Shakopee Short Sale Reduced $39,000!

shakopee short salesThis truly is one of the best Shakopee short sales on the market! Just reduced with a BANK APPROVED short sale price offer of only $291,000. There are about $17,000 in assessment on this home as city sewer and water were connected, and the buyer must assume those. Either pay for them through 2018, pay them off or increase the price price to cover. Solid Rambler on over an acre lot and with over 4200 sqft.

Video 523 Barrington | Shakopee Short Sales

Online Minnesota Short Sale Seminar For Sellers

short sale seminar minnesotaIf you are thinking of selling you home in Minnesota and owe more than your home is worth you may be comparing foreclosure vs short sale and wondering what your options are. Tom Scott at Re/Max Advantage Plus and the Twin City Real Estate Team will be hosting a 1-2 hour short sale real estate seminar to help answer questions you may have about the process, talk about the consquences of both and discuss the short sale process. We will be hosting on and require you to RSVP to by January 25th. I have created brief 30 seconds video clips to help sellers with some of the most common questions asked about short sale vs foreclosure.

Minnesota Short Sale Seminar Online

We understand if you are considering a short sale no one wants to raise their hand and volunteer that information. That is why we have created an anoymous Minnesota short sale seminar you can ask the questions you need.

When: January 26th 10:00am to 11:00am or Noon depending on questions.

Where: Anywhere you have computer access, even in the comfort of your own home.

To RSVP Call 612-384-2178 or email

This seminar is for informational purposes only and we always recommend you consult a short sale attorney. Tom Scott of Re/Max Advantage plus works with local atorneys when conducting a short sale and has recommendations upon request.

What is a Shakopee MN Short Sale?

Shakopee Minnesota Short Sale Help

Short sales in Minnesota can be stressful and frustrating, but they don’t have to be. What is a MN short sale? A short sale is essentially when a seller owes more on their mortgage or mortgages than the home is worth. The bank will negotiate with the seller to get rid of the remaining balance on the mortgage if the seller qualifies for a short sale?

View Our Video About What is a Shakopee MN Short Sale


Shakopee Short Sale Realtors

We do not handle the short sale process directly with the banks. Our Shakopee short sale realtors team feels the attorneys we work with provide our clients the highest level of service, acShakopee short sale real estate agentscountability and best chances to negotiate the deficient balance.  The legal teams we work with to help you avoid foreclosure as a short sale in Minnesota are the best in the business.  Our job is to help get an offer on your home. We list and sell your home no different than a traditional sale.  High quality photos, youtube videos, syndicated listing on the best websites on the interest. We do it all to make this a less stressful process you both you and your family. We look to build relationships with our clients and get them on the right track both during the MN short sale process and after.

Shakopee Short Sales: Bonanza for Home Buyers

representative of shakopee short sales

Bam! Bam! Bam!

Did you hear that?

That’s the sound of opportunity knocking!  Today’s Shakopee real estate market is presenting you with unprecedented purchase opportunities, and Shakopee short sales are holding a window of opportunity open for home buyers. Many of these Shakopee short sales listings are priced tens to hundreds of thousands of dollars less than what the current home owners paid for them just a few years ago.

Here are some Shakopee MN short sales listings that were posted on the MLS/IDX within the last 30 days:


Here is a link that will display ALL Shakopee Short Sales, according to the MLS/IDX system.


Buying Shakopee Short Sales: A Window of Opportunity

But don’t expect this window of opportunity to stay open forever. Interest rates right now are at historic lows, and can only go up, and the economy will eventually make a full recovery, and homebuyer confidence and demand will soar once again.  As the supply of Shakopee short sales inventory declines, prices can only go up.

By definition, Shakopee short sales are “short” because proceeds of the sale are less than the current balance of the mortgage on the subject property.  This means that banks will need to “eat” the difference in the form of a loss.  Obviously this loss is your gain!

Do lenders really do this, and why would they do it? Yes!  Lenders do not want to accumulate any more REO inventory; they know from experience that if the property goes into foreclosure, they will incur many more expenses and take a much larger loss.  Lenders are becoming more realistic  than ever, and are willing to negotiate.

If you are shopping for Shakopee short sales, there are a few things you should know.  That property that you see listed as a “short sale” might not really be for sale because the lender might not be willing to approve of an offer at list price.  A Shakopee short sales expert can help you uncover information about this aspect of the sale.  Also, it is possible for your offer to get “bumped” and frequently it can take a long time for offers to be accepted.  Multiple offers are often placed on these properties.  Also, these properties cannot be purchased for pennies on the dollar as some late-night TV infomercials may suggest; however a professional Shakopee short sales expert with experience, finesse, and acumen can still help you get a great bargain by guiding you through the process, providing a realistic, objective view of the transaction, and negotiating with the lender.  I can cut through the layers of red tape and help ensure that the entire transaction proceeds smoothly to closing.

