Tag Archives: Short Sale

Temecula Valley, Is It Time To Sell?

IS IT TIME TO SELL?

The real estate market in the Temecula Valley is showing more than just signs of recovery. More and more equity sellers are putting their homes on the market and selling their homes in a short period of time and at a higher price than we have seen in years. Foreclosure sales are still relevent but not in the record numbers that the media has given hype over. Short sale listings are scarce. Mortgage rates are ridiculously low. Buyers are everywhere and Realtors (including ourselves) are pounding the pavement looking for something to sell them!

Is it time for you to sell?

We can provide a professional opinion on potential value for your home to help you make that decision. We can be reached at 951-522-0518 April or 951-522-6308 Gary. Our email address is team4greer@gmail.com

The graph below is a snapshot of California in general. Keep in mind that some parts of California (Temecula included) tend to outpace others.

Team_Greer-com

Short Sale Video

Have you fallen behind on your mortgage payments, and don’t know what to do? Watch this brief video, and find out what a Short Sale is, and why it may be the solution you have been searching for.

Then contact us at (951) 522-0518/ (951) 522-6308 or team4greer@gmail.com for a FREE consultation to find out if a Short Sale is right for you.

This quick video tells about a short sale in the simplist of terms.  Keep in mind however that some banks do not even require the 3 items this video suggests.

http://youtu.be/49sS88Cbsc8

Who Might Qualify For HAFA?

 The Home Affordable Foreclosure Alternatives (HAFA) Program is a government sponsored program that allows borrowers (homeowners) that are in financial trouble to avoid foreclosure either through a short sale or a deed in lieu of foreclosure. The program is designed to be implemented either after the HAMP loan modification has failed or (as recently amended) is in process as an option to sale. There are different guidelines to the program dependant on whether or not your loan is a Fannie Mae/Freddie Mac or a non government sponsored enterprise (GSE). The combination of these holders equates to more than 90% of the home loans out now so it is a program that should continue to grow in success as servicers and real estate professionals embrace and help implement it for their clients. The program not only offers up to $3,000 in relocation funds to the borrowers on a successful closing but also provides financial incentives to the servicers and first lien investors for their cooperation.

Overview of the basic guidelines for eligibility is as follows:

  • The property must be your principle residence. Property can be vacant or rented up to 12 months prior to the Short Sale Addendum(SSA), as long as you can prove that it was your primary residence and that you have not purchased a 1-4 unit family property in those 12 months.
  • The mortgage loan is a first lien originated on or before January 1, 2009.
  • The mortgage is delinquent or default is reasonably foreseeable.
  • The current unpaid principle balance is $729,750 or less. (Higher amounts apply to 2-4 unit properties).
  • Borrower must be able to sign a Hardship Affidavit (or in some cases write a Hardship Letter explaining the circumstances of financial distress).
  • Your lender has agreed to be a part of the HAFA/HAMP program.
  • You have to be able to provide clear and marketable title.
  • You have to sign an “arms length transaction” affidavit.

    Investors are allowed to implement their own standards in addition to these so it is impossible to detail every possible scenario.

 Overview of the basic incentives of the program is as follows:

  • An option to foreclosure becoming a part of your permanent history.
  • Uses a standard process, documents and timeframes.
  • Servicer must reply to an executed contract within 30 days.
  • Provides financial incentives of up to $3,000 for your relocation.
  • Requires you to be fully released from future liability for the first mortgage debt and if a subordinate lien holder receives a payment from the first lien holder to enable the transaction, that debt as well. (Forgiven debt could have tax and credit rating impact…you are advised to seek financial and tax advice from a professional.)

So in a nutshell it appears to be a great program that the majority of homeowners facing financial difficulty will at the very least need to be considered for. Please consult with a professional Realtor in your area about your circumstances and the current value of your home for information detailed to your situation. You will be advised to seek legal advice since a short sale is not always in the best interest of every homeowner. If you live in Temecula, Murrieta, Wildomar, Lake Elsinore, Menifee or Winchester that professional Realtor is us! We’d love to talk with you about your situation and see how we can help. April (951) 522-0518 or Gary (951) 522-6308 or email us at teamgreer@tarbell.com

Tarbell Realtors is not associated with the government and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.

 

 

 

HAFA Update Effective February 1, 2011

 

The Home Affordable Foreclosure Alternatives (HAFA) program will continue to grow and change as the market conditions change.   It’s very important for Real Estate Professionals to stay on top of these changes to help their clients through potential loan modifications and short sales if and when the client deems them a necessary course of action.

  In December 2010 a handbook  was issued by the Treasury (version 3.0) for Servicers of Non GSE Mortgages.  This means the program that details the HAFA guidelines for loans that are not owned or guaranteed by Fannie Mae or Freddie Mac.  It also specifically applies to Loan Servicers that have signed a HAFA participation agreement (which includes 90%+ of the loans in effect).

