Super Bowl XLV will be played in Arlington in 2011, the National Football League announced Tuesday. The NFL owns, produces, and controls the country's largest annual sporting event, and their vote on Tuesday is a win for the North Texas Region, said Arlington Mayor Robert Cluck.
Cluck leads the city in thanking the North Texas Super Bowl Bidding Committee for their hard work."This is an extremely exciting time for North Texas after six months of hard work," the Mayor said Tuesday. "This was a highly competitive bidding process. Winning Super Bowl XLV brings enormous economic impact and worldwide prestige to the North Texas Region."
The City of Arlington is proud to be the new home of the Dallas Cowboys, which will host Super Bowl game day festivities in 2011. The stadium will have a capacity of 100,000 fans when it opens in 2009.
Throughout the region, cities such as Dallas, Fort Worth, Grapevine and Irving will host a variety of other Super Bowl related events and activities, as determined by the NFL.
"With the arrival of the Super Bowl in 2011, everyone benefits," the Mayor said.
Earlier this month, Senate Bill 1424 cleared the last legislative hurdle. The bill eliminates a population bracket in the law that would have prevented Arlington from accessing the Other Events Trust Fund. The fund was created to provide cities and counties with money to attract special events such as the Super Bowl, Pan American Games, the Olympics, All-Star Games and other types of large special events. Senate Bill 1424 was authored by Kim Brimer (R-Fort Worth) and Chris Harris (R-Arlington).
Tuesday, May 22, 2007
Wednesday, May 02, 2007
Giant Signs are proposed for GloryPark development
ARLINGTON -- Giant signs atop the Rangers Ballpark in Arlington and colossal images projected on the sides of multistory parking garages and buildings could be included in the Glorypark development.
The City Council was briefed Tuesday on proposed signs for the $600 million town center adjacent to the ballpark.
Four signs suggested for the western edge of the project could cover 75 percent of the building facades. Two could be 48 feet by 64 feet, or 3,072 square feet. The average billboard in Arlington is about 600 square feet, according to Jim Parajon, director of Community Development and Planning.
Council members did not seem concerned by the sizes of the signs or that they would display advertising.
"Creativity should not be limited," Councilman Robert Rivera said. "This is a signature not only for Arlington but for the region."
What the developer wants: A variety of signs, including:
Three large static or video signs (ranging from 30 feet by 80 feet to 30 feet by 100 feet) fixed to the roof of the ballpark on the south side, facing Randol Mill Road.
Projected-image signs with no size limit.
15 kiosks that may be up to 600 square feet.
City concerns: Planners said they were apprehensive about some sign requests, including:
Off-premises advertising proposed for 20 of 24 signs in Rangers Alley, on the south side of the ballpark.
15 roof signs that could be up to 200 feet by 8 feet.
No limit to sign advertising along private streets within Glorypark.
What's next: The council will review the sign proposal and vote on the second reading of Glorypark's zoning application. If the zoning is approved, the council will consider the site plan for the project.
* * *
3 Signs the developer wants affixed to the south side of the ballpark
3,000 square feet: Area of the largest of those proposed signs
600 square feet: Area of an average billboard in Arlington.
The City Council was briefed Tuesday on proposed signs for the $600 million town center adjacent to the ballpark.
Four signs suggested for the western edge of the project could cover 75 percent of the building facades. Two could be 48 feet by 64 feet, or 3,072 square feet. The average billboard in Arlington is about 600 square feet, according to Jim Parajon, director of Community Development and Planning.
Council members did not seem concerned by the sizes of the signs or that they would display advertising.
"Creativity should not be limited," Councilman Robert Rivera said. "This is a signature not only for Arlington but for the region."
What the developer wants: A variety of signs, including:
Three large static or video signs (ranging from 30 feet by 80 feet to 30 feet by 100 feet) fixed to the roof of the ballpark on the south side, facing Randol Mill Road.
Projected-image signs with no size limit.
15 kiosks that may be up to 600 square feet.
City concerns: Planners said they were apprehensive about some sign requests, including:
Off-premises advertising proposed for 20 of 24 signs in Rangers Alley, on the south side of the ballpark.
15 roof signs that could be up to 200 feet by 8 feet.
No limit to sign advertising along private streets within Glorypark.
