I've got to hand it to these agents for nailing this one and driving an excellent point home to the consumer.

Real Estate Reality Check 101:

When selling your property, as much as you have loved and cared for your home, pricing is key and that key won't turn until you've realized it's all about what the current market indicates it's worth. No more, no less.

Spring has sprung and if you're waiting to sell your home it's time to get off the beautiful picket fence you put in place and get your property listed...at market level.

www.CaliforniaCoastPropertyGroup.com      Sheila McPhie Rasak   Go to My Web Site

Excellent recap on what you learned and bravo to your pointing out that each state has it's own guidelines as does the short sale lender. Some systems are still quite antiquated in that I faxed 88 pages yesterday, yes, 88 pages to a 2nd on a short sale whereby this 2nd lien holder will be only offered somewhere in the amount of $2,700 on a $55,000 loan. The first position is over $400k and their system of implementation is uploaded on Equator...as I term "easy breezy" compared to the dinosaur method of the other short sale position.

If you don't want to be a player in the field, then bravo to your shout out to the individual who supplied you with this valuable criteria!

I'm still at a 100% success rate and counting on staying there. If you're a good negotiator and see both sides, you CAN do it, but it can be exhausting. That being said, it's rewarding as all get out when your seller is grateful you were able to take some of the pain they've been experiencing with their lender. They need a qualified short sale negotiator to run this and particularly one that doesn't farm the short sale out to a 3rd party negotiator!

This piece is a must re-blog!

Short sales continued to soar in January, reaching their highest level in California in three years as we enter our 5th year of the mortgage meltdown.

The California Association of Realtors reported in its Pending Homes Sales Index that the number of short sales increased from January last year and also from the previous month.

A short sale is a real estate transaction in which a homeowner sells a property for less than is owed on it and the lender agrees to discount the payoff.

Statewide, short sales accounted for 23.8 percent of all homes in escrow, up from 22.2 percent a year earlier, CAR reported. California Coast Property Group has reported that 98 percent of their business is focused and successful in accomplishing the daunting task of of completing short sale with a 100% success rate on the seller side. Why? Because we're committed to the very best outcome for our clients recovery.

The CAR index also reported:

• Equity sales dropped in January to 49.9 percent. Standard sales hit 52.7 percent in December 2011 and 46.5 percent in January 2011.

• Distressed properties, including short sales and bank-owned homes, increased to 50.1 percent in January, from 47.3 percent in December. They reached 53.5 percent a year earlier.

• Bank-owned REOs increased in January to 25.9 percent, up from 24.6 percent in December. REOs reached 30.8 percent in January 2011.

ATTITUDES SHIFT

A survey of homeowners last month showed that 83 percent of those who bought short sales were satisfied with their purchase, according to online real estate resource HomeGain. Short sale buyers were the most satisfied of any other sale type, the study indicated. Buyers are becoming more and more educated in the area of short sales and a good Realtor will inform them of the process and what to expect.

As short sales continue to flood the market, the survey shows attitudes are changing among home buyers and real estate agents, who once avoided short sales because of the stigma associated with longer escrows and high fallout rates. The banks are in the business to LOAN money and want to rid themselves of delinquencies and WANT the borrower to short sale vs. taking the property back and foreclose.

But the fact is, short sales are the best values around for home buyers. And buyers are coming around. Here’s why:

Better Prices: In the hierarchy of pricing for a neighborhood, new homes and standard equity sales trend to the top of the price range. Short sales and REOs sell near the bottom. Again, the bank needs funds to lend out to new loans and cannot do so until the delinquent mortgages are off the books.

Banks are willing to accept a lower price on a short sale because it’s their favorite method to avoid having to foreclose on the property. And foreclosures mean the bank will lose 8 percent to 12 percent more than from a short sale.

Better Condition: Short sales tend to be owner-occupied homes in better condition than vacant bank-owned properties. They are less likely to be vandalized, squatted on or stripped of appliances and fixtures. Homeowners tend to maintain their homes during the short sale process, as well. California Coast Property Group, headed by Sheila Rasak,  informs their client that it's in their best interest to cooperate with the bank and keep the home in good condition until the close of escrow.

