Check out THIS article from today’s OC Register. It’s pretty interesting & I agree with quite a bit of it as it coincides with many conversations I’ve had w/asset managers (the people at mortgage companies who handle all the foreclosed properties).  The article goes onto  detail a $3.8 million dollar foreclosure that it sitting empty (if you’d like to purchase it, give me a call & I’ll schedule a showing) & also says that SHORT SALES were up 34% in January.

What do you think? Know anyone who’s way upside down in their home (owe more than their home is worth) or who’s having trouble making their mortgages? If you do, head on over to my contact page & get in touch with me. I can likely help them & help them avoid foreclosure & protect their credit. Foreclosure & bankruptcy aren’t their only options.

Take a look at THIS article from the LA Times. It’s interesting, but not at all surprising as it details how borrowers with mortgages from Chase Bank (the bank that has the 3rd largest amount of loans that may be eligible for government loan modifications) aren’t getting permanent loan modifications.

The article goes onto say that a Chase spokesman said Chase will attempt to reach a borrower with up to 36 phone calls, 15 mailings, & 2 knocks on the door to get the documentation they need in order to process a loan mod. I can tell you from the experience of many of my clients that this is BS. More often than not, my clients who have attempted a loan mod will call the bank & get nowhere with them for months on end.

One real life example I have of Chase’s inefficiency is a current client of mine who actually attempted a loan mod with Chase & got denied in writing. He then contacted me to cut his losses & short sale his home. Chase then required my client to send in a request in writing indicating that he no longer wanted a loan mod & wanted to complete a short sale. Wait a second…didn’t they DENY him a modification & now they want him to tell them he doesn’t want a loan mod?! It makes no sense whatsoever. (By the way, even though my client got denied for a loan modification, we were able to get a short sale approved. If you know someone who’s confused by the mess that is going on with loan mods, upside down mortgages, & foreclosures, have them give me a call to discuss their options).

If you know someone who has a loan modification that’s going nowhere or they’re getting buried underneath a huge mortgage, have them give me a call or pass my name/number along. I’d be happy to have a confidential consultation with them to review their options & to see if I would be able to help them in any way.

By the way, are we connected on LinkedIn, Facebook, and Twitter? If not, click the links to the left & let’s connect. (Note that my “Twitter Feed” is still under construction – be sure to begin following me so that once it’s “live”, you’ll be good to go).

What exactly is a short sale & how can they help avoid foreclosures?

What is a Short Sale?

A Short Sale is the sale of a home when sales proceeds are not sufficient to pay off the existing loan(s) but the lender(s) accepts a discounted payoff to fully satisfy the loan. A lender would usually rather negotiate a settlement today with a Short Sale than be forced to incur the expense of a foreclosure later. Consider this: the lender wants to limit their losses in the future just as badly as you do. At the same time, the existing lender pays for all sales fees. This includes sales costs, commissions, escrow, title and any repair costs. The loan shows as “paid” with a zero balance on your credit and you avoid foreclosure.

Why would a lender accept a Short Sale over foreclosure?

• With an uncertain housing market, it is often in the financial interests of a lender to accept a negotiated settlement rather than incur the costs of a prolonged foreclosure process. And if a lender does repossess a property, they could continue to incur costs for months in order to maintain the property while they try and sell it. A short sale can be a practical and cost saving alternative for all parties involved.

Is a Short Sale right for me?

• If you add up your total monthly expenses, including your mortgage, property tax payments, insurance, car payments, utilities and food and compare that to your take-home income, how much longer can you afford to keep up with your payments? If you have an adjustable rate, and the payment is going up, how long can you afford that? Is it worth prolonging your current financial situation? Especially if home values in your area continue to decline. If you are faced with economic hardship, a Short Sale can be a financial life-saver. You may need to ask yourself, is it worth it to continue to fall deeper into debt, falling further and further behind with little hope of catching up? We are  Short Sale specialists, we can help determine if a short sale may be a viable option for you and your family.

What is a financial hardship?

• A hardship is a situation that has a life changing effect for the borrower that results in an in-ability to pay the mortgage debt in either, short or long term. Some examples are: * Separation or Divorce * Medical Bills * Inability to work due to health reasons * Death of Spouse * Job Relocation * Reduced Income or Unemployment * Business Failure * Adjustment in mortgage payment or unforeseen increase in living expenses. There are additional hardships, as your Short Sale Realtor I can help you determine if you have a valid hardship.

I am current on my mortgage, will my lender consider a Short Sale?

• It’s very likely that your lender will consider it. Many lenders will accept a Short Sale file for approval on loans that are not delinquent. Other lenders will not accept the file until the loan is delinquent. We can put your Short Sale file together within a couple of days and submit it for approval. (Remember, there is no charge for this). That is the best way to determine if your lender will accept a file for approval on a loan that is current.

How much would it cost me to sell my home in a Short Sale?

• Nothing! All fees and commissions are assumed by your lender? NOT YOU. Your contract will specifically read: “Seller’s agreement to sell is subject to approval by existing lender of a Short Sale at no cost to Seller.”

If I have two loans, can I still do a Short Sale?

• Yes. As your short sale agent, I will work with both lenders to negotiate a Short Sale transaction. Even if the value of your home is less than the value of the first loan, we can normally get both lenders to cooperate.

What about my credit? Won’t a Short Sale ruin my credit?

