If you missed the Contra Costa foreclosure seminar recently (East County Homeowner Workshop) in Antioch featuring local politicians and offering information about the process and resources for homeowners, you can view it here now.  (Event sponsored by: Senator Tom Torlakson, Assemblymember Mark DeSaulnier, Contra Costa County Supervisor Federal Glover, and the City of Antioch)

from vodpod.com posted with vodpod

New listings as of week of 4/28/08:

RUBY HILL, Pleasanton
Exclusive gated country club location. 2 year old custom built estate home.  7 bedrooms, 6.5 baths, 8900+/- square feet, exercise room, sauna, office and library.  Infinity edge pool. Private setting, backs to open space. SO MUCH here.  This will impress any buyer in this price range.  Offered at $3,795,000.  NOT ON MLS.  Agents call for co-op information and private client showings.  Buyers must have pre-approval or financial statement prior to showing.

2141 No Donovan Way, San Ramon / 4 bedroom, 2.5 bath $665,000 - PENDING, back up offers welcome -

636 Filbert Ct, San Ramon / 3 bedroom, 2 bath - PENDING, back up offers welcome -

1789 Tice Valley Rd, Walnut Creek / 2 bedroom, 2.5 bath $450,000 - PENDING, back up offers welcome -

4621 Shannondale Drive, Antioch / 4 bedroom, 2.5 bath $350,000 - PENDING, back up offers welcome -

1149 Victory Lane, Concord/ 2 bedroom, 1.5 bath $298,000 - SOLD -

2455 Carpinteria Drive, Antioch / 4 bedroom, 3 bath $298,000 - PENDING, back up offers welcome -

 2716 Oak Road, Walnut Creek / 1 bedroom, 1 bath $210,000 - PENDING, back up offers welcome -

1067 Mohr Lane, Concord / 2 bedroom, 1.5 bath $148,000 - PENDING, back up offers welcome -

1053 Mohr Lane, Concord / 2 bedroom, 1.5 bath $148,000 - PENDING, back up offers welcome -

 Also available, but not short sales or distressed:

293 Foulkstone Way, Vallejo / 4 bedroom, 3 bath $580,000

2412 Geraldine Drive, Pleasant Hill / 3+ bedroom, 2.5 bath $519,000

1336 Viva Lane, Concord / 3 bedroom, 1 bath $389,000 - SOLD -

Plus two mobile homes:

Pacheco / 2 bedroom, 2 bath $95,000

Pacheco / 2 bedroom, 2 bath $79,900

COMING SOON!

Oak Hills, Pittsburg
California Chateau, Danville
Harbor Lights, Pittsburg

. . . on the decision to foreclose or short sale that is.  You must seek counsel of an experienced real estate professional, a qualified tax professional and/or an attorney before making any decisions as to whether to foreclose or attempt a short sale.  Both can have pros, cons, consequences and benefits.  Believe it or not, sometimes foreclosure is the right answer.  Often a short sale is the best solution as it enables you to negotiate up front with the lender for any future recourse.

