I’m Doing A Short Sale, Can My Lender Take My Retirement?

I’m Doing A Short Sale, Can My Lender Take My Retirement?

One of the top questions we get asked is what happens to the retirement accounts when doing a short sale? Here is the info:

401ks, 403bs and Pensions

Your lender is not permitted to “raid” or liquidate employer-sponsored 401k, 403b or pension plans thanks to ERISA, the Employee Retirement Income Security Act. In fact, other than the IRS or former spouses, these accounts are protected from all creditors. It is never considered advisable to liquidate or borrow against your retirement savings to save your home. If you recently rolled over money from an employer-sponsored plan into an IRA, that money is protected as well. Be sure to save your account statements that show the rollover.

For more information about short sales please ask for Kristine Halverson of Prudential at 310-737-8173


Top Question Asked When Buying A Short Sale, Who Pays For Closing Costs?

Buyers and sellers want to know who pays the closing costs in a short sale? As a buyer you want to ask your agent this question before you write an offer. The best time to ask it is during your first meeting. In a short sale all terms, conditions and closing costs are subject to lender approval. Sounds pretty vague, right?
Let me tell you what closing costs you should ask for when writing a contract. Then I will tell you what they actually pay.

Buyer should ask the Seller to pay:

  • Sellers escrow fees
  • Sellers title insurance
  • Property taxes-including any back taxes
  • County taxes
  • City Required Reports
  • Retrofitting
  • Natural Hazard Disclosure
  • Termite Report & Repairs
  • Home Warranty
  • HOA transfer fee
  • HOA documents
  • HOA back dues if any

Here is what the seller’s lender typically approves to pay:

  • Sellers escrow fees
  • Sellers title insurance
  • Property taxes-including any back taxes
  • County taxes
  • Natural Hazard Disclosure (Sometimes)
  • Termite Report & Repairs (Credits)
  • HOA back dues if any (Sometimes)

Each lender is different and has their own policies on what they are approved to pay. That’s why it’s a good idea to ask for these closing costs to be paid. Keep in mind that short sales are a great opportunity to get a discount on a property. Chances are some of the closing costs will not be paid. So be prepared when you receive the lender approval for your offer, all the fees might not be covered by the Seller and their lender.
For more information on selling or buying short sales, contact Kristine with Prudential CA Realty, Santa Monica -Short Sale Specialist,  310-737-8173.

How Can a California Short Sale Specialist Help Troubled Homeowners?

How Can a California Short Sale Specialist Help Troubled Homeowners?

Even with moving assistance and financial aid packages starting to pour in from banks, there are still hundreds or even thousands of homeowners who won’t qualify for such help and are thus in dire need of the services of a Santa Monica short sale specialist. Some time ago, the courts have ordered a number of banking corporations to offer additional financial aid – or even return deeds to previously foreclosed homes – to homeowners who have been wrongfully evicted from their properties.

If, however, you are only in the brink of foreclosure then such financial aid packages are not yours to enjoy. There is still a good chance that your bank or creditor would seize your property and foreclose it if you don’t take proper precautionary measures ahead of time. One such measure would be to approach a California short sale specialist and get him or her to help you.
Are Short Sales the Ultimate Solution?
Unfortunately, not all homeowners would be considered eligible for short sales. The conditions vary from one creditor to another. Ultimately, however, you or – more specifically – your Santa Monica short sale specialist would have to prove that it’s to everyone’s benefit that you are allowed to short sell your home as soon as possible.
What Do Short Sales Entail?
Let’s say that your house in Santa Monica may be sold today at $1,000,000. Unfortunately, your home used to be worth $1,20,000 and in fact you have mortgaged it to the hilt and thus owe the bank $1,200,000. Obviously, it would be pretty impossible for you to sell your home at its original price. But if you sell your home based on its current market value, then that would mean losing about $200,000 in the process.

