If you’ve found this blog just by searching on the internet, there’s a good chance you’ve read the advantages a Short Sale can have over simply “walking” from the property and letting your lender foreclose.

In case you haven’t heard the reasons, let’s list some of them:

1. No Deficiency – if you have a “recourse” loan in California, you can be subject to further collections and a deficiency judgment after foreclosure. On the other hand, California Civil Code 580

e prohibits lenders of 1st and junior mortgages from seeking the shortage after completion of a short sale.

2. Less credit impact – while it’s true that in many cases a Short Sale is treated equally as foreclosure in loan applications, keep in mind that a human (as opposed to a computer) will view a person’s attempt to settle a debt vs. simply walking from it reflects better character.

3. Less Stress / Guilt – most homeowners that are facing foreclosure say that their biggest source of stress is uncertainty. The thought of a sheriff eviction or their home being listed as  a “Bank Owned” home shatters confidence. In a short sale, the sale of the home at least adds some certainty and timeline when to move on thehomeowner’s terms as opposed to the bank’s.

We’ll cover the biggest advantage of a Short Sale over Foreclosure in a minute.

In most cases, at least 2 of those 3 reasons are worth taking the time to hire a Short Sale Specialist and cooperating with showings of your home.

On the other hand, when does Foreclosure become the better option over a seeking a Short Sale Settlement?

1. When you have a non-recourse loan and your lender is requiring a significant cash contribution or promissory note. This is on a case-by-case basis and everyone’s situation will be different. You’ll need to put a dollar amount on how much the credit damage will cost you in terms of higher interest rates on credit and your ability to re-enter the Real Estate market while prices are low. If the lender’s amount exceeds this amount you estimated, then it’s not worth it. Of course, you’ll want an attorney to review your loan to see if it’s truly a non-recourse situation.

2. Short Sale becomes Counterproductive - The biggest advantage to seeking a short sale is maintaining the mindset of person who wants to move on from this “transitional” period in their life. Staying in “limbo” adds to a homeowner’s stress and doesn’t focus on recovery. When a short sale negotiation doesn’t go right, it can conflict this goal of recovery. Even after you hire a Short Sale Specialist Realtor to reduce your workload, there’s still time and decision making required on your side. If you have a foreclosure auction scheduled and the lender is unwilling to mutually postpone, attorney and court fees can pile up. When certain lenders or their investors get too difficult to deal with, it may be better to cut your losses and just let the lender foreclose after giving the short sale settlement a “reasonable” attempt.

Of course, you can offset some of the possible frustration with a sound gameplan. A seasoned Short Sale Specialist will know which scenarios are usually toughest to deal with: Mortgage Insurance (also known as “MI”), non-delegated servicing agreements, investors who usually don’t cooperate with short sales, homes with auction notices, notoriously difficult 2nd lenders (Chase, Greentree, Cal HFA, Bank of America, etc). You can read some of the horror stories here on this website. The key to any short sale negotiation is anticipation. You can be pre-emptive in determining possible payoffs, cash contributions from other parties, etc. 

3. The home is vacant and the cost of maintenance will be too high. A vacant home is a liability. If your home has significant costs outside of the mortgage (Homeowner’s Association Dues, utilities, insurance, upkeep of the pool, grass, etc) you have to compare which option will be faster. Put a dollar amount on these costs and see if it outweighs your estimate of how much credit damage a foreclosure will cost you. Regardless of which option you choose, a home gathering code violations from the city and delinquent HOA dues can come back to haunt you even after the sale is completed. Again, a good Short Sale Realtor will have other options including having your lender subtract the balance from the payoff amount or settling the costs.

4. Lienholders who won’t cooperate – These are usual private individuals (people you know) who have placed a lien on your home.  Yes, there’s a motto that “everyone has a price,” but my experience tells me that disgruntled parties may want only to make your life miserable. I’ve had ex-spouses of some of my clients demand full payoff or “substitute collateral.” I’ve had contractors who placed contractor liens and simply laughed when they were approached on a settlement. Again, a short sale is only worth so much money and your dignity.

Again, none of those above scenarios are no-brainers. At the very least, you’ll want an experienced Short Sale Realtor to review your situation. Be careful — there’s always someone desperate to take any listing to simply get a sign in your yard. A good agent actually turns down a good portion of short sales for the benefit of both parties.

This is a good article about why the MERS system helped to create our current foreclosure crisis.

MERS issues in Foreclosures continue..

Short Sales are obviously being pushed by the Lenders because they get to apply certain points as I understand it to their settlement agreements.  They would get more points for principle reductions, but they are choosing Short Sales instead.  I would guess because they don't have to encounter the issues presented in this article..who REALLY owns the notes?  I seethe Short Sale world continuingon as it is for another 24 months in my Palm Springs Valley of California.

