Michael Roberts' Blog -San Jose Homes, Real Estate and Houses for Sale

Sad but True (true story)    You might find the ending a happy one.

Terry (not her real name) called our office in tears.  Her home was going on the county steps, the following day, to be sold to the highest bidder in a trustee sale.

She did have a little cash in the house in the form of equity.  Not Fair!

Not a fun call by any measure.    After living there for 25 years and raising her family, the lender was foreclosing.   Not a rare story…I know.

This put the whole office in a buzz to solve Terry’s problem.  I called my cash investors, others called attorneys.    My ‘ace in the hole’ investor was in Europe the other was unable to put it all together in such a short time.

It was looking dire by the end of the day.

The only solution turned out to be bankruptcy…according to legal council!  That’s not what this story is about though.  This was the only way to halt the foreclosure and allow Terry some time to get a grip.  After all, she raised her kids in this home, had no job prospects and was on the verge of a serious breakdown.

She needed to hit pause.

Terry was not devoid of responsibility and I won’t defend her position.   She just needed help.

So, the only alternative was bankruptcy.  The search began for an attorney to embrace Terry and get the ball rolling.   This was done in an attempt stop the snowballing effect!  One found,  we began to focus on solutions.

Move ahead a few days….

Terry hired us to meet the required ‘sale of the home‘ that the Trustee ordered.   This is where it went haywire AGAIN!  The Trustee said he had the legal authority to choose and hire a Realtor.  Well, his Realtor was preparing to sell the home for a ridiculously low price (about $100K low).   Leaving Terry with nothing!  The Trustee’s agent claimed his price was based on his ‘expert opinion‘, the current market and the home’s condition.

Not so fast mister!  We appealed to the Judge that this agent was out of his gourd.  Providing some strong fact based data, we were granted the job to sell Terry’s home.  Sorry Mr. Trustee‘s agent (and Mr. Trustee)!

The home was in bad shape, for sure.  The kitchen cabinet doors were falling off, the Master Bath was in need of a Hazardous Materials Team and the yard more resembled a Jungle than a forest meadow with curb appeal.

We jumped in with both feet.  Providing labor, guidance, advice and, in some cases, a late night shoulder for Terry to cry on.

The home sold in 10 days.  The offer was great and provided Terry with $90,000.00 dollars after expenses.

We make money doing this, right?  In this case there was little money left over after all the hours and effort.   It wasn’t what I earned that was rewarding, it’s what I learned…..

I work with the best group of ‘people’ in the world!  They’re not your typical, robotic, scripted salespeople who only look out for themselves…they’re real people – that care!

I almost  forgot the best part.    Once Terry began to see the light at the end of the tunnel she gained enough confidence and piece of mind to secure a great job!

Terry has a bright future on the horizon!

note:  this solution is not for everyone there are short sale and other options to consider

This Video (below) is proof many homeowners in all areas are at risk of scammers, including San Jose homeowners.  When you ask for help selling your San Jose House, remember, if it sounds too good to be true..Then it probably is!

There are no ‘Magic Wand’ solutions if you find yourself against the wall with your mortgage.  Using common sense and a applying pragmatic approach is still the best and most effective way to determine whether you should sell your Los Gatos home or buy a smaller more affordable house in San Jose.

A good rule of thumb is to obtain 3 professional opinions and weigh them one against the other.   The first solution may not be the only solution and… Watch This Video!

You may be thinking of selling your home by downsizing or moving closer to family, well Proposition 60 and Proposition 90 have to be considered too.  Ask your CPA.

California property owners who are over 55 years of age may qualify to transfer the assessed value of their principal residence home sold in one County to their new principal residence they buy in another County.

A copy of the tax bill from the other county and a copy of the applicant’s birth certificate will be required by the County Assessor to be included in the application.

This website provides property tax answers for property owners who are selling and plan to move.

A Copy of the grant deed for the new purchase along with a copy of the closing statement of both the sale and purchase are also required.

Here is a short summary of the eligibility requirements…

• Either the seller, or a spouse residing with the seller, must be Read the rest of this entry »

Staging – 5 Easy Ways to Sell  Your  Home For More Money

Thinking about putting your home on the market this spring?  Are you going to be a home seller or just another host of a Los Gatos ‘home for sale’?  It’s never too early to start planning for your upcoming  home for sale.  And there’s a lot to think about.  Perhaps one of the most crucial pieces to finding that perfect buyer is staging your home for sale properly.  And that means…..de-cluttering.

Having a lot of clutter lying around the house tends to tell prospective buyers that “this house is your place, not theirs”…..never a good message to send.  Removing clutter will not only make your home appear clean, well maintained, and move-in ready, but will also give you the added benefit of helping you relax after a stressful day of work.  Here are seven tips on how to de-clutter your home.

