NEW SHORT SALE LISTING VIDEO IN ROCKLIN!

New Short Sale listing in Rocklin take look at my first video. Still learning how to use the flip!

Call me if you would like to schedule an appointment to view this property.

Can I buy another home if I Short Sale?

Short Sale
Some agents say the good news for short sale sellers is the wait is much shorter before buying another home, and Fannie Mae guidelines in 2008 adopted new procedures.
Can a seller buy again in less than two years? Not really, says Coy, "It's an utter myth that a consumer 'can buy again in about 18 months at a good interest rate.' However, Fannie Mae guidelines now require only 24 months' seasoning, and that's good news for agents who specialize in short sales."

Note that Fannie Mae guidelines allow a seller to immediately apply for a new loan to buy another home if that seller kept the payments current, had no delinquencies exceeding 30 days and did not agree to repay the debt relief. Moreover, it's the late payments that affect your credit report, not the short sale.
About.com

I get this question all the time out in the field. With all the guidelines changing so rapidly I won't be surprised if new programs will be available for buyers affected by a Short Sales. If a seller goes through a foreclosure they are looking at a 5 to 7 years before they can purchase again.
Angel Lynn

Computer Repairs

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Top Ten Reasons I Love Short Sales

Top Ten Reasons I Love Short Sales
Don't get me wrong, I don't like the idea of a short sale. The thought of people losing hundreds of thousands of dollars on the American Dream of homeownership (isn't that what NAR advertises) is horrible for the economy, horrible for neighborhoods and will leave scars for many years to come.

But as a real estate professional who has been through the ups and is going through the downs, short sales represent an amazing opportunity. And here are the top ten reasons why....

10. They are everywhere. As an agent working with buyers, there is a ready supply of short sales to choose from at very good prices.

9. Lazy agents hate them. And that means competition is low for listing them as well as for buying them.

8. Inept agents screw them up. You have to be organized and thorough as well as patient with short sales and these are not qualities that most agents posess. But I hired an assistant that loves this kind of work.

7. Sellers don't fight the price. When the bank is taking the hit, most sellers have no problem getting to the right price.

6. Short sales are here to stay. With prices down 30% or more in most areas of the country (including my marketplace of Sacarmento County), most people who bought or refinanced and used their house as an ATM during the last 6 years are potential short sales. And prices won't be bouncing back anytime soon.

5. Banks agree to 6% in most cases. After years of fighting tooth and nail to make 4.5% and give 3% to the buyers agent, it is nice to get paid for the 30 hours of work I do to get a short sale approved.

4. The alternative is Foreclosure. And that is way worse than selling your house short. Most people can get another home loan in 18-24 months if they work at it.

3. Short Sale Buyers love the deals they get. It takes a lot of patience and hand holding and waiting but once they settle, buyers are very happy.

2. Debt relief for 10 cents on the dollar. If done correctly, a seller can eliminate all the debt associated with the home for as little as 10 cents for every dollar that they owe. Most banks will be happy to get that on a worthless second loan. And the relief that comes with eliminating that burden is huge.

1. Sellers always appreciate what you do. I have sold many homes short and worked a minimum of 30 hours on each one. I send 100 page faxes on a regular basis. I spend hours on hold. I fight with indifferent employees of banks and incompetent agents. But the appreciation I receive from the sellers at closing is worth it. And they always seem to have referrals.

What is a Short Sale by Definition.

For short selling in the financial markets.
A short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold.

In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank's loss mitigation or workout department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower's financial situation.

A short sale typically is executed to prevent a home foreclosure, but the decision to proceed with a short sale is predicated on the most economic way for the bank to recover the amount owed on the property. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing as there are carrying costs that are associated with a foreclosure. A bank will typically determine the amount of equity (or lack of), by determining the probable selling price from a Broker Price Opinion BPO (also known as a Broker Opinion of Value (BOV)) or through a valuation of an appraisal. For the home owner, advantages include avoidance of a foreclosure on their credit history and partial control of the monetary deficiency. A short sale is typically faster and less expensive than a foreclosure. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.

Short sales are common in standard business transactions in recognition that creditors are not doing debtors a favor but, rather, engaging in a business transaction when extending credit. When it makes no business sense or is economically not feasible to retain an asset, businesses default on their loans (called bonds). It is not uncommon for business bonds to trade on the after-market for a small fraction of their face value in realization of the likelihood of these future defaults.

Loan Modification Fraud!

