Pete Reese's Short Sale Blog

Chase Just Paid My Seller $30,000 to Short Sale Their Home

2011-11-21T10:01:00.000-08:00

I know there may be a few of you out there that are a bit skeptical when something falls in the "too good to be true category". That is exactly how my sellers felt when they received a letter in the mail from Chase (their lender) offering to pay them $30,000 if they sold their home as a short sale. This is one of those rare cases when things worked out exactly as they were made out to be in the letter.

My sellers contacted me after they received this letter to get the process going. I immediately began communicating with both their lenders, Chase (1st Mortgage) and Bank of America (2nd Mortgage). We offered the property on the MLS at a list price that was attractive to buyers.....even in this market. We received an offer than seemed pretty low to me, but we decided to accept it and see if their lenders would approve it. To my surprise, they accepted the offer, with some minor changes, and confirmed that they would be paying my sellers the $30,000 at closing.

Soon after, Bank of America agreed to approve the short sale as well. Bank of America would be receiving $6,000 at the close of escrow paid from the proceeds that would be going to Chase. Bank of America was also made aware that the sellers were receiving a $30,000 incentive to sell from Chase, and approved of this.

So, the end result is that my sellers received a check for $30,000 at closing. All closing costs, commissions, etc. were paid by Chase, and the sellers did not have to contribute anything towards the short sale. As a result of the short sale, both the 1st & 2nd mortgages were settled in full. These sellers will also not have any tax liability because this was their primary residence. I think this is pretty good deal for all involved!!

If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Bank of America Short Sales - Are They Really That Bad??

2011-09-27T10:52:00.000-07:00

Bank of America gets a bad rap sometimes....At times this reputation is well deserved, at other times not so much.

Part of the problem is that Bank of America services so many loans. When a short sale initiated, it is routed to one of many different units. Depending on which unit handles the file, the length of processing time can vary considerably.

Some Bank of America short sales that I have completed have been extremely easy and efficient from beginning to end. In fact, I have gotten short sale approvals from Bank of America in just over 2 weeks. Others have had so many unecessary delays and roadblocks, that it is almost comical. The longest it has taken to get an approval letter (under their current processing system) has been 6 months.

One thing I have noticed, is that if the short sale is being processed under the HAFA program, then it normally gets routed to one of Bank of America's outside vendors. These vendors are typically bogged down and take much longer to get the short sale approved.

So, the bottom line is that Bank of America is sometimes good and sometimes bad to work with. The key factor to keep in mind is that I have NEVER had them reject one of my short sale requests. In my book, they are not that bad!!

If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

New Short Sale Listing in Electra Buidling - Dowtown San Diego

2011-09-22T10:39:00.000-07:00

I figured I would start posting all my new short sale listings on my blog from now on. Unlike most agents/brokers, I specialize in the short sale process rather than a particular neighborhood. Therefore, I sell properties all over Southern California, and I do so very efficiently!!

If you know anyone looking for a great condo downtown, this could be the property for them.
If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Do You Really Need a HARDSHIP to Do a Short Sale?

2011-08-29T20:09:00.000-07:00

The answer to this question lies in a number of different variables....

First, lets start with the basics. A hardship is what your lender normally looks for as the reason for doing a short sale. Although the lender normally prefers to see a hardship, most are willing to look past this if the situation dictates a short sale.

I have completed many short sales for clients that did not have a true hardship. In some of these circumstances, the fact that they had a Notice of Default filed against the property was reason enough for the lender to agree to a short sale. When a foreclosure is imminent, the necessity to prove a true hardship becomes irrelevant.

Other times, when payments are still current, the lender will look a little closer at the hardship. A hardship does not solely mean the inability to make the payments financially. Sometimes hardships can be unconventional such as relocation for employment, health situations, neighborhood concerns, etc.. A well crafted hardship letter (which I can help you with) can accurately describe the situation and will not hold up a short sale in most all circumstances. I have even been very successful in short selling for clients who have substantial assets and income.

Many sellers choose to move forward with a short sale to get free from their upside down homes. The bottom line is that the lack of a conventional "hardship" should not stand in your way of moving forward with a short sale.

If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Is It Possible To Short Sale with Multiple Liens on a Property?

2011-08-24T10:28:00.000-07:00

Short sales come in various forms....some are very easy (normally 1 lender) and some are a little more difficult (multiple mortgages and liens). Whatever the case may be, a short sale can normally be accomplished.

In fact, I am closing a short sale now where the seller had two conventional mortgages, and also a lien from an SBA loan in the amount of $900,000!! What ended up happening in this transaction was that the 3rd lienholder (SBA) settled for $1,000 in order to release their lien and settle the debt. Otherwise, they would have received nothing had the property gone through foreclosure.

In total, as part of the short sale, the first mortgage holder agreed to pay the 2nd mortage $5,000 and the 3rd lienholder $1,000 in order to settle the debts. So, the seller ended up gettnig $3,000 at the close of escrow, was able to move on from a home that had dropped dramatically in value, and his mortgage debt was settled as a result of the short sale. To me, this was a great deal for the seller and the buyer!!

No matter what the situation is, I have confidence in my ability to put the deal together. Sometimes it takes a little creativity and patience, but the end result is a successful short sale in most all circumstances.

If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Q & A; Am I responsible for property tax's that are late in a short sale?

2011-08-04T09:41:00.000-07:00

I was just emailed this very common question. Taxes are always on the mind of my sellers before they completely understand the power of a short sale.

"Will I still have to pay the property taxes that I owe?"

Property taxes that are delinquent are paid out of the proceeds of the Short Sale. This amount is paid out of the short sale escrow to satisfy the County. In most all cases, the seller will not need to contribute financially towards satisfying the property taxes.

Pete Reese, Broker Lic #01739054
760-908-3086

reese@sale-pros.com

FAQ's: Do I have to be late on my payments to short sell my home?

2011-07-28T10:40:00.000-07:00

A common misconception is that you have to be late to qualify for a short sale.

I just closed a short sale where the sellers were not late on their payments. They had been told by numerous real estate agents that they would never qualify for a short sale unless they went late on their payments. This is simply not true.

It is certainly easier for all parties to get the banks attention if you are late, but it does not necessarily mean you can not short sale your property.

Depending on who services and who owns your your loa,n it may be possible to indeed short sell your home without going into default.

If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Q & A: Can I Do A Short Sale If My House Needs Repairs {minor or major}?

2011-07-27T11:38:00.000-07:00

Very easy question to answer. Yes!

The condition of your property simply does not matter when considering a short sale.

What if my home is in "model home" condition? If your property is in top notch condition the bank is likely to want closer to full retail value. I would then market your property knowing that the most likely buyer of your home is someone who will live in the home themelves.

If your home is in need of major repairs, then the bank will take the condition of your home into consideration (I will make the condition known) when deciding on the value of your property, and thus the amount they will accept. In the case of a home needing major repairs, I will normally market the property to investors.

When considering a short sale, the condition of your property should not be stopping point.

If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Free Short Sale Report

2011-07-25T13:29:00.000-07:00

My instant and FREE short sale report is now available. Click here to get your copy today!

If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

What does the bank consider a "Hardship"?

2011-07-22T11:37:00.000-07:00

When you think of a short sale you most likely think of an event that causes the inability to make mortgage payments also known as a "hardship".
When short sales became popular again, the banks were more structured in what they considered a hardship. Normally this meant the complete loss of income for the borrower. These days, the banks realize that there are more reasons that constitute a hardship than just the loss of income.

I've helped homeowners short sell their properties under many hardships, including the following:

loss of income
reduction of income
need to relocate
death of family member
upside down equity
divorce
illness
bankruptcy

Many reasons that may appear not to be a hardship that a lender would accept may indeed be one.

If you need to sell your home and you are underwater on the value vs. what you can sell it for... a short sale could be the answer!

If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Q & A: Can I still short sale my home if the bank already scheduled a sale date?

2011-07-20T13:34:00.000-07:00

A really important question.

It feels like you are down to the wire when the bank has set a sale date. What are you to do? There are many thoughts running through your mind and time is the biggest one.

Simply put, if the bank has set a sale date I can still short sale your home, thus avoiding a foreclosure on your record and any deficiency judgements. The success of the short sale depends on many variables one of which is when the sale date is. I've had success stopping a sale up to 4 days before... however the more time the better!

When given limited time to stop a home from "going to auction" it takes more dedication from both parties, you and I... but it can definitely be done!

If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Amazing News For Short Sale Sellers! Number One Reason to Short Sale instead of Foreclosure!

2011-07-18T11:58:00.000-07:00

This is truly remarkable news for those considering a short sale. Passed just last week, Senate Bill 458 now makes it impossible for lenders to purse any deficiency when the home is sold as a short sale.

It's important to note that this is not the case if your home is foreclosed on. This alone makes short sales the most favorable way to get out from under an upside down home.

"C.A.R. Legal" summed it up best with this explanation:

Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder. Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale. This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units. Any purported waiver of this rule shall be void and against public policy.

Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale. A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.

Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.

If you would like to read the entire bill it can be found HERE.

If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Why was I denied a loan modification?

2011-07-15T13:04:00.000-07:00

Quite a few of my clients contact me after they are denied a loan modification, and they want to know why the bank denied them the chance to get back on track with their mortgage.

There is no answer that covers everyone situation, but here are the top reasons lenders decline loan modifications.

1. You make too much money. See, the banks don't actually give the decision making to one person who gets to use their common sense to make the decision if your loan modification is approved or not. They set up guidelines and your information and situation either fit in the "yes" area or the "no" area. If they think that you make enough money (without looking at your whole picture) they think you should continue paying... they might even think that if they foreclose you will be able to pay any deficit, even if they have to sue you for it.

2. You don't make enough money. This is a funny one really. Back when they "sold" you this loan knowing that it was an adjustable rate loan that would be more expensive later, they didn't make sure you could afford this larger payment did they? Back to the modification, their guidelines are set and if you fall bellow the amount that they have determined you need to earn, they will decline the modification even if you can explain that you will have extra income to help pay the mortgage.

3. Your paperwork did not "conform" to the standards of the lender. This could be that they wanted all tax returns and you haven't filed yet for this year... or they didn't like the proof of income you submitted.

Many people find the denial of the loan modification to be a turning point in there financial situation. Knowing that you did all you could do to keep your home is comforting. The next step is to research the benefits of a short sale to close this chapter in your life and move forward.

If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Q & A; Who are the best lenders to work with in a short sale?

2011-07-14T10:58:00.000-07:00

There are quite a few lenders I like working with. These lenders all have systems set up to handle the mass amounts of applications they receive. Many of these lenders have greatly increased improved the manner in which they handle short sale requests and the time period to get an approval.

