The Mortgage Debt Relief Act Expires Dec 31, 2012

The Mortgage Debt Relief Act expires December 31, 2012. That means that this is the last year you can do a short sale and avoid having to pay income taxes on the debt forgiveness of the short sale.

And since most short sales take 4-6 months to close escrow, time is running out to do a successful short sale.

If you plan on doing a short sale this year, you need to get started as soon as possible to make sure your short sale closes escrow in 2012.

To get started or for more information, call The Battiata Real Estate Group at 760-930-9898.

Will I Qualify for a Short Sale?

Many people are surprised to learn that they can qualify for a short sale with little or no financial hardship and without being behind on their mortgage payments. This is called a Strategic Short Sale.

In the past, lenders required borrowers to have a major financial hardship and to be delinquent on their mortgage payments in order to qualify for a short sale.

This is no longer the case. Hence, the birth of the Strategic Short Sale.

At The Battiata Real Estate Group, we have done hundreds of short sales for borrowers who have no financial hardship to speak of, and have never missed a payment or been behind on their payments.

If you want to do a short sale on your upside down home, and do not have a financial hardship, it is critical that you hire an agent who is experienced at negotiating strategic short sales.

If you are considering a short sale, contact The Battiata Real Estate Group at 760-930-9898 or email us at info@battiata.com.

How to Minimize the Impact of a Short Sale on your Credit

You can dramatically minimize the impact of a short sale on your credit by continuing to make your payments during the short sale process. There are 2 ways that a short sale impacts your credit: one is the short sale and the other is the missed payments, assuming you stop making your payments.

The primary impact of a short sale comes from the missed payments, not from the short sale itself. This is why you will hear people say that a short sale and a foreclosure are similar as far as the impact on your credit. This is because the lead-up to the short sale or the foreclosure is the same, assuming the borrower is not making payments during the short sale. In other words, in both cases, the borrower misses multiple payments, the lender files a Notice of Default (NOD) and in some cases, a Notice of Trustee Sale (NOTS), although the NOTS is postponed in a successful short sale.

If, however, the borrower keeps current on their payments during the short sale process, the impact is very, very minimal and does not even appear until after close of escrow. “Debt settled for less than the amount owed” is the way a short sale is reported, and it typically only impacts a borrower’s credit score by from 10-50 points, at the most.

Note: I have seen many instances where a borrower with good credit (i.e. mid to high 700′s or higher) does a short sale and keeps current during the process and only incurs a 10-20 point hit on their credit.

So, if you want to minimize the impact of a short sale on your credit, keep making your payments during the short sale process. In addition, be sure you hire a listing agent who is extremely experienced in short sales so that they can negotiate a short sale approval with your lender despite the fact that you are current on your mortgage payments. At The Battiata Real Estate Group, we have done hundreds of short sales for clients who have never missed a payment or been behind on their mortgage payments.

Battiata Real Estate Blog: US Short Sales Surpass Foreclosures

The number of short sales officially surpassed the number of foreclosures in January 2012, according to a Bloomberg News article that quoted a recent LPS study.

Short sales accounted for 23.9 percent of home purchases in January, the most recent month available, compared with 19.7 percent for sales of foreclosed homes, data compiled by the Jacksonville, Florida-based company show.

“It’s a fairly recent phenomenon that short sales have been increasing,” Jonathon Weiner, a vice president in the applied analytics division of Lender Processing Services, said in a telephone interview. “Short sales should be the dominant way of disposing of assets” in distress, he said.

As I have written many times in this blog and elsewhere, while it took them almost 5 years to figure it out, lenders have finally realized that they lose significantly less money when they do a short sale versus going through the foreclosure process.

For this reason, I believe we will see this trend continue as short sales become lenders dominant, preferred method of handling distressed assets.

Seminar for Upside Down Homeowners Sat April 21

The Battiata Real Estate Group will be holding a Seminar for Upside Down Homeowners Saturday April 21 at 10am at The Del Mar Hiltion.

