Facing a Foreclosure in Folsom, CA?
At the end of July in 2009, there were 285 homes for sale in Folsom, CA. The breakdown: 171 "Non-Distressed" listings, 97 "Short Sale" listings and 17 "Bank Owned" listings. In the same month, there were 48 Non-Distressed sales, 5 Short Sales and 20 Bank Owned sales that closed escrow. What does this tell us? 28% of the Non-Distressed inventory sold, 5% of the Short Sale inventory sold and 117% of the Bank Owned inventory sold. Bottom line: If you get foreclosed on, the bank will unload your home quick and cheap. If you want to avoid foreclosure with a short sale, it can be done, but time is of the essence and there is no margin for error. If you hire an experienced short sale specialist, the odds of your success will increase exponentially!
Short Sale or Foreclosure: Which is the Better Option?
Losing your home to bank foreclosure, resulting from your inability to make your monthly mortgage payment(s) is one of life's most challenging experiences. Foreclosure is also an event that will impact your credit score for years to come. Foreclosures often result from the unexpected: a major accident, serious illness, death of co-owner, divorce, job loss, or more and more often as the result of a resetting interest only or adjustable rate mortgage. If you are facing any of the above it is better to understand your options and take action, rather than standing idly bye and waiting for the foreclosure to take place.
Foreclosure is the worst of your available options
As most people know, the result of a foreclosure is the bank will take your home. Depending upon the circumstances and the state you live in, the lender can also get a judgment against you for the cost of the foreclosure and the arrearages you owe. The foreclosure will ruin your credit score for many years to come, and make obtaining any other type of credit very difficult. If at all possible, you want to avoid going through a foreclosure.
When foreclosure seems inevitable, consider a Short Sale
Banks first choice is rarely to foreclose. Typically, it is their last option in an effort make the best they can out of a bad situation. For homeowners who have found themselves in dire straights financially, a popular option is to pursue a short sale. In a short sale, you sell your home for less money than what is owed on it. The biggest challenge is getting your bank/lender to agree to the short sale. On the one hand, they don't want to foreclose and take ownership of your home, but on the other, they aren't thrilled about forgiving the debt you owe and passing the loss to their share holders and other investors. If you are considering a short sale, your best course of action is to pursue it the moment you realize you are falling behind on your mortgage payments and you are not willing and/or able make any more payments. Currently in California, it takes a bank/lender a minimum of seven month to foreclose. If you move quickly on doing a short sale, the bank/lender will have a lot to lose if they don't work with you. If you wait until 5-6 months have past, after skipping your first payment, it is unlikely you will have success with a short sale.
The downside to a Short Sale
Although a short sale will prevent a foreclosure, it will still have a negative impact on your credit score, often times lowering it by hundreds of points. This stigma can eventually be overcome and may dissipate much quicker than a foreclosure. If possible, keep some credit cards open, use them regularly and responsibly and pay them off every month. The next area of concern is the "forgiveness of debt." In years past, even though you never saw a dime of it, the IRS and the state tax collectors would consider the difference between the mortgage balance and the home sale proceeds from the short sale to be taxable income. The Mortgage Forgiveness Debt Relief Act of 2007 put a moratorium on federal taxes on short sales through 2012, but laws change regularly, and it is always a good idea to consult your tax planner/advisor prior to pursuing a short sale.
After considering your options, do everything you can to avoid foreclosure
Going through a short sale won't be pleasant and will take some effort, but it will be a better alternative than a foreclosure. When you realize you are in trouble and don't know where to turn, don't slip into denial and hope the bank/lender will go away. Instead, consider whether you will qualify for a short sale and approach your bank/lender with an offer from an interested buyer before you are out of options.
Ready for a Short Sale? Don't attempt to do it alone
For a number of reasons, most attempted short sales are unsuccessful. The banks/lenders have specific paperwork and guidelines that must be understood and adhered to. Each bank/lender is different and there is no single or broad approach that works with each. The idea of losing your home to foreclosure is scary and a short sale can lessen the blow, but it must be done in and efficient and timely manner.
