SHORT SALE SPECIALIST AGENTS FOR BANK OF AMERICA, WELLS FARGO, CHASE - The Gusman Group Market News
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Is Your Loan Modification Going Nowhere?
With the recent passing of the California Homeowners Bill Of Rights, mortgage lenders in California were mandated to offer distressed homeowners an alternative to foreclosure as part of the banks restitution in the lawsuit by the state.
Many distressed homeowners were given loan modifications in lieu of foreclosure even if they did not qualify previously. These homeowners had already applied for a loan mod and were declined by the same litigators. So why would they allow the loan mod again? The answer is because the state mandated they do. If a homeowner could not afford to pay a loan modification prior, how would they be able to now? Well, they can’t. And that’s why over 56% of these loan mods and homeowners have already re defaulted on their mortgage again.
In trying to help these distressed homeowners, the state has actually just prolonged the agony and inevitable of foreclosure for these families. Now these families will have to again seek alternatives to foreclosure. After exercising a loan mod, there are not many options left and should elect to short sale their home. An alternative that should have been done much sooner but wasn’t due to this mandate.
A short sale should be used in lieu of foreclosure all the time. The short sale option will salvage your credit and give you a much quicker recovery from your misfortune. In most cases if you short sale your home and continue to pay on time your other creditors, in 18-24 months you should be able to buy another home. With foreclosure a family is looking at 5 years to recover and the foreclosure can haunt them and remain on their credit report for up to 10 years.
If you are a distressed homeowner and have been considering a short sale or are in the middle of the process and your bank offers you a chance to get a loan mod even when they turned you down in the past. Make sure you weigh all the possibilities. If you know you will not be able to make the payments you may not want to prolong the inevitable. Your recovery starts as soon as you take the steps towards a recovery option such as a short sale.
There are many benefits to a short sale; especially tax wise, such as the debt relief act extended to 2014 insures you will not have to pay taxes on the amount forgiven. There are qualifications for this, but most will take advantage of this. Always discuss all the aspects of a short sale with your agent before you agree to enter into the agreement.
Make the right choice for your future. Too many distressed homeowners have blinders on and only look at the short term. Loan mods last 3-7 years, you must look at your future past 7 years and base your decision on where you want to be in 3-7 years. That is the real deciding factor!
Orange County, Los Angeles, and Inland Empire Housing Prices Jump!
Huge price increase from 2013 in Orange, Los Angeles, and Inland Empire Counties!
Prices have risen by 11.7% in Orange County, 12.2% in Long Beach/Los Angeles County, and 12.1% in the Inland Empire. Southern California had 3 of the top 4 regional price increases Orange County, Los Angeles County, and the Inland Empire!
Today's Residential Real Estate market is challenging. While values have risen dramatically in 2013, most would be sellers are sitting on that bubble of equity. Their values have gone up but not quite enough to allow sellers to cash out as much as they hoped or would like. Therefore, many would be sellers are contemplating selling their homes themselves.
Selling your home yourself sounds beneficial if you are one of the sellers sitting on that bubble mentioned. Saving the 6% commission that agents normally charge to sell a property sounds like a good deal and makes the sellers feel they are closer to their magic number they wanted to net in the sale. But today the market has changed and is moving back towards a buyers market. Meaning there are more properties available due to the interest rates rising close to the 5% mark from 3.5% a couple months ago. This change in the interest rates took many of the potential buyers out of the market due to now payments are not as affordable as before. Thus, turning the market around and back towards a buyers market, meaaning there are not as many buyers so sellers are having to make more concessions and are no longer experiencing multiple above asking price offers as they did a few months ago.
When the market is hot for sellers with lots of buyers drooling over the chance to buy, selling your home yourself is much easier. But when buyers are fewer, sellers need as much exposure as possible to their property. This is true in any market but more so in this one. Your home is only worth what someone is willing to pay for it! And, if you are trying to get top dollar for your home you need to expose and market your home to as many potential buyers as possible to find that one buyer that just falls in love with your property and is willing to pay your price. You cannot get this kind of exposure yourself posting on free websites.
Especially in this market, you should utilize a licensed agent. By using an agent, if the agent is good they will give your home 10 times the exposure you can. For example, when we market a property. At The Gusman Group we send your property to over 250 real estate websites nationally and internationally. We send property information to our over 300 investors. And if you pick the right agent that specializes in listing and marketing homes most likely like we have many buyers waiting to purchase that came from the other properties we had listed that they did not get. You also cannot overlook the power of the MLS Multiple Listing Service that agents are part of and utilize. Listing your property on the MLS exposes your home to tens of thousands of other agents that have qualified buyers also ready to purchase. With all this exposure you are more certain to secure a buyer than if you undertake the sale yourself.
Also consider this. A good agent will make the sale as easy and effortless as possible. They are there to protect your interests. They make sure the buyer is fully qualified so that your time is not wasted or your property is not tied up with a bogus buyer. This agent will make sure your home is properly priced for your market to insure you attract many buyers. Remember that commissions are negotiable. We recognize that sellers are sitting on that bubble of equity and we are making adjustments to lower commissions in this market to allow the sellers to be able to sell. This is something no agent wants to do ever! But the market is demanding an adjustment.
So is it worth it for you to sell your home yourself? NO, not in this market. Not if you really want to sell your home. I see the same ads on sites of the same homes for months still trying to attract a buyer. Contact an agent discuss your needs and make a deal that fits and is fair to both parties, and sell your property for REAL.
Remember this also....."There is no bad time to sell your home, only a bad marketing plan!"
For more information Contact:
The Gusman Group
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