1. Logistics - there are distinct differences as to how your occupancy of your home will be handled.  In a short sale, you will have to move when the home is sold.  In a foreclosure you may be able to stay months before the sheriff comes knocking on your door during the final steps of an eviction.  Do you know when you’ll have to move?  What is your strategy to secure housing if your credit will be destroyed?
2. Paperwork - in a foreclosure, folks just walk away.  In a short sale, there is a lot of paperwork involved.  Do you know what you need to to assemble in order to ask a lender to accept a short sale?
3. Hardship - did you know that there are many reasons people are in the situations they’re in now with their mortgages?  Does it qualify YOU for a short sale?
4. Scams - did you know that scammers are good at what they do?  Did you know that smart people are signing over the deeds to their homes without realizing it does not relieve them from the obligations they have with the bank?
5. Assets - do you own other assets besides the home you’re in trouble with? Is there a way to protect your other assets (other homes, boats, cars, etc) in either a foreclosure or a short sale?
6. Retirement - most homeowners also have money in their retirement accounts.  Can you still do a short sale with monies in retirement accounts?
7. Privacy - did you know that once a Notice of Default is filed, it is public record? Did you know the Notices of Trustee sales are public notices too?  How can you avoid it getting to that point and maintain privacy in your financial matters?
8. Taxes - did you know that just walking away (foreclosure) may not alleviate your tax liability? Did you know that only some homeowners will feel the effects of the Mortgage Debt Relief Act of 2007?  Can you qualify for Federal tax relief? What about the State?
9. Recourse - did you know that only your purchase money loan(s) is considered a “non-recourse” loan in California? Did you know a “recourse” loan means that the lender can file for a judgement against you if you do not pay your obligation?  Will you be protected against recourse and monetary judgements if you foreclose, or do a short sale?  Are your loans recourse or non-recourse?  Is there a reason to let one of your loans foreclose (i.e. your second) and not the other? (YES there is!)
10. Fraud - did you do a “N-I-N-J-A” loan (No Income, No Job, No Assets), or an all stated income loan with little/no documentation?  Did you fib? At all? Did you bolster your income or assets to get the house? Did you know that is fraud?  And that there is a window of opportunity for the bank to go after you whether you foreclose or short sale if they suspect fraud?  Are you protecting yourself?  What is YOUR best course of action?  

Oh oops, one more:

11.  Bankruptcy - sometimes, for some people, bankruptcy is a solution.  Have you talked to an attorney about the benefits and consequences of filing for Bankruptcy protection?

Realize that for all of these top ten eleven reasons above there may be ten others SPECIFIC to your situation.  NEVER is ignoring the problem the right answer.  The consequences of either a short sale or foreclosure can be significant and can haunt you for years. 

If you need the answers to these, or other questions, call the professional short sale team of Catherine Myers and Terry Osburn of Alain Pinel Realtors in Walnut Creek.  Call 925-683-2125 or 925-381-9944. Or CONTACT US by navigating to our contact page on our site here (see above).

Serving Contra Costa County, and some areas of Alameda and Solano County. 

(Walnut Creek, Danville, San Ramon, Alamo, Lafayette, Orinda, Moraga, Pleasant Hill, Martinez, Concord, Clayton, Bay Point, Pittsburg, Antioch, Oakley, Brentwood, Benicia, Vallejo, Dublin, Pleasanton, Livermore)

 

Never is it more important to find a real estate agent who has experience!  If you are contemplating a short sale, you must find an agent with experience in short sales.  The sad truth is that when the markets are like this, it equals opportunity for many.  And I’m not just talking about the agents who step into the game with the true mission of helping homeowners.  I’m talking about the huge increase in real estate training companies looking to train agents to make big bucks on short sales.  Now, of course, like anything, there are good and there are bad… some training and seminars are helpful, informative and do give a value added benefit to the agents out there. But there are other training classes, seminars and online webinars that likely were developed by trainers who NEVER stepped foot into a short sale transaction.  There are now short sale certifications. You can get to be some sort of short sale certified agent by going to a seminar, or watching a training class on your laptop.  Be wary.  Again, some turn out great agents with more knowledge to help their clients, others are putting out wrong information which will ultimately hurt consumers.  Here’s an example.  On a nationally distributed agent newsletter was a Top 10 of Short Sale questions.  One question asked about taxes, and whether one would owe income taxes or receive a 1099 if they do a short sale.  The answer was shocking (to me). 

“It WAS true, now it’s not. Consult your Tax Attorney or Qualified CPA.  Very recently the tax law was modified and now most people who do a short sale will have no taxes due.”

Folks it IS true.  Think about it.  Always see your tax advisor.  Now is not the time to listen to your friend or your neighbor and no agent should ever be the one to tell you that you will have no taxes due-as you might. The new legislation HR 3648, The Mortgage Debt Relief Act of 2007 will actually help very few. It will help those with purchase money loans (the loan you used to buy the house, not a refinanced loan, except under some circumstances), it will NOT help if you have a second (unless it can be deemed purchase money) or a third loan, or equity line (unless used for capital improvements) on your property - you may still get 1099′d on those.  Its complicated. It will not help if this is not your primary residence.  So how many have refinanced? How many have more than one loan?   My guess then, is the opposite of what that real estate trainer said…. I’d guess that MOST people may actually be looking at receiving a 1099 and owing taxes.