Less Competition: Because many buyers and agent avoid short sales, there is less competition among buyers. Many buyers aren’t willing to wait for a short sale, which can add a couple months to the purchase time line. But for those who are willing to wait, the payoff is handsome.

SHORT SALES DOMINATE

Because short sales have become more socially tolerable and economically acceptable, consumers choose them as the best remedy to their economic woes. With the California Debt Relief Act expiring on 12/31/12, Sheila Rasak makes it clear that the time is right to start the short sale process. CAR tends to believe that this debt relief act will NOT be renewed causing the distressed homeowner added stress with the chance of forgiven debt being a taxable event.

Short sales have a less-severe impact on credit history and allow a consumer to re-enter the housing market sooner than if they had a foreclosure in their past. A short sale also gives a homeowner the sense of control to handle their problems on their own terms. We like to say that the short sale process tends to put the borrower in the driver's seat.

More and more agents have gained experience and are better equipped to help guide their clients through the often-frustrating and sometimes treacherous short-sale process. Though the majority of agents still have little or no actual experience, those who have successfully completed short sales, and more importantly negotiate with the bank on their seller's behalf, can be counted on to help protect homeowners from the liability and tax consequences of such a transaction.

Legislators have created laws to protect homeowners impacted by the current recession from deficiency judgments and hefty tax bills. Again, there is talk of the California law getting ready to expire on 12/31/12 and the possibility of the federal law as well.

Waiting for that loan modification to go through is a tedious process and oftentimes end up either upping the house payment or making the terms of the modification a losing situation for the borrower.

So why wait? Call Sheila Rasak at the California Coast Property Group to find out how you can begin your recovery.

Short Sale Guidelines Are Making a Difference

By Sheila A. Rasak, SFR

            The theory behind short sales seems simple enough: If a homeowner owes more money on a house than the house can sell for, and the homeowner is struggling to pay the mortgage, the lender will allow the house to be sold for less than is owed.

For obvious reasons, lenders are not big fans of short sales and often make it a complicated process. More and more we are finding that lenders are getting on board as they realize the over 80% of the few loan modifications they’ve granted end up in default.

            In April 2010, The Home Affordable Alternatives Program (HAFA) released new guidelines designed to streamline the short-sale process and allow more delinquent homeowners to sell their homes and move on with their lives.

            In its first year, participating servicers initiated 12,266 HAFA agreements and completed 5,447 transactions.  Many loan servicers opted out.

            According to the National Association of Realtors, the share of distressed homes—bank-owned properties and pre-foreclosure short sales— in April 2011 dropped to 37% of total sales volume, down from 40% in March and an average of 39% over the first quarter.

            HAFA complements the Home Affordable Modification Program (HAMP), a loan modification program designed to reduce delinquent and at-risk borrowers’ monthly mortgage payments by providing alternatives for borrowers who don’t qualify for or don’t complete a trial modification.

            “[HAFA short-sale guidelines] are designed to help people who are unable to keep their home under the HAMP loan modification program,” said Jeff Lischer, managing director for regulatory policy for The National Association of Realtors. “Let’s say you can’t keep your property under HAMP, the next step is a short sale, which is better than a foreclosure.”

            It’s estimated that lenders lose about 40% of a property’s value on a foreclosure, whereas the figure is reduced to about 19% on a short sale. Moreover, the short sale is a graceful exit from the ownership, which can often be better for people’s credit scores and tax liability as foreclosure is a taxable event.

            New rules also add incentives for the short-sale process. One incentive helps sellers relocate by providing them with $3,000 for moving expenses. A second incentive is for mortgage servicers, who receive $1,500 from the federal government for each completed short sale. Under new guidelines, homeowners can secure a short sale approval in advance from the bank representing a minimum net amount the bank will accept.

            Lenders participating in the HAFA program maintain the following requirements for homeowners considering short sale: The loan must be less than $729,750, made before Jan. 1, 2009, and the home must be the owner’s primary residence. Also, the homeowner must be delinquent and unable to pay the mortgage, and the homeowner’s mortgage payment must be more than 31% of his or her before-tax income. For some of my clients, missing payments are their last resort as they struggle to salvage what’s left of their credit rating in hopes of returning to the housing market while prices are still low. Many loan servicers prefer that the borrower not skip their payments if they can find a way to pay while going through the short sale process.

