I’m sharing the RE/MAX article below, because it applies to the Columbus Ohio real estate market.  While there are many distressed properties for sale in the Columbus Ohio area, banks slow response to offers on short sale homes is making it difficult to close these properties within the normal 30-60 day time frame.  I have seen many Central Ohio short sale properties take more than 6 months to close.

I have helped several buyers purchase short sale properties, many get frustrated at the lengthy process and tire of waiting on the bank to respond to their offer.  I just recently sold a home in Worthington Ohio as a short sale through Suntrust Bank and it took over a year to finally get it closed.  I had 4 different buyers make offers on the home and most got tired of waiting on the bank to respond.  Finally by the time I got the 4th offer, the bank had ordered the BPO (broker price opinion) and it still took about 30 days for them to approve this offer and another 30 days to get it closed.   That is simply too long.

Some home buyers don’t want to look at short sale properties because they are afraid they won’t be able to close in time, to take advantage of the home buyer tax credit.  Due to the current market conditions, many home buyers are looking for a bargain and distressed properties can often attract multiple offers.  However, that does no good if banks won’t respond in a timely manner.  Helping home owners avoid foreclosure by selling their home through the short sale process benefits everyone involved, the seller, the bank and the buyer. So banks should really make processing short sales a smoother and quicker process.

More expensive for banks to foreclose than to work out a short sale

Banks incur a lot more maintenance expenses and legal costs when they foreclose on a home rather than working out a short sale.  Typically less damage occurs to a property when a seller voluntarily sells it through a short sale, which means the bank may get more for the home and the buyer will feel more comfortable buying the home.  When a home goes through the foreclosure process, they often sit empty for an extended time without utilities working.  Homes that sit empty without utilities during the winter months often have plumbing pipes that burst causing extensive water damage to a home.  Homes sitting empty during the summer without proper cooling or ventilation can quickly develop mold.  Without electric, basement sump pumps don’t work which often causes water backup and mold issues in basements.

Banks should be especially motivated to process short sales as quickly as possible because it is in their best interests to get the most money out of a home.  So I just don’t understand why they remain so slow at dealing with these distressed sales.  I wish banks would start taking short sales more seriously.  Hopefully real estate professionals and  industry advocates like RE/MAX  who help to educate the public, banks and politicians will eventually make a difference.

RE/MAX Urges Lenders to Release Properties

Record Foreclosure Numbers Need to Be Tackled Head On

(Denver, CO, February 10, 2010) - Dave Liniger, RE/MAX International Chairman and Co-Founder, urged government and economic leaders to push lenders to release foreclosures to help speed the housing recovery. Liniger made his comments as a featured speaker at the Five Star Government Forum in Washington D.C. The Forum brought government and industry leaders together to share ideas for building stability in the nation’s housing market.

“Most of us feel that there is a tsunami of properties out there. I can assure you in the hardest hit areas of the country, there are bidding wars going on,” said Liniger, the only speaker representing a real estate company. ”So, for those lenders who are here listening, now is the time to release properties, because you’ve got the Homebuyer Tax Credit that’s driving buyers into the market, and a limited window of opportunity to get these properties sold before the credit expires this year.”

Liniger explained that in some markets experiencing high foreclosure rates, homes in price ranges that qualify for FHA financing are attracting a lot of attention. In these areas, there are multiple offers from investors and first-time buyers, which indicates there’s a real shortage of available homes.

The Five Star Forum focused on the Home Affordable Modification Program (HAMP), and the challenges facing mortgage lenders in modifying loans under the program. It brought this group of influential leaders together to begin the hard conversation on how better to keep more Americans from losing their homes.

Over the past year, RE/MAX International has led the way on the housing recovery.  Liniger and other RE/MAX representatives met with Housing and Urban Development Secretary Shaun Donovan, as well as officials with FHA, Fannie Mae, the Treasury Department, and the Homeowner Preservation Office. RE/MAX offered recommendations for streamlining the Short Sale process, some of which the Treasury Department adopted when it announced a new process last November.

