I have a client who is dire need of a Short Sale to get out from under her mortgages.

She's upside down primarily due to the reasons I explained in my post, "You Can't Fix LTV".

In simplest terms, her homes value has dropped dramatically because the homes around her have drastically dropped in value.

Yes, she has no income. Yes, she has no chance to loan modify. Yes, she bought at the market high with the wrong loans and little to nothing down. But as I started looking at the "other" reasons why the neighborhood is in such decline and found a horrid tale that can only be described as Ugly, Ugly, Ugly!

How Ugly is UGLY?

There are currently 82 REOs in the neighborhood.

There are 139 NODs (soon to be REOs)

How about the record high HOMICIDES last year?

What about the other crimes?

How does 631 separate incidents in the last 90 days sound?

My package includes over 300 recent news stories about this neighborhood.

I don't know about you, but if I was a Loss Mitigation Specialist and had an offer presented that would keep my company from owning this potential soon to be REO, I'd take pretty much anything that came my way.

We shall see. The Listing Agent has a couple of real offers and I'm putting the Short Sale Package together today.

Labels: Negotiation, Notice of Default, Short Sale, Short Sale Negotiation

While most Agents dislike waiting endlessly on hold,
While most Agents refuse to list or show short sales,
While most Agents don't know where to start in finding a Loss Mitigation Department,
While most Agents don't know the three things a Lender doesn't want to hear,
While most deals fail because they were inadequately prepared,
While most every deal fails to protect the homeowner,
While most deals fail to negotiate for full commission,
While most Agents start their work day 3 to 4 hours later than we do...

We're Suburban Renewal.

We're different, we love Short Sales!

Labels: Short Sale Negotiation

Their admiration for what we do and how we do it - that is.

Labels: Short Sale Negotiation

Notice of Defaults

Last week (week ending Feb 20th) we saw the following NOD filings.

For the State of California: 8,178

By County

Alameda: 323
Contra Costa: 487
Sacramento: 678
Solano: 180

By City

Antioch: 89
Modesto: 163
Oakland: 107
Sacramento: 400
Stockton: 216
Vallejo: 70

Labels: Notice of Default

I was just asked this question and had to look it up.
I figured it was worthy of a post.

In California, if the property is in Notice of Default, and the purchaser does not occupy the property (Investor), the transaction becomes what is called an Equity Purchase.

That's important because there are specific rules that need to be applied and adhered to.

Here's the actual question:

"I plan on buying a home that is in foreclosure and flip it, But I just heard the seller (homeowner) has a 2 year right of rescission. What does that mean? Do I have to hold the property for two years before I can sell?"

As I mentioned, I had to look this up to make sure I had the correct information.
Here's what I found.

Once the sale has closed, the investors title is subject to the seller in foreclosure's Two Year Right of Rescission due to any unconscionable advantage the Investor might have imposed on the transaction.

So does that mean the homeowner can get their property back?

Not quite. Assuming the investor has already sold the property to an unknowing buyer, the remedy would be a recovery of the money the original homeowner was out.

That figure would be determined by the value of the property at the time of resale, less the old loan amounts, less any funds received (good faith money) in the original transaction from the investor.

Interestingly, if it was a sale rent back, where the homeowner never left but instead started to pay the new owner rent, they will not be able to recover any of the rent paid - NONE.

They will however get paid 10% interest on the equity they lost from the start of the violation.

Where did I find this information?
California Civil Code 1695.10 and 1695.14

Buying a foreclosure and planning on living in it?
These rules don't apply to you.

Remember, always work with a professional. Always!

Labels: buying a short sale, Notice of Default

Labels: Short Sale Bargains

Last week (week ending Feb 5th) we saw the following NOD filings.

For the State of California: 6,736

By County

Alameda: 460
Contra Costa: 339
Orange: 334
Sacramento: 512
San Joaquin: 212
Santa Clara: 174
Sonoma: 273
Stanislaus: 276

By City

Antioch: 85
Bakersfield: 143
Elk Grove: 63
Fontana: 107
Hayward: 99
Modesto: 149
Oakland: 171
Sacramento: 326
Stockton: 110
Tracy: 50
Vallejo: 63

The highest: 6.3 Million for a 3 bedroom / 2 bath in Winchester, CA

The lowest: a 3 bedroom / 2 bath in Anaheim that is behind on their $2,333 loan!

Labels: Notice of Default

Why every professional Real Estate Agent should use Suburban Renewal's negotiation services on every short sale listing.

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10. Your Job is Real Estate
You know property and the neighborhood better than any one else. We know Lenders. We talk their talk. We know what to say and we know what not to say. Concentrate on what you do best and we'll do what we do best!

Labels: Short Sale

Just some of these bargains we're working on...

Labels: Short Sale Bargains