What's next: The council will review the sign proposal and vote on the second reading of Glorypark's zoning application. If the zoning is approved, the council will consider the site plan for the project.
* * *
3 Signs the developer wants affixed to the south side of the ballpark
3,000 square feet: Area of the largest of those proposed signs
600 square feet: Area of an average billboard in Arlington.
Monday, April 23, 2007
Townhomes to rise near Arlington stadiums
Brownstone-style development is a first for city
01:30 PM CDT on Saturday, April 21, 2007
By JEFF MOSIER / The Dallas Morning News jmosier@dallasnews.com
ARLINGTON – A glimpse of Arlington's future might be found near the intersection of two local legends: Road to Six Flags and Nolan Ryan Expressway.
On that strip of land, where only a sales trailer sits, a developer is planning 93 upscale, brownstone-style townhomes – perhaps the first development of its kind in Arlington. City leaders and real estate agents said this is a hopeful sign for an entertainment district that will soon be anchored by the $1 billion Dallas Cowboys stadium and the $600 million retail, office and residential Glorypark project.
"I see this project as a sign of things to come," said Patrick Wyatt, chairman of the Arlington Board of Realtors. "There's no question. That area will bring all kinds of interesting developments that we haven't seen in Arlington before, from townhomes to condominiums to unique retail."
The Chelsea Park Townhomes are the first major new development in the entertainment district since the Cowboys stadium and Glorypark were announced in 2004. In the previous decade, Arlington residents waited for the large-scale development, including a rumored San Antonio-style Riverwalk, which was projected to spring up around Rangers Ballpark in Arlington.
That never happened, but signs of life now abound.
Eric English, an Arlington commercial real estate broker, said he was skeptical about whether the land near the Cowboys stadium would generate much interest. As a longtime Arlington resident and businessman, he was disappointed that the lofty expectations of the past faltered.
"I've heard the talk of it before, but now it's really coming," he said.
Mr. English said the combination of the stadium, Glorypark and hundreds of millions of dollars in new highway bridges and road improvements is finally generating interest. He said that some buildings in the entertainment district are selling at more than double their prices from several years ago, and investors and developers have been searching for deals.
Al Coker, whose firm is developing Chelsea Park, said he didn't see this project as a risk even though there is nothing comparable in Arlington. He said that jumping into a market first can be financially rewarding.
"No one knew they wanted a minivan until Chrysler brought it out," he said.
Sporting views
By Friday, 27 people had put down earnest money to reserve townhomes at the Chelsea Park development, which are selling for $200,000 to $340,000. About 70 percent of the units are expected to have rooftop decks with views of the ballpark and the Cowboys stadium.
The urban-style townhomes, with granite counters and hardwood floors, look like a perfect fit for the booming neighborhoods near downtown Dallas and Fort Worth.
Barbara Salser, a 37-year Arlington resident who was critical of the Cowboys stadium deal, said she's still skeptical about the expected developments. She said that Arlington's demographics – which include many older and low-income residents – don't lend themselves to this kind of project.
"I'll believe it when I see it," she said. "I'm afraid it's just more rhetoric."
Ms. Salser said that without the draw of something like the Cultural District in Fort Worth or a "real downtown," nothing much is likely to happen near the Cowboys stadium.
Arlington City Council member Mel LeBlanc, whose district includes the stadiums, said this is a chance to move into a more upscale market that usually bypasses the city.
"I would look at this as an indication of investor confidence in Arlington," he said about the townhomes. "It's the tip of the iceberg."
Aaron Schroedel, who lives in Arlington's entertainment district, said he believes he'll eventually move because of the development. He and dozens of others live in a neighborhood – built in the 1960s with homes typically valued around $100,000 – that is tucked between the townhomes and the Cowboys stadium.
"The neighbors think that it's five years at the most," he said. "It's a good possibility that we'll be bought out."
Mr. Schroedel said the value of his home has already increased by one-third in the past few years, and rumors are floating around that the neighborhood is a prime spot for a hotel.
Cowboys essential
Mr. Coker said he wouldn't have considered Chelsea Park without the Cowboys stadium.
"In Texas, we love our brands, and we love our football," he said. "We didn't conceive this project really until after the Cowboys made their announcement."
