Living In Santa Clarita

Tidbits on Santa Clarita

Archive for the category “Short sale”

Housing Market is on fire!

The housing market has been on fire for the last 9 months actually! We have seen houses sold in hours for asking or above asking price. Sometimes for 50K over with all contingencies removed. Why would you do that you ask? Because the prices are going up and you will get equity or appreciation in your new home in months not years right now.

Most areas around the Los Angeles area are going up at least 1-2 % per month.

If you hare interested in buying in an area, contact me today and I will send you the information on how that area is doing right now.

Housing Market is on fire!  – click on the article to the left here and read more…

Michael

Southern California home prices rise in July

Southern California home prices rise in July.

LA Times article

LA Times article

Here is an article from the LA Times that explains the market and why it is heating up.

Since March I have been tracking single family homes in all the areas of Santa Clarita. Every area has gone way down in the amount of listings. My tracking confirms what this article is saying.

Please read the article…

http://www.latimes.com/business/la-fi-inventory-20120610,0,1637144.story

Tenants be where about foreclosures

Michael Feicco – Dilbeck Real Living

As a tenant you need to be on the lookout about the home you are currently renting becoming a foreclosure, short sale or bank owned (REO).

You might not be able to identify this very easily. But if you happen to see letters to the landlord showing up at your home and they are from a bank or financial institution then I would a bit concerned.

You are obligated to pay rent if you have a contract still in place. What your obligations are as a renter really depends on  the contract you have with your landlord.  If a landlord had put into the contract that they have permission to sell the house while you live there then they can do so. Although the sale should not interfere with your lease agreement.

Most landlords will give you 30-60 days to move out. I’m not a lawyer and don’t play one on tv so I  can’t give legal advice on this issue, only help to the best of my knowledge.

I do suggest anyone with questions either contact legal advise and/or go on line to the state of CA  department of consumer affairs and print a copy of the renter landlord rules.

Click here for a direct link to the site!

I do have a copy at my office and refer to that quite often.

I hope this helps…

If you have any questions please feel free to contact me

Michael Feicco – Dilbeck Real Living

Should I walk away from my mortgage?

-By Michael Feicco with Dilbeck Realtors in Santa Clarita, CA

Some people have asked me, “should I walk away from my mortgage?”

My immediate response as a realtor is NO! NO! and NO!  Before I explain why in detail the short answer is simply it’s better for your credit to short sale then to foreclose. You can possibly buy a home in 2 years instead of the 5-7 years.

Now the explanation-

A short sale means the sale of your home is sold for less than what you still owes on the mortgage. If the lender agrees to a short sale, the rest of your debt typically is forgiven. Now that is not a 100% guarantee with every case with every lender so check into that. That is something that happens more times then it doesn’t.

Lenders sometimes agree to the procedure in order to take a small loss and avoid the long and costly process of a foreclosure.

The short sale is a win win for everyone involved.

  • The bank gets the home back into a payment and not sitting on their books and losing money each month.
  • The buyer gets a good price
  • The seller doesn’t get a bankruptcy on their record

And some banks are even giving money to help you move out if you go through with the short sale process.

If you have any questions or would like to discuss your personal options please contact me at:

Michael Feicco @ Dilbeck Realtors, 661-513-3263 or email me at michael.feicco@dilbeck.com

Short sale on my second mortgage?

With the short sale market being so popular right now I get questions from people all day long. I thought it would be a great idea to share those questions and the answers.

The question for this post is, “what happens to my second mortgage in this whole mess of a short sale?”

In order to be able to sell the house, all the liens against the property must be taken care of. Some people believe the second mortgage doesn’t have to be paid at all and that is not true.  The second are most likely to be the most difficult  in getting the short sale approved, and they have the ability to stop the short sale from happening altogether.

In most cases the second mortgage is assuming the largest loss in the short sale. While the first will end up with the biggest chunk of money, the second will usually end up with pennies, thus likely to make the short sale more difficult  The first mortgage is usually willing to pay the second mortgage what they demand in order to release their lien.

For example: Let’s say you have a first mortgage for $150,000 and a second mortgage for $50,000 and the home is now being sold at market value of $100,000. The first mortgage agrees to the short sale for $100,000 and agrees to pay the second $3,000 out of the $100,000 to release their lien. However, the second mortgage disagrees. They will not release their lien for a penny less than $5,000.  As you can see, this presents a shortage. This obstacle must be overcome in order to get to closing.

In an instance like this one, an experienced short sale negotiator will be able to work with your lien holders in order to get them to agree to a mutual payoff amount or to minimize the shortage by as much as possible to make it easier for the parties to absorb. However, it is very possible that the shortage cannot be completely eliminated and the buyer or seller will have to come up with extra funds to satisfy the demands of the second in order to get the closing. Sometimes a promissory note from the seller may suffice.

Liens beyond a second mortgage will follow a similar process.

When entering into a short sale with multiple lien holders, a situation like the one described above should be anticipated. Your best defense as a seller is to have an experienced, successful short sale agent working on your behalf.  This is no time for cousin Vinny who happens to have a real estate license to take a stab at trying out short sales. Choosing the right Realtor here is critical.”

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