Update on Short Sales and what a Buyer needs to know…

As of December 1st, 2008 the banks are mandated to attempt to renegotiate loans for those who might qualify.

This will result in homes being taken off the market. Most likely for several months. Make sure you stay in touch with the Listing Agent to see exactly what the sellers intentions are if they keep their home on the market.

Many sellers will not qualify for a renegotiated loan……others will.

In either case it will cause some more anxiety and uncertainty for those who have been waiting for awhile already for a short sale approval.

There are still some good homes out there where the sellers have resigned themselves to let go and move on.

We can only applaud for those sellers who will have the opportunity to keep their homes and a roof over their heads.

For the buyers just know there will be a home for you out there , just be patient.

FHA 203K Loans

The FHA 203K renovation  loans is an excellent resource for buyers seeking a home that needs improvements or repairs and the buyers do not have the cash to do so.

I am working with a great loan officer who can assist you in applying for these loans and I can help you find a home that will qualify for such.

If interested email me at yourbrokerterry@comcast.net  or call and leave message on my direct line at 925 627 3006. I will get back to you.

Real Estate News Updates

Short sales are still in process and will continue for quite awhile. Most short sales are closing……Remember Short Sales are not short in duration. Still taking anywhere from 3-6 months from start to finish.

Concord, Has seen in the lower end housing, multiple offers. One home in particular last week had 40 some offers on it.

San Ramon in the Gale Ranch area had 51 Offers on a home last week.

East County is continued to be plummeted with shortsales, Bank owned properties and lower prices.

Overall we have seen a decline in housing inventory in various areas. Calm before the storm?

Such a dichotomy when we have homeowners losing homes to foreclosure.

If you are a seller in distress, PLEASE INVESTIGATE your options. You are in a fragile state and there are wolves in sheeps clothing promising you the world , taking money from you up front, and laughing all the way to the bank.

You DO NOT NEED to pay for loan modification. Your LENDERS want to work with you personally to come to a resolve. Email me if you want a list of the items your lenders would expect you to present to them.

Looking for options on your home?

In mortgage distress? Looking for Options? How do I determine what is my best choice? Can my home be saved from foreclosure? I receive mail that says they can help me if I pay them x amount of money. Are they for real? **If something sounds too good to be true , it is….** Contact us today to see how we can assist you in finding the best solution for your particular situation. We are not attorneys and cannot give legal advice. However we do try to provide our clients with as many resources as possible to ensure our clients can make an educated decision. Not based on emotions , Not based on idol promises. When Experience Matters….we are Experienced Real Estate Professionals. Contact info is below:

Terry Osburn-Broker Associate

Catherine Myers-Realtor Associate

Alain Pinel Realtors

http://www.TerryOsburn.com

925 627 3006

What about Loan Modifications?

We are definitely starting to see more lenders work with homeowners to perform loan modifications…..the caveat we have seen so far is it appears that banks that retained the notes(Did not sell to Investor’s) are working more closely with the homeowner.

Understand you may have a bank that has your loan but they may be the servicer NOT the holder of the note.

What also appears to be the case, those homes listed as short sales takes twice as long to come to an agreement when investors are involved vs when the bank solely retains the note.

Perhaps our government should come down on the investors to play ball as well in order to bring about some sanity to this spiraling economy.

If you are a homeowner in distress call your bank. Do not take NO for an answer until you get maybe 5 or more  solid no’s.

Call back  and call back again. Ask to speak to a manager. Ask to speak to the office of the president if that does not work.

I realize the hassle and emotions involved but TAKE consistent action until you know you have exhausted all means.

Most of those individuals answering the phones up front are unskilled, cheap labor hired to screen and be a barrier to getting further into the system. Many have absolutely no people skills and absolutely no knowledge of what they are speaking about. They read from computer screens.

You may have to go to google and look for specific numbers. If the bank is local , walk into a branch and ask to speak to someone in charge about your situation.

If  loan modification fails, first speak to a Real Estate Tax Attorney or qualified CPA before making a decision to do a short sale and/or foreclosure.

If a short sale is  indicated as the best option and you live in the Greater Walnut Creek , Ca area and surrounding communities , then give us a call.