So who are my favored lenders to work with? Bank of America, Chase, Citi, Wells Fargo, Wachovia (now Wells Fargo) and some smaller banks.

These lenders all have systems in place that provide ease of communication and that is extremely important during a short sale transaction....so this part of the banks system rates high on my list.

When short sales started gearing up again a few years ago there was a large lag time on every part of the short sale process. Communicating with a negotiator was a tedious task that often took hours if not days. I quickly realized that communication was key to success for my short sale sellers so I spent the majority of my time {still do} constantly following up with the lenders. The difference is that today the lenders also understand that communication helps on their end.

What if your lender isn't on my "favorite" list? That doesn't mean I don't like to work with them... just that I use a more "old school" approach that still gets the job done... the short sale closed for my sellers!

If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

{Part 5} Short Sale FAQ's: Hidden Benefit of Short Selling (HOA fees)

2011-07-13T11:38:00.000-07:00

I'm often asked about delinquent HOA dues and how they are handled in a short sale.

A hidden benefit of short selling your home is that they can be paid out of the proceeds that the lender receives. This means that you end up owing no HOA dues/fees after the property is sold.

Let's dig a little deeper.

There are debts that stay with the house when you sell. Two common ones are your water bill (in many areas) and property taxes. There are other debts that stay with you when you sell. A couple common ones are your back HOA dues/fees and your electrical bill. Bills that stay with you can open you up to liability even after the house is gone... even if it's foreclosed on. This means that if you let your house go back to the bank via foreclosure, the HOA will still sue you for any back HOA fees (including hefty penalties).

When a short sale is structured, all liens and debts that are attached to the home are included when figuring out the amount that the bank will accept to release you from the loan. HOA fees/dues can also be added to this amount even though they are not "tied to the house". This can be a huge benefit to the short sale seller as they will not be liable for this debt after the property is sold.

If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

Good News For Citi Short Sale Customers {$12,000 in good news}

2011-07-05T07:52:00.000-07:00

Citi is really pushing short sales and they are letting the money do the talking.

"In early 2009, Citi offered an average $1,500 to qualifying borrowers. That went up to between $3,000 and $5,000 in 2010 and finally up to an average $12,000 so far in 2011". Read this article by John Prior at Housingwire for more on this great news!

If you are considering a short sale please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

{Part 5} Short Sale FAQ's:How Long Does a Short Sale Take?

2011-07-01T16:57:00.000-07:00

A short sale depends on the approval of the lenders involved. Most times there are at least 2 lenders involved, a primary lender and a secondary. In order to close a property sale all lenders must agree to the sale. Short sale lenders agree to the sale by issuing an approval letter.

I have had approval letters in as little as 7 days and as long as 4 months. Most people believe that the second lenders take longer than the first to approve, but I've seen first lenders take longer than the seconds and vice versa. My job is to be in constant contact with all lenders to facilitate the quickest approvals. I call and email each lender at least 3 times a week so that my clients files are never forgotten or set aside. At some point in the process it is common for me to call or email at least everyday if not more.

Taking into account all that happens behind the scenes of a short sale, I advise my clients to plan for an average 90 day time frame. I normally have approvals ready to go around the 60 day mark with a planned 30 day escrow from there.

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

{Part 4} Short Sale FAQ: How do I pay for commission and other closing costs?

2011-06-29T17:30:00.000-07:00

A big worry for those thinking of short selling their home is how to pay for the closing costs and agents commissions.

The short answer is that in a short sale transaction the bank {lender} pays for all of the fees traditionally charged to the seller.

Let's dig a little deeper.

Just like in a standard transaction, a short sale has required paperwork that is provided to both sides of the transaction, the buyer and the seller. One of these papers is a "short sale addendum" or "SSA". The SSA is an important document because it outlines in detail that the bank/lender is the one who will be paying all of the sellers fees, among other items. Since the bank will be responsible for these charges, it leaves the seller with no out of pocket money to pay upon the close of escrow.

When the bank issues a short sale approval, they have already determined the amount of money that they will accept and it is included in the short sale approval letter. This letter will state a net amount of money that takes into account all of the fees and charges that they will allow to come out of their payment, including the commission and sellers closing costs. This is how the bank "pays" these items for the seller.

Pete Reese, Broker

CA Lic# 01739054

760-908-3086

reese@sale-pros.com

{Part 3} Short Sale FAQ's: Short Sales Offer Peace of Mind

2011-06-23T11:38:00.000-07:00

Just one of the ways that a short sale can provide peace of mind is that you control the process, no sheriff will show up at your door and lock you out.

A short sale is a collaborative process where the homeowner and the bank agree to work together to sell the home in the most efficient way possible. The homeowner is solely responsible for deciding which offer to sell to, and can negotiate terms that are favorable to the seller. The bank is then responsible for signing off on the deal, and allowing the home to be sold for less than what is owed.

Assuming the bank agrees to the short sale (which they definitely want to do), the foreclosure process is put on hold to allow time for the short sale to close. When the foreclosure auction is postponed, the homeowner retains rightful ownership of the home. This means that the homeowner cannot be evicted or locked out by the Sheriff department during this phase.

Conversely, if a bank proceeds with a foreclosure sale (in the absence of short sale), the bank will immediately serve the occupants with a 3 day notice to start the eviction proceedings. If an eviction is ordered, this process will culminate in the sheriff department proceeding with a "lock out" which requires the occupant to immediately leave the premises. The bank will then re-key the property and make arrangements for the personal property to be moved.

A short sale keeps the homeowner in control and is by far the better option to move on from the property.

I'm here to help. Please contact me if you have any questions or to learn more about short selling your property.

Pete Reese, Broker
CA Lic# 01739054
(direct cell phone) 760-908-3086
reese@sale-pros.com

{Part 2} Short Sale FAQ's: Bankruptcy and short sales (Can a short sale be completed if you filed for bankruptcy?)

2011-06-21T11:56:00.000-07:00

Bankruptcy and short sales: Can a short sale be completed if you filed for bankruptcy?

This is a common question I receive and the quick answer is "yes" it is possible to short sale your house if you have filed for bankruptcy.

Many times homeowners have used all of their available savings and credit to stay current on their mortgage(s) and find themselves in a position where filing bankruptcy is necessary. The issue of a mortgage that is unaffordable and/or a property that is still priced well above market value still remains. A short sale solves this issue and helps you avoid foreclosure.

There are multiple types of bankruptcy. Let's explore the 2 most common types.

Chapter 7- If you have already received a discharge, the actual processing of the short sale remains the same as a non bankruptcy short sale. If you already have a discharge from the debt, then a copy of your official discharge will need to be provided to the title company prior to closing escrow. No other steps need to be taken and the short sale would progress the same as a non bankruptcy short sale. If you have not received a discharge, then once an approval is received from the lender or lenders for the short sale, permission from the court is needed in order to close escrow. In most cases, the discharge and the approval can be timed to occur close together thus avoiding any extra steps involving the court. If this is not the case than court approval can be obtained.

Chapter 13- The process to short sale your property is the same as a non bankruptcy short sale except that the trustee and court will need to approve a short sale. I can work directly with your attorney if needed to obtain the required court documents. If your chapter 13 is already discharged, a copy of the discharge will need to be provided to the title company prior to closing escrow. The short sale would progress the same as a non bankruptcy short sale.

If you are considering a short sale and a bankruptcy, Please contact me to discuss your individual situation. There are pros and cons to consider for each individual situation and proper planning is the key to success!

Pete Reese, Broker
CA Lic# 01739054
760-908-3086
reese@sale-pros.com

{Part 1} Short Sale FAQ: Are Short Sale's New?

2011-06-17T10:08:00.000-07:00

(Today starts the series of posts to help you understand and learn more about short sales in general. I'll be talking about some of my most asked questions.)

If you would like to submit a question or if you would like to discuss your specific situation, please call or email.

Are short sales a new type of real estate transaction?

To many of us short sales seem like a new concept, but they are actually a common type of real estate transaction that tends to come and go. Back in the early 90's, when the economy slowed down dramatically, short sales were very common. More than a decade later, short sales are back.

Since short sales are not a consistent real estate transaction you might be wondering how and when they "start up". Short sales tend to be needed on a national level when home prices rise very quickly, and then fall just as fast (like what we saw in the past 5 years). On a local level, after a factory or other mass employer leaves an area short sales tend to be utilized to stabilize the local area real estate market and help homeowners that can no longer afford their mortgages and whom also can not sell their properties for what they owe.

Over the past 2 years short sales have played a large part in the economic recovery to our housing market and to the personal finances of many American homeowners. Mortgage companies continue to "ramp up" their short sale departments to accommodate the millions of homeowners who can benefit from a short sale. This trend is expected to last many years.

Pete Reese, Broker
CA Lic# 01739054
760-908-3086
reese@sale-pros.com

How Long Does a Short Sale Take?

2011-03-02T20:23:00.000-08:00

I really wish I was able to give a concrete answer for everytime I have been asked this questions. Unfortunately, each short sale is different and makes its own twists and turns before reaching a successful conclusion.

Let's start by giving you an average...... A "normal" short sale (assuming there is such a thing) typically would take 90 days from the date of listing until closing. However, "normal" is a bit of a foreign concept in the world of short sales. Here are a number of variables that can greatly impact the amount of time necessary to complete a short sale:

-Lenders/Servicers: These companies all work at different speeds. Companies like Wells Fargo, Bank of America, Wachovia, Chase, GMAC, and Citi are relatively quick and efficient. Companies like SunTrust and USBank are notoriously SLOW!!!
-Buyers: Sometimes the initial buyer will lose interest in purchasing a property the longer the approval process takes. Sometimes having a new buyer will cause the process to start all over again with certain lenders/servicers
-Method of Purchase: Cash or Financing makes a difference in this market!!
-Market Conditions: How long will it take to find a buyer? Some neighborhoods/areas sell very quickly while others may take some time to find the right buyer

Ok, so here's the bottom line.... I have had short sales that have been closed in 30 days from beginning to end. My longest short sale has been over 10 months. Most lender/servicers are making great efforts to improve their efficiency and processing systems. If you are thinking of a short sale and would like to get an idea of a time frame for your individual situation, give me a call. I'll evaluate your situation and give you a pretty accurate assessment based on my experiences.

Pete Reese, Broker
CA Lic#01739054
760-908-3086
reese@sale-pros.com

Luxury Short Sales....The Next Big Thing

2011-02-02T10:33:00.000-08:00

According to recent report that I heard on the news the other night, 7% of all homeowners in the US who have mortgages under $1,000,000 are in default. This percentage rises dramatically to 12% for those homeowners with mortgage balances over $1,000,000. To me, this is a staggering piece of information and it foreshadows what we will be seeing in the real estate market for this year and probably many more to come.