When selecting a real estate agent to assist you, you need one that has years and years of experience in the business and knows how to close real estate transactions. More and more frequently, these experienced agents have realized that the most efficient way to effectively list and close a short sale is to partner with a professional "short sale negotiating firm" that will be the go-between the Realtor and the Bank/Lender. In this process, the real estate agent focuses on their area of specialty: listing, marketing, negotiating and closing the sale, and the short sale negotiating firm: collecting documents from the seller, compiling the short sale package and calling/emailing the bank's asset manager on a daily basis until an agreement with the bank is reached. Remember, you aren't going to get a dime out of the short sale... Your job is to hire professional(s) who will get the short sale done while keeping what's left of your money in your pocket.
Hire an experienced Short Sale team!
If you live in the Sacramento Area and are considering a short sale, I encourage you to consider my services. I am a licensed Realtor / broker / agent and have been serving California since 1992. I am the founder and owner of Brokers Inc. Residential Real Estateand I have partnered with a couple of Short Sale Negotiating Firms that specialize in closing short sales. If you live in other areas of California and would like a referral to an experienced agent in your area, email me and I'll send you the names of a couple of reputable real estate agents to help you out. If you are located in the Sacramento Area, give me a call and I'll come meet with you today!
The Pace of U.S. Home Sales is Fastest in Two Years: Sales of previously owned U.S. homes jumped 7.2 percent in July to mark the fastest sales pace in nearly two years in a strong sign that housing is pulling out of a three-year slump. Sales in July rose for the fourth straight month to hit an annual rate of 5.24 million units, the highest rate since August 2007, the National Association of Realtors said, beating market expectations for a 5 million unit pace. Sales in June had been at a 4.89 million pace. July's increase was the largest monthly gain since the series started in 1999. The last time sales rose for four consecutive months was in June 2004, the NAR said. The Realtors group heralded the July sales as a turning point, while some observers offered a more cautious view. "The housing market has decisively turned for the better. We are bouncing back," NAR chief economist Lawrence Yun told reporters. "Overall, these figures may suggest that the recovery in housing activity is gathering pace, but there is a long way to go yet," said Paul Dales, U.S. economist at Capital Economics in Toronto. U.S. Federal Reserve Chairman Ben Bernanke, speaking at a gathering of central bankers and top economists in Jackson Hole, Wyoming, said prospects for a resumption in global economic growth after a deep contraction looked good "in the near term. (courtesy of Reuters news feed 10/21/09)
Regional Snapshot: The inventory of homes for sale in Sacramento County peaked during the "dark days" of October in 2008 at 7,731. In July, 2009, the available inventory of homes for sale in Sacramento County dropped again to 5,626 homes, more than 2,000 housing units below the peak. The number of home sales rose for the 7th consecutive month, closing out July with 1,854 sales. The most interesting trend I am watching these days is the number of short sales available, relative to total active listings. Of the 5,626 homes for sale in July, 3,331 were short sale listings, which was 59% of the total. Add the 661 Bank Owned Homes to the equation and you had nearly 4,000 (71%) of the homes for sale in July being distressed homes.
Folsom: From a statistical standpoint, on the surface, July looked like a great month in Folsom. There were 70 home sales (the best month since July of 2008) and the supply of homes dropped to 3 months. Taking a closer look, inventory rose again to 285 homes, and the average dollar generated per square foot dropped strongly from $184 the previous month to $164 in July. This is a familiar tune being heard across the country, homes sales are up, along with "bang-for-the-buck" for home buyers. Deals are abound...
