Archive for the ‘Short Sales’ Category

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If You Have Received a Notice of Default

Sunday, September 13th, 2009

If you have missed a certain number of mortgage payments, the bank will issue you a Notice of Default on your home.  You then have approximately 90 days from the date of Notice of Default until the bank issues you an Auction Date for your property.

The notice of Auction Date comes from the bank 3 weeks before they are selling your property. Once your property is sold by the bank, you have 72 hours to leave the property.

When you receive a Notice of Default, you have options available to postpone your auction date and prevent foreclosure. You should talk to a reliable tax and bankruptcy professional who will explain t o you the various legal and credit ramifications that you face.

You may want to talk to a professional loan modification expert to identify your options and see if you qualify for a loan modification.

If it makes sense to list your house as a short sale, choose an ethical, knowledgeable, and experienced profession such as Marilyn Dashe and the Short Sale team at Century 21 Sea Coast in Encinitas to help you. They can explain the short sale option to you and let you know how they can postpone your auctions date with very little inconvenience to you.

Posted in Homes Foreclosure, Sellers, Short Sales | No Comments »

Appraisals: Changes and Problems

Thursday, September 10th, 2009

When a house goes into escrow, the buyer usually seeks a loan, which in turn requires an appraisal of the current market value of the property to ensure that the value is sufficient to cover the amount being loaned. The appraiser visits the site and inspects the home and also obtains the details of the  history of comparable houses sold in the neighborhood in recent months. There is reason to believe that before the housing market collapse of recent months, sometimes appraisers were influenced to assign unjustified high values to homes to allow the sales to go through at inflated prices. This may have been a contributing factor in the housing bubble.

The San Diego Union-Tribune reported last Sunday that a new code of conduct was instituted last May 1 by Fannie Mae and Freddie Mac preventing lenders, mortgage brokers, and real estate agents from talking to appraisers directly. Although the intent of the rule was to prevent undue influence from being brought on appraisers, it may have significant adverse effects. Sometimes the appraisers are not local people or not familiar with the recent sale history of the neighborhood. They may miss evidence that the neighborhood is improving or appreciating, or be unaware of special features of the history of the subject house. The effect may be that the appraisal comes in inappropriately low. This may not only put the sale in jeopardy, but it may have an adverse effect on prices throughout the neighborhood. It may even create a downward spiral of local prices. There is a move in Congress to modify or delay the implementation of the new appraisal rules.

Posted in Buyers, First-Time Buyers, Mortgages, Short Sales | No Comments »

If You Have Received a Notice of Default

Thursday, August 27th, 2009

If you are one of many homeowners right now who have received a Notice of Default on your loan, please understand that you have options and that foreclosure is only one of those.

At Century 21 Sea Coast, in Encinitas , California, we have a team of experts who can explain your options to you and can help you choose the best way to solve your problems. If you are working with a lawyer on a loan modification, we can help you through the paperwork and answer any questions for you.

If you have decided that a loan modification is not the best answer for you, let us at Century 21 Sea Coast list your house as a Short Sale. Agents like Marilyn Dashe at Century 21 Sea Coast is experienced with helping both buyers and sellers with short sales. Our team has 100% success rate this year in getting short sales approved by the bank. And we can do it sometimes in record time (60 days or under to close the escrow).

We know the paperwork that the bank needs and we know how to present it to them. We are persistent in our follow-up and we can reach the property negotiators very quickly.

If you are having problems with your home and would like to discuss your options, please contact Marilyn Dashe at Century 21 Sea Coast in Encinitas to discuss what to do next. Marilyn Dashe serves buyers and sellers in Encinitas, Cardiff, Carlsbad, Vista, and San Marcos. We look forward to being in touch!

Posted in Buyers, Sellers, Short Sales | 1 Comment »

Many San Diego Properties “Underwater”

Sunday, August 23rd, 2009

The San Diego Union-Tribune reported yesterday that it is estimated that up to 42.6% of the properties in San Diego County are “underwater,” that is, are worth less than the mortgage debt held against them. This is an estimate because it is based on theoretical home values in the neighborhoods. This is a common phenomenon throughout the country, but San Diego is said to be 12th among areas with populations over one million in the frequency of the underwater effect.

There is some controversy as to whether this will continue to get worse or will abate. Median prices in the county have risen from $280,000 in January to $320,000 in July, suggesting that the situation will improve.

When homes experience the “underwater” effect, the owners have several choices: They can continue to pay the mortgage if they are financially able, in the hope that the price of their home will rise. They can abandon their home and not pay the mortgage, but this has a major adverse effect on their credit. Or they can sell the home “short,” that is, for less than the debt against it, with the bank agreeing to accept the proceeds in lieu of full payoff of the debt, which has much less adverse effect on their credit.

According to local experts, people are often unaware of the market value of their home if they are not otherwise needing to sell, and they are very reluctant to give up their homes unless forced to by circumstances such as job loss, despite the loss in market value.

Short selling is often the best answer, and short sales have recently resulted in multiple offers, sometimes above the asking price.

Posted in Mortgages, Short Sales | No Comments »

Housing Market is Readjusting

Friday, August 21st, 2009

There were several pieces of news today about the housing market nationally. Sales of existing homes have increased 7.2% to an annual rate of 5.24 million in July, up from 4.89 million in June, according to the National Assoc. of Realtors. This is the fourth monthly increase in a row and represents the highest sale rate since August, 2007.

Ben Bernanke announced at a Fed. Reserve meeting in Wyoming that “The prospects for a return to growth in the near term appear good” in response to the news.

One of the driving forces of the increase in sales is lower prices. The median home price nationally is down 15.1% from a year ago.

