Chico Foreclosures
| Asking | Address | Beds | Bath | Year Built | Sq Feet |
| $45,000 | 184 Camino Sur | 3 | 2 | 1999 | 1560 |
| $66,900 | 141 W Lassen Ave. | 2 | 1 | 1962 | 766 |
| $99,000 | 1114 Nord Ave | 3 | 2 | 1990 | 960 |
| $99,900 | 1415 Sheridan Avenue | 1 | 1 | 1981 | 714 |
| $147,800 | 2099 Hartford Dr. | 3 | 2 | 2005 | 1375 |
| $148,000 | 2099 Hartford Drive | 3 | 2 | 2005 | 1375 |
| $151,950 | 2850 Clark Way | 2 | 2 | 2004 | 1716 |
| $157,900 | 3152 Bell Road | 1 | 1 | 1954 | 1070 |
| $170,000 | 7 Olympus Lane | 3 | 2 | 1985 | 1248 |
| $172,900 | 1164 Lupin Avenue | 3 | 2 | 1992 | 1378 |
| $180,900 | 1192 LUPIN AVE | 3 | 2 | 1992 | 1228 |
| $182,500 | 862 E 5th Avenue | 3 | 2 | 2005 | 1408 |
| $185,000 | 1039 Blue Ridge Ave | 3 | 2 | 1984 | 1039 |
| $187,000 | 2558 E 20th St | 2 | 2 | 2004 | 893 |
| $189,900 | 18 Arbor Drive | 3 | 2 | 1960 | 1378 |
| $194,900 | 9463 Gerke Street | 3 | 3 | 1986 | 1744 |
| $199,900 | 823 Oak Lawn Avenue | 2 | 2 | 1948 | 672 |
| $208,500 | 773 Caprice Way | 3 | 2 | 1990 | 1248 |
| $218,000 | 3 Tradewinds | 3 | 2 | 1992 | 1236 |
| $227,000 | 1185 Deschutes Dr | 4 | 2 | 1999 | 1383 |
| $229,900 | 3265 Rockin M | 4 | 2 | 1970 | 2972 |
| $245,000 | 1622 Spruce Avenue | 2 | 1 | 1917 | 1687 |
| $249,000 | 13 Venetian Court | 3 | 2 | 2010 | 1408 |
| $249,000 | 12 Venetian Court | 3 | 2 | 2010 | 1408 |
| $249,900 | 1388 hawthorne | 3 | 2 | 1965 | 1634 |
| $249,900 | 1913 Spruce Ave | 2 | 1 | 1950 | 4460 |
| $269,000 | 303 Legacy Lane | 3 | 2 | 1998 | 1780 |
| $274,000 | 28 RUBICON Court | 4 | 2 | 2006 | 1968 |
| $292,900 | 6 Heartwood Ct | 4 | 2 | 1996 | 1654 |
| $297,000 | 33 Bunker Court | 3 | 2 | 2003 | 1734 |
| $459,900 | 217 Eagle Nest Drive | 3 | 2 | 2001 | 2739 |
7 Mistakes in a Short Sale
Short Sale Mistake #1: Priced Wrong
Short sale prices remind me of the story of Goldilocks and the Three Bears. Some are too high, some are too low and some are priced just right. Short sales that sell are priced appropriately. The price should be attractive to the following parties:
- The Short Sale Bank
- The Buyer
- The Buyer’s Agent
- The Seller
- The Buyer’s Lender
Appealing to all five of these entities may seem impossible to do, but it is possible. There is an art to pricing a short sale. I can honestly report that all my short listings in Sacramento — in our soft market — receive multiple offers, and they close.
Short Sale Mistake #2: Inexperienced Listing Agent
Particularly in falling markets, agents who have little business are attracted to short sales like moths to a flame. Sellers should find out how many short sales a proposed short sale listing agent has actually closed apart from the number of short sales the agent has listed.
If many of the agent’s listings have been on the market for more than 90 days without an offer, something is seriously wrong. Agents who succeed in this business have a minimum of two years of experience negotiating with short sale banks.
Short Sale Mistake #3: Bad Marketing
Some agents believe pricing alone will sell a short sale, and they persuade sellers to place a ridiculous price tag on the home. Then the agent purposely refuses to adequately market the home. Not only does the price need to be reasonable, but the home deserves the same type of treatment as any other listing.
Short sales should be exposed to the widest possible pool of buyers, which means plastering that listing on all the major web sites, and includes doing direct mail marketing and networking.
Short Sale Mistake #4: Showing Restrictions
Buyer’s agents, bless their overworked and tired hearts, will sometimes take the path of least resistance. If the listing requires an appointment, a buyer’s agent might pass over that home in favor of a listing without appointment restrictions.
When a buyer’s agent calls to announce a showing, the response should be, “Come on over. We’re ready!” Short sale listings that restrict activity such as no showings on Sunday, for example, may never get shown at all.
