Trained, Licensed & Experienced

A Minnesota real estate agent is required to accumulate a certain number of hours before they can take their real estate exam.  The skills and knowledge that they acquire can directly contribute to the success of your property listing.  A Minnesota realtor is also required to continue their education, which allows them to stay up-to-date on real estate matters. 

Using someone who is well-experienced in the real estate market may allow you to sell your home faster and for more money.  Many people do not realize the funds that the average homeowner throws away on a real estate deal when they try to sell their home on their own.  A Minnesota realtor may be able to assist a homeowner in getting more money for their property, as they will properly price your home and will use their skilled negotiation tactics to get you the highest offer.  Their expertise can get you to the closing table successfully.

Understands the Housing Market

A Minnesota real estate agent works day in and day out in your specific area.  They know the pertinent trends that they have to pay special attention to and know how to evaluate market data.  This helps to properly list and market your home. 

Is Familiar with Effective Marketing Channels

A Minnesota realtor will know what forms of advertisement will work for your particular home.  They have listed hundreds of homes and are familiar with the most effective marketing channels out there.  No time will be wasted in getting you the foot traffic that you need to get your home sold.

Has the Right Connections

Getting prospective buyers to show up at your doorstep is important and a Minnesota real estate agent can assist you with that task.  They have multiple connections in the real estate market that can lead to quality referrals and a signed contract.  A Minnesota realtor with great rapport and proficiency is an invaluable asset to you.

Gets the Job Done

Once you hire a Minnesota real estate agent, you can rest easy knowing that your property is in good hands.  They will handle all of the paperwork, phone calls, appointments, marketing and negotiations on your behalf.   This means that you can go on about your daily business without worrying about having the time to do all of this on your own.  Getting the job done right is a top priority for a Minnesota realtor and they will work hard to meet this goal.  Hiring a real estate agent is the best decision that you can make.

Get Prequalified

In order to submit a bid on a home, you will need to have a prequalification letter.  Many sellers will not entertain an offer unless a contract is accompanied by this document.  You can ask your Minnesota real estate agent if they can refer you to a loan company in order to make the process easier. 

Obtaining a prequalification letter allows you to know your loan limits, interest rate and expected monthly mortgage payment.  This is pertinent data that aids in a home search. 

Make a List of Your Needs

Depending on your particular budget, you will want to make a list of the essential features that you are looking for in a home.  You should take the time to distinguish between wants and needs, so that you can stay within your budget and to find a home within a reasonable amount of time.  You will have to decide on the:

• Number of bedrooms
• Number of floors
• Number of bathrooms
• Garage/Parking
• Full/Partial Basement
• Yard Size
• Age of the home
• Kitchen Amenities

Don’t forget that this is your first home and will not likely be your last.  It is perfectly normal to purchase a home that doesn’t meet your every need.  You can either remodel the home or buy a new house at a later point in time.

Performing  a Home Search

Once you have determined your needs, you can give them to your Minnesota realtor to begin the home search.  Your Minnesota real estate agent will present you with available properties that match your

• Budget,
• Home Features, and
• Targeted Area

Your Minnesota real estate agent will set up all of the necessary appointments for the properties that you would like to view.   A Minnesota realtor is also able to assist you in acquiring additional information that you would not be able to find on your own.

Placing an Offer

Once you have found your ideal first home, you should place your offer as quickly as possible.  The longer you wait, the less likely it will remain on the market.  A Minnesota real estate agent will be able to tell you how many days it has been listed, so that it can help you decide what you would like to offer for the property.  Your Minnesota realtor will present the offer to the seller and handle any necessary negotiations on your behalf. 

Closing the Deal

When a seller accepts your contract, you will be able to move forward with the real estate closing.  Your Minnesota realtor can also refer you to a reliable attorney that will handle the entire closing from start to finish.  A typical home takes about 60 days to close.  Once you near the closing date, you can begin to make your moving arrangements and address changes so that you can move into your first home.  This is all made possible with the assistance of a Minnesota real estate agent.

