If you need more help, you’ll find links to state laws and even forms. There are many decisions that we make in our day-to-day family life that have potential legal issues and ramifications that we should understand. http://family.findlaw.com
1. Renegotiate: A) Forbearance Agreement – You must have a job and 3% equity in your home.
B) Loan Modification – Unpaid payments and late fees are tacked on to the end of the loan. You must have a job and 3% equity in your home.
2. Refinance: IF 90 days in arrears, it is very difficult. Reads next to impossible!
3. FISBO/Investor: Investor needs at least 30% discount off current market value of property.
4. Declares Bankruptcy: 95% of homeowners who declare BK still lose their home through foreclosure! Then you have BOTH foreclosure and bankruptcy on your credit record. Additionally, 2-4 years after discharge before you will be able to buy a new home.
5. Friends/Family/Lotto: It could happen! Most friends and family members aren’t interested in helping out at this point.
6. Deed in Lieu of Foreclosure: Still shows up as foreclosure on credit reports. (Just no judgment. Quick results for the lender.)
7. Do Nothing: Not a good option! Foreclosure means you will have 5-7 years before you can buy a home through conventional lenders.
8. Lease Option with Buy Back: Investor buys at 30% discount. (Short Sale) You lease property back from Investor.
9. List property for sale with RE Broker: Can prevent Deficiency Judgment.
Deficiency Judgment: Lender can come after you. Short Sale can come after you too. (Anything but Term Life Insurance.) Lender can go after your IRA’s, 401K’s etc.
“After all is said and done, more is said than done.”
– Aesop
Silicon Valley Still Good Market, Realtors Just Need to Bring Information to Buyers
Despite reports that Bay Area home sales are at their slowest pace in 15 years, many markets in the area are doing well and now is actually a good time to buy a home, California Association of REALTORS® President Colleen Badagliacco told SILVAR members at Monday’s Menlo Park/Atherton District Meeting.
“Bad news gets eyeballs. … It’s turned out to be a media cycle drama and Realtors just have to have a conversation with consumers and bring the numbers and information to them,” Badagliacco said.
While there are areas in the state that are experiencing a downturn in home sales, Badagliacco said Northern California, particularly Silicon Valley, is actually leading California’s housing market. Only a relatively small portion of Silicon Valley is affected by subprime lending problems and foreclosures, compared with the rest of the state, she said.
Badagliacco noted, unlike the economic slump in the 1990s, where the state experienced massive job losses, “the bottom line is that we are adding jobs and the economy is strong. We know that things are not that bad in Northern California.”
The demand for housing is still strong overall in California, but negative news about the housing industry has intensified market uncertainty, forcing more buyers, sellers and lenders to the sidelines, said C.A.R.’s president.
Badagliacco said the market continues to have four strong groups of buyers: seniors, who have a long history of buying homes and are in the market to sell their homes, buy new homes and perhaps downsize; the boomers, who have a strong history with real estate, have lots of money and are seeking secondary homes for investment or vacation purposes; and Generation X and Y, who have seen the market go straight up, but are hesitant to make an investment.
“This is a time to have a conversation with Generation X and Y,” Badagliacco told SILVAR members. “Real estate is an excellent investment, but if you plan to flip the house in a few months, maybe you ought to rethink your strategy. As rents increase, you need to take a closer look at the renting versus buying equation. If you can save and build some equity, you should take advantage of the softer market.”
Badagliacco also advised Realtors to use this time to improve their skills and become more astute with new technology and the Internet, upon which Generation X and Y rely. She said Realtors would do well by establishing interactive Web sites, utilizing online transaction management, PDAs and other up-to-date technological equipment.
“As the world continues to change, when the market turns, who are your best buyers? Generation X and Y, the first-time home buyers and the second home buyers,” said Badagliacco. “You have got to be able to move ahead – even if we’re in a slow market, by upgrading yourself, so you can bring value to your clients and be ready to provide that information for the next generation.”
Realtors need to move forward and learn new technology, she stressed. “Do not be afraid of it; embrace it. Be open to it and the higher the trust level you will have, and you will be ready for the next home buyer who is just sitting there waiting.”
Badagliacco recommended the following readings: Wikinomics by Don Tapscott and Satisfaction by J.D. Powers.