Short Sale Mistake #5: No Photographs
Submitting a listing to MLS without multiple photographs — or worse, no photograph at all — is like slamming the door in the face of buyers. Buyers aren’t likely to return. A listing with missing photographs sends messages that say nobody cares if the home sells and there’s probably something wrong with it.
On some web sites such as Realtor.com, listings with the most photographs are ranked higher, and those without drop to the bottom.
Short Sale Mistake #6: Poor Property Condition
Short sale homes benefit greatly from home staging. Sellers need to prepare the home for sale and keep it in pristine condition. If beds are unmade, toys are scattered about and the kitchen sink is filled with dishes, buyers can’t see past the mess. Moreover, some buyers are worried that if the home is in disarray during a showing, the sellers may trash it upon vacating.
Short Sale Mistake #7: Uncooperative Sellers
Sellers need to submit required documentation to the bank in a timely manner. If the package is incomplete, the bank won’t process the file, and that will delay approval.
If a seller refuses to submit personal financial information and a reasonable hardship letter, the seller will not qualify for a short sale.
What is a short sale?
What is a short sale?
The selling of a home short of the current mortgage amount. Both terms (sale & payoff) mean the property is worth less than what is owed on it – over encumbered, upside down or underwater and both terms used interchangeably.
Who is a short sale good for?
- Someone who owes more than the value of their home
- A homeowner who has experienced or is experiencing a financial hardship
- A homeowner who is no longer able to afford their mortgage
- Homeowners who have been denied for a loan modification
What are the benefits of a short sale vs. a Foreclosure?
- Emotionally less impacting to you and your family as opposed to going through a foreclosure.
- Some lenders provide financial incentives of up to $3,500 for moving costs.
- Least impacting on your credit compared to a foreclosure.
- You can buy another home within 1 – 3 years depending on other items on your credit.
What are the consequences of a short sale?
- Everybody situation is different
- We will analyze your situation
- Free consultation – call TODAY!
We always recommend that homeowners consider all of their options. Please contact us for a free consultation.
Strategic Default
What is a Strategic Default?
A strategic default is the decision by a borrower to stop making payments (i.e. default) on a debt despite having the financial ability to make the payments. This is particularly associated with residential and commercial mortgages, in which case it usually occurs after a substantial drop in the house’s price such that the debt owed is (considerably) greater than the value of the property – the property negative equity or “underwater” – and is expected to remain so for the foreseeable future, such as following the bursting of a real estate bubble. Such borrowers are called “walkaways.”
Effects
The borrower after deciding to not make payments any more can live (free of the costs of payment or rent) until the lender forecloses which may take from several months to years. A borrower may use this time to extinguish or negotiate other debt. Mortgage lenders may negotiate with defaulting borrowers to assure maintenance and occupancy of the property until the lender can take title and market the house, and may provide the defaulting borrower with greater than the minimum legal notice to quit (which can be as little as three days) and may even agree to pay a fee to leave the home in pristine condition.
Foreclosure of the borrower’s house will result in a negative entry on the borrower’s credit rating, possibly making obtaining loans in the future more difficult or more expensive for the borrower. With otherwise good credit a new mortgage from US government agencies will be denied until 3 (FHA) to 5 years (FNMA) have passed since the actual date of foreclosure. The difference between the value of the property at the time of foreclosure and the amount of the note (assuming the note is larger) is considered by the IRS as “debt forgiven” and is “income” subject to income tax. For a short period ending at the end of December 2012 due to the Mortgage Forgiveness Debt Relief Act of 2007, this “phantom income” will not be subject to tax.
Bank of America Short Sales
It’s been widely noted that Bank of America has been one of the most painfully slow banks when trying to complete a Short Sale.
Bank of America Short Sales are starting to Speed Up!
Bank of America introduced a new automated system that I use to upload our Short Sale information. The system is called Equator. Equator has its problems too, however it has drastically changed Bank of America’s 1st phase of the short sale process. You can read about BOA Short Sales directly from their website: Bank of America Short Sale
Jodi Buda, your real estate consultant works to represent the seller to the best of our ability. We are starting to see approvals in less than 60 days and sometimes less than 30 days from Bank of America! That is a HUGE change from the previous 90-120 days minimum.
That is the good news. The BAD NEWS is still the red tape issue. Just remember it’s never over until all docs are signed, money is funded, and the deed is recorded. Even at the last hour, I have seen BofA change the rules and more negotiations are still in order. When doing a short sale especially with BofA, patience is your bestfriend! Have a Bank of America Mortgage and need to Short Sale?
The BOA short sale process may have started to speed up due to the new Equator system, but keep in mind it is still an automated system. Many anxious sellers, owners, agents, etc. get fairly irritated with not being able to get an answer immediately. Calling BOA will most likely not help as they just refer us back to Equator.