San Diego Short Sale Attorney

Short Sale Problems: Junior Liens

Michael Gaddis — Thu, 23 May 2013 01:03:22 +0000

Short Sale News Homeowners and agents alike need to be aware of potential short sale problems before beginning the short sale process. One of the biggest obstacles to a successful short sale can be junior liens. Junior liens are creditors that have a security interest in the property; however, their security interest in the property is subordinate to the primary lien holder. Junior lien holders can take many forms and include, but are not limited to, Home Equity Lines of Credit (“HELOC”), stand alone second liens, mechanic’s liens, judgment liens, tax liens, etc. It is extremely important that both a homeowner and their real estate agent be aware of the existence of any of these prior to beginning the short sale process. Short sale problems start when an inexperienced real estate agent does not investigate the homeowner’s title prior to beginning the short sale process. In a short sale, junior lien holders are typically out of position and are unable to recover any money arising from their security interest in the case of a foreclosure. Junior Lien holders’ power arises when the homeowner wants something from them, such as short sale approval. Junior lien holders will use this empowerment as an opportunity to try and recover as much money as possible. California law prohibits lien holders that agree to a short sale from pursuing a deficiency after agreeing to a short sale. Thus, a Junior Lien holder has the opportunity to either negotiate a full settlement of the account or push the homeowner into a foreclosure and, in the case of recourse liens, pursue the homeowner in an attempt to recover a deficiency judgment. Most Junior Lien holders will negotiate and although they will not always accept the exact amount allocated by the first lien short sale approval, they will put a number on the table which is acceptable to them. Since the homeowner needs clean title in order to complete a short sale and since the junior lien holder has the power to prevent the short sale from being completed by not agreeing to the short sale, homeowners desiring to short sale need to negotiate with these junior lien holders. More problematic are judgment and IRS and state tax liens. These liens must be resolved in order for a short sale to be completed. It is important that homeowners seeking to short sell their homes secure the services of a real estate professional that is capable of handling complex transactions. Once a homeowner has retained a real estate professional to assist them on their short sale it is extremely important that the homeowner disclose any issues that might affect the sale of the property. If properly disclosed, the real estate professional will have time to try and find resolutions instead of finding out about an IRS tax lien at the 11th hour and facing a trustee sale. Homeowners and their real estate professionals are a team and need to work together in order to achieve the common goal of a successful short sale.…

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Join us at the San Marcos Swing Into Spring Festival

Michael Gaddis — Fri, 05 Apr 2013 16:30:00 +0000

Come visit the Michael Gaddis, J.D. Realty Group booth to speak with us in person in a fun, local environment. Sunday, April 14th, 2013 9 am – 5 pm Located on Via Vera Cruz, San Marcos, CA Featuring 200 Vendors, entertainment and kid’s activities! Enter for a chance to win prizes at our booth!…

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Short Sale Attorney: Short Sale Problem in California

Michael Gaddis — Mon, 25 Mar 2013 16:51:11 +0000

Short Sale Attorney I get numerous calls every week from homeowners that are in the short sale process that are having issues with the Realtor that is assisting them. I am always sympathetic to their position and constantly hear, “I wish I had found you before I chose my Realtor”. The truth is I wish they had as well because, if they had, they would not be experiencing the problems that they are contacting me about. There is not much I can do to help these homeowners except give them a little advice and knowledge and send them on their way. Ironically, I also get numerous calls from Realtors who are conducting short sales that are at impasses and are unable to address an issue that has arisen during the short sale process. In essence, they have bitten off more than they can chew and are seeking advice and guidance so they reach out to me for assistance. The bottom line is that while some short sales are very easy and will close without a fuss most short sales have problems or moments of crisis and the Realtor handling the short sale better have the knowledge and know-how to circumvent the obstacles that are sure to arise. The truth is, not many of them do so many of these short sales fail.…

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Short Sale Pros and Cons

Michael Gaddis — Sat, 23 Mar 2013 19:43:23 +0000

Short Sale Pros and Cons Distressed homeowners throughout California facing the realization that keeping their home is not a reality often contemplate short sale pros and cons. After making the discovering that they will be unable to refinance and discovering that either they cannot qualify for a loan modification or that the payment that they could qualify for on a loan modification is not low enough to allow them to keep the house homeowner often consider the option of short sale. A frequent question homeowners ask is exactly what is a short sale. Very simply, a short sale is selling your house with the Lender’s permission for less than what is owed on the note. Notwithstanding the plethora of real estate agents that swarm upon distressed homeowners attempting to convince them to short sale their homes, homeowners want to know the short sale pros and cons and how a short sale will benefit them.…

