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Ron Escobar's Blog

By Ron Escobar, Broker | Agent in 90019
  • In california? Can the bank foreclose if I am trying to do a Short Sale?

    Posted Under: Home Selling in Los Angeles, Foreclosure in Los Angeles, Property Q&A in Los Angeles  |  July 18, 2013 7:54 PM  |  527 views  |  1 comment

    The California Homeowner’s Bill of Rights which became law on January 1, 2013 provided numerous defenses and benefits to struggling homeowners.  As any other law, it can be very confusing, and often missquoted.  It started the process of eliminating the process known as Dual Tracking, which is where a lender is foreclosing on a homeowner’s property while at the same time being in the process of working out some form of resolution, such as a Modification, Short Sale or some other agreement with the homeowner.

    Unfortunately, most homeowners are under the impression that the law took full effect on January 1, 2013.  This is NOT THE CASE!  The law takes effect in stages with the final part restricting Dual Tracking taking effect on January 1, 2018.  Until that time lenders can employ Dual Tracking except in two instances:

    1. Where the lender is negotiating with the homeowner to enter into a loan modification agreement
    2. Where a Short Sale is approved by the Lender

    Until the point that the Lender issues a final approval of a Short Sale the Lender can continue the foreclosure process while negotiating a Short Sale.  Once the Short Sale is approved by the lender then and only then does the Lender need to stop all foreclosure actions pending the closing of the Short Sale transaction.

    So, it is important to keep any eye on any pending foreclosure action that is taking place during any Short Sale negotiation to make sure the property is not lost to the Lender.

    ron@select-realestate.com

  • How to Chose the right Short Sale Agent.

    Posted Under: Home Selling in Los Angeles County, How To... in Los Angeles County, Property Q&A in Los Angeles County  |  March 5, 2013 4:46 PM  |  522 views  |  No comments

    What to look for in a short sale agent?

    All agents are not created equal.  Yes, there are a lot of factors to consider when hiring an agent to short sale your property and the following short list is meant to give you something to think about.  It is by no means a complete list.  You should consider:

    1.       Experience:

    a.       How many Short Sales has the agent listed and closed under their name in the last 12 months.

    b.      Can you verify them in the MLS (under their name, and not someone else)

    c.       Can you talk to the seller’s to get feedback or a testimonial?

    d.      Were they the listing agent? Or the buyer’s agent? Or both?

    e.      How long did it take to close?

     

    2.       Knowledge:

    a.       Can they answer your questions?

    b.      What credentials to they have?  Are they brokers or agents? Did they go to law school? Do they understand the foreclosure process?  Are they familiar with the tax laws?

    c.       Are they short sale experts?

     

    3.       Integrity:

    a.       Will they put YOUR best interest ahead of their own interest?

    b.      Are they willing to do ‘questionable things” to get your business?  If they do it for you, they will do it to you!  Deal with people that have pristine reputations and the highest values only.  It is better on the long-run

     

    4.       Support team:

    A short sale is a very cumbersome transaction and it takes A LOT of follow up and organization.  They have countless forms being submitted and re-submitted, appraisals, letters, negotiators, and processors… all of them on different schedules and time-frames and with different objectives.  It requires a full time commitment with plenty of tenacity and charm to get things done.

    Then you have property showings, and escrow conditions and contingencies… dealing with lenders, etc.    It takes a full time team with great operational efficiencies to get the job done right!   Make sure your agent has this support (and verify it, get to interview as many of them as possible).

     

    5.       Marketing Expertise:

    a.       We live an on-line life style. Is your agent’s on-line presence one of the best out there?  Take a look at their listings: How many do they have?  How many pictures do they show?  Are they professionally lit and shown pictures?  Is there a video of the property?   How do they show on the real estate portals?

    b.      Does the agent respond to inquiries right away?  Do they pick up the phone or return your call within an hour?  These are the types of actions that will get your property sold and allow you to have a successful short sale.

    Always remember real estate agents are sales people, and we will all sound very good.  It is up to you to verify the information we give you.  Read our customer reviews, send us emails, make phone calls. Verify, verify, and verify.

     

    A short sale is a VERY important real estate transaction.  Make sure you hire the best person you can hire in your area.  Do yourself a favor and do not give it to someone just because you know them or because they are a friend.  Hire the best, and do your homework before you hire one of us.  This will maximize your chances for success.


    Ron Escobar, MBA
    Broker & General Contractor
    www.shortsalecentral.org
  • Will the Bank come after you if you do a Santa Monica Short Sale?

    Posted Under: Home Selling in Santa Monica, Foreclosure in Santa Monica, Property Q&A in Santa Monica  |  November 6, 2011 12:02 PM  |  711 views  |  1 comment

    Good news for luxury Santa Monica and California home owners who own a house that is upside down and have more than one loan or lien on title.  California Law SB 458 prohibits deficiencies in California Short Sales.  What is a deficiency?  Stated in plain English a Deficiency is a Short Sale is when the bank comes after the home owner for the amount of money they lost during a Short Sale or a Foreclosure.  This was a common practice for many of the banks that required home owners seeking relief through a Short Sale to either sign an Unsecured Note (committing themselves to pay the bank even after they no longer own the home) or the bank "reserved the right to pursue deficiency" after the transaction was closed.  The bank would continue trying to collect, even though they approved the short sale.  Well that is old news!



    Thanks to California La SB 458, also known as SB 458 (Corbett), which was signed into law July 11, 2011 and extends deficiency judgment protection to homeowners completing short sales with junior liens.  The law does not require or force banks to approve a Short Sale, but it does require the following three things: 1) it specifically states a short seller cannot be compelled to contribute cash towards the settlement of a junior lien in a short sale, 2) it states that a junior lender cannot require a short seller to sign any further obligations such as a promissory note, and 3) it requires all lenders agreeing to a short sale transaction to waive any/all rights to further deficiency.

    The new law expands on short sale anti-deficiency legislation passed last year. Senate Bill 931 (Ducheny) was enacted last year in response to concerns that borrowers could have greater liability after a short sale than after a foreclosure. SB 931 prohibited a lender from obtaining a deficiency judgment as to a first mortgage or deed of trust following a short sale. Since SB 931 only applied to first mortgages, homeowners with more than one mortgage could still be liable to a junior note holder after the short sale.

    There are many nuances in Santa Monica Short Sales, and procedures vary from bank to bank.  Internal procedures and systems make some banks much more efficient than others.  Of equal importance is to hire the right Short Sale Expert to handle your transaction.

    Do you need to do a Santa Monica Short Sale? Work With the Santa Monica Short Sale Expert – If you need to sell a  Santa Monica Short Sale sale doesn’t it make sense to work with a Santa Monica short sale expert?

    Working with a Santa Monica Short Sale Expert when listing a Santa Monica Short Sale home will increase your odds of getting your short sale settlement approved by the bank.

     If the agent representing you as your west Santa Monica Short Sale agent is unfamiliar with short sales, it will be noticed and a cause for alarm with the short sale buyer agent. Short sale buyer agents do not want to work with agents who are unfamiliar with the short sale negotiation and listing process.

    If you are looking for a Santa Monica short sale agent with a great reputation in the Santa Monica area and who specializes in short sales please call Ron Escobar with Select Real Estate at 310-557-2100.

 
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