-
If you are in default on your home loan or about to default,
and you wondering if you have time to sell your home, you should be aware that time
is of the essence. Once you miss a payment, your lender is required to contact
you by telephone. Within 30 days thereafter, they can file a Notice of Default.
There is a 90 day waiting period before your lender can file a Notice of
Trustee's Sale. Then there is another 20 day waiting period before your home is
sold at public auction. The Trustee sale can take place on the 21st after the
Notice of Trustee's Sale has been filed. In essence, these days lenders are way
too busy and are not following the California foreclosure timeline. Some homes
are taking up to two years to go to foreclosure sale. So you may have more time
than you think, but you don't want to wait because you can never be certain
what your lender is going to do. It is smart to contact your lender and keep
them posted about your intentions. You might also want to contact a California
foreclosure defense attorney for legal advice on how to defend your home
against foreclosure.
Selling Your Home
Getting your home on the market for sale quickly and marketing
it to the right buyer is essential. Even if you are upside down and require
your lender's approval in a short sale, selling your home as a short sale makes
more sense than doing nothing and allowing the home to be foreclosed and ruin
your good credit. If you have equity, then it makes even more sense to sell the
home if you can no longer afford it, pay off the loan and walk away with some
cash.
A Simi Valley distressed home sale requires the attention
and expertise of a local Simi Valley real estate agent who understands the
California foreclosure timeline process and is familiar with marketing
distressed home sales and real estate market trends in the Simi Valley area.
Pricing your home properly is the key to getting the home sold for top dollar
and sold fast so you can avoid foreclosure. The Realtor can help relieve some
of your stress by developing a custom marketing plan for your home and working
with you and the buyer to make sure the transaction goes smoothly and closes in
a timely manner.
Don't wait until it is too late and you lose your home to
foreclosure. You have options. If you can no longer afford the home and you
need to downscale to a smaller or less expensive home or rent for awhile, a
Realtor can help you sell your home. Contact
a Simi Valley Realtor today to find out how much your home is worth so you can
make an intelligent decision about selling it and avoiding foreclosure.
-
Lake Lindero, Agoura Hills
-
The 2 story at 30553 Canwood St has been sold.
Property information
-
I've been working with Select Portfolio Servicing (SPS) on a short sale deal now for about a month. They hold the 2nd lien, a home equity line of credit, where the homeowner owes approximately $83,000 and has been delinquent since December of 2010.
So far SPS has been pleasant to work with. They have honored most of their commitments and have been courteous. Second lienholders are typically the most difficult to deal with. That said, a lot of it has to do with the attitude of the agent (myself). You cannot approach it as a hard negotiation. You have to build rapport and make sure they know we are all on the same side. Hard negotiations are the least effective and many agents and negotiators don't understand that.
We initially offered $3000 for a full settlement, but they counter offered us to $6000. Then we offered $4560 and they took it. This worked out EXACTLY according to my negotiations plan; PRECISELY to the dollar I planned to give them. Unfortunately I can't publicly post the details of how I did it because my strategy is unique to myself and a few of my associates, and I need to keep my competitive advantage. However, if you are a homeowner looking to short sell, we can discuss my strategy over the phone or in person.
I use a proactive approach when negotiating short sales. It doesn't always go exactly as planned, but the strategy I use definitely ensures a higher success rate than almost all other short sale agents.
I just received the approval letter yesterday where they forgave almost $79,000. It's very common for a 2nd lien-holder to ask for 10% of the amount owed but in this case I was able to get them to accept only 5%. On top of that, NONE of the money is coming from my client. The 1st lien-holder, Citibank, is paying the entire $4560. To view the approval letter, see the attached file.
If you or someone you know is behind in payments or upside down on their home, and is considering a short sale, please call me at 805.813.7302 or email me at sean.crosier@yahoo.com. I am happy to give a free no obligation consultation to see whether or not a short sale would be the right move.
-
Bank short sale transactions have been quite helpful the last few years. In fact, since the government’s HAFA program has been enacted, the program has helped many Simi Valley homeowners, who are upside down on their mortgages obtain short sale approval from their lenders. In order to participate in the program, both the lender and the borrower must agree to the terms. The borrower’s mortgage balance must not exceed $729,750, with slightly higher limits for 2-4 unit properties.
