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Are Colorado Springs short sale disclosed?
Colorado Spring Short Sales are now disclosed
Search for Short sales in Colorado Springs
- Buying a short sale vs. a foreclosure, what’s the difference?
- Tips to buying a short sale
- 8 reasons NOT to buy a short sale
- 12 questions to ask before writing a contract on a short sale
Every MLS around the US, and in Colorado, has their own policy about short sale and how these are disclosed in the local Multiple Listing Service. The MLS that serves the Colorado Springs area, (PPAR) recently made a change in their rules to reflect a change in their policy regarding short sales. In the past, it was an optional disclosure in the Pikes Peak area. As of January 1, PPAR now requires that Listing Agents disclose if a property is a short sale and if the seller has signed the Short Sale Addendum, which is required by Colorado Real Estate Law.
The following policy was adopted by the RSC Board of Directors on November 17, 2011: “The listing broker shall, on each listing filed with the PPMLS, disclose to other Participants whether a Colorado Real Estate Commission Short Sale Addendum has been signed by the seller. Such disclosure shall be made upon submission of the listing to the PPMLS. If a Short Sale Addendum is signed after the listing is submitted to the PPMLS then disclosure must be made within 72 hours of the time the seller has signed the Short Sale Addendum and for the purposes of enforcement this disclosure shall also be treated as a status change pursuant to Section 1.6 of the RSC Rules and Regulations.”
Since this change has been made, there is now a new field that is required in the PPAR database when listings are being entered, “ShortSale Addendum Signed by Seller. This is a sortable field, both by Realtors and the public. As I’ve written before, short sales are not the right fit for every buyer, for many buyers and investors, they may be the perfect option.
One important thing to note: One of the many challenges about Listing Properties, is that if the property is priced at a certain price it is not a short sale. But if an offer comes in on the property that is 10% less than the original Listing price, this could change the status of the property from a “Normal Listing” to a Short Sale. Hence, in this case mentioned above, a property wouldn’t be listed as a Short Sale, since when it was listed at the current price, it was not a short sale. Sound confusing? It is!
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To find out more information about buying a home or Short Sale Home in Colorado Springs area, call ….
Kathy (719-287-1049) KTorline@msn.com
Do you want to buy a Foreclosure in Colorado Springs?
You want to buy a foreclosure?
Related Articles
First, you have to decide at what stage of foreclosure you want to buy. There are three options:
- Pre-foreclosure (which is typically a short sale)
- Trustee’s auction (where the bank buys back the property or the property is bought by an investor)
- REO (for real estate owned by the bank).
Pre-foreclosure: These houses are in the foreclosure process, but they have yet to be sent to auction. Most owners are typically trying to sell them because they are “upside down,” they owe more on the house than it is worth. Homes are typically sold “as-is”.
This means that potential buyers must negotiate a deal with the lender (or lenders) as well as the owner. This is often called a short sale and it’s a complicated and slow process. One advantage is that a buyer can typically inspect the home before purchase. This may not be the case in other types of foreclosure sales.
In Colorado, a Notice of Election and Demand is filed, and then it’s approximately 120 days before the auction date.
Trustee’s auction: These sales CAN yield the lowest prices, but they have more risk. The house may NOT be available for inspection, as well as they still may be occupied. Also, in Colorado, you must bring certified funds to the Trustee’s auction to purchase the property.
Repossession: This occurs after the home has gone through the Trustee’s auction and the bank (or the government) gains possession of the property. Buyers can almost always perform a thorough inspection before closing, minimizing costly surprises. Plus, the property comes with a clear title. These properties are sold “as is”. The lenders normally won’t pay for repair of any cosmetic issues, but occassionally they will pay for some or all of repairs that are health and safety issues.
The next article will includes mistakes a foreclosure buyer can avoid.
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Kathy (719-287-1049) KTorline@msn.com
Short Sale borrowers can buy again
New rules for FHA borrowers who previously had a short sale
Since Colorado Springs, like many places in the US have their share of homeowners who have done short sales, I was
really glad to see that HUD released some new guidelines about Short Sale Borrowers and information on when they may be eligible for a FHA loan. There are many reasons to do a short sale (12 Acceptable Reasons for a Short Sale) , and in my opinion, some are legitimate and some are not. These new rules give some clear guidelines.
