short sale

Short Sale – Considering a Short Sale?

While you may have heard that selling your home as a short sale can be a long, frustrating, and sometimes futile process, the tide may be turning as lenders have become increasingly more amenable to short sales. Many lenders, says real estate professionals are viewing short sales in a more favorable light after suffering through failed loan modifications and countless foreclosures. Perhaps there is a light at the end of the tunnel for those short sales.

Before embarking on the short sale process, however, talk to a REALTOR® who is experienced in the area of distressed properties and short sales. One of the top reasons short sales fail is because the home seller never actually qualified for a short sale in the first place. Answering the following questions accurately and thoroughly will determine whether your home is eligible for a short sale:

short sale questions:

• Is your property currently on the market?
• Is it listed with an agent?
• Is this your primary residence?
• When was the property purchased?
• What was the original purchase price?
• Who holds the mortgage?
• What kind of loan do you have? (FHA, VA, Conventional)
• Do you have any other liens against your property?
• Who is on the title (or deed) for the property?
• Who is on the mortgage?
• Do you have mortgage insurance?
• Are you current with your payments?
• If not, how far in arrears are you?
• How much do you owe?
• Why do you need/want to sell?
• What caused you or will be causing you to miss your mortgage payment obligation?
• Do you have funds in accounts that could be used to satisfy the deficiency?
• Are you currently living in the property? If not, where are you living and is the property being maintained?
• How soon do you need to move?
• Are you up to date on your condo or HOA payments (where applicable)?
• Do you owe any back taxes?
• Are you considering filing for bankruptcy protection?
• Are you currently pursuing a loan modification with your lender?
• Who is occupying the property?
• Do you hold or are you subject to any type of security clearance related to your job?
• What are your plans after you sell?
• Are you looking to receive any money from the sale of your home?
• How much income are you currently making from all sources? Do you anticipate any income change up or down in the not-too-distant future?

When you have answered the questions above call Pam and Joanna to find out the details on the options available to you before you consider a short sale. If you are seriously considering a short sale Pam and Joanna have extensive experience in closing short sales and are always available to talk with you and provide the answers that will help you make your decision on whether you should consider a short sale.

Pam Parton 760-580-1615 Joanna Woolley 760-580-1615

Short Sale

If you or someone you know is considering a Short Sale of their personal residence, time is running out on the Mortgage Debt Relief Act of 2007.

Short Sale Debt Forgiveness

Under federal law, a creditor is required to file a form 1099-C whenever it forgives or cancels a loan balance greater than $600. This may create a tax liability for the debtor because the canceled debt is considered ‘income’ for tax purposes. This would normally apply to the debt forgiven from a short sale on a home mortgage as well.

However, the Mortgage Forgiveness Debt Relief Act of 2007 provides tax relief for some mortgage loans forgiven in 2007 through 2012 (Discharge must be completed by 12/31/2012). The Mortgage Forgiveness Debt Relief Act of 2007 allows taxpayers to exclude income from the discharge of the short sale debt on their principal residence when they opt to short sale their home.

To be certain that a homeowner will qualify for the current protections against income tax on forgiven short sale debt before the laws expire on December 31st 2012, they need to plan on completing the process in November 2012, so there will be plenty of time to close the escrow before the year ends. This means starting now. The short sale of a home can be a lengthy process, and can take between 3 to 6 months to complete. Do not delay any longer, there are solutions for most situations.

If you or someone you know has been considering taking action to resolve your mortgage situation and would like more short sale information, contact us for a confidential, no obligation consultation to learn about different options that are available to you to help you make the decision that best fits your needs. There are many different options available now, but the longer you wait the less options become available to you.

Pam Parton or Joanna Woolley

760-580-1615 or 760-580-1630

Short Sale effect on Credit

Short Sale GOOD NEWS…THE ANSWER IS YES!

This is such an important question to ask yourself if you are going through a Short Sale.

So many people feel that they will never recover from this type of hardship. Not to worry, there is hope!

