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Fremont CA Short Sales

10-29-09
Jeff Pereyda Fremont-Newark-Union City Homes for sale
Jeff Pereyda Fremont-Newark-Union City Homes for sale: Real Estate Brokerage in Fremont, CA
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  • Office: (510) 742-3212
A client visited with me in my office in Fremont last night. He makes a good income and is capable of buying a home in the Mission San Jose Area of Fremont, which more most is no easy task. As we talked further, he disclosed that he recently got out of a short sale. It closed escrow in August.


If you know just one thing about buying a home it is that the lender will look at your credit and put it into the long equation on the home qualification formula. What do you think his credit showed?


After we both sighed, he authorized me to pull his credit. His credit showed that he now had two "derogs" on the credit report. A derogatory event on a credit report is never a good thing. If someone you know has had or is going through a short sale in California several things will appear in the credit report when it is all over. The first thing they may notice is the highlighted derogs. This will specifically show as three, thirty-day lates on the credit report. It will show as a ninety-day ding. What's more is that say the owner had a first and a second loan, or HELOC, a home equity line of credit, and they were both settled after the short sale closed escrow--now the owner will have two ninety-day dings on their credit report. How does that effect one's FICO score? Say someone had a shining 740 FICO score just prior to all this mess. After all is said and done with the short sale proceedings, their score will be reduced down to a 617 FICO or somewhere thereabouts. Good luck getting a loan with a 617.


Can it get worse? Yup. If the short sale lender recorded an "NOD" (notice of default) against the owner during the "lates" or at anytime during the short sale proceedings, many new lenders (when the short sale seller goes out and tries to get a new loan for another home) will treat this little bit-0-history as a foreclosure against the owner. A foreclosure means no loans period.


In closing, we certainly saw that he had the money and a great job with scores of income. But, because he had to choose the short sale of the prior home, his FICO score went poof. What is good about California is that it is almost impossible for a lender to go after a deficiency judgement for the difference of the loan and taxes. That's good for consumers, but bad in other areas. The lender will report the short sale to the credit bureaus and the ninety-day dings will appear. You cannot have your cake by getting the loan forgiven and the debt reduced to zero and eat it too.
I promised that I would do my due diligence, pull his prior HUD 1 settlement statement too to see if the lender recorded a NOD and call my banks to see what his options are. I will let you know.
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Bay Area Commission Rebate Tax Questions

10-20-09
HR Dadgar
HR Dadgar: Real Estate Brokerage in Fremont, CA
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  • Office: (510) 395-1267
  • Mobile: (408) 886-0124

Bay Area Commission Rebate

First of all I am not a CPA and I advice everybody to investigate what I am going to say here.

This is no legal or tax advice. I am a real estate broker and as such I can not give legal or tax advice

How much tax should I pay when I receive a Cask Back from a Broker or Real Estate Agent?

This question is normally asked by buyers who are about to get a cash back in escrow.

The answer is zero percent, but you can do it two ways. The hard way and the easy way.

Let's start with the easy way.

The easy way is to make your agent write it on the offer or purchase contract something in this formate:

Buyers will get $15,000 dollar cash back within the escrow.

The money you will get from your agent will be used to pay your closing costs and reduction of the purchase price.

Because you will not get paid outside the escrow, you will not get a 1099. If you do not get a 1099 then you most probably do not have to explain anything to IRS about this money. Everything is crystal clear. You get a price reduction from the seller in form of Commission Rebate from your agent. Seller paid a commission to your broker, thus his profit from the sale is decreased. You got this commission money from your Real Estate Broker, but this money is spend to get a better price for the house.

The hard way to do the same thing is to force your broker to pay you outside the escrow. Suddenly everybody have to explain themselves to IRS.

Title company issued a check to your broker for full amount and when the broker issue a check to you as cost of sale it might raise some questions with IRS.

Also you as buyer will get a 1099 and have to ask your CPA to explain to IRS that this money is really a reduction of sale price and not an income.

