This is a great article in DS News talking about how the market downturn has brought prices down for buying opportunities even in the luxury market. Remember the same thing has happened for luxury rentals as well
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This seems like a good service for some of our snowy areas of California. I am also hearing about some services that will come clean out anything that you leave in the home after you leave for free. They go sell it for you for a profit (sorry they get the money not you)
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Here is an article / blog written by a Bankruptcy Attorney about Short Sales: Click here
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"Some real estate agents try to steer clear of them entirely and even specify in their listings that a property is not a short sale..." while Lyons Realty welcomes them locally in Poway and throughout California.
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This post is geared toward all the homeowners out there that have an option arm that is about to recast and need to get out of it. There are an estimated $182 Billion in Option Arms that are scheduled to recast in the next 3 years or 500,000 plus of you out there. 50%+ of those options arms are in California and rest is spread between Arizona, Nevada, Hawaii, and Florida. Roughly $20 Billion~ is held by Bank Of America Home Loans (formerly countrywide), $42Billion~ by Wells Fargo (formerly World Savings), and $40Billion~ with Chase (formerly Washington Mutual WAMU)

If you can’t afford your home, I suggest you short sale it and buy one that you can afford when you can qualify again. Once you see the recast schedule below you will know that you will have plenty of time to get a deal.

Even though there were mortgage brokers that sold the option arm correctly by providing the proper education and disclosures most borrowers abused the product and did not save or invest the difference. If you haven’t been doing this start doing it NOW so you are prepared for your recast and if you can’t, get ahead of the game and do a short sale now.

While 88%~ have not yet recasted most borrowers are enjoying a one (1)% payment & a current interest rate of about 4%~ most commonly (MTA+Margin) or (LIBOR+Margin). Margin is fixed & usually ranges between two-four%. (Review your mortgage statement or note and riders with your loan docs to obtain this information)

The problem is when the option arm recasts and homeowners no longer have the option of the minimum payment.

That would not be that big of a deal if the payment quadruples to 4%, right? 4% is a pretty low interest rate!

One would have to believe that interest rates are going to increase so we can start paying back all the money our govt borrowed and that the LIBOR followed by the MTA will hit at least 4%.

Meaning (4%MTA+3%Margin) =7% (wow thats not an increase that's an explosion)

Here is the ALT-A recasting schedule:

2009-2010 $6 Billion~/mo

2010-2011 $8 Billion~/mo

2011 $33 Billion~ /mo

Get ahead of the curve and act now by short selling your home while you can!

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ATTENTION Southern California Real Estate Buyers/Investors! If you missed the following conference call see below for podcast and replay information:

Please join us for a conference call with two leading industry experts as we discuss one of the key points of controversy regarding the future health of the housing market.  Specifically, the level of REO (i.e., foreclosure) sales have declined roughly 65% from Dec. 2008 levels, despite rising delinquency rates, as well as notices of default and auction notices rising 26% over the same period (these notices occur in the early stage of the foreclosure process). 
Featuring:

Tom Eggleston, Principal, Benham REO Group - Benham REO is the only nationwide network of brokers who list and sell REO/foreclosure properties and portfolios; its clients include Fannie, Freddie, IndyMAC, BofA, and many of the country's leading banks and services of foreclosed properties.
Sean O'Toole, Founder and CEO, ForeclosureRadar.com - Mr. O'Toole's website and set of services focus on the California market and represent, in our view, of one the most comprehensive and granular resources regarding CA foreclosures available on the market today.  ForeclosureRadar.com provides information on properties at every stage of the foreclosure process across most leading CA metro markets, market trends and analysis, and a compendium of articles, thoughtful blogs, and reports, and resources in its Learning Center.
Hosted by Michael Rehaut, CFA

Senior Analyst, Homebuilding & Building Products Equity Research

Thursday, October 15 @ 11:00am ET / 16:00 UK
Replay through 10/22: 866-372-3817 (US); 203-369-0256 (Non-US); Passcode: 6537

Replay available approximately an hour after the call ends.
PODCAST available for download within 24 hrs:

https://mm.jpmorgan.com/servlet/PortalFW?pageName=research_podcast&menuId=154062

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3% of the sales price is the largest “seller credit to buyer” that lenders allow on a Poway short sale.  3% is not guaranteed.  Some lenders will issue a smaller credit.  Bank Of America Home Loans (BOA) formerly Countrywide (CW), currently only allows a seller’s concession if the buyer is using FHA or VA financing (no concession typically allowed with conventional financing).  We will let you know if the seller’s lender is BOA. Please note that if there are repairs and they are being paid for from the seller’s concession it is possible for the lender to allow repairs (because these are the buyer’s funds and he can use them as desired for non-reoccurring closing costs).
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Did you know if YOU the buyer/investor puts an offer on a home that 1. Has an Notice of Default recorded against it, 2. You will not be occupying the property and 3. You the buyer/investor will be "LEASING"  back to the current home owners that are in default, An NODPA ("Notice of Default Purchase Agreement") must be used.

This is very important to remember before writing up the offer your offer with your agent. This is a procedure that has to be followed in order to be in compliance. If we are not representing you please also make sure that the agent who is submitting your offer on a poway short sale uses the right contract.
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If you were a poway homeowner that put false information on your loan application you could potentially be up against a fraud case with the lender that we are trying to negotiate a short sale through. 

Some lenders are now matching IRS 1040 tax returns with the original 1003 loan application. If there is a discrepancy, the lender can pursue the homeowner for fraud. 

It is important to make sure we are asking the right questions. Do not be afraid to ask me on our listing appointment: "I am not sure if I falsified information on my loan application, can we go back and look at it"? or be upfront with me and say: "I lied on my loan application" We want to be able to give you the reality of your situation. We want to be able to help those that can be helped and not waist your time or ours and potentially put you in a much worse situation. 

We believe that more referrals will come out of telling them the truth instead of taking the listing just for the sake of having our sign in your yard. 

Once a month we meet with our sale sale negotiators and real estate attorneys to keep up to date with new laws and legal issues. We see what to avoid when negotiating a short sale. There are many things we need to be aware of to protect our Poway clients. 

We specialize in short sale listings and negotiations in Poway. I am happy to take on that responsibility for you. I can help you get pre-qualified, our team does all back office and negotiations, and I will coach you along through the whole process. I can give you the expertise necessary to help you get your property sold.

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Did you know that if a lender on a Poway home approves a short sale and in the approval letter it states that the "lender will prepare a release of lien" this does not mean that the lender is releasing you of all liability. You want to see in the approval letter "lender will prepare a release of the NOTE." To protect yourself, seek advice from an attorney and a CPA. This should be done when you sign the listing agreement and if the approval letter comes back with the above verbiage you will then be prepared to do a counter offer/rebuttal back to the lender. 

This also protects you against a potential future lawsuit for the deficiency balance, or a big potential tax issue. You never want to be in a position where you say" but I was never told". 

Remember...we give you "just the facts" and suggest you seek proper counsel and then make the right decision. Most importantly, make sure it is documented.

Once a month I meet with our short sale experts industry wide to keep up to date with new laws, and legal issues was are seeing and what to avoid when negotiating a short sale along with new forms and regulations.  There are many things you need to be aware of when going through a short sale to protect ourselves. 




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