Call me for a free consultation at 612.384.2170. Benefit from my years of experience with Shakopee short sales, my negotiation skills, and the five-star client service that I provide.  I am here to help!

Shakopee Short Sales: Help for Homeowners

If you are “upside down” on your mortgage, you are in good company. Many Shakopee homeowners in the same situation due to unforseen circumstances like loss of job or business, or even from balloon financing or other types of mortgages that demand an increase in monthly payments that cannot be met by the homeowner.  The “strategic foreclosure” approach to this problem is tempting to many sellers in this situation; however, it is important to realize that this idea is hardly “strategic” at all.  Foreclosures have untoward long-term consequences.  However, many Shakopee home owners have found that a successful short sale of the property is the best possible solution.

Common Myths About Shakopee Short Sales

Unfortunately, the “strategic foreclosure” is just one of a number of myths that some home owners have accepted.  Here are a few others:

Myth: I have to be delinquent on my monthly mortgage payments.
Fact: Lenders often consider hardship situations or conditions that ensure an upcoming shortfall.  If you are distressed by your current mortgage payments on your Shakopee home, contact your lender immediately to discuss the situation.

Myth: Banks will just let the property go into foreclosure.
Fact: Foreclosures are lengthy and expensive, and the lender will lose large amounts of money.  Lenders would rather see a short sale on  your Shakopee property before accepting more REO inventory.  As a result, they will go to great lengths to avoid the foreclosure process on your Shakopee home.

Myth:  There is not enough time for me to complete a short sale on my Shakopee property.
Fact:  Frequently, lenders will push the foreclosure deadlines back if they believe you are making reasonable efforts to sell your house. As a Shakopee short sales expert, I have been frequently been contacted by lenders who want to know the details about how your property is listed and marketed.

Myth:  Shakopee short sales rarely get approved.
Fact:  If you disclose everything about your situation to your REALTOR, the Realtor practices due diligence and knows how to communicate with the lender, and knows how to handle the details, your short sale will most likely be approved.

Myth: If I do a short sale, I will have to pay back the the difference between the proceeds and the balance of the mortgage.
Fact:  This rarely happens.  You will want a written guarantee from the lender stating that the balance has been forgiven.  Also, you should talk to your tax adviser about the tax consequences of the forgiven debt.

Myth: Listing my home as a short sale will be an embarrassment to me.
Fact: Hardly! nAny stigma attached to short sales has completely disappeared. More people are in your situation than you can possibly imagine.  However, long-term affects of foreclosure on your credit rating will follow you for a long, long time.

Help With Buying Short Sales Listings in Shakopee

Do you have any questions about listing your home as a Shakopee short sale?  Please call me for a confidential consultation at 612.384.2178.  Don’t let a foreclosure turn your life upside down.hakopee short sales.

Short Sale vs Foreclosure

Short Sale vs Foreclosure

Short Sale vs Foreclosure RealtorsMany financially troubled homeowners are aware that foreclosure is a lengthy process and many have questions about short vs foreclosure. This was sent from an attorney, Bradley Kirscher, who specializes in short vs foreclosure. 2012 is the end of the Mortgage Forgiveness Debt Relief Act of 2007 and many are curious what ramifications there are with a Short Sale vs Foreclosure.  Some have heard stories about people living in their home for years without making a payment because their lender was overburdened with defaulted loans and foreclosures.  Those stories may convince them that their best choice is to remain in their home without paying until forced to leave. That urge to remain in the home they know, coupled with the commonly-accepted notion that a Short Sale vs Foreclosure is simply too difficult to complete, keeps many people who would otherwise be qualified from listing their home for short sale.  Why go through the hassle when I could live rent-free for an indefinite period of time?  How does a Short Sale vs Foreclosure benefit me, the struggling homeowner?  Aren’t Realtors just trying to earn a commission at my expense?  These are difficult questions to answer, since the questions themselves suggest that the homeowner is unlikely to sign a listing agreement. However, now is the time to address these questions, and here is the answer: TAXES!