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Carlsbad Realtor/Encinitas Realtor: Short Sale Problems

Michael Gaddis — Wed, 20 Mar 2013 16:18:48 +0000

Carlsbad Realtor/Encinitas Realtor: Short Sale Problems Yesterday I received a phone call from a lady who told me that she was days away from closing a short sale on her house but was now experiencing some short sale problems. The reason that she was calling me was because she did not feel that her Realtor was representing her best interests. First, she said, the Realtor did not even try to get her qualified for relocation assistance or tell her that relocation assistance might be an option. She only found out about the possibility of relocation assistance about half-way through the process when one of her friends who was also short selling their house asked her if she was receiving any money from the lender to help her move. When she confronted her Realtor she was told that she did not qualify for HAFA because her loan was not owned by Fannie Mae or Freddie Mac. The woman said that she did not believe her Realtor so she called her lender who told her that her investor did participate in HAFA but that it was too late. The lender told her that her Realtor did not follow the proper procedure for attempting to qualify her for HAFA. Second, her Realtor did not ask her at the time that the Realtor took the listing if she wanted to exclude any items from the sale of the house. The woman said that she wanted to keep her refrigerator and stove but she was being told that these items were transferred as part of the contract. The refrigerator and stove were purchased in 1999 and for reasons I will not get into, she had sentimental attachment to them. She told her Realtor that she never authorized him to sell her refrigerator and stove. He apologized and said that he made a mistake. She told her Realtor to fix the problem. He told her that he could not do that, that she was contractually bound to transfer the items. She told him that since it was his fault she should be able to keep her refrigerator and stove and that he should buy the new owner a new refrigerator and stove from his commission. The lady told me that the Realtor stood to make over $10,000 from the sale of her house and it seemed only reasonable that he fix his mistake. She did not want any money from him, she just wanted to keep her refrigerator and stove. She told me that she realized that they were old but she wanted to keep them just the same. The Realtor told her that his broker would not allow him to do that. Upon investigation she discovered that her Realtor was not working for the broker that listed her house. She was confused as to why her Realtor was representing her but the listing was in another broker’s name on the MLS and the DRE had no record of her Realtor working for that broker.…

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Top 10 Short Sale Tips For Homeowners

Michael Gaddis — Fri, 01 Mar 2013 23:24:34 +0000

Top 10 Short Sale Tips For Homeowners Desiring to Short Sell Their Homes. 1. Decision to Short Sell: Prior to seeking the advice of a Realtor make sure that a short sale is what you really want to do. You should exhaust all of your options by consulting someone that is knowledgeable and understanding of your specific situation. To view more information regarding options available to distressed homeowners you may visit the following website: www.californialoanmodificationattorney.com. If your house is severely underwater and the thought of keeping a property valued significantly below what you owe is not palatable and your lender will not consider a principal reduction then your decision should be relatively simple. If you have received a loan modification the general rule of thumb is: If your lender does not cut your principal balance and you are still significantly underwater post-modification, then the lender should provide you with a modified payment equal to or less than you could pay for rent. If your lender does not provide you with a payment equal to or less than rent and you are still significantly underwater, then you should consider exploring short sale options. Regardless, the point is that you need to be at peace with your decision to short sell.…

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Encinitas Realtor: February 2013 Encinitas Short Sale Report

Michael Gaddis — Fri, 01 Mar 2013 08:00:20 +0000

Encinitas Realtors are reporting that the Encinitas real estate market appears to be rebounding from the housing crisis. Home values are increasing and the amount of short sales and bank owned properties (REOs) on the market are decreasing. As of February 27, 2013, Sandicor, the San Diego County Multiple Listing Service (“MLS”), reported just one Active listing designated by the Encinitas Realtor as a short sale. That is a remarkable statistic considering that short sales and REOS were dominated the Active market just one year ago. The Active listing is located at 1414 Coop St.…

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Carlsbad Realtor: February 2013 Short Sale Report

