All Short Sales Are Not Alike

 

The  real estate market is finally on an uptrend and buyers are enthusiastically back in the game. Many homeowners, though,  have mortgages that are still higher than the current value of the  home.  For those "underwater" homeowners who need to sell,  the short sale process is an option, but should be approached carefully.

 

If the mortgage is an FHA loan,  the  U.S. Dept. of Housing and Urban Development(HUD) requires a specific process be followed in order to be considered for a short sale.  The homeowner MUST be the one to  initiate the request.  The lender will then begin the process of "approval to proceed" with a short sale and this takes approximately 30-90 days.  During this period, the homeowner's situation is reviewed for other home retention options.

 

With FHA loans, you do not have to have an offer or a listing agreement to begin the process.  If  you are unsure if  you have an FHA loan,  simply call the customer service number on your most recent statement and they should be able to give you the information.  If you have decided to sell, let them know that you would like to begin the process of being accepted for a short sale.

 

The lender will then give you instructions on how to proceed.  In all short sale scenarios, a hardship letter will be required along with proof of income, recent bank statements and a list of expenses and other documentation that the lender will request.

 

It is important to work with a real estate agent who understands the short sale process and has successfully navigated sellers through the process of getting short sale approval.  Short sale approvals are NOT automatic and are sometimes denied.   The right Realtor can greatly increase your chances of getting your short sale approved.   In addition, the right Realtor can make all the difference in how much stress and time is involved on your part during this tedious process.

 

Nancy Puder is a Short Sale Expert and the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415.
Your calls are always welcome!

 

Act Now to Prevent Loss of Mortgage Deduction!

 

Whether you are a current homeowner or would like to be one soon,  you should know that Congress, as part of their negotiations on avoiding the "Fiscal Cliff," has made direct references to "closing loopholes" and "limiting deductions" as a way to raise revenues.  It is clear that the mortgage interest deduction (mid) is high on this list of revenue raisers.

 

It is important for the public to know that losing the mortgage interest deduction  (mid), would cost homeowners on the average, almost $4000 per year.  This disproportionately affects the middle class because a larger proportion of the middle class takes the deduction.  Almost 90% of homeowners who take this valuable deduction make less than $200,000 per year and are just an average middle class family.

 

In addition to taking away the biggest deduction that most homeowners have, I believe that it would also significantly stall the housing recovery.

 

We should all be concerned about losing this important tax deduction.  Please call (202) 224-3121 today and let Congress know that you do not want them to reduce or remove the mortgage interest deduction.  This should be done now and considered urgent.  You may also go to www.KeeptheMID.com for more information and to help get the word out.

 

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415. Your calls are always welcome!

 

 

 

 

Housing Expectations for 2013

 

With the new year approaching fast, many are wondering what to expect in the real estate market in 2013.  A long-awaited level of excitement has been building over the past several months and there is an undeniable renewed energy in the real estate market today.

 

Buyer confidence is definitely back and multiple offers are common on some of the most desireable properties.  Sellers are enjoying slight to moderate price increases and getting ready to put their homes on the market.

 

Mortgage rates remain extremely low and lenders have loosened some of the regulations on the "flipping" of homes which is great news for investors.

 

CoreLogic reported Monday that October prices increased  by 6.3 percent in October 2012, the biggest increase since June 2006 and the eighth consecutive increase in home prices.

 

All in all, I am expecting a great real estate market in 2013 with lots of new opportunities for buyers and sellers.  I'm not worried about what the government will decide about the "fiscal cliff" and I am quite optimistic about what 2013 will bring.  

 

If you are thinking of selling or buying,  it would be my pleasure to help you plan your stategy for a successful year in 2013. Just call or email me today.   I always enjoy hearing from you!

 

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!

 

 

 

2013 Law Helps Distressed Homeowners

A new law, effective January 1, 2013 will help to protect distressed homeowners from losing their homes.  The California Homeowner Bill of Rights is aiming to help avoid foreclosure wherever possible in an effort to stabilize California’s housing market.

 

Most of us have heard stories of a home being foreclosed upon while the homeowner was in the middle of a loan modification or short sale.  One of the reasons for this was that the bank representative and the foreclosure department were not communicating with each other at all.  The homeowner felt "safe" because they were communicating with the bank on a regular basis.  Unfortunately, because the different departments of the bank were not speaking to each other, the result was that the home foreclosed.

 

This  new law will generally prohibit lenders from engaging in this practice which is referred to as  dual tracking.  The best part of the new law, in my opinion, is that it provides for one single point of contact at the bank for borrowers seeking foreclosure prevention alternatives such as a loan modification, short sale or deed-in-lieu foreclosure. 

 

The new law generally pertains to owner-occupied properties with one-to-four residential units, with certain exceptions.  To view a more detailed discussion of the California Homeowner Bill of Rights, it is available at http://www.car.org/legal/miscellaneous-contacts/realegal-chart/2012-realegals/sept28revised/.

Assembly Bill 278 and Senate Bill 900 (codified as Cal. Civil Code §§ 2923.5 et seq.) (effective January 1, 2013).

 

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!