Up to this point in time, many luxury homeowners have been able to hold on to their homes because of greater resources, income, assets, etc.. However, the real estate market meltdown has affected luxury homeowners just as drastically as the first time homebuyer. Many luxury homeowners have begun to realize that their homes are not worth nearly what they were worth when they purchased them. Now, they are faced with a dilemna. Should they continue to fund an underperforming asset or should they cut their losses and move on? Many are now choosing the latter.

Many luxury short sales are classified as strategic defaults. The homeowner may be able to piece together the resources to continue making the payments, but are unwilling to put up with so much negative equity.

Mark my words, luxury short sales will be increasing dramatically in 2011!

If you are interested in discussing your own situation, feel free to call or email me at anytime....I look forward to hearing from you!

Pete Reese, Broker
"The Short Sale Pro"
760-908-3086 (p)
reese@sale-pros.com
Lic# 01739054

Short Sale: What if I have 2 lenders?

2011-01-26T13:17:00.000-08:00

A very common question. Most homeowners today have a first and a second lender. Many of those are with 2 different lenders. The majority of short sales I have completed have involved 2 lenders. You are not alone and a short sale can work for you.

When starting the short sale process I immediately identify how many loans a property has and what is owed. Once we work though the short sale process I negotiate with one or both of the lenders.

There are two ways that I will structure your short sale:

#1- When you can sell your home for enough to cover the first but not the second, ie. if you owe $250,000 on a property that is worth $225,000 than the first property would get the full amount if $200,000 and I would negotiate a lesser amount for the second lender so that they will release your lien and a successful transaction can occure. In this scenario I am only negotiating with the second lender. This is often a quicker transaction as there is only one lender to work with.

Often times the amount the home is worth {the amount a buyer would actually pay} is less than both the first and second.

#2- In this scenario let's say your home is worth $225,000 but you owe $300,000. The first is owed $250,000 the second is worth $50,000. I would then negotiate with both lenders to accept less than the payoffs for both loans again creating a successfully closed transaction.

80% or more of the short sales I handle have 2 loans. Within the last year lenders in second position have become a lot more responsive to shorts sales and the process has been much smoother for all parties.

Thinking of doing a short sale for your house? Call or email me today!

Pete Reese, Broker
CA License #01739054
760-908-3086 (p)
reese@sale-pros.com

Loan Modification Denied....What Next?

2011-01-24T19:58:00.000-08:00

This can be a very frustrating and scary time of uncertainty. Let's walk through some options....

#1. Pay your mortgage. This one seems logical enough. If you are current on your mortgage then you would continue to pay the original monthly payment. For most homeowners who initiated a loan modification this is not an option. You are either already behind on your payments or are in danger of falling behind on your payments in the near future.

#2. Foreclosure. If you are unable to or choose not to keep your mortgage payments current your house will eventually be foreclosed on by the bank. Aside from damage to your credit, this can also be a costly problem when you consider potential tax and financial liabilities from deficiencies. Deficiencies are the loss that the lender/servicer will realize if they were to foreclose.

Here is a basic example:

$300,000 Mortgage Amount

$150,000 Sale Price of Home at Foreclosure Auction

Deficiency = $150,000 ($300,000-$150,000=$150,000)

So how does this deficiency come into play? Well, depending on the type of loan you have, your lender may attempt to recover this deficiency from you after a foreclosure sale.

#3. Short Sale. A short sale puts the disposition of your house back in your hands, and more importantly, allows you to negotiate the best outcome for your financial future on many fronts. With a short sale, a deficiency may still exist (like in a foreclosure), depending on the type of loan you have (recourse or non-recourse) but many times it is possible to negotiate a solution with your lender that will have them forgive any potential deficiencies. Sometimes the lender will do this on their own... other times the borrower will have the ability to get the deficiency waived by contributing some funds at closing or signing a very low interest rate promissory note for a small fraction of the deficiency. The beauty of a short sale is the direct line to the lender and the ability to negotiate what is best for you, the borrower.

If a deficiency is not addressed, and simply ignored by the borrower, the lender can pursue the borrower for this difference. The lender may be able to win a judgment against the borrower which could lead to liens or wage garnishment. For many reasons, it is always best to deal with a potential deficiency "head-on". The best way to do this in most cases is via the short sale.
If you have some questions about your individual situation (whether a deficiency could apply to you) or any questions about short sales, give me a call or email at anytime! I look forward to talking to you!

Pete Reese, Broker
Sale Pros
"The Short Sale Pro"
760-908-3086 (p)
reese@sale-pros.com

Short Sales For Tenants and Landlords

2011-01-20T10:20:00.000-08:00

Due to the depressed housing market we find ourselves faced with in Southern California, most all properties are worth considerably less than they were at the peak of the market. Rental/Investment properties make up a large segment of these homes. Many investors/landlords are facing the same struggles that owner occupant homeowners are facing. For this reason, the Short Sale has become an ideal tool for landlords/investors to move on from their upside-down homes or negative cash flow investments.

As part of any successful short sale, a qualified buyer must be located. Tenants of these rental properties often times make the ideal buyer for numerous reasons. To start, the tenants are very familiar with the home and in most cases really enjoy the properties they are renting. In addition, these tenants did not purchase real estate at the peak of the market which negatively impacted so many. Also, with the current popularity of FHA & VA loans, down payments can be as low as 3.5% or 0% respectively.

I have brokered numerous successful short sale transactions in which the tenant purchased the home they were renting. Whether you are a landlord or a tenant of a home in foreclosure, and you would to discuss this further, please call me on my cell phone, 760-908-3086

Please note, I can handle this type of transaction anywhere in California!!

Pete Reese, Broker
Sale Pros
CA Lic#01739054
760-908-3086
reese@sale-pros.com

New Short Sale Listing - Rancho Bernardo Condo, Priced to Sell

2011-01-13T11:19:00.000-08:00

16238 Avenida Venusto #A

San Diego, CA 92128

$229,900

2bd/2ba

1230sf

Ground Floor

Many HOA Ammenities

Detached 2 Car Garage

Slate Flooring

Lower level end unit in the Mira La Paz complex. Unit features slate flooring in kitchen, neutral color paint throughout, patio, and a detached 2 car garage. Large trees and mature landscaping add to its appeal. Very close access to I-15 make this an ideal location for commuters going in any direction. Hurry, this won't last at this price!!

Give me a call immediately if you are interested in viewing this property!

Pete Reese, Broker

CA License #01739054

760-908-3086 (p)

reese@sale-pros.com

New Short Sale Listing - Beautiful Vista Home, Immaculate & Priced to Sell!

2011-01-10T14:36:00.000-08:00

1939 White Birch Drive

Vista, CA 92084

$399,900

4bd/2.5ba

2189sf

Built 1989

New short sale listing today! Beautiful home nestled in the Chateau Del Norte community. Expansive living room w/ cathedral ceilings, formal dining room, separate family room open to the kitchen, and a large backyard ideal for entertaining. Upstairs complete with 4 bedrooms & 2 baths perfect for a large family. Don't miss your opportunity to own this truly outstanding home!

If you or anyone you know may be interested, please give me a call at 760-908-3086. Hurry, this one won't last on the market a long time!

Pete Reese, Broker
760-908-3086 (p)
Sale Pros
License #01739054
reese@sale-pros.com

California New Law for 2011 - Deficiencies

2011-01-06T11:00:00.000-08:00

California has added Section 580e to the Code of Civil Procedure for 2011. This section of the Code of Civil Procedure bans 1st position lenders from pursuing short sale sellers for any deficiency balance.

Ok, so what does all this mean? If you are a seller of a short sale property, many times the servicer will include some verbiage in their approval letters that specifically states that they are providing a full release. Or, if the current mortgage was used to purchase the property as a primary residence, the seller has nothing to be concerned with. However, some lenders refuse to include a full release in their short sale approval letters. With this new section of the civil code added, short sale sellers can be assured that they will not be pursued for any deficiencies in a short sale transaction.

In my opinion, this bit of legislation increases the usefullness of a short sale as a financial tool...especially to those who have refinanced their 1st mortgage or have a 1st mortgage on an investment property.

Are you still confused about what this means for your situation? Give me a call at 760-908-3086 and I would be happy to discuss it any anytime!

Here is the full text.....if you are interested:

580e. (a) No judgment shall be rendered for any deficiency under a note secured by a first deed of trust or first mortgage for a dwelling of not more than four units, in any case in which the trustor or mortgagor sells the dwelling for less than the remaining amount of the indebtedness due at the time of sale with the written consent of the holder of the first deed of trust or first mortgage. Written consent of the holder of the first deed of trust or first mortgage to that sale shall obligate that holder to accept the sale proceeds as full payment and to fully discharge the remaining amount of the indebtedness on the first deed of trust or first mortgage.

(b) If the trustor or mortgagor commits either fraud with respect to the sale of, or waste with respect to, the real property that secures the first deed of trust or first mortgage, this section shall not limit the ability of the holder of the first deed of trust or first mortgage to seek damages and use existing rights and remedies against the trustor or mortgagor or any third party for fraud or waste.

(c) This section shall not apply if the trustor or mortgagor is a corporation or political subdivision of the state.

Pete Reese, Broker
Sale Pros
760-908-3086 (cell)
reese@sale-pros.com
License #01739054

New Short Sale Listing - Oceanside Townhouse

2011-01-04T11:44:00.000-08:00

Here is a little information about one of my newest short sale listings:

3680 Harvard Dr., Oceanside, CA 92056

-End unit Townhouse 1350sf
-3bd/2.5ba
-Fenced rear patio area
-2 story unit - 3bd/2ba upstairs; living room, dining room, kitchen, and 1/2 bath downstairs
-Extra Clean!!

Price to sell at $169,900

If you are interested in viewing this property, just give me a call at 760-908-3086

Pete Reese, Broker
Sale Pros
License #01739054
760-908-3086 (p)
reese@sale-pros.com

Happy New Year Everyone!!

2010-12-31T09:51:00.000-08:00

I just wanted to take a brief moment to wish all my readers a Happy New Year!! 2011 is coming whether we are ready for it or not.

Have you been thinking about a short sale, but have been putting it off? Now that 2011 is finally here, it is a perfect time to get your financial affairs in order. Take a moment to give me a call or send me an email to get the ball rolling on your short sale. I'll run with it from there and make sure everything is handled as efficiently as possible.

Don't forget....with the goverment HAFA program, many homesellers are qualifying for a $3,000 incentive paid by their lender at the close of escrow to help with moving costs!! Don't let your home go to foreclosure while there are much better alternative available.

Happy New Year!!

Pete Reese, Broker
"The Short Sale Pro"
760-908-3086
License #01739054

What Paperwork Will Be Needed For A Short Sale?