Short Sale FHA Guideline:

• If the borrower/homeowner has a short sale and they are current on their payments prior to the short sale then they are still eligible for FHA financing subject to underwriter discretion.
• If they are in default at the time of the short sale, then they must wait 3 years, exceptions can be made for extenuating circumstances. These only apply to FHA and VA loans, when it comes to the rules for an exception. Extenuationg circumstances are nonrecurring events that are beyond the borrowers control that resutl in a sudden, significant, and prolonged reduction in inclome or a catastrophic increase in financial obligations.
• After 3 yrs: Max LTV 96.5%

Short Sale Conventional Guideline:

• If the borrower / homeowner had a short sale they must wait a minimum of 2 years to repurchase
• After 2 years: max LTV 80%
• After 4 years: max LTV 90%
• After 7 years: max LTV is based on product

Short Sale VA Guideline:

• If the borrower / homeowner had a short sale they must wait a minimum of 2 years to repurchase
• After 3 years: max LTV 100% upon VA eligibility

If you or any one you know is struggling to pay their mortgage and would like more information regarding Short Sales, please contact us right away. There are several options available to you now, but the longer you wait, the less choices of solutions are available. Learn about the new short sale laws regarding anti-deficiency protection to ALL 1-4 residential mortgages or deeds of trust where the beneficiary consents to a short sale, whether a first deed of trust or a junior deed of trust.

We are certified SFR, Short Sale Foreclosure Resource and have had 100% success helping our clients navigate through the short sale process. We can help you too.

Pam Parton & Joanna Woolley

760-580-1615 or 760-580-1630

Short Sale Law 458

SB 458 Short Sale Law Effective Immediately in California No Fee to Approve Short Sales and Short Sale Law Now Applies to Junior Loans Governor Brown has signed Senate Bill 458 (Corbett) expanding anti-deficiency protection to all 1-4 residential mortgages or deeds of trust where the beneficiary consents to a short sale, whether a first deed of trust or a junior deed of trust.

As an urgency bill, this short sale law became effective on July 15 when it was chaptered into law. The new short sale law also limits the short sale anti-deficiency protections by excluding short sales where the trustor is a limited partnership or LLC. Existing short sale law enacted in 2010 already excluded corporations.

Short Sale laws

The new law expands on short sale anti-deficiency legislation passed last year. Senate Bill 931 (Ducheny) was enacted last year in response to concerns that borrowers considering a short sale could have greater liability after a short sale than after a foreclosure.

SB 931 prohibited a lender from obtaining a deficiency judgment as to a first mortgage or deed of trust following a short sale. Since SB 931 only applied to first mortgages, homeowners with more than one mortgage could still be liable to a junior noteholder after the short sale. The new law addresses that issue with short sales.

For more details on short sale law sb 458 you can visit the California State Senate website at http://senate.ca.gov The people of the State of California do enact as follows: SECTION 1. Section 580e of the Code of Civil Procedure is amended to read: 580e. (a) (1) No deficiency shall be owed or collected on a short sale and no deficiency judgment shall be requested or rendered for any deficiency upon a note secured solely by a deed of trust or mortgage for a dwelling of not more than four units, in any case in which the trustor or mortgagor sells the dwelling for a sale price less than the remaining amount of the indebtedness outstanding at the time of short sale, in accordance with the written consent of the holder of the deed of trust or mortgage, provided that both of the following have occurred: (A) Title has been voluntarily transferred to a buyer by grant deed or by other document of conveyance that has been recorded in the county where all or part of the real property is located. (B) The proceeds of the short sale have been tendered to the mortgagee, beneficiary, or the agent of the mortgagee or beneficiary, in accordance with the parties’ agreement. (2) In circumstances not described in paragraph (1), when a note is not secured solely by a deed of trust or mortgage for a dwelling of not more than four units, no judgment shall be rendered for any deficiency upon a note on a short sale secured by a deed of trust or mortgage for a dwelling of not more than four units, if the trustor or mortgagor sells the dwelling for a sale price less than the remaining amount of the indebtedness outstanding at the time of short sale, in accordance with the written consent of the holder of the deed of trust or mortgage.