Due to the sheer numbers of companies out of business, and the way different banks show these losses on their books, you may not get a 1099, but still, it may not relieve you of tax liability. You have to see your tax advisor promptly.  Some people may be able to claim insolvency and avoid taxes, but only a qualified CPA or a tax attorney can tell you this for sure.  If you need a referral to a tax attorney in Alameda or Contra Costa to help you with your short sale or foreclosure tax questions, just ask.

So just heed my warning.  Just because an agent has some fancy title or training acronym next to their name, you must still check their experience with the short sale process. You do NOT want to be your agents first real short sale transaction.  I mean agents all have to start somewhere, but many agents will start by partnering on their first couple of transactions with an agent who does know the short sale process.   Ask to talk to current or previous clients with successful short sale outcomes.  Ask to talk to their title company.  We work daily with our title company/escrow rep - she’s priceless in our transaction process.  She starts working for us from the minute we get the listing.  There are ways you can check experience, and you may regret it if you don’t.

Contact us for short sale information, resources and to market your home if a short sale is the answer for you.  Always seek counsel from an attorney, CPA and/or tax advisor.  We can not advise you in these matters, but we can point you in the right direction.

Catherine Myers 925-683-2125

Terry Osburn 925-381-9944

Serving Contra Costa County.  Pre-foreclosure, short sale, foreclosure avoidance and referrals to those who can help with a loan modification. 

I attended a panel discussion at the local Pleasant Hill campus of JFK University last weekend.  They hosted some very interesting speakers around the topic of the Subprime Meltdown and I’ll probably feature a couple of more of these speakers in future blog posts.  But one speaker I wanted to focus on today was Ken McCormick of the Contra Costa District Attorney’s office.   Mr. McCormick is the lead attorney at the DA’s office prosecuting cases of real estate fraud.  He discussed the various scams he’s seeing right here in our county, and I felt it important to pass along the information he shared so that you, or someone you know, may be spared! 

First, I wanted to share my general “overall” opinion.  It is that if something sounds too good to be true, it probably is!  It’s an old adage that holds oh so true when you and millions of others are in financial distress.  You may become the target of many scam artists (aka CRIMINALS).  This is the market for opportunists of every description, so be careful and don’t be a victim.  Seek counsel at the first hint of trouble.  Better yet, don’t get into trouble by noting the following:

1. DO NOT fall prey to “foreclosure consultants.” NEVER pay upfront fees, or any fees, for someone else to do something you can do yourself, i.e. contacting your lender to negotiate a resolution, a delay or a short sale.  You can seek the counsel of a FREE HUD/housing counselor.  An EXPERIENCED real estate agent can do this for you for FREE.  You can do this yourself.  Do not pay anything out of pocket.
2. Beware of anyone offering to delay the foreclosure of your home for transferring a portion of your house to their company.  Do not transfer ANY part of your property to anyone.
3. You can not eliminate your mortgage, so run away from anyone who tells you that they can “eliminate your mortgage.”  These schemes are complex and not only can you lose your home and all rights to other remediation, but you may be a party to criminal acts.  Don’t do it.
4. Hang up or shut the door if anyone approaches you with an idea that all you do is transfer the property to them for a set period of time (i.e. 1 year) and you can stay in your home as a tenant – often for FREE.  Then, they promise, you fix your credit, bolster your financials, then you get your property back and all’s well.  Did that sound too good to be true?  IT IS. Don’t do it, and report these types of people to the District Attorney’s office.
5. Warning bells should go off if anyone approaches you to either buy your equity or to pay your past due amount and save the house from foreclosure. They say, sell it to me and you’re off the hook. Don’t do it.  Many homes now do not have any equity in them, but regardless, there are those offering to just pay your past due balances in exchange for the title of your house. Beware of anyone offering to “buy you out” of foreclosure.

