Best Bidder Home Sale at 1449 Ohare Dr in Benicia, CA this Weekend 6/21-6/22 1-5PM ONLY–Bidding Starts at ONLY $200,000!!

Best Bidder Home Sale in Benicia, CA this Weekend 6/21-6/22 1-5PM ONLY

3 Bedroom 3 Bath House Bidding Starts at only $200,000!!

Best BidderBEST BIDDER HOME SALE- Saturday and Sunday 6/21-6/221-5PM ONLY….You must view the property in person this weekend in order to place a bid! All initial bids are due by Sunday at 5PM. Final bidding will happen by phone starting at 6Pm on Sunday. Cash or Loans Okay!! EVEN VA & FHA Loans are Acceptable if Buyer is able to pay for any lender required repairs!

This is not a foreclosure or a short sale and it is NOT ON THE MLS. This is just another way to sell a home for top dollar quickly –

See more details and pics at:

http://robinwatsonbird.com/listings/0,88112/1449_Ohare_Dr_Benicia_CA_94510/#sthash.xytxxEus.dpuf

Great News for People Who Did Short Sales in 2012 and 2013 in California!

Great News for People Who Did Short Sales in 2012 and 2013 in California!

Just got this great letter and had to pass it along!

December 4, 2013

Dear Robin,

The good news just keeps continuing.

As we anticipated, C.A.R. today received a letter from the California Franchise Tax Board (FTB), obtained by the State Board of Equalization, clarifying that California families who have lost their home in a short sale are not subject to state income tax liability on debt forgiveness “phantom income” they never received in a short sale.

Last month, in a letter to California Sen. Barbara Boxer, the Internal Revenue Service (IRS) recognized that the debt written off in a short sale does not constitute recourse debt under California law, and thus does not create so-called “cancellation of debt” income to the underwater home seller for federal income tax purposes. Following the IRS’s clarification, C.A.R. sought a similar ruling by the California FTB. Now with the FTB’s clarification, underwater home sellers also are assured that they are not subject to state income tax liability, rescuing tens of thousands of distressed home sellers from California tax liability for debt written off by lenders in short sales.

We are pleased with the recent clarifications issued by the IRS and the California Franchise Tax Board, which protect distressed homeowners from debt relief income tax associated with a short sale in California. We would like to thank Sen. Boxer and BOE member George Runner for their leadership in obtaining this guidance from the IRS and FTB. Distressed California homeowners can now avoid foreclosure or bankruptcy and can opt for a short sale instead, without incurring federal and state tax liability, even after the Mortgage Forgiveness Debt Relief Act of 2007 expires at the end of this year.

Sincerely,

Kevin Brown
2014 President
CALIFORNIA ASSOCIATION OF REALTORS®

Copyright © 2013 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

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Some Active Military & Veterans Can Buy a New Home with a VA Loan Even if Their Current Home is Upside Down and Even if They Have Done a Short Sale on a Property in the Past!

The biggest challenge for people whose homes are upside down (that is, they owe more money on it than it is worth) is buying a new home. Typically, they will one of two alternatives:

1) They will have to short sale their property and wait 2-4 years before a lender will loan them money to purchase another home.

2) Buy another property when their current one is upside down .

In order to do option 2, your payments on the first property have to be current, you have to have a legitimate reason for purchasing a new home (cannot just be buying another home so you can bail on the first home), and you have to qualify for the payments on BOTH the old and new properties! If the underwater property is a rental property and you can provide evidence that you have been renting it out for at least 2 years, then a portion of the rents can be used to off-set the ability to pay for both properties.

Active Military and Veterans have a third option because the VA does not have what they term a Departing Residence Rule; that is, they do not have an equity requirement for the home that the person is leaving. That means that they will loan money to buyers who have an upside down property. Of course, there are some requirements and they all have to do with the new lender doing their due diligence to make sure that the buyer is not planning to do a buy and bail. I never have understood why a new lender would care what the buyer does as long as they pay their new mortgage that they are underwriting, but after the huge numbers of buy and bails that happened in the not so distant past, there have been new guidelines put in place to help prevent that from happening as much as possible in the future.

Here are the main non-credit score related guidelines for the third option per my understanding after speaking with several VA lenders:

1)       The current under water property cannot be secured by a VA loan.

2)      The current property cannot be on the market for sale.

3)      Person must be current on the payments for the underwater property.

4)      The buyers have to adequately answer the buy and bail related questions that the lender asks them (for example, why are they moving. If the person is moving to a comparable home in the same area simply because it is cheaper, that would not pass. There needs to be a reasonable explanation as to why the person needs to move).

5)      Buyer must be planning to rent out their current property OR qualify to pay both mortgages.

6)      If the buyer is planning on renting out the original property, then they will usually have to provide adequate documentation to the lender showing that they have secured a tenant for the home prior to the loan being funded. They used to accept a copy of a signed rental agreement, but since those can easily be forged, they usually require additional proof that you have a real tenant and not just a friend or make believe person on the rental agreement. Things like copies of the deposit check or perhaps evidence of the deposit being cashed or other things may be required.

7)      If the property is being rented, then the amount of the rent can be used to off-set the amount of the “be able to make both payments” requirement.

According to the VA lenders I have spoken to, there is not a requirement regarding how long the property has to be rented before it can be sold, so if being a landlord and renting the property does not work out for you for the long haul, then there would not be a reason that you could not sell it later.