Written by Aaron Cullen - Brokers Inc. Residential Real Estate - www.BrokersCorp.com
The Pace of U.S. Home Sales is Fastest in Two Years: Sales of previously owned U.S. homes jumped 7.2 percent in July to mark the fastest sales pace in nearly two years in a strong sign that housing is pulling out of a three-year slump. Sales in July rose for the fourth straight month to hit an annual rate of 5.24 million units, the highest rate since August 2007, the National Association of Realtors said, beating market expectations for a 5 million unit pace. Sales in June had been at a 4.89 million pace. July's increase was the largest monthly gain since the series started in 1999. The last time sales rose for four consecutive months was in June 2004, the NAR said. The Realtors group heralded the July sales as a turning point, while some observers offered a more cautious view. "The housing market has decisively turned for the better. We are bouncing back," NAR chief economist Lawrence Yun told reporters. "Overall, these figures may suggest that the recovery in housing activity is gathering pace, but there is a long way to go yet," said Paul Dales, U.S. economist at Capital Economics in Toronto. U.S. Federal Reserve Chairman Ben Bernanke, speaking at a gathering of central bankers and top economists in Jackson Hole, Wyoming, said prospects for a resumption in global economic growth after a deep contraction looked good "in the near term. (courtesy of Reuters news feed 10/21/09)
Regional Snapshot: The inventory of homes for sale in Sacramento County peaked during the "dark days" of October in 2008 at 7,731. In July, 2009, the available inventory of homes for sale in Sacramento County dropped again to 5,626 homes, more than 2,000 housing units below the peak. The number of home sales rose for the 7th consecutive month, closing out July with 1,854 sales. The most interesting trend I am watching these days is the number of short sales available, relative to total active listings. Of the 5,626 homes for sale in July, 3,331 were short sale listings, which was 59% of the total. Add the 661 Bank Owned Homes to the equation and you had nearly 4,000 (71%) of the homes for sale in July being distressed homes.
El Dorado Hills: El Dorado Hills had its best month in more than a year, with 73 home sales in July. Inventory of homes for sale held steady with 352 at an average of $162 per square foot, while the average home sales price again dipped under $500k. The number of active short sale listings rose to 128 and bank owned homes to 20, putting 45% of the homes for sale in the "distressed" category.
Written by Aaron Cullen - Brokers Inc. Residential Real Estate - www.BrokersCorp.com
What difference does a year make? All would-be home buyers, waiting for the market to bottom, should consider the following: While it's true that the best environment home buyers have ever seen may have been from January to late May of this year, outstanding opportunities still exist for those who act soon. If you are planning to buy a home, there are important dates on the calendar that you need to take note of so you can act accordingly. These dates represent money-saving opportunities for consumers.
We may never see rates this low again: In response to the faltering economy in late 2008, the Federal Reserve announced they would start buying Mortgage Backed Securities (MBS). Immediately after this announcement, 30-yr. fixed rates plunged into the mid 4% range. What you need know is, this program by the "Fed" expires on 12/31/09. With the Fed having bought up to 85% of the MBS since March, when the program expires, the rise in mortgage rates may be as dramatic as the drop this past November, returning to levels well above 6%.
Want $8k for buying a home? The $8,000 tax credit for first time home buyers (anyone who has not owned a home the past 3 years qualifies) is set to expire on November 30, 2009. Buy a home and close escrow on December 1st, and you may have just lost $8k.
Homes have never been more affordable: The National Association of Realtors® keeps track of what is known as the "Home Affordability Index." The Home Affordability Index is arrived at as a function of both median home prices, available interest rates, and median family income. The index represents the amount of monthly income that is required to pay a mortgage payment. In 2005, approximately 23.3% of a family's monthly income was required to pay a mortgage payment. With falling home prices and interest rates, the percentage of monthly income required to pay a mortgage payment is now approximately 15%. This means that for a family at the median income level purchasing a home priced at the median income level, the monthly mortgage payment has declined nearly 36%.
It is always easy to look back and identify times people should have acted, and this could well be one of those times people will look back and say, "Wow, I could have bought a home in 2009!"
Regional Snapshot: Available inventory of homes for sale in Sacramento county dropped to 5,628 with 1,766 home sales last month. Home buyers are now looking at only 3 months of inventory, which in a typical market would be termed a "sellers market." Of the 1766 sales, 963 were bank owned (55%), 219 were short sales (16%) and the average home sales price rose again to $201,457.