2010-12-14T13:56:00.000-08:00

The two most important aspects of a short sale are the marketing of the property and the compiling of paperwork. While the property marketing has been explained in detail in previous posts, the paperwork needed should not be overlooked. In most all cases, the lender(s) will require that the seller produce documentation in order to evaluate the short sale request. The lender's goal is to ensure that the seller does not have a tremendous amount of assets or income that would rule out the need for a short sale.

While this paperwork varies from lender to lender, here is a common list of paperwork that the lender will request from the seller in order to process the short sale:

1. Pay Stubs - Normally the last 2
2. Bank Statements - Normally 2 months
3. Tax Return - Normally 1 year...sometimes 2 years worth
4. Financial Statement - Most lenders have their own form that they will require the seller to fill out. This form details income/assets/expenses of the seller
5. W-2's - normally the last year

***If the seller is self-employed, the seller is usually requested to produce a basic year to date profit & loss statement instead of the pay stubs and W-2
***Married couples that are both on the loan, are each required to provide paystubs & W-2's

As it turns out, many sellers were asked to provide this same information when they applied for a loan modification. While the lenders may already have this information, they will still request that we send it to them again during the short sale process.

As always, give me a call at anytime to discuss your individual situation!!

Pete Reese, Broker (lic #01739054)

"The Short Sale Pro"
Sale Pros
760-908-3086 (cell)
reese@sale-pros.com

Notice of Trustee Sale......Is it Too Late for a Short Sale?

2010-12-14T13:37:00.000-08:00

So, you've received a posting on your door of a "Notice of Trustee's Sale". This simply means that your lender/servicer has decided to take the next step on the foreclosure process. After receiving this notice, the home can be auctioned in not less than 21 days from that notice.

Can a short sale still be started at this point? In many cases, there still is time to get a short sale done. Many lenders will agree to postpone a foreclosure sale as long is there is a short sale in progress. The key to getting the foreclosure sale postponsed in most cases is to get a solid offer on the property. Once you've reached this stage, time is of the essense. The home must immediately placed on the market and the homeseller must begin right away compiling the documentation that the servicer will require to evaluate the short sale.

While I cannot guarantee that a servicer will postpone a foreclosure sale, I have been able to pull this off on many occassions. To discuss your individual situation, please feel free to give me a call at anytime!!

Pete Reese, Broker (lic #01739054)
"The Short Sale Pro"
Sale Pros
760-908-3086 (cell)
reese@sale-pros.com

HAFA - What are the Qualifications??

2010-12-09T09:40:00.000-08:00

Many homeowners have an interest in pursuing a short sale through the HAFA program. Below are the main questions that must be asked to determine eligibility for this program:

1) Is your home your primary residence? In other words, if you have multiple residences - do you spend most of your time in this residence?

2) Is the amount you owe on your first mortgage equal to or less than $729,750? (Do not include the total of your second mortgage.)

3) Are you having ongoing financial trouble that makes it difficult for you to make your mortgage payments each month?

4) Did you get your current mortgage before January 1, 2009?

5) Is your monthly payment on your first mortgage (including principal, interest, taxes, insurance and homeowner's association dues, etc) more than 31% of your current gross income?

If your answers to all five of these questions are "yes", then it is very likely that you qualify to receive assistance through the HAFA program if your lender participates. If you answered "no" to one or two questions, you may still qualify. To be sure, contact your lender's local office.

As with any short sale questions you may have, feel free to give me a call or email at anytime!

Pete Reese, Broker
"The Short Sale Pro"
760-908-3086 (cell)
reese@sale-pros.com
http://www.cashortsalebroker.com/

FAQ's for The Mortgage Debt Relief Act of 2007

2010-11-15T10:55:00.000-08:00

Taxes are one of the most important considerations when deciding whether to move forward with a short sale. Many sellers find themselves being able to benefit from the Mortgage Debt Relief Act of 2007. Here is a brief overview of this important piece of legislation directly from the IRS website:

If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable.

The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.

To read up further about this legislation CLICK HERE. As always, please consult with your CPA or tax attorney when evaluating your individual situation.

Do you have any Short Sale questions??? Give me a call or email me at anytime....I am here to help!

Pete Reese, Broker
CA License #01739054
Sale Pros
760-908-3086 (cell)
reese@sale-pros.com
http://www.cashortsalebroker.com/

Property Taxes and Short Sales???

2010-11-12T13:42:00.000-08:00

Property taxes always seem to be an initial topic of conversation with my prospective sellers. Most of the time, property taxes are unpaid and the sellers are concerned that they will have to pay these back taxes before the property can be sold.

However, this is not the case in most all situations. The property taxes will generally be paid out of the proceeds due to the lender from the sale. At times, the lender will even pay the County directly to settle the property tax bill if the borrower is delinquent. Eventhough it takes 5 years of missed property tax payments for the property to be sold by County at a tax sale, many lenders want to ensure that they do not risk the property being sold by the County...they would lose all value in the property in this case.

To summarize, the homeowner will NOT be required to pay for any delinquent property taxes out of pocket. If you have any other short sale questions, feel free to call or email me at anytime!

Pete Reese, Broker
License #01739054
760-908-3086 (cell)
reese@sale-pros.com
http://www.cashortsalebroker.com/
Twitter: @PeteReese

New Short Sale Listing Today! 3bd/2ba, Pool, Rancho Penasquitos

2010-11-05T10:27:00.000-07:00

11245 Linares St., San Diego, CA 92129

As an extra feature of my blog, I am going to be posting new short sale listings as they are put on the mls....sometimes even before. Here is a brief description of this new listing I just added to the MLS today:

Fantastic Location! Ranch style home perched on a small hill overlooking the surrounding area. Below ground pool and spa adds to the great entertaining space in the backyard. 3bd/2ba, attached 2 car garage, mature landscaping, open floorplan. Priced for immediate sale!

Priced to sell at $364,900

Here is a link to some additional information and photos

If you or anyone you know would like to view this property, please give me a call at 760-908-3086

Pete Reese, Broker
Sale Pros
"The Short Sale Pro"
760-908-3086 (cell)
reese@sale-pros.com
CA Broker Lic#01739054
http://www.cashortsalebroker.com/

Short Sale Video - CBS News - Just Over a Minute Long

2010-10-29T08:58:00.000-07:00

This is a well done brief segment that gives an overview of the short sale process.....recently aired on CBS News.

As always, give me a call or email me at anytime to review your own situation....I am here to help!

Pete Reese, Broker
"The Short Sale Pro"
Sale Pros
760-908-3086 (cell)
reese@sale-pros.com
http://www.cashortsalebroker.com/

Notice of Default Filed......Now What?

2010-10-28T10:14:00.000-07:00

So you get the dreaded "Notice of Default" posted on your door and sent to you in the mail. It's not the end of the world, but it is a time to get serious in evaluating your current situation. The Notice of Default is the first official step that a lender takes in the foreclosure process in the state of California. At this point, the actual foreclosure sale is nearly 4 months away from occuring (at the earliest). In fact, many of the largest lenders will not file the Notice of Trustee's Sale (their intent to sell the property at the foreclosure auction) until all other possibilities have been exhausted.

Although you have time to take the proper steps for your individual situation, the time is now to get going on your plan. Most homeowners and lenders will first try to work out a loan modification to keep the borrower in the home. If you are interested in a modification, but haven't been answering your lender's phone calls, make contact with them IMMEDIATELY. Tell your lender clearly that you need to apply for a loan modification and get them the needed paperwork they will require right away. Procrastinating on this step at this point in the process could ultimately lead to the lender foreclosing on the home. The lender needs to feel that the borrower is interested enough in a loan modification to make it work.

Sometimes, for various reasons, a loan modification cannot be worked out, or is not a feasible long term solution for the borrower. In this case, a short sale is normally recommended as the next best alternative to avoid foreclosure. Whether you are 5 days from the foreclosure auction or simply missed a payment, a short sale is possible. I have been successful in getting the foreclosure auction postponed on numerous occassions when taking a short sale listing only days before a scheduled foreclosure auction.

To summarize, the Notice of Default is a good wake up call to get your plan into action....simply ignoring it will could only lead to negative consequences for you. Call or email me at anytime to discuss your individual situation....I am here to help with all your short sale needs!

Pete Reese, Broker
Sale Pros
License #01739054
760-908-3086 (cell)
reese@sale-pros.com

Who's Your Lender(s)?

2010-10-26T10:41:00.000-07:00

Who's your lender(s)? This is normally one of the first questions I ask when interviewing a prospective client. This key part of the equation makes all the difference when determining the ease at which a short sale can be accomplished. For the purposes of this blog post, I will not dive into specific lenders and their shortcomings or strengths, rather a general commentary on how the lender plays into the process.

Some of the largest lenders have become extremely proficient at processing short sales. They now have efficient systems in place that allow me to get responses on our short sale offers very quickly. These are generally the same lenders/servicers that are logical in their requests and realistic so deals can be put together. On the flip side of the coin, there are still lenders/servicers that are incompetent in their short sale processing systems and make negotiations much harder than they need to be.

As short sales become more and more common in the marketplace, most lenders/servicers are trending towards improved short sale systems that make the process much easier for everyone involved.

Give me a call or email me to discuss your lender(s). I would be happy to give you my personal insight and let you know how easy (or lengthy) the short sale process can be.

Pete Reese, Broker
"The Short Sale Pro"
760-908-3086 (cell)
reese@sale-pros.com
http://www.cashortsalebroker.com/

Financial GURU Seeks Short Sale of Own Home

2010-10-25T12:14:00.000-07:00

The Sacramento Bee recently ran an interesting article that details the financial guru Tom Sullivan and his own short sale journey of his Multi Million dollar home. The Fox Business Network anchor is struggling with the same issue that faces MANY homeowners in this extremely depressed economic climate.

Tom Sullivan and his wife purchased their home in 2004 for $2.5 Million. Currently, the home is listed for $1.15 Million. Even after putting a sizable down payment of over $1/2 Million into the intial purchase, they are still deeply underwater in their current mortgage. Sullivan moved to New York to become an anchor for Fox Business News in 2007, and is stuck trying to sell his home that has lost over $1.3 Million in value.

If you find yourself in a similar situation to this finamcial guru, don't be ashamed. Most short sale situations are a result of bad timing in a real estate market that simply collapsed. To discuss your individual situation, call or email me at anytime....I can help!

Pete Reese, Broker
"The Short Sale Pro"
760-908-3086 (p)
reese@sale-pros.com

Deficiencies.....What Are They?

