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Archive for June, 2011

For Rent: 3BR/2+1BA Townhouse in Durham, NC, $975/month.

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For Rent: 3BR/2+1BA Single Family House in Durham, NC, $1,150/month.

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For Rent: 1BR/1BA Townhouse in Durham, NC, $900/month.

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For Rent: 3BR/2+1BA Townhouse in Durham, NC, $1,150/month.

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To short sell or not, that is one of the questions.

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Short Sale
More and more I hear, “Just sell it short and your troubles will be gone.” Nothing could be further from the truth.

I am not an accountant or a lawyer but here’s my experience.

First, a short sale is when a seller owes more on a home than the home will fetch on the open market and the seller LACKS the resources to make up the gap. This is very important to understand. If owner or seller has retirement/401K/savings/stocks/bonds etc. that can make up the gap, they are NOT short sellers and typically their mortgage holder will not allow their petition for short sale.

Petition for short sale? Yes! Banks at their whim may or may not grant short sale status. Oh, and granting short sale status can in some instances take UP TO… ONE YEAR. Six months is the standard though. Also, if one is making payments on time, adding extra to principal, you can most likely forget being granted a short sale.

So let’s say you or a family member or friend; get granted a short sale. The bank may be forgiving tens of thousands of dollars in mortgage debt, oh, but they’re not. Once the home is sold as a short sale, the bank may simultaneously obtain a deficiency judgment against the former owner of the sold home. That owner is then on the hook, liable, for the amount of deficiency…they owe the bank the money that was granted and this is a matter of record and it is reported to the credit agencies.

The bank may also 1099 the former owner of the home and the deficiency will then be viewed as income or even capital gain by the state of residence and the IRS.

The role of the attorney advising a home seller to short sale can be complicated too. I’ll just say billable hours and leave it at that; consider that the process can take up to a year and may require countless hours of work and countless dollars too.

So do I advise short selling; no, and I look at it this way, when the real estate market was booming and our property values were appreciating, did the banks come asking for more money on our mortgage payments? They didn’t, so why when the market depreciates do we expect the opposite? There are alternatives to short selling; rent the home, live with it and stay put, or find additional income to pay down mortgage principal.

Finally, based on what I see in the market, I don’t see any real estate market appreciation for the next five to seven years minimum.
This said, we must change our ways of thinking about real estate.

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18 Marchmont Court
The Commons at Colony Hill offers single family living with townhouse amenities. The HOA maintains the grounds; owners maintain their dwellings, still how wonderful to have the grass cut. How wonderful to be prepared with a whole house generator.
18 Marchmont Court is in a word, SPECTACULAR. The main level and second level are floored in beautiful Ebony hardwood. The center staircase offers custom millwork which is elegant and one of a kind. The office/study on the main level offers a light filled sanctuary with warm custom crafted paneling. Additionally there is a main level owner’s suite with a luxurious attached bath.

WOW, describes the kitchen in this home with its expansive center island, Marble counter tops, a Gen Air range, Sub Zero refrigerators and a Copper Farmer’s sink. Additionally the finely crafted cabinets offer abundant storage and elegant display options.

This home offers and elevated verandah with exterior kitchen equipped with a sink and gas grill. The verandah is accessed only from the main level of the home for safety and security.

There is a full basement with two additional bedrooms, full bath, family room and a tucked under two car garage. The second floor offers a reading niche at the front of the home and three bedrooms. There are two full baths, each with ceramic tile at the second floor too.

18 Marchmont has so much to offer in terms of craftsmanship and value added features. An HSA Warranty is offered with this home for peace of mind. 18 Marchmont Court is 5 minutes to Duke, 10 minutes to Chapel Hill and 20 minutes to RTP. This home deserves a personal tour. Call or email me today to arrange your visit.

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