El Dorado Hills: There were 55 home sales in EDH in June. 17 (31%) were bank owned and 5 (11%) were short-sales, making 42% distressed home sales. The average sales price rose to $525k with an avg. of $161 per square foot. Inventory is now at 6.4 months.
What difference does a year make? All would-be home buyers, waiting for the market to bottom, should consider the following: While it's true that the best environment home buyers have ever seen may have been from January to late May of this year, outstanding opportunities still exist for those who act soon. If you are planning to buy a home, there are important dates on the calendar that you need to take note of so you can act accordingly. These dates represent money-saving opportunities for consumers.
We may never see rates this low again: In response to the faltering economy in late 2008, the Federal Reserve announced they would start buying Mortgage Backed Securities (MBS). Immediately after this announcement, 30-yr. fixed rates plunged into the mid 4% range. What you need know is, this program by the "Fed" expires on 12/31/09. With the Fed having bought up to 85% of the MBS since March, when the program expires, the rise in mortgage rates may be as dramatic as the drop this past November, returning to levels well above 6%.
Want $8k for buying a home? The $8,000 tax credit for first time home buyers (anyone who has not owned a home the past 3 years qualifies) is set to expire on November 30, 2009. Buy a home and close escrow on December 1st, and you may have just lost $8k.
Homes have never been more affordable: The National Association of Realtors® keeps track of what is known as the "Home Affordability Index." The Home Affordability Index is arrived at as a function of both median home prices, available interest rates, and median family income. The index represents the amount of monthly income that is required to pay a mortgage payment. In 2005, approximately 23.3% of a family's monthly income was required to pay a mortgage payment. With falling home prices and interest rates, the percentage of monthly income required to pay a mortgage payment is now approximately 15%. This means that for a family at the median income level purchasing a home priced at the median income level, the monthly mortgage payment has declined nearly 36%.
It is always easy to look back and identify times people should have acted, and this could well be one of those times people will look back and say, "Wow, I could have bought a home in 2009!"
Regional Snapshot: Available inventory of homes for sale in Sacramento county dropped to 5,628 with 1,766 home sales last month. Home buyers are now looking at only 3 months of inventory, which in a typical market would be termed a "sellers market." Of the 1766 sales, 963 were bank owned (55%), 219 were short sales (16%) and the average home sales price rose again to $201,457.
Folsom: Folsom closed out June with 60 home sales. 15 (25%) were bank owned sales and 12 (20%) were short sales, making distressed home sales 45% of the total volume. The average home sales price was $383,000 with an average of $184 per square foot. Folsom is now down to a 4.5 month supply of inventory. Excluding short-sales, Folsom is down to a 3 month supply of inventory.
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Aaron Cullen has been serving California home buyers and sellers since 1992. He is a Realtor with extensive experience, and a commitment to excellence. Visit www.BrokersCorp.com for big savings.
I love my job and helping others! I would enjoy having the opportunity to speak with you and to assist you with your real estate related needs. Whether you are a first-time home buyer or a seasoned real estate investor, I will tailor my services to fit your exact needs.
In 1992 I founded California Real Estate Network in San Jose, California. For the following 12 years, I worked in the South Bay, as the principal broker and owner of this successful firm while assisting clients with achieving their home ownership goals. In 2004, I relocated to Folsom, CA and opened the doors to Brokers Inc. My mission: Provide my clients with outstanding service and exceptional value.
I graduated from University of Pacific in Stockton, CA with a Bachelor of Science Degree in Business. After graduating, I completed the additional course requirements to pick up a 2nd major this time in Real Estate. Prior to obtaining my Broker's License in 1993, I worked under the direct titulage and training of a highly successful broker: Dave Walsh of Grubb & Ellis Real Estate in Saratoga, CA.
I am the proud father of two wonderful children named Jacob and Brooke and lucky enough to be married to my supportive wife Gwen. My passion in life beyond my family and helping others is baseball, which I played competitvely throughout my childhood and into college.
