Letters to the Editor – October 2008

High Value. Shortsighted Sales. A Self Correction.“Understanding Short Sales”
rismedia.com,
August 18, 2008

Short Sales Fall Short -I listed a short sale in early May 2008, and enlisted the assistance of a short-sale consultant who came highly recommended and charged me an upfront fee of $300. The subject property is a condo with both a first and second mortgage totaling approximately $410,000. The market value in May was roughly $300,000. The fully completed package was submitted on May 8, 2008. The mortgage company ordered the BPO on June 10, 2008. It is now August 18 and we still do not have a response.

Since May 8, we have had four offers, however, as of today (August 18, 2008), all the buyers have withdrawn their offers and have moved on with their agents to other non-short sale properties.

The seller has vacated the property. She has kept the utilities on and has paid the HOA fees as we were told that the mortgage company will not pay HOA fees. However, she has advised me that if we didn’t hear a response by September 1, she would stop the utilities and no longer make the $300 HOA payments, which will further complicate the sale.

The last payment was made in March 2008.

In the meantime, the sale price has now dropped an additional $50,000.

When this is over, I will not list or show another short sale. They just aren’t worth my time and money, and many other agents feel the same way.

Rita Strickroth
Realtor
Glendora, California

“Using the Untapped Power of the MLS”
Real Estate magazine, August 2008

I Want My MLS – I have been a Realtor in Ocala, Florida, for over 23 years and know how important the Multiple Listing Service is to me.

The mere thought of not having an MLS is ridiculous. If sellers, buyers, builders and Realtors think it is our most effective tool, then who is it that thinks differently? And are they really active in the real estate market on a day-to-day basis? I get annoyed when I read that the real estate market is being taken over by the Internet! Excuse me, how is the Internet going to give personal service, water the plants for sellers, shop for service people for last-minute repairs, take care of all the closing issues that can arise…and the list goes on?

These things are done by Realtors-professionals who belong to the MLS and can work together with other Realtors for the common good of buyers and sellers. Who thinks they know a way to give more exposure than through the MLS?

Carolyn L. Smith
Realtor
Ocala, Florida

“Housing Rescue Package Signed Into Law”
Real Estate magazine, September 2008

New Bill Not Much Help – I was told that the changes made through the housing bill also included that FHA was going to require 3.5% down instead of the normal 3%. Also, that they were eliminating DPA programs, which would cut off any help someone might need to get their down payment.

I don’t understand how this can help much. The tax credit is not needed a year later when you file your taxes but on the front end for the down payment or other things required to close the loan. I really don’t see how this act will help at all. According to a recent article I read, even the standard conventional loans with no DPA have defaulted just as much as any other loan program. I think they should leave everything alone and let the market correct itself.

Creating and keeping more jobs in the United States would help the economy more than anything. Not a tax credit that has to be paid back.

Lynne Woodard Ross
Realtor
Murfreesboro, Tennessee