So, who can help you during this time?  See below for links to HUD (Housing and Urban Development, a governmental agency) and links to various local homeownership counseling agencies. These non-profit groups can help you for free.  Do not pay anyone.  A real estate agent EXPERIENCED in foreclosure avoidance can help you, for free.  Operative word here is experienced.  Too many real estate agents (in my opinion) are helping people with short sales as the best, or only, solution to a foreclosure.  Now, in some cases, short sales can work well – but you MUST know the consequences (tax and financial) before proceeding and all too often homeowners are not being advised of the potential pitfalls that can haunt them for years to come. 

Here’s some information and who you can call for help:

www.fha.gov/foreclosure -good information about foreclosure avoidance.

www.foreclosurehelpandhope.org/avoid_foreclosure.html

HUD foreclosure information: www.hud.gov/foreclosure/index.cfm

Homeownership Preservation Foundation: www.995hope.org  These folks have put together a not for profit network of HUD certified housing counseling agencies.  From their hotline you can be referred to a local agency who can help.

http://www.nw.org/network/foreclosure/default.asp NeighborWorks America Foreclosure resources

Find other local HUD certified housing counseling agencies: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm

Remember, if you decide that a short sale is the best solution, or if you want local referrals to professionals who can help, contact the Contra Costa Foreclosure Avoidance Team.  Catherine Myers and Terry Osburn are experienced and know the process.   They serve Contra Costa residents in Walnut Creek, Concord, Clayton, Pleasant Hill, Danville, Alamo, San Ramon, Lafayette, Orinda, Moraga, Martinez, Bay Point, Pittsburg, Oakley, Brentwood and Antioch.

Catherine’s website:  www.DiabloValley.net

Terry’s website: www.PawsitiveRealEstate.com

Contact: 925-683-2125 or 925-381-9944

Wow, its tough out there for a ‘regular’ seller.  What is a regular seller?  Its one that isn’t a short sale, isn’t a REO and isn’t in distress.  They just need, or want, to move now.  Most areas have some serious competition from distressed sellers and the prices are getting lower and lower on those.  I know that when we price our short sales, if priced “right” we get offers, and often multiple offers.   Sometimes it almost seems like an invisible line in the sand.  We can’t see it.. but what will make a buyer react?  We had a home priced at 399k.  Nothing happened.  Few showings, no offers, nothing.  We dropped to 350k and got 3 offers in a week.   Same thing with another.  Priced at 499k, nothing happening until we dropped the price to 450k and got 2 offers in a week.   Larger price drops are becoming the norm.  Dropping your price just 1% or even 5% is hardly making buyers take notice now.  Here’s one reason why:  The median price for bank owned homes is 24% LESS than the median home sales price. 

Take a look at this graph from Trulia:  http://images.trulia.com/resources/Trulia_Trends_Report-February_2008.pdf

Says alot doesn’t it?  Its a vicious cycle.  Why would you pay upwards of 25% more on a house when one down the street is so much cheaper?  For most, you wouldn’t.  So it almost makes the regular listings “unsaleable.”  If you don’t have to sell now, perhaps rethink it.   There are so many agents listing short sales now that simply don’t know what it takes to get a short sale approved with the bank(s), that makes those almost unsaleable.  And agents are getting gun-shy at even showing short sale listings.  But in the hands of the right listing agent, and the right negotiation team a short sale can be an excellent opportunity for the right (patient) buyer.    If you have to sell a home that you owe more than the home is worth in today’s market, call us.  If you are upside down, call us for your options.

We are foreclosure avoidance specialists.  We can help you with a short sale, or refer you to someone who can help with a loan modification or information about deeds in lieu of foreclosure. 

Catherine Myers
Contra Costa Real Estate and Walnut Creek, Concord Homes for Sale
925-683-2125

Terry Osburn
Pawsitive Real Estate and Homes for Sale in Contra Costa
925-381-9944

Homes for sale!   What an array we have. Contact us if you’re looking for a new home and would like to explore your options with purchasing a short sale or even an REO/bank owned, distressed property.  Some excellent first time buyer or investment opportunities here!  Call us or email for photos, appointments to view and for more information about these listings.