So let's keep things simple. Let's keep all the Cash Back, Commission Rebates or Buyers rebate within the escrow, to make life easier for everybody

Broker of American Dream Realty

HR Dadgar

Bay Area Buyers' Rebate

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Fremont-Unified-School-District-Home-Sales

09-30-09
Jeff Pereyda Fremont-Newark-Union City Homes for sale
Jeff Pereyda Fremont-Newark-Union City Homes for sale: Real Estate Brokerage in Fremont, CA
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  • Office: (510) 742-3212

Fremont CA Real Estate-Short Sales Fremont CA Real Estate prices fell on average of 35% since the beginning 2007, but there were a few pockets of Fremont that fared a bit better than the rest. What could have been the cause? Weren't they all affected in the same way? Mission San Jose area real estate prices in Fremont for example, did fall but not as much as homes in the Ponderosa area in the north of Fremont.

Schools were the common denominator in determining the home value percentage drop. Had Mission San Jose Schools been anything but one of the top 5% national high schools in the nation, the story would have been different. Parkmont area of Fremont did okay at around 30% drop, better than a 35% drop from other pockets of Fremont. All together, it seems that the Mission San Jose School status provided heavy reinforcements when the real estate crunch came crunching down. You can find out more about Fremont Unified school district attendance maps for Fremont here at my site.

Also, you can compare between Fremont and Sunnyvale here on a study I did last year. Interesting.

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Fremont’s Mission San Jose Area: An Overview

04-06-09
Veena Grover, Fremont Realtor: Homes for Sale in Fremont & Union City
Veena Grover, Fremont Realtor: Homes for Sale in Fremont & Union City: Real Estate Agent in Fremont, CA
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  • Office: (510) 378-7546
  • Mobile: (510) 378-7546

I’ve gotten a number of requests from prospective homebuyers to provide more information on the various communities that I have expertise on. So, I’ve put together a brief overview for Fremont’s Mission San Jose district below. Please feel free to contact me with any questions that you may have.

Fremont has 201,334 residents situated over 92 square miles, according to the census of 2008, making it the fifth largest city on the Bay Area. Its established itself as the Bay Area home of many high-tech and bio-tech firms and is known for its attractive, manageable commutes to other tech companies located in the South Bay and on the Peninsula. In addition, San Francisco, Oakland and Berkeley are accessible within 60 minutes on BART.

The historic Mission San Jose district is a very desirable area for home buyers and families. It is located just off of Highway 680 and sits below the foothills of Mission Peak. The district prides itself on maintaining a small town feel – for example, the Olive Festival is held annually, Independence Day parades bring residents out onto the sidewalk in summer, and in winter a Christmas tree lighting event is held close by. Ohlone College (see more below) is the hub of activity in the area and a number of small commercial businesses, retail shops, and eateries are within walking distance. The Mission San Jose district is a short drive away from The Hub shopping center in the Irvington district, Gateway Plaza near the BART station, the newly developed Pacific Commons Shopping Center in the Warm Springs district and NewPark Mall in the city of Newark.

The Mission San Jose district is also home to cultural and community centers like the impressive Smith Center for Performing Arts at Ohlone College and the Olive Hyde Art gallery. In addition, Fremont has plenty of indoor and outdoor recreation areas. The popular and highly ranked Lake Elizabeth (Central Park) with golfing, a dog park and sporting fields will soon house a new water park opening in May of 2009. Additionally, residents and visitors enjoy Quarry Lakes Park, sections of the Alameda Creek trail, Fremont Teen Center, Fremont Senior Center, and of course the mountainous hiking trails of Mission Peak.

As for schools, Fremont is served by the Fremont Unified School District, and families flock to homes in the Mission San Jose district to enroll their children in Mission San Jose High School, ranked as the 49th best high school in the nation. Known locally as “Mission” or MSJ, the high school was founded in 1964 and is known for its strong academics, sending 93% of its graduates to post-secondary schools. For advanced studies or summer enrichment courses, Stanford, the UC Berkeley main campus and Cal State University East Bay in Hayward are within 35 minute drives. UC Berkeley also has an extension campus located in Fremont. Ohlone College (a community college) with highly regarded nursing, computer science and green technology programs has its main campus located in the Mission San Jose district.

Fremont and the Mission San Jose district are wonderful places to live with a great deal of home buying opportunities currently available. Feel free to contact me to learn more about the real estate market in this wonderful city.

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