Real estate is not always an easy venture to be involved in. Mortgages are huge loans, and monthly payments can be extremely steep. Especially with the trend a few years back to give out sub-prime mortgages, there have been a lot of foreclosures lately. But foreclosure should be avoided at all costs.

So let's assume for a moment that you are unable to make your mortgage payments. You become a defaulted owner. Now what? Well, typically, your lending institution will foreclose its mortgage. If this happens, not only will you lose your property when it goes back to the bank, you will lose all your equity. In addition, foreclosure reduces your credit rating, leaving a permanent stain on your credit account. This can be extremely hard to remove, and may prevent you from ever borrowing again. Finally, you may even have to pay taxes on the debt reduction amount. So in trying to save money, you've only added another expense to your list of bills. All in all, foreclosure is a bad deal for you.

There are two main types of foreclosure, foreclosure by judicial sale and foreclosure by power of sale. In the former, the court supervises the sale of the property. In the latter, the bank or mortgage holder sells the home. In a strict foreclosure, not in use in all states, the bank would assume the deed of the defaulted mortgage, without the obligation to sell. This method is less popular as few banks want to become landlords. Usually, by whatever means, the foreclosure involves the sale of the property.

If you are unable to make your mortgage payments, or in any other way are unable to fulfill the obligations of your lending contract, it is best if you sell your real estate as soon as possible. This may mean selling at a much lower rate than market value, however as a homeowner, you may be able to retain some equity from your home, and you will definitely save your credit rating. This is very important for your future real estate purchases, and just about anything else in your life. By selling your home yourself, with or without the help of an agent, you are keeping the power in your hands. Even if you come out of it with no equity, the chances of losing money is slim unless your home has become totally derelict. Even then, you are still better off selling it yourself than allowing a foreclosure to go ahead.

While in a stressful situation such as mounting debt, it can seem like the easy thing to drop everything and run. But as I've outlined, it is never to your advantage to let a property foreclose. The key to saving yourself from this fate may be an honest analysis of your expenses. If you can see a problem coming, you have more time to act on it. Rather than waiting to the last minute, put your home up for sale as soon as you suspect you will have trouble making payments in the future. The more time you have to sell, the more likely you'll walk away with a fair price for your property. You may even be able to find another, cheaper home, and nobody will have been the wiser that you narrowly escaped financial disaster.

Antonio Atoche
310-345-1513
antonio@atocherealestate.com
www.upsidedownlosangeles.com
For more information visit https://www.google.com/

Short Sale Information and Favorable Laws in 2012 for California Homeowners

Short Sale Related Laws you should know about as a homeowner

SB 931 Deficiency Waiver on First Mortgage

When First mortgage holder of your loan accepts full payment and satisfaction of all your outstanding first loan from the successful completion of  the sale of your home, your lender is  is prevented from pursuing a deficiency against you even after a short sale. This is great news! What this means to you as a homeowner in California is that this releases you from further liability (deficiency) when the bank accepts and approves your short sale. Click here to read information on SB 931 and see how this may apply to your individual situation. At any rate, whenever you are negotiating a short sale, it would still be beneficial to have your real estate agent ask for the lender to issue a short sale approval letter with the verbiage indicating a waiver of future deficiency and no promissory note.

SB 458 Second Mortgages- Release of Liability after completing a Short Sale in California by 2012

Effective as of July 15, 2011, California homeowners who sell their homes through a short sale and who have subordinate loans such as home equity line of credit (heloc) or fixed secondary mortgages, are now extended the protection against deficiency. This means that if your second lender agrees to the short sale, your lender must accept the proceeds from the short sale as a payment in full of the outstanding balance of the loans. This means that if you are a homeowner in California who sells your home in a short sale that the bank has approved, you will be released from liability (deficiency) not only on your first mortgage (SB 931) but also on your second mortgage under SB 458 in the event that the bank accepts and approves the short sale event.  Receiving short sale approval is not enough, you would have to complete the short sale. Click here to read information on SB 458 and  consult a real estate attorney see how these short sale reltaed laws may apply to your individual situation.