Attendees will get the facts from industry experts on foreclosure, deed in lieu of foreclosure, short sale and loan modification, including the tax, legal & credit implications of each.

Topics will include:

Government and private short sale & loan modification programs (incl. HARP & HAFA) and who will qualify.

Lender Outreach programs offering cash incentives to homeowners of up to $35,000 for successful short sales.

How to do a strategic short sale on your home regardless of whether or not you have a financial hardship.

Short Sale FAQ’s, including rental properties, 2nd homes, luxury homes with loan balances of $1 million & higher, asset protection etc.

Credit impact of a short sale, loan modification, foreclosure etc and how to repair your credit afterwards.

Tax implications: The Mortgage Tax Debt Relief Act (expires Dec 31, 2012) & The Insolvency Exclusion
How to avoid signing a promissory note or making a seller cash contribution in a short sale.

Attendees will leave this seminar with a clear understanding of all of their options. This seminar is FREE but you must register to be admitted as space is limited.

This is our 12th Upside Down Homeowner Seminar in the past year and each and every one has been full to capacity, so do not delay.

To register or for more information call 760-930-9898 or click here

2012: The year of the Strategic Short Sale

2012 is shaping up not just to be the year of the short sale, but the year of the strategic short sale.

A strategic short sale is a short sale with no financial hardship. In other words, the seller makes the decision to do a short sale on an upside down home even though they can make their payments and are not behind. It is simply a business decision; a proactive move to get out from under an upside down property.

At the Battiata Real Estate Group, we have seen a dramatic increase in the number of southern California homeowners who are opting to do strategic short sales on their upside down homes. This may be in part due to the fact that the Mortgage Tax Debt Forgiveness Relief Act expires December 31, 2012. This is the bill that excludes most homeowners from paying taxes on the debt forgiveness of a short sale.

Many people wrongly assume that lenders require a financial hardship in order to do a short sale. While this used to be the case, it is no longer. Most lenders will do a short sale with absolutely no financial hardship in order to avoid foreclosure.

If you are interested in a strategic short sale, contact my office at 760-930-9898 or email me directly at matt@battiata.com.

Buying after a Short Sale: FHA waives waiting period

FHA has introduced new guidelines for homeowners qualifying to buy another home after completing a short sale. Until now, homeowners had to wait 2-3 years after a short sale before they could qualify for an FHA loan. Now, in cases of a medical hardship or relocation due to job change/loss, FHA has waived the waiting period.

Here are the qualifying guidelines for this program:

1) Homeowner must have been current on their mortgage and all other credit obligations for the 12 months leading up to their short sale.

2) Homeowners must document “hardship” defined as:

a) Job loss and subsequent job transfer/relocation.
-or-
b) Catastrophic medical bills (and/or a death in the family) incurred by a member of the borrower’s “nuclear family.”

3) They must be downsizing and relocating to another area.

4) Credit scores must be above 620 and any outstanding collections (i.e. medical bills) need to be paid in full through escrow at close of escrow.

How soon can I buy again after a short sale?

“How soon can I buy again after a short sale?”

“How long do I have to wait?”

As an agent who works with short sales every day, I am asked this question all the time.

The information below is current as of February 2012. I will update our Battiata.com blog as any of these guidelines change.

NOTE:

The waiting periods below do NOT apply when applying for a non government insured loan, or when the derogatory item has been deleted from the borrower’s credit report (i.e. Short sale or missed payments deleted). We see borrowers who have repaired their credit or are borrowing from a credit union etc buying within six (6) months to a year after a short sale.

For more information, go to the websites of Fannie Mae , HUD and Freddie Mac .

2012 Conventional Waiting Guidelines (Fannie Mae)

Short Sale / Deed in Lieu of Foreclosure –

TWO (2) Years up to Maximum 80% Loan to Value | 20% Down Payment

FOUR (4) Years up to Maximum 90% Loan to Value | 10% Down Payment – Subject to Private Mortgage Insurance underwriting guidelines.