Here’s a recap of document published on December 19, 2009:
Here is the actual language from the new FHA Guidelines:
FHA Guidance on Short Sales Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to take advantage of declining market conditions, and purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.
Top 6 Colorado Springs Short Sale Questions Answered
Top 6 Colorado Springs Short Sale Questions Answered
Are you considering selling your home by means of a short sale, but have lots of questions? If so, read on ……
Interested in selling your house as a short-sale? Email Kathy Torline KTorline@msn.com or call 719-287-1049
(1) I want to do a short sale and have a 2nd mortgage, does this make me ineligible? 
(2) Do I have to miss a payment to do a Short Sale?
No, not necessarily. Some lenders will accept short sale offers from sellers who have never missed a payment. But most lenders don’t seem to pay much attention to a seller and a request for a short sale when a payment has not been missed.
(3) How does a listing agent get paid a commission?
The bank will pay the commission along with all the other usual closing costs. Read the rest of this entry »
New help for Colorado homeowners facing foreclosure
f you are interested in a short sale, It’s important to utilize a Colorado Springs Real Estate Agent that specializes in Pre-foreclosures, Foreclosures, and Short Sales; and has a successful and ethical track record. Call Kathy Torline – Nordstrom, 719-287-1049.
Governor Ritter is expected to sign a new bill approved by the state Senate that will give 
homeowners facing foreclosure an 90 day window to try and work out a way to keep their homes. The bill would require the state to post a notice on the doors of foreclosed homes no later than 15 days after the foreclosure notice is delivered. The homeowner would then have five days to contact the state’s foreclosure hot line (1-877-601-hope) and set up an appointment with a foreclosure counselor. If the homeowners can prove they have income then the lender will be required to meet with them to try and work out a payment plan.
During the next 90 days, foreclosure proceedings would be suspended, although the homeowner would have to keep paying 2/3 of the mortgage payment. Mortgage brokers support the plan as they’re more interested in saving the investment than taking possession of the homes where it would show up as bad debt and that doesn’t help the lenders.
This new bill would certainly help many Colorado homeowners though not everyone would benefit. If the homeowner has no income due to a loss of a job, and they have no ability to repay the mortgage, there’s no help for them in this bill . The lenders are only required to meet with these homeowners, not come to an agreement with the owners, but many are willing to try, given all the foreclosed homes they’re carrying on their books.
Must Read posts:
If you enjoyed reading this article, why not Kathy (719-287-1049) KTorline@msn.com
Are you a candidate for a short sale?
Colorado Springs Short Sales
f you are interested in a short sale, It’s important to utilize a Colorado Springs Real Estate Agent that specializes in Pre-foreclosures, Foreclosures, and Short Sales; and has a successful and ethical track record. Call Kathy Torline – Nordstrom, 719-287-1049.
With all this talk about short sales and foreclosures in Colorado Springs there are many consumers as well as REALTORS who are uncertain about what a short sale is. Let’s first start with a simple explanation of a Short Sale and then discuss who is a candidate for a short sale.
What is a “short sale?”
It is a sale in which the lender authorizes the property to be sold for less than what is owed on it, and it occurs before foreclosure. Essentially the buyer purchases the property for less than the seller’s mortgage and the seller’s closing costs. The seller is either unwilling or unable to cover the difference.
Lenders want to lessen their losses. If a short sale will give them less of a financial loss than going through a foreclosure, they will go for the short sale. If there is a second (or third) lien holder on the mortgage, they also enter into the equation. These other lien holders also have to agree to the short sale.
Who is a candidate for a short sale?
It is completely up to the Read the rest of this entry »
Foreclosure Assistance, help is available
I have published this article before, but I came across MANY new resources that I wanted to add
f you are interested in a short sale, It’s important to utilize a Colorado Springs Real Estate Agent that specializes in Pre-foreclosures, Foreclosures, and Short Sales; and has a successful and ethical track record. Call Kathy Torline – Nordstrom, 719-287-1049.
When many Colorado Springs home owners are in financial trouble and not making their house payments, they go into denial. They are embarrassed, and they hope that the situation will go away. The problems usually won’t solve themselves. The fact is that the sooner a home owner faces up to the situation the better. There are options out there!
One of the first steps I do is to refer Colorado Springs home owners to some of the local and national hot-lines that are now available to help home owners. I want to make sure they are as educated as possible about their options before they decide to list their home as a short-sale. I also encourage them to talk to a lawyer and/or a tax accountant. A short sale may not be the right step for them; I want them to understand all of their options and pick the one that’s best for their situation.