The property must be the borrower’s primary residence or the borrower must show that they resided at the property if the property is currently vacant or has been rented within the last 12 months. The borrower must have been turned down for a mortgage modification under the government’s HAMP program, or qualified for the HAMP program, but unable to make two or more of the trial payments. The loan servicer is no longer required to verify the borrower’s financials or determine that the borrower’s mortgage payment exceeds 31% of the borrower’s gross income. The borrower does have to sign a Hardship Affidavit. Some loan servicers may still require that the borrower provide them with updated financial information though.
The Program allows borrowers to receive pre-approved short sales terms prior to listing their home with a local Simi Valley Realtor including the listing price and net proceeds. This is helpful to you, your listing agent and the buyer as well because it take the guess work out of the equation. You are not allowed to sell your home to any relatives or persons you have personal or business relationships with, and the property may not be reconveyed back to you within 90 days after the closing of the transaction. Realtor’s commissions are also paid up to 6% of the purchase price.
You will need to sign a short sale agreement with your loan servicer. The agreement allows the servicer to extend it for up to 12 months, and requires that the proceeds from the sale satisfy the borrower’s mortgage debt. The loan servicer must approve or disapprove the sale terms or provide a counter offer within 30 calendar days from receipt of the purchase and sale contract. Loan servicers and investors receive incentives from the government for participation in the short sale process and the borrower gets a relocation fee of $1,500.
The HAFA program has helped to speed up the short sale process. The HAFA program ends December 31, 2012.
-
California has created more new jobs between September 2010 and September 2011 than any other state, with the creation of 250,700 additional jobs. The state has more high tech jobs as well with over one million, and it is home to 53 the fortune 500 companies. That is why the demand for living in California is so high. Right now, housing prices have never been so affordable throughout the Southern California market, and Simi Valley is no exception. Buyers have been choosing Simi Valley as their place to call home for this very reason. In fact, Zillow reported that the median sales price for a home in Simi Valley as of September 30, 2011 was $354,500, with the median list price of $395, 000. There were a total of 187 homes sold. California mortgage rates on a 30 year fixed rate mortgage are averaging around 3.92%. With rates so low, buyers have no excuse not to buy their dream home.
Historic low interest rates and affordable home prices are just two good reasons why buyers are taking advantage of this market to find their dream Simi Valley properties. Sellers are motivated as well and are offering all sorts of incentives to buyers to entice them to buy their home. For those of you who are interested in distressed properties, there still is a large selection of foreclosure and short sale homes to choose from in most price ranges and neighborhoods. You should be able to find luxury homes as well. Your Simi Valley Realtor can help you with all your home buying needs by putting you in touch with a reputable mortgage broker or lender that can help you get pre-qualified so you know where you stand and how much home you can afford. Your Realtor will then be able to narrow down the homes that only meet your criteria and help you with the negotiations with the seller and their agent.
In fact, according to recent studies conducted at a 2011 Realtors Conference and Expo, the conclusion was that over a 31 year and 23 metropolitan area study, the ownership benefits of appreciation and interest deductions revealed that homeowners accumulate more wealth than renters. Also owning a home enhances personal happiness and price and reduces crimes according to industry studies. A homeowner’s net worth according to the Federal Reserve Board is 45.9% more than that of a renter. People who plan on staying in a home for a long time benefit much more by buying a home than renting. A study conducted by Johnson, Beracha, Hilla Skiba and Mark Hirshey determined that since housing affordability is at all time records, with 23 states at a 30 year record level of affordability and all 50 states at a 30 year affordability for mortgage payments, homeowner is much more affordable now than it has been in the last 30 years. So if you are thinking about purchasing a Simi Valley home, now is one of the best times to do so especially, towards the end of the year when sellers and lenders holding REO’s are extremely motivated to sell their properties.
-
I am currently working on a short sale where Citibank is the holder of a 1st Deed of Trust. So far I am quite pleased with the short sale process at Citibank. There has only been one instance of an employee of Citibank being less than helpful and it was only an entry level person who was just naive.
From the initial processor all the way to the bank negotiator, I have been very satisfied. It really feels like we are all on the same page and we are in it together. Everyone wants the deal to close because it makes sense for all parties.
The short sale negotiator has even allowed for a good chunk of the unpaid HOA dues to be paid from the proceeds of the sale. He also is paying all of the back taxes that are due which equates to about 1.5 years worth of taxes! We have been able to postpone the Trustee's Sale (foreclosure auction) twice already.
