Oct
12
Short Sale Verses Foreclosure
Posted by royakianmahd under Uncategorized
The foreclosure landscape, as described below, is about to radically change.
Bank of America last week halted foreclosure sales in all 50 states as part of a widening investigation into flaws in the process. The other major lenders are likely to follow suit.
On Sept. 17, GMAC Mortgage temporarily halted foreclosure proceedings on homeowners in 23 states including Florida, New York, Illinois and Ohio. The company has said employees preparing foreclosure filings submitted signed court affidavits that contained information they had not personally verified.
In what™s been dubbed the œrobo-signing scandal, JP Morgan Chase and Co. has joined GMAC Mortgage in temporarily halting foreclosure proceedings in judicial foreclosure states, following allegations that workers the companies employed failed to follow the proper legal procedures in filing paperwork demonstrating that the lenders had the right to foreclose.
The BofA announcement came a week after saying it was freezing home foreclosures in 23 states where foreclosures must be approved by the courts. The latest move by Bank of America extends a review of foreclosure documents to all states, regardless of the required legal processes.
The bank said the foreclosure process on delinquent borrowers will continue, but it will not proceed to judgment or a foreclosure sale.
So for you, a foreclosure sale is, at least for the time being, not an option.
Whether you should do a short sale or let the home go to foreclosure depends on several factors. While for some homeowners, it is easier to throw up your hands and let the bank take your home, that might not be the wisest thing to do.
Here are a few benefits for doing a short sale that may not have occurred to you:
* You are in control of the sale, not the bank.
* You may sleep better at night knowing who is buying your home.
* You will spare yourself the social stigma of the "F" word, foreclosure.
* Contrary to popular belief, you can be current on your payments and still effect a short sale.
* Your home sale will be handled like any other home sale.
If your payments have never fallen behind 30 days late and the lender does not require that you pay back the loan, Fannie Mae guidelines may allow you to buy another home immediately. Finding a lender who will fund that kind of loan is very difficult. If you are current on your mortgage, you can qualify for an FHA loan immediately as well, but lender requirements can be weird such as you have to move more than 600 miles away.
If your payments are in arrears yet a short sale is granted by your lender, you may qualify to buy another home with a Fannie-Mae backed mortgage within two years, regardless of whether the home is your primary residence. The wait for FHA is 3 years.
A short sale may be considered to be a derogatory mark on your credit even though credit bureaus do not show the word "short sale" on your credit report. It may say "paid in full for less than agreed" or "settled for less," among other categories. Some clients have reported negative FICO score drops from 50 points to 130 points.
Major point drops are typically due to being in default, meaning you have fallen behind on your payments.
All lenders report short sales differently and some do not report them to the credit bureaus at all. Negative credit, however, stays on your report for 7 years.
Starting January 1, 2011, a seller™s first trust deed lender cannot obtain a deficiency judgment against the seller after a short sale. Providing written consent to a short sale shall obligate the first trust deed lender to accept the sales proceeds as full payment and discharge of the remaining amount owed on the loan. This law applies to first trust deeds secured by one-to-four residential units, but does not limit the lender from seeking damages for fraud or waste by the borrower. Senate Bill 931. Governor Schwarzenegger vetoed Senate Bill 1178, our sponsored bill, which would have extended California™s anti-deficiency protection to refinance loans.
Hope this helps; I'm always available for followup questions.
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Sep
21
The Department of Real Estate recently posted an update on its website pertaining to the increasing practice of requesting/demanding that buyers pay short sale negotiator fees.
http://www.dre.ca.gov/pdf_docs/ca/ConsumerAlert_ShortSalesUpdate.pdf
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Aug
27
Hikes in Santa Monica
Posted by royakianmahd under Uncategorized
We have an advantage in Santa Monica. We have our city, but we live so close to nature, too. Of course, there’s the beach and the ocean, but many people don’t know about the opportunities for parks and hiking that are so close by. Will Rogers State Park is one of the easiest to get to – you can drive right in! There are easy hikes and some steeper adventures – just ask the rangers on duty which might be best for you. You can do a round-trip hike that’s about six miles.There’s a large field that is good for a picnic, and if you’re lucky (usually on a Sunday) there might be a game of polo going on, down on the lower field. Some info on Will Rogers State Park here.
If you’d like to see a waterfall and can hike just a mile, just go north on the Pacific Coast Highway fifteen minutes or so to Escondido Canyon and Falls. The trail leading to the falls crosses a creek several times, so be ready to get your feet wet if we’re hiking in the (short) rainy season. Some more details here.