  • $1,200,000 Original value of your home or the amount of your mortgage balance
  • $1,000,000 Present market value of your home
  • $200,000 Negative balance if you sell your home at its present market value

This won’t be that big a problem if you fully own your property and it’s not encumbered in any way. Although you are losing $200,000 technically, it’s not something that would significantly hurt your finances.
But it’s different if you owe $1,200,000 on your home and are no longer able to keep up with mortgage payments. To prevent foreclosure and an unwanted blemish on your credit record, you would need to sell the home. But even if you do sell it, you would still be left with a $200,000 debt you can’t pay.
Now, this is the part where a Santa Monica short sale specialist can step in and help you out.
A short sale specialist would do the following to ease your burden:

Prepare a short sale package to convince your creditor about the rightness of short selling your home
Find a buyer for your short sale home
Obtain the best possible post-short-sale condition for the remaining $200,000 balance of your mortgage
Expedite the process for selling your home to prevent foreclosure

Fore more information contact Kristine Halverson of Prudential CA Realty, at 310-737-8173

Short Sales in Santa Monica, More Streamlined?

Short Sales in Santa Monica, More Streamlined?

In April of this year, the Federal Housing Finance Agency (FHFA) set out new guidelines to Fannie Mae and Freddie Mac in order to streamline short sales in the hopes of helping borrowers and communities hard hit by the housing market decline.  These guidelines take effect in June.

The FHFA has directed Fannie Mae and Freddie Mac to develop enhanced and aligned strategies for facilitating short sales, deeds-in-lieu and deeds-for-lease in order to help more homeowners avoid foreclosure.  The changes coming in June set out new timelines for actions by mortgage servicers with regard to short sales.

The new requirements require a mortgage servicer to:

 

1.           Acknowledge receipt of a short sale offer within 3 day business days

 

2.           Notify a borrower within five business days if the information packet provided by the  borrower is incomplete.

 

3.           Review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer.

 

4.           Provide weekly status updates to the borrower if the short sale offer is still under review after 30 calendar days

 

5.           Make and communicate final decision to the borrower within 60 calendar days of receipt of the offer and complete borrower response package.

It is anticipated that additional enhancements regarding borrower eligibility and evaluation, documentation simplification, property valuation, fraud mitigation, payments to subordinate lien holders, and mortgage insurance will be out by the end of 2012.

As always, feel free to contact Kristine with any questions you may have, 310-737-8173

VIDEO: what is a short sale?

For more information about Santa Monica or Los Angeles short sales contact us at 310-737-8173

VIDEO: what is a short sale?

For more information about Santa Monica or Los Angeles short sales contact us at 310-737-8173

Neutra Troxell House, Pacific Palisades

 

It’s no secret this home is on the market. However,  before it was listed last year we were able to share it with you a month before it became available see the original post about the Neutra Troxell house when it was a pocket listing. It has been a over a year, and the price has been reduced $500,000. If you love Neutra, artful living, and ocean views this could be the home for you.

What is a pocket listing? Many times homeowners will have their Realtor market their home as a pocket listing.  It is a home or commercial building that is not listed publicly for sale. If you have scoured the market and still have not found a home you want to buy, ask your agent to look for pocket listings for you. We know of a few pocket listings, and are seeking more for our buyers.

If you’d like to know more about pocket listings, and how to find them; contact Kim at 310-737-8173

766 PASEO MIRAMAR, Pacific Palisades, CA 90272 (MLS # 11565909)

(all data current as of 3/27/2012)
Price $3,950,000
Beds 4
Baths 2 full, 1 half
Home size 3,044 sq ft
Lot Size 47,611 sq ft
Days on Market 139
Back on market. The Troxell House, a polished jewel, has been renovated and is a dream come true for the discriminating buyer. The four bedroom, two and a half bath post and beam structure has panoramic ocean, city and mountain views. The lap pool, which seems to float in the air, overlooks the Queens necklace. If you are a collector of fine things, an architectural buff, or a lucky person who wants to how this outstanding Richard Neutra architectural home, COME ON BY.