2010-10-20T10:35:00.000-07:00

You may here the term "Deficiency" in connection with short sale or foreclosures. So what exactly does this mean? The Deficiency is the loss that the lender/servicer will realize in these types of transactions. Here is a basic example:

$300,000 Mortgage Amount

$150,000 Sale Price of Home at Foreclosure Auction

Deficiency = $150,000 ($300,000-$150,000=$150,000)

So how does this deficiency come into play? Well, depending on the type of loan you have, your lender may attempt to recover this deficiency from you after a foreclosure sale. In the case of a short sale, this deficiency may still exist depending on the type of loan you have (recourse or non-recourse). Even if a deficiency does exist for a borrower in a short sale, many times it is possible to negotiate a solution with your lender that will have them forgive any potential deficiencies. Sometimes the lender will do this on their own....other times the borrower will have the ability to get the deficiency waived by contributing some funds at closing or signing a very low interest rate promissory note for a small fraction of the deficiency.

If a deficiency is not addressed, and simply ignored by the borrower, the lender can pursue the borrower for this difference. The lender may be able to win a judgment against the borrower which could lead to liens or wage garnishment. For many reasons, it is always best to deal with a potential deficiency "head-on". The best way to do this in most cases is via the short sale. If you have some questions about your individual situation and whether a deficiency could apply to you, give me a call or email at anytime!

Pete Reese, Broker

Sale Pros

"The Short Sale Pro"

760-908-3086 (p)

reese@sale-pros.com

Do I Still Have to Pay For My Property Taxes When I Do A Short Sale?

2010-10-18T11:37:00.000-07:00

I receive this question a lot when speaking with sellers about listing their home as a Short Sale. Property taxes that are delinquent are normally paid out of the proceeds of the Short Sale. This amount is paid directly from the short sale escrow to satisfy the County. In most all cases, the seller will not need to contribute anything financially towards satisfying the property taxes. Sometimes, the seller's lender will even pay these ahead of time in order to satisfy the county and not accumulate late fees. So, if you haven't paid your property taxes in a while, don't let that stop you from doing a short sale.

As always, feel free to call or email me at anytime to discuss your individual situation.

Pete Reese, Broker
"The Short Sale Pro"
760-908-3086 (p)
reese@sale-pros.com
http://www.cashortsalebroker.com/

California Foreclosure Timeline

2010-10-13T10:39:00.000-07:00

Please see the chart above for a very clear explanation of the California Foreclosure Timeline. The process takes almost 4 months from the date the Notice of Default is filed. However, as mentioned in my blog numerous times, this process can be stalled in most cases if working on a short sale.

As always, you are welcome to call or email at anytime with any questions related to your individual situation.

Pete Reese, Broker
"The Short Sale Pro"
760-908-3086 (p)
reese@sale-pros.com

Do I Need to Worry about a Short Sale Now that Banks are Halting Some Foreclosures?

2010-10-13T08:58:00.000-07:00

It's been all over the news the past week or so..... "Major Banks Halting Foreclosures". On the surface, this sounds great. However, the devil lies in the details. First of all, the foreclosures that are being halted are mostly in judicial foreclosure states......California is not in this category. Second, this halting of foreclosures is only temporary. Bank of America, the largest bank to announce the temporary halting of foreclosures, is hoping to have their internal issues resolved on this before November 1, 2010 (about 2 weeks away).

Unfortunately for struggling homeowners near a foreclosure sale, this will not help most. If nearing a foreclosure sale, the best solution in most cases is to immediately get going on a short sale. Many of the major lenders will delay a foreclosure sale if they have an offer on the table. I have been successful in getting a foreclosure sale delayed, and the property ultimately sold, when listing a property only days before a scheduled foreclosure sale. So, if you find yourself in this situation, give me a call or email me right away to discuss your situation. Doing so can prolong your stay in the home, and may also provide for some moving expenses being paid by your lender under the HAFA program.

Pete Reese, Broker
"The Short Sale Pro"
760-908-3086 (cell)
reese@sale-pros.com

Oh No!! My Loan Modification Failed....No What?

2010-10-06T13:59:00.000-07:00

Unfortunately I hear this one a lot. A lot of lenders seem to steer people down the loan modification path only to dissapoint them with their offer or deny the request completely. When a loan modification request has failed, here are your options as a homeowner:

1. Continue to find a way to make payments at the current rate/terms - Many times this option is not feasible
2. Resubmit the Loan Modification Request - Sometimes this request can be packaged differently to the lender who may then alter their response
3. Allow the Lender to Foreclose - Not ideal under any circumstances
4. Deed in Lieu of Foreclosure - Many times not possible if you have a 2nd mortgage or other large liens
5. Short Sale - Best option if you need to sell or move on from the home

If you've been reading my blog, you know that I specialize in short sales and am a big advocate of the short sale as a tool to help homeowners that need to sell in this market. The advantages of a short sale many times includes the following:

Less damage to your credit than a foreclosure
Ability to have more control of the process
Relocation expenses paid by the lender - under the HAFA program
Potential to eliminate any deficiencies

If you or anyone you know has an interest in talking about your individual situation as it relates to short sales, please call me at 760-908-3086 or email to reese@sale-pros.com

New California Short Sale Law for 2011

2010-10-05T11:46:00.000-07:00

The state of California is enacting some important legislation for 2011 that will limit the exposure of short sale sellers for potential deficiencies on their first mortgage. Here is a description from the California Association of Realtors (of which I am a member), which accurately describes the new law:

No Short Sale Deficiencies: Starting January 1, 2011, a seller's first trust deed lender cannot obtain a deficiency judgment against the seller after a short sale. Providing written consent to a short sale shall obligate the first trust deed lender to accept the sales proceeds as full payment and discharge of the remaining amount owed on the loan. This law applies to first trust deeds secured by one-to-four residential units, but does not limit the lender from seeking damages for fraud or waste by the borrower. Senate Bill 931.

It also should be noted the the California Association of Realtors sponsored an additional bill, Senate Bill 1178, that would extend this protection to Refinanced mortgages, but the bill was ultimately vetoed by Governor Schwarzenegger.

Short Sales are a complicated transaction that have many variables. Please feel welcome to call or email me at anytime to discuss your individual situation. Pete Reese 760-908-3086 or reese@sale-pros.com

How Do I Get Started with a Short Sale?

2010-10-04T13:56:00.000-07:00

So....you've decided that listing your home as a short sale is your best course of action. Now what?

The first thing you'll need to do is to find a competent real estate broker (or agent) to help you sort through the process and ultimately complete a successful short sale. Although this may sound easy, very few brokers/agents actually specialize in short sales and REALLY know what they are talking about.

I know I may be tooting my own horn a little here, but I put an awful lot of time and energy into my own short sale education. I read countless hours of articles and spend many hours on the phone each week negotiating these deals with the lenders directly. I truly feel like I am your absolute BEST option in Southern California for a short sale broker. Although it may be tempting to go with the agent that sold you your house, your neighbor, or your cousin.......if they don't have an extensive background in short sales you are truly asking for problems. Short sales are far different from a conventional sale and issues such as deficiencies, promissory notes, etc. could all come into play. With an inexperienced broker on your side, the advantage definitely goes to the bank. When you work with me, the advantage is yours!

What else will you need? Most banks will require financial documentation from the seller to prove that they can't afford the home any longer. Normally this request will include the last 2 months of paystubs, 2 months of checking account statements, 1-2 years of tax returns, and a letter explaining your situation. These requirements do vary considerably depending on the lender. The minute you feel yourself leaning towards the idea of a short sale, I would suggest starting to put these items aside so they are easy to get to when needed.

If you or anyone you know is considering a short sale, feel free to give me a call at 760-908-3086 or email me at reese@sale-pros.com

Is a Loan Modification Better than a Short Sale?

2010-10-01T11:17:00.000-07:00

Well....there is no "one size fits all" answer to this one. The answer lies in the individual and their situation.

I always advise any potential clients to assess their own situation carefully before deciding to jump into a short sale listing.

Would you prefer to stay in your home if your monthly payment is affordable? If the answer is "Yes" a modification needs to be explored first.

Do you really like your home and are willing to overlook the negative equity associated with it if the payments are affordable? With a "Yes" answer again....definitely explore a modification. If "No" then its time to start exploring the short sale as your next best option.

Some of the my clients have already decided before they meet me that they want to move on from their current home for various reasons. Many have simply decided that a "fresh start" is in their best interest.

Whatever your motivations, evaluate first if you would like to keep your home.....then let's talk about a short sale if you don't.

If you have any questions about the short sale process, please give me a call anytime at 760-908-3086 or email reese@sale-pros.com

San Marcos Commercial Short Sale Investor Opportunity

2010-09-30T09:54:00.000-07:00

Investors....take notice of this Short Sale opportunity. Here is your chance to own a commercial office condo in one of the premier office buildings in San Marcos! This unit originally sold in 2006 for $955,000 and is now available for $679,900 (subject to lender approval of course). This unit is truly "like new" inside. The layout features 2909sf of space including a reception area, spacious conference room, numerous private offices, walk out patios, and a large central cubicle space. The building itself is elevator serviced, has plenty of parking, and is strategically located close to the 78 Freeway.

Click here to see the information sheet

Interested in finding out more about this property? Call the listing broker, Pete Reese (me), at 760-908-3086 or reese@sale-pros.com

Luxury Short Sales Are Increasing Dramatically

2010-08-10T10:35:00.000-07:00

The next segment of our housing market in Southern California that is poised for a major expansion is Luxury Short Sales. The owners of these homes have been the last holdouts in a real estate market that has already collapsed in the lower price ranges. Many luxury homeowners purchased or refinanced their homes at the peak of the market between 2004 and 2007 and are now stuck with homes that are deeply burried in negative equity. These homeowners have fought the battle to keep their homes by attempting loan modifications with their lenders. Unfortunately, many lenders are not addressing the real problem which is negative equity. In fact, the recent efforts by the federal government to help homeowners in distress have ignored the luxury homeowner with a high mortgage balance. Many of these borrowers are now coming to the realization that they are unable or unwilling to continue to make these payments on an asset that is not worth nearly what they paid for it.

So, what is the solution for these homeowners? Either Foreclosure/Deed in Lieu of Foreclosure or a Short Sale. To me the answer is quite simple, a short sale will not result in a public record on the borrower's credit file which could negatively impact future borrowing or employment. In addition, during a short sale, the borrower has the ability to negotiate with the lender to resolve any potential deficiencies that may exist if the loan was a refinance/or cash out refinance.

Do you have a luxury home that you need some help with? Give me a call right away to setup a consultation to discuss your individual situation. I can solve your real estate problem the right way! Call Pete Reese, "The Short Sale Pro" 760-908-3086 or email reese@sale-pros.com

Buyer/Investor Opportunity! Approved Short Sale....Buyer Just Backed Out

2010-07-22T13:56:00.001-07:00

A Terrific opportunity now exists for a buyer that is looking for a great home in a wonderful community:

8754 Gracilior Place, Escondido, CA 92026

This is a short sale that is now approved at $360,000 but the buyer we were working with backed out for personal reasons.