• Not really – in fact, in many cases, you can re-enter the housing market in as little as 0 – 24 months. A short sale usually does not reflect poorly on a credit report. And it cannot begin to compare to the damage your credit will incur if you are ultimately forced into foreclosure. With a foreclosure, you can expect to have severely damgaged credit for atleast 7 years. With a short sale, you can expect to resume normal borrowing (for mortgages, car loans and credit cards) within a very short period of time. Remember, with a Short Sale, you walk away with your mortgage debt zeroed out. With a foreclosure, the collection stays on your credit indefinitely!

My property needs a lot of repair work. Can I still do a Short Sale?

• Yes. A lender is often less likely to want to repossess (foreclose on) a home that needs work? It would make it harder for them to sell it later. Lenders are not in the “home repair” business. They do not want the responsibility. A home in rough shape may serve as an incentive for a lender to do a Short Sale.

Do I have to deal with the bank throughout the Short Sale process?

• No. As your short sale agent, I take on the task of communicating and negotiating with your lender relieving you of that stress and burden.

Will my short sale negatively affect my neighborhood home values?

• A successful Short Sale will result in a higher sales price and net proceeds available for your lender (vs. a foreclosure or “REO”) thereby supporting higher neighborhood values.

Can I simply deed my property to someone else and avoid foreclosure that way?

• No. Be wary! If you fall behind on your mortgage payments you will quickly find yourself drowning in mail and phone calls from different people promising to “save” you. But deeding your property to someone else without first paying off the loan(s) is almost always a bad idea. Even if you deed the property to someone else you are still responsible for the loan payments. If the loan payments are not made, it is your credit that is affected (regardless of who holds the deed). In other words, you lose control of the property and can still be foreclosed on. What ever you decide, do NOT deed your property to someone without first paying off the loan unless you have consulted with your OWN personal attorney.

What is a mortgage deficiency?

• A mortgage deficiency is the difference between the loan amount owed by the borrower and the purchase price of the short sale paid to the lender. In some states and some instances homeowners are protected and lenders can’t pursue them for the deficiency. However, in some cases a short sale can leave you owing a substantial debt, which can be collected by garnishing your wages or other aggressive collection actions. As your short sale agent, we will work hard to get your deficiency waved, if applicable, as a condition of the short sale.

What are the tax considerations of a short sale?

• On December 20, 2007 President Bush Signed H.R. 3648, The Mortgage Forgiveness Debt Relief Act of 2007. The law applies to primary residences only and takes effect from January 1, 2007 through December 31, 2012. It provides relief to home owners by shielding them from the additional burden of potential federal income tax on any amount written off or forgiven by their lender in case of foreclosure or short sale. Consultation with an experienced tax professional to see how the law applies in your circumstance is advisable.

Can any agent do a short sale?

• Not all agents can do a short sale and not all people qualify for our help. We are here for you if your situation meets the following criteria: 1. You have a valid hardship 2. You have little or no equity in your home 3. Your are unable (or soon will be unable) to pay your bills on time 4. You want to work with a distressed property expert.

How can I get started on a Short Sale?

• Very easily. To be pre-qualified, just give me a call, send an email or fill out our Contact Form and I will personally review your situation and options. There is no charge and no obligation for this private consultation.

Wow! HERE’S the article from the OC Register that details that 29,000 real estate agents in California have quit. Beginning this year, there is 1 real estate licensee for every 38 households in California. The decline really shows that when the market’s hot, people want to be in Real Estate, but when “it” hits the fan, people bail because the business begins to grind them.

Just so you know, I’m not going anywhere – If you have any real estate or mortgage needs, give me a call – head on over to my CONTACT PAGE & get in touch with me there. Likewise, if you know anyone who may need my services – whether they may be in trouble with their home, have questions about how to get top dollar in this market, need to refinance, or they’re looking to purchase a home, referrals are greatly appreciated & I’d be happy to help in whatever way I can.

Also, are we connected on LinkedIn & Facebook? If not, click the links to the left to get connected with me.

HERE is a fairly interesting article from the Wall Street Journal regarding the housing recovery (supposedly underway). They do mention California towards the end of the article & point out that we (those of us in California) have been experiencing a 5 year low in terms of housing inventory. Sounds about right – and if you’ve put an offer on a home lately, you’ve likely experienced multiple offers which is 1 sign of a tight inventory. Don’t forget, if you’d like to discuss your local market or even discuss your home selling/home purchasing options, GET IN TOUCH with me today.

Pretty interesting, but not at all surprising – take a look at THIS ARTICLE from the Washington Post where it details how existing home sales plummeted last month. It may seem hard to make sense out of the current real estate market – especially considering that Existing Home sales were UP just a few months ago. If you’re wondering “which way is up”, CLICK HERE to get in touch with me.

By the way, are we connected on Facebook, LinkedIn, and Twitter? If not, click the links to the left & let’s get connected.

Take a look @ THIS article from The Wall Street Journal about a home the Papa John’s Pizza founder bought. If you want to buy YOUR dream home, CLICK HERE to email or call me & get in touch. There are a lot of homes available & it’s a great time to buy! Don’t forget to ask me about the mortgage rates – as of today, they’re actually pretty darn good.

Hi Everyone, I’m currently revamping my website & will be back soon! Be sure to check back for the new site design. In the meantime, if I can help you with any of your real estate needs, head on over to my contact page & get in touch with me.

Thanks for stopping by,

Scott