Mr. English said he doesn't expect to see a lot more development in that area until Glorypark finally opens in 2009, about the time the Cowboys start playing in Arlington. He said that many existing property owners are hanging on to their land or buildings until prices increase significantly in the next few years. Other investors are buying property now and waiting to develop until the foot and vehicle traffic that should be generated by Glorypark arrives.
"There will be people doing some short-term stuff, but I think most will be tied to when Glorypark opens," Mr. English said.
He likened Arlington's entertainment district to the Victory development surrounding American Airlines Center in Dallas. There was little progress for years and then it blossomed nearly overnight into a development with fancy restaurants, a boutique hotel and expensive high-rise condominiums.
Mr. Coker said he sees the comparisons to Victory and expects a building boom soon. He said that his customers – part suburban and part urban pioneers – are just the first wave.
"It's not just one person who has a good idea," Mr. Coker said. "It's who acts on it first." // Image1 end -->
01:30 PM CDT on Saturday, April 21, 2007
By JEFF MOSIER / The Dallas Morning News jmosier@dallasnews.com
ARLINGTON – A glimpse of Arlington's future might be found near the intersection of two local legends: Road to Six Flags and Nolan Ryan Expressway.
On that strip of land, where only a sales trailer sits, a developer is planning 93 upscale, brownstone-style townhomes – perhaps the first development of its kind in Arlington. City leaders and real estate agents said this is a hopeful sign for an entertainment district that will soon be anchored by the $1 billion Dallas Cowboys stadium and the $600 million retail, office and residential Glorypark project.
"I see this project as a sign of things to come," said Patrick Wyatt, chairman of the Arlington Board of Realtors. "There's no question. That area will bring all kinds of interesting developments that we haven't seen in Arlington before, from townhomes to condominiums to unique retail."
The Chelsea Park Townhomes are the first major new development in the entertainment district since the Cowboys stadium and Glorypark were announced in 2004. In the previous decade, Arlington residents waited for the large-scale development, including a rumored San Antonio-style Riverwalk, which was projected to spring up around Rangers Ballpark in Arlington.
That never happened, but signs of life now abound.
Eric English, an Arlington commercial real estate broker, said he was skeptical about whether the land near the Cowboys stadium would generate much interest. As a longtime Arlington resident and businessman, he was disappointed that the lofty expectations of the past faltered.
"I've heard the talk of it before, but now it's really coming," he said.
Mr. English said the combination of the stadium, Glorypark and hundreds of millions of dollars in new highway bridges and road improvements is finally generating interest. He said that some buildings in the entertainment district are selling at more than double their prices from several years ago, and investors and developers have been searching for deals.
Al Coker, whose firm is developing Chelsea Park, said he didn't see this project as a risk even though there is nothing comparable in Arlington. He said that jumping into a market first can be financially rewarding.
"No one knew they wanted a minivan until Chrysler brought it out," he said.
Sporting views
By Friday, 27 people had put down earnest money to reserve townhomes at the Chelsea Park development, which are selling for $200,000 to $340,000. About 70 percent of the units are expected to have rooftop decks with views of the ballpark and the Cowboys stadium.
The urban-style townhomes, with granite counters and hardwood floors, look like a perfect fit for the booming neighborhoods near downtown Dallas and Fort Worth.
Barbara Salser, a 37-year Arlington resident who was critical of the Cowboys stadium deal, said she's still skeptical about the expected developments. She said that Arlington's demographics – which include many older and low-income residents – don't lend themselves to this kind of project.
"I'll believe it when I see it," she said. "I'm afraid it's just more rhetoric."
Ms. Salser said that without the draw of something like the Cultural District in Fort Worth or a "real downtown," nothing much is likely to happen near the Cowboys stadium.
Arlington City Council member Mel LeBlanc, whose district includes the stadiums, said this is a chance to move into a more upscale market that usually bypasses the city.
"I would look at this as an indication of investor confidence in Arlington," he said about the townhomes. "It's the tip of the iceberg."
Aaron Schroedel, who lives in Arlington's entertainment district, said he believes he'll eventually move because of the development. He and dozens of others live in a neighborhood – built in the 1960s with homes typically valued around $100,000 – that is tucked between the townhomes and the Cowboys stadium.
"The neighbors think that it's five years at the most," he said. "It's a good possibility that we'll be bought out."