Click the link to see the information sheet on the home

If you or anyone you know has interest, give me a call at 760-908-3086 to setup an immediate showing!

The Importance of Pricing a Home Correctly in Today's Market

2010-07-15T09:38:00.000-07:00

Pricing a home for sale is more of a science than an art form in most areas. Most real estate agents make a big deal about their skills to get a home sold for top dollar. However, in reality, a home will only sell when it is priced correctly....regardless of a real estate agent's best efforts.

So what is the best way to determine a list price for today's market? My formula is simple....but highly effective:

Step 1: Determine the 3 most similar/recent sales in the immediate vicinity of the subject. If a model match is available, this should be give the most weight. If a model match is not available, average the value of the three homes

Step 2: Take the value from Step 1 and subtract 5%

Step 3: Review current comparable listings that the home will be competing with.....adjust list price if necessary

You may ask, "Why deduct 5% from the average of the 3 sales to determine the list price.....won't you be listing below market?" Unfortunately, the Southern California real estate market is beginning to dip again after some recent stabilization in prices. Listing inventories are beginning to grow and only the best priced homes will get offers. A 5% deduction from recent sale prices will normally do the trick.

In a short sale, time is normally a very critical factor in generating offers. In most cases, we must generate an offer quickly in order to put the brakes on the foreclosure process with the seller's lender(s). If an offer is not achieved in the first 14 days, I normally suggest an additional 5% reduction per week until we receive an offer.

So there you have it....a simple, but highly effective strategy for pricing a home correctly in our current market.

If you would like to get started on the short sale process, call or email me at anytime...I am ready to get to work for you!! reese@sale-pros.com or 760-908-3086 (cell)

Fannie Mae Encouraging Delinquent Borrowers to Short Sale Instead of "Walking Away"

2010-07-09T13:54:00.000-07:00

Fannie Mae has recently announced its intent to sue delinquent borrowers that walk away from their mortgages that still have the ability to pay them.

Fannie Mae's Goal:
“We really want to encourage borrowers to pursue alternatives to foreclosure,” said a Fannie Mae spokeswoman, Janis Smith.

Translation: Fannie Mae prefers that the delinquent borrower work with them on a short sale as opposed to letting the home be foreclosed. The losses to Fannie Mae can be dramatically lessened by the borrower working with them on a Short Sale.

In my opinion, a short sale is the very best way to deal with a problem property in todays market. Call or Email me at anytime to discuss your individual situation. I am ready to help!!

Short Sale Your Home and Buy Again in 2 Years...New Fannie Mae Policy

2010-04-28T20:19:00.000-07:00

Fannie Mae, the government backed giant that underwrites a large portion of the loans generated in the US, has just announced a new policy to help those recently affected by the depressed housing market. Two years after completing a short sale, homebuyers will become eligible for a new mortgage with a 20% down payment. If a situation such as a job less, medical issue, etc. can be documented, the down payment requirement can drop to as low as 10%.

If a homeowner chooses to allow their home to be foreclosed on, the mandatory waiting period is curently 5 years. Although buying a new home may be the last thing on your mind right now, in 2 years your situation could be drastically different. To top it off, home prices will most likely still be very low compared to their historical highs. Take the first step and give me a call to discuss your situation. Being proactive now can preserve your ability for home ownership in only 2 years. As always, I can be reached on my cell phone at 760-908-3086 or by email at reese@sale-pros.com

An Auction Date is Scheduled.....Is it Too Late to Start a Short Sale?

2010-04-21T11:30:00.000-07:00

The scheduling of the foreclosure auction is one of the final steps before the home is sold on the courthouse steps. However, it is NOT too late to start a short sale. We have had a great track record of getting these auctions postponed.....even when we take over days before the auction is scheduled.

The key is for us to immediately get to work! The lender will not postpone the auction unless we submit a FULL short sale package including a bona fide offer. A full short sale package also includes financial information and paperwork from the seller. As long as the seller is efficient in getting us the paperwork we need right away, we are usually able to persuade the lender to postpone the foreclosure auction.

If you are currently in this situation, please give me a call immediately. I will get to work right away in taking the steps necessary to complete your short sale package so you can avoid foreclosure. As always, feel free to call me on my cell phone at 760-908-3086 or email me at reese@sale-pros.com

New California Law - Mortgage Forgiveness Debt Relief for California Gross Income

2010-04-13T12:47:00.000-07:00

Take a look at some details of the new law which puts California in lockstep with the Federal Mortgage Forgiveness Debt Relief Act. Here are some excerts from the Franchish Tax Board website regarding this new law:

On April 12, 2010, SB 401, the Conformity Act of 2010 was enacted. It allows taxpayers who had all or part of the loan balance on their principal residence forgiven by their lender to exclude the forgiven debt from California gross income. The new law applies to discharges of qualified principal residence indebtedness on or after January 1, 2009, and before January 1, 2013.

California law conforms, with modifications, to federal mortgage forgiveness debt relief for discharges that occurred in tax years 2007 through December 31, 2012. The amount of qualifying indebtedness is less than the federal amount and California imposes a state-only limitation on the total amount of relief excluded from gross income. The following summarizes the differences between the federal and California provisions. Federal provision applies to discharges occurring in 2007 through 2012, and:

Limits the amount of qualified principal residence indebtedness to $2,000,000 for taxpayers who file as married filing jointly, single, head of household, or widow/widower, and to $1,000,000 for taxpayers who file as married filing separately.
Does not limit the debt relief amount; it only limits the indebtedness amount used to calculate the debt relief amount.
See the federal law Mortgage Forgiveness Debt Relief Act and Debt Cancellation for more information.
California provision applies to discharges that occurred in 2007 through 2012, and:

Taxable years 2009 through 2012
Limits the amount of qualified principal residence indebtedness to $800,000 for taxpayers who file as married/registered domestic partners (RDP) filing jointly, single, head of household, or widow/widower, and to $400,000 for taxpayers who file as married/RDP filing separately.
Limits debt relief to $500,000 for taxpayers who file as married/RDP filing jointly, single, head of household, or widow/widower, and to $250,000 for taxpayers who file as married/RDP filing separately.
Taxable years 2007 and 2008
Limited the amount of qualified principal residence indebtedness to $800,000 for taxpayers who file as married/(RDP) filing jointly, single, head of household, or widow/widower, and to $400,000 for taxpayers who file as married/RDP filing separately.
Limited debt relief to $250,000 for taxpayers who file as married/RDP filing jointly, single, head of household, or widow/widower, and to $125,000 for taxpayers who file as married/RDP filing separately.

This is a giant step for the State of California to remove another obstacle for distressed homeowners.

As always, if you would like to discuss your own situation, or have any questions about Short Sales, feel free to call or email at anytime! Pete Reese, Broker 760-908-3086 or reese@sale-pros.com

Government is now Encouraging Short Sales with HAFA

2010-04-07T10:18:00.000-07:00

Short Sales are in the news again. The front page of the North County times on Easter ran the article, Government Aims to Help "Underwater" Homeowners

The article discusses the HAFA, Home Affordable Foreclosure Alternatives program that the Treasury Department launced on Monday. The process laid out by HAFA is designed to make the short sale process much more efficient, and it provides specific incentives for all parties involved to see these short sales through.

If you have been struggling to make your payment, have recently been turned down for a modification, or are "underwater" in your home, feel free to give me a call at anytime to discuss the short sale process. Each situation is different, but I am able to point most people in the right direction. Call Pete Reese, "The Short Sale Pro" at 760-908-3086 or email reese@sale-pros.com

CNN Money states, "Don't Foreclose, Do a Short Sale"

2010-03-30T10:13:00.000-07:00

An article recently posted by CNN Money, title "Don't Foreclose, Do a Short Sale" backs up many of the key points I have been trying to get across in my Short Sale blog. Lenders are becoming more and more open to short sales, and are approving them at an astonishing pace. To the lender, a short sale is far more desirable than a foreclosure because they lose much less money. To the borrower/seller, a short sale is far more desirable than a foreclosure due the lesser impact on credit and the ability to control the process.

The article also talks about the government's increased role in the short sale process and the incentives they are now providing to lenders and sellers to see these deals go through. Most lenders have increased their short sale processing staffs exponentially in order to handle the anticipated flood of activity that they will see.

If you are struggling to make your payment, or have decided it does not make sense to keep a home that is deeply "underwater", give me a call at anytime to discuss your situation. Pete Reese "The Short Sale Pro" 760-908-3086 or reese@sale-pros.com

Foreclosure Filings Rise Nearly 20% in February

2010-03-25T13:40:00.000-07:00

According to the foreclosure tracking service ForeclosureRadar.com NOD filings in the State of California rose nearly 20% in February 2010 to a total of 31,004 filings. This paints a bleak picture for the overall health of the housing market in California. The NOD is the first step in the foreclosure process and is normally filed after the borrower is 3 or more payments late. In addition, these filings often times indicate a situation where the borrower has not qualified for a loan modification, so foreclosure may be imminent. Even if the borrower found the money to bring their loan current, many are choosing to walk away because they are so far upside down.

Based on these latest numbers, it appears that our housing market has not recovered yet, and we could be in line for future depreciation. In my opinion, the best way to avoid foreclosure is to sell your house by means of a short sale. If you have a loan modification that failed, or simply would like to move on from your home, give me a call at 760-908-3086 or send me an email at reese@sale-pros.com to get started right away.

Do you Qualify for HAFA???

2010-03-23T13:18:00.000-07:00

HAFA is coming....the new government program that will speed up the short sale process for many borrowers. The Treasury department has posted a new website that simplifies some of the complex details of the program:

www.WhatisHAFA.org

Here is an excert from the site which goes through the potential eligibility for this program:

Do you qualify for the HAFA short sale program? Unfortunately, not everyone does. To qualify, you must own a home that was purchased before the year 2009. In addition, you must be living in the home as your primary residence, and must have been previously considered for other foreclosure prevention options including loan modification.

Borrowers must also meet HAMP eligibility, but can be either delinquent or current on their mortgage payments. Even if current, the borrower must be able to demonstrate financial hardship.

Here are a few questions to ask yourself to determine your eligibility:

1) Is your home your primary residence? In other words, if you have multiple residences - do you spend most of your time in this residence?

2) Is the amount you owe on your first mortgage equal to or less than $729,750? (Do not include the total of your second mortgage.)

3) Are you having ongoing financial trouble that makes it difficult for you to make your mortgage payments each month?