To those in the industry, and home buyers and sellers who I have worked with, I am known as a no-nonsense, straight-shooter that never loses focus of the task at hand. My clients appreciate my honesty, integrity and have helped me quickly build a referral based business in Folsom and El Dorado Hills. I would love to hear about your real estate related needs and provide you with experience based solutions that will assist you with reaching your goals.
Incorporated in 2004, Brokers Inc. is focused on providing home buyers and sellers with outstanding service and exceptional value. Brokers Inc. is a full-service residential real estate brokerage that exceeds the competition in the areas of marketing, experience and pricing. Our expertise lies in residential home buyer and seller representation in Folsom, El Dorado Hills and the surrounding areas.
Brokers Inc. offers "Full-Service" represenation to home sellers. Services include, home preparation consultation, comparable maket analysis, vitual tours and multiple photos, custom color brochures with a minimum of 20 color photos, "talking house" system to inform drive by buyers, automated home-feedback system to track buyer interest, extensive internet advertising campaign, "just listed" and "open house" postcards, exposure through local agent's tours and open houses, and a more! Brokers Inc. also offers a $2,500 cash back rebate to home buyers. Visit http://www.BrokersCorp.com for details.
Brokers Inc. serves home buyers throughout California. Brokers Inc. serves home sellers in Folsom , El Dorado Hills , Granite Bay , Cameron Park , Roseville , Rancho Cordova , Sacramento , Fair Oaks , Orangevale , San Jose , Cupertino , Campbell , Santa Clara , Los Altos , Palo Alto , Menlo Park , Mountain View and more (just ask).
Aaron kept his word! He sold my house in a short period of time for the highest net sales price possible. The buyer tried to come back after a couple of weeks to get a price reduction and Aaron handled it like a pro. The original contract stuck and we closed escrow on time! -- Brock and Sylvia Williams -- San Jose --
I moved to El Dorado Hills in 2005 from the Bay Area to be closer to my grandkids. Aaron talked me into renting out my Bay Area home (which I had lived in for 37 years) for a year so I would have a chance to decide if I liked El Dorado Hills. He then assisted me with touring the various "active adult communities" in the Sacramento Region before negotiating my home purchase with the builder at "Four Seasons" in El Dorado Hills. Now I am minutes from my grandkids in a new home that I love AND I sold my Bay Area home and picked up an extra $100k in market appreciation by holding on to it for that extra year. -- Thomas Cullen -- El Dordado Hills --
I am an investor / general contractor that wanted to get a great deal on a bank owned home in downtown Sacramento that I could renovate , add on to and live in for a couple of years. Aaron checked the MLS inventory 3 times per day for 3 weeks and was ready to roll the moment the home I bought came on the market. Aaron negotiated the contract with the bank , ordered all inspections and kept the deal on track right through the close of escrow. -- Guy R. -- Sacramento --
I wanted a new home and I wanted the builder to slash the price. Aaron moved right in, met with the builder's sales rep., and we bought the home for $120,000 less than the price it was offered at only a month before we bought it. This is the nicest, biggest home I have ever lived in and my 4 kids love it! -- Amy T. -- Folsom --
The markets are a bit crazy these days... After consulting with Aaron, we decided we would buy our replacement home first, then sell our existing home. There were pros and cons to selling first or buying first and Aaron listened to our concerns, then helped us make the best decision. We purchased an amazing home in El Dorado Hills and our home in Folsom is under contract and due to close escrow in a week. There were problems during both transactions with the appraisals and a buyer backing out, but not to worry, Aaron worked through the challenges, found a new buyer for our home in 12 hours and helped us make our dreams come true. -- Katy O. -- El Dorado Hills --
Aaron is outstanding! I have bought and sold a number of properties in California and Aaron was the best agent with whom I've ever worked. In my opinion his skills and capability are more akin to an acquisition specialist at a Fortune 500 company. Our transaction was difficult because it was a short sale with property issues, negotiation issues, the seller trying to back out, and legal wrangling with a mediation with the seller. I can't say enough good things about him as a professional but he's also a great guy! I highly recommend him. -- A. Milano -- El Dorado Hills
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