Michael Gaddis — Thu, 28 Feb 2013 20:20:53 +0000

The Carlsbad Realtor February 2013 Short Sale Report provides a unique look at the current status of the Carlsbad real estate market in relation to short sales. In a report ran February 28, 2013 on Sandicor, San Diego’s Multiple Listing Service (“MLS”), there were 129 listings classified as Active, Contingent, Pending or Sold (since Janaury 1, 2013). According to the MLS there were 8 Active short sale listings on the market 4 detached, single-family residences and 4 condominium/townhomes. The Active listings ranged in price from $1,875,000 for a 6 bedroom 6 bathroom 5,610 square foot home to $289,000 for a 1 bedroom 2 bathroom 1,128 square foot condominium. The average listing price for the Active listings was $795,862 (median listing price of $591,950) and the average days on market was 106 days. The MLS reported that there were 62 Contingent listings on the market. Contingent listings are listings where the Seller has signed an offer from a buyer but where the lender has yet to approve the short sale. The Contingent listings ranged in price from $1,095,000 for a 5 bedroom 5 bathroom 3,708 square foot detached, single-family home to $119,000 for a 1 bedroom 1 bathroom 723 square foot condominium. The average Contingent sales price was $478,802 (median Contingent listing price was $459,500) and the average days on market was 135 days. There were 25 Pending listings on the market as of February 28, 2013. Pending listings are accepted offers with full lender short sale approval. Pending listings are in the normal escrow period associated with any real estate sales transaction. The 26 Pending listings ranged in price from $775,000 for a 5 bedroom 5 bathroom 3,663 square foot detached, single-family home to $125,000 for a 1 bedroom 2 bathroom 1,022 square foot condominium. The average Pending sales price was $449,657 (median Pending listing price was $405,000) and the average days on market was 100 days. Finally, there were 33 SOLD listings designated by Carlsbad Realtors as short sales since January 1, 2013. The SOLD listings ranged in price from $1,075,000 for a 5 bedroom 5 bathroom 4,608 square foot detached, single-family home to $160,000 for a 1 bedroom 2 bathroom 842 square foot condominium. The average sales price for the SOLD listings was $447,506 (median SOLD price of $424,900) and the average days on market was 132 days. If you are looking to short sell your house and want to retain a Carlsbad Realtor please contact Michael Gaddis, J.D.…

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Homeward Residential Short Sale Closed For Property Located at 5329 Village Dr. in Arrowood

Michael Gaddis — Tue, 19 Feb 2013 18:34:48 +0000

Michael Gaddis, J.D. recently closed a Homeward Residential short sale in the Arrowood community of Oceanside, CA. The property was located at 5329 Village Dr., Oceanside, CA and had a beautiful view of the Arrowood Golf Course. The homeowner had one loan on the property with Homeward Residential. This transaction was one of those rare short sales that ran entirely smooth without a single crisis issue. In fact, this short sale ran so smoothly that one might have thought it was an equity sale. A lot of credit has to go to the homeowner selling the property. He was extremely proactive and committed to the short sale process. Without a doubt this was the smoothest short sale transaction ever processed by Michael Gaddis and is evidence that if all parties involved in the transaction (buyer, seller, agents, lender, etc.) are fully committed that short sales do not have to be extremely difficult.…

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Carlsbad Realtor: Carlsbad Short Sale Report as of February 7, 2013

Michael Gaddis — Fri, 08 Feb 2013 02:03:08 +0000

The number of ”Active” Carlsbad short sales is unbelieveably low. As of February 7, 2013 Sandicor, the San Diego County MLS, showed only ten(10) Active listings that were identified by listing agents as ”Active”. Active listings refer to listings that are currently being marketed without an accepted offer. Contrast the ten (10) active listing to the seventy (70) ”Contingent” listings and thirty-two (32) “Pending” listings. “Contingent” listings are listings where an offer has been accepted by the Seller but it is subject to lender approval. In other words, since the sale is a short sale, the bank has to agree to the short sale and issue an approval before the sale can continue. Short sale listings that are identified as ”Pending” have obtained the proper lender approvals and are officially in escrow in the final closing stages. The fact that there are only ten Active Carslbad short sale listings and one hundred and two (102) Contingent and Pending Carlsbad short sale listings indicates that most of the Carlsbad short sale listings that are marketed on Sandicor are getting accepted offers and moving relatively quickly into Contingent status. There does not seem to be enough new Carlsbad short sale listings to compensate leaving only ten (10) Active short sale listings. All of this indicates that 1) there is a shortage of short sale inventory currently on the market and 2) that there appears to be a surplus of buyers snatching up whatever short sales appear on the market. Another interesting fact about the Active listings is that seven (7) out of the ten (10) Active listings are either condominiums or townhomes. Of the three (3) remaining Active (single-family detached) listings two (2) are priced at $1,499,000 or higher. The remaining Active (single-family detached) home had extremely restrictive showing hours (the agent notes indicate that the only Showing to be on Jan 27th, 1pm-4:30pm) and unfavorable terms for the selling (buyer’s) agent. If you throw the three (3) Active listings for the single-family detached homes out of analysis based on being priced too high (thus appealing to a very small pool of potential buyers) or for being unreasonable in showing hours and selling agent incentives there are no Active single-family detached homes under $1,499,000 in Carlsbad that would be classified as a short sale.…

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