3/06/2012 
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South West Riverside County Association Of Realtors
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New Listing (1046)
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Copyright © 2012 CoreLogic. All rights reserved.

SHORT SALES: TOP 10 MYTHS DEBUNKED!

2012 is the year of the short sale. As an agent, one of your most valuable business tools is the understanding of how to help underwater homeowners avoid foreclosure. Don’t make the mistake of believing these myths:


Myth #1: The homeowner must fall behind on mortgage payments in order to qualify for a short sale.
Debunked:  Years ago this may have been true, but not in 2012.  

• A financial hardship must exist, such as the ARM (Adjustable Rate Mortgage) increasing in monthly payments. 
• Loss of job or income.  
• Health or medical issues.
• Extraordinary loss in home value (which may be considered a hardship).

Note: Agents should not advise a homeowner to miss a mortgage payment. 


Myth #2: Banks would rather foreclose on a property than approve a short sale. 
Debunked:  Many still believe this myth to be true, but more accurately, banks would prefer not to foreclose on a property due to the $50-70k it may cost the bank per transaction. Banks lose less money on a short sale than on a foreclosure.  
Note: In California, some lenders may pay owners as much as $25,000 to opt for a short sale. 
Myth #3: Homeowners must be pre-approved by their lender to be eligible for a short sale.
Debunked:  Absolutely not true. By and large, most lenders will consider short sale offers. However, each lender may have unique and specific processes to follow, from listing the home to the acceptance of a short sale. Bypassing any part of this process may result the sale not closing, so be sure to follow each lenders’ processes closely.

Myth #4: Short sales never close.  
Debunked:  Obviously not true. In some areas of the U.S., nearly 50% of all closings are considered to be “distressed” properties, meaning REOs and short sales.

Myth #5: Short sales take months (and months) to close.  
Debunked:  The short sale processes must be learned. Once mastered, it may not be uncommon to close a short sale in 30 days.  However, certain idiosyncrasies may slow the process and each lender presents their own unique set of specific challenges. No two short sale transactions are identical. 


Myth #6: Damage to the homeowner’s credit standing is comparable in a short sale and a foreclosure. 
Debunked:  In many cases, credit repercussions and deficiency protections are more damaging with a foreclosure. Short sale transactions can often lead to faster financial recovery for the homeowner and should be carefully considered.
Note: If the homeowner missed no mortgage payments, they may be eligible to finance the purchase of a home immediately following a short sale transaction.  


Myth #7: Following a short sale, the homeowner will be ineligible to purchase another property for the next 5-7 years.  
Debunked:  Not true. Using conventional lending guidelines, some consumers may obtain a Fannie Mae backed mortgage a short 24 months after the close of their short sale. 


Myth #8: After a short sale transaction, the homeowner will receive a 1099 and be forced to declare the loss as income.
Debunked: The owner may indeed receive a 1099, but due to the 2007 Mortgage Forgiveness Debt Relief Act, among other considerations, the homeowner may not owe any taxes on their transaction.*
Note: This Act is due to expire at the end of 2012.


Myth #9: The lender will sue the homeowner after the close of a short sale (or foreclosure, or deed in lieu of foreclosure) for the deficiency.
Debunked: California has certain anti-deficiency protections in place for short sales and foreclosures, depending on the circumstances.*


Myth #10: As an agent, I don’t need additional training to learn all of the ins and outs of the short sale process. And if I wait long enough, the market will recover so I may not need to deal with short sales at all.
Debunked: How long are you willing to wait? Based on the most recent housing reports, home values are still falling. Hopefully, 2012 will see the bottom of the housing market but price recovery may continue to take some time. 

*As an agent, we can not and WILL NOT offer accounting, tax, or legal advice. Please refer questions regarding these topics to appropriately trained professionals.


REPRINTED FROM CALIFORNIA ASSOCIATION OF REALTORS®
Copyright © 2012 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

REAL ESTATE AGENT 

Perfect View Of the World About RE Agent! What missing is the BUYER and the SELLER !

28270 Via Santa Rosa, Temecula, CA 92590

OPEN HOUSES ON SUNDAY
12 to 5pm
28270 Via Santa Rosa, Temecula, CA 92590

$1,075,000
READY TO MOVE IN!!

5 bedroom 3 bath 4629 sq. ft

Call For Info

An Exquisite Custom Estate Located In The Beautiful

Temecula Hills of De Luz. Double Door Entrance, Cathedral Ceilings,

Great Room Opens To Expand Gourmet Family Kitchen. Large Formal

Dining Room For Entertaining. 

Peaceful, serene and private but only 5 minutes to Old Town Temecula

and 10 minutes to Temecula Wine Country.

An Exquisite Custom Estate Located In The Beautiful and serene Temecula West Hills of De Luz, in a private community of Santa Margarita Ranchos. Ready To Move in Condition. A long driveway leads up to the privacy of this home. The Beautiful Wooden Double Door Entrance, lead onto a Hugh Great room with Entertainment Center. Vaulted Ceiling & Fireplace.
Opens To Expand Gourmet Stylish Kitchen, Granite and Top Of The line Stainless Steel apprliances, center island. Large Formal Dining Room For Entertaining. Expansive Master Suits with a Fireplace and hugh walk-in closet. Contemporary master bath with double doors shower. An Office or Study, Library or Exercise Room. Carpet & Travertine all through the home. Laundry room with extra storages. Professionally landscaped, Sprinkler through out the whole lot. Three car garage. Alarm Systems, Central Vac. Private sanctuary of a garden, majestic oak trees, orchards of 100+ mature HASS avocado, 100+ Persimmon trees. (Buyer to verify). Room for Tennis or Sport Court, Pool, Spa & Horses. Fantastic views. 5 mins to I-15, Old Town Temecula & Shopping. 

Property Features

	Location Information
	County: Riverside Map Code: 978F3 MLS Area: W Deluz/Sandia/Ranchos/S R

	Interior Features
	Rooms: Den, Dressing Area, Entry, Family Room, Jack & Jill, Living Room, Master Bedroom, Study/Office, Utility Room, Walk-In Closet, Walk-In Pant Interior: Intercom, Security System, Smoke Detector, Storage Space, Vacuum Central Master Bedroom: Yes Dining Room: Yes Family Room : Yes Den: YES Living Room: Yes Fireplace YN: Yes Floors: Stone/Travertine, Wall-To-Wall Carpet Laundry: Individual Room Entry: Yes Walk In Closets: Yes

	Exterior Features
	Stories: One Level Roof: Slate Parking Description: Driveway, Private, On Site, Parking Space Garage Spaces: 3 Yard: Yes Sprinklers: In Front, In Rear, On Side, Drip System Fencing: Chain Link Patio: Yes Lot Sq Ft: 196892 View YN: Yes Is One Story: Yes

	Additional Information
	Year Built:  2008 Year Built Source:

	Listing Office Information
	Agent Name: Jieranai Maier Office Name: Tarbell Realtors-Temecula

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http://28270viasantarosa.tarbell.com/
http://JieranaiMaier.com
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