In addition to purchase money protection laws under California Code of Civil procedure 580 b, a homeowner may also have protection from deficiency creditors through California Code of Civil Procedure 580d.
If you only have one loan and the lender utilizes and non judicial foreclosure - the former owner is protected from a deficiency judgment. (you may need a lawyer to enforce your rights - it may not be automatic).
580 b and 580 d are some of the many reasons why it is a mistake to do a short sale without legal advice.
Showing posts with label san diego short sale. Show all posts
Showing posts with label san diego short sale. Show all posts
Saturday, January 26, 2008
Sunday, November 18, 2007
san diego short sales - deed in lieu of foreclosure
With San Diego real estate sales slowing to lowest levels since in decades, how can a short sale property in San Diego be sold? What if the listed price is already much lower than the competitions? How will your Realtor ever get the short sale approved by a lender?
For now you may not have to sell it. An alternative to foreclosure is a deed in lieu of foreclosure.
And in the last two weeks the lenders have been contacting me and asking if my clients are still interested in offering a deed in lieu of foreclosure.
If you have received a Notice of Default, so not just hope that you may get an offer. Some properties are just not going to sell at a price a lender will accept. Speak to a real estate attorney licensed in California.
Interestingly for many upside down homeowners, a deed in lieu of foreclosure may be a far superior option to a short sale.
purchases have slowed to incredibly low rates. Property are not selling whether thThere is a lack of qualified buyers. This has negativleand this effects not only right side up homeThe lack of qualified buyer has effected
The north san diego county association of Realtors reported very slow sales. Median prices dropped over 5% in both September and October. This lack of sale is also being felt by owners with upside down properties.
Prices are high and very few people with the cash or high enough salaries to qualify for the requisite loans are buying. The lack of qualified
For now you may not have to sell it. An alternative to foreclosure is a deed in lieu of foreclosure.
And in the last two weeks the lenders have been contacting me and asking if my clients are still interested in offering a deed in lieu of foreclosure.
If you have received a Notice of Default, so not just hope that you may get an offer. Some properties are just not going to sell at a price a lender will accept. Speak to a real estate attorney licensed in California.
Interestingly for many upside down homeowners, a deed in lieu of foreclosure may be a far superior option to a short sale.
purchases have slowed to incredibly low rates. Property are not selling whether thThere is a lack of qualified buyers. This has negativleand this effects not only right side up homeThe lack of qualified buyer has effected
The north san diego county association of Realtors reported very slow sales. Median prices dropped over 5% in both September and October. This lack of sale is also being felt by owners with upside down properties.
Prices are high and very few people with the cash or high enough salaries to qualify for the requisite loans are buying. The lack of qualified
Friday, October 19, 2007
San Diego short sales or no sales
Homedex reported the median real estate property in North County San Diego, declined by 5% in september. The number of single family detached homes declined by 39% since same time last year.
In my opinion we have 3 major factors contributing to the lack of sales. Homes were overpriced because of the availability of cheap money inflating the prices.
Now we have the flip side, although interest rates are fine, only people with steady income, 2O% downpayments and 6 mos of deposits can get the good loans. (there are some other loan products coming back on the market, but you get my drift).
So lets say you are considering a $1,000,000 dollar house in Carlsbad or a similar area in San Diego like Poway, Rancho Bernardo, Ecinitas etc. If you can even get a jumbo loan for $800,000 you will still need a very high paying steady salary, (perhaps over 200 thou a year and about a quarter million in cash.
That cash number is no longer pretend equity in your current home, it is real cash. How many people in that situation are going to buy a short sale or foreclosure in Carlsbad right now when they suspect they might have a shot at ocean view property in in Del Mar or La Jolla next year.
The other fact that is contributing to the drop is the way short sales are being marketed in California and florida. Ironically although I hate the concept I have advised my clients and Realtors that have to be out ahead of the pack. Mark the property low and bring in offers. Who cares if the bank rejects the first one, it gives the buyer and seller a chance to feel out the bank. After the first offer is rejected my client will know whether he or she will have to push the bank on TILA or Respa issue or if the bank is going to agree to refrain from collecting on the deficiency an or agree the debt is disputed.
Personally, I believe it will be better for everyone if the MLS would refuse to allow listings which have meaningless prices which are "subject to third party approval". Short sale clients will be much better served if the banks are forced to pick a price.
In my opinion we have 3 major factors contributing to the lack of sales. Homes were overpriced because of the availability of cheap money inflating the prices.
Now we have the flip side, although interest rates are fine, only people with steady income, 2O% downpayments and 6 mos of deposits can get the good loans. (there are some other loan products coming back on the market, but you get my drift).
So lets say you are considering a $1,000,000 dollar house in Carlsbad or a similar area in San Diego like Poway, Rancho Bernardo, Ecinitas etc. If you can even get a jumbo loan for $800,000 you will still need a very high paying steady salary, (perhaps over 200 thou a year and about a quarter million in cash.
That cash number is no longer pretend equity in your current home, it is real cash. How many people in that situation are going to buy a short sale or foreclosure in Carlsbad right now when they suspect they might have a shot at ocean view property in in Del Mar or La Jolla next year.
The other fact that is contributing to the drop is the way short sales are being marketed in California and florida. Ironically although I hate the concept I have advised my clients and Realtors that have to be out ahead of the pack. Mark the property low and bring in offers. Who cares if the bank rejects the first one, it gives the buyer and seller a chance to feel out the bank. After the first offer is rejected my client will know whether he or she will have to push the bank on TILA or Respa issue or if the bank is going to agree to refrain from collecting on the deficiency an or agree the debt is disputed.
Personally, I believe it will be better for everyone if the MLS would refuse to allow listings which have meaningless prices which are "subject to third party approval". Short sale clients will be much better served if the banks are forced to pick a price.
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.
C.A.R. RELEASES NEW SHORT SALE LISTING ADDENDUM
The CALIFORNIA ASSOCIATION OF REALTORS(r) (C.A.R.) released yesterday
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
owed.
- 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. "
C.A.R. RELEASES NEW SHORT SALE LISTING ADDENDUM
The CALIFORNIA ASSOCIATION OF REALTORS(r) (C.A.R.) released yesterday
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
owed.
- 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. "
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