Pre-Foreclosure Properties

2141 No Donovan Way, San Ramon / 4 bedroom, 2.5 bath $665,000

636 Filbert Ct, San Ramon / 3 bedroom, 2 bath COMING SOON

1789 Tice Valley Rd, Walnut Creek / 2 bedroom, 2.5 bath $450,000

4621 Shannondale Drive, Antioch / 4 bedroom, 2.5 bath $350,000

1149 Victory Lane, Concord/ 2 bedroom, 1.5 bath $298,000

2455 Carpinteria Drive, Antioch / 4 bedroom, 3 bath $298,000

 2716 Oak Road, Walnut Creek / 1 bedroom, 1 bath $210,000

1067 Mohr Lane, Concord / 2 bedroom, 1.5 bath $148,000

1053 Mohr Lane, Concord / 2 bedroom, 1.5 bath $148,000

 Also available, but not short sales or distressed:

293 Foulkstone Way, Vallejo / 4 bedroom, 3 bath $580,000

2412 Geraldine Drive, Pleasant Hill / 3+ bedroom, 2.5 bath $550,000

3678 Joan Avenue, Concord / 3 bedroom, 2.5 bath $439,900

1336 Viva Lane, Concord / 3 bedroom, 1 bath $389,000

Plus two mobile homes:

Pacheco / 2 bedroom, 2 bath $95,000

Pacheco / 2 bedroom, 2 bath $79,900

Contact Catherine Myers, REALTOR or Terry Osburn, BROKER for information about these listings or if you’re interested in buying a pre-foreclosure or bank owned home.

http://contracostashortsales.wordpress.com

Your local short sale, distressed property and pre-foreclosure resource on the web.  Serving Contra Costa County; Walnut Creek, Concord, San Ramon, Antioch, Brentwood, Clayton, Pleasant Hill, Martinez, Pacheco

Announcing - our new affiliation with Suburban Renewal.  Suburban Renewal can help us, help you, even better now.  In fact, they can even help you when selling is not the best option. They can help homeowners with negotiating a loan modification too. 

As for our work with Suburban Renewal, they help us expedite the short sale process for you and will help minimize the negative impact a short sale can have.  From their website:

Remember:  In a short sale you might be open to a deficiency judgment or a 1099 for the difference owed.  Both these items are fully negotiable. We aggressively negotiate on your behalf for 100% Forgiveness with No restitution and No 1099!

Check out their website, they have common homeowner questions and answers.  Be sure to read up about why using a short sale expert is to your advantage, read about their strategies, suggestions and look for their checklist of important documents needed in a successful short sale.  (loan modification information is there too)

So check out Suburban Renewal.  We work as your marketing specialists getting your home sold, they work with the banks to negotiate your successful short sale - I’d say its the best of both worlds for you.

___________________

Catherine Myers, Certified Residential Specialist
Contra Costa Real Estate and Pre-Foreclosure assistance
925-683-2125

Terry Osburn, Broker Associate
Pawsitive Real Estate in Contra Costa
925-381-9944

Alain Pinel Realtors
Walnut Creek, CA

Serving Concord, Clayton, Pleasant Hill, Martinez, Alamo, Danville, Lafayette, Antioch, Brentwood and surrounding areas.

Helping buyers search for REO and bank owned home for sales.  Want to buy a foreclosure? You’ve come to the right place in Contra Costa!  Search homes for sale here.

And check out:

http://contracostaforeclosures.wordpress.com

http://pawsitiverealestate.wordpress.com

Yes, there are a few alternatives.  Loan modifications could be helpful to a great many, but reports from several of our clients say its not as easy as that.  Many banks are simply saying “sorry.”   In fact, some of our clients could actually now afford their homes they’re in  . . . say they bought for 650,000, and now their adjustable loan continues to adjust right out of their financial reach, as an example.  Well, NOW that same house is worth 350,000 and with the conforming loan rates where they are now, they could actually afford to buy their home back, well, that is if they weren’t already in it.  What a situation. 

