Short sales are on the rise in the California Bay Area including Fremont and surrounding cities. Help is here for short sale sellers but be ware of predators looking to take advantage of a bad situation.

Legitimate short sale contacts exist who are ready to help if you qualify for the short sale programs.

Just a tips and beware of ……………

• Asks for money upfront before providing any service
• Instructs you not to contact your lender, lawyer, housing
counselor, family, friends, or others
• Asks for mortgage payments to be made directly to his or her
company or a bank account set up by that person, rather than
your lender.
• Requires payment only in the form of cash, cashier’s check,
or wire transfer
• Promises to stop the foreclosure process, no matter the
circumstances
• Advises you to transfer your property deed or title to his or
her company
• Offers to fill out paperwork for you
• Asks for something to be done immediately and without delay.
This includes pressuring you into signing paperwork that you
have not had the chance to read thoroughly or do not fully
understand
• Encourages you to lease your house and buy it back
over time
• Offers to buy your house for a fixed price that is not set by the
housing market at the time of sale
• Asks for you to give a power of attorney
• Asks for signatures on a grant deed or deed of trust
• Asks for signatures on a document that has lines left blank
• Fails to provide copies of signed documents
• Refuses or fails to put an oral promise in writing

California Bay Area Contact if you want additional information and refferals on short sale help

Should I Buy a Short Sale in the California Bay Area?

Short sales happen when home values fall and sellers do not receive enough cash from a buyer to pay off their existing mortgages, providing lenders agree to take less than the amount owed to them. In the past few years in the California Bay Area, many of the real estate transactions have resulted in a short-sale

On the surface, it may appear that a short-sale buyer is getting a good deal. However, there are reasons to stay away from this type of transaction in the California Bay Area whether it be in Fremont, Newark Union City or anywhere else in the Bay Area Below are just some of the reasons to s stay away from short-sale transactions.

1) In a short sale transaction, the listing agent picks the asking price.

In the California Bay Area, property inflated so much that now the value of real estate is less than the seller owes on the home. For example, in Fremont california, homes are now selling at a price they were in 2002! If a listing agent picks an asking price that is way below market value to attract buyer, there is no guarantee that the bank will accept the price. In other words, a short sale asking price is “pie in the sky” with no guarantee. In fact 1 out of 25 short sale transaction actually close. the lender ususally forecloses on the home.

2) Homes Sell at Market Value.

Lenders aren’t naive or unaware of the value of a home. Lenders will insist on a comparative market analysis, known as a CMA, or broker price opinion, known as a BPO. If a lender believes a better price can be obtained by taking the property back in foreclosure over a short-sale offer, the lender may hold out for a higher price. That price will be close to market value. Lenders accept short sales when the home is worth the short-sale price, which means market value. On the surface, it appears the buyers is getting a bargain, but, remember statistics show that homes in Fremont California and other places in the bay area are selling at 2002 prices.

3) Homes Sell “As Is”.

If a mortgage company agrees to a short sale, it is most likely also paying the closing costs in the transaction. Lenders ask buyers to purchase the home in its present condition. Lenders typically will refuse to pay for:

* Suggested repairs disclosed on a home inspection.
* Pest inspections or work necessary to issue a clear pest report.
* Roof certifications or roof repairs.
* Home protection plans for the buyer.
* Deferred maintenance.

4) Length of Time to Close.

Depending on when the Notice of Default was filed, the lender’s back-log of foreclosures and how much paperwork the seller has already submitted, it could take anywhere from two weeks to two months to get a response on a purchase offer from a lender. In addition, if two lenders are involved because there are two loans secured to the property, it could take longer to satisfy the demands of the second lender.

5) Lenders Can Change Conditions.
Some lenders reserve the right to renegotiate the terms of the short sale at the last minute. If the market changes, new laws pass or new information crosses the lender’s desk, the lender can attempt to change the terms of the contract. Lenders generally have lawyers at their disposal, and ordinary buyers do not.

6) Lose Control of Transaction.

If you need to close escrow by a specific date, lots of luck with that. A short sale home closing process takes an indefinite amount of time. The seller’s lender calls the shots, not the buyer nor the buyer’s lender. If you are trying to close escrow concurrently with the sale of your home, it might not happen.

For more info on this or any othe real estate subject contact Sandi Ohms at 510-793-1700 email sandi@bayarea-homes.com

click here to visit forclosure homes in the tri-city in california, Fremont, Newark and Union city

What is a short sale in a real estate transaction?

A short sale is an alternative to a foreclosure. In the California Bay Area, a large percentage of homes sold are short sales or foreclosures. A Real Estate short sale is when lenders agree to accept less than the total amount due on a loan. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sale. If you would like to know if your home sale qualifys for a short sale and are located in the California Bay Area, Contact Sandi Ohms at info@bayarea-homes.com . or call 510-793-1700. In addition, anyone considering selling as a short sale should

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Obtain legal advice from a competent real estate lawyer

Obtain advice from a CPA for tax ramifications

YOUR REAL ESTATE BROKER CAN NOT GIVE YOU TAX OR LEGAL ADVICE

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With the help of you’re Real Estate broker, be prepared to supply you’re lender with broker authorization letter, bank statements, pay stubs, hardship letter, tax returns, net sheets from a title company, comparable market analysis and most likely much more. Short sales a very difficult transactions and not right for all home sellers. For more information about real estate in the California Bay Area, visit http://www.BayArea-Homes.Com and email any questions you may have.

to view short sales in the California Bay Area visit http://www.BayArea-Homes.com

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