Short Sales are proving to become the market leader. Many homeowners are confronted with the fact their home is worth less than their mortgage. Most investors who are confronted with non-performing assets…cut their losses and sell them.
In Real Estate we call it a Short Sale. Alternatives are bankruptcy, foreclosure or granting a deed in lieu of foreclosure. I prefer a mortgage short sale.
Does your home resemble a non-performing asset?
The Basic steps you will need to accomplish The Short Sale process Start here. Execute these simple steps and successful negotiations will follow.
First what is a short sale? Here is the short sale definition:
In ”short”, a shortsale is when the lender agrees to settle the debt owed on the property for less than the full amount of the debt. In most cases “Settled” means the lender writes off the debt. You usually will receive a 1099 after a short sale for the amount of debt forgiven. The bank is agreeing not to go after you for the money they lost by filing a deficiency judgment in the future. The exception is the HELOC loan where they reserve the right to file a default judgment.
Step 1
Contact your mortgage lender. Don’t just call or email customer service or the “loan work out” department. You need to speak with the manager of the problem loan department or another individual who has the authority to approve a short sale request.
While mortgage lenders can be sympathetic to these problems, they are never Read the rest of this entry »
You can now do a short sale on your home and buy a new home without waiting three years. Prior to the new guidelines you were unable to buy a home with a FHA insured mortgage following a short sale of your primary residence. download FHA Guideline PDF
If you were current when your short sale is made you have every chance of buying a new home according to the new guidelines from the Department of Housing
from FHA guideline-
Borrowers are considered eligible for a new FHA-insured mortgage if, from the date of loan application for the new mortgage
- All mortgage payments due on the prior mortgage were made within the month due for the 12 month period preceding the short sale, and
- All installment debt payments for the same time period were also made within the month due.
Lenders are not allowed to approve a new home purchase if… Read the rest of this entry »
Yes he did. Speaking to associates at a Home Depot, last Friday, President Obama was touting his new ‘Energy Initiative’ and used the word. The worst part he was talking about insulation.
I don’t know how sexy insulation is, but with tax season coming it is a very good time to plan ahead for spring. If you do it right you could get a few ’sexy’ bucks from Uncle Sam.
If you are planning to do a remodel project take time to plan. I know, how else would you do it? I am talking about planning what materials and products you and your contractor are going to use. Don’t forget to get a permit if the cost of improvement exceeds $1000.
The San Jose Planning Dept. has reduced staff, so start the process early.
Read the rest of this entry »
This must be a symptom of low supply and the fear the bottom has passed.
The median price of a home sold in the county rose 9.9 percent compared to a year ago to $494,400 in November, according to MDA Dataquick, the second straight month of year-to-year increases.
The number of homes sold also rose 47.2 percent to 1,649 in Santa Clara County.
“The latest stats show just how much the Bay Area market has changed in a year,” said John Walsh, MDA DataQuick president.
The question I hear most is…”Has the market bottomed out?”
If this price trend continues for another quarter I will answer Read the rest of this entry »
Selling your home because it’s a non performing asset?
Zillow is here to help.
I often compare the short selling of homes to the selling of stocks that are not delivering a fair dividend. How does that cause a rental market you ask?
This is what’s happening…
The surge of interest in rental properties is due to the decline in housing values. This is causing so many homeowners to walk away or to attempt a short sale of their homes. The Los Gatos Rental market is a glaring example. Have you tried to find a rental here? Those upside down sellers need housing and are searching for rentals in large numbers
It is fair to say Zillow has found a new product to peddle.
We can only hope that the lease prices are more accurate than the terrible performance of their “Zestimate” which, arguably, has not shown to be very accurate.
Their rental zite (yes zite as a play on their ‘z’ nomenclature) provides mapping too. If you have any experience with the search engine or results I am interested in hearing your opinion.
The spanking Fannie Mae is suffering has become intolerable.
The rumor several banks have agreed to streamline short sales is true and will certainly make the spanking a light one. How do I know? When I inquired why my calls were not being returned, for a few days in October, contacts at BofA told me they were being trained for a new program to expedite… Read the rest of this entry »
Nearly everyone wants to do this so, Why don’t you?
The purchase of a fixer-upper house is often a catch-22 situation, because the bank won’t lend the money to buy the house until the repairs are complete, and the repairs can’t be done until the house has been purchased. Fixing up your new house is a costly idea in Los Gatos, San Jose and the whole Bay Area, really.
HUD’s 203(k) program can help you overcome this cost obstacle by enabling you to purchase or refinance a property plus the cost of making the repairs and improvements in one mortgage.
Dian Hymer of Inman News suggests “design your offer with a 60 day close and a 45 day finance contingency.”
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The following homes in Los Gatos reported as closed (sold) this past week. Congratulations to the new homeowners and the community they will certainly enjoy!
15400 VIA PALOMINO Single Family 4 bed(s) /3|1 bath(s)23,482 sq ft Monte Sereno $2,395,000
16242 AZALEA WY Single Family 3 bed(s) /2|0 bath(s) 8,000 sq ft Los Gatos $1,229,000
102 HOLLYCREST DR Single Family 3 bed(s) /2|0 bath(s) 7,070 sq ft Los Gatos $799,000
14225 LORA DR #102 Condominium 2 bed(s) /1|0 bath(s) 2,242 sq ft Los Gatos $345,000
These homes all sold for below their asking price from High reduction of -9% for Lora Drive and low price reduction of 3% for Azelea Way. Home sellers and agents in Los Gatos and surrounding areas should take heed of the substantial reductions made this week. The days on market or CDOM are more relevant factors in pricing homes today than we have seen in the past few years.
This article (here) is evidence our market is doing better than average.
Guest Review by Tara-Nicholle Nelson 
A) We all know that pricing is the most important part of marketing your home for sale.