4) Did you get your current mortgage before January 1, 2009?

5) Is your monthly payment on your first mortgage (including principal, interest, taxes, insurance and homeowner's association dues, etc) more than 31% of your current gross income?

If your answers to all five of these questions are "yes", then it is very likely that you qualify to receive assistance through the HAFA program. If you answered "no" to one or two questions, you may still qualify. To be sure, contact your lender's local office.

If you are considering the idea of a short sale, I can help you navigate this very complicated world. Give me a call at 760-908-3086 or email reese@sale-pros.com

Wachovia Mortgage Holders.....Great Opportunity!!!

2010-03-18T15:48:00.001-07:00

Do you have a Wachovia or World Savings mortgage?

Wachovia just announced a revolutionary new program to help homeowners that currently owe more than their homes are worth. Here are some of the details of this tremendous pilot Short Sale program:

-Fast Track Approvals - 14 days or less
-No Financial Paperwork Required
-No Defficiency Judgements
-No Promissory Notes
-OK to be current on payments....or, OK to be late

Thinking of a Short Sale??? Now is the Time. I have direct contacts at Wachovia that allow me to facilitate these deals as efficiently as possible.

Is a Short Sale Possible without Being Late on Payments?

2010-03-16T10:31:00.000-07:00

It used to be that the only way a lender would consider a short sale was for the homeowner to be late on their payments. However, over the last couple of years, the rules have begun to change drastically. In most cases, lenders are not requiring the seller to be late in order to approve a short sale. As a short sale listing broker, my job is to present your situation to your lender and demonstrate why you need to sell. The lender will normally take this reason(s) into consideration and will accept it as a legitimate hardship.

So, the bottom line is that in regards to getting your short sale approved, it is OK to be late, or OK to be current on your payments.......it really doesn't matter much to the lenders anymore in approving a short sale if the situation is presented properly.

If you would like to discuss your individual situation, please call or email me at anytime...I am standing by to Help! 760-908-3086 or reese@sale-pros.com

Does Fannie or Freddie Own Your Mortgage?

2010-03-13T14:58:00.000-08:00

As you've may have been reading on my blog and other information on the news, the Obama administration has been advocating many different programs for either loan modifications or short sales. A key piece of information that your servicer normally will not share with you is whether your mortgage is owned by Fannie Mae or Freddie Mac. In some cases this information is crucial in determining the exact gameplan for dealing with your individual situation. I have included links to the Fannie Mae and Freddie Mac loan lookup tools which will let you know if either of these organizations owns your mortage:

Fannie Mae Loan Lookup Tool

Freddie Mac Loan Lookup Tool

As always, if anyone out there would like to discuss their individual situation, give me a call at 760-908-3086 or email reese@sale-pros.com. I am here to help!!

The Time is Now For a Short Sale

2010-03-09T19:33:00.000-08:00

As many of the largest mortgage servicers in the country have now lifted their foreclosure moratoriums, the foreclosure timeline has begun to tick again for those homeowners severly late on their payments. Many homeowners continue to attempt to negotiate loan modifications, but are meeting with mixed success.

The fundamental problem with loan modifications is the value of the home. Most homes in Southern California have dropped 30-50% off their peak values leaving a tremendous amount of NEGATIVE equity. Unfortunately, most servicers are NOT reducing the principal balance of these mortgages. Until this happens, many homeowners will choose to move on from their home which has been weighing them down.

I know I may be a little biased, but I truly believe the short sale is the best way to move on. It helps to preserve credit, and it allows the homeowner to exit on their terms.....as opposed to being forcefully removed by the Sherriff after a foreclosure.

So, if you would like to discuss the short sale process and your individual situation, give me a call at anytime 760-908-3086 or email reese@sale-pros.com

Does the Seller Have to Pay Commissions in a Short Sale?

2010-03-08T19:53:00.000-08:00

The simple answer is no. Your lender understands that if you are selling your home by Short Sale, there is no money to pay commissions. Therefore, the mortgage holder/servicer will pay my commission. The bottom line to the seller is no money out of pocket in most cases.

For anyone out there considering a Short Sale, here are a few bullet points about my service that sets me apart from other real estate agents:

No cost to the seller

Deal directly with me....not one of my assistants

Cancel your listing at anytime. The seller is in control

Always available by cell, email, or text

Friendly, Knowledgeable, and Tech Savvy

As always, if you are interested in exploring the idea of a Short Sale, contact me at anytime at 760-908-3086 or reese@sale-pros.com

New Property Listing....Rustic Farmhouse on 8.9 acres

2010-03-05T09:45:00.000-08:00

I just listed a bank owned property last night that may look interesting to someone out there reading my blog. This home can best be described as a "Fixer". The home needs light fixtures, plumbing fixtures, cabinets, appliances, drywall repair, painting, deck repair, and probably a number of other misc items. The location of the home is very remote in North San Diego County in an area of Fallbrook known as Deluz. The list price of $299,900 should ensure that this property will sell quickly!

Financing may be a concern with this property due to its current condition....Cash buyers are welcome. Here is some more information about the home:

http://www.postlets.com/res/3479730

If you would like to setup a showing, please call 760-908-3086 or email reese@sale-pros.com

A Notice of Default was Just Filed on my House. Is there Time for a Short Sale?

2010-03-03T09:52:00.000-08:00

In most cases....Yes!!

In the state of California, the lengthy foreclosure process really begins with the filing of the Notice of Default. The servicer will have this filed to get the clock ticking to force some sort of resolution. In some cases, the servicer will push the homeowner towards a loan modification. Unfortunately, many homeowners are not qualifying for these loan modifications because they cannot document their income or their income has decreased drastically. Also, many homeowners have decided that they would rather free themselves from their properties in which they owe way more than they are worth.

Regarding the timing of the Notice of Default, the homeowner has over 3 months until the auction date is scheduled. Many times, a servicer will also postpone or cancel the auction if they have a short sale package submitted prior to the auction sale date, but this is NOT guaranteed.

California Foreclosure Timeline:
NOD Filing - Notice of Default - This is normally filed after the borrower has missed 2-6 mortage payments (varies according to the servicer)
TSN - Trustee Sale Notice - Post 90 days after the NOD is files; a filing that schedules the Trustee Sale 21 days after posting
Trustee Sale - Foreclosure Auction - Property is sold back to the original servicer or other investor; Title is transferred to new purchaser or back to the servicer

Although there is time, this situation must be addressed immediately. If you think a short sale could be the right solution for you, call/text 760-908-3086 or email reese@sale-pros.com to setup a time to discuss your individual situation.

Mortgage Bankers Association of America Short Sells their Corporate Headquarters!

2010-03-01T14:41:00.000-08:00

I stumbled upon an interesting article on Banktalk.org which discusses the fact that the Mortgage Bankers Assocation of America chose to Short Sale their corporate headquarters in Washington, DC. This wasn't just any short sale either.....the MBAA owed $75,000,000 and sold it for $41,300,000.

Again, this article illustrates again that a short sale is merely a financial tool that can be used sell when there is no equity.

If you would like to discuss a short sale in detail, feel free to call 760-908-3086 or email me at reese@sale-pros.com anytime.

Is It Possible to do a Short Sale with More than 1 Mortgage?

2010-02-25T08:35:00.000-08:00

Why yes it is! In fact, most of the sellers I work with do have more than 1 mortage on their property. In some cases, the 2nd mortgage is the only lien that is being sold short, while the 1st mortgage holder will get payment in full. In either case, a short sale is the right tool to use in most circumstances to accomplish the sale of a home where you owe more than it is worth.

In our process, a full package is submitted to every lender that will need to approve a short sale from the beginnning. The response time for getting an approval varies from lender to lender. But just to reiterate, banks are VERY open to short sales these days, and have a vested interest in seeing them get done.

If you have an interest in discussing short sales in further detail, I can be reached at 760-908-3086 or reese@sale-pros.com Also, visit my website www.CAShortSaleBroker.com for more information on the short sale process.

Is it Possible to List Your Home without a For Sale Sign in the Yard?

2010-02-22T11:04:00.000-08:00

The answer is Yes! Most brokers that I know will not agree to this, but I understand that many sellers prefer to conduct a short sale as privately as possible. Therefore, if you are a seller that does not want to "notify" your neighbors that you are doing a short sale, I take the following steps:

-No for sale sign in the front yard
-No mention of "short sale" in the public MLS comments (this information will only be seen by other brokers & agents)
-Limited "Active" MLS marketing; For most of my listings, I am able to generate market value offers in under 14 days. After we have a solid offer to work with, your home is placed in "Pending" status which means no further showings.

If you would like to discuss your options relating to a short sale, please give me a call at 760-908-3086 or email me at reese@sale-pros.com. Also, visit my website, www.CaShortSaleBroker.com for additional information.

How Long Does The Short Sale Process Take?

2010-02-19T09:22:00.000-08:00

Well....I wish I had a concrete answer for this question. The fact is that each lender/seller/situation is different.

To start with, different lenders have different procedures and timeframes. Some lenders like Wachovia are VERY Short Sale friendly and can process their approvals in under 14 days. Other lenders (Bank of America) are completely overwhelmed with Short Sale requests and may take up to 6 months in order to respond with an approval letter. In addition, if there are multiple mortgages and liens on the property, this typically extends the time needed to get the approvals necessary to complete the sale.

In the current market, the MLS marketing of the property can be done very efficiently. I am able to generate current market value offers on most of my listings in under 14 days. After we have a solid offer, I can make your listing "Pending" on the MLS so you are not bothered by continued showings of your house.

If you would like to get the Short Sale process started, email me or give me a call! 760-908-3086 or reese@sale-pros.com

Also, feel free to visit my website www.CAShortSalebroker.com

Strategic Default on Wall Street....

2010-02-10T18:50:00.000-08:00

I stumbled upon an interesting article by Sharon Secor on Gather.com detailing how Morgan Stanley sold multiple properties by Short Sale because they were purchased "at the top of the market". Definitely interesting reading if you have a minute. Here is the link to the article....

Strategic Default: Smart Business On Wall Street, But Unacceptable On Main Street?

If you would like to discuss your own situation, give me a call on my cell phone at anytime, 760-908-3086 Also, please feel free to browse my website www.CAShortSaleBroker.com

Having Trouble With A Loan Modification? - Here Are 3 Tips

2010-02-09T10:32:00.000-08:00

As you may know, I do not offer loan modification services. However, the process for getting a loan modification is similar to processing a short sale request for many banks. If you are handling a loan modification yourself, follow these 3 basic tips in order to get your loan modification through the process:

-Make sure you submit ALL the documentation that your lender/servicer requested. If you omit certain documents, the servicer could delay or deny your modification request
-Be Persistent! Setup a reminder in your calendar to call your servicer 2 times a week to get an update...."The squeaky wheel gets the grease"
-If the servicer's first offer is not acceptable....negotiate! If you are planning to agree to a modification the servicer has proposed, make sure you work out the best deal possible for yourself. You may be able to negotiate better terms by offering an initial payment

If you have been denied for a loan modification, or would like to schedule a time to discuss your individual situation in regards to a short sale, give me a call on my cell phone, 760-908-3086, or email me at reese@sale-pros.com.