Short Sale Income Tax Relief from Federal Income Tax until 2012

Mortgage Forgiveness 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, short sale, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief. This applies to loans that were used to acquire, build, or improve upon on the home. Consult your tax advisor regarding how this tax relief may apply to your individual situation. If the loans forgiven were loans that you used to purchase the home (purchase money loan) or loans used to build or improve the home, most likely you would not have to pay taxes if you complete a short sale before December 31, 2012. A portion or all of the orgiven amount would be considered taxable income if the forgiven amount, or if portions of the loans forgiven were used for other purposes- i.e. cash out refinance used to payoff i.e. car loans, credit cards to pay vacation expenses, or cash to fund a new business, etc. Please consult a tax advisor.

Click here to read more information on the Mortgage Forgiveness Debt Relief Act of 2007

Short Sale Income Tax Relief from California State Income Tax until 2012

In California, homeowners who sell their home through a short sale may qualify for the California Mortgage Forgiveness Debt Relief under SB 401, which was enacted on April 12, 2010. This mortgage forgiveness debt relief act allows taxpayers who have had all or part of their loan balance on their principal residence forgiven by their lender to exclude the forgiven debt from California gross income. This tax relief for those who short sell their homes in California apply to discharges of qualified residence indebtedness on or after January 1, 2009 and before January 1, 2013 (Think until 2012). Read more about this from the California Franchise Tax Board website under SB 401.

The California Tax Relief limits the amount of qualified principal indebtedness up to $800,000 for those who file as married, joint, head of household and up to $400,000 for those who file as married/RDP filing separately. See State of California Franchise Tax Board for more details. In order to claim tax relief, your would need to file Form 540 or Form 540X for a previously filed tax return.

Consult your tax advisor regarding how this tax relief may apply to your individual situation.

Clock is Ticking. Unless, laws are extended, you only have until December 31, 2012 to complete a Short Sale

A lof of the laws that favor selling your home through a short sale in California expire by December 31, 2012. This means that if you have decided to short sell your home and qualify to avoid deficiency and not pay taxes on mortgage forgiven debt associated with a short sale, now would be the time in order to close escrow on a short sale by 2012.

Need additional information about short sales?

For a fast response, no-obligation, and confidential consultation regarding selling your home in California through a short sale, fill out contact form below.

Antonio Atoche

310-345-1513

antonio@atocherealestate.com

www.upsidedownlosangeles.com

For more information visit https://www.google.com/

Short Sales are listed to be APPROVED, and that's just what has happened...again here in La Quinta, California.

5255 Avenida Obregon, La Quinta, CA. 

Primary Residence with one note with Chase.  Sellers were relocated for work. 

Listed and approved in approx. 90 days. 

Approx. Note value: $165,000

Approved at $135,000.  Not a huge write down for the Lenders, and they were relatively quick to respond.

Remember that if you want your Short Sale to be APPROVED, choose an experienced and certified Short Sale expert in your area.  It DOES make a difference.

Is there any good reason to do your own home inspection? How about to get a better deal. Every flaw you can find is a negotiating point. You don't have to learn building codes, and you probably should use a professional inspector in any case. The point of learning what to look for is to protect yourself and get a better deal.

Home Inspection - Use A Checklist

A good home inspection checklist, keeps you from forgetting things. I have more than a hundred items on my own list. Think you could keep all these items in mind as you walk through a property? For tht matter, did you remember to look for water stains on the basement walls the last time you looked at a house? Bring a list!

Good lists are organized by area of the house, usually starting outside. Walk around and then through the home, checking each item on the list. Take notes. If a gutter is coming loose on the side of the house, write it down, along with notes about rotting wood or anything else you notice.

It doesn't matter if you don't know the difference between 12-gauge and 14-gauge wiring. You don't have to become an expert on all the building trades, as useful as this would be. You just have to use what you do know. Make a note if something looks "odd" or "smells funny." Afterwards, you can have a professional inspector take a closer look.

Home Inspection As A Negotiating Tool

many buyers make an offer on a home with an inspection contingency clause. After an inspector goes in, the buyer can re-negotiate the price based on his findings, or at least know that nothing is wrong. This isn't a bad way to go, but lowering your offer too much can often offend a seller, and blow the deal. How would you feel if somebody dropped their offer by $10,000 after they already put it in writing?