I need to escalate a short sale which has been stalled with no response from Wells Fargo in the last three weeks.  Negotiator is not answering emails.  Does anyone have a list of email addresses and/or names and/or phone numbers of short sale managers I could contact or know a phone number I could call to get who the manager is of this negotiator or has any other suggestions?  Debbie Veler

Good morning Superstars. This week's Superstar discussions. Investors no longer postponing FCs to complete short sale? I just had a BofA negotiator tell me that we HAVE to close escrow on our short sale 1 week before the upcoming scheduled trustee sale (Cali... Started by Katherine Muhs 4 5 seconds ago Reply by Bryant Tutas Brokers that seem to shun other Realtors There is an REO property I am interested in and I work with a realtor on all my investment properties. But this one property she was not a... Started by Jack Hampson 18 2 minutes ago Reply by Bryant Tutas Is an "APPROVED" short sale indication of bank's bottom line price? I had several properties I missed out on, in that when it came on the market it quickly went into contract and I was too late. Typically I... Started by Jack Hampson 3 3 minutes ago Reply by Bryant Tutas Any strategies dealing with Bank of America's 3rd party LRC "Loan Resolution Company"? In a separate thread, I mentioned that Bank of America thought that LRC was doing such a lousy job, they decided to give them MORE short sa... Started by Edwin Baloloy 3 3 minutes ago Reply by Bryant Tutas Investors No Longer granting deficiency waivers??? I just got off the phone of the Realtor Hotline for Loan Servicers of loan default who revealed some shocking news> I called on a file i... Started by Richard Zucchini 10 5 minutes ago Reply by Bryant Tutas GMAC Hail Mary! We have a SS going to auction this Tuesday. Anyone have a contact who can postpone it? An offer was submitted. No rest for the wicked. Started by David Zagorsky 1 7 minutes ago Reply by Bryant Tutas Bank of America HAFA Rejection I just had a short sale cancelled with BofA and I'm still trying to figure out why.  It is a Freddie Mac file. The initial offer we submitt... Started by Pat Glenn 7 5 hours ago Reply by Kevin - Greenville, SC BOA Co-Op Short Sale Issues BOA told us to reduce the price on a Co-Op Short Sale property to get an offer on it,we did and now that we have received a full price offe... Started by Nick Curcio ADVANCED SHORT SALE AGENT TRAINING   We’re here to help you. We’ve been dealing with short sales for several years, and we know it can be rough on homeowners and agents alike. We want to make sure this process is as easy for you as possible, and that starts with getting you the education and short sale training you need to make the right deal.   What Do You Get? · Two Experienced Practicing Short Sale Brokers, renowned in the short sale industry, walk you through an entire short sale from start to finish · 13+ hours of easy-to-follow teleseminars along with insider tips and secrets for an extra edge · All the forms, approval letters, and sample documents you need for your next short sale · mP3 audio files of all seminars so you can listen at your leisure or refresh your knowledge later · Q&A for as long as you need to get all your questions answered - unlimited access   LEARN MORE ABOUT OUR ADVANCED SHORT SALE TRAINING. ***Use coupon code SSS10000 for a $50 discount 3

Visit Short Sale Superstars at: http://shortsalesuperstars.com/?xg_source=msg_mes_network

Your Credit Score
When you foreclose on a home your credit will be altered for about 5+ years, to say the least. However, when you do a short sale your credit is also affected, but for a much shorter time period and less damage is done. The truth is there is no concrete answer as to how many points it will affect your score. Every person has his or her own FICO and each individual’s score will vary. What I can tell you is the late payments are typically what have the major affect on a borrower’s credit. Most people are usually able to qualify for a new loan and buy a new home within 2 years after a short sale vs. the 5+ years if you were to go into foreclosure. Since everyone is different it’s best to consult with a credit repair-person or your real estate professional in more detail.

FAQ’s
Why don’t I file Bankruptcy?
Short Sale vs. Bankruptcy – When faced with foreclosure many people tend to turn to bankruptcy as an option of solving their problem. Now there is a large difference many of the “professionals” fail to tell you. Filing for bankruptcy will consolidate your debt and can wipe out your liabilities, but it will not save you from having a FORECLOSURE put onto your credit report. Instead, now you will have both a bankruptcy and a foreclosure on your credit. If you plan on eventually turning back your property you WILL STILL HAVE A FORECLOSURE ON YOUR CREDIT REPORT. Trying to conduct a short sale while in bankruptcy can hold up the process, but it is not impossible. It will just take some more paperwork. My best advice is to consult with a great bankruptcy attorney prior to making any decision should you have additional debt you are unable to control besides your property. One key point to keep in mind is if your home is the only debt that is creating an uncontrollable situation for you then a short sale option is most likely your best bet vs. a bankruptcy. If you have other uncontrollable debt then a bankruptcy might also be needed in addition to a short sale. You should consult with a bankruptcy attorney should this be the case.

What do I do after a short sale?
After your short sale, the stress of your housing payment is extinguished and it’s time to get back on track to restoring your credit. Many people will rent for a while until their credit is fixed and then it’s time to get back into another house. With the right team of people working for you, you will be in a new house before you know it.

Mona Salem 310.925.4782 | Michelle Rosca 562.552.9600 | Long Beach Short Sales

Having problems with short selling property or a reverse mortgage in a probate?  Please contact us.

Good question. And I don’t have the answer nor would I ever suggest you miss payments. But I do have an opinion based on my own experience.

First a few facts:

• Missing payments will mess up your credit.

• Missing payments is no guarantee of a short sale approval.