Well, there may be another option for a few homeowners.  If you owe close to what you can sell your house for (admittedly rare in many areas now), think about a lease option / equity share arrangement. 

What if someone took over your payments?  They could get the tax advantages of homeownership, you would get out from under your payments without a credit damaging short sale or foreclosure and then in 3-5 years, the house sells, and you split whatever equity has accumulated (assuming the market comes back in 3-5 years).   That is a bit of a simplified view, but that’s the gist. 

Yes, taking over someone’s payments is more expensive than a traditional lease.  But you are getting tax benefits (check with your accountant) and you are earning equity - not something you can do in a traditional lease.  And since most 80/20 and 100% loan programs are gone or very restrictive, its a way to get into homeownership without a down payment, and without the rigors of bank qualifying.  Yes you’d still have to qualify as a “renter” but it is often more forgiving than a bank in some situations.

Here’s one equity share option we have available.  This is a home that could sell around $725,000. Located in the newer Windemere neighborhood of San Ramon.  You could take over these payments for about the same amount it would cost you to go out and get 100% financing on this property (if that were still available that is).  Check it out:  Equity Share / Lease Option in San Ramon

So, its an idea.. something that could work for some.  Buyers with challenges, it could be an opportunity. 

REMEMBER a short sale is not the answer for all.  And in some cases, can yield some very damaging results (recourse, taxes, judgements, bad credit, etc) .  Foreclosure may also yield some big surprises later - do you have more than one loan? Remember, only one loan is typically foreclosed upon…  if your first foreclosed… do you know your 2nd can still go after you? Always work with professionals in negotiating a short sale.  An experienced short sale specialist may be able to negotiate out some of these unfortunate surprises. Please ALWAYS check with an attorney and/or an accountant as a short sale is not for everyone, and a foreclosure may not be the end of your problems. 

Home buyers: Looking to buy now? Looking to jump into buying a foreclosure or short sale? Contact Catherine Myers 925-683-2125 or Terry Osburn 925-381-9944 to see one of these homes or to explore other short sale, REO or pre-foreclosure opportunity homes. We can help you buy and have the experience you need with the banks.

Or use someone who does!

I just got off the phone with a very nice person who was a little confused. As the story goes, she and her husband decided had saved up a bit of money and wanted to capitalize on the current market conditions. It’s a great time if you are looking for bargains.

They attended a Trustee Sale (foreclosure auction). Cashiers checks in hand, you can imagine their surprise when their bid actually won the 3 bedroom, 2 bath house!

It was close to their home, they knew the area, but hadn’t actually viewed the property. The best part? The home was reported to be worth in the high $400,000 range. Their bid? ONLY $40,000! They had struck gold on their first auction! It was just like the ads on TV!

The sale was recorded. The papers signed. A $480,000 home, bought sight unseen, for only $40,000. How bad could it be?

As you might expect the house was a little run down. A couple of months of hard work later they had the trash hauled away, the rooms painted, the landscaping done. It was just about time to find a renter.

That’s when they found that little yellow card tacked on their front door. It was a Notice of Default, the first step in a California foreclosure procedure.

But they paid cash. They didn’t have a loan. How could anyone foreclose on them?

As it turns out, what they bid on in the auction was the Second Trust Deed. The house was abandoned, heading to foreclosure. It had a first and a second mortgage. They paid $40,000 for the second - but the first was still in place and tied to the property.

Now the owner of the first mortgage was foreclosing on the property to recover the unpaid balance of the note. Guess what? They have every right to do it! If the property does foreclose it’ll be sold once again on the county courthouse steps. These people will probably lose their $40,000 as well as every dime they put into the rehab.

The State of California has a well defined hierarchy as to which lien takes priority over other liens. Here is a quick run down: California Lien - ing

As you can guess, had they used the services of a professional, the outcome would have been very different. I am reminded of a long favorite quote by Brian Brady, “If you thought dealing with a professional was expensive, wait until you find out how much dealing with an amateur costs.”

I think they just did.

Always use a Professional.