A better way is to find as many problems with the property as you can, BEFORE making the offer. A list of these problems presented with an offer is a good impersonal (therefore non-offensive) way to present a low first offer. It's a good idea to keep the inspection contingency in the offer, but you probably won't have to lower your offer this way.

There is no need to be a carpenter to note that a railing is loose. Most of us can see if a home needs new paint. Home inspection can start with simple things like these, and end with a better price for you.

Antonio Atoche

310-345-1513

antonio@atocherealestate.com

www.upsidedownlosangeles.com

For more information visit https://www.google.com/

I finally closed a Redwood City short sale that started in Sept of 2011. Yes, one year for a short sale. What was the problem? Let me count down just the top 10.

10. The sellers asked another agent in my office to sell this home as a short sale but this wonderful agent had never listed a short sale before. She asked me to help her, but by the time she did they were 2 weeks from the trustee sale date and the sellers were sitting on a perfectly good offer they thought was too low.

9. There was a first and second loan with Chase as well as a large 3rd loan which was a carry back from the previous owner. The seller wanted me to negotiate with Chase but have her lawyer negotiate with the 3rd lender.

8. The seller refused to give me any of her financial documents and said she would provide them to Chase herself.

7. The first approval came in Dec of 2011 at purchase price with 5K going to the second and 11K going to the 3rd. The seller said the 3rd lender was going to take that offer, but then the lawyer for the seller said the 3rd lender rejected the offer.

6. The buyer offered to give the 3rd lender another 10K. No response from 3rd lender. Chase said the buyer could not pay off third.

5. The approval from Chase expired, the negotiator at Chase left the country, the house was put back on the market asking for a large contribution to the 3rd. Chase said buyer could not pay off 3rd.

4. New buyer came in and offered 30K to the third on top of the old price (515K)

3. New BPO said house is worth 540-560K so Chase said offer is not high enough. Lawyer for seller and seller told me I should start negotiating with the 3rd. He said he wanted 80K from the buyer and 7K from Chase. I get him down to 50K, Chase said submit again.

2.Buyer, Chase, 3rd lender, seller all agreed to purchase price of 562K with 50K going to 3rd from the buyer and no contribution from Chase. Chase inexplicably changed their policy and will now allow the buyer to contribute to the 3rd payoff. Chase said close by Aug 31.

1. Lots of delays getting the loan funded. Aug 29th still no loan docs. Chase said after 10 trustee sale postponements they were done. Close on Aug 31 or they take the house back. Seller was in Europe but managed to come to back last week of Aug to get her things and sign off. Buyers agent got lender to fund without loan docs and we somehow managed to get buyers signed and closed on Aug 31. 

This was a tough one. Most short sales are not this hard, but the secret here was believing that no does not mean no. Not a lesson I would want to teach to my children, but in the short sale world it is a great one.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com``

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

South Bay Short Sale Specialist Sam Xavier RE/MAX Execs

Sam Xavier's Real Estate Market Trends

Hello all,

I am in a state of confusion as the listing agent doesnt seem to be asking the negotiator the right questions and my agent isnt addressing my concerns with her. We accepted a counter offer on August 22nd from B of A, same price just 1,000 dollars less in closing costs. The listing agent said we are good to go and suggested I lock my rate and order the appraisal. I was ecstatic until I started researching on my own and found out we may be nowhere near done. I thankfully could cancel the appraisal but the rate is locked and only has thirty days remaining before I have to extend. My question is we have been waiting on the approval letter and I was updated yesterday that the bank is requiring additional bank statements from the seller. Is this normal? Does anyone have any idea if we are even close to this nightmare being finished. We made original offer on the home on June 5th. Thanks for any updates or input provided.

