Short Sales | San Diego Real Estate And Lifestyle

Too much hurt! Will there be a next time?

I’ve had to assist too many of my friends short sell their houses. Yes, I want them to sell, but because they want to to upsize to bigger and more elaborate digs, not because they have to. I was pondering – What can be done so that nobody I know falls into the trap again. The hell with the cures and the bailouts! Prevention and preparation, that’s the answer! I got it, let’s just hope it never happens again. Ah but that won’t work!

The next great economic disruption is coming. Are you ready for it?

by Dr. Jeffrey Lant

This title is sure to startle people who follow the ups and downs of the economy with care and perception. “Economic disruption,” they might say. “Whaaat? It is my distinct impression that things economic are improving, slowly but surely. Am I wrong?”

No, you’re right. Things ARE improving, the signs are unmistakable:

Item: Online 2010 Christmas sales rose 15% this holiday season from October 31 to December 23. Online retailers took in $36.5 billion during this period, compared to $31.5 billion the same period a year ago. (Note: apparel sales lead the way with $7.3 billion in sales, up 25.7 percent from a year ago.)

Item: Weekly unemployment applications of around 425,00 signal modest job growth. Such applications peaked at 651,000 in March, 2009.

Item: Companies increased their orders for long- lasting manufactured products by the sharpest increase in eight months, the Department of Commerce reported before Christmas, 2010. Demand rose for computers, appliances, and heavy machinery… with overall expected 2011 growth at 3.5 percent to 4 percent, up from 2.8 percent in 2010. Andante ma non troppo.

The rich are out and about buying things meretricious de rigueur for the country club set.

As retailers to the rich can unhappily confirm, wealthy shoppers, with their penchant for acquiring gaudy and overpriced items the rest of the world gets by quite happily without, were in short supply during the recession. This Christmas season of 2010 was very different. Mere bagatelles such as luxury automobiles and eye-popping ice were snapped up with alacrity — and no buyer’s remorse.

Said Michael J. Silverstein, a senior partner at the Boston Consulting Group in Chicago. “Many households with incomes above $100,000 don’t believe the sky is falling anymore. And when they don’t believe the sky is falling anymore, they want things.” Amen.

For instance, some national chains and independent merchants expect double-digit increases in jewelry sales for 2010, a dramatic turn-around from the painful 40 percent drops the hardest hit jewelers experienced since 2008.

So, if things are getting better bit by bit, why is this article about the next great economic disruption?

Because, quite frankly, the ease and abundance of good times are like a drug obliterating the painful lessons and memories of bad times… which all contributes to creating the next, inevitable bad times. Instead of losing the lessons of the still clear and painful past, we need to make every effort to remember them…. while preparing for the next great economic disruption for which we must be better prepared than the one from which we’re emerging from now.

The great English romantic poet Lord Byron can assist us. One day his lordship received a message from his demanding inamorata Lady Caroline Lamb to “remember” her. Tired to death of her incessant impositions, he sent her this message of unmistakable clarity:

“Remember thee! remember thee! Till Lethe quench life’s burning stream. Remorse and shame shall cling to thee, And haunt thee like a feverish dream!

Lord Byron indeed would remember and rearrange matters accordingly … and so must we all. After all, we all know that such disruptions occur at predictable intervals for which we must be ready.

Here are the preparatory steps to follow starting TODAY!

1) Start a “rainy day” fund. Build this fund by regular monthly additions until it represents at least 6 months of total home expenses and not a cent less. Building this fund in good times takes exceptional determination, not least because in such times you want to “make up” for the things you went without during the recession. At all times, therefore, you must remind yourself that the next bad times are on the way… and that you are determined to be ready for them. Save then as if your life depends upon it… for it does.

2) Survey all expenses. If you think you did so during the bad times, think again. Now you know how many of these things you can comfortably do without. Root them out now… and put the savings in the “rainy day” account. Turning current expenses into income-producing capital is a crucial part of how you’ll get comfortably through the next bad times.

