Category Archives: Short Sales

June slowdown in Shasta County home sales noted

As we pointed out here on the 19th, local Redding area home sales fell off fairly substantially in June. Yesterday, an article by David Benda about June housing numbers for Shasta County for our local newspaper made much the same point. Not sure if that link is behind the paywall, so the gist of it was this:

“Higher interest rates and a growing supply of homes for sale put the brakes on Shasta County’s accelerating real estate market in June.”

I thought this was an interesting point from the article:

“Equity home sales — or properties not in some form of distressed (sale) _ made up four of every five homes sold in California in June, the California Association of Realtors reported. The trade group did not have numbers for Shasta County.”

Well, we do have those numbers at Redding Homes Blog. There were 210 home sales reported to the MLS for June. That number is slightly smaller than the entire count of 232 as reported by the article, but you can see most local home sales occur through our MLS. Of those sales reported, 158 were Equity sales (normal sales), 33 were REO (bank or government owned), and 19 were Short sales (pre-foreclosure). Here’s how the proportion looks:

So around 25% are in some form of distress. A few years ago, the number of local distress sale homes was much higher when compared to equity sales. So apparently were are gradually returning to a more traditional marketplace. We are still above the given state average of 4 out of 5 being Equity sales, at our present average of 3 out of 4.
Information is deemed to be reliable, but is not guaranteed. © 2013 MLS and FBS. Prepared by Skip Murphy on Wednesday, July 31, 2013 8:09 AM.

The rise of the short sale

In simple terms, a successful home short sale is when a lender agrees to take less for the sale than what is owed. The number of homes listed as a short sales in our community has been pretty steady at around 250-300 for the last couple years. They are most often unsuccessful, leading to foreclosure. But lately, it seems the number of successes have been increasing. Mostly, due to bank/lender changes in staffing and attitude. But also because agents representing sellers have become better at accomplishing these often complex transactions. We attended a standing-room-only short sale seminar for agents yesterday put on by the Shasta Association of Realtors. It seems we all think there will be more short sales coming, and so are actively sharing information about how to get them done.

I’m uneasy with many aspects short sales. But I don’t think that anyone can argue that a neighborhood is better off with vacant foreclosures than occupied short sale homes. Foreclosures create problems for the community.

This short sale video from the California Association of Realtors is perhaps overly upbeat. While I don’t necessarily agree with all this broker’s conclusions, I think he illustrates the growing realization that there are more short sales on the way. All are served best by getting better at the process.

We’ve kept abreast of the latest short sale information and techniques. If you think you need to explore this option, or especially if your lender has encouraged you to do a short sale, we can provide you with consultation about the current market value of your real estate.

Tomorrow: Consumers need to watch out for…

17590 Grey Fawn Lakehead (OBrien) 96051 $1.6M invested Now $700,000

17590 Grey Fawn Trail OBrien Lakehead 96051 short sale luxury homes in shasta county17590 Grey Fawn Trail OBrien Lakehead 96051 short sale luxury homes in shasta county17590 Grey Fawn Trail OBrien Lakehead 96051 short sale luxury homes in shasta county17590 Grey Fawn Trail OBrien Lakehead 96051 short sale luxury homes in shasta county17590 Grey Fawn Trail OBrien Lakehead 96051 short sale luxury homes in shasta county

“Architect’s own magnificent retreat influenced by ‘Frank Lloyd Wright Prairie House Design’. Rustic elegance combined best-of-the-best amenities thru-out, dramatic open floor plan overlooking spectacular views of Lake Shasta & beyond, incredible detail & craftsmanship within Main House & Guest House/Studio, large gourmet island kitchen, wine cellar, no expense spared!”

So writes listing agent Alysia Jantzer of Coldwell Banker. This OBrien Mountain home looks pretty fabulous. It had been listed a for $1.2M for about a year. Yesterday we were informed that the seller had invested $1.6m into it, and that it is now listed as a short sale at less than half that.
17590 Grey Fawn Trail OBrien Lakehead 96051 short sale luxury homes in shasta county
Enough exterior heating shown to make Doug Craig relinquish all his remaining hope. It’s listed as a 2008 built 3/4 of about 3140 sqft on 5.8 acres. There are a great many more photos of this OBrien Mountain Estates architect’s home at the link. Well worth a look. Call upon us if you have an interest. We can arrange a showing. Call (530) 244 7603

This has to be one of the most expensive short sales we’ve seen. Where else can you buy an item at a $900,000.00 discount off cost?
17590 Grey Fawn Trail OBrien Lakehead 96051 short sale luxury homes in shasta county

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Sell your home as a “short sale” and receive up to $35,000

“Karen Farley hadn’t made a mortgage payment in a year when she got what looked like a form letter from her lender.
‘You could sell your home, owe nothing more on your mortgage and get $30,000,’ JPMorgan Chase & Co. (JPM) said in the Aug. 17 letter obtained by Bloomberg News.”

That’s what they’re writing about home lender JP Morgan at Bloomberg News. This particular short sale was for $200,000 less than what was owed, but taking that loss was still cheaper than foreclosing. According to the article, they are offering up to $35,000 in some cases, and other banks may follow. Lenders are getting more realistic about short sales.

Do you need to explore this idea? We can offer reliable advice about your Redding area home’s actual present market value, with no obligation. We can’t make any promises about lender bonuses, but we know a lot about local real estate and marketing.

