“World's Most Complete Neighborpedia”
Sponsor a Community — What is Localism? | Register or Sign In
Explore:   What's happening in your neck of the woods?
Home Turlock Homes - Adam Dalton - Realtor®

Turlock Homes - Adam Dalton - Realtor®

Blog_tag

What is a Short Sale?

09-26-11
Turlock Homes - Adam Dalton - Realtor®

Adam Dalton, Turlock HomesIt's been a few years since the market fell apart, but I still get this question at least weekly...

What is a short sale?

To put it simply, a short sale is an agreement of terms in which the lien-holders of a loan on a home agree to accept less than the amount that is owed from the borrower on the home, through an offer by a 3rd party buyer. The inability to pay the remaining debt is usually a result of financial hardship on the part of the homeowner, accompanied by a substantial decrease in property value. This is seen as a less detrimental alternative to letting the home be foreclosed on.

To explain it in real-world terms, it is a 3 to 12 month+ dogfight between the borrowers, the lien-holders, the buyers, and the agents to push this short sale through. People lose patience, money, hair, and sometimes their sanity during the process of working a tough short sale. However, to help a seller get out from under a mountain of debt they cannot pay and to assist a buyer in finding their perfect home, its what we do at Century 21 M&M and Turlock Homes.

Lets break it down with a very simple, common scenario. Mr. Smith has been laid off in a very tough economy where finding a new job is tough. He is very diligent but unsuccessful and has burned through his reserves and is starting to slip on his bills. Mr. Smith also bought a home using two loans to get 100% financing back in 2005, the height of the typical CA market. Mr. Smith has fallen behind on his mortgage and has little option but to try and short sale his home or let it be foreclosed on. Mr. Smith enlists the help of Adam Dalton,Turlock Homes and they list the home at a competitive price as a short sale.

At the same time we gather Mr. Smiths financials:

-Most current bank statements

-Last pastubs

-Last 2 years tax returns

-A well written letter explaining Mr. Smith's situation over the past months and a clear request to allow an attempt at a short sale. This is called a hardship letter.

-Different banks will also request other forms so be ready for that.

We also need Mr. Smith to sign a Letter of Authorization letting the lien-holders know that Mr. Smith gives Adam Dalton,Turlock Homes his permission to speak to them on his behalf in regards to the short sale. This is sent in at the beginning of the process so that when an offer comes in, the lein-holders are aware that you exist and a short sale is being attempted.

Mr. Jones has found Mr. Smith's house to be a perfect fit for him and puts in an all cash, full price offer. Mr. Smith accepts and signs off on the offer. Should be a lock, right? Nothing in a short sale is easy or guaranteed (first lesson of “Short Sale Fight Club”). Now the offer the estimated HUD, and the sellers financial packet go to the banks to be processed.

After processing, the file is, hopefully, assigned to a negotiator from each lein-holder. Now keep in mind that both liens are going to lose money, how much is the variable. Now the listing agent must get the 1st lien and the 2nd lien to agree on terms of the short sale and get the 1st(senir) lien to make an offer to the 2nd(junior) lien. If either bank refuses to sign off on terms, you do not have a successful short sale if you cannot resolve their issues. If both banks agree to the price and terms of the offer, how much money each will net from the sale, and agree to fully release the owner from financial responsibility, then you are on your way to having a successful escrow and a successful short sale.

This is a very simple and uncomplicated version of a short sale. Multiple factors exist in each step and any Realtor who doesn't learn something new from each short sale isn't doing something right. If you are considering a short sale and would like more information, please contact us here at Turlock Homes.

Adam Dalton, Realtor - Century 21 M&M and Associates

Adam C Dalton · Century 21 M&M and Associates

1351 Geer Rd Suite 103· Turlock, CA 95380

209.844.4967 · Fax: 209.840.5440 · Adalton@c21mm.com

http://www.adalton.c21mm.com

Adam Dalton, Turlock Homes

2 Comments
Blog_tag

Medium Density Development Parcel - Reduced to $299,900

09-21-11
Turlock Homes - Adam Dalton - Realtor®
2912 7th Street in Hughson, CA has been reduced to $299,900. That is just over $100,000 an acre for a medium density, within the city limits parcel that is ready for development once your plans are cleared by the city. The home on the property is currently leased, creating an income, and the potential to use the land to farm a small crop of trees or crops is there. Call listing agent for more information and set up an appointment to see this unique property.
Adam C. Dalton | Century 21 M&M, Associates | 209-480-6079
2912 7th St, Hughson, CA
Development property within Hughson city limits. Medium density. Lots of multi-family or rezoning options possible.
Multi-Family, 00 units
offered at $299,900
Year Built 1926
Sq Footage 1,450
Floors 1
Parking Unspecified
Lot Size 2.65 acres
Maint $0 per month