Thanks

Jeff

I HAVE FOUND IN MY AREA IN KANSAS CITY MO & KS THAT THE PEOPLE DOING BPO'S AND GIVING HIGH APPRAISALS AE THE SAME ONES LISTING THEM WHEN THEY GO TO FORECLOSURE!!!!!!!!!! SO GET PAID FOR BPO THAT IS WRONG AND THEN GET PAID TO LIST FORECLOSURE??????   WHAT IS WRONG WITH THIS PICTURE????? IS THIS NOT FRAUD??????  I BELONG TO NAR PAY MY DUES FIGHT FOR CONSUMER RIGHTS IS THIS NOT A CONSUMERS RIGHT NOT TO BE DEFRUDED BY THE BPO AGENT?????????? FOR THE FORECLOSURE LISTING?????????? I HAD A CUSTOMER BUY A REAL APPRAISAL IT CAME IN $$$$45,000.00 LOWER THAN BPO!!!!!!!!!! NOW THISGUY SELLS REAL ESTATE AND DOES NOT EVEN HAVE A REAL ESTATE KEY!!!!!!!!!! NOT THE FIRST ONE FROM THIS COMPANY!!!!!!!! I HAVE ANOTHER AND ANOTHER BY SAME COMPANY!!!!!!!! IF IT LOOKS LIKE IAM SHOUTING??????? YES IAM WE ALL NEED TO BE SHOUTING ABOUT THEESE CROOKS!!!!!!!!!!!!!!!!!!!!

99% of Loan Modification Transfer Title…

The basic reality that needs to be understood by a homeowner is that when ANY paperwork is done on or for a loan modification there is a 99% chance that there will either be a short sale or a foreclosure.

The reason why?

Simple, other than the 1% that hit the lottery or the homeowner that gets a full rewrite or recast or alternatively a possible balance reduction on their existing loan terms, they won’t!

It is just basic math.

If it turns out 99% of loan modifications will not convert to full new loans, why exactly then do the banks keep pushing for them, why should agents help homeowners and why do homeowners want them?

Banks always want information, Agents want to homeowners and homeowners want to stay in their homes.

The possible outcomes:

2, 5 or 10 year adjustment of terms and rate. This is the best case scenario when requesting a new loan modification. The horrifying reality is this, even if the homeowner makes every single payment they will eventually hit the end of the terms. 99% of these loans modify for a second time and all the homeowner has actually done is delay the inevitable sale of their home. To be eligible for a the longer term adjustment depends on the original loan. Basically the better the original loan the better the offer on the loan modification. A loan modification will always meet an end to its terms. Further it will correct the delinquent payments on their credit and in most cases becomes a short term for a long term problem need a very real solution.

Trial loan modifications. There is a possibility of a trial loan modification becoming a short term loan modification. However the stats on homeowner not making payments even on trial loan modifications is staggering. The reality is simply this, if a homeowner gets a trial loan modification there is a 90% chance that it will go back in default (missed payment).

So the current market has created the band aid effect to get us through an election period and hopes that the economy and employment will magically all turn around.

Homeowners want hail marry passes to get to stay in their home and the banks/government are freezing the sale of REOs in an attempt to inflate home prices.

I still preach and push this basic thought: Write it off, take the loss and move on!

Its what the banks all want…

Leesa Hammond

Century 21 Amber

(310) 890-4439

mrsleesa@gmail.com

Failure Rate on Loan Modifications |Short Sale | Leesa Hammond

If you're are planning on selling your home and moving up, do your homework before offering your home for sale. Read the following story to see what can happen to home sellers who don't do their math.

A young family sold their home in California, before they determined how to buy their next house. All they thought about was moving into a larger home for their growing family.

Two years before, after this young couple purchased their first home, they bought a minivan with payments and increased their credit card debt with home furnishings purchases. Then, the wife quit working and decided to stay home with their baby. The family still had sufficient money to make all payments on time. They fell in love with a larger new model home in a nearby tract home development. The sales agent convinced them the new home would only cost them another $200 per month.

The family had no problem selling their home. To qualify for the new mortgage payment, they had to pay off the minivan, student loans, and the credit card debt. Out of their home sale proceeds, these payoffs left less than a 10% down payment for their new home.

Because of their changed income and low down payment, they didn't qualify for the new home of their choice. With only 5% down, the couple had to pay higher interest rates on a second to avoid mortgage insurance. Without the wife's second income, the total payment meant that they only qualified for a new mortgage for a home which cost less than the one they sold!