Short Sale … After the Short Sale

Following the short sale, in accordance with the holder’s written consent, the voluntary transfer of title to a buyer by grant deed or by other document of conveyance recorded in the county where all or part of the short sale property is located, and the tender to the mortgagee, beneficiary, or the agent of the mortgagee or beneficiary of the short sale proceeds, as agreed, the rights, remedies, and obligations of any holder, beneficiary, mortgagee, trustor, mortgagor, obligor, obligee, or guarantor of the note, deed of trust, or mortgage, and with respect to any other property that secures the note, shall be treated and determined as if the dwelling had been sold through foreclosure under a power of sale contained in the deed of trust or mortgage for a price equal to the short sale proceeds received by the holder, in the manner contemplated by Section 580d. (b) A holder of a note shall not require the trustor, mortgagor, or maker of the note to pay any additional compensation, aside from the proceeds of the sale, in exchange for the written consent to theshort sale. (c) If the trustor or mortgagor commits either fraud with respect to the short sale of, or waste with respect to, the real property that secures the deed of trust or mortgage, this section shall not limit the ability of the holder of the deed of trust or mortgage to seek damages and use existing rights and remedies against the trustor or mortgagor or any third party for fraud or waste. (d) (1) This section shall not apply if the trustor or mortgagor is a corporation, limited liability company, limited partnership, or political subdivision of the state. (2) This section shall not apply to any deed of trust, mortgage, or other lien given to secure the payment of bonds or other evidence of indebtedness authorized, or permitted to be issued, by the Commissioner of Corporations, or that is made by a public utility subject to the Public Utilities Act (Part 1 (commencing with Section 201) of Division 1 of the Public Utilities Code). (e) Any purported waiver of subdivision (a) or (b) shall be void and against public policy. SEC. 2. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to mitigate the impact of the ongoing foreclosure crisis and to encourage the approval of short sales as an alternative to foreclosure, it is necessary that this act take effect immediately. If you, or someone you know has been considering the short sale of a property they own, contact us right away to discuss the options that are available with a short sale.

We are your certified, Short Sale Foreclosure Resource, we are here to help! Pam Parton & Joanna Woolley 760-580-1615 or 760-580-1630 Article courtesy of Brian Olenik, Corenthian Title shareshare

Governor Brown has signed Senate Bill 458 (Corbett) expanding anti-deficiency protection to all 1-4 residential mortgages or deeds of trust where the beneficiary consents to a short sale, whether a first deed of trust or a junior deed of trust.

First time Home Buyers do's and don'ts

First Time Home Buyers Do’s And Don’ts

For first time home buyers, buying a home is one of the most significant investments they will ever make. In spite of the doubt and confusion clouding both the financial markets and news headlines this is still one of the best times in the last 40 years to buy a home and there are many great opportunities out there especially for first time home buyers. Home prices are more affordable than ever before and interest rates are the best we have seen in many, many years.

However first time home buyers are understandably anxious when it comes to making one of the largest investments of their lifetime.

Here is a simple list to help make the process a little easier for first time home buyers dreaming of home ownership.

First Time Home Buyers Do’s:

First time home buyers do need to take time to explore mortgage pre-approval. Getting a head start on this will help others involved with your purchase understand that you are serious about homeownership.

First time home buyers do need to make a decision on who you will be working with on your transaction, choosing a team of experienced professionals will be very important in making the home buying process simple and straight forward. Begin with a choice for your Real Estate Agent who will be able to connect first time home buyers with suitable mortgage lenders, home inspectors, lawyers and others who play a role in the home buying process.

First time home buyers do need to anticipate your future needs and buy for your personal lifestyle. What may make a perfect starter home might not work as well when children come along for first time home buyers. Remember, people move for lifestyle reasons and your first home will more than likely not be your last.

