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Foreclosure in Temecula : Real Estate Advice

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  • Home Buying256
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Activity 30
Fri Jul 17, 2009
Adrian Huntington answered:
No, but you must be able to convince the bank that you have a hardship. Did you lose your job? Have you had a health issue, or medical emergency? If you can prove that you can't make your future payments, you may be eligible for a short sale. You must also be able to show a decline in income. The banks will ask for two years tax returns, W2's, 1099's, two consecutive paystubs, and two recent statements of all bank,investment,401k, and asset accounts. You will also have to itemize your monthly expenditures. If you don't meet the loan modification guidelines, and show proof that a short sale is the only way to avoid foreclosure, you may have a chance. ... more
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Tue Sep 14, 2010
Steven Ornellas answered:
Hi Pattym500, I am very sorry to hear of your situation. I'M NOT A LAWYER OR TAX professional, nor am I aware of ALL the details of your circumstances; however, here's my opinion:

Assuming you sold at current value, the lender would take on a $88K loss. Since this is a non-owner occupied property with a recourse loan as you state, a deficiency judgment to collect the $88K can be attempted if a judicial foreclosure is used. This is not allowed under a trustee sale foreclosure. The predominate method of foreclosure proceedings in CA are via Trustee Sales due to the expense of a Judicial foreclosure.

The forgiveness of debt (cancellation of debt) is treated as ordinary income by the IRS despite the fact that the borrower has received no cash at the time of a short sale or foreclosure. However, if the cancelled debt amount is considered "qualified principal residence indebtedness" pursuant to the Mortgage Forgiveness Debt Relief Act of 2007, which lasts until 2012, there will be no taxation on this forgiveness of debt.

I think its safe for me to assume you do not want to pay income tax on $88K. So, your options appear to be keeping the property as a rental until it can be sold, or moving back into this former primary residence. In any case, no matter what anyone posts on this subject, your situation should absolutely be reviewed by a RE Lawyer AND Tax professional.

Best, Steve
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Tue Sep 9, 2008
Shel-lee Davis answered:
MJ:

Contact a local Realtor. They will be able to get this information for you from their title company. Of course, they will have to wait until the trustee's deed is actually recorded, so it may take a few days to a few weeks. Hope this helps. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
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Sun May 17, 2015
Barry Lynn Miller J.R. answered:
Thats a hard one not really a good answer other than you may try and ask for credit references from the landlord it doesn't hurt and they can't do anything but say no just explain your reasoning- Also try renting from a well known or large outfit or real estate company.

P.S. why rent when the government has programs for low income families.
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Mon Jul 21, 2008
Maria Morton answered:
Have you signed an Exclusive Buyer's Agency Agreement with this realtor?
Has she shown you a comparable market analysis?
Has she shown you any other data on that property or others nearby such as what has recently sold in that neighborhood?
If you have answered "no" to the above questions, find another agent to represent you.
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Thu May 29, 2008
Joseph answered:
Please; first show some intelligence... the proper English would be "My husband and I have contacted..." Then, question # 1. Do you have any equity in the house in today's real market (10-15% less than you think to get it sold ASAP)? If the answer is NO then you are screwed. Walk away and become a renter unless the government comes in and pulls the sliver out of your ass before the foreclosure process is completed. One last pointer... If you do walk away from your house, threaten to first, no bank wants a house back right now. Second, secure a rental before your credit goes into the tank although you have plenty of company. Lastly, there are companies out there (like the credit card negotiators) that will negotiate with your lender. Remember (One last pointer from above) NO lender wants a house back in today's market. Those negotiators will go over your loan docs with a fine tooth comb and "trust in God" a good Jewish money lender with a sharp pencil will find something wrong and hang your "Money Changer" out to dry. Good luck. ... more
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Sun Nov 28, 2010
Diane Wheatley answered:
A foreclosure will have a stronger negative effect on your credit than a short sale. A short sale will show a satisfied debt rather than a foreclosure. Both are negative derogatories for sure, but a short sale can be viewed in a different way (more understandable and forgivable in today's market and shows that you made a concerted effort to work with the bank) by different creditors. So sorry. Good luck to you. ... more
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Tue Apr 15, 2008
Leanne Smith answered:
Brian, it depends, are there any other buyers offering on this property? if not I would say your offer is good. Trust me I sell in Calif. that is not what I would call a low ball offer! If you have compettion obviously they will prob. take the highest offer. good luck and I hope this helps!
agent - Leanne Smith
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Mon Dec 31, 2007
Christopher Walker answered:
Yes, this is certainly happening in So Cal for certain. It does seem that this practice is fueled, at least in part, by the length of time necessary for offers to be processed on short sales and foreclosure property. Personally, I steer well clear of short sales at this point in the game. The process is so new to many agents, most do not seek to educate themselves before dealing with a short sale, and the process does take much longer than necessary in a majority of cases. Foreclosures should not take as long as most are reporting but, because there are so many buyers or investors that are making multiple offers, some of those making offers will also wait weeks before deciding which approved offer to which they will actually complete the process of purchasing. I see listing agents that are now waiting to place a property to pending status until a few days prior to close...if at all. A long wait time before an answer on an REO says to me that they already have an accepted offer and are waiting to see if they will close.

Sorry to ramble here but, your question is a great one. It is something that we are all experiences the effects of and can be very frustrating at the least. The bottom line seems to be that if you are representing a buyer and looking to REO or short sale property, you had better be prepared to make offers on multiple homes. If not, you may extend the house hunt by many months. I do not like the idea yet, see it as a necessary evil at this point. A double edged sword for all involved.
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Sun Nov 28, 2010
Richard Greenwood answered:
It is highly likely that home prices will drop 20% from their high about 2 years ago. The wild card here is the affect that the proposed Liberty Quarry will have on home values. To learn more about the quarry, simply search "Liberty Quarry" in Google. ... more
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