Citibank issued us the attached short sale approval letter on 11/09/2011. In the approval letter, they agree to accept just under $143,000 as payment in full on a $325,000 loan balance. Citibank is forgiving $182,000 and agreeing to never come after my client for the deficiency.
On behalf of me and my clients; Thank you Citibank!
If you or someone you know is facing foreclosure or is interested in selling their home for less than they owe, please contact me directly at 805-813-7302 (call or text). You may also email me at sean.crosier@yahoo.com.
-
Accordingly to data released by RealtyTrac, Simi Valley real estate market has approximately 372 properties that are in default right now with 317 scheduled to be auctioned at area foreclosure auctions. There are approximately 26 bank foreclosure properties available for sale, and there is a high demand for distressed properties among buyers. Distressed and non-distressed sellers are extremely motivated to sell their homes and there are a number of terrific bargain homes both foreclosure and non-foreclosure. Buyers have choices in just about all price ranges and Simi Valley neighborhoods. Bank short sales have been popular as well. Lenders have been cooperating with sellers in helping them get short sales approved and closed. Foreclosure filings have increased by10%, month to month in October, but that number is still down 23% from October 2010. Approximately one in every 563 households received some sort of default notice or had their home repossessed during the month of October 2011. Florida, Pennsylvania and Indiana saw an increase on a month to month basis in foreclosure filings.
According to the National Association of Realtors existing home sales for September 2011 were down but are still higher than a year ago. The chief economist for the NAR, Lawrence Yun, reported that existing homes sales have pretty much been stable this year, but low. Homes are more affordable, and more borrowers are attempting to buy homes, but the contract fall out rate is double that of September 2010. Although the number of buyers is higher than last year, many of these creditworthy home buyers are being denied credit because lenders have tightened lending standards. Also loan limits in high cost areas in California such as Los Angeles and San Francisco have been lowered. This means that buyers purchasing homes in these high cost areas are now having to pay higher interest rates for a jumbo mortgage.
Although existing home sales in the West fell 8.8 percent n September 2011, they are 10.7 percent higher than September 2010. The median price for a home in the West was $207,400, which is 4.5% below a year ago. Nationwide, distressed homes accounted for 30 percent of all sales in September 2011, with 18 % from foreclosure sales and 12% from short sales. Foreclosure sales were down from 31% in August 2011 and 35% during September 2010. Total housing inventory at the end of September 2011 declined 2.0%, representing an 8.5 month supply, compared with an 8.4 month supply in August 2011. The NAR believes that unless Congress reinstates the higher loan limits, the housing market recovery will be much slower and slow down the general economic recovery.
-
California lenders really do not want to foreclosure anymore and prefer short sales now as an alternative to foreclosure because they are more effective, and the lender does not have to worry about selling the home at a auction or going through the cost of a formal foreclosure. Granted, they still lose money and the borrower loses their home, but it would cost the lender and the borrower more time and money to go through a formal foreclosure process. So for Moorpark and Simi Valley distressed homeowners who need to sell their homes because they are experiencing a financial hardship and are upside on their mortgages, a short sale process may be the best alternative to avoiding foreclosure. Talk to your lender to find out if you qualify for a bank short sale and ask them to send you the forms to get started. You might also want to speak with a California foreclosure defense attorney to find out if you have any other options. It is recommended that you hire a local short sale Realtor to list and market your property to find the right buyer. Depending on whether or not you are in default on your mortgage, time is of the essence and a Realtor can help you facilitate the short sale process by finding you a buyer that is committed to buying your home.
Short sales are in high demand because buyers know they are getting a good quality Simi Valley property for under market value and built in equity. While the process can be frustrating and lengthy, buyers who are familiar with short sales are willing to wait for your lender to approve the transaction because they know that a short sale is a good way to find a home that they may not otherwise be able to afford in your neighborhood. Investors buy short sales frequently to rehab and rent or for resale. The good thing about selling your home to an investor is most investors pay cash and can close quickly making the transaction more appealing to your lender, who is also interested in closing the transaction quickly. However, your lender may also consider approving your short sale to a qualified buyer that has been approved for a loan and provides their pre-approval letter with their offer.
The shift by lenders to short sales also signifies that the housing market is heading towards recovery. Just a few years ago, Simi Valley lenders were more apt to foreclose than to consider a short sale. Today, they realize the benefits of short sales for them, their borrowers and buyers and have chosen to cooperate with their borrowers and approve short sales.