As a general rule, cancelled debt is treated by the IRS as income.  A mortgage lender issues an IRS Form 1099-C anytime it cancels a portion of a homeowner’s debt – whether through short sale or foreclosure (foreclosure by advertisement or “non-judicial foreclosure” in Minnesota results in the lender forfeiting the right to pursue the deficiency, so the deficiency is cancelled debt).  Under the Mortgage Forgiveness Debt Relief Act of 2007, in many circumstances the homeowner is not required to pay income tax on the cancelled debt.  However, the Act currently applies only to debt forgiven by the end of the 2012 calendar year.  HOMEOWNERS CONSIDERING SHORT SALE vs FORECLOSURE MUST ACT NOW TO ENSURE THAT THE DEBT FORGIVEN ON THEIR HOME MORTGAGE DOES NOT INCREASE THEIR INCOME TAX.  Considering the state of the market and the time it is taking for some lenders to foreclose, even homeowners that have already missed payments may find that the lender’s delay in foreclosing results in the debt being forgiven in 2013 after the Act expires. Closing a short sale prior to the end of this calendar year results in the debt being canceled in time for the homeowner to take advantage of the Mortgage Forgiveness Debt Relief Act (as long as the canceled mortgage debt was used to purchase or improve the borrower’s primary residence).  Waiting could result in the homeowner incurring income tax on the amount of the deficiency, and many markets are seeing deficiencies over $100,000.  Coupled with the difficulty in discharging tax debt through bankruptcy and the collection tools at the IRS’s disposal, waiting to “see what happens with my foreclosure” could result in a nightmare for the homeowner.

Short Sale vs Foreclosure Realtor & Attorney Information and Help

Bradley Kirscher has attached some information from the IRS website, , on the tax ramifications of cancelled debt and the Mortgage Forgiveness Debt Relief Act of 2007.

For questions about Short Sale vs Foreclosure contact a short sale vs foreclosure realtor or attorney:

Bradley Kirscher

Kirscher Law Firm, PA

phone: (651) 209-8440

fax: (866) 880-6386

With MN Short Sales, Can Cancelled Mortgage Debt Be Taxed?

Without Qualifying for Exemption, Forgiven Mortgage Debt May be Taxed

I always advise you to talk to your account and or attorney as I am not an attorney or account and can not give you legal advice pertaining to MN Short Sales. With hundreds of thousands of homeowners having negotiated loan modifications, MN short sales or been foreclosed upon during the past year, the Internal Revenue Service (IRS) has issued fresh guidance on how to handle canceled mortgage debt during the tax season.  In its latest guidance, the IRS focuses on several key points that MN homeowners  and former owners need to know, especially pertaining to MN short sales. One guideline is just because a lender wrote off a portion of your mortgage debt  doesn’t mean you automatically qualify for special tax treatment during a MN short sale. To the contrary, there are essential tests you need to pass to qualify: The debt your lender canceled during the MN short sale must have been used by you “to buy, build or substantially improve your principal residence.” Anyone who has had mortgage debt cancellation as part of a loan modification or foreclosure should go to and download Form 982 and IRS Publication 4681 for additional filing details. If you think you may potentially have a reason to call due to an MN short sale or foreclosure you can also call 800-TAX-FORM to request copies. Lenders who write off unpaid mortgage balances typically provide borrowers with a year-end IRS form 1099-C cancellation of debt statement, including the amount of the loan forgiven for the MN short sale and the fair market value of the property. If you’ve had mortgage debt canceled but have never received a 1099-C from your lender, get in touch and request it if you want to avoid federal tax hassles. If you need any help with MN short sales we, the Twin City Real Estate Team with Remax Advantage Plus in Shakopee can help. We work with multiple attorneys in the area that offer free consultations to show you your options if you are considering staying in your home, foreclosures or MN short sales.

New Federal Program available for Homeowners on the Brink of Foreclosure

                On the brink of foreclosure?  The federal government has issued a new program that would give up to $50,000 dollars in “interest-free, forgivable loans” secured by liens against the existing home.  The loans would only be available to those in danger of foreclosure due to unemployment, underemployment or medical issues.  For all that apply, only 1,405 Minnesotan homeowners will be chosen from the pool of eligible applicants.  Applications will only be accepted through July 22, 2011.

                This program is supposed to reduce the number of foreclosures in the state by 5% or more, which is a step in the right direction considering the 25,673 foreclosures last year in Minnesota.  This will help current Minnesotans in foreclosure, but it is too late for people who have had difficulties from 2007-2010.  The program was created by HUD, which allocated over $50 million to use in Minnesota over the next two years.