Hiking with kids? If you want simplicity, try for a short hike in Will Rogers Park or even a walk along Palisades Park. It’s pretty urban for a hike, but the people watching is great. If you’re feeling more ambitious, here’s a detailed guide to bringing kids along so they can experience a little nature. Have fun!
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Aug
27
Is Now a Good Time to Sell?
Posted by royakianmahd under Uncategorized
Jane Beaumont Hall, an attorney specializing in estate law, recently posed an interesting question in a PDF she circulated. “Why sell now?” she asked. Here’s one reason to sell, according to Jane and some other experts: The capital gains tax could be going up in 2011.
What is the capital gains tax? When you sell a property you may have a gain in value or a loss. You should seek the advice of a tax professional to determine final numbers, but basically you’d need to know what you paid for the property, any improvements you made to the property over time that added value, and then your selling price. If you come out ahead, with a gain, then you are subject to capital gains tax.
In 2010 we have enjoyed capital gains taxes at 15% at the federal level and around 11% on the state level if you live in California. But next year, unless Congress changes or delays the law, capital gains at the federal level could be as high as 20% which some potential surcharges on top of that. Some are predicting capital gains taxes, federal and state combined, as high as 36%. Wow. If you’re on the fence about selling, this might be the year to do it, before the capital gains tax potentially jumps. You’ll want to talk to an estate planning advisor and your tax professional before making the final call.
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Aug
27
How to Choose a Mortgage Broker
Posted by royakianmahd under Uncategorized
Getting a mortgage is a bit of a process these days, so bringing in a mortgage broker to help is a good idea for many homebuyers. The broker can take your application materials and match them up with the best lender. Instead of going to just one bank you’ll have a few choices, and probably a better chance to find the best rate and the best terms to suit you.
But how to chose the best broker? If you go to a bank and speak with a loan officer, you’ll hear about the loan products offered by that institution. But if you go to a mortgage broker, they work with dozens of even hundreds of lenders as freelance agents. They are paid a fee to do this, either a flat fee or a percentage of the mortgage amount, usually 1 percent. They collect your application information and submit it to a variety of lenders until you find the best fit.
It’s a good idea to call state and local boards of realtors for lists of mortgage brokers in the area you’re interested in moving into. If you already have a realtor, he or she probably works with mortgage brokers already and can make some recommendations.
A few things to remember: Mortgage brokers do not make or approve loans. They are only “the middle man” – working to bring you together with a lender. The final call about whether you get the loan or not comes from the underwriter at the lending institution who is evaluating your application. Your mortgage broker should have access to a good appraiser who can value the property accurately and quickly.
You can try to negotiate to get a better rate or better terms. A mortgage broker also often has access to better rates than you might find, because he or she is offered “wholesale” rates because of the number of loans they originate.
The FDIC (Federal Deposit Insurance Corporation) offers you some advice about shopping for the best mortgage, including definitions of rates, points and fees. This link has a nice worksheet that sets everything out in an orderly way.
A mortgage broker can save you a lot of time and help you get the best deal.
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Aug
27
A little more relocation advice
Posted by royakianmahd under Uncategorized
Whether it’s across the street or across the country, any move can seem like a “big move.” A few days ago I wrote something about how to evaluate your decision to relocate. If you’ve decided to make the move, this short article covers some next steps. I’ve included, working from About.com and other sources, a rough timeline to think about to help your move go smoothly.
4-6 weeks before moving, start packing. Contact people who work for you on a regular basis and let them know you’re on the move. You can be nice and leave their business cards for the new renters or owners of your place. Here’s a good tip: pack heavy items in small boxes and lighter items in large boxes.
2 weeks before moving, call utility companies. Arrange for meter readings on the day of your closing so that all services after that date are the responsibility of the new owner. If the new owner doesn’t establish accounts, be sure the utilities are turned off. Cancel newspaper deliveries, too.
You’ll want to get utilities started up at your new place as soon as possible. Also, don’t forget to file a change of address with the post office. Other little things people often forget: remember to return library books and DVDs, and get your prescriptions transferred to your new location. If you can, open a bank account at your new location, or, if you’re staying in the area, order checks with your new address.
