Seller Can Get $3000 to Short Sale Home!

As unbelievable as it sounds, there is a government program, not only available but widely used, that is actually giving the seller a check for $3000 at the close of escrow.   The good news is that this is a relatively easy program to qualify for as opposed to some of the other “solutions” out there right now like loan modifications which are still difficult to obtain.

This new program is called HAFA described as “a government-subsidized “Home Affordable Foreclosure Alternatives” program for distressed homeowners to sell their homes to avoid foreclosure, even if the sales price is not enough to pay off their existing mortgage loans. Under HAFA, a participating lender will pre-approve the terms of a short sale prior to listing using standard forms and specific timeframes.”

To qualify for this program, the home must be owner occupied or only vacant or rented for the past 12 months. The seller must be able to show a hardship and by the way, the hardship can be described in several different ways. The property must be listed with a real estate agent.

Anyone who has gone through the difficult process of deciding to sell their home for less than the amount owed understands that this is most often a decision that is not easily reached.  I have found that many people struggle with the moral implication of not owning up to their debt in addition to the fear that their credit will be destroyed even if only for a few short years.  We sometimes hear about the few who don’t go through this emotional battle, however, I have found that most sellers do.

I believe that it’s my job to guide the seller through the decision to do a short sale, then to help them through the process while helping them to retain their dignity and self-respect.  I love the $3000 incentive at the end that HAFA provides because most short sale sellers have exhausted their finances (and beyond) by the time they close the escrow

If you would like to find out if you qualify for the HAFA program and are thinking of doing a short sale on your home, call me at (805)710-2415 for a private consultation at no cost.

Nancy Puder is the owner/broker of Signature Properties Real Estate Sales & Property Management, located at 124 S. Halcyon Rd., Arroyo Grande, CA 93420.  You may reach her at (805)710-2415, email Nancy@SignatureProperties1.com or visit her website at www.SignatureProperties1.com

The California Association of Realtors (CAR) has announced that foreclosure files have dropped 12.5 percent and sales on the court steps have declined by 24.5 percent.  Those facts combined with the five consecutive months of home sales gains (September 2010-January 2010) is reason to think positively about the real estate market. 

Many are taking advantage of the low interest rates that are averaging right now around 4.78%.  Interest rates are predicated to rise to around 5.78% before year-end.  I’m not a mathematician, but these numbers tell me that I will be paying much more for the same house next year than I will this year!   Perhaps I should consider getting off the fence?

Some buyers have shared with me that their sense of job security is preventing them from moving forward and making a purchase.  That is a valid concern which I can understand.  To alleviate some of these concerns, CAR has made available to home buyers a mortgage insurance plan, available upon completing a sale, which will pay up to 6 months of your mortgage payment if you find yourself unemployed.

The truth is that in most cases, none of us know what tomorrow will bring   The question is should you choose to worry  about the future and not do anything, or should you,  perhaps, carefully analyze your situation with  a respected professional who will help you decide if  this time might be right for you to make a move.

Nancy Puder is the owner/broker of Signature Properties, a prestigious real estate firm located at 124 S. Halcyon Rd., Arroyo Grande, CA 93420.  You may reach her at (805)710-2415 or visit the website at www.SignatureProperties1.com

Is Foreclosure & Short Sale the Same Thing?

One of the most common misconceptions today is that an REO and a Short Sale is the same thing.  Some may know that they are different from each other, but really don’t understand why. I thought today that it might be a good idea to just explain it in simple terms.  The acronym REO means Real Estate Owned.  It is a term used by banks when they have completed a foreclosure on a property and they are now the owners of the property.  If you are purchasing an REO property, you are buying a property that the bank now owns

A short sale happens when the seller owes more on the property than they can sell it for.  For example, if they bought the house a few years ago and have a loan on it of $470,000, and now the house is worth $400,000, the house will be offered up for sale at the current market value of $400,000, subject to the approval of the lender.  This means that when a reasonable offer is received and accepted by the seller, it must then be submitted to and accepted by the lender also.  The reason is that the lender will be, in most cases, receiving less than the amount owed to them at the time of the sale. 

Foreclosed homes (REO’s) can be purchased normally and escrow can usually close in 30 days or less.  A short sale, however, can take from 30-120 days to close escrow.  In some cases, it could be longer.  As a Certified Distressed Property Expert (CDPE), I have extensive training and experienced in foreclosures, Short Sales and can even help guide you through a loan modification.  If you or someone you know is in this situation, please feel free to contact me for a complimentary and confidential consultation.

