Posted on January 28th, 2012 by Kimberley Kelly
Banks may be near a settlement
Banks and the President are nearing a deal. Only 25 billion from the banks to be distributed to “Rob-signed” Foreclosure victims. That doesn’t seem like much when you have lost your home, but it’s SOMETHING. Don’t think the banks are getting off that lightly however. There are still 12 areas that they can be pursued for..
Banks are still Liable for..
It remains to be seen how litigious this all becomes, but after years of this, at least there’s a plan it seems..and it’s getting closer to being signed.
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Posted on January 26th, 2012 by Kimberley Kelly
Polo is on a shutdown until 2/15.
A terrible thing has happened to our polo industry in the Coachella Valley..a mutant respiratory virus. One horse had it and was put down, but unfortunatley, we are all worried and under lock down until the incubation period is over. 21 days or until 2/15. Very scary. My horses are at Empire. We are all on the watch and being careful and conscientious. Hopefully, no other horses will be infected.
Description of the situation..
Keep your fingers crossed!
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Posted on January 23rd, 2012 by Kimberley Kelly
One of the first things my Short Sale Clients ask me is, “How does the Deficiency work?” What they mean as a Short Sale Seller is, “Am I going to be sued for the deficiency by my Lender?
In a word, “no!”
The year of 2011 saw a very spescific change to the anti-deficiency law for the state of California. Section 580e of the California Code of Civil Procedure came into effect on Jan. 1. This law generally prohibited a FIRST TRUST DEED LENDER from obtaining a deficiency judgment. This law applied to 1-4 residential units.
Then on July 15, 2011 a bill was introduced that greatly broadened the powers of section 580e.
Now section 580e covers many types of mortgage loans for 1-4 residential units, including..
- Purchase Money
- Rate and term refinance
- Cash-out refinance,
- owner occupied
- rental
- second home or vacation home
(This Law has it’s exceptions! Other types of liens such as judgment liens, tax liens, or HOA liens are NOT exempt from deficiency pursuit by the note holders!)
WOW! Lots of encouragement from the Government to do a Short Sale instead of a Foreclosure.
So..you are protected from the second lien holder pursuit as well now. Your Lender may NOT..
- collect a deficiency
- have a borrower owe a deficiency
- request a deficiency judgment
- require a borrower to pay to get a short sale approved
- require a borrower to waive their rights
Tips:
Sellers: Although a Short Sale Lender cannot demand you contribute to get your short sale done, you may offer to pay something to get a deal to work.
Buyers: Carefully consider before you write your offer, HOW MUCH money a Lender is being asked to write off. Sometimes, if a Lender has to write off a huge deficiency, they COULD choose to not do a Short Sale and pursue their other options. Not a huge likelihood in California..but think about it.
CAR Short Sale Deficiency Fact Sheet
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Posted on January 22nd, 2012 by Kimberley Kelly
Don't cover your eyes and run from that Short Sale..it's not that bad!
I want to do a Short Sale..but what do I do first?
1. Consult your CPA or Tax Advisor absolutely first. You need to know if the 1099 you will receive next year for the forgiven debt as Income is going to affect you. If you are in California and the loan is a Purchase Money Loan (PML), the Debt Forgiveness Act should cover this debt. But…ALWAYS consult your tax advisors first. The Debt Forgiveness Act expires 12/31/12 so get on with it!
2. Call your Lender and tell them you are considering a Short Sale. Some Lenders are actually working with you! If you are not delinquent they can still allow a Short Sale, thereby diluting the credit hit. However..remember that their job is to get more payments out of you, so listen to them and get everything in writing. Each Lender is different,
3. Hire a GREAT Short Sale Listing Agent. Take your time here. Talk to the List Agent and get their feedback on the process, your Lender, potential timeline etc.
4. Be prepared to put together a pile of documentation. Start gathering everything your List Agent says you’ll need..NOW.
- Last 2 years tax returns
- Most recent 2 months pay stubs
- Bank Statements..all and complete
- Copy of your mortgage stub
- Copy of HOA stub
- Any Liens that may be out there..IRS, or personal
- Hardship Letter (Your List Agent can help with this)
That’s about it. It’s not HARD. It’s tedious, but once the documents are gathered, the home is listed, an offer comes in that is RIGHT, the process is handed over to your List Agent. Your should be updated weekly. Just be sure to ALWAYS supply any updated documents that may be required during the process.
Short Sales are smooth sailing now compared to 4 or 5 years ago. Don’t let all the doom and gloom stories scare you. If it’s the best move for you..take it!
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Posted on January 20th, 2012 by Kimberley Kelly
Vancouver, Canada has plenty of La Quinta buyers
According to this article from the New York Times, stating that housing starts rose in the 4th quarter of 2011, and permits are being pulled for homes in 2012..it is!
These charts show that only 444,000 homes were actually built last year. With the population growth, that was incredibly small..you have to go way back to 1959 to even come close. Are Builders feeling more confident? There are still plenty of vacant homes sitting around, but many of them need re-habbing before they can be lived in. Others are being snatched up by first timers because Lenders are starting to lend again! Wahoo!
La Quinta is on fire and so is much of the rest of the Palm Springs Valley. That fire is MUCH more affordable this time around and buyers are MUCH more realistic about their prospects for profits. Nothing like the 20% run up in a single year in La Quinta that happened during the boom years.
