You have probably heard the term "Short Sale" on the news or in a newspaper article about the Sub-Prime Housing crisis. But do you really know what a Short Sale Means?
A Short Sale occurs in real estate when the outstanding obligations (liens) against a property are greater than what the property can be sold for. In order for a Short Sale to close successfully, the lienholder(s) need to agree to FORGIVE a portion of the debt that is secured by the Real Estate being sold and accept a discounted mortgage payoff.
What are the Qualififications for a Short Sale?
1.)Comparable sales in the area must substantiate that the home is worth less than the unpaid balance due to the lender(s).
2.)The sellers are in or near default.
3.)The sellers must prove a hardship and inability to payoff the loans.
There are advantages of doing a Short Sale, rather than going into Foreclosure. The main advantage is the impact to your credit. Of course, it depends on how early the short sale begins and whether a Notcie of Default has bewn filed. Your credit is negatively affected for 1-3 years, but you may possibly qualify for new mortgage within 18 months. In a Foreclosure, your credit is negatively affected for 7 to 10 years, and it may take much longer to qualify for a new mortgage again. Always consult with you Tax Accountant or a Real Estate Attorney to find out how this will specifically impact you.
Debt Foregiveness and Tax Consequences
Usually debt that is forgiven or cancelled by a Lender must be included as income on a Taxpayer's income tax return. The Mortgage Forgiveness Debt Relief Act MAY allow exclusion of income IF debt is secured by Taxpayer's principal residence. Consult an Accountant.
What is the recipe for a successful Short Sale?
1) A Cooperative Seller 2) A Knowledgeable Listing Agent 3) A Cooperative Lender(s) 4) A Patient Buyer and 5) Competent Escrow Officer and/or Short Sale Facilitator
If you think you may be qualified for a Short Sale, please contact Mary Aguilar (831) 277-1073 for more information. This could be the answer you are looking for to begin again and find relief from financial stress and difficulties.
Is anyone else experiencing difficulties in getting your clients' loans approved? We on the Central Coast of California are experiencing a very high volume of REOs going into escrow and as a result it is taking as long as 14 days to get underwriting approval. Please share your experiences and what you are finding may help in moving transactions along in a somewhat timely manner.
My first job in 1967 was working for a bank in New York State (I know I am dating myself!). Here I am again working with banks in Real Estate - and working with Bank Owned property can be a challenge. If you are a control freak, give it up - you won't be in control with your negotiations, or any other step in the process, for that matter.
Working with a bank is a wait and see game. Make and offer, and WAIT. Get a counter, counter their counter, and WAIT. Accept the offer, and WAIT for an executed contract. It can be very frustrating, to say the least. There are no people to talk to, only a website where you can find out what, if anything is being approved.
Some of the REOs are now coming on the market at below market prices and causing a flury of activity with multiple offers coming in with cash and over the asking price.
I pride myself on being responsive and giving great customer service, but I have to explain to my clients, that this is not a normal transaction. Every bank is different in want they want and how they do it. Some demand a non-refundable deposit and even NO contingencies. Others are a bit more rational, but it is still a risk for any buyer. The condition of some of these REOs are unbelieveable, so you need to have a hammer and lots of nails before you can move in.
So I say, get used to it - the only Realtors making any money these days are the ones brave and patient enough to work with the banks to be able to get their clients an "affordable" home at prices we once saw more that 5-6 years ago.
I am writing a 30 second infomercial about what I do as a Realtor. How would you introduce yourself? What do you think about the following? I'd love to have your comments:
I sell homes and I make friends for life. I am passionate about working diligently to get my clients the best possible price, both buyers and sellers alike. Whether it's negotiating, problem solving, writing an ad or meeting an inspector at the house, I keep the process simple and easy and help the client get what they want.
Country Roads Take You Home......to a unique one-level design and life is easy in this amazing 2400+ sq ft, 2 bedroom plus bonus room, 2.5 bath home with full basement that can easily be finished into an extra family room/rec room. Nestled on 1+acre of natural beauty you can enjoy sunsets from the sprawling redwood decks or through the myriad of windows opening up the home to the outdoors. Some of the features include a country kitchen with specially crafted cabinets, lots of wood, wide halls and luxurious bathrooms. The main and master bathroom each have a separate shower, double sink, bidet, marble tile and jetted soaking tubs. A detached 2 car garage has a great workshop for the hobbyist. Whether you are commuting to San Jose or Monterey, you'll love coming home to your own heavenly haven. For a special look call Mary Aguilar, Realtor, John Saar Properties at 831-277-1073.
Wow! I have clients looking at bank owned properties and much to my surprise, many have multiple, cash offers. All of a sudden we have hit a price point and the buyers are rushing in.