Colorado Foreclosure Resources
One of the best resources around is the Foreclosure Hot-Line at 877-601-HOPE. There is also a local organization called The Pikes Peak Foreclosure Partnership at 719-444-8833.
National Foreclosure Resources
There is another national organization called Hope Now at 888-995-HOPE; and one of the great feature of this web site is links to many mortgage companies web sites. If you have a VA loan, the phone # is (719) or (303) 914-5650. If you have a HUD/FHA loan, the phone # is (303) 672-5216
The goal of Read the rest of this entry »
Oh no, don’t tell me you have other liens on your short sale property
Are you thinking about a short-sale on your property?
I learned a very valuable lesson last week on a short sale listing. I was having a conversation with a title company; 
and the Escrow Officer reminded me that I should order an O & E (Owner’s and Encumbrances) on my short sale listing. I did so, and surprise ……… there were two extra liens on the property; two judgements. The seller is diligently working to see if he can negotiate to get these liens released; but he’s not sure he can get them to go away. The liens are a large enough dollar amount, that if we don’t get them released, I don’t think we’ll get the lender to accept a short sale.
Consequently, I now ask these questions when pre-qualifiying a seller for a short-sale listing; as not every seller is a good candidate for a short sale. As much as I want to help sellers in trouble, I need to remind myself that I can’t solve all of their problems; especially when it comes to liens on the property. Some of the questions I now ask are:
- Do you have a second mortgage on the property? Or two? Even by an individual?
- Who owns Read the rest of this entry »
8 Things You Must Know About VA Short Sales
VA Short Sales
Interested in selling your house as a short-sale? Email Kathy Torline KTorline@msn.com or call 719-287-1049
Colorado Springs has a high military population with both active duty and retired personnel. Fort Carson Army Base, the Air Force Academy, Peterson AFB & Schriever AFB, Cheyenne Mountain AFS and NORAD. are all located in the Colorado Springs Area.
The area is continuing to see an increase in short sales for GI borrowers when they must relocate during 
their PCS moves (permanent change of station). VA Short Sales are called “Offers in Compromise“, “Compromise Claims” or “Compromise Sales”. The VA may accept a Compromise Sale if the cost to the VA is determined to be less than that of foreclosure.
According to the VA web site: “When a homeowner receives an offer based on current market value that is lower than the total amount of the loan payoff, the homeowner can ask VA to approve a compromise sale. VA will review the situation with the mortgage company and if approved, pay the difference between the mortgage balance and the proceeds of sale.
Sometimes the mortgage company can approve the sale on behalf of VA through our Servicer Loss Mitigation Program. In fact, a majority of the mortgage companies now have a Loss Mitigation Department authorized by VA to process VA compromise sales.”
In order to be considered for a Compromise Sale, several factors must be considered as well as there are several steps to complete:
- The property must be sold at market value
- Closing costs Read the rest of this entry »
21 reasons short sales fail
Part X of Colorado Springs Short Sales Series
Interested in selling your house as a short-sale? Email Kathy Torline KTorline@msn.com or call 719-287-1049
According to an article in Reuters in April 2008, 1/3 of all short-sale fail. The study was conducted of more than 3,000 real estate agents by Campbell Communications.
Since I do short sales for clients in Colorado Springs and the surrounding areas, I thought I’d make up my own list of why they fail. My logic is that if I can avoid or minimize these issues as much as possible, I should be able to lessen the failure rate. Here’s my list; although I don’t have them ranked in any particular order. Some of these things I can control and some of them I can’t; regardless it was an interesting exercise to put the list together.
A. Training and education (One short sale class is not enough to prepare a realtor to represent a client in short sale.)
(1) Seller’s agents don’t always understand what they are doing
(2) Buyer’s agents don’t always understand what they are doing
B. A buyer is never found for the property
(3) Price is too high
(4) There is too much inventory on the market for buyers to choose from
(5) Undesirable location
(6) Property needs major repairs
(7) Not enough time to market the property before the property goes to foreclosure
C. Offer is too low Read the rest of this entry »
How do you price a Colorado Springs short sale?