If you or someone you know would like to find out if a short sale can help, please feel free to call me at 805.813.7302 to discuss your situation.
-
Buying a home is one of the biggest investments you will ever make. While most buyers start their home search on the Internet, being educated about home prices and having proper representation is important to ensure that your home buying experience is enjoyable and profitable. Here are a few tips to help you get started in your home search:
Choosing a Realtor. The Realtor is familiar with the housing inventory in the area because they have either previewed the homes and/or have relationships with sellers and other brokers in the neighborhood. The Realtor will advise you when a property comes on the market that meets your criteria and arrange for a showing for you. California real estate disclosure and contract laws are complicated, and Realtors understand local customs and are skilled at contract negotiations. A knowledgeable Simi Valley Realtor will be looking out for your interests during your home search, during negotiations through closing and beyond.
Checking your credit report. Before you talk to a lender, obtain a copy of your credit report and score to determine if there are any errors. Dispute any negative items or errors that are contributing to lowering your score. The higher your score, the better interest rate you will receive. A 700 or over score will give you more loan options.
Getting pre-qualified with a lender. Your Realtor can recommend a reputable lender or mortgage broker who will pre-qualify you for a loan so you know exactly how much home you can afford. This will also help your Simi Valley Realtor determine the right homes to show you that meet your expectations and price range. The lender will also give you a pre-qualification letter to present to the seller at the time you make your offer giving the confidence that you are qualified to purchase their Simi Valley real estate.
Considering location and your lifestyle. Make a list of features you want and need. Your list should include the sq. footage, number of bedroom and baths, upgrades and amenities. If you are a single professional, then you may want a condo or townhouse that is within walking distance to restaurants, nightlife and entertainment venues. If you have a family, a single-family home with a yard in a good school system may be most important to you.
This sample checklist will help you get started:
• Type and style of home, single family, condo, townhouse or loft, one story, two story, Mediterranean, contemporary, modern, Spanish, etc.
• Price range
• School system
• Sq. footage
• Total rooms and number of bedrooms and baths
• Exercise room, media room, office, family room, playroom for children
• Pool and spa
• Yard
• One or two car garage
• Pet friendly ( home association or condo or townhouse association rules)
• Amenities (Fitness center, clubhouse, community pool and spa)
• Proximity to transportation, shopping, restaurants and entertainment
There are many variable factors that you must take into consideration when purchasing Simi Valley real estate including local market conditions and interest rates. In a buyer’s market, there will be more inventory, competitive prices and motivated sellers. A seller’s market means fewer homes available, increased competition from other buyers and less motivated sellers. Understanding the market conditions and having an experienced real estate professional representing you will empower you to make better decisions and avoid costly mistakes.
-
Finding a local Simi Valley Realtor is essential in this tough and constantly changing real estate market. Working with a local Realtor is recommended whether you are selling your home or buying one because a local agent is familiar with the housing inventory, customs and practices of the area and has established relationships with other agents and past clients. Agents who have listings in the area tend to also have buyers for homes and have information about homes that are not on the market yet or know for sale by owners who are willing to cooperate with them and their buyers. They are familiar about the community and schools as well as neighborhood restaurants and shopping. The Realtor has up to date access to new listings and current inventory through the local MLS and will be able to provide you this information to help you make the right decisions. Also, the company they work for matters. Many times, one or two companies dominate the area, which means they will have more inventory to show buyers and have affiliated services that offer you incentives and discounts on title, escrow, relocation, home inspections, home warranty plans and other vendors and programs.
Where to Find an Agent?
Getting a referral from a friend, family member of business associate is a great way to find a Realtor. Otherwise, you can always look on the Internet and see who has a presence in the area, or check the Sunday open house and real estate ad section of the newspaper. You might want to interview a couple agents to see which one you prefer working with. Visiting a local open house is also a way to find a Realtor whether you are selling or buying Simi Valley real estate. This way you can see how they interact with buyers and neighbors and get a feel for their style and personality as well as their knowledge of the neighborhood and home prices. If they are unable to help you, they can refer you to another agent in their office as well. If you live out of the area, then you may want to work with an agent that you are corresponding with over the Internet that responds to your requests and sends you information that meets your criteria and needs.
Qualities and Criteria to Consider
• How long have they been in the business, and how long with their company?
