Chris Plumb

Make a budget. Sketch out a spending plan for the next several months, including expected income and expenses. See what costs you can trim to free up as much money as possible for home payments. You may need to pay the minimums, or even less, on other debts. In certain very limited circumstances -- such as when you are absolutely sure your financial hardship will be short-lived -- it may make sense to skip payments on some bills so you can pay your mortgage. Read "How to not pay your bills" to learn about the consequences that may follow.

Consider getting help. Find a housing counseling agency approved by the Housing and Urban Development Department by calling (800) 569-4287. If you have a Veterans Administration loan, you can call (800) 827-1000 to get a referral to a financial counselor.

Check your refinance options. If you have equity in your home, your credit rating is relatively intact and your lender hasn't yet filed a notice of default, you may be able to get another loan with more affordable payments.

Get organized. If you are going to try for a loan modification, you'll need to prepare a small mound of documentation. The lender will specify what it wants, but typically you'll need to supply the details of your financial situation, a budget, documentation of your hardship (a letter from your doctor explaining an income-reducing illness, for example, or your layoff notice from your employer) and a "hardship letter" that outlines, in heart-rending detail, the circumstances that led you to fall behind and the improved prospects that will allow you to get your financial life back on track.

If a loan modification or refinance isn't possible or feasible, your options come down to these:

Offer a deed in lieu of foreclosure. If you can't sell the house for what you owe, but you're not deeply "upside down" on your mortgage, this may be an option: you propose handing over the deed to your home and your lender agrees to release you from your mortgage. This usually keeps you from having to pay any deficit that might be owed on the property, while the lender avoids further legal costs related to a foreclosure. Lenders can't be forced to accept a deed, however. Typically, lenders require that the borrower make "a really good effort" to sell the home first and show that their delinquency was due to "unavoidable hardship" before they'll agree to a deed in lieu of foreclosure.

Negotiate a short sale. If you owe substantially more on your home than it's worth, you may be able to get the lender to accept less than it is owed by negotiating a "short sale." You essentially sell the house for whatever you can get, and the lender agrees to accept the proceeds and not go after you for the deficit.

Allow the foreclosure to proceed. This is generally the worst choice. In some states and in some circumstances, the lender can even go after you in court for any deficit between what the house eventually sells for and what you owe. An attorney or housing counselor can let you know if that's a possibility.

Even if the worst happens, though, the damage to your financial life needn't be permanent. If your situation improves, you may be able to get another mortgage, at a reasonable interest rate, within 5 years. For more details, check out "Bounce back fast after bankruptcy" for suggestions on how to rebuild your credit after financial disaster.

Contact Info: chris@theplumbteam.com or CALL 916-230-9087

LDS Realtor

No matter how long it's been since your last move, relocating to a new neighborhood is always a bit challenging. As your real estate professional, I make sure my clients understand that I consider you members of our extended family. If you should need a friendly voice during your transition or have any questions at all, don't hesitate to call me.

Regards,

Chris Plumb

Davis & Davis Associates
chris@theplumbteam.com
www.ThePlumbTeam.com
Office: 916-230-9087

March 2008

For Sale: 8096

Sold: 1416

Pending Sold: 1416

March 2009

For Sale: 5856

Sold: 1589

Pending Sold: 3434

More people are buying today then they were in March of 2008. It is time to buy based on the statistics of the Market.