First Time Home Buyers Don’ts:

First time home buyers don’t buy more than you can afford. Make sure that your down payment, closing costs, monthly expenses and taxes are within your budget before you sign on the dotted line.

First time home buyers don’t try to time the market. Instead of waiting for an unreliable window of time and potentially missing out on the perfect home – first time home buyers should focus on their own lifestyles and buy when the time is truly right for them.

First time home buyers don’t jump into an unusual or confusing mortgage. When it comes to down payments and mortgages, if it sounds too good to be true, it probably is. Be sure to read carefully through every aspect of the proposed agreements to fully understand your end of the bargain. Don’t be afraid to ask questions as first time home buyers.

Don’t underestimate the value of a trustworthy real estate agent’s expertise. While being savvy first time home buyers will help you on the road to ownership, a local expert with years of negotiating experience is invaluable when it comes to helping you find the perfect home – and closing the deal.

CALL PAM AND JOANNA FOR MORE INFORMATION ON HOMES IN NORTH SAN DIEGO COUNTY:

PAM 760-580-1615 JOANNA 760-580-1630

Content by Courtesy of RisMedia

 There is no perfect formula for selling your home efficiently, but by following these five tips prior to listing you can increase your chances to close quickly at a higher price.

1.) Update your old garage door(s). Garage doors seem like a non-issue, but many times they make up a significant percentage of the front of a home. Because of this, they are one of the first things that buyers notice when they pull in the drive way. Replacing, or even just painting, these central fixtures will do wonders when it comes to instantly impressing perspective buyers and standing apart from your competition. The market has changed drastically since many of us purchased our homes here in town. I frequently hear buyers say that they have taken a house off their list because of the lack of curb appeal. This issue is especially important to people on busier streets, corner lots, or near a neighborhood eyesore.

2.) Replace old windows. Outdated windows age a home significantly, and you can often upgrade standard windows to vinyl for a reasonable $300 per window. The average home has 8 windows, so this upgrade doesn’t cost nearly as much as you might think and it will make a huge difference to the value perceived by prospective buyers. Key point to remember is that when buyers view a home they love, if they see it has older windows, they consider it a time consuming and costly headache. First time buyers have never replaced windows and often dramatically overestimate the cost to cure this issue. By replacing pre-listing you an actually save money. A well priced, move-in condition home will sell for far more than one with windows in need of repair.

3.) Assess your floors . If you have hardwood flooring, it’s worth the investment to have them refinished considering buyers put an extremely high value on them; you’ll get the most bang for your buck if they are refurbished. Carpets should be shampooed and replaced if they are stained or look worn. You don’t need to spend large amounts of money on the highest grade or most modern name but something inexpensive and neutral will certainly bring you a return on the investment. Even the smell of new carpet will make buyers set your home apart from the comparables.

4.) Paint the trim. If you can’t afford the daunting task of painting your entire house, painting just the trim will still make a big difference when it comes to curb appeal. Painting the whole house can be expensive, time consuming, and delayed by weather conditions; painting just the trim will give your home a fresher look. Interior trim is equally as important.

5.) Update fixtures. Keep an eye out for sales at home improvement stores and replace outdated lighting, plumbing and hardware fixtures. Simple replacing lighting fixtures and knobs in the bathroom or kitchen can update the entire look of the room. You can find many modern brand name fixtures online on contractor supply websites by just searching for terms like sale faucets, sale plumbing fixtures etc.

CALL US IF YOU ARE THINKING OF LISTING YOUR HOME, WE CAN HELP YOU!

PAM PARTON  760-580-1615            JOANNA WOOLLEY 760-580-1630

CONTENT BY COURTESY OF RISMEDIA

The end of January’s Fed announcement was very favorable for mortgage rates. This week’s mixed economic data, Treasury auctions, and news from Europe had little influence. As a result, mortgage rates ended the week lower.