SEVEN (7) Years above 90% Loan to Value | with less than 10% Down Payment – Subject to Private Mortgage Insurance underwriting guidelines.

Bankruptcy

FOUR (4) years after your bankruptcy has been discharged.

Foreclosure

SEVEN (7) years after the sale date of your foreclosure.

FICO score requirement is 660 or higher

Fannie Mae has reduced waiting periods in cases of extenuating circumstances. Extenuating circumstances include:

Death
Illness
Job Transfer
Accident resulting in severe injury

2012 FHA Waiting Guidelines

Short Sale with late payments – You may apply for a FHA insured loan THREE (3) years after your short sale closes escrow.

Short Sale with no late payments – No Waiting Period.

Bankruptcy Ch 7 – You may apply for a FHA insured loan TWO (2) years after your Chapter 7 Bankruptcy has been discharged.

Bankruptcy Ch 13 – You may apply for a FHA insured loan ONE (1) year after your Chapter 13 Bankruptcy has been discharged.

Foreclosure – You may apply for a FHA insured loan THREE (3) years after your home has gone to foreclosure.

FICO score requirement is 640 or higher

2012 VA Waiting Guidelines

Short Sale with late payments – You may apply for a VA loan TWO (2) years after a short sale (unless your short sale was on a VA loan in which case restrictions apply).

Short Sale with no late payments – No Waiting Period.

Bankruptcy – You may apply for a VA loan TWO (2) years after a Bankruptcy.

Foreclosure – You may apply for a VA loan TWO (2) years after a foreclosure.

FICO score requirement is 620 or higher.

Deluge of Short Sales predicted in 2012 as Debt Forgiveness Act nears End

Experts are predicting a “deluge” of short sales in 2012, as under water homeowners race to start & complete short sales prior to the expiration of the Mortgage Forgiveness Debt Relief Act, which ends on December 31, 2012.

The Debt Forgiveness Act, which was passed by former President George Bush in 2007, excludes homeowners who do a short sale or go through a foreclosure on their primary residence from having to pay income taxes on the forgiven debt, with certain restrictions.

Both short sales and foreclosures are considered debt forgiveness, which is considered ordinary income by the IRS and CA State Franchise Tax Board.

After 2012, assuming these bills are not extended, homeowners will be forced to pay income taxes on the debt forgiveness associated with a short sale or foreclosure.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately).

A similar bill, passed by the California legislature, mirrors the federal law at the state level, excluding California homeowners from having to pay state income taxes on the debt forgiveness associated with a short sale or foreclosure.

“December 31, 2012 seems like a long way off,” said Matt Battiata, Broker of The Battiata Real Estate Group, and a nationally acclaimed real estate and short sale expert, “but short sales take an average of 4-6 months, and can take longer when buyers cancel or banks are overwhelmed. Since no one knows how backed up the banks may get this year, many people are starting early to be safe.”

Matt Battiata will host his 9th “Seminar for Upside Down Homeowners” March 10, 2012 at the Del Mar Hilton in Del Mar, CA. The Seminar is free but space is limited and past seminars have sold out. To register, go to Battiata.com, click here or call 760-930-9898.

Banks Increasing Cash Incentives for Short Sales

Major US lenders are broadening their short sale incentive programs and offering cash incentives to more and more sellers in exchange for successful short sales.

These programs, in which a seller is offered anywhere from $5,000 to $35,000 cash at the close of escrow of a short sale, were initially started as pilot programs by Wachovia & Chase.

Both Chase & Wachovia realized early on that they lost significantly less money when a seller did a short sale as opposed to forcing the bank to foreclose.

Now, with the perceived success of these pilot programs, other major banks, including Bank of America, Citi Mortgage, Wells Fargo, Litton Loan Servicing & others are starting to offer incentives as well.