The changes to this handbook are here Supplemental Directive effective February 1, 2011

If you know of someone who is having trouble paying their mortgage or you find yourself in a financially distressed situation.  Please take action today.  Don’t wait another minute.  You need help and we know that asking for that help is the hardest step to take.  Take a deep breath and pick up the phone…(951) 522-0518 or (951) 522-6308.  If sending an email is easier teamgreer@tarbell.com

We want to help.

Your Short Sale & Commission, Who Pays?

In a standard real estate transaction –closing costs (including the sales commission) are deducted from the Seller’s equity in the home. Pretty straight forward. Looks a little like this, overly simplified:

$ 350,000 Home Sales Price

$ -150,000 Loan(s) on House

$ -21,000 Closing Costs

$ 179,000 Balance to Seller

However in the Short Sale transaction it becomes confusing to the average Seller. In fact we’re finding that the public in general does not have a clear understanding of what a short sale is, how it works, or let alone where the closing costs including commission comes from. It leads Sellers in financial distress to believe that they can’t afford a professional Realtor to sell their home because they don’t think they have a way to pay them. Wrong!

The short sale simply IS that- the Seller doesn’t have the equity, means, money, savings, etc. to pay anyone fully in the sale of their home. Empty pockets!

When we sign a listing agreement with you to sell your home and we know we are in a short sale situation- yes we do put in a commission rate but we also include a disclaimer that we understand that payment of the commission is contingent upon your bank coming to agreeable terms with you (Seller). This agreement includes them accepting less than what is owed on your mortgage(s) because you are upside down in your house including closing costs. In fact some Sellers just need help to cover the closing costs alone.

Here’s the simplified scenario:

$ 350,000 Home Sales Price

$ -375,000 Loan(s) on House (including back payments, penalties, etc.)

$ -21,000 Closing Costs

$ -46,000 Negative Balance (Short Fall) This is what we will have to negotiate with your bank to absorb in the sale of your home.

Obviously it is a little more complicated than that and everyone’s scenario is different. However the goal is always the same…to sell your home under mutually agreed upon terms by you and your bank.

Team_Greer-com

What is a Short Sale?

Some commonly refer to the short sale as the sale of the upside down house. And while that is a great analogy it may not make a lot of sense to someone outside of the mortgage and real estate business. So here is the definition in its simplest terms.

A Homeowner is “short” when:

When a homeowner (borrower) owes an amount on their property that when combined with closing costs and commission is higher than current market value.

A “short sale” occurs when:

A negotiation is entered into with the homeowner’s mortgage company(s) to accept less than the full balance of the loan at closing. Once agreed upon, a buyer closes on the property and the property is “sold short.”

Obviously there is a great deal more to it than that…but that’s where it starts.

If you are needing to move or are having financial difficulties that are getting in the way of your ability to pay your mortgage we can help you assess your situation from a professional viewpoint. Selling the home “short” or losing the home are not your only options!  Call us at 951-522-0518 or email at april@teamgreer.com.  We’re here to help.

Team_Greer-com

What is a CDPE?

 


A Certified Distressed Property Expert® is a real estate professional with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market, specifically Short Sales.

The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. The developers of the CDPE Designation believe that the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional (that’s us ). We have the tools needed to help homeowners find the best solution for their situation. Often, when other options have been exhausted, CDPEs can help homeowners avoid foreclosure through the efficient execution of a short sale.

While enduring financial difficulties is challenging for any family, the process of finding a qualified real estate professional should not be. Selecting an agent with the CDPE Designation ensures you are dealing with a professional trained to address your specific needs.

CDPEs don’t merely assist in selling properties, we serve and help save our clients in need. If you would like more information about what a short sale really is, please pick up the phone and call us at (951) 522-0518.

Sincerely,


Short Sales, Market Update 2010, Temecula


Often I have conversations with Realtors, family and friends that involve questions about short sales or uneducated statements about short sales. Statements like “I wouldn’t buy a short sale because they take too long and then never go through” to “I avoid the short sale listings because they’re a waste of time”. For some the general consensus is that they aren’t selling and that is the furthest thing from the truth. Of course with a few keystrokes in the Realtor driven MRMLS I can get a very quick synopsis of the short sale market.

If you are wondering how the short sale market is shaping up in the City of Temecula, here are some numbers to wow you.

These numbers represent Temecula addresses (including unincorporated custom home areas) from January 1, 2010 to approximately July 31, 2010

487 Closed Sales

Ranging in price from $70,000 – $ 1,122,784

178 Sales Pending

(Presumably with bank approval)

228 Sales Accepting Back up Offers

(Presumably waiting on bank approval)

Some quick math tells me that there are nearly 900 short sales that have successfully closed and/or are in process right now since the first of the year. That’s in sharp contrast to the 467 bank owned sales that are in process or have taken place in the same period of time. And believe it or not there are still folks out there with some equity…we’ve had 389 standard sales so far this year as well.

If you have questions about the Temecula Real Estate Market please feel free to call April at (951) 522-0518 or Gary at (951) 522-6308.


Information in this post was taken from the MRMLS and is deemed reliable but not guaranteed.