Before you put your home on the market, make sure you can buy the home you want.

Consider the following financial concerns:

Talk to a loan officer and check your credit. Don't get caught after selling your home, when it's too late, to repair any credit issues. Of course, you may have a great down payment from the sale of your home, but other bills like credit card debt, auto loans, and student loans may need to be paid off so you qualify for the new mortgage payments.

Find out how much of a monthly payment and the down payment amount you'll need to buy the home of your choice.

Do the math. How much can you expect to net from selling your home?

1.  Do you have a mortgage prepayment penalty that could eat up a significant amount of your equity?

2.  Determine selling commission expenses. Can you sell your home effectively on your own or do you need to pay 6% of your selling price for a real estate agent's expertise?

3.  Estimate your closing costs. Ask a local closing or escrow company for an estimated closing cost amount for a home in your price range.

4.  How much work does your home need to ready the property for a top-dollar sale? Which upgrades or redecorating expenses make sense financially?

Consider all the expenses of selling, determine your actual profit, match that amount to your down payment, and see how much of a home you can buy with your qualified monthly payment amount. After you do your math homework, you'll be ready to think about selling your home. Don't get caught like this young family and be forced into a lesser home.

I have to admit that I have not done any B of A COOP short sales before the one I am currently handling.  Not out of choice, it just seems that I don't get the Short Sale listings until it is long past a pre-approval situation.

This Seller, however, was only a couple months late and had contacted B of A and been turned down for Loan Mod.  I took the Condo listing after explaining that we would ask B of A for a COOP as it appeared they would qualify.  Primary Residence, one note with B of A.  Anyway, I had a list number in my mind from comps..

Two weeks after being assigned to an Agent at B of A, I had a List Price assigned.  It was just below my own numbers so I knew it was good.  The List Price is critical as we all know and I have heard that the COOP can start out way too high.  This one didn't.  Relieved, I got a cash offer within 2 days, submitted all to Equator and off we go. 

It did take a few weeks to get a response..and that surprised me since the Investors had already approved the net numbers, but there you go.  We got our approval letter in approx. 4 weeks, opened Escrow and are due to close in approx. 2 weeks.  The entire process has been much smoother than anticipated and best of all???

Seller to receive a pre-approved relocation fee of $5,000!  That's fantastic when the Condo's value is $53,400!

All in all..a good experience.  Another Palm Springs & La Quinta Short Sale moving toward close from the Valley Short Sale Specialist.

Has anyone experienced this?

On August 10, Greentree, as second lien holder, sent conditional approval for $20,0000, with deadline of  Sept. 21. They  were told that CITI as the 1st lien holder will only approve $8,500. Greentree negotiator said to send her CITI approval in writing once received.

CITI grants written approval Sept 5 ---enough time to meet Greentree's deadline...but when Greentree was called to give them CITI's approval, Greentree negotiation said it's too late, that the file was just moved the file to Recovery (next step before collections) . Recover said  they will accept $37K to satisfy the loan/lien. However, because the previous negotiator gave a conditional approval August 9, they will accept the $20K, provided that this is not HAFA. So we have to go back to CITI to make this a non-HAFA short sale.

BUT....has anyone experienced this before? Where in the middle of negotiation with Greentree, and having a deadline to respond by Sept 21, they change gears and write off the loan and send it to Recovery Dept with the threat of submitting the loan to Collections. And that Collection will go after the entire $124K owed?

Need help in finding out how to address beyond getting CITI to re-do the short sale approval, and getting contributions to payoff Greentree.

According to the tax relief law, the homeowners were able to exclude certain debts that were considered as income by the IRS. But all those who are planning to benefit from these need to be aware of the fact that this tax break is about to expire on December, 31st, 2012 and that a foreclosure or a short sale may take many months to complete. During the housing crisis and during a time when the mortgage rates are at their lowest levels, a window is soon closing on the most important tax-relief provisions that have been enacted by Congress for all the financially needy homeowners.