Mr. Schroedel said the value of his home has already increased by one-third in the past few years, and rumors are floating around that the neighborhood is a prime spot for a hotel.
Cowboys essential
Mr. Coker said he wouldn't have considered Chelsea Park without the Cowboys stadium.
"In Texas, we love our brands, and we love our football," he said. "We didn't conceive this project really until after the Cowboys made their announcement."
Mr. English said he doesn't expect to see a lot more development in that area until Glorypark finally opens in 2009, about the time the Cowboys start playing in Arlington. He said that many existing property owners are hanging on to their land or buildings until prices increase significantly in the next few years. Other investors are buying property now and waiting to develop until the foot and vehicle traffic that should be generated by Glorypark arrives.
"There will be people doing some short-term stuff, but I think most will be tied to when Glorypark opens," Mr. English said.
He likened Arlington's entertainment district to the Victory development surrounding American Airlines Center in Dallas. There was little progress for years and then it blossomed nearly overnight into a development with fancy restaurants, a boutique hotel and expensive high-rise condominiums.
Mr. Coker said he sees the comparisons to Victory and expects a building boom soon. He said that his customers – part suburban and part urban pioneers – are just the first wave.
"It's not just one person who has a good idea," Mr. Coker said. "It's who acts on it first." // Image1 end -->
Thursday, April 19, 2007
New Boat Inspection Program Launches as Lake Arlington
New Boat Inspection Program Launches at Lake Arlington
Lake Arlington boaters can now have their vessels inspected free of charge. Beginning Saturday, April 21, the Dive, Search and Rescue Division of the Arlington Fire Department in partnership with the U.S. Coast Guard Auxiliary will be on hand to inspect boats from 8 a.m. to Noon at Richard Simpson Park Boat Ramp at Lake Arlington.
Lake Arlington boaters can now have their vessels inspected free of charge. Beginning Saturday, April 21, the Dive, Search and Rescue Division of the Arlington Fire Department in partnership with the U.S. Coast Guard Auxiliary will be on hand to inspect boats from 8 a.m. to Noon at Richard Simpson Park Boat Ramp at Lake Arlington.
Tuesday, April 10, 2007
Matlock foliage barrier approved
Live oaks and hollies could be filtering the sounds and blocking the sights of Matlock Road by early June for Walnut Estates residents.
The City Council endorsed a landscaping plan Monday night to address complaints about a road project that widened Matlock and elevated it about 10 feet for flood protection. Residents said the traffic became louder and more visible when the construction ended last summer.
The staff will seek bids on 53 Nellie R. Stevens hollies and 16 live oak trees, and the council could award a contract by early May.
"As far as I'm concerned, it sounds good to me at this point," resident Chris Bardasian said, but he added that he wanted to outline the plan for his neighbors and get their opinions.
The landscaping plan would cost about $30,000 to $35,000, said senior park planner James Fish. The hollies will line the front of the subdivision's 6-foot brick wall, providing an effective noise barrier because of its dense foliage and coarse leaves, Fish said.
The live oaks will be planted on the slope leading up to the road.
The council decided last month against other neighborhood requests -- building a noise wall along Matlock at a cost of $130,000, or increasing the subdivision wall's height by two feet, which would have cost $50,000.
Council members said they were concerned about setting a precedent and about liability if the city augments a private wall.
The City Council endorsed a landscaping plan Monday night to address complaints about a road project that widened Matlock and elevated it about 10 feet for flood protection. Residents said the traffic became louder and more visible when the construction ended last summer.
The staff will seek bids on 53 Nellie R. Stevens hollies and 16 live oak trees, and the council could award a contract by early May.
"As far as I'm concerned, it sounds good to me at this point," resident Chris Bardasian said, but he added that he wanted to outline the plan for his neighbors and get their opinions.
The landscaping plan would cost about $30,000 to $35,000, said senior park planner James Fish. The hollies will line the front of the subdivision's 6-foot brick wall, providing an effective noise barrier because of its dense foliage and coarse leaves, Fish said.
The live oaks will be planted on the slope leading up to the road.
The council decided last month against other neighborhood requests -- building a noise wall along Matlock at a cost of $130,000, or increasing the subdivision wall's height by two feet, which would have cost $50,000.
Council members said they were concerned about setting a precedent and about liability if the city augments a private wall.