• Do they do all their own showings or use assistants?
• What type of technology do they use?
• What professional designations or specialties do they hold? This means they have taken additional training.
• Are they members of the National Association of Realtors? NAR members are held to a higher stand and code of ethics.
Having a good agent who puts your interests first is important in helping you with your real estate needs. Good negotiating skills are important, but you also want someone who gets along well with other people, who is friendly, respectful and has a good reputation in the community. Choosing the right agent will not only make your real estate experience more enjoyable it will save you time and money.
-
Credit markets are tight and lenders are requiring larger down payments, higher credit scores and financial documentation before approving loans. There are some things Simi Valley/Moorpark buyers can do to improve their chances of obtaining a good mortgage rate and favorable mortgage terms. Here are five tips to help you in your search:
• Clean up negative items on your credit report. Obtain a copy of your credit report and dispute all negative items and errors in writing with the major credit bureaus. Your creditors must respond in 30 days from the time they receive the dispute or the credit bureaus will remove the items from your report permanently. Also, negative items fall off on their own after seven years, except for bankruptcy which takes 10 years and judgments, which can be renewed for longer periods of time.
• Save for at least a 20% to 25% down payment for your Simi Valley or Moorpark real estate. With good credit and a 25% down payment or more, borrowers get loans approved easier. However, if that size a down payment isn't possible, FHA loans will allow a 3.5% down payment. FHA loans are common and you do not need to be a first time home buyer. The mortgage is backed by the government. These loans are relatively easy to be approved for, but the property you purchase will need to be in really good shape. Any additional modifications to the home that are not permitted could kill the deal.
• Comparison shop for rates, but watch out for pre-payment penalties, balloon payments or teaser rates and ads that sound too good to be true because most likely there is a catch.
• Work with a reputable lender or mortgage broker. Your Simi Valley Realtor can recommend someone they work with on a regular basis who they trust.
Mortgages Products
There are are variety of mortgage products to choose from ranging from 30 year fixed, 15 years fixed, 5/1 ARM, 30 year fixed jumbo and 5/1 jumbo ARM. Variable rate loans re-adjust so be careful or you may not be able to afford your monthly mortgage payments. If you are planning on staying in your home for more than five years, a fixed rate mortgage is the best type of mortgage. For borrowers who are planning on owning their property for less than five years or anticipate their income to increase, a variable rate mortgage might be a better choice.
Financial Information
Lenders require financial information such as copies of your last two paycheck stubs, your W-2 or 1099, your last two year’s income tax returns and recent bank statements. They are looking to make sure your debt to income ratio is within their guidelines. So if you are turned down, don’t be discouraged, you can always reapply when the credit market is more favorable and your score is higher or look for seller financing.
It is a good idea to start your loan approval process before you find a home so that you are ready to close quickly once you do find the property you want to buy. Loan approvals are taking as long as 60 days so getting a pre-approval will help strengthen your offer and let the seller know you are serious about purchasing their home and closing the transaction.
-
There are many factors that go into choosing a Simi Valley or Moorpark neighborhood where you want to reside besides price. The common ones are lifestyle, good schools, low crime rates, close proximity to where you work, transportation, nearby restaurants, shopping, entertainment, recreation, sporting events or being close to friends and family. Narrowing down choices to one or two neighborhoods to start your search is suggested. Also, you will save time by working with a local Simi Valley Realtor. The Realtor may suggest a neighborhood that you were not aware of, especially if you are new to the area.
The type of neighborhood may depend on the style of housing you want. Mixed use neighborhoods tend to have more condos, townhouses or loft style housing which appeal to young single professionals or baby boomers who are down scaling to a property with little or no maintenance. Suburban neighborhoods have more single-family homes close to schools, shopping centers, family style restaurants, movie theatres, recreation facilities such as gyms, parks, tennis courts, golf courses and bike paths.
What to Look For?
Well Maintained Homes
If you already live in a neighborhood you like, you may decide to stay you want to stay there because you are familiar with everything it has to offer and/or you may have friends and family that live nearby as well. However, if you are moving from across town, you might want to drive around the area and also attend a few open houses to see if you like the home styles, feel of the neighborhood and whether the homes look well maintained. If you see yards with overgrown grass and abandoned or vacant properties, you may want to inquire from a neighbor why there are so many homes that are unoccupied. However, if you see smaller homes mixed with larger ones and construction going on then the neighborhood may be going through a redevelopment, which means home prices will generally appreciate. Your Realtor can also provide you with information regarding home values so you can see which neighborhoods have maintained their homes values better than others.
