Archive for April, 2009
Short Sales Impact on Credit Scores
April 28th, 2009 categories: Foreclosures, Loan Modifications, Real Estate, Short Sales, Taxes
How the credit agencies are reporting short sales
At today’s realtor tour meeting our speaker, a former owner of the Money Store, offered some information about the impact short sales are having on seller’s credit scores. According to his statistics a short sale affects credit by reducing a seller’s FICO score on average 80-100 points. In contrast a foreclosure or bankruptcy impacts the score between 250-280 negatively. It’s obvious from this information why a homeowner should pursue a short sale but I would caution that getting your home on the market at the first sign of distress is a must for a successful short sale.
Another bit of important information is the impact a short sale will have in terms of taxes. The Mortgage Debt Forgiveness Act of 2007 states that non-recourse money (original purchase money) is a non-taxable event for sellers of homes sold from Jan 2007 until Dec 2012. California has not to my knowledge extended this beyond 2009. This is not so with recourse money IE: equity lines or refinances. However, if you took out a loan to put in a pool or landscape and you find yourself in a situation where you have to short sell you might be able to avoid paying taxes on the borrowed money IF you can produce receipts. Of course talking with a CPA is always one of the first things I recommend to my clients.
Talking with a knowledgeable Realtor is your first line of defence and can offer you a dignified exit during a stressful time in your life. If you would like more information or need to speak with me please call and let me explain your options before things snowball and get out of control.
To subscribe to my newsletter click on:
http://www.feedburner.com/fb/a/emailverifySubmit?feedId=2571487
| Discussion: 10 Comments »
Property Tax Reassessment Scam
April 24th, 2009 categories: California Property Taxes, Real Estate, Tax Incentives
Official looking tax documents
There is a company sending out official looking tax reassessment statements claiming they can help you get your property reassessed and thereby save you money on your property taxes all for the low cost of $179.00. The fake document contains all your tax information which is readily available via the county’s tax records. The simple truth is that you can contact your county tax assessor and ask for a reduction in your taxes for FREE and all it requires is that you submit comparable homes sold since Jan 1, 2009. As a realtor we provide this information when we do a market analysis prior to listing homes for sale. This window of opportunity extends until June 30, 2009 so you will need to have your request submitted by that date.
This company, Property Tax Reassessment, is located in Los Angeles and does not have a website available. From the moment I called them they discriminate between people who have sent their ”service fee” in and those who have not. I chose option two and was directed to an operator who was able to tell me I could direct questions to an email but there was not a website to get more information. According to Consumerist.com they have been mailing out these official looking documents across the state and the public is advised to contact their local attorney general and of course don’t send them any money!
To subscribe to my newsletter click on:
http://www.feedburner.com/fb/a/emailverifySubmit?feedId=2571487
| Discussion: No Comments »
Realtor Tour in Folsom CA
April 21st, 2009 categories: Folsom CA, Real Estate
New Listings on Tour for April 21, 2009
Every Tuesday (except the first of the month) in Folsom CA we have a real estate tour for all the brokers to preview properties that were just listed in order to get their opinions and familiarize the real estate community with the home. Today’s realtor tour in Folsom Ca originally offered six homes to preview but two were deleted due to selling prior to our meeting this morning. The submission cut off for homes is Friday at 6pm so it appears that the sales of those two properties happened over the weekend which is a positive sign that properties are selling quickly if priced right.
Nisenan Park in Folsom CA
There was a great property in Empire Ranch listed at $589,000 that was a knock out. A single story built by Elliott Homes in 2004 with upgrades and a backyard built for entertaining. Located within walking distance of the new high school Vista Del Lago and Nisenan Park (which is a wonderful area to walk, bike or jog) and NOT a short sale or bank owned property. Elliott homes will be developing this area sometime in the future and from what I understand are selling some of the model homes in the adjacent subdivision.
There was also a great condo across from Broadstone Racquet Club that has all the upgrades: granite counters, gorgeous tile flooring and a great location with open space behind. This one listed at $235,000 and is a fair market sale. The reason I emphasize that is because the time frames to purchase a short sale can extend out many months (my longest being 8 months) and banks are usually unwilling to negotiate and insist on selling AS-IS. For more information just send me an email and I’ll be happy to enroll you in my homes by email program where you can set up your own criteria to search these and any other homes on the market.
To subscribe to my newsletter click on:
http://www.feedburner.com/fb/a/emailverifySubmit?feedId=2571487
| Discussion: No Comments »
California Prevention Act
April 14th, 2009 categories: Foreclosures, Loan Modifications, Real Estate, Short Sales
AKA: Extend the moratorium on Notice of Default filings
There’s been a lot of talk about the extension of the Notice of Default (NOD) filings by the senate bill 1137 passed this February and it’s impact on the housing crisis in California. According to the report it extends the filing of the NOD’s (Notice of defaults)by 90 days so it seems that homeowners will gain an additional 3 months before they hear from their banks.
I’ve heard both sides of this argument and frankly don’t know which side I’m inclined to favor. Some folks claim that it will keep a flood of homes from hitting the market all at once. Others say it will prolong this down market and we should just let the market adjust itself without meddling in it. Given the amount of short sale business that I’ve been doing lately I’m in favor the freeze because it allows us Realtors to get in front of the banks with our listings a bit faster. Short sales and REO’s (bank owned) are driving this marketand with the next wave of adjustments on the horizon it makes sense for the banks not to overload their already overworked loss mitigation depts.
Currently short sales are taking an average of 21-30 days for the bank to respond. Some lenders are so impacted that you cannot get them to answer a phone call. Email is not the typical mode of communication so the result is slow processing and little understanding for the plight of the homeowner, let alone buyer. So what is the solution? I counsel all parties involved to be patient…remember what Mom used to say about it being a virtue? The payoff can be very good for those who are willing to go the distance and with the delay in NOD filings you have plenty of time to get through the process without fear of the house being foreclosed on in the middle of the transaction.
If you are looking for good counsel it pays to talk with a Realtor who has been working in the short sale arena. There are attorney’s advertising for loan modifications who also provide short sale assistance but there is a big difference and that is how they get paid. Typically when you hire a Realtor to represent you in your sale or purchase the commission paid to the agent does not occur until the transaction closes. When you hire an attorney to represent you then you pay them a fee…regardless of the outcome. So be wise and understand that you will still be liable to pay the attorney even if you don’t succeed in getting a loan modification and your home needs to be sold short. It doesn’t make sense to go further into debt when your Realtor can guide you through the process. I’ve been successfully closing shorts sales and would gladly help you get through the process.
To subscribe to my newsletter click on:
http://www.feedburner.com/fb/a/emailverifySubmit?feedId=2571487
| Discussion: No Comments »
