April 22, 2013

La Mesa Short Sale Specialist

Posted by martikilby under La Mesa CA, Short Sale | Tags: , , , , , |
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La Mesa Short Sale Specialist

SHORT SALE BUTTON

For many, selling their home in a short sale has been a solution that immediately put an end to the harassing phone calls and sleepless nights. As your La Mesa short sale specialist, here are 3 things you might not know:

Relocation Allowance: Though a relocation allowance cannot be guaranteed, it is not uncommon for the seller to be paid $2,000 – 3,000 by the lender at the close of escrow to help with the costs of moving. It all depends on who the investor is on the loan.

No Deficiency Judgment: In California it is against the law for a bank to file a deficiency judgment against you after a short sale when the loan was a first mortgage on a property from 1-4 units.

No Cost to the Seller: In a traditional equity sale, the seller usually pays the real estate commissions to the listing and buyer’s agent, along with his/her share of the closing costs. In a short sale, the bank pays all of those costs.

I have lived and worked in the La Mesa, Fletcher Hills, and Mt. Helix area for years and have been a La Mesa short sale specialist for over 4 years. Here is what a few of my clients have said about their short sale experience:

“Marti was able to quickly secure a qualified buyer for our home and smoothly handled all of the negotiation with our bank. It was a huge relief to be out from under a mortgage we could no longer afford.” Megan M.

“Our situation with both a first and second mortgage and different lenders was very stressful, and I was leery of doing a short sale… I had heard so many horror stories. But Marti patiently walked us through the process and thoroughly explained every step along the way. Despite a reluctant 2nd lien holder, Marti was able to negotiate the sale and get it done.” Amber B.

“My only regret is that we waited so long to list our home for sale. I would highly recommend Marti to anyone faced with a mortgage they just can’t pay” Lane M.

There are more than 3 things to know about a La Mesa short sale and your options. If you can’t pay your mortgage, please don’t ignore the problem. It is okay to ask for help and advice. Just remember that time is of the essence. Acting early allows you to make the decision that is best for you. Wait too long and your choices disappear. Call me, your La Mesa short sale specialist at 619-846-9249 for your confidential consultation or click here to request your free guide book.

 

April 10, 2013

What To Do When You Can’t Pay Your Mortgage

Posted by martikilby under mortgage, Mortgage delinquency | Tags: , , , , |
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Can’t Pay Your Mortgage?

 Image

If you find yourself waking up at 2 a.m., wondering how you’re going to pay your mortgage, you’re not alone.  Since the start of the Great Recession, thousands of people who never thought they’d be worried about money are struggling every month just to stay afloat.  Or, perhaps your home is now worth far less than what you owe and you wonder if it makes sense to continue to pay on negative equity.

Everyone’s situation is unique, and I certainly don’t profess to have all of the answers, but over the last four years I’ve been able to help many people find a solution to their mortgage woes.  I am not an accountant or a lawyer, so I certainly encourage you to consult the appropriate professional for answers to your specific questions.

I have written a short guide book that I would like to offer to you free of charge, with no obligation.  The guide book is designed to provide you with an overview of your different options so that you are in a better position to make the decision that’s right for you.  It begins with a one-page overview, followed by more in-depth discussion of the various options.  Click here to request your free guide, “What to Do When You Can’t Pay Your Mortgage”.

If you can’t pay your mortgage please don’t ignore the problem.   Chances are you won’t win the lottery, and your financial troubles are real.  As soon as you are 30 days late on your payment, the lender’s clock starts ticking.  There is help and you have several options.  Start by reviewing all of the information found at www.makinghomeaffordable.gov and call 888-995-HOPE (4673) to speak with a HUD approved housing counselor.  It is okay to ask for help and advice.  Just remember that time is of the essence.  Acting early allows you to make the decision that is best for you.  Wait too long and your choices disappear.

My real estate practice is in San Diego County.  Please don’t hesitate to contact me at 619-846-9249 if I can be of service to you.

What to Do When You Can’t Pay Your Mortgage

 

January 11, 2013

Freezing Temps in San Diego but Real Estate is Hot, Hot, Hot!

Posted by martikilby under Buying a Home, Interest rates, San Diego Home Values, Selling your home | Tags: , , , |
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Okay, I admit to being a total wimp when it comes to cold weather. Waking-up to frost on the roofs and going out for a walk with gloves and a hat is not my favorite part of living in San Diego in January. But I have to tell you that my heart is warmed as soon as I turn on my computer, look at my emails, my transactions, and the MLS and realize that the San Diego real estate market is hot, hot, hot!

