Lately I’ve been handling bank-owned properties (REOs) for Freddie Mac. Over one-third are the result of failed short sales!

Often the former listing agent tells me there were multiple offers on the property and they were just waiting for bank approval. When I tell an agent that the bank foreclosed, they are usually shocked.

“How can that be?” they ask me. “I’ve been working with the bank for months.”

Here are some relevant facts:

1. Bank/lender employees don’t have to tell you when they foreclose. If the property has been in default over 121 days, the bank can foreclose at their discretion.

2. Just because you or your agent are talking with the bank, it doesn’t mean that automatically the Trustee Sale date has been postponed. You have to petition the bank for an extension.

3. Not all bank/lender employees tell the whole truth. I’ve talked to many homeowners and agents who thought they were in negotiation with a Loss Mitigator. A short sale packet and reasonable offer had been submitted to the bank–and the bank foreclosed anyway.

If you, a friend or relative are considering selling your home as a short sale, be sure to hire an agent or broker who is an experienced, local professional with a proven track record. Your decision can make the difference between starting over in 2 years or less with minimal damage to your credit OR having your credit reports smacked with a FORECLOSURE that will make it challenging to get a mortgage for the next 5 years (at least).

Feel free to call us at 800-895-5112 with your short sale questions. We have a proven track record (with testimonials) and we actually LOVE helping homeowners avoid foreclosure.

with blessings,
Claudia

You might be feeling down and depressed if you watch the news on television or read the newspaper. Is there any good news in this time of challenge and change?

A couple of week ago, I attended a webinar presented by California Association of Realtors. Their economists DID have some good news. Here are highlights:

* While U.S. sales are flat, real estate sales in California are up. 2008 sales are up 12% so far over 2007, which will be the trough for California.
* California experienced a steeper decline than the nation as a whole, and we are ahead of the curve as we head towards recovery.
* From July 2007 to July 2008, California prices declined 40.3%. Some areas continue to decline even while sales volume increases. Good news? Homes under $500,000 are experiencing the sharpest decline. Homes over $500,000 are experiencing more stable pricing.
* The price peak for Riverside/San Bernardino area was July 2007. Our area is now 42.6% decline from the peak. Good news? Housing affordability in California has DOUBLED. In one year it has gone from 24% to 48%. Since first-time homebuyers drive the housing market, this is positive news.
* The peak of adjustable mortgages resetting was late 2007 and early 2008. Therefore, we are less likely to see foreclosures and short sales throughout 2008 and into 2009.
* C.A.R. economists project price stability in the second quarter of 2009. Sales bottomed out in 2007. We had a quick decline and are likely to experience a quick recovery.

Good news might be scarce, yet it ALWAYS exists in every market. If you are concerned about holding onto your home, give us a call at 800-895-5112. We’ll be happy to discuss your options and help you make the best decision for you and your family.

with blessings,
Claudia

Courtesy of the California Association of Realtors:

“Senate approves revised version of Emergency Economic Stabilization Act of 2008
The Senate on Wednesday evening approved a revised version of the Emergency Economic Stabilization Act of 2008 in a 74 to 25 vote, clearing the way for full consideration by the U.S. House of Representatives. The House voted down an earlier version of the plan on Monday and is expected to consider the revised version by Friday[today].

MAKING SENSE OF THE STORY FOR CONSUMERS

· The revised plan, which is designed to shore up the nation’s financial markets, includes a temporary one-year increase in Federal Deposit Insurance Corp. (FDIC) caps for bank and credit union accounts. The cap increases are critical because they increase the funding backstop the public relies upon should their banks fail. The plan also includes extensions on several business tax breaks and adjustments to the alternative minimum tax (AMT) for individual taxpayers. These, as well as the FDIC cap changes, are amendments lawmakers believe will help bolster approval by the House.

· If approved, the financial rescue plan would allow the government to buy residential and commercial mortgage-related assets, including mortgage-backed securities and loans, in an effort to ease current credit constrictions impacting businesses across all sectors, including the housing market. Also included in the revised plan are provisions to help struggling homeowners avoid foreclosure; increased oversight of the plan; and a limit on compensation for executives of the troubled financial firms that receive assistance.

· Some analysts believe that the economy will worsen if lawmakers fail to pass the bill, which will directly impact the housing market. As obtaining credit becomes more difficult for many businesses, unemployment rates, currently standing at 7.7 percent in California in August 2008, could rise, hindering consumer spending and the demand for housing.”

Check out this VIDEO for information on what the bailout means to you.

with blessings,
Claudia