Call (530) 244 7603

If you get a similar offer letter from your lender, call us to arrange the sale.

short sale bonus

Click on the thumbnail to go to the article

New CA law makes Short Sales better for homeowner

Here’s a press release from the California Association of Realtors:

CALIFORNIA ASSOCIATION OF REALTORS® applauds Gov. Brown on signing SB 458 into law. SB 458 extends the protections of SB 931 (2010), to ensure that any lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans.

Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short sale payment as full payment for the outstanding balance of the loan, but unfortunately, the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.

“The signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference,” said C.A.R. President Beth L. Peerce. “SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property.”

SB 458 contains an urgency clause making it effective upon signing.

Interesting, from a moral hazard perspective. And the law of unintended consequences, probably. Still, good news if you are somebody needing to do a Short Sale.

We can help you accomplish a Short Sale. Call or Text us at (530) 255 4070

TL;DR Banks in California can’t come after Short Sale sellers later, to try and claim their unpaid debt.

Repossess your foreclosed home?

That’s what this lady did. She says here that she lived in her home for 24 years before a medical problem set her back financially. Apparently unable to work something out with the lender, she was foreclosed out. She has decided to move back in to her home, calling it repossession. The lender calls it trespass. We are left to decide the true meaning.

I know from direct experience that banks and government have well-oiled foreclosure machinery at work. Meanwhile, loan modifications and successful short sales are random exceptions. We don’t know the entire story here, but on the surface the question is clear. What should it mean to a civil society that one can pay 24 years of a 30 year mortgage, only to be bankrupted by a medical emergency? Both the mortgage industry and the medical industry are for-profit enterprises. Just doing their job.

What of the human cost?

Read the repossession story at the link. Back when I worked for banks and government, helping them sell foreclosed homes, the eviction “stories” became real people to me. Kids, and dogs, and crying mothers. I think we forget that, perhaps deliberately. The human cost.

Repossessed in Oakland


Upcoming, unlisted Freddie Mac foreclosure sales

Here are a few upcoming sales of government owned homes that are not yet listed in our local MLS. Most are not priced yet, but we can keep you informed if you have an interest in any of these:

Property Status: PRE-LISTING
Address City County St Bed Bath List Price Broker

Zip Code: 96001

Zip Code: 96002

Zip Code: 96003

Zip Code: 96007

Zip Code: 96019

Zip Code: 96022

Zip Code: 96073

Zip Code: 96088

Wait, what? 7340 Summers Place? That was our recent Short Sale Listing, where we had a full price offer at $169K, but the bank refused to deal in good faith. Well, their loss, obviously, as now it is an REO for $10K less. It was a nice home. New in 2006, it’s a 1720 sqft 3/2, on about 2.5 flat acres.
Shingletown real estate for sale
We have more images of this beautiful home on file. Let us know if you’d like to see them.

Foreclosures are up around here, according to the local newspaper, reflecting the insane, self destructive behavior of banks, as reflected in the failed Short Sale example shown here. It’s a buying opportunity. We have good information on the inventory. Need info on any of these?

Call or Text (530) 255 4070

More insight to Bank of America Short Sales

We were sent this brief Short Sale video from B of A corporate. It wasn’t specifically meant for consumers. It’s directed toward agents and brokers. I thought I’d link to it anyway, for viewers here at RHB. In case you want some insight into the thinking, and the Short Sale initiatives planned at the giant banking interest. Apparently they expect to ramp up to do quite a few… Skip Murphy trying to decipher

I worked for a very large company (Kodak) for 20 years, so I am no stranger to corporate-speak. This video has a pile of it. I enjoyed watching it for that aspect alone, but your mileage may vary.

As we mentioned in a post the other day, we think B of A is sincere, and is attempting to do better at Short Sales. And we’ve heard of some good recent results from networking among our fellow Realtors. If you think you need to accomplish a Short Sale, we offer a good deal of experience completing distress sales. Call or Text (530) 255 4070

They also sent over a link for mortgagees needing more help:

Also, if you are looking instead to buy a distress sale property, we remind you that we keep a list of all the locally available properties at:

Constantly updated. And that includes as specific list of Active Short Sales. Thanks!

Need to do a Short Sale with Bank of America?

Bank of america people

Rick Perez and Matthew Hennesey from Bank of America

Yesterday, I spent some time at a presentation from Bank of America on how agents can more smoothly complete Short Sales with Bank of America loans. Bank Vice President Matthew Hennesey packed a ton of good information about how best to navigate the process and use their software called Equator to get transactions completed. It was good to see the bank taking proactive steps to try and get more Short Sales done, since their success has been erratic at best, and yet doing a Short Sale can save an investor 15% over the cost of a foreclosure. You can learn more about Bank of America’s Short Sale process at the link.
It was great training and information, so if you think you have need of doing a Short Sale and you have a Bank of America mortgage, call us. (530) 255 4070 Skip Murphy

Short Sale from Bank of America leads to irate video

Here’s an irritated real estate agent using YouTube to get her point across. She sold a house though a Short Sale with Bank of America. Meanwhile another department of the bank kept chugging along and was prepared to secure (lock down) the house pre-foreclosure. If the new owners of the home hadn’t been home, who knows what might have happened to all their possessions? B of A Short Sale buyers be aware.