Getting the Right Help

Not every Minneapolis realtor can get the job done. You will need to obtain the assistance of a professional that has extensive experience and a proven track record. You will want to hire a Minneapolis realtor that has been able to sell properties in this down market and has the necessary references to back it up. When you work with the best, you are able to get the positive outcome that you are looking for. Whether you are selling your home due to a death in the family, a divorce or it’s simply time to get into a new home, you can greatly benefit from the assistance of a Minneapolis real estate agent.

Understanding the Market

With the downturn in the real estate market, you will have to be ready and willing to adapt accordingly. It is now a buyer’s market and they have the upper hand in terms of negotiations. You will need to be prepared to make some sacrifices in order to have a successful deal. You should assess the amount of money that you need to walk away with at closing, so that you can accept any potential offers on your home quickly. Don’t forget that buyers have an ample amount of homes to choose from and can simply go on to the next one.

Coming Up With an Effective Marketing Plan

A Minneapolis real estate agent will help you evaluate your home so that its best features can be highlighted. They will help you to price your home competitively and will make your home stand out from all of the rest by offering buyers unique concessions. You need to be able to draw a healthy amount of traffic to your home in order to create a pool of buyers to select from. By working in concert with your Minneapolis realtor, you can use a number of marketing channels to accomplish this together. For instance, you can take advantage of free social networking sites to advertise your listing, popular online classifieds and low-cost real estate websites. An experienced Minneapolis realtor will be able to let you know what will work and what won’t.

Re-assessing Your Goals

If you are not getting the results that you need, then you will have to reassess your goals and let your Minneapolis realtor know how far you are willing to deviate in regards to price and concessions. Keeping your Minneapolis real estate agent well-informed about your personal situation and preferences allows them to properly market your home. Getting to Yes Once you have finally been presented with the offer that you are looking for, you will be able to put ink to paper and proceed with a closing. Your Minneapolis realtor will continue to assist you with any property-related matters all the way to the closing table. They can even recommend a quality attorney that can handle your closing file. A Minneapolis real estate agent is your best asset when selling your home.

If you are considering a short sale you will have many questions and concerns you will need to have addressed before putting your home on the market with a Minneapolis short sale REALTOR®.   We have established relationships with real estate agents through the Minneapolis metro area who are prepared to answer your short sale questions absolutely free.  We have identified agents with:

1.  Established relationships and contacts at the countries largest banks

2.  Proven success negotiating short payoffs on 1st, 2nd and even 3rd mortgages

3.  Adminisistrative support staff to follow up and push your file through the red-tape that exists in the system

4.  Many satisfied customers who got out from under the financial burden of their house.   

 Contact us today to be connected with a proven short sale leader

A short sale is the sale of a house at or just below market value that falls short of the balance due on the mortgage. The lender takes a loss, but not as much as a foreclosure process. You take a loss as well – you walk away with no money earned from the deal – but in many cases you are free of the debt, if you hired an experienced short sale agent. A short sale is not always the best course for everyone. You will need expert advice to decide, but here are some basic pros and cons of a short sale.

Pros of a Short Sale on your Minneapolis Home:

• You are relieved of paying overblown monthly mortgage payments.
• In some cases, the lender may forgive the difference in debt between what you still owe and the final selling price.
• You are spared the lengthy and traumatic foreclosure proceedings.
• Your credit score could be less damaged than if you had gone through foreclosure – depending on the lender’s actions.
• You can re-qualify for a new mortgage more quickly (about two years) than you would after foreclosure (about three to five years).
• You are more likely to escape bankruptcy.
• If the short sale occurs between January 1, 2007 and December 31, 2009 you will not be taxed on the debt forgiveness amount.
• If you are not able to pay your mortgage premiums, or work with the lender to lower monthly payments, a short sale can be the best case scenario, even though it means losing your home and your investment.