DESCRIPTION
Call listing agent for details and pricing/financing options. Home is currently with leased with tenant. It is a 3 bedroom/2 bath with approximately 1450 square feet of living space. R-2 zoning in city limits. Duplexes, apartments, single family homes may all be possible. 2.65 acres with proposed tentative map for 10 1/4 acre lot split. Utilities already run to property. Several tests and inspections already complete. Owner may be willing to finance or consider a partnership in development.

see additional photos below
PROPERTY FEATURES
- SFR currently leased

LOCATION FEATURES
- MAture almond trees

OTHER SPECIAL FEATURES
- Development/rezoning possibilities
ADDITIONAL PHOTOS

Photo 1

Photo 2

Photo 1

Photo 2
Contact info:
Adam C. Dalton
Century 21 M&M, Associates
209-480-6079
For sale by agent/broker

Equal Opportunity Housing
Powered by Postlets
Posted: Sep 21, 2011, 2:13pm PDT
0 Comments
Blog_tag

CA new home buyers can receive a $10,000 tax credit from the state

03-02-09
Turlock Homes - Adam Dalton - Realtor®

Attention CA home buyers:

Everyone is hearing of the $8000 federal tax credit applicable to first time homebuyers across the nation. Well now the state of California has signed into place a new, state specific tax credit of its own.

As of March 1, 2009 CA homebuyers who are eligible can receive TWO tax credits, totaling up to $18,000, if they choose to purchase a new home in the state of California. The state will be giving up to $10,000 (or 5% of purchase price, whichever is less) tax credit to purchasers of new, previously unoccupied homes. There are restriction so be sure to check out the link.
A few basics:
- you must be planning to live in the home as your primary residence for two years
- you DON'T have to be a first time homebuyer ( you do for the $8000 from federal plan)
- it will be credited at $3,333 for the next three years
- once the $100,000,000 earmarked for this project is gone, there will be no more credits available (if the average new home sells for $200,000, that means only 10,000 homebuyers will be able to apply for the credit) so don't wait too long if you are on the fence!

here is a link to answer more questions:

http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml#def3


Call or email me if you have any questions,

Adam Dalton, Realtor
Century 21 M&M and Associates
adalton@c21mm.com

0 Comments
Blog_tag

They're Back A Little Early...

02-29-08
Turlock Homes - Adam Dalton - Realtor®

Although it is still the middle of winter, locally, our least favorite summer pests have begun their assault and our vying for our blood. The nice weather and the moist ground have brought about the early on-set of mosquito season here in the central valley. Reports from other agents and from my own experiences while out showing this week have left their mark, literally. Its time for agents to get their "OFF" ready for themselves and their clients if they are going to be out in the field for any amount of time.

From the Center for Disease Control here are some preventive tips:

Protect yourself from mosquito bites:

  • Apply insect repellent to exposed skin. Generally, the the more active ingredient a repellent contains the longer it can protect you from mosquito bites. A higher percentage of active ingredient in a repellent does not mean that your protection is better-just that it will last longer. Choose a repellent that provides protection for the amount of time that you will be outdoors.
    • Repellents may irritate the eyes and mouth, so avoid applying repellent to the hands of children.
    • Whenever you use an insecticide or insect repellent, be sure to read and follow the manufacturer's DIRECTIONS FOR USE, as printed on the product.
  • Spray clothing with repellents containing permethrin or another EPA-registered repellent since mosquitoes may bite through thin clothing. Do not apply repellents containing permethrin directly to exposed skin. Do not apply repellent to skin under your clothing.
  • When weather permits, wear long-sleeved shirts and long pants whenever you are outdoors.
  • Place mosquito netting over infant carriers when you are outdoors with infants.
  • Consider staying indoors at dawn, dusk, and in the early evening, which are peak mosquito biting times.
  • Install or repair window and door screens so that mosquitoes cannot get indoors.

Help reduce the number of mosquitoes in areas outdoors where you work or play, by draining sources of standing water. In this way, you reduce the number of places mosquitoes can lay their eggs and breed.

  • At least once or twice a week, empty water from flower pots, pet food and water dishes, birdbaths, swimming pool covers, buckets, barrels, and cans.
  • Check for clogged rain gutters and clean them out.
  • Remove discarded tires, and other items that could collect water.
  • Be sure to check for containers or trash in places that may be hard to see, such as under bushes or under your home.
3 Comments