Archive September 2011
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Short Sales Protect Owners
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Blog Category: Real
Estate Nitty Gritty
Listen up! This announcement applies to every California upside-down homeowner that refinanced since they purchased their home, and every upside-down investor that purchased or refinanced a home or 1-4 units.
It used to be: If the owner refinanced his home, or the property was an investment (1-4 units), the owners were on the hook to pay the deficiency if the lender decided to sue them for it. (deficiency: the difference between what is owed on the loan(s) and what the lender(s) receive(s) as payoff).
NOW: On July 15, 2011, CA legislature enacted a new law protecting homeowners and investors against deficiency liability after a short sale in California. Note that this law applies only to single family homes and 1-4 units. And this law does NOT change the deficiency liability of owners if the property goes to foreclosure. The old rules still apply.
So in general (please call us for exceptions), homeowners that refinanced and INVESTORS that bought or refinanced after purchase are now NOT liable for deficiency IF they sell the property short. They can still be liable for deficiency if they go through foreclosure as they were before.
Prediction: Watch the for the coming boom in short sales! If you thought 35% short sale market share was high (Jan 2011), short sale market share will probably skyrocket before this mess is over
Please contact us to help determine your specific situation. We care about you and want to be sure you’re off the hook. We also provide very private solutions to short sales, and do everything we can to reduce your stress and even keep you in your home if possible.
CJ Holmes, real estate investor since 1977, broker since 2005, and market analyst since 2007, has personally handled hundreds of transactions, viewed thousands of properties, and dealt with countless agents. She also owns a portfolio of income producing properties, and has developed unique market analyses to determine and predict price trends, which principles apply to markets nationwide. She can be contacted at (707) 578-5727, cjholmes@cjholmes.com, or www.cjholmes.com
Improved Exit Plan Shopping
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The best investors in real estate always work the deal backwards. That may sound rather strange, but if you don't know where you want to end up, how can you start doing something and be sure you'll end up there?
I call it the "Exit Plan": figuring out first what results are desired, and when are they desired, and what it will take to get them.
Before a smart investor buys a property, the following questions are carefully considered and reliably answered ideally mirroring reality as close as possible. Only then is it likely the investment will achieve the desired results.
Below are some key questions necessary for a solid Exit Plan:
1. What final results are desired?
2. How long will it take to get these results?
3. What will it cost to get these results?
4. What is a reasonable exit price?
Unrealistic answers to these questions have tripped up lots of investors, causing losses instead of the desired gains. It is imperative investors work closely with those experienced in each aspect of investing, to get as reliable answers as possible to each of these questions.
After the answers are determined, then an investor will better know what the property must be purchased for to achieve the desired results.
CJ Holmes, real estate investor since 1977, broker since 2005, and market analyst since 2007, has personally handled hundreds of transactions, viewed thousands of properties, and dealt with countless agents. She also owns a portfolio of income producing properties, and has developed unique market analyses to determine and predict price trends, which principles apply to markets nationwide. She can be contacted at (707) 578-5727, cjholmes@cjholmes.com, or www.cjholmes.com