• Missing payments could cause you to be foreclosed on.

However, if continuing to make payments is harming you and your family's future AND it is certain that you will not be keeping the property, then why continue to throw good money after bad?

Being delinquent on your payments will certainly help to prove a hardship. Plus your loan will then become a non performing asset and the investor will have to do something with it. A Short Sale is almost always their best option. They will not foreclose out of spite. They will dispose of the non performing asset in the way that limits their loss the most. That's a Short Sale.

I did Short Sales on 2 of my investment properties in 2010. I was delinquent and did not have to bring any money to closing. It was the best thing I had done in a long time. My only regret is that I didn't do the Short Sales sooner and I wish that I had done Short Sales on my other properties instead of selling and bringing money to closing.

By trying to "hold on" I cost myself thousands of dollars that could have been used elsewhere. My credit was damaged and is still damaged. But you know what?

It forced me to evaluate my complete financial picture. There’s a reason I got into the mess I was in. And it had nothing to do with the lenders “screwing me”. I got into the mess because I borrowed more money than I could ever of  had a realistic chance of paying back. Paying it back was dependent upon outside factors i.e. tenants paying rent and values increasing. If either of these went wrong I was screwed. And of course we all know what went wrong.

Sure I couldn’t have predicted the Real Estate crash of 2006 but I could have been in a position where it would not have mattered as much.

I went from owning 6 properties and almost a million dollars in debt to owning nothing but my home, which was bought using private financing after my Short Sales.

My home is half the size of the one I used to have. My auto is paid for. And I have a total of $100,000 in debt. This includes the mortgage on my house that has roughly 20% in equity.

My business is booming. I have zero financial stress and I'm getting ready to take a month off. That will be my third vacation this year after not having one in the last 15.

Maybe, just maybe, the Short Sale can be your beacon to a better life.

Moral of the story: Don't be a slave to your credit score and debt. Make a difficult decision now and get on with your NEW life.

I hope this helps.

Buying a house is a very serious matter that comes in to people’s lives. It is very risky to invest your money in buying just any house you find. You must have some guidelines that can help you decide which house is the best for you. Here are some:

1. Determine your rights

When you are ready to buy your own house, be sure you understand your rights as a homebuyer. Knowing the process of buying a house prevents you from getting scammed. You can personally do your home work or seek for a knowledgeable person like a real estate agent or a broker. Make sure that the agent you hire is licensed and have a wide knowledge regarding the area.

2. Make sure you can afford it

Your budget is really a big deal in buying your own house. What you want is different from what you need, so be practical. You don’t really need a big house if you’re just one person that travels everyday, right? Make sure that you make the best for your money. Seek help or ask for suggestions especially for those who have knowledge in real estate prices. If you can’t stay for at least a year, buying a house is inappropriate for you. You may save a whole lot more of money if you sell it urgently.

3. Make sure it fits your lifestyle

Make your house a home. Be sure it really fits your way of life and you are comfortable with it. A good example of this is if you’re working in an office, a good place to find is near or in the vicinity of your office. If you love nature, a good place to find is outside the city with clean air, near parks, has a mountain view or near at the beach. Your personality really matters in finding a good house. Make sure to look at its suburbs first and try to gather some information about the area and its surroundings. Try also to consider the kind of neighbors you will have.

4. Consider your future plan

If you’re newly married, you might to consider how many kids you want to have. You can assume the number of rooms or the home space you need. If you can afford a house that is near to a good school, it is better. School districts are more important to home buyers, therefore, it will increase your property values.

5. Be organized

It is very important to make your document files organized and safe. Because it will prove that you own the house. It will help you a lot especially when it comes in paying your house payments (taxes and amortization).

You include earnest money with an offer on a house to show the seller that the you are serious about purchasing the house. It becomes part of the down payment if the offer is accepted, is returned if the offer is rejected, or is forfeited if you pull out of the deal for reasons other than those stipulated in the offer. A financing contingency is an example of the latter - if your offer was contingent on getting a loan, and you can't, you can cancel the contract and get your earnest money deposit back.

How Much Earnest Money?

The size of the earnest money deposit is up to you. Real estate agents will sometimes outright lie, and tell you it is this or that amount, or this or that percentage of the offering price. In reality, you can write the offer with a one dollar deposit if you wish, and agent still has to present the offer.

Naturally, an offer with one dollar of earnest money may not be taken seriously, and the agent may even persuade the seller to reject your offer. It is a good idea to ask what the local norm is. We just bought a house in Colorado, and the agent told us that a $1,000 deposit was normal. Had he said $5,000 was normal, however, I still would have given a deposit of just $1,000. That is enough to be serious in my mind.

You can also do a two-part deposit. You can make an offer with just $100 in earnest money, for example, but specify in the offer that this will be increased to $2,000 once the offer is accepted, or once when an inspection, appraisal or other contingency is met. This keeps your money from being tied up until you know that the seller is serious about selling to you. This will usually still be seen as a serious offer if the deposit is to be seriously increased at some point.

Who Gets The Earnest Money Deposit?