Nancy Puder is the owner/broker of Signature Properties Real Estate Sales & Property Management, located at 124 S. Halcyon Rd., Arroyo Grande, CA 93420.  You may reach her at (805)710-2415, email Nancy@SignatureProperties1.com

Cheaper to Buy than Rent Right Now?

With lower house prices on the Central Coast and at the same time, rising rental rates, you may want to consider purchasing a home right now. Did you know that a home purchased for $300,000 with a zero down payment results in a payment of only $1900 per month? That includes property taxes and insurance! And yes, you can buy a house with zero down payment.

With the mortgage interest deduction still intact, your accountant will probably confirm that for many of you, a purchase similar to the one described above will result in approximately a $3600 tax savings!! If you are renting now for $1600, that sounds to me like a break even situation. I hope this news will prompt many people to investigate the possibility of owning versus renting.

With homeownership, there are so many benefits if you are brave enough to take that first step. For one thing, you won’t be getting the dreaded phone call from the landlord that they have decided to sell the property and now you not only have to allow it to be shown to prospective buyers, but you will most likely have to move pretty soon. I find that most people are usually unprepared emotionally and many times financially, for this sudden turn of events.

In addition, historically prices go up regardless of what you are hearing all over the media today. How many of us have heard a friend or neighbor tell us that they bought their house for $25,000 way back when and now even with the temporary decline in house prices, it is still worth $400,000? I know that even I cringe when I hear those stories. How do you become equity rich like your neighbor? Take a step out in faith and experience the joy of owning your own home! Paint the walls whatever color you want and live there until YOU choose to move. Who cares what the current value is on the home if you’re not going anywhere?

If you would like advice on whether this is the right time for you to buy, call me at (805)710-2415 or send me an email at Nancy@SignatureProperties1.com Nancy Puder is the owner/broker of Signature Properties Real Estate Sales & Property Management, located at 124 S. Halcyon Rd., Arroyo Grande, CA 93420. www.SignatureProperties1.com

A Spirit of Independence
In creating Signature Properties, the Central Coast’s premier independent real estate and property management company, Nancy embraced the spirit of independence. She did so not only in terms of not being affiliated with any of the large, corporate-owned real estate companies, but also in the unique culture and spirit of autonomy that defines the Signature Properties philosophy. Together with her husband and company co-owner, Larry, Nancy strongly believes that no two people are the same, and that’s why each client must be treated accordingly. There are no cookie cutters to found here.

“Some people only see black and white”, Nancy says. “I’ve always believed that life is shades of gray. Everybody has their own story, different situations, unique goals. It’s our job to find out what those things and then develop a plan of action to help them achieve them”.

A Wealth of Experience
Nancy began here real estate career in 1978, and since that time, she has excelled both in sales and property management. For many years, she worked under the banner of other companies, but soon found that her actions and ultimately, her potential, were limited in that scenario. That’s why Nancy and Larry empowered their agents and associates to do business as they see fit. The team of professionals at Signature Properties is comprised of knowledgeable experts who share Nancy and Larry’s philosophy and cherish the freedom they possess within their careers. The result is the ability to tailor their service to each client and achieve a higher level of satisfaction for both the client and themselves.

Full Service from Start to Finish
The associates at Signature Properties don’t believe in doing things halfway. That’s why, whether you’re buying or selling a home or taking advantage of Signature’s outstanding property management services, you can trust them to take care of all the details and make the entire process as smooth as possible. That’s the Signature way. “We do our homework up front”, Nancy says. “We always try to solve problems before they become problems”. For property management clients, that means finding a higher quality of tenant and going out of their way to ensure the satisfaction of both the tenant and the property owner.

High Standards, Distinctive Results
Throughout her career, Nancy Puder has always held herself to a higher standard. Today, those standards are reflected every time you see a Signature Properties sign in front of a home. That’s because Signature Properties sign in front of a home. That’s because Signature Properties doesn’t put its name on just any property; it has to be held to a certain standard of excellence. The same goes for each associate and staff member throughout the company. The result is a reputation for excellence in both the properties they represent and the level of service they provide.

For all your Central Coast real estate needs, don’t settle for an ordinary level of service. For Service as Unique as You, look no further than Signature Properties. Contact us today to schedule a private consultation.