This is due to 4 primary factors:

1) Employment in the County in October was up by 1.9% over October 2011*
2) Consumer confidence (Pacific West) is up by 36%*
3) Interest rates remain at record lows
4) Inventory is approximately 50% of what it was a year ago*

The lack of homes to sell in San Diego County is clearly illustrated in these two graphs, which show unsold inventory at lowest point since 2005, and that homes in the $750 – $1000K range are the most scarce. However, as there are fewer people able to buy in that range the impact is less dramatic. The price range where we are feeling the greatest impact is the $300 – $500K range. If you’re a seller, you love it as you will likely have multiple offers within days of listing. If you’re a buyer, not so much, as it’s likely you’ll be in a bidding war with several cash buyers.

unsold inventory 10.12 sm

unsold inventory 2 10.12 sm

This of course has driven down the length of time homes stay on the market from approximately 60 days in January of last year to just 40 days in October.

time on market10.12 hero 2

The net result of all these factors is that prices in the San Diego real estate market are increasing at a steady rate, up 10.7% this October, over October 2011.

Median price 12

So is it a good time to buy or sell in San Diego? Absolutely! Barring any economic catastrophe I believe we’ll continue to see a strengthening real estate market throughout 2013. So if you’ve been considering a real estate investment, best to get in the game now as I predict prices will continue to rise. Please give me a call to discuss the opportunities available in America’s Finest City!

* Graphs and statistics courtesy of the California Association of Realtors®. All statistics reflect sales activity for detached homes.

 

December 19, 2012

Is Bank of America Writing Their Own Rules, Again?

Posted by martikilby under Bank of America, Experienced Short Sale Realtor, Short Sale, Short Sale Negotiation | Tags: , , , , |
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For any real estate professional negotiating a short sale, the moment you receive that magical approval letter there is usually a sense of celebration and relief. Not so on Monday when I received an approval letter for a standard short sale I am negotiating for another agent in my brokerage.

All of the terms looked fine, EXCEPT there was no allowance for relocation assistance. This is a Freddie Mac loan serviced by Bank of America that I am managing through the Equator platform, so I messaged back immediately. Money for relocation assistance has been an expectation since day one of the short sale process as the homeowner is a single mom with four children under the age of eleven who is currently off the job and receives disability as her only source of income. If anyone ever needed help with the expenses of moving, it is this poor woman!

The reply back from B of A was that the “borrower did not meet the investor guidelines for relocation assistance.” Are you kidding me? She is penniless! So I requested further clarification regarding the specific guidelines. I was told that “any borrower with a loan with MI (mortgage insurance) is automatically disqualified from receiving relocation assistance.”

Does that make ANY sense? I scoured the Internet and contacted a couple of fellow brokers who are short sale experts and no one could find anything to support this “rule”. In fact, everything I discovered supports that fact that as of 11/1/12 Freddie Mac would pay up to $3000 for relocation assistance, with no mention of an MI exception.

So yesterday morning I called Freddie Mac directly. They were incredibly responsive and helpful. The gentleman I spoke with put me on hold for quite a while as he researched the question, finally coming back on the line to tell me that he needed some additional time to investigate and would get back to me before 5:00 pm. At 4:45 he called to report that in all of his inquiries, no one he spoke with at Freddie Mac could find any reason why MI would disqualify a borrower from receiving relocation assistance. So Freddie Mac has opened an internal investigation to determine if the ruling by Bank of America is within guidelines or if they have overstepped the limits of their authority by denying relocation assistance. Ha!

I was told it might take up to a month to receive results of the investigation, but I feel better knowing that we are doing everything we can to help get our client the money she so desperately needs. And I have to admit it felt pretty good to have my hunch regarding this rule, somewhat vindicated by a giant like Freddie Mac. I’ll be letting Bank of America know about the investigation this morning 🙂

I guess that if it just seems wrong, it never hurts to question.

 

October 9, 2012

Will HAFA II Make Short Sales Easier?

Posted by martikilby under Experienced Short Sale Realtor, Fannie Mae, HAFA, Short Sale, Underwater homes | Tags: , , , , , , , , |
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Effective November 1, 2012, there are new guidelines for all Fannie Mae and Freddie Mac short sales.  The new program, dubbed the Standard Short Sale /HAFA II requires Fannie and Freddie servicers to manage short sales under one uniform process.  It is anticipated that this new streamlined process will make short sales faster, easier and more accessible to underwater borrowers.   Under the new program:

  • Homeowners do not need to be delinquent on their mortgage payments if they meet other hardship criteria.
  • Deficiency judgments will be waived in exchange for a cash contribution from certain qualified homeowners.
  • Military personnel who are relocated will automatically be eligible.
  • Up to $6,000 will be offered to  2nd lien holders to speed the process.