About 3 months ago a Bank Owned Realtor in my office referred me a client that wanted to buy a home in Oak Park (Sacramento, CA Area) as his first investment property. After speaking with the client we made an appointment to meet and discuss his purchase. After 30 minutes I was able to narrow down his needs. I pulled up 5 listings that fit his specific criteria. After viewing all 5, he made his decision on one property. The property was listed at $64,900. Now in most cases, I would advise to a client to put in an offer close to list price or slightly above because most banks are pricing their homes aggressively. In this particular case the property did not have a lock box and was very difficult to view. To view this property I had to pick up a key from the listing agents office. Knowing this particular fact and the behavior of most Realtors I knew we could make an aggressive offer. The client offered $45,000, $3,000 paid by the bank for the buyers closing costs and to pay for repairs up to $5,000. After 1 week the bank rejected our offer with no counter offer. Not to worry, I expected it. Our next offer was 2 weeks later. Before we made another offer, I confirmed with the listing agent that no one had viewed the home since we made an offer. That is great news for us. We came back and offered the bank $48,000, $1000 paid by bank for the closing costs and $4500 in repairs and all work to be completed befoe close of escrow. I also took many pictures and sent them with our offer. One week went by, nothing. Three weeks went by, and nothing. Now my client was getting anxious because homes started to be listing and go pending in less than a week in this area. I told my client, stay steady to the goal. After four weeks, bingo, the clients offer got approved. The great news is we closed today. The client was so impressed with my negotiating skills that he gave me a very nice watch. Now remember, the work doesn't stop there. I emailed my client the name and phone numbers of the utility companies. I put him in touch with a handyman to complete the work at a discount rate. I have also put him in touch with the best property management company in town; Real Property Management, Sean, 916-331-0800.

If you are interested in hire a Realtor that will find you a great investment opportunity, please call me at 916-230-9087. Chris Plumb, Realtor, Davis & Davis Associates. www.ThePlumbTeam.com

Let me help you find your next investment property. I will even give you my clients phone number to confirm the story.

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Short Sales - Is it worth it?

This is a very heavy question. I have been doing short sales for clients that have no other choice but to sell their home when they cannot make their mortgage payments and the lender is not willing to give them a loan modification that they can afford.

Is it worth it for everyone? An average short sale from the time I take the listing to close of escrow runs from 4 - 9 months and in some cases longer. I find most of my clients from a mailer that I send out once a month to people who have received a "Notice of Default." A Notice of Default in the State of California is notice that a homeowner is about 4 months or so behind on their mortgage payments and the foreclosure process has begun. Typically 3 - 4 months after the homeowner receives a "Notice of Default" the home will be sold at Sacramento County Court steps at an auction. The good news is, when we receive an offer before the Auction date, most lenders will postpone the auction to allow us to complete the short sale. Although it takes a lot of time to sell a home as a short sale, it will help save a homeowner's credit. For instance, under the current lending guidelines if a homeowner foreclosures on their home, they cannot buy a new home for 5 years. If a homeowner sells their home as a short sale, they can buy a new home in 2 years. This alone is the GREATEST benefit of a short sale. A short sale will also help a consumer continue to enjoy the benefits of buying a car. A foreclosure can dramatically stop a persons buying power. Will a short sale benefit a Realtor? YES, the Realtor involved in a short sale is paid commission. His or her commission is paid from the homeowner's lender that agrees to the short sale. A short sale should never cost a homeowner a penny. All closing fees are paid by the homeowner's lender. A homeowner will not have to pay back taxes. Everything, I mean everything will have to be paid by the homeowner's lender who agrees to the short sale.

This is the bottom line, a short sale helps everyone. It helps the homeowner save their credit. It helps a Realtor in these hard economic times earn a living and provide for his or her family. It helps new homeowner because most lenders will sell a short sale at a 10 - 15% discount off the current market values. It helps the lenders who are not receiving mortgage payments to get sell an asset that is not performing. On average a lender who forecloses a property will lose $40,000 - $80,000 more on a foreclosure then a short sale.

Is Short Sale the answer to owners who cannot obtain a loan modification? YES and YES and YES!!!

Call or email our qualified team at The Plumb Team to help you Short Sale your home in Sacramento, Placer, or El Dorado County. We are dedicated to helping NOW!

Website: www.ThePlumbTeam.com

Email: chris@theplumbteam.com

Phone (Cell): 916-230-9087 - Please leave a message if we cannot answer.

Call NOW, Time is of the ESSENCE!!!

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