An article in the Sacramento Bee was made available by the CALIFORNIA ASSOCIATION OF REALTORS®:

“With more homes going into default, and more homeowners unable to qualify for loan modifications, short sales are becoming a viable alternative for many. However, these transactions can be complicated and often require more paperwork and time than a more traditional sale.

MAKING SENSE OF THE STORY FOR CONSUMERS

• Short sales are designed to offer homeowners and banks an alternative to foreclosure. Generally this tactic is employed during real estate downturns, when it becomes more difficult for a homeowner to sell the property for an amount equal to or greater than the amount owed on the original loan. Short sales can be a win-win because they allow sellers to avoid foreclosure and can be less damaging to the seller’s credit score than a foreclosure. With a short sale, buyers have an opportunity to purchase a home at a more affordable price.

• Short sales often are more time intensive than a traditional transaction and often require additional paperwork. Because some banks are overwhelmed with short sale offers, it is important that the seller working closely with their REALTOR® to provide all of the necessary paperwork to ensure that the bank can accurately assess the situation and make a decision that benefits all parties. Sellers who opt for a short sale may best be served by a REALTOR® who has experience working with short sales and is familiar with the required paperwork.”

I totally agree! Short Sales are not for the faint of heart. If you are considering listing your house as a Short Sale in the hopes of avoiding foreclosure, make sure you are using an agent who knows what they are doing.

Give us a call at 800-895-5112. You’ll find out that we are local, we know what we are doing, and we can help. We’re happy to answer your questions and guide you through the process.

with blessings,
Claudia
Certified Short Sale Specialist

I recently got a call from a woman who found my website, www.ShortSalesTemecula.net . She was calling from Idaho about her Temecula rental property that is facing foreclosure.

She told me the house is listed and she has 3 offers. At this point in the conversation, I didn’t know why she was contacting me.

“I can’t get in touch with my agent,” she told me. “I call and call and never hear back from her. Yesterday I called the bank. They said they don’t have a short sale packet or any offers. And the sale date is already set. What can I do? I’m afraid my credit is going to be wiped out if the house goes into foreclosure.”

Honestly, there’s not much of anything I can do. I suggested that the homeowner continue to attempt to contact the agent, who is also a broker. If the agent worked for a broker, the homeowner could seek help from the broker. I also gave the woman the number for Department of Real Estate consumer hotline to ask for their assistance.

I asked how this particular agent was chosen. The homeowner said the young woman helped her lease the house. Leasing is her specialty. The agent told the homeowner she could also handle a short sale.

WORD OF WARNING– If you received a Notice of Default or you are getting behind on payments or will soon be unable to make your mortgage payments, speak to a specialist about your options.

Short Sales require specialized knowledge and expertise to complete with success. The agent must know how to properly market the market, how to compile the short sale packet, how to negotiate with the bank, how to handle multiple offers, and how to work with a seasoned escrow officer who knows what it takes to close escrow on a Short Sale.

All these steps require a high level of competence and excellent communication skills. Make sure your agent knows what they are doing! Once you sign a contract with an agent, it can be binding and you might owe them a commission even if you cancel the contract.

Feel free to contact me at 800-895-5112. I can help you discover your options and make the best choice for you and your family.

with blessings,
Claudia

Here’s another informative article courtesy of the California Association of Realtors:

“Fannie Mae and Freddie Mac, government sponsored enterprises (GSEs), were placed into a conservatorship Sunday by the U.S. Dept. of the Treasury. The Federal Housing Finance Agency (FHFA) will serve as the conservator, and the CEOs of each company were relieved of their duties. Replacing them are Herbert Allison, former Merrill Lynch vice chairman, and David Moffett, former U.S. Bancorp CFO, who will now lead Fannie Mae and Freddie Mac, respectively.

MAKING SENSE OF THE STORY FOR CONSUMERS

· Under the conservatorship, the FHFA has the authority to take up to an 80 percent stake in the companies, and will review both GSEs’ financial condition quarterly. The federal government also may inject capital into Fannie Mae and Freddie Mac, if needed. Both GSEs will be allowed to increase their mortgage funding over the next year and a half, and their stock will continue to trade, with stockholders retaining all rights in the stock’s financial worth. However, the plan does call for a 10 percent reduction per year to GSEs’ portfolios, beginning in 2010, until they have been reduced to $250 billion.

· Although the conservatorship has resulted in lower interest rates for consumers, and restored investor confidence, C.A.R. is concerned that the Treasury and the new CEOs will change the mission and role of GSEs. Without GSEs, mortgage capital eventually will be less predictable and more expensive. This may result in adjustable-rate mortgages becoming the standard loan for home buyers, as well as higher down payment requirements, and the possible disappearance of the 30-year fixed-rate mortgage.

· C.A.R. supports a structure that maintains GSEs in their current countercyclical roles and is urging lawmakers to support continued government involvement in supporting the institutional secondary market. As a result of these concerns, C.A.R. will be asking Congress to enact legislation to ensure GSEs continue to fulfill their congressional mission of supplying an affordable and stable flow of capital for home loans.”

A new video was just released by the California Association of Realtors:

“In response to numerous misleading and unbalanced news reports about Fannie Mae and Freddie Mac, C.A.R. created a new video to educate consumers about the importance of Fannie Mae and Freddie Mac, and how the Government Sponsored Enterprises operate in the market. The video, which features C.A.R.’s Executive Vice President Joel Singer, explains the crucial countercyclical role the GSEs serve, and the likely consequences should they be nationalized or eliminated.”

The video is available by clicking HERE.

with blessings,
Claudia

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As a self-employed real estate broker, I hadn’t thought of another significant reason to avoid foreclosure. A recent article pointed out that many employers are now running a credit check on potential employees. A foreclosure or bankruptcy can be viewed as a lapse of judgment or a Red Flag with regard to character.

This is another reason to consider a Short Sale if you are facing a foreclosure. A potential employer might have strong opinions about people who allow their home to be foreclosed. And these opinions might have nothing to do with your circumstances, such as illness, job loss, etc. Yet, you might not have an opportunity to explain the situation if you are eliminated early in the job interview process.

If you want more information about Short Sales and if this is a good option for you, give us a call at 800-895-5112, send us an email or check out our website www.ShortSalesTemecula.net.

with blessings,
Claudia