Presently, the previous law is still in effect (that which was passed in 2007) and it still allows the struggling homeowners to exclude the amount of debt that is cancelled by the lenders until December, 2012. However, it is most likely that the financially strapped homeowners will certainly persuade the banks to either foreclose their real estate property or sell it off for an amount that is less than what they’re worth. This doesn’t mean that the struggling homeowners who are finding it difficult to hold on their properties should let go of their homes due to the pending tax cuts under the Mortgage Debt Relief Act, this is certainly something that needs your attention.

Under the Mortgage Debt Relief Act, any kind of borrowed money won’t be reported as income that you’re obligated to repay the amount but whenever the lender cancels an amount, this is considered as income by the IRS and therefore this becomes taxable. For instance, if you owe $250,000 and the mortgage lender forgives about $50,000 of the debt when you refinance for $200,000, then this is known as income ($50,000). With a combined tax rate of 36%, you will owe at least $18,000 as taxes. Under this particular act, the taxpayers are allowed to exclude from their income at least until the beginning of 2013.

Therefore, when your mortgage lender agrees to sell your house at a price that is less than the market price of the home, there’s no tax between the amount that you owe and the selling price. Even when your lender forecloses your home, there will be no tax on the cancelled debt and when you refinance for a short term loan, there is still no tax between what you owed and the new one.

According to recent reports, an increasingly large number of struggling homeowners are persuading their banks to foreclose their home or accept a short sale agreement as it takes at least 4-9 months to complete the entire process. Only when you feel that this is the best option for you, you should choose to go for it. Don’t take any hasty decision just because the Mortgage Debt Relief Act is about to expire in 2012 as this may lead to a mess.

Short Sales are NEVER smooth.  Even the pre-approved by the Lender Short Sales, commonly called COOP (co-operative) with B of A, and varieties of that with Chase and a few other Lenders.  Even then..they have to get final approval by the Investors and all Short Sale List Agents know that can take some time...or only a few days!  Hey, you just never know.

After 5 years of doing Short Sales with various Lenders, first liens, second liens, IRS liens, Mortgage Insurance issues..each has it's own problems.  A consistent fact is that every single Lender insists that ALL THE DOCUMENTS in the Short Sale package match! 

• Buyers names
• Sellers names
• Addresses
• Agent names
• Agent companies

What if your Grant Deed does not match your Loan Documents?  Simple.  Make it!  Your List Agent should have an experienced Title Agent in their Short Sale arsena.  The name or names on your Loan Documents MUST match exactly the name on the Grant Deed..period!

Short Sales are interesting and require creativity and they are a challenge.  Choose your Short Sale List Agent wisely. 

Silicon Valley Home Prices are on the rise. Inventory is low, and there are plenty of buyers out there making multiple offers the norm, not the exception. Investors have been a big factor in the market since the crash, but now it may be time for a change if you are an investor.

For the last few years investors were gobbling up foreclosed homes, short sales, and other bargain priced properties. These were often rehabbed and resold quickly. While there was often competition from other investors, it was manageable for many investors.

The landscape has changed. The inventory is so low, and the interest rates are not only low, but loans are a little easier to get than right after the crash. This along with a very high employment rate, and skyrocketing rents, has sent first time home buyers flocking back into the market.

As a result, the chance to buy a home for a low enough price to rehab and resell while making a 30% profit is not working in the investor's favor. It may happen occasionally, but not often.

However, there is still plenty of money to be made investing in real estate. Maybe it is time to look into a buy and hold strategy. It will not make you money overnight, but in the long run will bring in more money than being able to snare the occasional flip.

So if you have $500,000 to spend, why not look for 2-3 homes you can purchase, get a positive cash flow, and sell in 5 years for a great profit if the market has appreciated, or keep holding until your profits are at an acceptable level. With a buy and hold strategy the investor should be looking more at appreciation potential than getting the best price or not buying. It is still number crunching, but the set of numbers being crunched is different.

If you have any questions about buyer or selling investment properties in San Mateo or Santa Clara counties please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

DRE 01191194

Improvements and more improvements have been the recurring case for the government sponsored enterprises Freddie Mac and Fannie Mae. Although these GSE’s (Government Sponsored Enterprise) had a slow start in finding the right solutions for the housing crisis we are facing, the momentum for improvements via federal guidelines have picked up speed. The Goal: Get through distressed properties quickly to catalyze the housing recovery. How? Streamline their short sales. Let’s explore new and improved federal guidelines these GSE’s will implement on November 1^st.