The new hardship criterion includes:

  • Death of a borrower or  co-borrower
  • Divorce
  • Unemployment
  • Disability
  • Relocation for a job

The good news is that this program should allow more homeowners to participate in a short sale and get out of a negative equity situation, even if they are not delinquent on their mortgage.  The bad news is that even with no missed payments; their credit will suffer as they will have settled their mortgage debt for less than the amount owed.  In the world of credit reporting, a short sale is a short sale, whether or not there was ever a missed payment or a Notice of Default recorded.

Overall, HAFA II should allow more homeowners to take advantage of a short sale and standardized processing can’t help but improve the whole experience for everyone involved.  As a Realtor who lists and negotiates short sales, I welcome anything that will streamline the often cumbersome and lengthy process.

If you live in San Diego County and are considering a short sale, or if you’re an agent looking to out-source negotiation, please call me for a confidential no-obligation consultation.

 

July 26, 2012

The Clock is Ticking on Short Sale Debt Tax Forgiveness

Posted by martikilby under mortgage | Tags: , , , |
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If you are upside down and owe more than your home is worth, you have probably considered a short sale.  In a short sale, the lender allows you to sell your home for less than what is owed and your debt is cancelled.  Prior to 2007 however the amount not re-paid to the lender was taxable income, which created a huge hardship for homeowners seeking relief from high mortgages.

In 2007 congress enacted the Mortgage Debt Relief Act which generally allows taxpayers to exclude income from the discharge of debt on their principal residence. This includes debt reduced through loan modification and short sale, as well as mortgage debt forgiven in connection with a foreclosure.  This act has allowed thousands of underwater homeowners to sell their homes without fear of tax consequences.

The clock is ticking however, as the Mortgage Debt Relief Act was a piece of special legislation designed as a short-term fix to help alleviate some of the problems created by the collapse of the housing market.  It will expire on December 31 of this year, and it is unclear whether or not it will be extended.

So, if you are considering a short sale, the time to act is NOW if you hope to avoid being taxed on the unpaid balance owed.  A short sale takes anywhere from 60 days to several months, so with 5 months left in 2012 the time is right to still get your short sale completed before the end of the year.

For a free, no-obligation consultation, please give us a call.  Our success rate listing and negotiating short sales is over 95% and we are happy to supply references.  We are not a huge, impersonal office of paper-pushers and we deal with each client on a personal basis, making sure we address your individual needs and situation.  Please call Steele Group Realty Broker/Owner Marti Kilby at 619-846-9249.

 

June 7, 2012

More Short Sale BS with Bank of America

Posted by martikilby under Bank of America, Short Sale Negotiation, VA loans | Tags: , , , |
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Well they’ve done it again.  B of A has figured out one more way to stall a deal, and waste the time and money of all parties.  I’m furious.

We have an approved Bank of America short sale that is currently in escrow and scheduled to close on June 20th.  The only condition for final loan approval for the buyers is an IRS form 4506T, which basically just confirms that their tax return has been received and processed.  The buyers have checked with the IRS, and it appears that their 2011 return has not yet been processed so the 4506T probably won’t be issued in time to close on the 20th.

I asked Bank of America for a 10 day extension and was told that they don’t allow extensions on VA short sales and that if we don’t close on time we must start the entire process all over!!  From the very beginning!  This means re-submitting the seller’s financial information, listing agreement, and offer to purchase and then waiting to be assigned a negotiator.  The VA would then order another appraisal and we would again wait for approval. The entire process will take at least 2-3 months.  All of this extra effort and wasted money because they won’t extend our closing date for 10 lousy days!

And of course during this process, there is no guarantee that our buyers won’t get frustrated and just walk away…..how can anyone run a business like this???

 

May 31, 2012

I Love the House! How Much Should I Offer?

Posted by martikilby under Buying a Home, Realtor, San Diego Home Values | Tags: , , , , , |
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You’ve found THE house and you’re ready to take the big step and write an offer.  But what is the right price?  Should you start low or come in at full price?  Should you offer more than asking price to seal the deal?

Determining the best offer price is based on a variety of factors, the first being the price of comparable properties.  Your Realtor will research sales and current listings, usually going back no more than 6 months.  She will try to find homes that have a similar number of bedrooms and baths and square footage.   She will also look for properties in the same or similar neighborhood of the same age.  Other factors she will consider might be upgrades and amenities, such as a remodeled kitchen or swimming pool, or view.  The more like the home you hope to buy, the better the comps.

Reviewing the prices of the comparable sales and listings will usually give you a reasonable price range.  The next step in determining your offer price is to look at the condition of the home.  If there are obvious repairs needed, such as new carpet or paint your offer price might be at the lower end of the price range for the comps.  On the other hand, if the home is in move-in condition or has other outstanding features or upgrades, your offer price should be closer to the top end of the range.

