Some lucky folks are going to be new homeowners in Los Gatos!

Great prices and locations are just the beginning.   17250 Pine St.Los Gatos is a short sale,  I know,  Yuk.  Not really!  Look what the fundamentals look like…

Schools: Great!  Location: Great!  Price: Amazing!

Use ‘the proper strategy and be prepared for a few bumps’ is the bargain hunters code. One may be a foreclosure one a short sale, however what would expect a bargain to look like?

Los Gatos is a tough area to find affordable homes and these 3 are a step in the right direction. Preparing for an opportunity equates to good luck, right?

The 2nd homes for sale in Los Gatos is 15175 El Gato and the 3rd house for sale in Los Gatos that I see as a great first time buyer pick is 228 Calle Marquerita.

Actually, rollercoasters scare the dickens out of me.  I like the idea of knowing what the outcome of something is going to be.  This is where buying a shortsale and riding a rollercoaster  share a similarity.  You never know what’s next!

They are both exciting and both can be frightening.

Changing the course of a rollercoaster, to reduce the scare factor, is impossible, however  you can make that rollercoaster short sale purchase like a ride on the Teacups at Disneyland.

The Teacup ride strategy to short sales should go like this….

• Screen properties for their potential to gain a short sale approval.
• Commit to the process.
• Prepare for a flexibility.
• Hire a Realtor proficient in Distressed Properties and Short Sales.

I think I like tea.

• Screening the properties, for their ability to gain a short sale approval, is a bit like having to do the maintenance inspection to be certain the rollercoaster is safe before you squeeze yourself into the seat.

Just last week I showed a very nice short sale house and the listing agent said they had a 3rd party negotiator. I thought.. great!  Only to learn the agent would not disclose the 3rd party.   Big red flag!   Obviously a ruse that would come back and make the buyer spill their tea.

You need to learn how many banks are holding the mortgage lien(s), which bank(s) and how far upside down are the current owners.   What is the mindset of the seller… Angry, Relieved?   Using these factors  an equation can be arrived at to grade short sales.

Committing to the process is as simple as buckling into the seat.  Once you have screened out the bad properties be prepared for surprises and commit to finding resolutions and making compromises .   Be certain this is what you want to do before you move forward and commit yourself  to the entire process.

Preparing for flexibility simply means you should not set a date certain to move from your current residence.  This is especially important if you are employing a moving company.

You wouldn’t plan to eat lunch at 12 noon and then ride a rollercoaster.  You would leave your lunch plans flexible to prevent a big mess.  Be flexible.

Select a range of dates for your move and make allowances with your landlord or your current home sale.  This will save a ton of stress and related problems.

If you have hired a competent lender you will have additional flexibility in your loan terms, loan lock and room to increase your approved loan amount should it become necessary to pay unforeseen expenses.  A huge problem with short sales in San Jose.

Hiring a multiple listing Realtor, who has extensive short sale experience, is what most buyers fail to do and learn of their error far too late to overcome their mistake.  Kind of  like getting on a broken rollercoaster.

If your short sale of choice is listed with an inexperienced agent,  it will make little difference how good your Realtor is.  This is a huge factor in any short sale equation.

Your Realtor should also have experience in working with a number of different banks,  have proven skill overcoming pitfalls and implementing solutions for those that are unexpected.    Successful short sale listing and selling experience is an absolute must!   If one  says to you  ” I can do it,  it’s easy.”…

….Find another amusement park.

Knowing what documentation to ask of the listing agent, to give you confidence you have committed to the right home purchase, and providing you with a  clear understanding of the progress of the sale, is an important part of your Realtor’s job.

Without this level of  experience and clear communication you will feel like you are on a non-stop rollercoaster.

So what will it be, an exciting ride on the Teacups or a risky rollercoaster ride?

Here is a long list of short sale FAQs and tips to hire a multiple listing realtor.

You’ll find the following Los Gatos property a great value.   An affordable short sale house in Los Gatos….

17250 Pine St, Los Gatos

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Date Range 11/1/2009 – 11/23/2009

Homes for sale  260

New Listings  66

Pending sales  55

Closed Sales This Week  2

Congratulations to 2  the new Buyers and Sellers that closed escrow this last week.

16345 LOS GATOS BL #49,
$510,000 Beds: 2 bed(s) Baths: 2 (1/1) bath(s) 1017 sq ft

115 WOOD RD, Los Gatos 95030
$2,900,000 Beds: 5 bed(s) Baths: 5 (4/1) bath(s)  4386 sq ft

A short sale transaction tends to leave everyone a little queasy.   No matter how well it is executed by your attorney or Realtor it all started with a little cold.   You have already taken a big dose of medicine just to come to terms with the idea of selling your home.  Now you need a good prescription following a better diagnosis.

After hiring a Realtor to make a diagnosis, be sure there are going to be relapses…lots of little relapses.  Lately, I have seen some that must have felt a little like the H1N1 virus.  The common relapses are multiple lenders, the HELOC problem, the dreaded HOA variables and the always troubling impatient buyer!

Too often ‘experts’ who tell you “everything will be fine”, fail to notice your home is in a neighborhood that has a managing HOA.   Easy enough to remember when it is a Condominium or Town Home community however, many Single Family Home neighborhoods are now ‘managed’ by an HOA.   This is where the cold becomes the dreaded Swine Flu.  In San Jose, nearly every neighborhood built in the last 10 years has some kind of HOA.

What’s the best medicine to protect you from the ‘Swine Flu Short Sale’?  First, be sure to hire an expert with experience that can be verified. This person will be able to diagnose your Short Sale and prescribe the best medicine.  I like to provide contact information of my recently satisfied clients as evidence of my prescribing qualifications.

A few things you will need to know:

1. How much is the HOA going to charge us to transfer the property?

2. Can they transfer?   Has the Builder and HOA agreed to terms of transfer?

3. Are you behind in dues payments?

4. If you are behind, what fees are accruing …daily, weekly or monthly?

5. Is the second loan a HELOC?

6. What are the chances of paying on a Promissory Note after the sale?

These are all unpleasant relapses and the prescription for each can be a negotiated factor if addressed early.  Like ‘an apple a day’ or taking your vitamins can keep you healthy, knowing these ahead of time could prevent a deadly relapse.  If not addressed they will ruin the chances for your approval of Short Sale.  Remember this the sale price approved will not change…Do you know what your second loan is?  Can a Default Judgment be filed?

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