Home » Posts tagged "situation"
Find Homes For Sale. Search real estate, recently sold properties, foreclosures, new homes, maps, schools and more ... www.DanielAndradeHomes.com

Understanding California Short Sale Rules

We are hearing more and more about the realities of short sales. Making the latest headlines are the concerns addressing the changing California short sale rules. Short sales options by California property owners represent about twenty percent of that regions housing inventory.

In general, a short sale is when a property owner has fallen several months behind in their payments on that property, and there is a new agreement made between the lender and that property owner, to settle the property for less than is owed. The remaining balance is pardoned by the lender, so that both parties can move forward from this irreconcilable relationship. But is it a true move forward?

Click Me! To Find Out Everything
You Need to Know About
Foreclosures and Short Sales

California short sale rules implies that the seller will still be ultimately responsible for the difference left between the money owed on the property and the new purchase price agreed to the new owner. This will still remain a problem for the original owner, after suffering through the lengthy, stomach wrenching ordeal, of the entire process.

The California Association of Realtors are franticly warning realtors that California property owners may be in danger of severe tax consequences if they decide to chose short sale over foreclosure, even if the lender agrees to allow the short sale to proceed after several road blocks, and so forth. The lender can still be instrumental in pursuing judgment against the previous property owner.

While the California short sale rules are still not clear, the possibility for government involvement to pursue wage garnishments for property owners believing that a short sale was their way of putting a bad experience behind them is very real. It is till being debated and reviewed in congress, but a solid decision is not coming fast enough.

Some say that it may be smarter to take the credit hit now and let the foreclosure happen versus try and save those few credit points, and still be subject to the ultimate financial ruin anyway. Either way, there will be some credit damage. Your final decision must be something that you are willing to live with long term. No easy solution, but there is a way to make the best choice for your particular situation.

For Californians, there are several non profit foreclosure counseling organizations, as well as some reliable real estate lawyers available that can help interpret the current California short sale rules for you and help you decide the best course of action to take. Be sure to make a check list. Strategy and planning will also aid you in being able to live with your final decision.

When reviewing the California short sale rules with your counselor, ask if it there is a possibility of owing the California Tax Board as well, as the IRS. You may want to bring up capital gains as well as if there are other work out plans in addition to the ones you may have to create a hybrid plan, and if so what are the long term effects on your credit?

Article Source: http://www.articlesnatch.com

About the Author:
California Short Sale Rules…what rules? Visit http://www.nphsrealestate.org/Short-sale/California now, to get all the rules and facts on Short Sales in your area.

Q-A Series – GETTING STARTED

Q. HOW DO I KNOW IF I’M READY TO BUY A HOME

You can find out by asking yourself some questions:
– Do I have a steady source of income (usually a job) Have I been employed on a regular basis for the last 2-3 years Is my current income reliable
– Do I have a good record of paying my bills
– Do I have few outstanding long-term debts, like car payments
– Do I have money saved for a down payment
– Do I have the ability to pay a mortgage every month, plus additional costs

If you can answer “yes” to these questions, you are probably ready to buy your own home.

Q. HOW DO I BEGIN THE PROCESS OF BUYING A HOME

Start by thinking about your situation. Are you ready to buy a home How much can you afford in a monthly mortgage payment (see Question 4 for help) How much space do you need What areas of town do you like After you answer these questions, make a “To Do” list and start doing casual research. Talk to friends and family, drive through neighborhoods, and look in the “Homes” section of the newspaper.

Q. HOW DOES PURCHASING A HOME COMPARE WITH RENTING

The two don’t really compare at all. The one advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity, take advantage of tax benefits, and protect yourself against rent increases. Also, you may not be free to decorate without permission and may be at the mercy of the landlord for housing.

Owning a home has many benefits. When you make a mortgage payment, you are building equity. And that’s an investment. Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities- like insurance, real estate taxes, and upkeep- which can be substantial. But given the freedom, stability, and security of owning your own home, they are worth it.

Q. HOW DOES THE LENDER DECIDE THE MAXIMUM LOAN AMOUNT THAT CAN AFFORD

The lender considers your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses. Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support. According to the FHA,monthly mortgage payments should be no more than 29% of gross income, while the mortgage payment, combined with non-housing expenses, 4 should total no more than 41% of income. The lender also considers cash available for down payment and closing costs, credit history, etc. when determining your maximum loan amount.

Q. HOW DO I SELECT THE RIGHT REAL ESTATE AGENT

Start by asking family and friends if they can recommend an agent. Compile a list of several agents and talk to each before choosing one. Look for an agent who listens well and understands your needs, and whose judgment you trust. The ideal agent knows the local area well and has resources and contacts to help you in your search. Overall, you want to choose an agent that makes you feel comfortable and can provide all the knowledge and services you need.

Q. HOW CAN I DETERMINE MY HOUSING NEEDS BEFORE I BEGIN THE SEARCH

Your home should fit way you live, with spaces and features that appeal to the whole family. Before you begin looking at homes, make a list of your priorities – things like location and size. Should the house be close to certain schools your job to public transportation How large should the house be What type of lot do you prefer What kinds of amenities are you looking for Establish a set of minimum requirements and a ‘wish list.” Minimum requirements are things that a house must have for you to consider it, while a “wish list” covers things that you’d like to have but aren’t essential.

Find Homes For Sale. Search real estate, recently sold properties, foreclosures, new homes, maps, schools and more ... www.DanielAndradeHomes.com

This site is protected by Comment SPAM Wiper. Find Homes For Sale. Search real estate, recently sold properties, foreclosures, new homes, maps, schools and more ...
www.DanielAndradeHomes.com


Click for Privacy Policy

Daniel Andrade, REALTOR® DRE #: 01849983
Century 21 My Real Estate Co
7825 Florence Avenue, Downey , CA 90240
call today 323-215-9836
daniel@mynewhouses.com

Each Office is Independently Owned and Operated © 2012 Century 21 Real Estate Corporation. CENTURY 21® is a registered trademark owned by Century 21 Real Estate LLC. An Equal Opportunity Company. Equal housing Opportunity. Each office is independently owned and operated. Copyright © %current-year% %home% - All Rights Reserved