Short Sale, Foreclosure and Strategic Default


Saturday, August 18, 2007

North San Diego County Real Estate

A natural correction -- Psychology, shakeout of speculators slowing regional real estate market, not economy North County Times - North San Diego and Southwest Riverside County News

If you are looking for a reason to buy and hold San Diego real estate this is the article your need to read.

The most interesting point made is that San Diego keeps adding jobs. One third of a million jobs since 1993.

Top 10 Foreclosure Cities - Yahoo! Real Estate

Top 10 Foreclosure Cities - Yahoo! Real Estate

California has 4 cites on the to 10 foreclosure list

The top 10 rates of foreclosure are:

1. Stockton
2. Detroit
3. Las Vegas
4. Riverside/San Bernardino
5. Sacramento
6. Bakersfield
7. Denver
8. Miami
9. Memphis
10. Cleveland

San Diego California Foreclosure Timeline

Foreclosure Timeline in San Diego and the rest of California.

Day 1 - Notice of Default (NOD) gets recorded

Within 10 Days - Notice of Default is mailed

30 Days - Notice of Default is mailed

3 months - Lender can have a sale date set by the Trustee

At least 20 days before sale - Publish, Post and mail notice sale.

25 Days before sale - Notification to IRS if necessary

10 Days after first notification - Send info to beneficiaries

The above is basic non judicial foreclosure timeline for California. Typically a lender waits for a few payments are missed, before commencing the foreclosure process, however there is no guarantee the lender will grant a homeowner extra time.

Friday, August 17, 2007

Short sale addendum California Association of Realtors

The following is the addendendum mentioned in my article the law as applicable to Short Sale in San Diego.

a new standard-form Short Sale Listing Addendum (SSL). Listing agents
may attach this addendum to their listing agreements to advise sellers
of various aspects of short sale transactions. Key provisions of the
Short Sale Listing Addendum include the following:

- Advises that the seller may be required to bring in funds to close
escrow or to obtain lenders' agreement to accept less than what's
- Advises that alternatives to a short sale may be more appropriate,
such as refinancing, bankruptcy, or foreclosure, depending on the
seller's own circumstances.
- Authorizes the listing agent to advertise a property as a short sale.
- Authorizes the listing agent to contact lenders concerning their
approval of a short sale.
- Advises the seller that a short sale has possible tax, credit, and
other legal consequences. "

California Short Sale addendum from the California Association of Realtor

The following is an addendum from the California Association of Realtors. It seems designed to notify homeowners they may actually be hurt by short sales. California has a complex legal framework which is designed to protect homeowners from deficiency judgments. These same laws may operate to protect Californians from tax liablity. Oddly, in many situations it may be better for the homeowner to accept a foreclosure rather than agree to a short sale.

Unfortunately far too many Realtors have been imporperly advising homeowners to short sale their property.

The following California Association of Realtors short sale addendum seems designed to advise homeowners to review other options before agreeing to a short sale. In my opinion, the addendum also puts limits on Realtors activities in this area of pre-foreclosure solutions.

In my opinion Realtors are on notice that they may only adverstise short sales and they may only "seek approval" of the sale from the lender. Conspicuous by their absence are the words, negotiate, represent or other words Realtors have been using to cover up the fact they have been practicing law in short sale transactions.