1. Prepare for a de-cluttering marathon.  This is a big, sometimes emotionally draining task and is best tackled in small bites.  You’ll want to gather some de-cluttering tools before you begin.   Garbage bags, boxes, and dusting cloths can be most helpful.  If you find yourself having trouble staying organized throughout the process you may want to start three piles labeled “throw out”, “put away”, and “charity.”  This approach will keep you from throwing out things you want to save, and saving things you want to throw out.

2. Throw out old, unused stuff that tends to find itself on countertops and shelving such as junk mail, bills, receipts, etc….  Outdated paperwork can also find its way into drawers and closets.  Potential buyers want to see San Jose homes for sale that have lots of counter space, not your mail or last Sunday’s paper.  So don’t let the junk mail keep you from receiving an offer.

3. Sort through closets to find extra storage space.  If your closets are overflowing with “stuff”, it may be time to do some closet purging.  Potential buyers love to see storage space when they open closets.  If the buyer’s eye goes directly to the boxes, cloths and clutter, they won’t notice all the great storage space you have.  Overflowing closets also have the habit of telling buyers that your home doesn’t have enough storage.  But not to worry, there is an easy fix to the full closet…..  If you haven’t used something in a year, throw it out.

4. Clean off book shelves to give your room an open, lighter feeling.  Again, buyers are looking for a Los Gatos home that has lots of storage space and if your shelving is packed with stuff, buyers will assume your home doesn’t have enough storage.  Maintaining well organized, half-full book shelves also gives the appearance of space and can make a room feel larger than it actually is.  And don’t forget to pack up the majority of your personal pictures when staging a home for sale.  You want potential buyers to see themselves in your home.
5. Maintaining clear kitchen countertops has the potential to visually double the size of your kitchen.  Always a good thing.  The golden rule for countertops is to have no more than two appliances sitting on the counter.  Los Gatos homes for sale that feature vast expanses of countertop space will have a competitive advantage in today’s buyer’s market.  And it would be a shame to miss out on an offer because kitchen clutter overshadowed your fabulous countertop space.

Then you are on your way to the 26  seller tips.

And last, but not least, celebrate!  If you’ve managed to de-clutter your entire home, then you deserve a pat on the back.  You’ve just completed the most inexpensive remodel of your home possible.  Potential buyers will see the value in your work and you will, quite possibly, be rewarded with a higher offer!

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Do you own a HUD-FHA financed home, and need to do a Short Sale? Here is a summary of the requirements to perform an FHA-insured HUD shortsale or “Pre-Foreclosure” Sale:

1. You must be delinquent 31 days or more delinquent at the time of sale.
2. You must list the property with an un-related Licensed Real Estate Broker
3. You must actively market the property for four months (up to six).For the first 30 days of marketing, the short sale lender Read the rest of this entry »

Q:  Short Sale definition.  What is a Short Sale?

Answer: 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.

Answer: If you have a heavy asset portfolio that would cover the amount above the home’s value then the answer is likely to be no.  Each case is different and would be better answered after a professional review to help learn how to short sale.

Answer:  There is a lot of misinformation on the internet about this. A short sale is recorded on your credit report as “debt settled for less than the amount owed”.  In plain English, this will result in a relatively minor hit to your credit compared to a foreclosure or late payments on your mortgage. A short sale will affect everyone’s credit differently. The more established your credit, the less of an impact it will have on your score.

If you stop making your mortgage payments for 4 months, regardless of whether you do a short sale or not, 4 months of missed mortgage payments will have a significant negative impact on your credit.  A short sale will drop your credit 100 points or more.

If you are already behind on your payments, you have already incurred the majority of the hit that a short sale will have on your credit.  Moving forward with a successful short sale will insure that your debt is settled with your lender.

However, if you are current on your payments and can stay current throughout the short sale process, you will save your credit to a large extent.

Your neighbor Harry, the one that never shaves and causes you to wonder if he knows that there are still department stores that sell pants that fit, you know who I am talking about.  Harry will be the first one at your door telling you how much he is going to miss you when you move away.

Away.  From Harry.

Maybe you should buy a home in Los Gatos or West San jose.  is that far enough?   Cambrian sounds pretty good.   You need to sell your house first though.

You have decided you are going to save money and do it yourself.    More money for you will help you  get further from Harry.  So, where do you start?

Figuring out what your house is worth is probably what you are thinking.   Not exactly… and…. yes, it is.   Better be  quick.  Harry is getting really Buddy-Buddy since he learned you are selling your house.   Saving that 6% Realtor fee should help get it done faster.

Think about it.   You have more room to negotiate! Read the rest of this entry »