DRE issues fraud warning
The DRE recently issued a fraud warning alerting consumers about loan modification scams and informing consumers of what they can do to protect themselves. The alert is available in both English and Spanish. Last July, the DRE had fewer than 10 complaints involving loan modification companies; today the department has 750 pending investigations. In addition, since last October, the DRE has filed more than 200 Desist and Refrain Orders. A list of the companies and persons the DRE has filed an action against can be viewed at http://www.dre.ca.gov/cons_drs.asp. It is worth noting that not all firms who collect advance fees for loan modification services do so illegally, the DRE said. In general, only licensed real estate brokers and attorneys operating within the scope of their license may collect advance fees. Real estate brokers must have their advance fee agreement reviewed by the DRE prior to its use to ensure it is compliant with real estate law.
C.A.R. also has learned of what appears to be a loan modification assistance program and lead generator, from a company using the legislative bill number 3648, that looks as if it’s a government entity, complete with a misleading seal closely resembling a governmental seal but that is not affiliated with the government. C.A.R. cautions all members to be on the alert for schemes seeking funds from REALTORS® or consumers with no value, or that may be misleading or unlawful.

Short Sales are getting Approved!

ONE avenue for escaping foreclosure may be getting a little easier to navigate: the so-called short sale, through which distressed owners sell their homes for less than the mortgage amount and are forgiven the remaining loan balance.


More Mortgage Columns As the credit crisis deepened, short sales became harder to complete. Among other things, people who had second mortgages, including home equity lines of credit, found that the second lien holders often balked, fearing they would be left with nothing, or close to nothing, after the holder of the first mortgage was paid off.

Homeowners in these situations would typically stand by while lenders argued about how to divide the proceeds from a sale, and the impasse would frequently result in a foreclosure.

But mortgage executives say they are now working more cooperatively on short sales, and proposed changes in the industry could increase the number of these transactions.

“Without a doubt, lenders are more willing to work through short sales,” said Andre L. Mitchell, the executive vice president of the Lynx Mortgage Bank in Westbury, N.Y. “In this marketplace if the lenders can negotiate in any way to get rid of a bad loan, they’re going to do it.”

The Treasury Department said last week that it would increase incentives for lenders to work out short sales when borrowers fail to keep pace with their loan payments. The department did not release details about those incentives.

Lenders have been eager for direction from the government, especially when more than one loan is involved. “To be able to systematize the negotiation would be a big plus,” said David Sunlin, Bank of America’s real estate management executive.

In the meantime, Mr. Sunlin said, Bank of America has shifted its own policy to encourage more short sales.

In the past, the bank followed the recommendation of Fannie Mae, the government-sponsored mortgage finance business, and gave second lien holders about 10 percent of the second mortgage balance in a short sale where Bank of America held the first lien. When Bank of America held the second lien, it also required first lien holders to forfeit that amount in a short sale.

Now, when it holds the second lien, Bank of America will accept 5 percent of the net proceeds of the short sale, Mr. Sunlin said. When it is the first lien holder, it will offer the same to holders of the second lien.

Banks encourage short sales because they lose less money on such transactions than they do in foreclosures, where they must sometimes carry the house for months before selling it.

Homeowners who are considering short sales can often make the process smoother by involving the bank early in the process.

For instance, if a home is worth $375,000, but has a first mortgage of $390,000 and a second mortgage of $20,000, the borrower might contact his or her first mortgage holder and raise the possibility of a short sale. If that lender knows it can negotiate successfully with the second lien holder, it can start those negotiations and put the borrower in touch with a real estate agent with experience in short sales.

The borrower would then list the home for its appraised value, and the agent, after conferring with the lender, usually accepts any offer close to that amount. After the house sells, the bank pays the agent’s commission of around 6 percent, and pays the second lien holder a portion of the proceeds. Both lenders then forgive the remaining debt.

The borrower is not off the hook completely, since after the short sale his or her credit score is likely to fall. But even then, the credit score would probably be far better than it would be after a foreclosure.

Mr. Sunlin said that homeowners who are considering short sales do not necessarily need to involve the bank early on. He said they can contact the bank within five days of getting an offer on the house and still expect good results.

That is especially true, he added, if documents are presented showing that the offer is in line with others in the local market, as well as pay stubs and other paperwork demonstrating the borrower’s financial hardship.

Mr. Mitchell of Lynx says short sales are often the best approach, even for homeowners considering a new loan to save the home.

“It’s gotten to the point where people understand that sometimes you have to start over,” he said. “A loan modification might help you in the short term, but sometimes what people need to do is get out completely.”
Published by NY Times

I am so glad that lenders are starting to work smarter! Holding off isn't going to help anyone in a short sale situation. On the other hand handling Michael Jacksons estate may be a thriller? RIP MJ you are a lengend, and your music will live on forever! My past client and freind will be at the funeral services tomorrow check out John Hooper on CNN.