In 2009, RE/MAX trained more than 10,000 agents to handle Short Sales. More RE/MAX agents have earned the Certified Distressed Property Expert (CDPE) designation than agents with any other real estate company. Surveys show that after earning a CDPE designation, agents are twice as likely to be able to keep families in their homes. And, if the best route is a Short Sale, CDPE agents are much more successful at completing the transaction.

“In our industry, we talk about distressed properties, but we’re dealing with distressed sellers, distressed human beings,” said Liniger. “They’re humiliated by their situation, and that’s why 70% of them never pick up the phone to help themselves when they’re faced with a foreclosure. That’s where Short Sales come in. They provide a better way for both the homeowner and the lender.”

While some cities and markets are experiencing a recovery, as both home sales and prices rise, others are not faring as well. Overall, the real estate industry is in a correction, according to Liniger, who sees distressed properties making up the majority of sales for the next three to five years.  And, after that, another housing boom may be on the horizon.

“Once this correction is over, we have a whole new generation of homebuyers waiting to get into the market.  But we have to get through this first, and the best way to do that is to take it head on.”

© 2010 RE/MAX International, Inc. RE/MAX Affiliates may share this article, provided they do not charge for it and this notice is included. All other rights reserved.

$100 OHIO FHA HUD Down Payment Program Discontinued

Effective February 12, 2010, any Central Ohio HUD properties listed and or sold with FHA financing are no longer eligible for the $100 down payment incentive.

Also, the sales allowance bonus of $2500 for owner occupant buyers will be discontinued effective February 12, 2010, for all new contracts accepted on or after this date.

HUD will still pay buyer’s closing costs

When buying a HUD home in the Columbus Ohio area, you can still request HUD to pay up to a 3% contribution toward your closing costs.  However, the amount you ask HUD to pay for your closing costs will be factored into your bottom line bid price.  For example if you bid 100,000 on a HUD home and ask for $3,000 in closing costs, HUD will consider your bid to be $97,000.

Many bargain distress sales in the Columbus Ohio area

If you’re looking for a bargain, keep in mind that HUD foreclosure properties are not the only distressed properties for sale in the Columbus Ohio area.  There are many other “distressed” properties such as bank owned foreclosures and short sales including homes and condos for sale throughout Central Ohio. You have to know what to look out for though, because not all foreclosures are a good deal.

Foreclosures Need Work

Most foreclosure homes need a minimum of a good cleaning, paint, carpet and flooring updates.  However, some need so much work that they may not be a good deal by the time you are done making all the repairs, on top of the cosmetic fix ups.  Often there are hidden defects that not even your home inspector will be able to detect and are not discovered until after you live in the home.   So it’s wise to budget for additional repairs beyond what can be seen.

HUD will allow you to finance repairs of less than $5000 when getting an FHA mortgage.   FHA 203k rehab loans offer an alternative for other homes that need more than $5,000 in work and allows you to finance money for repairs into your mortgage.  Keep in mind that FHA 203k loans often have slightly higher interest rates and closing costs than traditional FHA mortgage loans.  I can recommend a local Columbus Ohio mortgage banker who offers FHA 203k loans, if you would like more details on this loan option.

Non-foreclosure homes can be a good deal too

Due to the nature of the current buyer’s market in Central Ohio, I have found many sellers are motivated to sell and there are opportunities to get a good deal on a non-foreclosure home or condo as well.  I’ve seen many sellers list their homes for less than they paid when they bought the home.  Your home buyer’s agent should help you evaluate the property value depending on the home’s condition and current market factors, enabling you to make a wise decision on any home you buy.

Rely on an experienced Columbus Ohio Realtor® and Accredited Buyer Representative

As an experienced Columbus Ohio REALTOR® and Accredited Buyer Representative, I’d be happy to help you find a good deal on your ideal home anywhere in Central Ohio.  Best of all my services are FREE to you.  You pay nothing to have a buyer’s agent represent your best interests when buying a home in Central Ohio.

To learn more about buying a home anywhere in the Columbus Ohio area visit:

ColumbusCastles.com/Buyers or CONTACT PETRA at 614-895-0496 to get started or complete our FREE HOME FINDER SERVICE REQUEST to receive daily email updates of new Columbus Ohio real estate listings in the Central Ohio area.