Click the links below to see if your mortgages are backed by Freddie Mac or Fannie Mae:
Freddie Mac or Fannie Mae

Please read this concise document from FHFA.GOV HERE for the new Fannie and Freddie Guidelines and eligibility requirements.

Notes on new FHFH Guidelines:

• A significant change for starters is homeowners being eligible for a short sale without being in default or at risk of imminent default. If the homeowner is able to show hardship and back it up with proper documents, a short sale is now possible. Note that it is not only for those who are relocating due to current or new employment (this may be confusing).
• The right to pursue deficiency waiver for monetary exchange or promissory note applies to those who have sufficient income or assets. Even then, if you have a solid negotiator and/or short sale team, you can walk away from the property with little liability.
• For those who are in serious financial distress (missed several payments and have low credit scores), a short sale will be more streamlined as documents required to show hardship has been reduced or eliminated.

In the past, the GSE’s guideline alterations were not received well by many professionals in the real estate community. However, these new changes presented by the FHFA were well received by U.S. Realtors and an international credit rating agency. This includes the National Association of Realtors who said, “Making the short sale process go more smoothly will help avoid foreclosure and keep homes occupied.”

www.seattleshortsaleblog.com

Peter

First impressions matter most. This is one concept that many homeowners trying to sell their homes and first time property investors trying to sell or rent property fail to understand. Curb appeal is the first impression when it comes to a house. This is the place that you as an investor or seller want those driving buy to think of as home. For this reason you should pay careful attention and spend some degree of time and effort making the outside of the home inviting and appealing to potential buyers or renters.

One of the first things that people will notice is crumbling paint and bland or tired and faded colors on the exterior. Vinyl siding is often inviting because it is easily cleaned and reinvigorated. It also happens to be fairly low maintenance, which often appeals to buyers and renters alike. There are those however who will argue that siding detracts from the potential personality of a home. To each his or her own in this as it is a personal decision on behalf of the buyer and the seller. Regardless a clean and crisp paint job or siding makes a much better impression than an apparent state of disrepair.

Remember those first impressions are important. If the outside of the home is rather unimpressive potential buyers are quite likely to discover the diamond that is the inside of your home. Another thing you can do to add curb appeal is to plant low maintenance flowers and plants around the exterior of your home. You do not want to invest in plants that require constant care nor do you want to seriously invest in plants that are going to grow out of control and look unwieldy. At least you do not want to plant these around the exterior of your home that is facing the road. Bushes and climbing vines do well in many cases along fences that surround the property however or as a dividing privacy line between your property and neighboring properties.

If you live in an area that isn’t conducive to green grass you may want to consider some sort of hybrid that can thrive with less water or choose some form of landscaping that doesn’t rely on large open patches of grass in order to be beautiful such as xeriscaping then that is quite probably a wise idea. The point is to make the house as attractive on the outside as you hope those viewing the property will find the inside.

Another thing to keep in mind when making the upgrades is to clean the sidewalks and driveway if it is concrete. It is amazing what a high power pressure washer can do to your sidewalks, driveway, and/or front porch. Don’t stop there however; take the time to make sure your doors and windows are clean as well. These little things often make the biggest impression. If you care properly for the exterior of your home and keep it nice and shiny chances are (in the buyer’s mind) that you will have taken the same care of the inside of the home that they are quite possibly now considering.

Taking the extra time to insure that the outside of your home is attractive to buyers can translate into higher and quicker offers than neglecting the essential real estate between the front door and the curb. Do not overlook this powerful piece of advice and you should enjoy a little more success in your efforts to sell your home or investment property.

Antonio Atoche
310-345-1513
antonio@atocherealestate.com
www.upsidedownlosangeles.com
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HSSN CASE FORWARDED ~~ Hopefully good news on this traditional short sale? I haven't seen this phrase used previously with Bank of America.  Does anyone have an idea of what is next?