Never give your earnest money check to the seller. The last thing you want is a seller trying to keep your money after you pull out of a deal because of financing problems, termite infestations or other valid contingencies in your offer. If the real estate office handling the sale has an escrow account, it should be safe to make the check out to the broker. Otherwise, use a title company or other escrow account, but in any case, always give your deposit to a third party to hold.

Ask how they handle it too. I once had an offer rejected, and then had to wait a week to get my money back. They told me that they had to wait for my check to clear before they could issue a check back to me. I prefer it when it is handled like it was on our recent home purchase. They just hold the check until the offer is accepted, and return or destroy it if the offer is rejected.

How To Protect Yourself

Things can happen, right? If you pull out of the deal for some unforeseen reason - one not included in the contract - you'll lose your deposit. However, the seller could also sue you for additional damages or even force you to buy the home. To protect yourself, have a clause in the offer that specifies the earnest money as "liquidated damages" if you are in default. The real estate agent can help with the language, but this basically means that if you need to default on the contract, the seller can't ask for more than what you have already included as earnest money.

Why Buying is better than renting | Lawndale | Antonio Atoche

There are times when it is better for a person to rent, but most often home ownership has many more benefits and advantages.

About 10 year ago a had a retired aunt and uncle who rented a condo in Las Vegas. Uncle Jim (not his real name) was a retired minister. Throughout his career he and his wife lived in parsonages, which are homes furnished by the congregation while they ministered there.

He and his wife told me that the biggest mistake they ever made was not to invest in buying a home. In their retirement years, when their other retired friends were living in homes that were almost paid off and had appreciated greatly, Uncle Jim and his wife were using a huge portion of their limited retirment money to make expensive condo rent payments. They strongly cautioned me not to make the same mistake they had.

Recent studies are showing that there are many benefits for both the owners and the community for owning your own home, including increased education for children, lower teen-age pregnancy rate and a higher lifetime annual income for children. Besides these, listed below are some of the primary advantages for owning your own house.

1) More Stable Housing Costs
Rent payments can be unpredictable and typically rise each year, but most mortgage payments remain unchanged for the entire loan period. If the taxes go up, the increase is usually gradual. This stable housing cost especially important in times of inflation, when renters lose money and owners make money.

2) Tax Savings
Homeonwers can be eligible for signifigant tax savings because you can deduct mortgage interest and property taxes from your federal income tax, as well as many states' income taxes. This can be a considerable amount of money at first, because the first few years of mortgage payments is made up mostly of interest and taxes.

3) Debt Consolidation
If you need to, you can refinance a mortgage loan to consolidate other debts (an opportunity you don't have if you are renting.) And the interest on this is also tax deductable.

4) Equity
Instead of payments disapearing into someone elses pocket, home owners are building equity in their own home. This is often one of a person's biggest investment assests. Each year that you own the home you pay more toward the principal, which is money you will get back when the home sells. It is like having a schelduled savings account that grows faster the longer you have it. If the property appreciates, and generally it does, it is like money in your pocket. And you are the one who gets to take advanatge of that, not the landlord. You can then use this equity to plan for future goals like your child's education or your retirement.

5) It is Yours!
When you own a home you are in control. You the freedom to decorate it and landscape it any way you wish. You can have a pet or two. No one can pop in and inspect your home and threaten to evict you.

Even young people, like college students out on their own, can often benefit from home ownership. It puts them ahead of other young people their age financially by helping with their credit and giving them what is often an excellent investment. Often a college student buying a home will rent the rooms out, and his or her roommates end up making the payments for the house. When the student is ready to move on, her or she can sell the home (hopefully making a profit) or keep it as an investment and continue to rent it.

Buying a home is an important decision. It is often the largest purchase a person makes in his or her life. Home ownership also comes with some increased responsibilities, and isn't for everyone. There are some disadvantages to homeownership that you should take into account.

1) Increased Expenses
Your monthly expenses may increase, depending on your situation. Even if the monthly payments are the same, home owners still have to pay property taxes, all the utilities, and all the maintenance and upkeep costs for the home. Often you need to supply appliances that were furnished with a rental.

2) Decreased Freedom of Mobility
Homeowners can't move as easily as a renter who just has to give notice to the landlord. Selling a house can be a complex and time consuming process.

3) Risk of Depreciation
In some areas with overinflated prices, there may be a risk that the house will depreciate instead of increase in value, if the prices go down. If you then sell the house, you may not get enough money from the home to pay back your mortgage, and you will still owe the mortgage company money.

4) Possibility of Foreclosure
If for some reason you are unable to make your payments, you risk having the lender forclose on your propety. This can result in the loss of your home, any equity you have earned, and the loss of your good credit rating.

When considering home ownership, you need to weight the advantages and disadvantages for yourself. If you are like most people, you will find that homeownership is worth the risks and disadvantages.

Antonio Atoche

310-345-1513

antonio@atocheralestate.com

www.upsidedownlosangeles.com

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

Why Buying is better than renting | Lawndale | Antonio Atoche

Why Buying is better than renting | Lawndale | Antonio Atoche

Why Buying is better than renting | Lawndale | Antonio Atoche

Why Buying is better than renting | Lawndale | Antonio Atoche

Why Buying is better than renting | Lawndale | Antonio Atoche

Why Buying is better than renting | Lawndale | Antonio Atoche

Too often, many homeowners doing a short sale read up on the internet and speak to friends, coworkers, relatives and anyone else whose done a short sale, about how they received $3000 relocation assistance by doing a HAFA short sale.