Friday, March 30, 2007
How Do the Changes in the Sub-Prime Market Affect Our Local Area?
The Wall Street Journal just published an interesting article and map showing the percentages of all mortgages that were originated in 2006 that were sub-prime. For Arlington-Fort Worth is was 13.69%. That is allot of buyers that will not be able to get a loan as easily as last year. Here is a link to the entire article...
http://online.wsj.com/public/resources/documents/info-subprimemap07-sort2.html
http://online.wsj.com/public/resources/documents/info-subprimemap07-sort2.html
Monday, March 26, 2007
Year-to-Date MLS Summary Report for: February 2007
Highlights...
Total number of sales for the 1st 2 months is down 4%. The number of Pending sales is up 2% and the number of Active Listings is up 7%. The average Days on the Market is up 5% to 81 days.
Here is the link for the full report...
http://recenter.tamu.edu/mls/ntreis/feb07/table1YTD.html
Total number of sales for the 1st 2 months is down 4%. The number of Pending sales is up 2% and the number of Active Listings is up 7%. The average Days on the Market is up 5% to 81 days.
Here is the link for the full report...
http://recenter.tamu.edu/mls/ntreis/feb07/table1YTD.html
Sunday, March 25, 2007
Name That Dog Park and Win A Prize!
If you come up with creative names for your pooch, you might have what it takes to dream up the winning name for Arlington's first dog park.
The city is holding a monthlong contest to name the park in southeast Arlington. The wooded, 6-acre park will include off-leash play areas for large and small dogs, water fountains, shaded seating areas, decorative fire hydrants and walking trails. It will be behind the city's planned $4.8 million animal shelter at 900 S.E. Green Oaks Blvd.
Participants can suggest names based on a person, a pet or just make a play on words, like Fort Worth's Fort Woof dog park. Entry forms will be available starting April 1 on the city's Park and Recreation Web site, www.aceacorn.com, or at recreation facilities and veterinarian offices.
The contest is open to Arlington residents.
The top three winners will be announced at the park's grand opening ceremony June 16.
Arlington is seeking suggestions of names for its new dog park. The contest runs April 1-29. Winners will be announced June 16.
First place: $250, a large inscribed paver and a lifetime park pass.
Second place: Small inscribed paver and two-year park pass.
Third place: One-year park pass.
For more information, call 817-459-5476.
SOURCE: City of Arlington
The city is holding a monthlong contest to name the park in southeast Arlington. The wooded, 6-acre park will include off-leash play areas for large and small dogs, water fountains, shaded seating areas, decorative fire hydrants and walking trails. It will be behind the city's planned $4.8 million animal shelter at 900 S.E. Green Oaks Blvd.
Participants can suggest names based on a person, a pet or just make a play on words, like Fort Worth's Fort Woof dog park. Entry forms will be available starting April 1 on the city's Park and Recreation Web site, www.aceacorn.com, or at recreation facilities and veterinarian offices.
The contest is open to Arlington residents.
The top three winners will be announced at the park's grand opening ceremony June 16.
Arlington is seeking suggestions of names for its new dog park. The contest runs April 1-29. Winners will be announced June 16.
First place: $250, a large inscribed paver and a lifetime park pass.
Second place: Small inscribed paver and two-year park pass.
Third place: One-year park pass.
For more information, call 817-459-5476.
SOURCE: City of Arlington
Saturday, March 10, 2007
What is a Short Sale, & is it right for me?
A Short Sale is when a homeowner owes more against the home than what the home is worth. What's important to note here, is that the homeowner MUST sell.
If the homeowner does not have to sell, or does not want to sell their home, there are MANY options available to homeowners. They could move into a more affordable home and rent out their existing home, they could take on a roommate, they could refinance (although this is not always the best path. Homeowners in a short sale situation are often in financial distress, which means higher rates and fees because you're seen as a higher credit risk to a new lender), they could talk with their existing lenders to re-configure the terms of the loan. Homeowners who do not want to sell or do not have to sell ought to seek out a HUD-approved housing counseling agency. Why? Because at bare minimum, SOMEONE, in this case our federal government, has deemed the housing counseling agency competent. What a homeowner should not do is to blindly trust that the signs by the side of the road are from reputable folks. In fact, the assumption ought to be that if a deal looks and sounds too good to be true, it is. There are no angels on earth. Homeowners, you can be easily taken advantage of by these folks. Wake up and keep reading.