HAFA - What is it????

2010-02-08T08:44:00.000-08:00

HAFA is short for Home Affordable Foreclosure Alternatives Program. HAFA is an initiative aimed at borrowers that are not eligible for the Home Affordable Modification Program (HAMP) HAFA provides guidelines for Short Sales as a tool to avoid foreclosure for the borrower.

Key Features:
-Allows borrowers to receive pre-approval of their short sale from their servicer
-Releases borrowers from future liability from the first mortgage debt (no cash contribution, promissory not, or deficiency judgment is allowed).
-Allows $1,500 for borrower relocation assistance
-Allows for 120 days to market the home for sale as a Short Sale
-Servicer must respond within 10 business days of receiving the complete Short Sale Package

HAFA only applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac which will issue their own versions of HAFA in the coming weeks. Here is an updated list of servicers that are participating in HAMP & HAFA

http://www.makinghomeaffordable.gov/contact_servicer.html

As you can see, HAMP and HAFA are complex programs. But, these programs illustrate the government's willingness to encourage Short Sales as preferred tool for homeowners to avoid disclosure. If you would like to discuss your individual situation, call me on my cell phone, 760-908-3086, or email me at reese@sale-pros.com

Luxury Short Sales

2010-02-05T08:59:00.000-08:00

Many of the short sales and bank owned properties that have sold in Southern California in the past couple years have been entry to mid level homes. This is all about to change..... The luxury real estate market, which has been struggling with extremely high inventory levels and an impass between buyer and seller expectations, is beginning to see a large increase in Short Sale listings. Many homeowners in this category are beginning to realize that their home is not worth what it was 3-5 years ago. The only viable exit strategy, in my opinion, is to utilize a short sale. Of course, foreclosure is an option too, but the impact on credit is substantial. Also, a homeowner can typically have much more control of possible tax and deficiency issues when using a short sale.

Banks & Servicers are now VERY motivated to complete short sales on luxury properties. The time is now to investigate this option!

If you would like to schedule a time to discuss your individual situation, give me a call on my cell phone, 760-908-3086, or email me at reese@sale-pros.com.

Strategic Default.....What is it???

2010-02-04T09:44:00.000-08:00

Many people who purchased homes in Southern California between 2003 and 2007 are severly "underwater" in their properties. In other words.....they owe much more than what they are worth. A strategic default is when a homeowner decides to sell their property by short sale in order to break free of their home. A strategic default is a business decision that many homeowners are choosing to make instead of waiting for market conditions to recover. Some experts are estimating that the market will not recover to previous levels for another 10 years.

Only you can decide if a strategic default is for you. If you have some questions, or would like to discuss the short sale process, give me a call on my cell phone at 760-908-3086 or email me at reese@sale-pros.com

Revolutionary Short Sale Program for Wachovia Mortgage Holders

2010-02-03T10:53:00.000-08:00

Wachovia just announced a revolutionary new program to help homeowners that currently owe more than their homes are worth. Here are some of the details of this tremendous pilot Short Sale program:

-Fast Track Approvals - 14 days or less
-No Financial Paperwork Required
-No Defficiency Judgements
-No Promissory Notes
-OK to be current on payments....or, OK to be late

Thinking of a Short Sale??? Now is the Time. I have direct contacts at Wachovia that allow me to facilitate these deals very efficiently.

*****If you originated your mortgage with World Savings or Golden West, there is a good chance you are now being serviced by Wachovia

Call 760-908-3086 (cell) or email me at reese@sale-pros.com to discuss this amazing opportunity.

CASH BUYERS.....Send Me Your Information

2010-02-02T10:28:00.000-08:00

Are you a cash buyer interested in picking up some deals in this depressed market? Give me a call or email me your information. Sometimes deals fall apart at the last minute because buyers are unable to close the transaction for various reasons (financing, change of situation, etc.) I will put your information into my database and email you any properties that I am listing where I need a cash buyer to step in.

Send emails to reese@sale-pros.com. Please put "cash buyer" in the subject line

Loan Modifications....Making Home Affordable

2010-02-01T09:20:00.000-08:00

A short sale is not for everyone. Many homeowners love their homes and are willing to put up with the negative equity if they can get their mortgage payment adjusted to a reasonable level. The government has enacted a program known as "Making Home Affordable". Here is the link to the government's Making Home Affordable Program:

http://makinghomeaffordable.gov/

Take the Making Home Affordable questionaire to see if you may qualify......

I don't handle loan modifications, but this is great information if you are thinking about going this route.

Why does a "short sale" have to be such a "long sale"?

2010-01-31T10:19:00.000-08:00

It doesn't have to be that way! Short Sales, when done properly, can be an efficient & streamlined process. Many agents don't have a system to process short sales efficiently. In addition, many lenders are beginning to streamline their processes substantially.

If you are considering a short sale, please give me a call or send me a quick email. I would be happy to discuss with you how I am different from most agents that only "dabble" in short sales. You need an expert that specializes in short sales and has a system to efficiently accomplish your goal.

Call me anytime, 760-908-3086 (cell) or email me at reese@sale-pros.com

Do you have a Toxic Asset?

2010-01-29T12:49:00.000-08:00

If you are like most people, your home is your largest asset. What if you owe much more on your home than it is worth? Are you prepared to ride out the market until values recover? I've recently heard many "experts" projecting that home values may not recover to their peak values in Southern California for another 10 years!!!! OUCH!! If you bought your home from 2003-2007 you could be feeling the pinch.

Since your home is your largest asset, what is your strategy? Are you prepared to "go down with the ship", or are you willing to make some tough choices to deal with the problem head on? Everyone's situation is different, but many are deciding to take advantage of the financial tools available to us, and have decided to Short Sale their home in order to free themselves from the financial burdon of their own Toxic Asset. I can't make the decision for you, but if you'd like to discuss your options.....give me a call or shoot me an email at anytime.

Why would a bank agree to a short sale???

2010-01-28T11:02:00.000-08:00

I get asked this question a lot!! The bottom line is that a short sale is far less costly to the servicer/investor than a foreclosure is. In addition, the government has been pressuring the servicers to do whatever they can to avoid having to foreclose. They key here is to adequately explain to the servicer what the current situation is, and why you will not be able to sustain the payment of the current loan(s). It's kind of like qualifying for a loan in reverse.....when submitting a short sale package, the servicer will require some basic financial information in order to access the situation.

I have a lot of experience in putting together short sales. Give me a call (760-908-3086) or email me reese@sale-pros.com to discuss your situation. I can let you know pretty quickly if a short sale could be the right answer for your individual situation.

2010 is shaping up to be the year of the Short Sale

2010-01-27T20:25:00.001-08:00

I read this interesting post today in the Wall Street Journal, Why 2010 Could Be The Year of the Short Sale, by Nick Timiraos. Banks are really beginning to streamline their short sale processing. Deals are much easier to put together than even a year ago.

If you are thinking about a short sale of your home....now is the time. Lenders and servicers are more eager than ever to cooperate with you on a short sale.

Call or email me anytime to discuss your situation and your options.

Short Sale Mania

2009-06-30T06:30:00.000-07:00

Just wanted to give everyone a heads up that we'll be listing a bunch of short sales real soon here. If you've been searching for a home for any amount of time or following the pending lists, you've noticed that most of pending home sales are short sale's.

Our bank owned properties are going into escrow within days (normally right after the waiting period set by the bank to review offers) and with multiple offers. The last 2 properties had 15 and 16 offers when all was said and done.

Short sales are seeing the same. We had 10 offers and a fair amount over asking. The tide has definitely changed in regards to short sales.

The banks are really getting their act together with regards to the way they process short sales. The challenge remains with coordination of the second mortgage.... but it's getting better. The key to a successful short sale is still the initial package and pricing the property right from the start.

Please contact us at (760) 908-3086 or BrokerPete@caSHORTSALEbroker.com if you are considering a short sale for your property.

New REO's On The Market... Going Fast!

2009-06-28T08:40:00.001-07:00

Quick Update!

We've listed a bunch of new properties lately... unfortunately for our blog (but good in all other ways) they've gone into escrow before they've made it on the blog.

I do keep a list with our ready buyers and I alert them as soon as we know they are coming on the market... so if you are in the market for a bank owned property, please send me an e-mail and I'll add you to the list so you can get priority notification.

Other news around the Sale Pros Office is that we've added a new REO Buyers Agent. Kyle Hill is our newest team member. He will be specializing in working with bank owned Buyers and military clients. Having been in the Marines and purchasing a bank owned propery himself, it was a perfect fit!

Our newest listing is a Bank Owned Condo in San Marcos! Check it out here!

We are continuing to go grow in many ways. We are offering solutions for Real Estate Pro's with our 100% commission more at http://www.joinsalepros.com/ .

Till Next Time!

Heather Reese, Manager
Sale Pros Realty

2 New REO Listings!

2008-08-15T08:56:00.001-07:00

Hello Everyone!

We just listed 2 more REO's and wanted to give you all first notice!

3630 Lake Circle Dr., Fallbrook

Bank Owned *REO* in Beautiful Lake Rancho Viejo!
Priced to sell at $330,000!

This home features a large backyard with no rear neighbors!

4 Bedrooms
3 Baths
Built in 2001
2,254 s.f.
2 car garage

32036 Del Cielo Oeste Unit# 6a, Bonsall
Bank Owned *REO* Condo!

This condo is a bargain priced at $124,900

2 bedrooms
2 baths
971 s.f.

To see this or any bank owned property in San Diego, Riverside or Orange County...call (760) 908-3086

If you are looking to purchase a bank owned, REO call Sale Pros Realty, REO Division! We have bank owned Buyer Agent Specialist waiting for your call! (760) 908-3086

Brand New Listing! Fallbrook REO, CAR ENTHUSIASTS LOOK HERE!

2008-06-21T22:20:00.000-07:00

Offered at the unbelievable price of---- $520,000
This home with amazing views was just listed! Contact us today for a private viewing!

REO...BANK OWNED PROPERTY!!! PRICED TO SELL!! Very Unique Property w/ XL Workshop of almost 2000sf, VIEWS, large 4 car carport, attached 2 car garage, long driveway, privacy. Assessor record shows 2bd, but house has 3bd. SOLD AS-IS