Every once in a while, you come across a lucky break as a seller and a short sale is easy to slip into and your credit rating is saved. A friend of mine had this happen last year as she was able to turn her home back over to the lender with no foreclosure or fines of any kind due to extenuating circumstances. But that is a unique case. Most of the time, you have to prove your case substantially with no one else involved. It can be a pretty scary time. Will the bank allow you to turn over your home without ruining your credit? Can you prove that you have done everything you can to hold on to the property? Who exactly do you talk to? Do they have too many properties in default as it is and arent interested in helping you at all?
I want to help you sort through the unfortunate questions you are facing. Being a short sales specialist, I can help you determine if there is anything more you can do. If you have truly exhausted your avenues of possibility, then I can help you negotiate a short sale before you fall into full foreclosure. Its what I love to do. I dont want to see anyone get a black eye in the real estate market. Nor do I want to see you loose what little equity you do have in your home. Lets talk about what we need to do to get you into the best position you can be in when approaching the mortgage lender if we have to go that direction.
There are things you can do when looking at your options.

Have you done everything you can to slim down your debt to income ratio?
Is there anything you can sell to get you by?
Is a second job an option for a short time?
If we determine that you have done everything in your power to keep your home, we can work with the lender to figure out the best plan for you. In the mean time, I can list your house to help you sell it as quickly as possible.
Just dont get overwhelmed. Talk to an expert in the field and find out just how scary the process should not be.

CNN Money has come out with the top 10 foreclosure markets in the US.
Surprisingly, California did not make the list. Who would have thought that we would miss a top 10 list? And can you believe who made the list?
Greenly, Colorado
Detroit, Michigan
Miami, Florida
Indianapolis, Indiana
Ft Lauderdale, Florida
Denver, Colorado
Dayton, Ohio
Dallas, Texas
Forth Worth, Texas
Atlanta, Georgia

There are 3 states to note made the list twice: Colorado, Texas, and Florida. I bet the foreclosure specialists there are having a field day! Lets just hope they are doing their best to sell pre-foreclosures and help out the seller as well as the buyer looking for a good deal.
So what does that mean for Sacramento? We are doing a good job of moving properties before they reach full foreclosure. Short sales, or pre-foreclosures, are successful in California due to the ability to get the word out of their availability. So why not call a specialist?
California did make the where to buy now list that CNN Money put out at the same time. San Luis Obispo, just 4 1.2 hours from our Sacramento, made the list. According to CNN Moneys report, the projected gain in home price over the next 5 years will be around 40%. The article states that baby boomers will sell their homes in and around southern California and move to San Luis Obispo. That means that there will be plenty of real estate to choose from around here. So hang on to your hats because the housing forecast just got a little warmer.
Picture courtesy of CNN Money

http://money.cnn.com/popups/2006/biz2/newrules_foreclosure/index.html

So you are interested in buying a pre-foreclosure, AKA short sale? Lets walk through the advantages and pit falls of such a buy.

The most common advantage to a short sale is the win-win situation. The owner has to sell quickly and would like to maintain some sort of profit along the way. This gets them out of a bad credit rating and lets them feel like they have some out of a bad situation with some sort of success. The buyer would like to get a gem of a deal. This can be accomplished by offering a fair deal to the seller while making sure you dont pay too much. This is where a short sales specialist comes into play. I can help with this as I am certified in short sales here in California.

One of the most common pitfalls is that sometimes it isnt as easy to get a short sale pushed through the lender as most people would think. You need someone who will help on both ends. The seller has to justify and prove that they will not be able to catch up on payments and have in good faith tried everything they could to complete the terms of the mortgage. The lender will not want to take a loss on a property if they dont absolutely have to. They will want to get the best price they can so that they dont loose any money. In a true short sale, the lender will allow the seller to sell the house for less than what is owed on the property so that foreclosure is avoided. The seller wants to try their best to sell for just over what is owed so that they come away with something to show for their investment. Getting a short sale through the lender to closing is a tedious but rewarding feeling.

The bottom line is that there are always two sides to every coin and getting involved in a short sale is a tricky business that can be very rewarding when you do it right. You want to find a certified real estate agent that can navigate the road to success for you. I can do just that. So give me call and lets talk.