“We are starting to see cash incentives more and more for our short sale clients,” said Matt Battiata, Broker of The Battiata Real Estate Group, and a nationally acclaimed real estate and short sale expert.

“We have seen incentives as high as $30,000 paid to our sellers at close of escrow on relatively inexpensive homes. The banks seem to be ramping up these cash incentive programs,” said Battiata.

The Seminar for Upside Down Homeowners Sat March 10 at 10am @ The Del Mar Hilton

Matt Battiata & The Battiata Real Estate Group will hold The Seminar for Upside Down Homeowners Saturday March 10 at 10am at The Del Mar Hilton in Del Mar, CA. This will be the 9th seminar for upside down homeowners that the Battiata Real Estate Group has held in the past year.

“There is still a tremendous amount of misinformation out there with regard to options for upside down homeowners,” said Matt Battiata, Broker & CEO of The Battiata Real Estate Group, “and with almost 50% of San Diego homeowners upside down, and The Mortgage Tax Debt Forgiveness Relief Act expiring at the end of this year, there is a huge need for reliable, accurate information.”

Attendees will learn all of their options in dealing with an upside down home, including the various government and private loan modification programs available, short refinances, short sales, deed in lieu of foreclosure and foreclosure as well as the legal, financial and credit implications of each.

The seminar is free, but space is limited and past seminars have sold out. To register call 760-930-9898 or click here.

Making Home Affordable Options

The Obama administration’s Making Home Affordable (MHA) program includes a myriad of different programs for upside down homeowners. Here is a summary of the different programs available, all of which we cover in our Seminar for Upside Down Homeowners (next seminar Saturday March 10, 2012 at 10 am @ Del Mar Hilton):

Home Affordable Modification Program SM (HAMPSM)
Principal Reduction Alternative SM (PRA)
Second Lien Modification Program (2MP)
FHA Home Affordable Modification Program (FHA-HAMP)
USDA’s Special Loan Servicing
Veteran’s Affairs Home Affordable Modification (VA-HAMP)
Home Affordable Foreclosure Alternatives Program (HAFA)
Second Lien Modification Program for Federal Housing Administration Loans (FHA-2LP)
Home Affordable Modification Program for Rural Development Loans (RD-HAMP)
Home Affordable Refinance Program (HARP)
FHA Refinance for Borrowers with Negative Equity (FHA Short Refinance)
Home Affordable Unemployment Program (UP)
Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (HHF)

To find out if you will likely qualify for any of these programs, call Matt Battiata at 760-930-9898 or register for our upcoming Seminar for Upside Down Homeowners by clicking here.

Shadow Inventory Update: 7.5+ million Homes

Shadow inventory in the United States is currently estimated at over 7,500,000 homes and growing.

Consider the following:

Banks currently own over 800,000 REO’s (foreclosures) that they have not yet put on the market, and are simply sitting on. They cannot yet afford to take the losses on these homes, so they are letting them sit vacant, accumulating fines, property taxes, back HOA dues etc.

There are 6,500,000 mortgages currently in default in the United States.

What is the cure rate of these mortgages (the likelihood that they will be brought current as opposed to going to foreclosure or short sale)?

30 days late: 29% Cure Rate (in other words, 71% will go to foreclosure or short sale)
60 days late: 5% Cure Rate
90 days late: 0% Cure Rate

While these are national numbers, these default properties are heavily concentrated in the hardest hit states of Florida, Nevada, Arizona and California.

Chase Bank pays out $30K Short Sale Incentive

Recently, you may have read about major banks paying out thousands or even tens of thousands of dollars to incentivize upside down homeowners to do short sales. News reports over the past few months have detailed stories about JP Morgan Chase, Bank of America, Wells Fargo and other lenders paying out huge cash payments to homeowners to encourage them to do short sales as opposed to walking away and forcing the banks to foreclose.

Well, I am here to report that I now have first hand knowledge of this happening.

We just closed a short sale with a sales price of $420,000 in which the lender, JP Morgan Chase, paid the seller a $30,000 incentive to close escrow.