3) Review the damage the bad times made. Did you, for instance, borrow against an IRA account or life insurance policy? If so, you must replace these funds by regular monthly payments, not least because such borrowings are likely to have tax and high interest payment implications. These need to be taken care of ASAP.

4) Start your trek ahead with a clear understanding, with a precise, realistic appraisal of where you are today. Many people at this point in the economic cycle are deeply depressed by what they have lost. This is a mistake. Instead of fretting over what is gone from your asset balance, instead review what you have and consider just how you will improve your net worth.

Still more recommendations

5) If you are self-employed, as many people reading this article are, always make the maximum allowable contributions into your retirement account. Treat these as payments, as you would any invoice. And always pay these retirement payments first, before other bills.

6) Make the maximum charitable donations that you can. Your charitable contributions should begin in January of the new year… and not in December. You should set a dollar donation objective for the year (in conjunction, of course, with your accountant.) Start working towards it as the new year dawns and not as it exits.

7) Remove yourself from what I call the “squandering classes.” Review each and every expenditure… not just for yourself but for any children still at home and old enough to have jobs. All have a responsibility to think first, determine whether this expense is in fact warranted, and reduce or go without whenever possible.

“Batten down the hatches” for 1 month. As a test of your system and habits, live one month in the good times as if it were one month in the bad. Cut expenses accordingly and see how easy (or difficult) your life would be in recessionary times. Such a drill should yield many good ideas as well as clarity on your spending habits.

Death, taxes, bad economic times

When I was growing up people said there were 2 great inevitabilities of life: death and taxes. However, there is in fact at least 1 more: bad economic times. Count on it. They will recur in your life over and over again.

Will you be ready for them?

You certainly will be if you treat them as the certainties they are and prepare accordingly, along the lines of this article. Doing so, when they arrive you will have nothing to fear, and that places you amongst the very smartest and best prepared, the ones destined to ride out the next great economic storm in comfort and with quiet satisfaction.

About The Author

Harvard-educated Dr. Jeffrey Lant is CEO of Worldprofit, Inc., where small and home-based businesses learn how to profit online. Attend Dr. Lant’s live webcast TODAY and receive 50,000 free guaranteed visitors to the website of your choice! Dr. Lant is also the author of 18 best-selling business books. Republished with author’s permission by Alan Schmitt www.alanschmitt.com.

If you are having any trouble paying your mortgage please see your options at www.knowyouroptions-sd.com

And….please share what YOU will be doing with others – it will be greatly appreciated. Don’t hesitate to comment!

Filed Under: Articles, investors, Short Sales

No reason for foreclosures yet they still lead modifications 2 to 1!

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Please, avoid the stigma of foreclosure and the damaging credit effects. Short Sale, Short Sale, Short sale. Get the facts at AVOID FORECLOSURE.

The short sale process has been streamlined and has a minimal effect on the seller – yes, you will have to move, but you will have to move with foreclosure too.

Check out the facts at www.knowyouroptions-sd.com

From Prudential CA realty Mission Hills website:

The GSEs’ regulator, the Federal Housing Finance Agency (FHFA), released its quarterly foreclosure-prevention report to Congress on Tuesday. The document showed that together, Fannie and Freddie initiated foreclosure on 339,000 home mortgages during the July to September timeframe. Loan modifications completed in the quarter totaled 146,500.

Foreclosure starts and completed foreclosure sales increased 23 percent compared to the previous quarter. Loan modifications declined 14 percent, with the majority of modifications completed through non-HAMP [Home Affordable Modification Program] programs.

Despite the falloff in the number of loans modified, FHFA sees improvement in the companies’ efforts. The regulator

says loans modified in 2010 are performing “substantially better” than loans modified in earlier periods. According to the report, less than 10 percent of loans modified in the last three quarters were 60-plus-days delinquent three months after modification.

FHFA points out that the performance of modified loans is driven by the size of borrowers’ monthly payment reductions. More than half of the borrowers that received loan modifications in the third quarter had their monthly payments lowered by over 30 percent.