A Short Sale, Comprosmise Sale, or Pre-Foreclosure Workout are different ways of saying the same thing.
Selling short means you're asking the underlying lender(s) to accept less than their payoff in order to facilitate a sale of the home, instead of foreclosing on the home.
Foreclosure is expensive for a mortgage lender. Mortgage lenders are not in the business of foreclosing on houses (for the sake of our banking system liquidity and stability we all hope that's not the case). Banks and lenders are in business of making loans. They don't want the house back. This is a business decision for the lender. Which means it has to make rational, logical sense.
Homeowners, you will be asked to prove financial distress. This means you will have to submit proof that you don't have the money to make up the shortage. If you do have the money, this is no longer a short sale, the industry calls this a "seller to bring cash in at closing" sale. If you ask your real estate agent to help you in hiding assets, an agent cannot assist you with defrauding a lender.
Homeowners, you will be asked to pay back the shortage. That's right, your lender will ask you to sign a brand new unsecured note in order for you to pay back the difference in monthly installments. If, out of the goodness of their heart, (don't count on it) the lender "forgives" the debt, then the IRS sees this as a taxable event. Homeowners: Go see your favorite tax attorney or CPA for tax advice if you are in a short sale scenario.
Homeowners, the worst mistake you can make is to go into denial and stay in your "happy place" and not make those hard decisions. Let's review. The best steps you can take are preventative. When you see yourself getting close to needing to sell in order to avoid foreclosure:
1) Decide if you absolutely must sell or if you're better off riding out the financial tough road. If there's a light at the end of the tunnel, and you don't want to sell, perhaps you're better off not selling.
2) Talk to a HUD-approved housing counseling agency that offers "default" counseling.
3) Don't ignore letters or calls from your lenders. I recommend renting and watching the movie "House of Sand and Fog" to wake you up from your state of denial. Talk to your lender.
4) If you're committed to selling, interview three licensed real estate agents. If one of them offers to purchase the house right there in your living room.....ask the agent if that's ethical and legal and see what they say. Real estate agents have an obligation to put YOUR interests ahead of their own interests. State agency laws vary, but this is a core concept of agency.
5) Always seek legal counsel if you are a short sale homeowner. There are things attorneys can do that real estate agents cannot do.
Real estate agents: The best steps you can take are to educate yourself about how to present your firm offer to the underlying lien holder(s). In a short sale, title is transferred using a warranty deed (in some states it is called a different sort of deed like a bargain and sale deed) which means title must be clear of all liens and encrumbances (except for items that will run with the land like easements, real estate taxes, and the like.) This means you might have to present the firm offer to more than one lien holder. Example:
Sale price: 300,000
First mortgage payoff: 250,000
Second mortgage payoff: 100,000
Real estate agents: In the above example, if you're trying to work with the first mortgage lender and they're not giving you the time of day, it's because they are expecting to get all $250K because they're in first lien postion. Your work will be with the second lien holder, who has much to lose should the first foreclose and everything to gain by negotiating with you NOW, before foreclosure.
Real estate agents, check your local Multiple Listing Service (MLS) policies and procedures about disclosing the "short sale" terms to the other members of your MLS.
Real estate agents, the lender(s) will ALWAYS ask you to cut your commission. Always, always, always. It is their duty to mitigate losses. That means asking everyone to cut their fees. Don't take it personally. So, should you cut your commission? These transactions are difficult, time consuming, gut-wrenching, and ulcer-inducing. Why on earth would you accept a low fee? When asked to slice your fee to the bone, all you have to do is say "no." The lender needs you more than you need them; the lender does not want to foreclose.
Sometimes real estate agents tell me they wouldn't touch one of these deals because of the increased liability and the hard work. To that I ask, "Well, what if you were the one who sold them the house?" Then the room usually falls silent.