Close Proximity to Transportation
Being close to freeway access and commute time is especially important here in California. Having alternate routes to take to work besides the freeway can be challenging depending on where you work so you should take that into consideration when making your decision about which neighborhood you are going to live in. Also, if you have children that go to different schools, you have to factor in your time to drive them, then commute to work and pick them up.
Public Schools vs. Private Schools
You may have to weigh the affordability factor of a particular neighborhood that has a lesser rated public school system and instead choose to send your children to private school. These are difficult choices that families face today given the economy, job market and state budget cuts to educational programs and services that schools are able to provide. You can obtain information about the school’s performance and rankings online to help you make your decision.
The best advice is to take your time in your home search, be flexible and willing to make compromises because you may not be able to find all that you want or need from the neighborhood depending on your budget and lifestyle. The important thing to remember is choose a home that you are going to feel comfortable living in and a neighborhood that you and your family will enjoy being part of and proud to call home.
-
A pre-approved short sale means the seller’s bank has approved a sales price which they will accept from the seller’s buyer to complete and close the short sale transaction. When a buyer makes an offer on a short sale, it is contingent upon the seller’s third party lender or lenders’ approvals, if there is a second on the home. The bank short sale process is a lengthy one, which can take a minimum of 90 days to a maximum of a year or more. So while the seller and the buyer are waiting for the lender to review the offer and respond back in writing, sometimes the buyer decides to cancel the transaction because they get tired of waiting or their circumstances change. If they negotiate an out clause in the purchase, which most buyers do, they can cancel after a certain number of days set forth in the contract if they have not received a written response from the seller or their lender regarding the offer.
The good thing about a pre-approved short is that the next buyer has the advantage of knowing what the bank wants for the home. It takes the guess work out of making an offer. There is generally a short window of opportunity for the seller to find another buyer though. Otherwise, they may have to start the short sale process all over from scratch. So you should inquire from the seller or their Realtor when the bank approved the short sale selling price, and how much time do you have to close the transaction? While you can try and offer a bit less than the pre-approved short price, it is not recommended because the bank is pretty firm on what price they will accept. Have your Realtor find out if they are willing to go any lower before you waste time. If the price is at or below market value, you might just want to go ahead and make the offer at the pre-approved price.
The response time from the bank is much shorter on a pre-approved short sale because they have already taken the time to order a broker price opinion and review the seller’s financial documents to make sure they qualify for a short sale. The bank will usually respond to the offer in less than 30 days. All the bank will be doing is reading the other terms and contract contingencies set forth in the buyer’s purchase agreement to make sure they approve them, and to make sure the buyer is qualified to close the transaction. While banks prefer all cash buyers, you don’t have to pay cash to buy a short sale. Be sure your financing is all lined up though because generally on pre-approved short sales the bank wants the buyer to close very quickly, sometimes less than 30 days.
If you are in hurry to find a distressed home because you have a time restraint, you might want to ask your Simi Valley Realtor to find a pre-approved short sale or a REO bank owned property. An REO means the bank already owns the home, and you will receive a quick response to your offer as well. Usually within a week or less. Since banks are not in the real estate management business, they are in a hurry to sell their foreclosure inventory as soon as they can. Both short sales and REO’s offer you an incredible opportunity to purchase a home at a discounted price. Bank short sales are generally in better condition than REO’s, but both are good values. Both properties are sold in as-is condition so it is recommended that you carefully conduct your physical inspection. Banks generally do not make repairs or give any warranties because they are selling the house at discounted price below market value. Your Realtor can recommend a home inspector. You might also want to purchase home warranty plan, which is like an insurance policy that covers your home’s systems if they need repair or replacing after closing. Of course there are exclusions to the policies so you need to read them carefully or pay extra for added coverage that is not part of the standard hone warranty plan.
If you’re looking to buy a short sale or a bank owned property (aka REO or Foreclosure), give me a call at 805-813-7302.
