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Chico Real Estate, I NEED TO SHORT SALE MY HOME !!! Are you sure? Part II of II, Chico Houses

LOAN MODIFICATION --- SHORT SALE --- FORECLOSURE

How many times have you heard someone mention the term Short Selling a home? Why would you want to Short Sell your home? Are you behind on mortgage payments and owe more than the market value of your home? Short Sale MAYBE the solution, but have you considered all your options?

In Part I of our series we discussed the Loan Modification as the first step in pursuing a solution to a mortgage problem. Today we will look at some of the main issues to consider with a Short Sale versus Foreclosure on a home. Chico Real Estate

SHORT SALE: Selling a property for less than the amount owed on the mortgage(s) including any 1st and 2nd mortgage. If there are 1st and 2nd mortgages the approval of both lenders will be required .

Things to Consider:

1. Recourse Debt: If you sell your home for less than the amount owed the lender may have legal right to pursue collection at a later time. Debt relief may be considered taxable gain by the IRS. It is important that you find out the type of debt, the agreement you are making with your lender(s). Purchase money loans versus cashout loans, that were not used to increase the value of the property, maybe handled differently by the lender and/or IRS.
2. Legal Counsel/Tax Advise: Seek competent Legal counsel and Tax advice before entering into any agreement and determine which course of actionis right for you.
3. Credit Rating: Advisers have different opinions on the impact to credit scores from either a Short Sale or Foreclosure. There are a number of factors that determine how quickly your credit will recover. Some lenders would lend in 2-3 years and some would lend in 2 to5-7 years relative to Short-Sale versus Foreclosure history.
4. 3rd Party liens: IRS, property tax, HOA; mechanics liens and judgments reduce the likely hood of a successful Short Sale. At the very least these items prolong a process that generally takes more time than a standard real estate transaction.
5. Current Payment Status: If a payment has been missed it is wise to seek solutions as soon as possible. Pursuing a Short Sale generally does not stop the Foreclosure process.
6. Beware of any company that guarantees your Short Sale success. There are many factors that influence the success of Short Sales and a number of those factors are beyond the control of the Seller and the Agent.
7. Sales Commissions are paid by the Lender:There is no benefit in attempting to Short Sale your home as a For Sale By Owner (FSBO). The amount of work involved in working with the lender is extraordinary.
8. P.U.S.H: Prepare for a sale. Utilize all available resources. Stage the home to sell. Hope for the best. A positive attitude is healthy and helpful in making decisions and processing all of life's experiences.

FORECLOSURE: Process by which a property owner's rights of ownership are terminated by the party of legal interest (lender). This process varies from state to state. In California the most common method is through non-judicial foreclosure /Trustee's Sale. Although a judicial foreclosure provides the lender additional rights it takes longer and is not common practice in California.

Things to Consider:

1. Recourse Debt:If your home is foreclosed and the lender sells the property for less than is owed, the lender may have legal right to pursue collection at a later time. Debt relief may be considered taxable gain by the IRS. It is important that you find out the type of debt on the property. Determine whether the mortgages were purchase money loans versus cashout, home equity loans. Loans that were not used to increase the value of the property, maybe handled differently by the lender or IRS.
2. 3rd Party liens: IRS, property tax, HOA; mechanics liens and judgments may not survive the foreclosure process.
3. Legal Counsel/Tax Advise: I would like to imphasize seek competent Legal counsel and Tax advice before entering into any agreement and determine which course of action is right for you. Cottonwood CA Homes For Sale

If you have questions help is a phone call away 530-347-6122 or email steve@chainrealestate.net

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This information is provided by your Realtor, and is not a substitute for the advice of your legal or tax adviser. This information is provided as an example of the types of evaluations that are helpful, to Buyers and Sellers, when considering real estate transactions. Chico Real Estate

Chico Real Estate, I NEED TO SHORT SALE MY HOME !!! Are you sure? Part I of II, Chico Houses

LOAN MODIFICATION --- SHORT SALE --- FORECLOSURE

How many times have you heard someone mention Short Selling a home in the recent real estate market? Why would you want to Short Sell your home? Are you behind on mortgage payments and owe more than the market value of your home? Short Sale MAYBE the solution, but have you considered all your options? First things first, the loan modification should be the first option you consider. Chico Real Estate

LOAN MODIFICATION: A Change in interest, term or loan principal resulting in reduced payments. You as the homeowner may contact your lender. Most lenders are motivated to help you stay in your home. You will need to provide a list of information and documentation to be considered for a loan modification. Loan modifications may be temporary or permanent depending on the lender and your agreement. Free assistance is available from FHA and HOPE Alliance.