The forecasts from Fed officials for the fed funds rate contained some major surprises for investors. Fed officials now expect that economic conditions will allow the fed funds rate to remain at exceptionally low levels until at least “late 2014″.Prior statements extended the expected time frame only to mid-2013. In addition, comments from Fed Chief Bernanke suggested that Fed officials would like to see stronger economic growth, and they are open to the possibility of additional Fed easing. Many investors think it is likely that the Fed will announce additional MBS purchases at a later meeting. The expectation for a low fed funds rate and the possibility of additional Fed purchases of mortgage-backed securities (MBS) increased demand for MBS, which resulted in higher MBS prices and lower mortgage rates.

The most recent release of Gross Domestic Product (GDP) showed an increase at a 2.8% annual rate during the fourth quarter of 2011, which was a little below the consensus forecast, but up from 1.8% during the third quarter. Early estimates for the first quarter of this year are for a slower growth rate. The long-run average growth rate for the economy is generally considered to be around 3.0%, and the economy usually grows at a faster than average rate following a recession. Given that the economy is growing below its potential and that inflation remains tame, the Fed’s expectation that monetary policy will remain very stimulative for a long time is understandable.

CALL PAM PARTON 760-580-1615     OR                     JOANNA WOOLLEY 760-580-1630

We would love  to help you with your home sale or purchase in North County San Diego, give us  a call at any time so we can help you get the process started!

Content Courtesy of John Yeager, Summit Mortagage

If you’ve been thinking about buying a new home, winter is the time to start getting serious. Here are a few reasons to brave the cooler weather and go on a house hunt:

The winter season has fewer units on the market, and sellers tend to need to move from their property. You can use that to your advantage to get a favorable deal.

Winter has fewer buyers in the market. Looking for a home in the winter can be inconvenient, and people are less likely to move. Families also tend to be on a September to June cycle because they are unwilling to move their children to a new town in the middle of the school year. Fewer buyers means less competition.

Lenders usually have fewer loans to process and less paperwork to deal with. With lenders less hassled, you might be able to  expect a smoother process to get approved for a mortgage.

Finally, as all savvy shoppers know after the holiday season comes the season of bargain opportunities. This includes houses as well!!

So go out and brave the weather, rain or sun and find that home you’ve been looking for. NOW IS THE TIME TO BUY.

For a complete list of all the latest short sales, foreclosures and standard sales call: PAM or JOANNA .

PAM PARTON: 760-580-1615                       JOANNA WOOLLEY: 760-580-1630

NOW is the time to buy Real Estate, Don’t wait till its too late!

If you have any questions about the current market and the value of your home, or if you are interested in purchasing a home in the future, feel free to contact us anytime at

Pam Parton and Joanna Woolley
760-580-1615 or 760-580-1630

Why Real Estate is still AMERICA’S BEST INVESTMENT

The latest headlines tell us the economy fluctuates from recovery to ruin on a weekly basis. In reality, real estate is cyclical, and the market is on its way to recovery in most areas. Although you may feel nervous about home ownership, property is still your best long – term investment.

In more than two thirds of the country, housing affordability has dipped to pre-housing bubble levels, creating opportunities for those looking for a bargain. Home prices are expected to rise in 2013 due to fewer distressed sales and the impending housing shortage.

Mortgage rates have decreased over the last fifty years to record lows. Due to the economic downturn,borrowers with stellar credit and a solid employment history are best able to secure financing right now. However, as conditions improve, the market will expand for borrowers who may not fit the mold of traditonal lending standards, such as the self employed.

A major advantage of homeownership is building equity. The average seller who purchased a home in 2002 gained 24% in equity, while those who purchased their homes 11 to 15 years ago had a median gain of 40%.

So in spite of all the negative news the press is brain washing us with IT IS STILL A GREAT TIME TO BUY A HOME!

For more information on great HOME  DEALS available in North County San Diego give us a call as  we would love to share this information with you.

PAM PARTON:  760-580-1630                             JOANNA WOOLLEY: 760-580-1615

Content courtesy of

Brian Buffini, Wall Street Jouranl and National Association of Realtors.