-
If you are thinking about buying a new home, you may want to consider a luxury bank short sale or foreclosure home. In fact, with so many distressed homes available, there are some terrific bargains on luxury homes that are being sold at deep discounts. This is especially true in Simi Valley, Moorpark, and Thousand Oaks. Today’s buyers have the opportunity to purchase a luxury home in their favorite neighborhood that they could not afford before the real estate bubble burst. With interest rates at historic lows and affordable inventory, savvy buyers are investing in luxury foreclosures and bank short sales recognizing the great opportunities they offer to purchase a property with built in equity.
Making an offer on a short sale is contingent on the sale being approved by the seller’s third party lender. So make sure you negotiate an out clause after a reasonable amount of time in case you find another opportunity. Also, keep your contingencies to a minimum such as a shorter home inspection time. Contingencies typically do not start until the lender has given their written approval. If you are obtaining financing, then you will need to include a loan and appraisal contingency too. Be sure to have your financing ready to go so that when the lender does approve the sale, you can close quickly. Paying cash is also another way to get the lender to accept your offer. Keep in mind that the short sale process can take as long as six months or up to a year. If you do not have any time restraints, then a short sale may be the right decision for you. However, neither the buyer nor the seller has any control over the time it takes the seller’s lender to review the offer and decide whether or not they are going to accept it, so you need to be patient.
Lenders are more willing to approve short sales now because they recognize the time and money they save by agreeing to allow the seller to sell their home for less money than they owe on their mortgage balance. Since they have so many distressed sales to handle, they cannot get to each one quick enough. Even though the government has put pressure on them to shorten the process and has offered them incentives to do so, the process is still taking a long time. Your Realtor will notify you when there has been a response from the seller’s lender.
When you make an offer on a REO (real estate owned home), you can expect the bank’s response time to be much quicker-usually within a few days or up to week at most. The bank already owns the home and has listed it with a local Realtor so they are motivated to sell the home because they are not in the real estate business and need to get their inventory off of their books. Some luxury foreclosure homes are in good condition, and you don’t have to make major repairs so if you can find one, take advantage and make an offer right away. You have just found a treasure. Even if you have to make some cosmetic repairs, you are still getting a home at a discounted price.
If you are in the market for a luxury property, buying a distressed home makes perfect sense. You get a great home in a hot Moorpark neighborhood for a low price. You cannot afford to pass up such a fabulous bargain. There are many luxury short sales in Simi Valley including in Big Sky, Wood Ranch, and Wildhorse Canyon.
If you are interested in buying a short sale, give me a call at 805.813.7302!
-
California law provides protection for short sale sellers of one to four unit residential real estate when the property sells as a short sale. The lender cannot come after you for the deficiency balance if they approved your short sale. The reason is the law states that by approving the sale, they have deemed to have released you from any liability. The exception applies if there is fraud or the owner commits “waste”, which means that you did something to diminish the value of the property such as removing appliances, stripping kitchens or bathrooms or removing any other items of value from the home. It is recommended that any legal matters regarding short sales should be discussed with a California real estate attorney.
A trained short sale Realtor can assist you with marketing and selling your short sale home. The Realtor understands the process, can explain it to the buyer and will qualify your buyer to make sure they are committed to closing your transaction. While there is no guarantee that your lender will approve the transaction, you can take some measures to increase your changes of a successful short sale. Pricing your home at or below market value, but not too low is important. The lender will order a broker price opinion from several area Realtors so if you have priced the home too low, they will know that and probably won’t accept the offer. This will also upset your buyer, and you will probably lose them because their expectations of purchasing your home for a much lower price will not be met. To avoid this situation, have your Realtor prepare a comparative market analysis and discuss the listing price with them so you price your home properly to begin with.
Marketing your bank short sale home to the right buyer is important because you don’t want to attract a buyer that has a short timeline in which they need to move into your home. The short sale process takes anywhere from three months to six months and sometimes almost a year. You need a buyer who can wait it out. Investors make good buyers for short sales because they are interested in the investment aspect of the home. They are either going to rent it out or rehab the property and then resell it. Investors often pay cash for short sales. Lenders favor cash buyers so this also increases your chances of getting your short sale closed. Plus, investors are usually patient and willing to wait out the process.
Right now more short sale transactions are closing successfully than ever before because lenders have realized the savings to them, buyers like the idea of purchasing discounted property, and sellers benefit from not having to go through a formal California foreclosure process. Short sales are good for neighborhood home values as well because they hold their values better than foreclosed homes, which can sell at a 40% or more discount.
If you are thinking of short selling a home in Simi Valley, give me a call at 805.813.7302 for a free consultation.