                The main purpose of this new program is to help homeowners weather the downturn in the economy, but the program does reserve the right to cut off funding if a recipient’s income returns to original levels made two years prior.  Loans given to property owners will be forgiven by 20% every year, making the loans completely curable in five years.  However, government has set forth certain qualifiers to become eligible.  These qualifiers include:

  • Being unable to make mortgage payments for the past three months or longer.
  • Living in the house.
  • Have faced an income decline of at least 15% because of unemployment, underemployment, or medical issues.
  • Households of four within the Twin Cities must make less than $100,800 annually.

Once the July 22 application deadline is reached, applicants will undergo a more thorough screening process to become eligible for one of the 1,405 chances to receive a loan.  Given the unique nature of this program, many believe it is a one-time opportunity, so make sure to apply if you are an eligible homeowner!

If you would like to discuss your options, Tom Scott of Remax Advantage Plus and the Twin City Real Estate Team work with local attornys that would offer a free consultation and legal advice. Depending on your situation, the attorney may choose to work with you at no additional cost as they are also compensated by the bank during a short sale if you elect that as an option.

You can reach us at 612-384-2178 or

Shakopee MN MLS Short Sales Are Selling, BUT…..

With all the talk about short sale homes in Shakopee many buyers are wondering what is going onin the current market place. I took a look at only the Shakopee short sales and what their numbers looked like so far this year accornding to the MN MLS. For those looking at the MLS online website, is NOT the MLS, iot simply is a company just like Edina Realty, Remax or Coldwell Banker however they were grandfathered in to using the term MLS in their name.


Anyway accornding to the MN MLS there are a total of 286 homes in Shakopee listed, of those 286 homes listed 86 are Shakopee short sales. One common way homes are listed in the MN MLS, but not on other broker sites are homes that are consider “sold subject to third party approval” whihc means they are a short sale home waiting for the bank to say yes or no. The seller likely has signed the offer as they still own the home, but need approval from the bank. There are 40 homes in Shakopee currently listed as active that have this classification….annoying, I know. There are only 10 pending Shakopee short sale listings that are waiting to close and have approval from the bank according to the MN MLS. It seems half or 2 out of every 3 listings is a short sale which i found this statitic interesting: from January 1, 2011 only 26 Shakopee short sales have closed! Only 26 home in 6 months! With all the short sale listing out in the marketplace these banks need get their acts together.


I think the pricing of Shakopee short sales is what is contributiong to lower prices for the average homeowner. So many buyer avoid short sale in Shakopee because they can not wait the 3-9 month time frame many short sale homes require. Oddly enough I looked a one niche in Shakopee that has a higher sales price and lower days on market of short sale listings than traditional sales. Shakopee townhome short sales had an average sales price this year of $129,033  with 143 days on the market with only 12 homes closing since 1/1/11. 94 foreclosure and tradtional sales netted $109,531 with 155 days on the market. I do think the foreclosures contributed to bringing this price down, but I can’t explain the shorter time frame, that baffles me. Looking at single family homes brings numbers you would expect.  The short sale listings in Shakopee averaged a sales price of $183,511 with 261 average days on market where the traditional sales averaged a sales price of $221,627 and only 125 days on the market.


If you are looking for a Shakopee Realtor or real estate agent to help represent you in buying a home or selling your home make sure they have the experience required to help. Having a knowledgeable Shakopee realtor who know the ins and outs of the bank short sale process can be beneifical even when purchase as they can know the right questions to ask to make sure eve

Shakopee Short Sales Changes

As many of you have likely heard, there is widespread concerns in the lending community that title may not be clear on closings during the redemption period.  This is causing some lenders to not approve buyer’s mortgage for properties closing in the redemption period for short sale homes.  The concerns of FNMA, Freddie Mac, and HUD are that seller may still have redemption rights through the end of the redemption period regardless of the sale.  According to a law firm in Maple Grove, this does not apply in MN due to the fact that seller must obtain certificate of redemption (done by seller’s title company) in order to close during the redemption period.  Therefore, in MN, because seller has already “redeemed” as a result of the closed sale, they no longer have redemption rights and the title is clear.

Many mortgage brokerages have their attorneys communicating with FNMA, Freddie, and HUD right now clarifying the redemption issue according to MN law.  However, in the meantime, some lenders are refusing to fund buyer’s mortgages in this situation.  Wells Fargo Home Mortgage is one that has taken the lead on not funding these mortgages as corporate policy and others are following suit. Many other may follow suit so make sure you address this if there is a concern.