Petra’s Columbus Ohio MLS Search Now Includes A FREE Foreclosures Search

Do you enjoy searching for Columbus Ohio real estate listings online?  Many of the buyers I work with enjoy using the Columbus Ohio MLS search on this website, to find real estate listings throughout Central Ohio.  I offer one of the best Columbus MLS ( multiple listing service) online searches in the Central Ohio area.

I have had many clients tell me  how user friendly my Columbus MLS search program is and they enjoy searching for listings using the wide variety of search criteria to choose from.  The current buyer’s market in Columbus Ohio, has many buyers interested in buying a HUD home, bank REO, bank owned homes and other foreclosure properties in the Columbus Ohio area.

Starting Wednesday, June 10, 2009,  my Columbus MLS search will now offer an option to search specifically for foreclosures.

The provider that I use for the Columbus MLS, to search for real estate listings on my website, will be updating my search on Wednesday June 10^th, to include foreclosure data and search options. The foreclosure data comes directly from the Columbus Board of Realtors MLS data feed.  As such, you will have access to the most current, accurate foreclosure data on foreclosure properties, in the Columbus Ohio real estate market and throughout Central Ohio.

You will notice A “Foreclosures” search tab will be added to my Columbus MLS search solution.  A “Show Foreclosures Only” option will also be added to the Property Types under the Active Listings tab.  The listing detail pages for foreclosure properties will be updated to include the label “Foreclosure” after Property Type within the Property Details section.

FORECLOSURE BUYERS BEWARE

There are other online services that charge for much less accurate information and I’m offering you the ability to search for Central Ohio foreclosures, using my Columbus MLS Search tools for FREE.  Some services offer you a free trial period and then charge you to continue using their search, YET they’re actually providing inferior information, with very limited details.

Many of the “foreclosure” specific websites don’t even provide up to date listing information.  They post data on any home that has had foreclosure paper work filed.  However, some of those homes never even come available for sale because the foreclosure is canceled or the owner may file bankruptcy, which can greatly delay the eventual foreclosure sale.  I’ve seen some homes take as long as 2 years to go through the whole foreclosure process before they’re actually available for sale.   Why waste your time searching on inferior foreclosure websites, when you can search listings coming directly from the official Columbus Ohio Realtor MLS (multiple listing service)?

I hope you enjoy using the Columbus MLS Search tools on my site, to search for real estate listings throughout Central Ohio.   While this MLS search is the best in Central Ohio, there’s no substitute for the experience I can provide, to make your search for the right home in the Columbus Ohio area easier for you.

SEARCH FOR COLUMBUS OHIO FORECLOSURES AND ALL CENTRAL OHIO REAL ESTATE LISTINGS NOW

Many of the home buyers I help, also enjoy receiving listing updates via email the same day they come on the market.  I can personally email new Columbus Ohio real estate listings that meet your specific criteria, the same day they come on the market.  Plus you’ll receive price reductions and be notified when a property, that meets your criteria, goes into contract.  While the online Columbus MLS search is handy and convenient, it does not contain all the available data and details, nor the market knowledge and experience, that I can personally provide for you.

I would love the opportunity to work as your personal Buyer’s Agent to help you find your ideal home in Central Ohio, negotiate the best price and look out for your best interests throughout the whole home buying, home inspection and closing process. BEST OF ALL YOU DON’T PAY ANYTHING FOR MY SERVICES AS YOUR BUYER’S AGENT.   I can make your home search much easier,  at NO COST TO YOU.  Don’t just take my word for it, SEE WHAT MANY OF MY PAST CLIENTS HAVE TO SAY ABOUT THEIR EXPERIENCE -  Visit my Columbus Ohio Real Estate Success Stories.

Whether you are looking to buy your first home, last home, condo, investment property or relocating to Central Ohio, you can rely on my expertise to make your search for Columbus Ohio real estate easier.  Contact me at 614-895-0496 anytime from 8am-10pm EST or complete my Columbus Ohio Home Finder Service Form, to get started.

Petra Hinterschied, ABR
Accredited Buyer Representative
Experienced Columbus Ohio Realtor with over $46 Million in Real Estate Sales throughout Central Ohio