Salinas has had the most foreclosures and short sales in the County. In the Creekbridge area of North Salinas there are currently 60+ listings in escrow. This is so encouraging! Mind you, we have a few more to go, but if the rush keeps up, we may get most of the foreclosures sold by the end of the year, if not sooner, and see the market level off a bit!
Many of the homes we see being sold in the $200,000 and $300,000 price range sold as high as $620,000 just less than 2 years ago. The bubble has burst, but it is a great time to be a buyer. The most recent proposed legislation by Congress allows for a $7000 tax credit for those who buy foreclosures. If passed, this will bring out even more investors.
So Buyers, don't wait too long - the opportunities are here now. Call me today to get a special tour of homes for sale on the Monterey Peninsula.
World Class View in Del Monte Heights in Seaside, California
This home is only for those who love a fabulous ocean view! Enjoy sunsets and city lights from this wonderful 3 bedroom, 2.5 bath home perched on a quiet cul-de-sac in Upper Seaside with underground utilities and nearby parks. French pavers welcome you as you come up to the front entrance of the home under an amazing pergola. With a casual floor plan that has a large living room and separate family room, this home is designed for a fun lifestyle and plenty of entertaining. Perfect taste shows in its remodeled kitchen, stylish window treatments and built-in cabinets; not to forget the wonderfully landscaped, oversized lot. Without question, at over 2000 square feet, this is the most house your money can buy on the Peninsula. Terrific price of $739,000
Call Mary today for a private showing - 831 277-1073
Open House scheduled for Saturday and Sunday, April 5th and 6th, 1 to 4PM
5,000 square foot Monterey City lot WITH WATER. Achitechtural Review Committee(ARC) has approved the concept for a 2 unit/2 story residential structure that can be converted to a single-family home. ARC approval good until May 09 - 2nd story designed to have Bay views - Zoning is multi-residential. Soil test and Geological Survey have been completed and will be provided to buyer.
890 Taylor St. Monterey Offered at $600,000
Contact Mary Aguilar at (831) 277-1073
Mary Aguilar, Realtor, GRI, ABR, e-PRO, Top Producer at John Saar Properties
5,000 square foot Monterey City lot WITH WATER. Achitechtural Review Committee(ARC) has approved the concept for a 2 unit/2 story residential structure that can be converted to a single-family home. ARC approval good until May 09 - 2nd story designed to have Bay views - Zoning is multi-residential. Soil test and Geological Survey have been completed and will be provided to buyer.
890 Taylor St. Monterey Offered at $600,000
Contact Mary Aguilar at (831) 277-1073
Mary Aguilar, Realtor, GRI, ABR, e-PRO, Top Producer at John Saar Properties
Welcome to my friend, Judi Hartwell. Judi and I have been friends for over 20 years, each working for the Department of the Navy in Human Resources during another lifetime. Judi moved to Mississippi over 10 years ago and came back to California after Katrina hit and did major damage to her home.
Judi retired and is now working as a Realtor at my company, John Saar Properties in Carmel, CA. Judi is doing all the right things: she has a wonderful coach, doing lots of open houses, and is now starting to blogg with us.
I look forward to getting a strong blogging community on the Monterey Peninsula! Please join me in welcoming Judi Hartwell: jud@johnsaarproperties.com
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
ortion of the debt that is secured by the Real Estate being sold and accept a discounted mortgage payoff.
My first job in 1967 was working for a bank in New York State (I know I am dating myself!). Here I am again working with banks in Real Estate - and working with Bank Owned property can be a challenge. If you are a control freak, give it up - you won't be in control with your negotiations, or any other step in the process, for that matter.
.
Country Roads Take You Home......to a unique one-level design and life is easy in this amazing 2400+ sq ft, 2 bedroom plus bonus room, 2.5 bath home with full basement that can easily be finished into an extra family room/rec room. Nestled on 1+acre of natural beauty you can enjoy sunsets from the sprawling redwood decks or through the myriad of windows opening up the home to the outdoors. Some of the features include a country kitchen with specially crafted cabinets, lots of wood, wide halls and luxurious bathrooms. The main and master bathroom each have a separate shower, double sink, bidet, marble tile and jetted soaking tubs. A detached 2 car garage has a great workshop for the hobbyist. Whether you are commuting to San Jose or Monterey, you'll love coming home to your own heavenly haven. For a special look call Mary Aguilar, Realtor, John Saar Properties at 831-277-1073.
Monterey City lot WITH WATER. Achitechtural Review Committee(ARC) has approved the concept for a 2 unit/2 story residential structure that can be converted to a single-family home. ARC approval good until May 09 - 2nd story designed to have Bay views - Zoning is multi-residential. Soil test and Geological Survey have been completed and will be provided to buyer. 
Welcome to my friend, Judi Hartwell. Judi and I have been friends for over 20 years, each working for the Department of the Navy in Human Resources during another lifetime. Judi moved to Mississippi over 10 years ago and came back to California after Katrina hit and did major damage to her home.
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