Sadly...this is NOT always the case. Simply going into the HAFA short sale program here in CA does NOT guarantee you will walk away with money.

Case in point.....First your realtor needs to determine if your servicer(the one you normally make or made your mortgage payments to for your 1st lien)participates in the HAFA program. Many servicers DO NOT!.

Also, even if your servicer(1st mortgage lienholder) participates in HAFA, the INVESTOR who is above your servicer and has final say so...may NOT be a HAFA participant.

Many 1st mortgage liens are SOLD to a private investor or group of investors that DO NOT belong to HAFA, nor do they have to abide by HAFA's guidelines and rules. 

OK, so let's say your 1st lien holder and their investor DO participate in HAFA and allow you to do a HAFA short sale.

If you have a 2nd lien, you need to also find out if THEY participate in HAFA...for if they DON'T...then guess what may happen when you go to close? Your 2nd lien holder could see the $3000 monies awarded to the seller(YOU) by the 1st lienholder and decide to GRAB or TAKE any monies on the table. Thereby preventing YOU, the homeowner from getting ANY MONIES awarded to you. Don't say NO...because I've seen it done.

Also...here's the kicker....and even better than the above. Let's say..Mr and Mrs Seller had a 1st and a 2nd on their home, and the 1st even agrees to a HAFA short sale, and so does their investor.And let's say your 2nd lien servicer WAS a participant in HAFA and agreed to participate. *  If your 2nd in this process gets SOLD OFF or CHARGED OFF during this process to a collection co. for x amount of months of NON PAYMENT on your part, then that COLLECTION co is NOT HELD to HAFA's rules and can collect the relocation monies at funding. The collection companies ARE NOT SERVICERS...and therefore they DO NOT belong or partipate in HAFA's rules or programs...so  since they are a collection company..they can TAKE the monies left on the table. Remember people...they are a COLLECTION company...they don't call them a collection company for nothing!!!!

Remember the 2nd lien holder, whether it be a servicer or now a collection co...has begrudgingly accepted what the 1st will give them, and they are NOT happy.

Please make sure when doing a short sale that you interview an agent who has done them extensively and has much experience in negotiating short sales. Please don't assume EVER that because an agent has these CDPE or SFR designations...that they KNOW or are VERSED in NEGOTIATING short sales. These companies handing out designations are PRIVATE COMPANIES charging realtors a $500 or more fee to take a 1 day or sometimes just a several hour course in short sales. THIS DOES NOT mean your realtor knows in the slightest how to navigate and negotiate the slippery slope of short sales. Many of these realtors who have gotten their licenses not that long ago or get these designations because they know that 50% of the market is upside down and if they want ANY business, they better get with the program and start handling short sales.

I am not knocking these designations....there are agents who have them and legally have experience and know how to handle short sales... the main thing is to check for experience in how many short sales they have done...and if they have DONE it themselves. Farming it out to 3rd party negotiators or attorneys, does NOT guarantee success.

Please ask many questions about the short sale process and scenarios. There is no magic wand that anyone can wave to make sure your short sale goes smoothly, for many things occur as roadblocks to navigate along the way. But with a strong negotiating agent who is familiar with all the ins and outs and possible scenarios that the banks, lenders, servicers, investors,and collection agencies throw our way....hopefully having this extensive knowledge and experience can help you obtain a successful outcome.

Selling your home | Lawndale | Antonio Atoche

Your home is undoubtedly the most valuable asset for the vast majority of us and selling it will cost thousands. Using the money saving tips in this article should reduce the cost of moving home.

Estate Agent fees vary, so shopping around and don’t forget to haggle and pay one off against the other. You should aim for 1% commission, also push then to limit the tie-in period to no more than 6 weeks, this gives then enough time to sell the house, but if they can’t you can move to another agent without going “multi-agent” which will increase the fee to about 3%+, a big no-no! Ensure you get a fair valuation, never tell an estate agent what other agencies have valued your house at. They will use this to manipulate its offer, often resulting in wide distortions.

It is false economy to go for the cheapest solicitors, so get recommendations from all the estate agents you speak to and remember to ask for the name of specific people, rather than just the legal firms. Give them a call and ask what their charges are, also note whether they are they friendly, helpful, and most important efficient? Fees are negotiable so haggle! Play off each one against the other to get yourself the best service at the best price.

Selling you house privately can save thousands. One in twenty vendors are now taking the DIY route which could save you thousands. That is a massive money saving tip, but there are a couple of downsides, basically “time and effort”. You could consider newspaper advertising, flyers and signs. Newspapers usually charge per line or per word so try to keep your advert as brief as possible without making it uninteresting. The simplest way would to sell your house yourself is to use one of the many online house selling service.

Obviously it is best to sell your house when the market is strong and demand is high, so keep an eye on the local property market. Generally, the market tends to be stronger in early and late summer than the rest of the year, so aim to sell your house then. Also avoid completing with your neighbours so if there are already a few “For Sale” signs on your street, it might be better to wait a bit.