As lenders continue to see the benefits of short sales vs. foreclosure, we expect stories like this to become more and more common.

Click here to read the approval

The Impact of a Short Sale on your Credit Report

There are 2 ways that a short sale impacts your credit.

The first is the actual short sale, which is reported on your credit as “debt settled for less than the amount owed.” This should not impact your credit until the short sale closes escrow.

The second is the missed payments, assuming that you stop making your payments. Contrary to popular opinion (even among realtors), it is not necessary to stop making your payments when you do a short sale. With that said, most people do stop making their payments, either because they cannot afford it, or because they make a decision to stop putting good money after bad. If you stop making your payments, this will have an impact on your credit almost immediately.

Depending on how good your credit is before you start the short sale process, and depending on how established your credit is, the short sale and the missed payments will have varying impacts on your credit. The better your credit is, and the more established it is, the less impact the short sale and missed payments will have on your credit. And vice versa.

The bottom line is that the impact of both the short sale and the missed payments varies for everyone, depending on your credit profile before the short sale.

I have seen a 50 year old homeowner, with very established credit and an 820 credit score, do a short sale, miss 7 months of payments, and end up with a 750 credit score. I have also seen a 23 year old with a 660 credit score miss 2 payments and see their score drop down to the high 500′s.

Again, it varies for everyone, depending on how good your score is and how established your credit is (in other words, how many years you have built your good credit up).

If you continue to make your payments during a short sale, you will minimize the impact of the short sale on your credit by about 50%, as you will not take any hit from missed payments.

WIth that said, industry experts view any impact on your credit from a short sale or missed payments as a relatively temporary hit, as it is possible to quickly repair your credit after the short sale has closed escrow.

For our clients who take steps to repair their credit, we see them buying within 12-24 months after a short sale, and in some cases less.

Ask your Battiata Real Estate Group agent for more information on our credit repair program.

Battiata Real Estate to hold series of 5 Short Sale Seminars Nov 15-19

November 7, 2011 – With almost 50% of San Diego homes under water, and an increasing willingness on the part of lenders to work with upside down homeowners to avoid foreclosure, more and more San Diego homeowners are seeking to educate themselves on their options in dealing with an upside down home.

Matt Battiata and The Battiata Real Estate Group will host their “Seminar for Upside Down Homeowners” at 5 convenient San Diego County locations Tuesday November 15 through Saturday November 19.

The dates, times and locations are as follows:

Tuesday Nov 15 Carlsbad: Carlsbad Resort by the Sea @ 6pm
Wednesday Nov 16 Escondido: California Center for the Arts @ 6pm
Thursday Nov 17 Mission Valley: Courtyard Marriott Mission Valley@ 6pm
Friday Nov 18 Chula Vista: Chula Vista Comfort Inn 632 E St @ 6pm
Saturday Nov 19 Del Mar: Del Mar Hilton @ 12 Noon

“This seminar is a great opportunity for any upside down homeowner who wants to educate themselves on their options, whether a loan modification, deed in lieu of foreclosure, FHA short refinance, bankruptcy / lien stripping or a short sale,” said Matt Battiata, Broker & CEO of the Battiata Real Estate Group.

“The seminar is 100% informational – it’s purpose is not to steer people in any particular direction – it’s simply a forum for homeowners to learn about and discuss their options so they can make an informed decision.

The Battiata Real Estate Group has held “The Seminar for Upside Down Homeowners” twice in 2011.

“Our first two seminars were so well received, and tapped such a huge demand, that we have been deluged with requests to do it again,” said Battiata.

The seminars are free but are expected to be full. You must register to attend by calling 760- 930-9898 or register online at http://battiata.com/short-sale-san-diego/seminar-for-upside-down-homeowners/

Bank of America Short Sale Policy Change re Foreclosure Postponements

Bank of America’s Loss Mitigation Department told us today that, as a matter of policy, they will no longer postpone foreclosure sale dates on properties that are 18 months or more in arrears.

