san diego short sale: Bank of America, Short Sales in San Diego, Countrywide Short Sales and CCP 580B and Non Recourse loans - 07/01/09 10:38 AM
 Bank of America’s short sale approvals and Countrywide short sales approvals are issued with similar “flaws” (from the standpoint of home sellers).    
Their short sale approval letters reserve their right to come after the seller for the deficiency and they do so in writing.
However, they also seem to include a vague disclaimer which states that these terms apply as long as they are allowed by state law.   
 
Almost every short sale negotiator to whom I have spoken states they advise their clients to go ahead and do the short sale as long as their clients have … (7 comments)

san diego short sale: Are you a short sale loss mitigator or loss maximizer - think about it - 05/29/08 08:03 PM
A few short months ago I started seeing  some short sale practioners calling themselves loss mitigators. 
Then I started getting calls from the loan brokers who wanted to do "loss mitigation".  I heard this phrase so often  I realized someone must have been selling them loss mitigation seminars. 
I have to admit that I thought to myself these guys sound like idiots. The lender is doing the loss mitigation... the homeowner is in a way attempting loss maximization.   
I hope every professional doing short sales is engaging in negotiations with the bank with the goal of helping the seller walk away … (10 comments)

san diego short sale: short sale San Diego - Loan Forgivness - New IRS Form for cancellation of debt - 02/13/08 02:50 AM
Short sale and Loan forgiveness are tricky but easier right now.  The IRS has a new form - 982.  Which seems to lay it out a little better. But be careful - you still have to be concerned about capital gains, and the California Franchise tax board.  
Debt reduced in a mortgage restructuring as well as mortgage debt forgiven in connection with a foreclosure may qualify for relief.  
It seems that acquisition debt is  being defined as debt used to buy, build or substantially improve the tax payers principle residence and refinanced debt up to the amount of the original mortgage principle. … (0 comments)

san diego short sale: short sale san diego, san diego short sale law - faq - 01/29/08 05:00 AM
San diego short sale questions and questions about California foreclosure law.
 
Questions  How do I determine whether or not my loans are “recourse” or “non-recourse”?  I checked my CA Residential Purchase Agreement as well as all my other paperwork provided at closing, but was unable to find a definitive statement as to whether or not the loans are “non-recourse”.  I am simply assuming it is non-recourse based on the fact that it was purchased in CA and was used as my residence, for which I have never re-financed.
 
Answer:  Your loan docs may tell if your loan is non recourse.  … (2 comments)

san diego short sale: San diego short sale, short sales san diego - 01/26/08 06:01 AM
San Diego short sale
Some people still ask what is a short sale? In November I answered that  question on a KPS television special about the housing crisis in San Diego.  My segment discussed all the options for a home owner.  Other segments discussed some of the problems created for san diego real estate owners by the short sale and foreclosure scammers.   There was also a segment following a san diego realtor and the tribulation he faced in this difficult market.
San diego short sale law
When determining whether you have a recourse or non recourse loan the first thing … (0 comments)

san diego short sale: San Diego short sale, California Association or Realtors - Short sale addendum - 01/23/08 06:30 AM
The California Association of Realtors short sale addendum poses some interesting questions for San Diego Realtors and California Realtors.
I thought I might address a few of those issues in a series of real estate posts.
Today we will discuss the first line.   
While this may seem elementary - I thought I should review it anyway.  
 Interestingly - the very first check box poses some issues. I have seen Realtors deal with the checkbox in an inconsistent manner.
Is the California Association of Realtors "short sale addendum"  and addendum to the California Residential Purchase Agreement - a Counter offer - or other.
It … (0 comments)

san diego short sale: San Diego short sales vs Deed in lieu of foreclosure - 11/30/07 08:58 AM
California Short sale vs deed in lieu or foreclosure which is the better pre-foreclosure option. 
today we will look at non recourse loans. 
If we hold credit concerns aside - a short sale could be an expensive mistake for many California homeowners.  Particularly ones with non recourse loans.  
It exposes homeowners to unnecessary risk of a deficiency and or tax liability for that deficiency. In my opinion no short sale should be done for homeowners with non recourse loans unless they are well advised by their attorney and you have then a serious set of supplemental clear, concise and unambiguous releases. 
Why 
1. A … (21 comments)

san diego short sale: San Diego Short Sale - Notice of Default - 11/25/07 07:14 AM
As I mentioned in one of my previous posts some short selling owners are getting offers which are rejected by the lender. Very few buyers are willing to buy a short sale listing for market value. Some lenders are willing to negotiate deeds in lieu of foreclosure. But, what if your client wants to know what they should do?
What are the ramifications of a deed in lieu vs a short sale?
I am sure many of you already know the answers. But now I am going to give you a real life concern.
What happens when the NOD gets filed.
What should a good … (3 comments)

san diego short sale: San Diego Short Sale and foreclosure law and Realtor fees - 10/29/07 02:27 AM
Question from a Realtor in one of the comments to a previous blog about a warning from the California association of Realtors to Realtor's assisting in the purchase of short sale and foreclosure properties.   
 
Q:I'm curious what would happen if the buyer wants to buy the home as a 2nd home? I don't believe this would fall under investor purchase so would this considered to be legal if an agent represents this particular buyer?
 