All the GSEs’ foreclosure prevention actions – including loan mods, as well as short sales, deeds-in-lieu, repayment plans, and forbearance – totaled 227,300 during the quarter.

Total activity was down 16 percent from the second quarter, driven primarily by decreases in loan modifications and repayment plans. Short sales and deeds-in-lieu held steady quarter-over-quarter, at 29,500 and 1,700, respectively.

The number of loans the GSEs refinanced rose sharply in September, as mortgage rates plunged to historic lows. The two companies refinanced nearly 45,000 loans through the government’s Home Affordable Refinance Program (HARP) and nearly 90,000 through other streamlined refi programs during the month.

Of the 29.9 million home loans held within Fannie Mae’s and Freddie Mac’s active books of business at the end of the third quarter, 2.2 million were delinquent, with nearly 1.3 million falling into the seriously delinquent bucket of 90 or more days past due or already in foreclosure.

via dsnews.com

Filed Under: Current San Diego Market, Short Sales

Robo-signing – heard of it?

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It appears that Wells Fargo and Citi are not far behind in putting moratoriams on foreclosures in 23 “judicial foreclosure ” states. It appears that they also participated in Robo-signing.

The practice of just signing court documents and not reviewing them first has put many foreclosures at risk of major lawsuits. The documents they signed without review also stipulate that hey’ve reviewed the documents. Read all about the details here.

Speaking of foreclosures, if you know anyone having any kind of mortgage payment troubles, please refer them to my website – http://www.knowyouroptions-sd.com where I explain all of the various options.

Filed Under: lenders, Short Sales

No Foreclosures for a while – maybe the rest of the banks will follow!

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Foreclosures delayed indefinately by GMAC and Chase:

“JP Morgan Chase told CNBC on Wednesday that it will delay more than 56,000 foreclosure proceedings due to paperwork that was signed, ‘without the signer personally having reviewed those files.’ That came on the heels of GMAC halting foreclosures and evictions in 23 states for roughly the same reason. All this leads anybody with a heartbeat to figure that other large servicers will likely follow suit, as potential lawsuits abound. So what will that mean to the larger foreclosure crisis and the already weakening housing recovery? ‘It’s clear the pace of foreclosures will slow down,’ says Laurie Maggiano, Policy Director in the Treasury Department’s Homeownership Preservation Office. ‘As of right now this is a policy and procedure issue until proven otherwise, but never underestimate mid-term electioneering,’ says mortgage consultant Mark Hanson. ‘If this does go to the next level (i.e. national foreclosure moratorium, fear that hundreds of thousands of foreclosures have be
en performed illegally, etc.), the unintended negative consequences on the mortgage market, MBS investors, banks’ balance sheets and ultimately the housing market will be significant. ‘

We’re already seeing threats of ratings agency downgrades on all the major servicers, not to mention the threat to housing’s overall recovery. If the bulk of these cases are valid, then delaying them is only going to prolong the pain. ‘Worst case is that the current foreclosure problems turn out to be industry-wide and trigger a landslide of legal challenges that lock up foreclosures resolutions for a year or more,’ says Guy Cecala, publisher of Inside Mortgage Finance. That means all kinds of borrowers would sit in their homes free of charge, banks would be unable to get any return at all, and the housing market would still be facing the inevitable: ‘We may then see a [foreclosure] surge at some point in the future,’ notes Treasury’s Maggiano. We’ve talked an awful lot about artificial government stimulus skewing the housing recovery as it tries to help; that’s nothing compared to the potential for this latest scandal to wreak havoc on housing yet again.”

Many of these potential foreclosures should now take a look at short selling.

Go to www.knowyouroptions-sd any find several alternatives to foreclosure.

Filed Under: Short Sales

Corned Beef On Rye

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Being from New York, there was always a dozen or so places to get a great corned beef sandwich. In San Diego, I have one place where the Corned Beef sandwich (on rye with mustard of course) compares. DZ Akins in the College area right off of the 8 freeway is a deli just like back home. The food is top notch. Go check it out, here’s the menu.