Be aware, however, that if your home us still under water when you decide to sell it,  your short sale lenders for your property may require you to bring some amount of money to the table to do the short sale if they do not perceive you as having a hardship, especially after being able to purchase the new property. One explanation for your financial ability to purchase the property is the $0 downpayment requirement for VA loans and the rent from your tenant, so that latter part should not factor in too much especially if you had a real reason for needing to move…aka…a viable hardship.

In California, if you have original purchase money loans, you can often not pay anything to the short sale lenders to do the short sale because of the loans being non-recourse in the state of California. Refinanced loans and HELOCs, even original purchase money HELOCs, are treated a little differently, so I would advise you to consult with an attorney and tax professional to find out any potential implications for your particular situation. If you are current on all of your payments, old property and new, I can almost guarantee that you will need to pay them something, unless the loans are original purchase money loans and there is not a HELOC involved.

I have some great Active Military past clients whom I helped short sale their primary residence a couple years ago and they moved back into their previous primary residence which they had rented out. Since moving back into their previous home, they have had another child and their home just is not big enough for them anymore, especially when the husband is deployed and they need an extra bed for the additional adult who comes to stay with them to help take care of the children while the mother is working. Just last month, I helped them get into contract on a brand new home big enough to accommodate their family. They plan to rent their current home, just as they did before they moved back into it a couple years ago, so will just need to secure a renter and provide documentation of the rental agreement prior to the loan being funded.

The VA loan limit in Alameda and Contra Costa County is $1,000,000 and is $417,000 in harder hit areas like San Joaquin and Solano Counties. If the property the person is wanting to buy is more than the loan limit, the buyer will have to pay the difference, or if you use the lender my clients are using, you only have to pay 25% of the difference!

If you or someone you know is eligible for a VA loan and currently own an upside down property and need to move, give me a call or send me an email and we can discuss your situation to see if we might be able to get you into a new home using your $0 down VA loan. My cell is 925-577-8692.

I am glad there are at least some lending perks for our military folks right now since they put their lives at risk so we can all have the American Dream.

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Buying a Home in the Bay Area after doing a Short Sale in Livermore, the Tri-Valley, East Bay Area & California

I had a very exciting thing happen to me a couple days ago while sitting in my Realty World-No Pressure Realty office in downtown Livermore, CA.  A couple of great past clients called me wanting to purchase a home. What was great about these clients is that I helped them short sale their primary residence in Vacaville, CA  in Solano County a little over two years ago and they want to buy a home in the Concord, CA area in Contra Costa County because it would be closer to the wife’s new job location.  They were interested in conventional financing options as well as possibly using a VA loan since the husband is in the military.

They have a unique situation…they had moved into their rental property in Fairfield, CA after they did a short sale on their primary residence in Vacaville, CA. That property is also under water, so I needed to find out how they would be able to buy a new home in Bay Area while still owning a property that was upside down.

As soon as they contacted me, I contacted a few of the loan consultants that I work with to see if they would be able to help them get a loan for a new property.

On December 1, 2010. Margalit Ir, Mortgage Loan Officer at Bank of America stated:

The guidelines at Bank of America to purchase a property after a short sales is as follows:

 Loan to Value > 80%  will be 5 years from the date of the short sale

 Loan to value < 80% will be 2 years from the date of the short sale.

Credit must be re-established with good repayment history.  Rental Income can only be considered if rent has been received for two years and is declared on the 1040 Tax returns.  Schedule E.

I also spoke to Delmy Steward, a great Sr. Loan Consultant at J.W. Bradley. She responded to their scenario of getting a loan after doing a short sale as follows:

I will check into it but I think we need 3 years from the date of a short sale/foreclosure.  They are viewed the same on the guidelines.  I do VA loans also and they do require a 3 year period from the short sale/foreclosure …

Since they are occupying a home that is upside down and does not have 30% equity even if they put on the application they will rent it out, we can’t use rental income to offset payment.  They will have to qualify with the old and new payment . I will have run their credit to be sure where they stand.

Both Delmy Steward and Margalit Ir are fantastic very resourceful loan agents who can work quickly and often get loans done when others cannot. 

If you or someone you know would like to speak to Delmy Steward or Margalit Ir about getting pre-qualified or preapproved for a loan, Margalit Ir can be contacted by phone at (925) 208-2475 and via email at margalit.a.ir@bankofamerica.com ; her website is http://mortgage.bankofamerica.com/margalitair . . Delmy Steward can be reached by phone at 925-864-7717 and via email at delmy.steward@wjbradley.com.

Another possibility is FHA financing after completing a short sale. If the short sale was non-deficient and the seller had not been late on any of their mortgage payments, and a few other guidelines, there is an FHA loan program that does loan to people right away after doing a short sale. Given the current California housing market and the fact that most of the properties for sale in Livermore, Alameda County, Contra Costa County, Solano County, the tri-valley, and East Bay, Bay Area are either short sales or foreclosures, a person using the special FHA financing after doing a short sale would likely need to rent or live in some sort of transitional housing for a few months until a new property could be identified and purchased. There is definitely a benefit to using FHA financing…with its very low 3 1/2% down payment, so the inconvenience of transitional housing may be worthwhile for many.

I will keep you posted to let you know how things turn out with my great clients.

Are you considering buying a home in California before or after doing a short sale? Have you already bought a home after completing a short sale? Did you use conventional or FHA financing? Who did your loan? Did you get a loan from a bank or a mortgage broker? I would love to hear about it!

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