A: Pretty good timing on the question.  With short sale approvals apparently slowing down with some lenders, sellers are starting to get NODs.  I therefore started to … (4 comments)

san diego short sale: short sale vs foreclosure - 10/16/07 01:10 AM
Here is a question I was sent via my active rain email.  I thought I would post it for two reasons. The first one being to show all the hard core "pay you loan back" that some people attempt to pay them back and hit difficult spots and two it is a typical question and one I see over and over from San Diego and Sacramento homeowners.      
Question:  
 I've been reading your blogs and it's helpful. I've been in over my head for some time and I put my house on the market and things looked promising. I took … (0 comments)

san diego short sale: Short sales - tax implications and ethical duties - 10/02/07 02:38 AM
I believe over time this blog is taking the mystery out of short sales. 
So what is a short sale?  For my analytical purposes I just see it as one of the pre-foreclosure options a seller should consider.  It is really just like a short payoff with a the funding for that payoff through a sale.   
At least for California and Florida we know - that a short sale does not automatically equate to zero deficiency.  (in fact the home seller's attorney should review all the documents prior to the closing because some banks are known to request concessions on this subject in … (8 comments)

san diego short sale: Short sale strategy - The goals of a short sale for a san diego homeowner - 09/17/07 02:41 AM
Short sale and pre-foreclosure strategy.  What might your objectives  be and how should you accomplish those goals?   
For most upside down homeowners the threshold question is - keep the home or let it go.  Lately the large majority are saying let it go.  Many homeowner in San Diego and Florida are facing impossible arm payments.  Clients are telling me their arms are exploding and in the next few months their payments are going form $3,000 to $14,000 a month.  Not many people wish to make impossible payments on a home which has lost $100,000 in equity since their purchase. .   … (6 comments)

san diego short sale: short sale san diego - california foreclosure case law - 09/10/07 01:00 PM
This is a follow up to previous posts about short sales,  a Heloc and a potential deficiency judgment for a sold out junior.  I told one of the Realtor -  some attorneys believe the 9th circuit may have muddied up the analysis of junior liens.  The case is Prestige Ltd. v East Bay Car Wash -- 
Below are some excerpts from the Prestige case which some of you may find edifying.  Please do not think this is a synopsis of what you need to know to make a conclusion.  It is not a complete analysis.   
 
Cal. Civ. Proc. Code S 580b. … (3 comments)

san diego short sale: Short Sale negotiating strategy - truth in lending violation - 09/07/07 01:14 PM
If your lender is not cooperating in your negotiations. You have tried deed in lieu and short sale, it is time to get tough.  
 
Here is one way to get tough.  Make the bank prove that they complied with this:  
 
http://www.fdic.gov/regulations/laws/rules/6500-1400.html
 
This is the federal truth in lending disclosure requirements.  Regulation z.  
 
In some situations our San Diego law firm chooses to make this part of our opening request for information.  We figure that since the the bank requires us to get a signed authorization from the client to release information to us, we might as well demand all the information.  
If you … (6 comments)

san diego short sale: California Real Estate Law - Is a home equity loan non recourse - 09/05/07 06:16 PM
Here is a great question I got the other day from an on the ball Realtor.  I have told him I am going to research the case law to pin this question.  I already have my basic answer but if Indymac were coming after me I would not feel too comfortable with out some case law.  I will get to it and report it here as soon as I have time to look it up. 
In the mean time, how would like to make the banks argument and who would like to make the homeower's argument.  And what does a sold out … (85 comments)

san diego short sale: Should a San Diego homeowner refinance - 09/01/07 07:13 PM
A San Diego homeowner asked me if she should refinance her property in Carlsbad.   It is a good question.  In an up market it seems like a simple question every mortgage broker would answer yes -  why not if you can lower your payments or take some cash out without increasing your principle.  
But, in a down market this is a very critical decision if the loan that would be paid off by the the refinance is a purchase money loan.  And, if you have refinanced and now you are upside down and considering a short sale, an attorney would … (2 comments)

san diego short sale: Short sale Negotiation - is providing the listing price of the real estate a mistake? - 08/04/07 07:36 AM
If you are representing a property owner in a short sale negotiation with the lender and a lender asked you for the fair market value of the property - how will you respond.    
Two mornings ago, I got a call from the lenders foreclosure department three months after sending a short sale package to the lender's loss mitigation department.  
She asked whats going on with the property?  I responded,  we sent your bank a short sale package and we were waiting for your loss mitigation department to pick a listing price. She asked what's the fair market value?  I responded - … (13 comments)

san diego short sale: Are Realtors Practicing Law without a license Part (2) - 07/29/07 12:45 PM
Today I read an activerain blog by a San Diego Realtor.  He suggested the following items should be part of the short sale package:
 "
Hardship letter from the Homeowner Completed Financial Statements Documents proving the Hardship IRS tax Returns for 2 years Income statements or pay stubs for past 2 months. 4 months worth of Bank Statements...."Would you make these items part of your short sale package?  Would you advise the homeowner accordingly? Would you have the homeowners sign some sort of document which purports to give you the right to negotiate with the bank?
After answering the above questions - think about the … (13 comments)

san diego short sale: 2006 vintage loans - can the foreclosures be stopped. - 06/29/07 09:34 AM
In an article from Reuters on June 26, 2007  - I saw the following quote.  I was struck by the wording for multiple reasons. 
"We continue to see migration from 60-plus-day to 90-plus-day delinquencies within the 2006 vintage, suggesting that homeowners who experience early delinquencies are finding it increasingly difficult to refinance or work out problems, as opposed to being able to cure falling behind on payments," the rating agency said.
It seems the rating agency is saying that foreclosures are becoming more inevitable.  I am wondering if its because the loss mitigation departments at some banks are not responding quickly enough … (0 comments)