I still have the most incredible house in metro San Diego listed for just under $2 million. Live here and you’d never want to leave. The sky show saturday was incredible – it happens once a year and the back yard of this house is the single best place in town to view it. See facebook post by Joe Gray, one of the agents on my team. For more info on the house see my website.

Many people, even those in the more expensive homes, are having trouble paying their mortgages. Go to my site at www.knowyouroptions-sd.com and read about all the options. Call me at (619) 985-6528 if you have any questions at all. I am an expert in distressed properties and will gladly review all of your options. Foreclosure SHOULD NOT be one of them.

Filed Under: Current San Diego Market, Short Sales

Foreclosures

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California’s REO (Bank-owned) inventory increased by about 4,000 properties during the last month and now stands at an estimated 108,000 repossessed homes that have not yet been resold, according toForeclosureRadar’s report.

New foreclosure filings in California are down 16.03 percent from last year, but the pipeline is becoming increasingly clogged. ForeclosureRadar reports that there are currently 155,000 homes in the state in a pre-foreclosure status, another 123,000 properties scheduled for trustee sales, and the time-to-foreclose has lengthened to an average of 287 days.

So…there will still be more foreclosures. I can’t stress enough that foreclosure DOES NOT have to be an option. If you can’t succeed at a loan modification, short sell the property!!

It can still keep you in the house for about 4 months and does so much less damage to your credit and situation. And for all anyone knows, you are just selling your house to downsize or whatever.

If you are in Arizona please call charlene or visit her website . In San Diego call me or visit my website at AtHomeInSD.com.

Also, first time buyers, get off the fence. Interest rates are low low low and prices are still near the bottom. Call me!

Bye for now – waiting for your call

Alan

Filed Under: Short Sales

No double dip

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I heard enough about this double dip krap. I’m convinced if you want a double dip, head for the ice cream store. It just is not going to happen. There are too many positive signs, especially in San Diego. My economist forecaster is none only than Berkshire Hathaway’s own Warren Buffet. He says there will be no double dip (see below ) in addition many economists are also turning that way see the story about no double dip by clicking here. -

Breaking from Moneynews.com

Buffett Rules Out Double-Dip Recession Amid Growth

Warren Buffett ruled out a second recession in the U.S. and said businesses owned by his Berkshire Hathaway Inc. are growing.

“I am a huge bull on this country,” Buffett, Berkshire’s chief executive officer, said today in remarks to the Montana Economic Development Summit. “We will not have a double-dip recession at all. I see our businesses coming back almost across the board.”

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Berkshire bought railroad Burlington Northern Santa Fe Corp. for $27 billion in February in a deal that Buffett, 80, called a bet on the U.S. economy. The billionaire’s outlook contrasts with the views of economists such as New York University Professor Nouriel Roubini and Harvard University Professor Martin Feldstein, who have said the odds of another recession may be one in three or higher.

“I’ve seen sentiment turn sour in the last three months or so, generally in the media,” Buffett said. “I don’t see that in our businesses. I see we’re employing more people than a month ago, two months ago.”

Buffett built Omaha, Nebraska-based Berkshire into a $200 billion provider of insurance, energy and luxury goods and services over four decades. The company cut about 20,000 jobs last year as demand for its products declined.

Also, Zillow’s figures for San Diego show a nice increase in San Diego home values.

Zillow’s Monthly Real Estate Report for San Diego

According to Zillow’s Real Estate Market Reports for July 2010, San Diego home values were up 1.1% compared to June 2010 and Up 11.6% compared to July 2009.

See the full story and all SD home values here.

Interest rates still at record lows so buy something now….. and by all means DO NOT LET YOUR SELF, YOUR FRIENDS or ANY OF YOUR FAMILY GO TO FORECLOSURE!!!!!! CALL ME FIRST 619.985.6528.

I have many solutions!

Til next time -

Alan

Filed Under: Current San Diego Market, Short Sales

Short sales more and more – good or bad?