If the homeowner does not have to sell, or does not want to sell their home, there are MANY options available to homeowners. They could move into a more affordable home and rent out their existing home, they could take on a roommate, they could refinance (although this is not always the best path. Homeowners in a short sale situation are often in financial distress, which means higher rates and fees because you're seen as a higher credit risk to a new lender), they could talk with their existing lenders to re-configure the terms of the loan. Homeowners who do not want to sell or do not have to sell ought to seek out a HUD-approved housing counseling agency. Why? Because at bare minimum, SOMEONE, in this case our federal government, has deemed the housing counseling agency competent. What a homeowner should not do is to blindly trust that the signs by the side of the road are from reputable folks. In fact, the assumption ought to be that if a deal looks and sounds too good to be true, it is. There are no angels on earth. Homeowners, you can be easily taken advantage of by these folks. Wake up and keep reading.
A Short Sale, Comprosmise Sale, or Pre-Foreclosure Workout are different ways of saying the same thing.
Selling short means you're asking the underlying lender(s) to accept less than their payoff in order to facilitate a sale of the home, instead of foreclosing on the home.
Foreclosure is expensive for a mortgage lender. Mortgage lenders are not in the business of foreclosing on houses (for the sake of our banking system liquidity and stability we all hope that's not the case). Banks and lenders are in business of making loans. They don't want the house back. This is a business decision for the lender. Which means it has to make rational, logical sense.
Homeowners, you will be asked to prove financial distress. This means you will have to submit proof that you don't have the money to make up the shortage. If you do have the money, this is no longer a short sale, the industry calls this a "seller to bring cash in at closing" sale. If you ask your real estate agent to help you in hiding assets, an agent cannot assist you with defrauding a lender.
Homeowners, you will be asked to pay back the shortage. That's right, your lender will ask you to sign a brand new unsecured note in order for you to pay back the difference in monthly installments. If, out of the goodness of their heart, (don't count on it) the lender "forgives" the debt, then the IRS sees this as a taxable event. Homeowners: Go see your favorite tax attorney or CPA for tax advice if you are in a short sale scenario.
Homeowners, the worst mistake you can make is to go into denial and stay in your "happy place" and not make those hard decisions. Let's review. The best steps you can take are preventative. When you see yourself getting close to needing to sell in order to avoid foreclosure:
1) Decide if you absolutely must sell or if you're better off riding out the financial tough road. If there's a light at the end of the tunnel, and you don't want to sell, perhaps you're better off not selling.
2) Talk to a HUD-approved housing counseling agency that offers "default" counseling.
3) Don't ignore letters or calls from your lenders. I recommend renting and watching the movie "House of Sand and Fog" to wake you up from your state of denial. Talk to your lender.
4) If you're committed to selling, interview three licensed real estate agents. If one of them offers to purchase the house right there in your living room.....ask the agent if that's ethical and legal and see what they say. Real estate agents have an obligation to put YOUR interests ahead of their own interests. State agency laws vary, but this is a core concept of agency.
5) Always seek legal counsel if you are a short sale homeowner. There are things attorneys can do that real estate agents cannot do.
Real estate agents: The best steps you can take are to educate yourself about how to present your firm offer to the underlying lien holder(s). In a short sale, title is transferred using a warranty deed (in some states it is called a different sort of deed like a bargain and sale deed) which means title must be clear of all liens and encrumbances (except for items that will run with the land like easements, real estate taxes, and the like.) This means you might have to present the firm offer to more than one lien holder. Example:
Sale price: 300,000
First mortgage payoff: 250,000
Second mortgage payoff: 100,000
Real estate agents: In the above example, if you're trying to work with the first mortgage lender and they're not giving you the time of day, it's because they are expecting to get all $250K because they're in first lien postion. Your work will be with the second lien holder, who has much to lose should the first foreclose and everything to gain by negotiating with you NOW, before foreclosure.
Real estate agents, check your local Multiple Listing Service (MLS) policies and procedures about disclosing the "short sale" terms to the other members of your MLS.
Real estate agents, the lender(s) will ALWAYS ask you to cut your commission. Always, always, always. It is their duty to mitigate losses. That means asking everyone to cut their fees. Don't take it personally. So, should you cut your commission? These transactions are difficult, time consuming, gut-wrenching, and ulcer-inducing. Why on earth would you accept a low fee? When asked to slice your fee to the bone, all you have to do is say "no." The lender needs you more than you need them; the lender does not want to foreclose.
Sometimes real estate agents tell me they wouldn't touch one of these deals because of the increased liability and the hard work. To that I ask, "Well, what if you were the one who sold them the house?" Then the room usually falls silent.
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