Therefore, if any of your short sales are in the redemption period, Real Estate agents or Realtors MUST now contact the buyer’s loan officer, inform them that this property is in the redemption period and ask them to verify that the buyer’s approval letter is still sound and that their company can fund the buyer’s mortgage when short sale approval is received.  If the loan officer cannot confirm that, require that they consult their superiors or the mortgage underwriter for confirmation.

If their answer is that they cannot, the buyer will need to either quickly find a mortgage company who will fund the new mortgage or sign a cancellation of the purchase agreement.

The law firm in Maple Grove  is in the process of gathering contact information for lenders that still have investors that will take these loans.  We will have a list available for you soon.   If your own favorite loan officer can still fund these loans, forward their contact information to me and I will add them to the list.  If one of your current buyers can no longer obtain the mortgage from their current lender, you can then provide them with referrals to lenders who can perform.

For short sale redemption period listings if you are selling your home without current offers, make sure potential buyer’s loan officer is aware that the property is in redemption period and that their approval letter is valid in that circumstance. For the time being and until this is straightened out with FNMA, Freddie, and HUD, your disclosure of redemption period issues is critical to obtaining the right buyer and not costing your seller unnecessary foreclosure by working with buyer that cannot get financing from their preferred lender.  The law firm will be discussing this issue with sellers as well and informing them of their rights to postpone the sheriff sale themselves according to MN statute if seller’s lender will not postpone the sheriff sale for them.

Shakopee Short Sale Market Update

I just baffled myself this afternoon when putting together my market update of the Shakopee short sale homes currently on the market. Seriously I was shocked when I learned of the 305 homes currently shown as active on the market 85 of those homes are listed as a Shakopee short sale. Short sales in Shakopee are becoming more prevalent from hardships such as job loss, divorce and too much debt. We are definately seeing more and more owners qualifying for a short sale.  Outside of those home listed in Shakopee as a short sale 5 other homes did not disclosure their status and 50 more homes were listed as Shakopee Foreclosures. With that said, Shakopee short sales and foreclosure homes as of 2/24/11 dictate a whopping 44% of all homes on the market!

Now 44% of all homes on the market being Shakopee foreclosure and short sale listings may seem high, but that number realistically is probably even a low percentage estimate. I have seen many cases where Shakopee real estate agents do not even disclose if the home is a short sale or foreclosure. When a home in Shakopee is listed an agent has three choices when filling out the Minnesota MLS input sheet. They can answer YES, NO or NOT DISCLOSED to two questions 1) Is this home a potential short sale? and 2) Is this home lender owned?

I can see Realtors reasons for not disclosing the short sale status of a home, but Shakopee foreclosures are pretty obvious, is your seller a bank? If yes, well then it’s lender owned, answer the question correctly please Shakopee Realtors! Now many Shakopee short sales listed might not be listed as a short sale because they are not short sales, yet. Sure you may have a home priced at $224,900 that is not a short sale, but at $220,000 will it be one? How about $210,000? I commonly see many overpriced homes in Shakopee that have NO CHANCE of selling. The Shakopee townhome market is notorious with many homes cancelling in frustration or expiring their listing contracts. I just saw a Shakopee townhome listed for close to $150,00 when the previous week I showed two homes in the SAME DEVELOPMENT for $98,000 and $109,900 respectively. Now sure the home may not be a labeled as a short sale in Shakopee, but will it sell? Doubtful. Another reason I hear Shakopee Realtors not wanting to label  homes as a short sale is because they feel no one with show the listing because buyers don’t want to wait to hear back from the bank. I find that discouraging as an agent and very frustrating for a buyer because we take the time out of our day to show the home it is a complete waste of time. Some buyers may have ample time to look for a short sale home, but others have a strick timeline and need to purchase with 45 days or less. That does not leave a lot of time to search for a Shakopee Home.


Homes in Shakopee that are currently sold and waiting to close escrow represent an even higher percentage of short sale and foreclosure homes. Of the 63 homes pending in Shakopee, 27 homes are forclosures and 7 are short sale listings representing close to 54% of the total homes pending. Again this does not include the nondisclosure I previously spoke about. Being a curious Realtor, I decided to look at the homes pending being there are not nearly the numbers to go through like active homes on the market in Shakopee. Of the 29 homes not tagged by Realtors as a Shakopee short sale or foreclosure, 5 showed in either the exclusive agent remarks or tax records as being bank owned. Another interesting fact that jumped out at me was 7 of the 29 homes in Shakopee pending were new construction. Again out of curiosity I went back and reviewed active homes listing in Shakopee to find of the 170 homes not tagged as shorts sale or foreclosures 31 of those were new construction homes in Shakopee.