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This is a good thing. Nobody wants to have to go through this, but if the homeowner is not going to be able to make it, this is a great choice.

When you sell your home as a short sale it seems your credit will be damaged approximately 60-200 points, especially if you were delinquent on your mortgage prior to the closing of the sale. While this may not seem very attractive, it is far better than letting the property go into foreclosure which may damage your credit anywhere from 200-300+ points for up to 7 years. Unlike a foreclosure, the short sale will not remain on your report even close to 7 years and if you work on rebuilding your credit after the sale goes through, it could be as if the short sale never even took place.

If you know anybody heading to foreclosure, cut them off at the pass – have them call a Realtor immediately or just have them call me, I can refer them to a short sale expert in their area.

On another subject, many people who don’t qualify are trying to get the $8,000 federal tax credit

Some homebuyers are trying to claim the $8,000 tax credit even though they missed the deadline. To claim the credit, buyers had to sign contracts by April 30 and close the sales by June 30. But…. real estate agents say some buyers were demanding quick closing dates to meet the June 30 deadline, even though they failed to meet the April 30 deadline. And because the IRS doesn’t require paperwork specifically proving the contract date, they might get away with it. Claiming the credit does require more than sending in your taxes and asking for the money. Buyers have to fill out a special form and attach a copy of their settlement statement, which they receive at closing.

The settlement statement does not require the contract date — just the “date of purchase,” which is the closing date. I’m sure the IRS will have more to say on this soon.

If the credit applies to you, you can get most of your questions answered here.

Until Tomorrow

Alan

Filed Under: Short Sales

Don’t just walk away!

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Many who are just walking away await a surprise down the road as lenders turn around and sue for the deficiency. This can happen in foreclosure or short sale. It is imperative that if you are having problems paying your mortgage that you communicate with the bank ( or have your realtor or attorney) communicate with the bank to work out a resolution.

There are 3 options all FAR better than foreclosure. A loan modification if you want to stay in the house, a short sale which will have a much lesser effect on your future than foreclosure or lastly a deed in lieu. In any of these solutions you must make sure to get in writing that the entire loan is settled and that the deficiency is wiped out through the process.

Keep in mind if there is a deficiency, the mortgage company may ( and probably will ) sell the deficiency to some vulture company for pennies on the dollar , who will harass you and threaten lawsuits, garnishments and the whole lot.

But following the days of the housing boom that created plenty of millionaire investors seemingly overnight, it’s not uncommon for borrowers to default on mortgages while still holding lucrative investments.

As the next wave of the housing crisis plays out, those most in danger of getting slapped with lawsuits include angry homeowners who ransack properties they’re losing in foreclosure and borrowers who walk away from “underwater” mortgages. In both cases, analysts say, banks will want to discourage other people from such behavior. These are prime targets and although banks deny it, the revenge factor may be huge.

Also remember, that a forgiven mortgage balance through 2012 is not considered taxable income on a primary residence as long as the debt was used to buy or improve the house. But borrowers who walk away from investment properties risk having to pay federal income taxes on the forgiven amount.

If you are having trouble and need any information at all about how to proceed , please contact me and I will gladly assist you or get you to somebody who can help! call me at 619.985.6528 or just go to our website.

Have an incredible day!

Alan

Filed Under: Current San Diego Market, Short Sales

There is no need for anyone to go through foreclosure!

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If you cannot make your mortgage payments, then you are probably in enough of a hardship for the lender to approve a short sale.

A short sale is a very positive solution to a tough situation.

Typically, the bank agrees to let you sell the home at market value and absorbs the loss. I’ve been working these very successfully for the past 2 years. Your credit report can recover very quickly.

Do Not Delay! Once you are two or three months past due, get into action. And….you don’t even have to be late.

There are many other benefits which I’d be happy to discuss with you personally. If you are outside San Diego, I can refer you to a Certified Distressed Property Expert (CDPE) in your area.

Filed Under: Short Sales

Buffett Rules Out Double-Dip Recession Amid Growth

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