            Sheila  can be reached at (805) 628-2898. www.SheilaRasakEstates.com Prudential California Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

If William Shakespeare financed a home today he’d probably ask on the subject of mortgage points: “To pay or not to pay? That is the question.”

            Homebuyers direct the same question to their real estate agents. Here are some perspectives:

            In its simplest definition, a point is an additional loan fee that is paid to the lender in exchange for a lower interest rate. It’s called “buying down,” and it allows you to reduce your rate for the life of the loan.

            Let’s say you secured a mortgage loan for $500,000 without points, at 4.6% on a 30-year mortgage, your payment would be approximately $2,560 a month. If you paid two points ($10,000), the interest rate in this example would go down to 4.1% and the monthly payment would decrease to around $2,415, a savings of $145 a month.

            In this scenario, it would take you about eight years to recoup the money you paid up front, so if you are planning on staying in your home a while, this will save you money in the long-run.

Home buyers must answer some key questions to determine if paying points is a wise decision. Specifically:

 ·         How long will you keep the home?

·         Do you have extra money to pay points?                                      

·         Could that money be better used for something else?

Money managers may suggest that a smarter option is to invest that $10,000 because you could do much better than your $140 savings, but you have to weigh the variables.

            “Paying points depends on your career, your interests and all the things that predict your future,” said financial advisor Thomas Watkins of Total Mortgage Services in Milford, Conn. “Points are paid up front while your savings will be spread out into the future. Therefore, you get more benefit if you own your home longer, or if you don’t refinance for a long time.”

            The rule of thumb when it comes to points is simple: If you plan to stay in the house for less than three years, do not pay points. If you plan to stay in the house for more than five years, pay 1 to 2 points. If you’ll be in the house for three to five years, paying points doesn’t make a significant difference.

            Another important aspect to consider: Since points are interest-payment related, they are fully deductible on your taxes in the year that you close. See your tax advisor for details.

            Mortgage points can add up to valuable savings over the course of your loan, but the future isn’t always predictable. Even if you “plan” on staying in your home for

20 years, changes in your career or family life could alter the plan.  

           Sheila  can be reached at (805) 628-2898. www.SheilaRasakEstates.com Prudential California Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.                                                        

I've got this stunning listing in Camarillo that is a standard sale (that's right, not a foreclosure or a short sale!). It's a beautiful home created by a lovely young couple who are looking for a single story in the same neighborhood. Their motivation for moving is that the wife has bad knees and has to carry her baby daughter up and down one flight of stairs.

I've described the current market conditions to my sellers and they've taken sound advice and thought their situation over and decided to sell their townhome WITH their energy efficient washer & dryer, two refrigerators, the water softener system, AND a 62" flat screen TV.

This beautiful home is decorator sharp and ready for a first time home buyer in Camarillo to move right in!

Help! I need somebody. Help! Not just anybody!

I need to find the number of Bank of New York Mellon that will direct me to who the asset manager is going to assign a property in Camarillo to.

Any clue?

Jeez, nothing like waking at 4:00 am to check the status of your short sale(s) with Equator to see that your offer has been rejected for "Other". Excuse me? I had multiple offers on this property and did extensive bargaining to obtain an offer that is at or slightly above market (the market is still sliding downward) and $10k over the list price to receive a rejection that merely states "Other"? Does anyone out there know the meaning of "other"?

Needless to say, as John Paul Jones once said, "I have not yet begun to fight" and I briefly explained (electronically) my position and uploaded the offer to purchase, again. Time will tell, but I'm over here shaking my head until the next phase. 

Like it or not, the banks are now seller negotiators and need to understand that the process on their part should include a counter when applicable.

The buyer may want the property, but I don't think they'll be willing to wait if they see the other unit that was just listed as a foreclosure for my original listing price!

This Saturday in Oxnard, will be a huge event to bring the children to! Enjoy the celebration and a big thank you to Donne Knudsen, Colbalt Financial for blogging this event!

This Saturday in Oxnard, will be a huge event to bring the children to! Enjoy the celebration and a big thank you to Donne Knudsen, Colbalt Financial for blogging this event!