Ever wonder why now is the perfect time to invest in real estate by finding the perfect short sale? Here are a few good reasons to jump right now into the short sale of your lifetime.

They say the real estate bubble is about to burst. Dont blink. The real estate bubble is floating so now really is the time to get into a pre-foreclosure. Everyone wants to make sure they can get the money they want out of their property. So now is the time to buy. I can show you how to find the perfect pre-foreclosure and slip in to get it before anyone else does.

Everyone wants to sell before its too late, so to speak. Real estate owners who are finding themselves in trouble need to sell their properties before heading into full foreclosure. So they just want to get out from under the debt before their credit is ruined. In comes the perfect scenario for the real estate investor. Id love to help you find the perfect short sale to invest in. Its a win-win situation. You get a great deal and the seller gets out of a bad situation.

Interest rates are staying put. Now that there is a new congress installed, interest rates have the chance to fluctuate. This would be the case in any new congressional session. So before the Federal Reserve decides to increase interest rates again, take the time to get into a new investment with a good rate. There is no smart reason to get into an investment when the interest rates are above 10%. So jump while the jumpings good and the interest rates are low. There is no forecast that says the interest rates are going to go down, but there are plenty that say they will go up soon. So take advantage now of the low interest rates.

So if you are interested in real estate investments, short sales and foreclosures are the way to go right now. They are the only guaranteed way you will get a great deal AND manage to make a little money. Call me and let me introduce you to the world of short sales and lets do lunch!

A lot of you ask me why I have chosen to specialize in Short Sales and foreclosures. It seems so sad to most of you. But let me tell you why it is so near and dear to my heart.

In 1992 I woke up and realized I was a single parent of a wonderful daughter and was on welfare. It was time to do something about it. My dream was to have a home of my own for me and my daughter and I just knew no realtor would look at me in the financial state that I as in. I simply wanted to change my financial outlook for both me and my daughter. So I worked really hard.

My friend, Marguerite Crespillo, showed me how to go forward with my plan of becoming a licensed Real Estate agent. I wanted to be able to help others in my position. So with the help of my parents, I waited tables in the morning, went to real estate school in the afternoon and bartended at night to support my family. I finally graduated and am now the only certified short sales specialist in the Sacramento/Stockton Area as far as I know.

I decided to specialize in short sales (pre-foreclosures) and credit repair in order to help people who are where I have been. Just because you might have credit problems or find yourself in a situation where you have to sell your house to avoid foreclosure, doesnt mean that you should feel bad or be embarrassed about where you are in life. Come to me and let me show you how to hold your head high when giving an offer on a particular property. I can show you properties that you thought were out of your price range that, because of possible foreclosure, you CAN afford!

I hope you will find honesty, integrity, and a genuine concern for your welfare in my heart. So let me work with you and show you how we can work together to get you into the home of your choice or get you out of a jam that could hurt your credit. If you find yourself with bad credit and wanting to move or relocate to the Sacramento area, give me a call and let me show you how to find your dream home. I am looking forward to talking with you.

Pearl

It seems to me that every time I turn on my radio or TV, now that the New Year has arrived, there are tons of advertisements for debt consolidation loans out there. You can combine your mortgage and all your credit cards for one low fee and one lower payment! Let me give you a word of advice€¦ Be careful!

Here are a few things to keep in mind when you are considering a consolidation loan.

• Is the interest rate that much better? Take a look at the interest rates and compare carefully. If you roll everything up onto one loan, you are going to take longer to pay the entire loan off versus paying them off separately.
• Do you have enough equity in your home? Make sure you have enough equity in your home to apply for a combo loan. The last thing you want is to get tied to a loan that eats up your equity and then not be able to have room for emergencies.
• Can you make the payments on time? Dont be late on your mortgage payments. This can, in some instances, cause you to default on your mortgage and your lender can sue you for bankruptcy. You dont want that.
• Will you be there long enough o justify the loan? Dont get tied up in a longer payment process if you are planning to sell your property in 3 years or less. You wont bet your investment back and you will owe more than you do now. Better to take a credit card payment with you and make more on your home than to take a hit when you sell your home.
• Can you make a bigger payment on your principle with a combo loan than if you kept them separate? If you can, then go for it! Getting ahead is the name of the game.