Cons of a Short Sale on your Minneapolis Home:

• The lender is not obligated to grant a short sale.
• You must show proof that you are no longer able to make your mortgage payments, and the proof must be reasonable. The lender will not approve a short sale if you gambled away your savings. A few examples of hardship that a lender will see as legitimate are illness, divorce, or a job loss.
• The lender will make sure you do not have any recourse – savings accounts or other assets – which may help pay off your debt. It’s not fair to walk away from your debt because you don’t like high payments and you don’t want to deplete your nest egg to pay them.
• You don’t have to be in default of your loan to be approved for a short sale, but it helps, if nothing else than to prove you can’t make the payments. If you are in default, you may have less time to jump through all the necessary hoops. A good short sale agent will negotiate for more time, and lenders often relent in hopes of recouping some of the loss.
• A short sale is anything but short, and can be stressful as you wait for weeks for the lender to respond. The response time depends on how quickly you put together the necessary papers, how adequately you provided the right information, and the lender’s ability to reach your file – along with a backlog of many others in your situation. You need nerves of steel.
• Lenders are notorious for not communicating enough about the approval process for a short sale.
• If your home has liens, second mortgages, or a home equity line of credit, each lender will have to be consulted for approval – which takes considerable time.
• Once the lender approves the short sale, a successful transaction depends on a reasonable offer from a buyer, and their readiness with an approved loan.
• Because the lender is losing money on the deal, they might require that the realtor or broker take a smaller commission. They also will probably not approve payment of closing costs, which might put a deal with a buyer in jeopardy.
• The lender may require you to sign a promissory note for the debt forgiveness in order to approve a short sale.
• The lender may pursue repayment for the debt forgiveness after the short sale goes through.
• Your credit score could take just as hard a hit as it would if you went through foreclosure. Consult legal and tax advice if salvaging your credit score is the only reason for a short sale.
• You could be taxed on the debt forgiveness if the property sells for more than 2 million, or is not your primary residence. After December 31, 2009, unless a new law for tax relief on debt forgiveness is passed, the debt forgiveness is seen as taxable income and you will have to pay taxes at the normal rates – which could be significant. Consult a tax professional.

A short sale is a difficult process with many details the average homeowner is not aware of.  If you are facing financial trouble and selling your home is necessary, consult professionals who are experienced and have a history of successful short sales.

So, you’re probably wondering why would a Minnesota bank or national lender agree to accept less than what you owe them as payment on the loan.  The simple answer is, “What choice to they have?”  With literally millions of condo’s, town homes, single family homes, and investment property around the country and in Minnesota “upside down” or heading toward foreclosure, a bank, like any other business simply looks at their options and selects the one that they believe will most positively affect their bottom line.

The best source of free advice regarding short sales in Minnesota are real estate agents, better know as REALTORS®.  A Minnesota REALTOR® that specializes in short sales can answer all of your questions and help you develop a strategy to sell your house and negotiate the short sale with your lender.  The majority of Minnesota real estate agents have minimal experience negotiating short sales, so be sure to ask your Minneapolis agent how many short sales they have closed.  If they say one or two, keep looking until you find someone who has done at least 10 deals.  I’ve worked with some of the best short sale agents in Minnesota, so if you’re looking for a recommendation let me know.

A short sale negotiation can take between six and twelve months.  I know it sounds crazy but with millions of home owners contacting their banks for loan modifications and short sale negotiations, the banks are completely overwhelmed.

“I ended up at the closing table and was expected to cover $6000.00 in back taxes.  I thought my agent has already negotiated this with the bank.“

“My agent didn’t tell me that I might still be liable for a deficiency balance on my second mortgage.  Six months later my bank sued me.  I felt like my agent didn’t have any idea what was going on.”

“My agent had never done a short sale deal before and we had multiple delays because he didn’t submit the correct paperwork to the bank.”

“The bank foreclosed on my house.  I learned from a friend of mine who used a short sale expert that his agent was able to stall the foreclosure by five months.  He really worked the bank and was able to buy the time needed to close the deal.”

A: No.   Contrary to what many people believe many banks will still negotiate a short sale even if you are current on your mortgage.  Obviously, they will be more motivated if you’ve missed payments but it is not a requirement.

Q: I’ve heard a short sale will destroy my credit.

A: Your credit score is based on a variety of factors.  I’ve dealt with some short sale experts in Minnesota who have successfully negotiated short sales for their clients with no missed payments.  The result on the client’s credit score was essentially zero.  Missed payments are the primary issue affecting credit score.  If you wait too long too try to negotiate a short sale and you end up in foreclosure; the credit consequences will be far more severe.