Another important factor is the competition.  How long has the home been on the market?  How long were the comps on the market?  Are you competing against other offers?  Is there a scarcity or over-supply of similar homes in this price range?  As with any commodity supply and demand are important factors in determining price.

And finally there is an emotional component.  If this truly is your dream home and you can’t bear the thought of having your offer rejected, you might be inclined to offer above the asking price and even above the comps.  Just be aware that if you are getting a mortgage on the property and it doesn’t appraise as high as you are willing to pay, the difference will most likely have to come out of your pocket.  You should also be cautious about buying at the top of your personal price range or depleting your savings as it will be difficult to enjoy your dream home if you’re house poor.

As I noted in a post earlier this year price isn’t everything when it comes to getting your offer accepted, but it is the most important factor.  Work closely with your Realtor; listen to her guidance, ask questions and carefully weigh all of the factors.  In the end the decision is yours so please, do everyone a favor and don’t waste time with a ridiculously low offer!  If you want the house, bid like you mean it…you might not get another chance!

 

May 30, 2012

Wells Fargo Incompetence Spells F*O*R*E*C*L*O*S*U*R*E*

Posted by martikilby under Short Sale Negotiation, Wells Fargo | Tags: , , , , |
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Wells Fargo Incompetence Spells F*O*R*E*C*L*O*S*U*R*E*

 

I am livid.  Seeing red, as they say.  Here’s the short version:

  • Steele Group Realty took a short sale listing  because the sellers were in a loan modification program, but the husband was still unable to get a job, so the payments were not possible.  They listed as a short sale on 5/11 with  a scheduled foreclosure sale date of 5/30.
  • All seller documentation was submitted on 5/16.
  • 5/23 an executed offer with a full price, market  value offer was submitted.
  • Offer was uploaded into the Wells Fargo system by an employee who labeled the file “Customer Correspondence”.
  • 5/25 – 5/30 I am in contact with Wells Fargo short sale and foreclosure department nearly every hour to obtain a  postponement of sale date.  I made  sure that the review of the file by the short sale set-up department was  escalated.  Once they approved that this was indeed a viable short sale offer, the foreclosure would be  postponed.
  • 5/29 a processor in the short sale set-up  department reviewed the file, and did not see a file labeled “Offer”  in their imaging system, despite the fact that I had already confirmed with supervisors that the offer and all supporting documents were there.
  • 5/29 the processor who was apparently unwilling,  to look through all of the files, no matter how they were labeled,  determined that there was no offer and therefore declined the short sale option and approved the foreclosure.
  • House went to sale this morning at10:30 a.m.

I honestly can’t get over the failure of this system.  I have been on the phone since 7:00 a.m.this morning, trying to push through another review….to no avail.

This is just wrong, on every level.  Had the file been correctly labeled originally this would be a different outcome. Had the person in the set-up department taken an extra five minutes and reviewed all files, this would be a different outcome.

Buyers and sellers are devastated.  I spent hours and hours, and everyone loses, even Wells Fargo, who will now have to pay to re-market the property.  Stupid, stupid, stupid.  A clerical error by a non-decision maker has changed the lives and business outcomes of many. There is no excuse for this level of incompetence in my book.   I have never lost a short sale and this doesn’t sit well.

 

May 25, 2012

Taste of La Mesa

Posted by martikilby under La Mesa CA | Tags: , , |
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La   Mesa is one of San Diego County’s best kept secrets! Easy access to major freeways, charming downtown village and some great restaurants.  This year, to celebrate La Mesa‘s 100th anniversary, the 4th Annual Taste of La Mesa – Taste of the Century will include expanded venue & restaurants! Eat your heart out with tastings from 30 local restaurants! Tickets are on sale now!

DATE: Monday, June 11, 2012

Time: 5:00pm to 8:00pm
VIP Tasting: 5:00 – 6:00pm
(VIP Tasting continues through 8pm)
General Admission: 6:00 – 8:00pm

Where:
La Mesa Community Center
4975 Memorial Drive
La Mesa, CA 91942

Cost:
General Admission: $35 (6 – 8 pm)
VIP Ticket: $50 (5 – 8 pm)
VIP opportunity includes “Up Close & Personal” tasting with our food vendors, restaurants and beverage providers exclusively between 5 – 6 p.m. VIP Ticket(s) includes “Preferred Parking.”

Beverages: Pricing does NOT include beverages. Alcoholic beverages may be purchased for $5.00 per glass.

For information about purchasing tickets and to see a list of the participating restaurants, click here.  Bon appétit!

 

To learn more about some of the great homes available in La Mesa, just give me a call!

 

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