Research has shown that a poor presented house can take longer to sell and may reduce the price by thousands. So get your paint brushes out, give your home a lick of paint and finish all of those DIY jobs which are outstanding. Also talk to the estate agent about adding value to your property it maybe worth spending a bit of cash to make some more. However, be careful not to over spend, you might not get your money back, so talk all planned improvements through with your estate agent.

Antonio Atoche

310-345-1513

antonio@atocheralestate.com

www.upsidedownlosangeles.com

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

Selling your home | Lawndale | Antonio Atoche

Selling your home | Lawndale | Antonio Atoche

Selling your home | Lawndale | Antonio Atoche

Selling your home | Lawndale | Antonio Atoche

Selling your home | Lawndale | Antonio Atoche

Selling your home | Lawndale | Antonio Atoche

How to sell your home | Gardena | Antonio Atoche

For most people, the prospect of selling their home can be positively daunting. First of all, there are usually plenty of things to do just to get it ready for the market. Besides the traditional clean-up, paint-up, fix-up chores that invariably wind up costing more than you planned, there are always the overriding concerns about how much the market will bear and how much you will eventually wind up selling it for.

Will you get your asking price, or will you have to drop your price to make the deal? After all, your home is a major investment, no doubt a rather large one, so when it comes to selling it you want to get your highest possible return. Yet in spite of everyone's desire to get the top dollar for their property, most people are extremely unsure as to how to go about getting it. However, some savvy sellers have long known a little financial technique that has helped them to get top dollar for their property. In fact, on some rare occasions, they have even sold their properties for more than they were worth using this powerful financing tool. Although that might be the exception rather than the rule, you can certainly use this technique to get the most money possible when selling your property.

Seller carry-back, or take-back financing, has proven to be a surefire technique for closing deals. Even though most people do not think about when it comes to selling a property, they really should consider using it. According to the Federal Reserve, there are currently over 100 Billion dollars of seller carry-back (seller take-back) loans in existence. By any standard, that is a lot of money. But most importantly, it is also a very clear indication that more people are starting to use seller take-back financing techniques because it offers many financial benefits to both sellers and buyers. Basically, seller take-back financing is a relatively simple concept. A seller-take back loan is created when a property is sold and the seller performs like a lender by assisting in financing all or part of the total transaction. In effect, the seller is actually lending the buyer a certain amount of money toward the purchase price, while a traditional mortgage company usually funds the balance of the purchase price. A seller take-back loan is secured with the property. The loan then becomes the primary mortgage and is fully secured by the property. In most seller take-back financing transactions, the buyer repays the seller with interest in accordance to mutually agreed terms over a period of time. Usually, the terms call for the buyer to send the payments, consisting of principal and interest, on a monthly basis. This is advantageous because it creates a steady monthly cash flow for the note holder. And if the note holder decides to cash out, he or she can always sell the note for a lump sum cash payment.

Regardless of market conditions, seller take-back financing makes sound financial sense; whereas, it provides both buyer and seller with flexible financing options, makes the property easier to sell at higher price and shortens the sales cycle. It also has the added advantage of being an excellent investment that generates a steady cash flow and high return. If you ever need immediate cash, you can always sell the note through our office. If you are planning to sell a property, then consider the many benefits of seller take-back financing.

Antonio Atoche

310-345-1513

antonio@atocheralestate.com

www.upsidedownlosangeles.com

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

[caption id="attachment_30" align="alignnone" width="150"]How to sell your home | Gardena | Antonio Atoche[/caption]

How to sell your home | Gardena | Antonio Atoche

How to sell your home | Gardena | Antonio Atoche

How to sell your home | Gardena | Antonio Atoche

How to sell your home | Gardena | Antonio Atoche

How to sell your home | Gardena | Antonio Atoche

How to sell your home | Gardena | Antonio Atoche

This has never happen to me..but i have to blog this out....Today, i recieved a hafa short sale approval letter in black and white and just a few hours later  i recieve an email that states:

Your loan was service released. This means that Bank of America is no longer able to process the short sale. Please contact the new Servicer for additional details and instructions. The new Servicer is Select Portfolio Servicing, Inc. 800-258-8602

Aint this illegal...i have an approval letter and they just took it away...what can i do.. I just got the call from a young lady and she gave me the same information and i advice her and asked her aint this a law suite...she replied, your seller was advice two weeks ago...my seller never recieved a letter....And why wasnt the negotiater advice about this..This is bs from bank of america

I just had to share this.

I had just gone to the post office to pick up my mail in the morning, after that I was on my way to my office. When all of the sudden a block away from there, I see an attractive For Rent sign.  It read, "House for rent, 3bed 1 bath and 2 car garage, for $1,100 a month" Considering the area, and the features of the house it seemed like a very good deal. I wanted to rent it myself. Right away I called the number, and the man who answered wouldn't give me the address of the house. He told me that he'll tell me the address when he get's to the house in 15 mins.  He called me and showed me the house, the house was near by. When I saw it, I was impressed; the house was in great condition. I told the guy that I wanted it, but he wanted for me to give him cash, cashiers check or money order. I made an appointment with him, at the end of the day so I can show it to my wife, to see if she liked it too. Also to give him the money.
 