One week before your move is truly countdown time. You’ll want to confirm that your closing is still on track and double check with your movers. Cleaning up every room is important, so wait to pack your vacuum until the very last day. Cancel your existing homeowner’s or renter’s insurance after the closing is complete. It’s always smart to pack an “essentials” box – that includes bedding, bathroom items, and a few kitchen items. This can be the first box you unpack in your new home.
On moving day walk through every room of your old place to find any stray items, taking time to open all the closets and cabinets. A good tip: After you’ve thoroughly cleaned and dried the inside of your refrigerator, put a handful of fresh coffee, baking soda or charcoal in a sock or nylon stocking and place it inside to keep the interior smelling fresh. It’s important that you the movers as they pack and unpack. Note any damages on the mover’s bill of lading and be sure to ask the supervising person to sign off on the notation.
One final tip: Unpack your “essentials” box first, before tackling the big move in job. It’s been a long day! Oh, and a big bonus about moving: now’s your chance to de-clutter every room in your current house or apartment. You can even organize your closets.
Check out my Facebook page. If you want to see my latest listings, find my website by clicking here.
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Aug
25
How to Make Sense of California Property Tax Law
Posted by royakianmahd under Uncategorized
Making sense of property taxes in California is a tall order for a short post like this. I’m going to offer some basic resources to get you started.
Ever since Proposition 13 was passed on June 6, 1978, the State of California has levied a property tax equal to 1% of the “full cash value” of the property. This makes figuring out the amount of tax a homeowner needs to pay pretty easy, but it also means that the taxes due on a property can change, depending upon the value of the property. The LA County Assessor’s website has details and they are good about responding to emails with questions. Remarkably, if you call them, they will not place you on hold for hours but get to you pretty quickly.A website called California Property Tax Resources has a good list of links if you have questions about property tax law, the rules, and easy access to forms. You get to deduct the amount you pay in property taxes on your income tax return, but talk to your accountant about that. If you have owned a property in California for a while, it’s worth it to see if it can be reassessed, because if it comes in at a lower value than what’s on record, you may owe less tax.
Check out my Facebook page. If you want to see my latest listings, find my website by clicking here.
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Aug
25
Thinking of Relocating?
Posted by royakianmahd under Uncategorized
Trying to decide whether you should make a big move? I recently came across some good tips about the best ways to evaluate your relocation decision.
Monster.com has published a list of a dozen reasons about “why you should move.” They include thinking about your salary level, the stage you are in your career, and what your savings look like. The website Ehow.com has some basic, but commonsense advice about relocation, including getting a new job before you relocate (duh!), how to work things out with your old boss if you’re leaving a job, and whether to take your car with you.
Finally, if you’re in a playful mood, try hunch.com. This is an “artificial intelligence” site that “learns” about your preferences as you answer various questions it poses. You can also see how others answered the question “should I move?” It’s fun, and a little like the old “magic 8 ball” game.
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Aug
23
Getting an Estimate from a Mover
Posted by royakianmahd under Uncategorized
If you’re getting ready to make a move, you’ll be looking over a mover’s contract soon. And even if you’re not, it’s always a good idea to review what terms might be used so that you are familiar with them. Here, from movecentral.com, are some of the terms you’ll encounter in a mover’s contract.
Binding. The mover offers a guaranteed price, within a small percentage of deviation, that is based on a complete list of items to be moved and the type of service performed.
Non-binding or hourly rate. This is not an estimate at all, only a price list. These rates are based upon the movers’ previous experience of jobs similar to yours.
Not to exceed. This quote is binding only on the mover. The final price for the move cannot exceed the estimate figure; but if the move comes in under the estimated amount you pay the lesser price.
Experts agree that the best kind of estimate is the “not to exceed” type since a limit has been set. But bear in mind that if you include a lot of heavy items at the last minute, the mover might want to charge you more. But, on the other hand, if the final bill comes out to be lower than the estimate, you pay the lower price and nothing more.
Check out my Facebook page. If you want to see my latest listings, go to my website by clicking here.
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Aug
23
Would You Believe? Groucho’s Home is on the Market
Posted by royakianmahd under Uncategorized
According to the Los Angeles Times, the former Beverly Hills home of Groucho Marx is on the market for $6,995,000. Marx died in 1977 at age 86, but, according to the LA Times, his initials have been carved into the concrete in two places – the driveway and near the pool. Some fruit trees that he planted remain on the property. Six million dollars worth of memories? I’d rather keep looking in Santa Monica …
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Roya Kianmahd\'s Blog is authored by Roya Kianmahd
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