I just want you to be smart when you refinance your home. Getting several loans rolled into your mortgage is one of the fastest ways to get yourself into trouble. Most people just think that deducting interest on their taxes is the best way to go. In many ways, it is. But putting your ability to keep your home in jeopardy is never smart. That is how you get into a foreclosure situation to begin with. I would rather be selling resale homes with no pre-foreclosures involved than to see more people fall into the foreclosure trap in the first place.

So be smart with the biggest investment you have and enjoy a stress free New Year.

Ok, so we talk about the differences between pre-foreclosure and foreclosure all the time. Lets clarify the definitions before we go any further.

A pre-foreclosure is when the owner of a property still has time to either catch up on their payments or sell their home before they loose whatever equity they have. Usually, the grace period is around 30-90 days. Some states are longer but that is the average.

A foreclosure is when the bank has given the allotted time and the owner can not come up with the needed money to get caught up on the payments or sell. This is when the bank takes over and the owner is given notice of eviction and must vacate the property if they are currently living there. The bank then tries to sell the property to cover the losses taken by the foreclosure on the original loan.

So how does California work? Lets take a look at the laws here in California. The bank will give you ample notification that your loan will go into the foreclosure process. So you dont have to worry that you will all of a sudden get an eviction notice one day in the mail. Look over your terms of agreement in your loan. The fine print in some lending institutions agreements says that even if you make payments but are consistently late, the bank has the right to give you a notice of default due to late payments. There is really no way around this one as they arent looking for you to get caught up. They just dont want to have to keep getting late payments.

California law says that you have 90 days for the notice of default to take place. In other words, the bank will give you 90 days in the state of California to get your payments caught up or for you to sell the property and settle the entire loan. This will give you ample time to decide the course you want to take and then do what you need to do. As a buyer, this is the period of pre-foreclosure that you would want to take advantage of. It is a win-win situation for both parties.

After 90 days, California says that the bank can then put your home up for sale. This is called a trustee sale and they have 30 days to sell your home. If this happens, you are officially in foreclosure. The notice usually goes on record at the local courthouse. If you look in your local paper, you will see notice of trustee sales periodically. That is how the buyer can find a good deal after the property enters into foreclosure.

So now you know the nuts and bolts of California law and the foreclosure timeline. The best deal for both parties is the pre-foreclosure, obviously. However, banks will usually try to get what they can and hope for fair market value on a foreclosure. But their main goal is to dispense of the property all together. So do your homework and, hopefully, you will come out on the better end of the deal.

People usually think that pre-foreclosures and foreclosures are for the lucky or for sharp, savvy people who can find a great deal anywhere. Thats just not the case. Lets take a look at a case study in good fortune.

A couple is looking for a home that is handicap accessible but have very little money to put towards a down payment. Their parents will be able to help, but in order to afford a house, they need to find a great deal. So they went to the local modular home showroom and began talking to the salesman. He told them that he actually had a home that hasnt been completely finished yet on about 2 acres of land. The lady that bought and had the home built wasnt going to be able to complete it. He was trying to talk her into letting him buy the home back so that she didnt go into foreclosure. If she decided to go that route, he would be able to sell them the house for less than the value of the house. In other words, he sent them to a possible pre-foreclosure property to look at. They loved it!

They were able to find out about a pre-foreclosure before it became official. What a great find! That way, they are able to pick up the property for what is owed on it instead of paying full market value on a brand new home. This will be vital for the couple as they are in need of a handicapped accessible home without being able to pay the extra cost for the amenities. Obviously, they have to put most of their money into medical expenses so they needed to find the perfect home with the perfect price tag.

Pre-foreclosures arent for just the special or privileged. Anyone can find a great deal with just a little effort and leg work. You can always find a good deal in a resell home but the chances of finding as good a deal as a pre-foreclosure or full foreclosure is not likely. Of course, the easiest way to find a great deal on a pre-foreclosure is to contact me and let me show you the latest listings of pre- and actual foreclosures.