I was still thinking of the house the rest of the day, but I saw that it had combo lock boxes, and an electronic box keys that Real estate agents use, but not a for sale sign. He had told me that they were there for other agents to show it and rent it. Still when I got home, I logged on to the Home Search system and looked it up. Turns out it was For Sale, I called the listing office and they said: IT'S NOT FOR RENT, IT'S AN REO LISTING". Man I was so mad. I told the listing office of the situation, so they put a for sale sign back on right away the next day. The guy wanted to scam me for my money!!!!  He wanted first months rent, last months rent and $1,000.00 for cleaning deposit. That was a total $3,200.00. I got to be careful next time.

Now, this is one of the first things I tell people who are looking for a house to rent. Be aware.

After that, 3 weeks later, one of my clients calls me and tells me to look up an address for him, to see if the house was for sale. I looked it up and it was for sale! Then I noticed his his reaction. He said, the house only had the post, but not the for sale sign, and that he had given $1,800.00 cash to rent this house, to this man that showed him the house, they didn't do a contract or got his information, they just did a verbal agreement for the mean time and a contract later. So this guy just got the money and disappear, so he got away. My client tried calling him but hi's number all of the sudden got disconnected. TOTAL SCAM ARTIST!!

Now, I'm advising all my clients, renters, friends, realtors and also REO agents,  about these scams, BE CAREFUL OUT THERE.

Many homeowners are now capable of purchasing a home with the all-time low home prices and interest rates. Short sales and Foreclosure/REO properties offer cream of the crop deals that are difficult to simply pass by. If you are looking into the housing market, it is wise to adequately educate yourself especially when looking into distressed properties.

The big question we’ve been getting is, is a short sale or a foreclosed property the better deal? Below is a large pros and cons list for both short sales and REO properties.

*Information derived from Foxbusiness, ABC ActionNews, RealtyStore, WhisselRealty

Pros

• The seller of the property is a bank that has no emotional attachment to the property…they are all about the numbers.
• They are often priced aggressively as the bank wants to sell the property as quick as possible.  They want to stop the business of managing and selling property, and get back to the business of lending money.
• These homes are typically vacant and are very easy to show.
• The banks will usually respond to your offer in 3-5 business days.
• If the home is owned by Fannie Mae, it may qualify for HomePath financing which only requires 3% down and does not require an appraisal or mortgage insurance (MI).

Cons

• Because these homes are aggressively priced, they often received multiple offers.  This is where it becomes important to work with an agent that has a strong understanding of how to write your offer to make it stand out from the competition.
• These homes are sold as-is and the bank will often make no repairs.  As you have probably seen in the news, many of these homes have been stripped by the previous owner and/or vandalized by criminals.  Because of this, they may not qualify for FHA or VA financing.
• You will also have no disclosure forms from the previous owner with REO properties, nor will you be able to get good answers about the neighborhood with repossessed homes as simply as you would through the normal process with a realtor and private seller.
• In these post-bubble days, a bank may also not own the repossessed homes as cheaply as was the norm in previous economies. They may also try to recoup some of their expenses from the foreclosure process as well as the monthly costs of owning and carrying REO properties.

Short Sale Properties: Homeowner sells for less than what is owed.

Pros

• Many agents will not show short sales due to the long response time which opens up opportunities for those buyers that are not in a hurry to buy.
• These homes are typically in better condition than bank owned homes because the homeowner is usually still occupying them and taking care of the home.
• The banks will often accept less than market value because they do not want to foreclose on the home and take on the task of managing and selling the home.

Cons

• The process of negotiating a short sale with the mortgage bank typically takes 1-6 months.
• The bank is under no obligation to approve a short sale offer.  Less than 50% of short sales that are submitted to banks are approved.
• Often times the banks will not pay off all of the liens against the property (HOA dues, property taxes, ….) and the buyer may be asked to pay for these items.

In conclusion, one of the main discrepancies between a short sale vs an REO property can be described by the scenario of buying a used car either from a dealer or from a private owner. If you get it from an owner (REO), you may get the vehicle at a more discounted price but the quality of the asset is a gamble. You may end up spending a lot in repairs because the vehicle’s engine hasn’t been maintained.

In many cases, an REO property is vandalized and/or the previous owner out of spite, trashes the property prior whereas in a short sale, the property is significantly less likely to be vandalized or mistreated prior to transferring the home.

What do you think? Which would be the better deal? Short sale vs Foreclosure

Most times when agents or homeowners know I have a listing down the street...they can safely say "This chic is about to destroy the values in my neighborhood"...OK, mostly true because of my Short Sales, really...I am just bringing the neighborhood down to it's true Market Value, none the less, I have been called The Grimm Reaper....

But what bites my behind is when I go to bat to get a Short Sale approved, show comps and get a bank to lower their BPO/Appraisal pricing to what clearly is a fabulous deal and then....wait for it...I hear....CRICKETS from the Buyer's side...the buyer agent frantically trying to pin down their buyer, wondering if that buyer has possibly gone on a crusie to a third world country and cannot be reached to take The Deal of The Century....