Things to Consider:

1. Beware of any company that requests up front payment or requests you sign over your rights to your home. There are companies that provide assistance in obtaining loan modifications. It is illegal SB94, in California, to request up front payments or progressive payments for so called services. California Licensed Real Estate Agents may assist you with loan modifications.

2. Beware of any company that suggests that you short sell your property without first at least considering the loan modification process.

3. Not all lenders are the same: The programs that are available will vary widely depending on whether you have a conventional, FHA, fannie mae, freddie mac loan and your loan servicer.

4. Repayment ability: If your loan payment is to be reduced you will need to demonstrate repayment ability. If you have had a event, like a job loss, or other change that hinders your ability to make the mortgage payments, then you should also consider the other options available to you.

5. Current Payment Status: You do not have to miss payments to seek a loan modification. Check with your lender to find out their policy.

If you have questions help is a phone call away 530-347-6122 or email steve@chainrealestate.net

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This information is provided by your Realtor, and is not a substitute for the advice of your legal or tax adviser. This information is provided as an example of the types of evaluations that are helpful, to Buyers and Sellers, when considering real estate transactions. Chico Real Estate

Paradise Real Estate, Successful Selling In A Buyer's Market, Paradise CA Homes For Sale, Part 8 of 8

This is the 8th in an 8 part series. We are discussing Closing The Escrow:

With the on going changes in regulations, industry practice and market conditions a detailed approach is very necessary to successfully close an escrow.

Disclosures & Inspections:

• Agent's Visual Inspection Disclosure: Both Buyer and Seller's agent must provide the AVID to the Buyer.
• Seller's Real Estate Transfer Disclosure Statement: Selling with an AS-IS statement doesn't excuse the Seller from providing the completed TDS.
• Natural Hazards Disclosure Statement: Generally the NHDS is obtained through 3rd party providers.
• Other Disclosures: It is important to provide Seller's disclosures, to the Buyer, in a timely fashion to maintain the time line for Buyer's review and subsequent contingency removal. There maybe additional disclosures and inspections necessary due to the unique features of your property. Inspections such as well, septic, pool, spa and lead base paints may be required.
• Home Inspection: A home inspection is a valuable assessment of the working condition of the home's mechanical and electrical equipment including a detailed visual inspection of the property. The limitations of the home inspection should be understood. Home inspections generally do not include an on-the-roof-inspection. They are also not a substitute for a pest inspection. Conducting a home inspection before the sale of the home can eliminate any surprises surrounding the discovery of damage during the home inspection.
• Pest Inspection: Pest inspections evaluate the condition of the home relative to water damage, dry rot and wood destroying pests. Again conducting a pest inspection before the sale of the home can eliminate any surprises surrounding the discovery of damage during the pest inspection.
• NOTE: Any Damage discovered, in a balanced real estate market, might leave room for negotiations for sharing those expenses between the Buyer and Seller. While most everything in the purchase is subject to negotiation a Buyer's Market may not present the same opportunity.

Contingency Removal-

• Review of Preliminary Title Report: The preliminary title report will be inspected for "defects" and insurability for title insurance. Any defects in title will have to be "cured" or accepted by the Buyer and/or the Title Insurance Company.
• Review of Inspection Reports: Buyer and Lender will be interested in reviewing all reports.
• Appraisal Valuation:If a loan is being obtained on the home a licensed appraiser will establish the selling price relative to the local market value.
• Loan Contingency: Once the previous reports are reviewed and Buyer's financial status confirmed the loan contingency should be removed. Note:The current real estate market has caused more review time and attention to detail surrounding real estate loans.
• Time line: The time line for the close of escrow and the progressive removal of all contingencies should be monitored and maintained for a timely close of escrow.

Escrow Signing:

• Documents will now be prepared for signing and both parties shall review the escrow documents for accuracy relative to the Residential Purchase Agreement and the terms of the loan. Lender Funding of the loan will take place and recordation of the documents will follow. Then final disbursements of funds.

Congratulations on Successfully Selling In A Buyer's Market, Paradise CA homes for sale

Real Estate Marketing assistance is available: call 530-370-1818 or email: steve@chainrealestate.net

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This information is provided, by your Realtor, and should not be considered a substitute for the advice of your legal or tax adviser. This information is provided as an example of the types of evaluations that are helpful, to Buyers and Sellers, when considering real estate transactions. Paradise CA homes for sale

Median Price Analysis for Paradise, Magalia, Chico & Oroville California

Paradise & Magalia, California Weekly Stats