Property Type(s): Single Family, Residential

Last Updated 3/27/2012 Tract n/a
Year Built 1956 Community Pacific Palisades
Garage Spaces n/a County Los Angeles
Total Parking 3 Walk Score ® 52

Schools

Elementary School Marquez
Middle School Revere
High School Palisades

Additional Details

Building Size 3044 CARETS Listing Status Active
Total Floors 1 Bath Full 2
Bath Half 1 HOAFee1 0.0
Zoning LARE15 Carport Spaces Total 2
Covered Spaces Total 2 Parking Spaces Total 3
Will Consider Lease YN N Tax Parcel Number 4416019023

Features

Appliances Dishwasher, Dryer, Freezer, Garbage Disposal, Refrigerator, Washer
Bathroom Features Powder Room
Building Structure Style Architectural (N)
Common Walls Detached/No Common Walls
Cooking Appliances Microwave, Range, Range Hood
Cooling Type Central A/C
Eating Areas Breakfast Counter / Bar, Dining Area
Fireplace Rooms Living Room
Floor Material Carpet, Other
Heating Type Central Furnace
Laundry Locations Inside
Legal Disclosures Take Property As Is (N)
Listing Terms Cash To New Loan
ListingAgreement Exclusive Right To Sell/Lease
Lot Size Source Public Records
Parking Type Carport
Patio Features Patio Open
Pool Descriptions Heated, Private Pool
Possession CloseOfEscrow
Roofing Composition
Rooms LivingRoom
Sewer In Street (N)
Spa Descriptions None
SpecialConditions Standard Sale
Square Footage Source Public Records
View Any View, City Lights View, Mountain View, Ocean View

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with Kim Halverson DRE# 01761439, Prudential CA - Santa Monica

(view all details for MLS #11560737)

For a private showing or more information about selling your home, contact Kim Halverson of Prudential California Realty: 310-737-8173

Santa Monica California Condo Short Sale! North of Wilshire – 1144 10th St

North of Wilshire condo, South of Wilshire prices.

Walking distance to Santa Monica’s best restaurants; Santa Monica Seafood, Huckleberry, and Rustic Canyon. A personal favorite place is vintage car showroom: Cars With Class.  Six blocks to Santa Monica’s famous 3rd St Promenade, and ten blocks to Palisades Park. This condo is a front facing upper unit, sharing only one common wall. It is updated, all appliances are included, and you have a patio great for soaking up sunshine and ocean breezes.

To see this condo in person or to discuss short sales in Santa Monica. Contact Kristine at 310-737-8173

1144 10TH ST, Santa Monica, CA 90403 (MLS # 12576465)

(all data current as of 3/27/2012)
Price $507,000
Beds 2
Baths 2.0 baths
Home size 1,011 sq ft
Lot Size n/a
Days on Market 68
Turn-key condo, North of Whilshire, short distance to well-known restaurants. New kitchen cabinets, travertine back splash, granite counter tops, all stainless steel appliances, and stackable washer/dryer. Skylight in dining area. Newer bathrooms, granite countertops, travertine, and much more...Lots of storage. Hampton Bay fans in bedrooms, matte stainless door handles and pulls throughout. Low HOA dues which include water and basic cable.

Property Type(s): Condominium, Residential

Last Updated 1/30/2012 Tract n/a
Year Built 1963 Community Santa Monica
Garage Spaces n/a County Los Angeles
Total Parking n/a Walk Score ® 97

Additional Details

Building Size 1011 CARETS Listing Status Back Up Offer
Units Total In Complex 10 Total Floors 0
Unit Floor In Building 2 HOAFee1 256.73
Zoning SMR3YY Covered Spaces Total 1
Will Consider Lease YN N Tax Parcel Number 4281028100

Features

Appliances Dishwasher, Dryer, Garbage Disposal, Refrigerator, Washer
Association Amenities Controlled Access
Association Rules Call for Rules
Building Structure Style Traditional
Cooking Appliances Microwave, Range
Cooling Type Ceiling Fan(s), None
Eating Areas Breakfast Counter / Bar, Dining Area
Floor Material Carpet, Tile (N)
Heating Type Central Furnace
Laundry Locations Inside
Legal Disclosures No Property Assessments (N)
ListingAgreement Exclusive Right To Sell/Lease
Parking Type Community Garage
Pool Descriptions No Pool
Possession CloseOfEscrow
Rooms LivingRoom
Security Safety Gated Community
SpecialConditions Short Pay Subject to Lender
Square Footage Source Vendor Enhanced (N)
View No View

Location

Call Now: 310-737-8173

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