BofA countered at $216K, and since I felt that it was still too high, and the buyer's offer was still lower...  we were able to "Convince" the bank to "come to the light" and see the true value is at $200K....which the buyer wanted...then...and stil NOTHIN', good news here is at  10am this puppy goes back onto the market as an Approved Short Sale, but we all know what happens...I WILL NEED TO RE-ENTER ALL THIS INFO AGAIN ONCE WE HAVE ANOTHER OFFER & BUYER...

Dear Buyer, If you don't surface by 10am, Good Luck, Hope I dont eventually come to  neighborhood where you end up buying...because I know you have heard of That Chic That Does Short Sales.... .

Good morning Superstars.

Here are our all time top Superstar discussions.

Discussions	Replies	Latest Activity
Seller taking an offer before it hits MLS We are seeing a lot of agents pre selling their own own listings that are short sales before putting them on MLS. I know we have a fiduciar… Started by Stephen Pringle	186	Aug 13 Reply by TOP END Properties
How to stop short sale lenders from automatically cutting our commission Nearly 9 out of 10 of my short sales, the lender cuts the commission from 6% to 5%. I am sick of this. They know they have us by the short… Started by Julie Wilkinson	158	May 20 Reply by Jan Baron
Bank of America's policy on allowing third-party negotiators to work short sales I am a third party negotiator that the agents and homeowners select to assist with the short sale process. For a year I have been negotiati… Started by Kristin Johnsen	152	May 29 Reply by Joseph Alfe
Seller wants $3000 cash to close .. isnt this illegal? okay we are now 2 weeks from closing but the problems continue. Seller is expecting to receive $3000 moving money even though they did not… Started by arod	120	Aug 13 Reply by TOP END Properties
Short Sale then Flip , is this allowed ? I just took a property off the market after receiving an offer , the offer is a low ball but what the heck , I felt at least it will get… Started by P Nicolas Velecico	114	Aug 13 Reply by TOP END Properties
Made it all the way to investor approval to be denied, My realtor and seller are related I am a buyer that found a house on realitor.com I did not have a realitor so i contacted the listing agent directly. we put in a offer a… Started by Paul Silva	103	May 20 Reply by Rodney Mason
FBI Focusing on Real Estate Brokers- Submit ALL offers The FBI is focusing its attention on real estate brokers to see whether or not the broker submitted all offers to the lender in a short s… Started by Donna Paul	101	May 21 Reply by Maria Evans
Are Attorneys Ruining Homeowners??? Okay so after a great response and much appreciated opinions on my last post "Are WE now the problem" I am just arriving to the office afte… Started by Eric Mieles	92	Jan 26 Reply by Joseph Alfe
Banks Starting To Assign Short Sales Directly to Brokerage Firms? Hearing through the RE Grape Vine, these are coming...we were sent a review from Citi in conjunction with Keller Williams that they were pa… Started by Melissa Polce	87	Aug 13 Reply by TOP END Properties
Chase cut my commission, but will give seller $30,000! I'm the broker/owner of a small firm. My wife and I are attempting to purchase a $300k Chase short sale for our primary residence. We got… Started by Billy	86	Aug 13 Reply by TOP END Properties

Help! I have been working on this B of A short sale for 6 months and we were to close yesterday. Unfortunately, the buyer's lender could not fund in time so the loan will fund on Monday. The B of A closing agent told me that he will not give us another extension as we have already gotten one and that we will need to start all over again. The buyers, sellers and the agents have all invested a lot of time and money into this transaction. I don't understnad B of A's thinking in not giving us a 2 week extension. If we start all over again, it will be months before we can close and I'm not even sure the seller will agree to start over. They may choose to let it go into foreclosure. Does anyone have a contact that is in upper management that I could talk with or send a message to? Any suggestions are very much appreciated.

Thanks!!

Tracey

Blossom Valley is a hot bed of short sales. It is one of the neighborhoods in the Silicon Valley that has not gone back to the values of 2007-2008. So many of the homes for sale right now are being sold as short sales since the owners have negative equity in their homes.

There are currently 196 pending homes listed as short sales.

There are 286 pending sales of all types.

The percentage of total pending sales which are short sales is 68%.

This is pretty impressive, but the big question is how did this happen?

I have a few theories.

Blossom Valley had some remarkable levels of appreciation early in the century, especially between 2005-2007. There are a number of reasons.

1. Easy money

2. Easy access to downtown San Jose which had ambitious plans for redevelopment

3. Good schools. At one point there were sections of Blossom Valley where you could get a home in a school district with a high API for less than any other neighborhood in Silicon Valley.

4. High tech companies close by including IBM right in the neighborhood.

Then the market crashed, credit tightened, San Jose gave up their redevelopment plans, major employment areas kept moving north to Mountain View, Palo Alto, and San Francisco, and Blossom Valley values plummeted in 2008-2009.

We are on the way up again, but many homeowners are still underwater. The inventory is now quite low. There are only 61 homes for sale right now, and 13 are short sales, or 21%.

If you are a seller, your home will sell, and quickly. If you are a buyer, there is a lot of competition, but the values are there.

If you have any questions about buying or selling short sales in Santa Clara or San Mateo County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285