Bank of America said they will consider postponements if there is an offer in review, but only on a case by case basis.

In general, it has been our experience that we are able to get most Bank of America foreclosure sale dates postponed as long as we are actively engaged in the short sale process, so while this is not surprising, the fact that they have a policy in place regarding this is significant.

The lesson here, with regard to Bank of America as well as any and all other lenders, is don’t let yourself get significantly behind in payments before starting the short sale process.

Or to put it in a different way, don’t wait until you are in the 11th hour of the foreclosure process to start to explore your options – be proactive and find out about your options early.

In other words, once you find out that your loan modification is not going to get approved, or will not be significant enough to make staying in your home possible, or you decide to stop making your payments, start the short sale process.

It is true that lenders do not want to foreclose if they can avoid it – but if you get far enough along in the foreclosure process, you are playing with fire, and lenders will foreclose.

Mortgage Tax Debt Forgiveness Relief Act to Expire in 2012

The clock is ticking for San Diego homeowners who want to short sale their home and avoid getting hit with a huge tax bill from the IRS and California Franchise Tax Board.

The Mortgage Tax Debt Forgiveness Relief Act, and its California state income tax counterpart, SB401, which exclude most homeowners from owing taxes on the debt forgiveness of a short sale, expire at the end of 2012, which means most homeowners’ whose short sales close after that date will owe income taxes on the amount their lender forgives in the short sale.

“We expect to see a deluge of short sales over the next 14 months in San Diego County,” said Matt Battiata of The Battiata Real Estate Group, ” as homeowners race to complete their short sales prior to the expiration of these tax exclusion bills.”

“Most short sales close in 4-6 months,” said Battiata, “but in some cases they can take a year or longer, so many people are getting started sooner rather than later just to be safe.”

San Diego Foreclosure filings, inventories & outcomes 2011 on Battiata.com

06073 – Foreclosure Filings

06073 – Foreclosure Outcomes

06073 – Foreclosure Inventories

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Battiata Real Estate Group “Seminar for Upside Down Homeowners” Saturday Oct 1 at 12 noon at The Del Mar Hilton

The Battiata Real Estate Group “Seminar for Upside Down Homeowners” will be held Saturday October 1 at 12 noon at the Del Mar Hilton.

The format for the seminar will be an educational forum for homeowners who are upside down on their homes to learn about their options.  Topics will include short sales, loan modification, bankruptcy and lien stripping, as well as deed in lieu of foreclosure and foreclosure, as well as the credit and tax implications of each.

“The focus of this seminar is to give people accurate information so they can make the best decision for their financial future,” said Matt Battiata of The Battiata Real Estate Group.

“There is so much misinformation out there on the web and even among so called experts with regard to loan modifications and short sales, that we really felt there was a need to educate homeowners,” said Battiata.

This is the second “Seminar for Upside Down Homeowners” that The Battiata Real Estate Group has held – the last one on July 30 was filled to capacity.

The Battiata Real Estate Group is the market leader in short sales in San Diego County.

To register, go to www.Battiata.com or call 1-800-980-0628

July 2011 North San Diego County Real Estate Market Analysis

This is an interesting July 2011 market report for North San Diego County put together by HomeDex for the North San Diego Association of Realtors.  It shows median prices for single family detached and attached homes, our affordability index as well as many other indicators, and whether they are trending up or down.  The median price of a single family detached home in North San Diego County is now $450,000. Click here for the full report.

Battiata Real Estate Seminar for Upside Down Homeowners Oct 1 at Del Mar Hilton

SAN DIEGO, CA — With almost 50% of San Diego homes under water, and an increasing willingness on the part of lenders to work with upside down homeowners to avoid foreclosure, more and more San Diego homeowners are seeking to educate themselves on their options in dealing with an upside down home.