The Art of Pricing a Short Sale
Part IX of Colorado Springs Short Sales Series
Interested in selling your house as a short-sale? Email Kathy Torline KTorline@msn.com or call 719-287-1049
I’ve had some agents tell me that it seems like everyone will be a short sale expert by the time all this is said
and done. Ladies and Gentlemen, I have to say that there are very FEW experts in short sales in this market; as I think every situation is different and every lender is different. No two situations are the same. Here are some of my favorite comments about short sales from other agents …………..
The seller needs to fix the roof, it won’t pass inspection. If the seller had the money to fix the roof, he wouldn’t be in a short-sale. Did you see the verbiage sold “as-is” in the MLS? Did you see that it was listed as cash or conventional financing only?
Why can’t the seller keep the utilities on? Again, if the seller had the money to keep the utilities on, he probably wouldn’t be in a short-sale.
And my favorite …………. I’m going to advise my seller to price the house really cheap, that way I’ll get several offers to send to the lender. I know the lender will accept any offer they get.
OK, so you are going to ask me: “And what does it matter Read the rest of this entry »
What’s in a short sale package?
One of the most important steps in a successful short sale, is putting together the short sale package which will be submitted to the lender. A complete package can make the difference in how long it takes to get a short sale submitted.
A recent short sale package I submitted to a lender was 76 pages in length.
What should be included in a short sale package?
Interested in selling your house as a short-sale? Email Kathy Torline KTorline@msn.com or call 719-287-1049
Packages can vary lender by lender, but the following is a basic check sheet of what should be included in a 
short sale package. Lenders will tell you to send a complete package.
__ Hardship Letter
This is a letter written by the seller to explain the borrower’s situation and requesting a short sale. It should describe why the borrower cannot make their mortgage payments and their fear of possible foreclosure. It should be a plea for the lender to consider a short sale.
__ Sellers Authorization
This gives the Realtor (or whoever else you designate) authorization to act as your representative in taking to the lender. Colorado has an approved Real Estate document, Seller Authorization Form
___ Paycheck Stubs – Last 2 months Read the rest of this entry »
What are the credit consequences on a short sale?
Part VII in Short Sales Series for Colorado Springs Home Owner’s
Related Previous Posts:
- Colorado Springs Homes, 4 things to know about a short sale – Part I of Short Sales Series
- Avoid Foreclosure, Know Your Options – Part II of Short Sales Series
- Colorado Springs Home Foreclosures – 11 benefits of a short sale – Part III of Short Sales Series
- The final step in the Colorado Foreclosure process – Part IV of Short Sale Series
- How long does it take to do Colorado Springs Short Sale? – Part V in Short Sale Series
- Are there tax ramifications to a Colorado Springs Short Sale – Part VI
Are there any credit consequences to a Short Sale?
As I continue to do more and more Short Sales for home sellers in Colorado, I frequently get asked this question. It’s a fairly simple answer, as the moment a home owner get 30+ days behind on their mortgage payment, the bank will probably report this information to the credit bureau. When a late payment is reported; it does have a direct affect on your credit.
It’s also important to note that when the actual Short Sale is completed, many lenders will report that the account was “paid in full for less than the full amount.” A credit report may also be marked as “settled.” Each lender has a different way of reporting that a Short Sale was done, but this seems to be the most common language that is seen. Read the rest of this entry »
Are there tax ramifications to a Colorado Springs short sale?
Taxes due on Short Sales?
As part of listing short sale properties, a large portion of what I do is help educate sellers who are in financial difficulty. I’m often asked about the tax implications of the debt forgiveness on a short sale or foreclosure. I hope this article will answer some of these questions.
I pride myself on thoroughly researching any article I write, and this article is no exception. Having said that, I’m not an accountant or CPA, and I urge you to seek professional tax advice on the tax ramifications of a Short-Sale and Foreclosure.
- Colorado Springs Homes, 4 things to know about a short sale - Part I of Short Sales Series
- Avoid Foreclosure, Know Your Options - Part II of Short Sales Series
- Colorado Springs Home Foreclosures – 11 benefits of a short sale - Part III of Short Sales Series
- The final step in the Colorado Foreclosure process – Part IV of Short Sale Series
- How long does it take to do Colorado Springs Short Sale? – Part V in Short Sale Series
What is the Mortgage Forgiveness Act?
The Mortgage Forgiveness Debt Relief Act of 2007 was passed for taxpayers who lose their homes in foreclosure. (According to the information on the IRS Web Site: “Homeowners whose mortgage debt was partly or entirely forgiven may be able to claim special tax relief by filling out newly-revised Form 982 and attaching it to their 2008 federal income tax return.”)
