Going Long on Short Sales- Money in Your Pocket?
Over the last year many home buyers have been panning for GOLD with SHORT SALE offers. The typical short sale scenario is that the seller is upside down on the mortgage(s) and the buyer is hoping to capitalize on market conditions. However, most buyers have been very frustrated and disappointed with the results. Even if the seller agrees to take the buyer’s offer price, the lack of ANY response from the lenders, time delays, and the volumes of paperwork involved have made the experience less than satisfying or rewarding.
There is an old saying that “too many cooks ruin the stew” and such is often the case with short sales. The problem is there are too many people involved with self-serving interests and trying to hold the deal together can be challenging. Short sales are a moving target and the buyers and sellers can be left hanging out to dry with nothing to show for their efforts but frustration and wasted time, not to mention money spent on appraisals, inspections, and other reports. Statistics show that only about 30 -35% of short sale offers are accepted and only about 10% to 15% of short sale offers actually come to fruition. With changing market conditions and the time delays, buyers may be better off purchasing property on the open market. In years past, many lenders have been receptive to short sales. But my experience last year (2008) was that most lenders were so buried with short sale requests (mostly in other counties) that they did not even respond to short sale offers in San Francisco. The lenders chose to take distress property into inventory through the foreclosure process, vacate the premises (absent the homeowner or tenant), then list and sell the property to the highest bidder on the open market.
However, all this being said, the process has now been streamlined to make short sale offers easier to accomplish. Some of the big players, Bank of America and Wells Fargo have announced new cooperative programs to help expedite the SHORT SALE process. BofA has increased staffing, updated training and created a dedicated short sale call center at (866) 880-1232. Of course, MONEY is always an incentive. On May 14, the Treasury Department announced a PLAN to “provide incentives for servicers and borrowers to pursue short sales.” Treasury will pay a servicer $1,000 for completing a successful short sale, it will pay the borrower $1,500 to assist with relocation expenses, and it will pay second-lien holders who release their claims up to $1,000. Lenders are now giving the short sale process a second look as a less costly means to rid excess inventory and many sellers are finding a quicker and potentially less self-destructive way to get out from under over-encumbered property.
On February 18, the Obama Administration announced the Making Home Affordable (MHA) Program, a comprehensive plan to stabilize the U.S. housing market. As promised, two weeks later on March 4, the Administration published detailed program guidelines.
San Francisco Open House Search
The San Francisco Association of Realtors has created a quick and easy link for the general public to find and locate OPEN HOMES in San Francisco. Check it out.
Now is the time to APPEAL your PROPERTY TAX basis.
Watch Property Tax Appeals Process in News Online | View More Free Videos Online at Veoh.com">http://www.veoh.com/videos/
Watch Property Tax Appeals Process in News Online | View More Free Videos Online at Veoh.comFortunately, San Francisco property values have held steadier than most cities, but there are distressed sales that can be used to lower your tax basis saving you hundreds or thousands of dollars every year.
It may also be prudent to start the formal appeal process as well as filing the quick online property tax appeal forms on the links listed below.
Here are the direct internet links to the San Francisco Assessor’s Office for property tax appeals of SINGLE FAMILY HOMES and CONDOS or for TIC units ONLY.
Questions and more options about the propery tax appeals process:
Do I have any recourse if I disagree with the valuation placed on my property by the Assessor?
Yes. If you disagree with the assessed value of your property you may contact the Office of the Assessor/Recorder at (415) 554-5596. They can provide you with information on how the value was established.
If you still disagree with the assessed value of your property after reviewing it with the Office of the Assessor/Recorder, you may contact the Assessment Appeals Board for the purpose of appealing your assessment.
If you choose to appeal your assessment, you must still pay your property tax in full by the appropriate deadlines; otherwise, you will incur penalties while the case is on appeal. If your appeal is granted, a refund will be issued to you.
Appeal applications and further information about the appeal process can be obtained by contacting the Assessment Appeals Board. Please call if you have any questions. I can also provide you with recent sales to support value changes in your area.
Obama’s Federal Housing Tax Credit Explained
Did you know that even couples with over $150,000 income may qualify for a partial tax credit refund?
The National Association of Home Builders website explains the First-Time Home Buyer Tax Credit.
