a snails pace on a good day.
We soon lost our impatient buyers and were back on market. Several months passed until we secured a new buyer and started over. Once again Shellpoint became slow and unresponsive and 6 months later our second buyer finally walked away. Soon after our approval letter arrived, but unfortunately we no longer had anyone to sell the house to.
Back on market for the third time, many more months passed until we finally secured our third buyer. We started processing the short sale again with Shellpoint. As usual a painful exercise in frustration followed. Several attempted foreclosure law days, several value disputes and hundreds of hours of phone calls and emails later – we finally received our approval!
With a looming law day and a patient buyer ready to move, we closed a few weeks later! Over 2 years after this seller first listed her home, she was able to finally say goodbye to her former home and walk away from over $100,000 of excess mortgage debt!

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Minna Reid
Team Leader – Reid Real Estate Group
Keller Williams Connecticut
Voice or Text: 860.416.1255

Minna Reid  is a  CT Licensed Real Estate Broker Associate with Keller Williams Realty, and Team Leader of Reid Real Estate Group. Reid Real Estate Group is a team of full-time, full-service real estate experts with locations throughout Connecticut, and a specialty in short sales. The Reid Group brings years of real estate experience, intimate knowledge of the local market and the highest levels of customer service and professionalism to help guide you through all of your real estate transitions. Visit us at REIDREALESTATEGROUP.COM.

Southington, CT short sale sucess! Tough times with Nationstar…

HOME SALE CHALLENGE:

After several unsuccessful attempts at modifying her loan to save her home, this Southington homeowner had run out of options and was facing foreclosure. Her only remaining option was to pursue a short sale.

REID REAL ESTATE GROUP APPROACH:

Nationstar is not one of my favorite lenders to work with, as they are consistently disorganized, unresponsive and confused. Although FHA backed loans are generally very predictable, Nationstar has a way of turning what could be a quick and easy process into a lengthy frustrating one.

RESULTS:

It took just a few weeks to secure a buyer for the home and we were able to get started on the short sale. Unfortunately we experienced some freeze damage to the property just a few weeks later and lost our buyer. It took an additional 6 weeks to secure a new buyer, but by this time our short sale was moving along. Sadly, Nationstar acted in usual fashion. Weeks passed as we pushed for our negotiator to move our approval along. Periods of complete lack of response were followed by Nationstar fumbling around and then disappearing again. Five solid months passed until we were finally able to get our short sale approval, and a few weeks later this Southington, CT short sale finally closed!

4 TIPS FOR GETTING THROUGH AN FHA SHORT SALE!

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Minna Reid
Team Leader – Reid Real Estate Group
Keller Williams Connecticut
Voice or Text: 860.416.1255

Minna Reid  is a  CT Licensed Real Estate Broker Associate with Keller Williams Realty, and Team Leader of Reid Real Estate Group. Reid Real Estate Group is a team of full-time, full-service real estate experts with locations throughout Connecticut, and a specialty in short sales. The Reid Group brings years of real estate experience, intimate knowledge of the local market and the highest levels of customer service and professionalism to help guide you through all of your real estate transitions. Visit us at REIDREALESTATEGROUP.COM.

Chase Bank forgives over $1,000,000 in this quick CT short sale!

After 3 years of efforts to sell their Ridgefield, CT luxury homewithout success, these sellers were forced to face the fact their home was now worth about half of the $2 million they owed on it. After a business failure, the sellers had moved out of state for new employment opportunities and could no longer afford to continue making the payments on the old home. After some research they realized their best option was a short sale.

From speaking with the seller, I determined he had two separateChase portfolio loans. Portfolio notes are loans kept in house by the lender rather than being sold to investors. Almost alljumbo loans are portfolio loans as these loans cannot be as easily sold as conventional loans. The good news here is that working a short sale directly with the note owner (rather than through a servicer) can be a more simple and quick process as there are less decision makers involved and banks who suffer direct losses are highly likely to want to mitigate their losses quickly.

The home went on market and unfortunately was not well received. Ridgefield, along with most Fairfield County values, have suffered quite a bit, especially in the higher end of the market. It took almost two months and three price reductions to get serious interest in the home. Unfortunately what followed was three separate bidding wars. During the first, we secured a buyer – but the deal died a few weeks later with the the lawyers who could not reach agreement on their paperwork.  Back on market we entered a second bidding war, secured a buyer – and unfortunately the deal again died a few weeks later with the the lawyers!

Again on market we immediately entered a third bidding war. This time all attorney conditions were required to be met prior to any offer submission, and we soon had our final buyer! Our sale docs went to Chase and they quickly went to work on processing the short sale. Despite a few negotiator changes and Chase management having to take some extra time to consider the very large loss, Chase approved our short sale without much hassle in just 10 weeks!  Shortly after we closed on this Ridgefield, CT luxury home, with the seller being fully forgiven of over $1 million of negative equity!

FAIRFIELD COUNTY SHORT SALE REPORT

GET ANSWERS TO ALL YOUR SHORT SALE QUESTIONS HERE

 

CONTACT US TODAY TO FIND OUT IF YOU QUALIFY FOR A SHORT SALE!

 

 

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Minna Reid
Team Leader – Reid Real Estate Group
Keller Williams Connecticut
Voice or Text: 860.416.1255

Minna Reid  is a  CT Licensed Real Estate Broker Associate with Keller Williams Realty, and Team Leader of Reid Real Estate Group. Reid Real Estate Group is a team of full-time, full-service real estate experts with locations throughout Connecticut, and a specialty in short sales. The Reid Group brings years of real estate experience, intimate knowledge of the local market and the highest levels of customer service and professionalism to help guide you through all of your real estate transitions. Visit us at REIDREALESTATEGROUP.COM.