Q: I’ve heard a short sale can take up to a year.  Is this true?

A: It is possible for a short sale to take up to a year depending on the banks involved.

Q: Can my bank sue me for a deficiency if I negotiate a short sale on my house in Minnesota?

A: The agents I’ve dealt with try extremely hard to negotiate the debt so that the client doesn’t have any further financial liability.  If you only have one mortgage on your Minnesota home you can pretty much be assured that you won’t have any future financial liability associated with the property.  The challenge typically is when a client has two or three mortgages on the property.  It is best to discuss your situation with a Minnesota short sale expert to help you develop a plan to deal with your lenders.  I’ve dealt with some of the best short sale real estate agents and brokers in the Minneapolis and St Paul area and surrounding suburbs.  If you would like a referral, please contact me.

Q: I waited too long lost my house in foreclosure and now the second mortgage is suing me for a deficiency.  Now what?

A: We don’t give legal advice, however some of our clients have had luck negotiating the debt with a lump sum payment of between 10% and 20% of the balance owed.  Another option is always to file bankruptcy.  The best thing to do is consult an attorney.

Q: Does a short sale cost me any money?

A: No.  Your Minnesota short sale REALTOR® will negotiate the commission with your bank.  You won’t be expected to come to closing with any money.

1.  A Long Wait. The best short sale REALTORS® in Minnesota may be able to speed up the process by utilizing their loss mitigation contacts at banks such as Wells Fargo and ASC, but you still need to be prepared to wait.  The banks are processing millions of short sale requests and it takes a long time to process all of the paperwork.

2.  Documents, Documents and more Documents. Your lender will require a lot of documentation regarding your financial situation before they will consider a short sale of your Minnesota condo, single family home, town house or investment property.  Be prepared to produce tax returns, bank statements and pay stubs.  They will want a letter explaining why they should consider a short sale called a “hard-ship letter” as well as an itemized list of your monthly expenses.  In addition you will need to provide an authorization letter to your Minnesota REALTOR® which will enable him to negotiate the sale with your bank.  They’ll want a copy of your listing agreement; purchase agreement, a bank approval letter from the buyer showing that they have been pre-qualified to purchase the property.  The list goes on…  Your Minnesota short sale expert will provide you with a complete list of everything required.

3.  Multiple Buyers.  Due to the length of time involved with obtaining approval from the lender it is very common for the buyer to lose patience and cancel their purchase agreement.  A good Minnesota REALTOR® will have back up buyers ready to step in pick up where the original buyer left off.

4.  Tax Consequences. Your Minnesota short sale professional will be able to discuss some of the potential tax consequences of a short sale.  The tax consequences will vary depending on your unique situation and will vary depending on if the property you sold was your primary residence or an investment property.  Although your agent will provide you with some of the general rules it is important that you consult your accountant regarding tax implications of a short sale.

5.  Legal Issues. As hard as your agent may try to negotiate with your bank, it is not always possible to completely limit any recourse your bank may have in collecting a deficiency for the remaining balance they are owed.  If you have only one mortgage you don’t need to worry; your bank will not be able to come after you for a deficiency.  Typically the issue arises with a second and/or third mortgage.  Let’s assume the following scenario: You have a first mortgage for $200,000 and a second mortgage for $80,000.  Your Minnesota real estate agent finds a buyer willing to pay $150,000 for the house.   If the first mortgage agrees to a short sale, they will not allow you to pay anymore than $2500 to the second mortgage; some won’t allow more than $1000.  In our example we will eliminate closing costs, real estate commissions, etc. for the sake of simplicity.  The first mortgage receives $147,500 and the second mortgage receives $2500.  Because the second mortgage received such a small percentage of the total amount owed, they are not happy.  They may decide to pursue legal action to collect the remaining balance owed.  If you are sitting on some cash, your real estate agent may be able to negotiate a settlement to eliminate any future financial liability to your second mortgage by offering them between 10% – 20% of the amount they are owed as a settlement.   If you pursue this option be sure to consult with a tax professional.