From the category archives:

Distressed Sales

Closing extension on $8K tax credit

July 1, 2010

Ratified a sale before April 30th but can’t close before June 30th to claim the federal 1st-time homebuyer tax credit? Well lucky you. Congress just approved an extension…and the President will likely sign the bill. Now you’ll have until September 30th, 2010 to close. This should be a relief to lots of buyers stuck in [...]

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Webinars on distressed sales

April 20, 2010

Yours truly has a shiny new credential. Yep, I’m SFR: Short Sales and Foreclosure Resource-certified, a designation of the National Association of Realtors meant to heighten agents’ knowledge of the distressed sales market. Much of the training material should be familiar to any agent who’s done short sales and foreclosures. But it also imparted some [...]

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CA tax policy change on forgiven mortgage debt

April 13, 2010

Yesterday, the Governor signed legislation to put California’s tax policy regarding forgiven mortgage debt in line with federal tax policy. This has huge implications for most sellers who recently sold their primary residences through short sales. Prior to the change, they were expected to pay state income tax related to the amount of debt that [...]

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Short sale scenario – surprise soft notes

February 11, 2010

The lienholder(s) have approved your short sale. You’re the seller. Escrow is due to close next week. At your signing appointment at the title company, there’s a big surprise: the lienholder(s) want you to sign a promissory note. “No way!” you say. Deal’s off. Buyers not happy. Six months of work down the tubes. It’s [...]

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Federal short sale solution

February 5, 2010

Here’s some more information about the federal Home Affordable Foreclosure Alternatives Program (HAFA) that will go into effect on April 5th. Will this be the answer to everyone’s short sale struggles?

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New policy to streamline short sales

January 14, 2010

So the Treasury Department announced the Home Affordable Foreclosure Alternatives Program (HAFA), which will take effect in early April and was created to incentivize lenders to streamline the short sale process. As much as I’d like to see it work, I’m skeptical that lenders would bite. Just ask any struggling homeowner trying to get a [...]

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Before offering on that flipped property

January 11, 2010

Buying with all cash? Then you can skip this one. (Or read on and learn what your competitors are facing.) Lots of property – especially in the outer burbs – are being offered by private investors who acquired them in foreclosure or pre-foreclosure. The problem facing buyers is that many lenders are refusing to loan [...]

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Short sale scenario – approved at $XYZ

December 18, 2009

A short sale listing posts the following hook: “Buyer backed out but bank has approved sale at $535,000.” You’re willing to offer that sum for the property. Importantly, you think that doing so will assure a swift entry into escrow – bypassing the usual time-consuming short sale headaches. But not so fast! Your agent must [...]

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Short sale scenario – 2nd lienholder payoff

November 15, 2009

Seller is doing a short sale. Two loans on the property. 1st lienholder agrees to a $5,000 payoff to the 2nd lienholder. 2nd lienholder wants a $9,000 payoff. Buyer agrees to pay 2nd lienholder the $4,000 difference. Knowing the 1st lienholder would object – and would want that $4,000 for itself – Buyer plots with [...]

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