At the same time, foreclosure rates are rising, led by Florida and California. Furthermore, foreclosures are no longer largely due to subprime loans. Prime, fixed rate loans now account for 33% of foreclosures, whereas a year ago they represented only 20%. These foreclosures are being driven by rising unemployment, which is expected to peak above 10%.

This is a very sad situation for the many people who have lost their jobs and are in line to lose their homes. But it is an opportunity for people with stable job situations, good stable incomes, and money for a downpayment. They can buy homes at reduced prices as the market adjusts to the recession and the recovery begins.

Posted in Buyers, First-Time Buyers, Homes Foreclosure, Short Sales | No Comments »

County Home Prices Have Bottomed Out

Tuesday, August 18th, 2009

New data from MDA DataQuick which monitors San Diego County home sales show that there has been a mild increase in prices and numbers of sales in July. The median price is up to $320,000 from the recent low of $280,000 in January. The number of sales was 3809, up 11% from July of 2008.

But experts do not predict  rapid appreciation to return. The rise in the median price was partly due to a larger contribution of move-up homes of over $500,000–27.9 % of sales as against the recent low of 17.5% in January. The percentage of sold homes that had been foreclosed has correspondingly dropped to 37.4% from the recent high of 55% in January. Still, most of the activity is interest from first-time buyers and investors in starter homes in the lower price range, resulting in multiple offers.

The inventory of available homes on the market has fallen to 8,889 from 13,268 last month, although part of the fall is due to a change of definition; short-sales waiting for lender approval are now called contingent sales instead of active. The inventory of homes to choose from is down because many potential sellers are holding their homes off the market because of the depressed prices, down 38% from the 2005 peak.

Overall it appears that the market has likely bottomed out, so it is a good time for interested buyers to start shopping. There are bargains available if you are interested in Cardiff, Encinitas, Carlsbad, Oceanside, Vista, or San Marcos.

Posted in Buyers, First-Time Buyers, Homes Foreclosure, Short Sales | No Comments »

A New Idea for Distressed Properties

Sunday, August 16th, 2009

There is a new idea for distressed properties being tried in our community. Instead of foreclosure, the property is sold to investors as a short sale–for less than the owners owe on the property. But this short sale is different: the buyers and sellers enter in to an agreement allowing the sellers to rent back the property for a fair market rental rate, including taxes, insurance, and utilities and property maintenance for 2-5 years. At the end of that time the original owners can buy the property back for a preagreed price higher than the short sale price but less than the original property debt.

A variation on this would be for the mortgage holder (the bank) to foreclose on the property, but to agree to lease the property back to the former owners for a few years until market prices recover, perhaps allowing the original owner to buy the property back from the bank at a later time.

The benefits are that the property would remain occupied and maintained, and perhaps the new investors would make a profit, or the bank would lose less money than in a foreclosure and sale. What is not clear is whether there are current owners who can afford the fair market lease payments on their properties, and whether banks would be interested in becoming landlords.

There is interest in the proposal in Congress with bills under consideration that would allow for banks to participate in such arrangements.

Posted in Homes Foreclosure, Short Sales | No Comments »

Tips on Negotiating Loan Modification

Sunday, August 16th, 2009

If you are having trouble paying your mortgage, you may be able to negotiate a loan modification, but it isn’t easy. You will have to deal with a loan servicer, and you may be on the phone a long time to get through, so try to allow enough free time to accomplish the task. Even when you make contact, it may take weeks before the mortgage holder will respond with a decision. You can get further information about whether you may qualify for a modification from the Treasury Dept. homeowners’ website: www.makinghomeaffordable.gov.

When you make contact with a loan servicer, try to get the name and re-contact information for the person. Ask for the name and contact information of the holder of your mortgage loan. Ask for a written copy of your payment history. Ask also for hard copies of any commitment made to you, especially of a loan modification or a cancellation of a foreclosure sale of your home. Keep records of all phone conversations you have with the servicer. If you think your rights are being violated, consider contacting a non-profit housing counselor or seek legal help. Housing counselors will help you for free; beware of services that offer to negotiate on our behalf for an upfront fee.

If you have no success in trying for a loan modification, consider the alternative of doing a “short sale.” This means you sell your house for less than you owe on it, but the bank takes the proceeds and excuses you from the rest of the debt. You still lose your house, but the adverse effect on your credit is much less than a foreclosure or bankruptcy. Contact a reliable real estate agent for details.

Posted in Homes Foreclosure, Mortgages, My Real Estate Blog, Short Sales | No Comments »

Century 21 Sea Coast Offers Solutions To Collapse of Short-Sales

Wednesday, August 5th, 2009

The front page of  U.S.A. Today on August 5th reported that buyers for Short Sales are walking away from their offers because the lenders are taking such a long time to make a decision.

Months may pass while buyers and agents deal with lenders’ lengthy delays, lost documents, and unreturned calls. According to the National Association of Realtors, not all of the problems are caused by the lenders. Inexperienced real estate agents who fail to turn in accurate paperwork are also causing  holdups.

At Century 21 Sea Coast in Encinitas, we have an experienced team of Short Sales experts (agents and document coordinators) who will complete your short sale in a timely manner. Agents such as Marily Dashe at Century 21 Sea Coast just received bank approval from Wells Fargo on two different loans for a Short Sale in 28 days. The entire deal will be completed in two months.

Century 21 Sea Coast understands the forms needed by each particular bank and the process required to contact the negotiator for each loan and to escalate the process as necessary to get the job done.

It is very important to homeowners with distressed properties to get the short sale closed and avoid foreclosure.  A homeowner who has gone through a short sale typically can get a new home loan in two to three years while the owner of a foreclosed property may wait seven years.

Please call Marilyn Dashe at Century 21 Sea Coast in Encinitas if you or someone you know has received a Notice of Default and would like to start the Short Sale process. It works if it’s done right!

Posted in Short Sales | No Comments »

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