The law applies to debt forgiven in 2007, 2008 or 2009 and it’s important to note that debt forgiven on second homes and rental property does not qualify. Read the rest of this entry »
How long does it take to do Colorado Springs Short Sale? – Part V in Short Sale Series
Must Read Previous Posts:
- Colorado Springs Homes, 4 things to know about a short sale - Part I of Short Sales Series
- Avoid Foreclosure, Know Your Options - Part II of Short Sales Series
- Colorado Springs Home Foreclosures – 11 benefits of a short sale - Part III of Short Sales Series
- The final step in the Colorado Foreclosure process – Part IV of Short Sale Series
How long does it take to do a Short Sale in Colorado?
Get a Free Market Analysis on your Home, Email KTorline@msn.com or call 719-287-1049
As I continue to do more and more short sales; I think one of the most valuable services I can provide it to help educate and counsel potential home sellers who are interested in doing a short sale. Short sales aren’t a perfect solution, but they are an option.
There are many steps involved with the Short Sale process……
(1) The first step is an initial consultation with the homeowner to explain the “in and outs” of a short-sale, previewing the home, driving the neighborhood; completing a comprehensive market analysis on the home.
(2) If the homeowner decides to to a short sale …………. Read the rest of this entry »
Fradulant Short Sales hurt the Colorado Springs Real Estate Market
Fraudulent short sales ?
Short Sales – Part IV of Short Sale Series
Previous Posts:
- Colorado Springs Homes, 4 things to know about a short sale - Part I of Short Sales Series
- Avoid Foreclosure, Know Your Options - Part II of Short Sales Series
- Colorado Springs Home Foreclosures – 11 benefits of a short sale - Part III of Short Sales Series
Fraud can sadly sometimes come into play in a short sale transaction, which can causes a ripple affect in the Real Estate market and with legitimate sellers who need to do a short-sale. The following is a list of some of the things I’ve heard about in the marketplace. If you are a Seller, I strongly suggest that you stay away from these options.
(1) Submitting “Ghost” offers. I’ve ran into some Realtors who submit “ghost” offers to get lender approval before they have a committed buyer. They have a friend, or someone else they know, write an “ghost” offer; and this person doesn’t have any real intention of purchasing the property. The Short Sale Package gets submitted to the lender with the hope of getting approval from the lender. Once the lender gives approval on the offer, the person who put in the “ghost” offer withdrawls their offer.
I’m not a lawyer nor am I legal expert, but my understanding is that this is considered a fraudulent act if the initial “Buyer” on the offer did not have a true intention to purchase the property. These “fraudulent offers affect the industry as it clogs up the lender pipelines to sort through and review the bonafide offers.
Avoid Foreclosure, Know Your Options!
Do you own a home in Colorado Springs?
Interested in selling your house as a short-sale? Email Kathy Torline KTorline@msn.com or call 719-287-1049
Ask for help before foreclosure starts — don’t stick your heard in the sand!
Short Sales — Part II of Short Sale Series
When many homeowners are in financial trouble and not making their house payments, they go into denial. They are embarrassed, and they hope that the situation will go away. The problems usually won’t solve themselves. The fact is that the sooner a home owner faces up to the situation the better. There are option out there!
I typically meet pre-foreclosure homeowners after they’ve already missed several payments and they’ve heard something about short-sales. Maybe it’s been from a friend, maybe from the news, or maybe from their lender.
One of the first steps I do is to refer them to some of the local and national hot-lines that are now available to help home owners. I want to make sure they are as educated as possible about their options before they decide to list their home as a short-sale. I also Read the rest of this entry »
Colorado Springs Short Sale Primer, an explanation of debt forgiveness
Colorado Springs Short Sale Primer on Deb
When lenders accept less than what it is owed, they have 3 options:
- They can do nothing
- They can go after the deficiency
- They can send a 1099, which mean they forgive the debt and send out a 1099 form for the deficiency,
As an example:
Property is worth $220,000
Balanced owed is $240,000
Net received by the lender after the short sale is $190,000
The lender incurred a deficiency of $ $50,000
Why would a lender send a 1099 for the Deficiency?
The lender lost $80,000 of their income and they forgave the borrower’s debt. Per IRS regulations Read the rest of this entry »