Matt Battiata and The Battiata Real Estate Group will host a free “Seminar for Upside Down Homeowners,” Saturday, October 1, 2011 at 12 noon at the Del Mar Hilton.

“This seminar is a great opportunity for any upside down homeowner who wants to educate themselves on their options, whether a loan modification, deed in lieu of foreclosure, FHA short refinance, bankruptcy / lien stripping or a short sale,” said Matt Battiata, Broker & CEO of the Battiata Real Estate Group.

“The seminar is 100% informational — its purpose is not to steer people in any particular direction — it’s simply a forum for homeowners to learn about and discuss their options so they can make an informed decision.”

In addition, attendees will learn little known secrets on how to avoid potential tax implications & preserve their credit when negotiating with their lenders.

The Battiata Real Estate Group put on their first Seminar for Upside Down Homeowners in July 2011.

“Our first seminar was so well received, and tapped such a huge demand, that we were deluged with requests to do it again,” said Battiata.

The seminar will be held Saturday, October 1, 2011 at noon at The Del Mar Hilton. The seminar is free but is expected to be full. You must register to attend by calling 760- 930-9898 or register online at http://battiata.com/short-sale-san-diego/seminar-for-upside-down-homeowners/

About The Battiata Real Estate Group:

The Battiata Real Estate Group is the market leader in the marketing, sale and negotiation of short sale properties in San Diego County.

Matt Battiata has traveled to Capitol Hill in Washington, DC four times in the past 3 years to meet with House & Senate leaders regarding the real estate crisis, is regularly interviewed as a real estate expert in both local and national news, and has negotiated several hundred distress sales in just the past few years alone.

The Battiata Real Estate Group can be found on the web at http://battiata.com/

RSVP List for 2011 Seminar for Upside Down Homeowners Building Quickly

The RSVP list for the upcoming Seminar for Upside Down Homeowners, which will be help Saturday, July 30 at 12 noon at the Del Mar Hilton, is building quickly.

The seminar, which is free to and open to the public (although you must pre register through www.Battiata.com), will present upside down homeowners with all of their options in avoiding foreclosure, including bankruptcy, lien stripping, short sale, loan modification, and foreclosure, and the tax and credit implications of each.

Experts will speak on all of these topics and more, and then open the floor to questions.

The seminar will be held from 12-2 this Saturday July 30 at The Del Mar Hilton.  To register go to www.Battiata.com or call 760 930 9898.

CA SB 458 Prohibits 2nd Lienholders from Pursuing Deficiencies after Short Sales

Gov. Jerry Brown signed the much heralded SB 458 into law today, July 15, 2011.

SB 458 extends the protections of SB 931 (passed in 2010), and ensures that any lenders that agree to a short sale must accept the agreed upon short sale proceeds as payment in full for the outstanding balance of all loans.

SB 931, which was passed in 2010, ruled that 1st lien holders could not pursue deficiencies in California, but did not apply to 2nd or junior liens.

SB 458 extends this protection to 2nd lien holders as well.

It remains to be seen how lenders will react to this legislation, but my guess is that they will simply negotiate that much harder to get whatever money they can during the short sale, in light of the fact that they cannot pursue after the short sale has closed escrow.

Bottom line, short sale sellers will still want to make sure they have an experienced broker negotiating their short sale in order to avoid having to bring in funds at close of escrow or sign a promissory note.

Upcoming: Seminar for Upside Down Homeowners July 30 2011

Matt Battiata & The Battiata Real Estate Group will host The Seminar for Upside Down Homeowners, Saturday July 30, 2011 at the Del Mar Hilton in Del Mar, CA.  The purpose of the seminar will be to educate upside down homeowners on their options, including Short Sales, Loan Modification, Foreclosure, Chapter 7 & 13 Bankruptcy, Lien Stripping (the discharge of the 2nd loan on a property) and more.

Experts will outline the pros and cons of each option, including the credit impact and the tax implications.

For more information and/or to RSVP for the event, call 760 930 9898 or email to info@battiata.com.