We  are experienced short sale specialists and will be more than happy to list your home , procure a buyer and oversee and negotiate a short sale of your home.

www.ccshortsales.com

“Well, I will just walk away from my home…”

How many times we have heard those state who are in distress”Well, I will just walk away and be done with it…..” Unfortunately, a foreclosure may not be the answer and walking away will present another slew of problems. Catherine and I have echoed and I will reiterate again-You really need to touch base with a Real Estate Tax Attorney and/or qualified CPA before making a decision to do a short sale and/or foreclosure. In some cases, foreclosure is the best option while in other cases a short sale will be the best option . Example: We were recently called to list a home in the Richmond area. The owner had not spoken with a Real Estate Tax attorney. Due to the particular circumstances surrounding this home I really stressed the need for them to obtain legal counsel. They insisted I go ahead and list the home. In the meantime they decided to seek advice of an attorney that I had forwarded to them. We received an offer. HOWEVER after speaking with the attorney it was determined that they would indeed be better off in terms of penalties and taxes to allow to go into foreclosure. So we pulled the house off the market immediately and had to cancel out the buyer. Had they proceeded with left the homeowner facing a huge penalty. In another case, we have a couple that was so overwhelmed and being harassed by the collections dept they were ready to walk away. Again after speaking to a real estate tax attorney they discovered that a Short Sale would be their best option to reduce their penalties so we have proceeded with a buyer. There are several factors involved in determining overall what is the best decision. We are not qualified to make that decision but if a short sale is determined to be the optimum route we are more than happy to work with you to list and procure a buyer for your home and oversee the short sale process. Knowledge and educating your self about the process is paramount. If you find yourself in distress and unable to pay your mortgage PLEASE seek legal counsel. This is not the time to base your decisions on friends or families points of view UNLESS of course they are real estate tax attorneys and/or qualified CPA’s.

Sewer Inspections?

Yep, we are seeing many homes built in the “70’s and older having issues with the sewers draining properly. Usually due to tree roots. The old clay piplines are cracking.

This is another inspection we are advising buyers to perform. If a sewer is failing can cost several thousands of dollars and by having an inspection you can negotiate up front with the seller to either repair, replace and/or share the cost of replacement.

No one wants to get into “stinky” situation………….

Are you using a full time REALTOR?

Complaints have been coming in from buyers who have chosen agents who are working part time and their availibility has greatly hampered the buyers ability to purchase.

When looking for a Realtor make sure they are working full time in real estate.

Be careful of what you sign. There are realtors who will have you sign a buyer agency agreement that ties you into them for several months. If you end up clashing with them will make it difficult for you to use another agent.

Also, look at the fine print. The realtor puts down the fee they expect. If the seller only pays x amount the buyer has signed stating they will pay the rest. KNOW what you are signing.

Buyer Broker agreements are not all bad. Just know what you are signing.

Fannie Mae, Freddie Mac

Well, the US Government has again stepped in and is using the taxpayers money to bail out another mortgage entity.

I have mixed feelings. Obviously, the US economy is dangerously near a total collapse and something had to be done.

On the other hand, I take exception to bailing out the corporate giants and investors who have sat on their thrones snubbing the average citizen in distress, refusing to work with them to renegotiate loan terms and to bail out the corporate madness that has ruined thousands and thousands of citizens credit and hopes for home ownership.

I distinctly remember approx 2.5 yrs ago that it was really bad what was happening prior to the public becoming aware of the mortgage meltdown. I was told that the public was purposely kept in the dark for fear of panic……..

Hmmm……..

Well the good news appears it has caused the mortgage interest rate to go down…..However, in reality it will only help a few.

Those homeowners so upside down  in their mortgage are beyond help.

The market should have been allowed to completely adjust in order to bring real stability.

Don’t you wonder how many of the good ole boys and gals from all walks of life and political upbringing is paying back favors to their friends and cohorts in distress?

My personal feelings, it would have been a hell of a lot smarter to have renegotiated the loans , kept homeowners in their homes than to allow what has happened.

Does anyone realize how many foreigners are investing in US real estate?  We have literally given our country away.

I am not against foreign investment,  but it is scary to know that some of our banks, major commercial real estate centers as well as regular real estate is owned by outside forces…….

We all fell for it, hook , line and sinker………

Federal Tax Change on Sale of Residence…IMPORTANT

Housing Assistance Tax of 2008….

“The amount of profits from the sale of a house that can be excluded will now be based on the percentage of time when the house was used as a primary residence by the taxpayer. “
This can have significant effects upon profit and tax consequences. PLEASE see your CPA or Real Estate Tax Attorney for detailed information and how this could affect you now or in the future if you sell your home. I am not an attorney or CPA but this appears to be something NOT to be ignored up front.
It appears the amount of gain that will qualify for the exclusion is limited based on the amount of time that the house is actually used as a primary residence. If the house is used other than as a primary residence (such as rental property, or a vacation or second home), capital gains must be allocated between qualifying and non-qualifying use.
This is to take effect on January 1, 2009