It’s a great time to buy in the Palm Springs area!
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Posted on January 19th, 2012 by Kimberley Kelly
Lak Cahuilla
I have been really busy in La Quinta. Buyers from all over..Canada, Orange County, La Quinta itself, France..all buying in the beautiful city of La Quinta. The numbers of Foreclosures available have dropped dramatically..and the numbers of buyers have increased. So??? Consequently, the price/sf is going up! Not huge jumps, but definately going up since last year.
That is due to the Realty Trac report…
Palm Springs area Foreclosure numbers dropped dramatically in December of 2011.
1. Holiday Moratorium
2. More Loan Mods being approved
3. More Short Sales being CLOSED.
These are good indicators and should help keep Foreclosure numbers at a level where buyers can continue to buy them and get them off the market quickly. Great news for our beautiful desert.
La Quinta Foreclosure numbers for December:
- There was a total of only 121 Foreclosure on the market.
- A drop of 30.5% ! That’s HUGE!
Buyers are investors still of course, but first time home buyers are now pressuring Investors! First time buyers can now afford the prices and pay cash many times..or..they have great loans in place. FHA, Freddie Home Path properties with their first look initiatives..all good for buyers in La Quinta, one of the desert’s most beautiful cities.
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Posted on January 17th, 2012 by Kimberley Kelly
No matter the price range; if you're going to Short Sale, do it in 2012!
The Debt Forgiveness Act which relieves Short Sale Sellers from paying Income taxes on their forgiven debt is set to expire at the end of 2012. I am hoping this Law is extended. If not, there will be even more Foreclosures..just when we are starting to see Stability in the La Quinta and Palm Springs area housing markets.
Debt Forgivenss Act explained
If you are underwater on your mortgage and considering a Short Sale, get it listed NOW! Your final closing HUD must be dated no later than 12/31/2012 to qualify for your debt forgiveness. Consult your CPA, then get your property listed and CLOSED in 2012! Don’t wait and take a chance!
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Posted on January 13th, 2012 by Kimberley Kelly
Hiking in the La Quinta Cove
The La Quinta Cove is selling like nuts. I live here so I can undersand it. The location is fantastic..just South of Old Town La Quinta and the La Quinta Resort and Spa Hotel, and surround on three sides with spectacular mountains! Hiking, biking, walking, strolling, bird-watching or just star gazing..the Cove offers it all. Best of all…no HOA’s!
The La Quinta Cove received a great write up yesterday in the Desert Sun. Worth a read if you’re interested in buying a home in La Quinta. The Cove has alot to offer.
Just last year, the Cove was selling well, and we had a fair share of Foreclosures and Short Sales to choose between for those Investors and bargain hunters..not so much in the last quarter of 2011 and now heading into 2012. I’ve submitted offers and been outbid on my last two! The homes are being up bid from $100/sf to $110-$115/sf for nice homes, without pools, in good locations!
The La Quinta Cove and City of La Quinta in general is stabilizing more and more each season. Take a drive through the Cove and you’ll see what all the activity is about..
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Posted on January 12th, 2012 by Kimberley Kelly
APPROVED! Set to close in February
Received final approval letter for this Short Sale with Bank of America. Should have been a slam dunk because it’s a primary residence, verified hardship, only one PML loan..nothing to slow us down, right? Well..mostly. Then we got a BPO agent that turned in a very high BPO..about $100,000 over Fair Market Value. My first two buyers walked because the Investors were just not ready to hear the reality of the prices on this particular street in this particular development…
With my third buyer came a sane negotiator. He tried to tell me my offer was low again, but then he reviewed my supporting docs, talked to me several times..and agreed with me! He submitted our offer to the Investors and we got approval the next day. Perserverance is key..along with an experienced List Agent. COE is scheduled for February..
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Posted on January 9th, 2012 by Kimberley Kelly
La Quinta riding trails
Short Sale Stats for La Quinta, California. Short Sales in the City of La Quinta are trending down. The total numbers being listed for sale has dropped significantly over the past 10 months. Let’s take a look at the Statistics for La Quinta Short Sales starting in October, 2010 and ending in December 2011.
Homes Listed for Sale:
October, 2010 saw a peak of 160 homes Listed as Short Sales in La Quinta. November and December, 2010 hovered at approx. 143 homes total to finish out 2010. Then January, 2011 saw an increase to 150 Short Sales listed, but since then, every month continues to see a drop in total listings. Feb, Mar, April, 2011 saw approx. 120 homes listed. By May, La Quinta only had 111 homes listed as Short Sales. June and July saw a dramatic drop to 95 homes listed, August and September dropped anotehr 10 to 85. November and December of 2011 saw an even steeper drop in total Short Sales listed..only 57 were listed in December!
Short Sales CLOSED:
As the numbers of Short Sale listings dropped, the CLOSED short sale numbers have remained about the same. Meaning..there is a higher % of Listed Short Sales actually closing month over month.
In October of 2010 there were 160 total listed and only 22 closed.
In December 2011 when there were only 57 listed total, but 25 of those CLOSED! That’s a remarkable improvement in % of Closed Short Sales.
Two things to take away..
1. There are less Short Sales being listed in La Quinta.
2. Of the homes being listed as Short Sales, there are approx. 50% of them getting closed.
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