Angel Lynn

Sacramento's Best Bike Shop

Angel and I recently bought cruisers to ride to work while the weather is so nice. We spent one Saturday afternoon going to seven different bike shops. The third place we stopped was Mike's Bikes. I was instantly impressed with the size of the store, the selection of bikes and the great service. We left to check out some other places but I was pretty sure the service at Mike's bikes couldn't be beat. After visiting four other bike shops we returned to Mike's bikes to purchase our bikes. Ryan was our sales associate and he answered every question we came up with. If you are looking for a great bike and great service I highly recommend you go see Ryan at Mike's bikes. If you tell him you read about him on this blog he will give you a 10% discount off the purchase price of your new bike. Please check out their website "Mike's Bikes" Out of all the bike shops we visited that day Mike's bikes also had the best prices. They also have an on-site repair shop that has been voted "best bike repair shop" three years in a row.

Facing Foreclosure? 'Short Sale' Could Help

As the national mortgage crisis threatens millions of Americans, more people than ever are choosing to short-sale their homes rather than face foreclosure.

A short sale occurs when a lender agrees to allow a homeowner to sell the home for less than the mortgage owed on it. The lender either absorbs the difference or requires a borrower to pay it back in a lump sum judgment or payment plan.

This allows homeowners to walk away from their houses without going into foreclosure and seriously damaging their credit.

The average foreclosure cost lenders $40,000, and the last thing banks and lenders want is more houses to sell.

Ride Storm or Sell? For many, a short sale is now looking like the last best option. Though it still diminishes one's credit rating, the short sale is often vastly preferable to other options.


Prove inability to make payments

The first thing you need to do is prove to the lender that you can't make payments at the adjustable level. That will require some filing of paper work, some documentation showing that your income has gone down.


Find a willing buyer

The second thing is to find a buyer who is willing to buy the home at a discount rate. To do that you have to get a knowledgeable real estate agent or attorney involved, maybe someone who specializes in short sales. That's important because pricing is incredibly important in the search to find the right buyer.

Get lender to approve sale

Lastly, you need to get the lender to approve the sale once you do find a buyer. That's why it's important to work with the lender as much as possible. That's going to make it that much easier for you in the long run.

If you can't complete a short sale

If the homeowner isn't able to complete a short sale, the next option is either foreclosure or handing over the deed to the bank in lieu of foreclosure. Those options are worse for your credit than a short sale — that's why it's so important to get the pricing right. Work closely with an agent who specializes in this kind of thing and work closely with your lender so you'll know what to expect.

This does continue to be the best option out there if you can no longer afford your home. Our office specializes in helping home owners walk away responsibly.

Layoffs Sacramento

For about 180 city employees and roughly 790 county employees, Thursday was the last day of work.

The city layoffs are part of the budget cuts the city approved when it passed its budget last month. When it passed its budget, city officials closed a $50 million deficit.

County layoffs came with the Board of Supervisors’ approval of its proposed budget last month. The county government had faced a $180 million deficit. For its final budget in September, the Board must still close out a $19 million budget gap in the state-mandated programs the county administers, according to Linda Foster-Hall, the county budget officer.

Some of the city’s unions made concessions to city managers in return for no layoffs. But some of the unions, including Stationary Engineers Local 39, did not make deals with the city.

The union represents a wide variety of workers in numerous city departments, including code enforcement, parks and recreation, parking enforcement and the solid waste division.

Mayor Kevin Johnson told reporters Wednesday that the failed negotiations with Local 39 were "disappointing."

“It’s the city workers who are impacted by this,” Johnson said. “And our team of negotiators went back and forth with the leadership of Local 39, trying to engage them over and over. And, at some point -- I cannot tell you why -- there was just not willingness at their part to negotiate.”

But Local 39 representatives claim that city officials were not interested in giving union members layoff protections.

“While other groups have been offered a no-layoff guarantee in exchange for wage concessions, the city adamantly refuses to do so for non-safety workers,” according to a Local 39 written statement.

Joan Bryant, director of public employees for Local 39, said Thursday that city officials “walked away from the talks.” The layoffs are unfortunate, she said.

The numbers of layoffs for both city and county employees were not exact by Thursday afternoon. The county sent out 793 pink slips to employees last month, but the number of total layoffs may be different when the county finishes calculating the exact numbers in the next two weeks, according to county spokesman Zeke Holst.

The numbers are not yet set in stone for several reasons, according to Holst. One of the reasons the numbers are still unclear is because there are employees choosing to retire, he added.

He also explained that the county is in the midst of “bumping” procedures. An employee who has seniority can move down to a lower position, he explained. When these employees move down to lower positions, they “bump” the people in the lower positions out of their jobs.

Kathleen Haley is a staff reporter for The Sacramento Press.

I think we are going to see the Short Sales in the Sacramento area sky rocket in the next few months. I hear stories every day of how people are struggling during these tough times. The good news is I am getting more approvals from the banks. I think they may be getting thier act together.