Paula Joan Smith's Blog

Have you ever wondered if a will or trust is right for you and your financial situation?

Tomorrow, you can find out more about wills and trusts, and how they can help your long-term financial planning needs and goals.

This special event is an opportunity to meet a local experienced attorney, James Charlton, who specializes in wills and living trusts.

You will learn if a will or trust may be right for you and your financial situation.

There is no charge for this special Estate Planning Seminar and it is open to the public. 

Tuesday May 24, 2011 6:00pm - 7:30pm

At the Hilton Garden Inn (by the Mall)

1309 W Rancho Vista Blvd, Palmdale, CA 93551

Good question. The term used to be ‘Short Pay,’ which may be more descriptive. Because it means that the payoff to the mortgage lender will be short on funds.

For example, let’s say you have a $200,000 mortgage on your house and still owe about $175,000. In today’s market, however, you can’t sell for much more than $100,000. So, your lender will have to accept about $75,000 less in order for the property to be sold. In effect, your lender is ‘discounting’ your mortgage.

As declining values and distressed sellers have become the ‘new normal’ real estate market, mortgage lenders are coming to realize that short sales are often in their best interests, by saving the additional costs and time associated with foreclosures. Short sales can also benefit sellers. And I’ll address more of those specifics in the next few blogs.

So, how do sellers qualify for a short sale? They may have stopped making payments or are about to. Why? Reduced income due to loss of job or cutback in hours and overtime, illness or death in the family. Mandatory job re-location can also be a reason acceptable to the lender. Proof of the sellers’ hardship is fundamental to the short sale process.

Here in the Antelope Valley of Southern California, it’s estimated that short sales make up about 20% of all real estate transactions. And they’re important in this area of aerospace and military employment for those who need security clearances.

But the ‘short’ in short sales doesn’t refer to the amount of time it takes to close the transaction, which may be longer than the usual 30-45 day escrow period. Additional time is needed for negotiation and documentation. Even though the sellers still own the property, they must have approval from their lender/s in order to sell it.  And this may mean approval from more than 1 lender for sellers who have 2nd mortgages or lines of credit. Lenders also set the value of the property by doing their own appraisal or BPO (Broker Price Opinion, a type of appraisal done by a real estate professional).

This is a quick snapshot of what a short sale looks like. For more on what they mean to sellers and buyers, stay tuned.

Paula Joan Smith
Realtor / RE/MAX All-Pro
Lancaster CA
SFR (Short Sales and Foreclosure Resource Certification from National Association of Realtors)
pjsmithrealtor@yahoo.com

"Can I, or Should I, Keep My Home?"

"What will happen if I walk away from my home? Why did my neighbor get a modification and I have not? How can I avoid being scammed?" These questions are on the minds of many homeowners today.

The HELP Program has partnered with the local community to hold a free public outreach class and answer these questions and more on March 19th, 2011 in Lancaster.

Held at the Hampton Inn & Suites in Lancaster, this 3-hour course educates consumers on short sales, foreclosures, income tax ramifications, and other serious issues that arise when considering a loan modification or other mortgage options for struggling homeowners.

“This class is designed to go in great detail,” says HELP Founder Chris Sorenson, “from tax-related issues, deficiency issues, landlord issues, credit issues and how to position oneself to buy far earlier than you otherwise would be able to. This is one free class that you must attend. As your expert and consumer advocate, we have no agenda other than to make sure you’re informed and do not get taken advantage of. “

HELP is short for Homeowner Education Learning Program, which is a non-profit organization dedicated to educating homeowners on their options.

To register for this class, or to get more information, visit http://www.freehomeownershiphelp.org. The class is titled "Can I, or Should I, Keep My Home?" and being held from 2pm-5pm on Saturday, March 19th. Open/Free to all members of the public.

Hampton Inn & Suites 2300 West Double Play Way Lancaster, CA 93536 (Highway 14 and Avenue I)

"Can I, or Should I, Keep My Home?"

"What will happen if I walk away from my home? Why did my neighbor get a modification and I have not? How can I avoid being scammed?" These questions are on the minds of many homeowners today.

The HELP Program has partnered with the local community to hold a free public outreach class and answer these questions and more on March 19th, 2011 in Lancaster.

Held at the Hampton Inn & Suites in Lancaster, this 3-hour course educates consumers on short sales, foreclosures, income tax ramifications, and other serious issues that arise when considering a loan modification or other mortgage options for struggling homeowners.

“This class is designed to go in great detail,” says HELP Founder Chris Sorenson, “from tax-related issues, deficiency issues, landlord issues, credit issues and how to position oneself to buy far earlier than you otherwise would be able to. This is one free class that you must attend. As your expert and consumer advocate, we have no agenda other than to make sure you’re informed and do not get taken advantage of. “

HELP is short for Homeowner Education Learning Program, which is a non-profit organization dedicated to educating homeowners on their options.

To register for this class, or to get more information, visit http://www.freehomeownershiphelp.org. The class is titled "Can I, or Should I, Keep My Home?" and being held from 2pm-5pm on Saturday, March 19th. Open/Free to all members of the public.

Hampton Inn & Suites 2300 West Double Play Way Lancaster, CA 93536 (Highway 14 and Avenue I).

“Can I, or Should I, Keep My Home? “

"What will happen if I walk away from my home? Why did my neighbor get a modification and I have not? How can I avoid being scammed?" These questions are on the minds of many homeowners today.

The HELP Program has partnered with the local community to hold a free public outreach class and answer these questions and more on March 19th, 2011 in Lancaster.

Held at the Hampton Inn & Suites in Lancaster, this 3-hour course educates consumers on short sales, foreclosures, income tax ramifications, and other serious issues that arise when considering a loan modification or other mortgage options for struggling homeowners.

“This class is designed to go in great detail,” says HELP Founder Chris Sorenson, “from tax-related issues, deficiency issues, landlord issues, credit issues and how to position oneself to buy far earlier than you otherwise would be able to. This is one free class that you must attend. As your expert and consumer advocate, we have no agenda other than to make sure you’re informed and do not get taken advantage of. “

HELP is short for Homeowner Education Learning Program, which is a non-profit organization dedicated to educating homeowners on their options.

To register for this class, or to get more information, visit http://www.freehomeownershiphelp.org. The class is titled "Can I, or Should I, Keep My Home?" and being held from 2pm-5pm on Saturday, March 19th. Open/Free to all members of the public.

Hampton Inn & Suites 2300 West Double Play Way Lancaster, CA 93536.