San Jose Short Sale News

Can I Do a Short Sale?

Do I have to be late on a mortgage payment to apply for a short sale?

Many homeowners and borrowers think that they need to be delinquent or late on a mortgage payment or two before they can ask for a short sale. But this just isn’t the case. At this point though, many homeowners simply neglect to have any communication with their lender and eventually will be foreclosed on.

A foreclosure is much harder on your credit history and report than a short sale. Especially if you are up-to-date and current with your mortgage payments, a short sale may not be nearly as bad of hit as if you were delinquent or fell into foreclosure. Simply walking away from the property is one of the worst things you can do.

If you are currently up-to-date with your mortgage payments but are finding it more and more difficult each month to make that payment or you have a large balloon payment coming up and certain circumstances are making it very difficult to make your payment each month, a short sale may be the relief you need.

The first step is to talk to a short sale specialist or agent in your area that knows the process, the details behind each transaction, and can communicate to your lender on your behalf. They will discuss your options and if you choose to stay in the home, the lender may offer you alternatives such as a refinance, mortgage modifications, or other programs currently available.

If a short sale does seem inevitable, you will need to write a letter of hardship to the lender explaining the difficulty you are having paying your mortgage payment. Many times job loss, medical bills, or other hardships can cause bills to back up and makes it difficult to come up with the mortgage payment each month. Simply communicating this to your lender and allowing them to decide whether this is a true hardship with the amount of income and the amount of debt you currently have, can alleviate a load of stress off of your mind.

If however, you do make enough in your current income and occupation, do not have a lot of debts or foresee debts in the future, and can reasonably make your mortgage payment each month, the lender is not likely to allow a short sale to continue.

The very best option is to contact a short sale agent or your lender to discuss options and the steps involved that you will need to take to get on the short sale path quickly and efficiently.

Where to Live in San Jose

Moving? Short Selling your home? Know where to go.

Finding the right place to live can be difficult in any city, especially a large city. Considering all the important factors in order to help you find the right fit for you and your family can be extremely frustrating. Providing an overview of the best places to live in San Jose, CA will hopefully assist you making your decision. Of course, I would love to have you decide for yourself!

Downtown San Jose is in the heart of it all, near the Guadalupe River Park and Gardens, plenty of nearby shopping, dining, entertainment, art galleries, theaters, and historic architecture there is rarely a dull moment. The traffic is usually a problem but, there are ample options with public transportation, biking or walking. Downtown San Jose has been experiencing a bit of a facelift and the redevelopment has begun to attract more retirees. However, the cost to live in Downtown San Jose is rather expensive whether buying or just renting.

Willow Glen is in the southwest region of Downtown San Jose by the Guadalupe River and it is the location of some beautiful homes. This area has its own downtown district providing a variety of shops, antique stores, restaurants, etc. Willow Glen provides a residential area that is attractive to both families and retirees; however it’s one of the more expensive areas in which to live.

Almaden Valley and Cambrian Park, located in the southern part of Downtown San Jose offers beautiful views of the Santa Cruz Mountains and Santa Teresa hills.  Almaden has plenty of recreational sites in the area and the schools have a great reputation.

North San Jose is more affordable than the other areas of San Jose; this area’s population houses a large amount of the Silicon Valley workforce. The north area has plenty to offer with shopping, restaurants, etc. Included in North San Jose are communities such as Sunnyvale, Mountain View, Palo Alto and Santa Clara.

     One of the more popular areas to live in San Jose with a diverse ethnicity is West San Jose. This is a mostly residential area that includes Cupertino, home to many of the bigger companies such as Apple Inc. Families with children in school consider this community due to the reputation as one of the best schooling systems in the country.

Finally, Santa Clara offers a mostly residential area that is more affordable. Santa Clara is very appealing to a wide variety of families with its close proximity to large companies such as Yahoo and Intel. Santa Clara has plenty of the basic amenities of a city such as shopping, restaurants, entertainment, etc.; however it is also home to the famous amusement park, Great America.

Everyone has different wants, needs, and desires regarding where they live. One person may have a priority of being close to work for a shorter commute and another person’s priority is to find a safe environment with good schools for their children, making it difficult to ask the question “Where should I live in San Jose?” But to get an answer that is right for you and your family it’s best to discuss the options and prices with a San Jose Realtor®. Getting a better idea of what to expect in some of the best areas in San Jose should help you make the right decision. Photo by Sean O’Flaherty

Your San Jose Short Sale Agent

For the best service and local information for San Jose California, feel free to visit or call anytime. I not only know the area, but know the real estate market and can help you buy, sell, invest or quickly get out of any home or property. I am a short sale expert but can also help you purchase or sell any home or property in the entire San Jose area.

Senate Bill 931 – California Anti Deficiency

Senate Bill 931 – California Anti Deficiency

What does this mean for California and the increasing number of homeowners in financial distress who want to avoid foreclosure and find short sales to be a dignified option?

Senate Bill 931 was filed with the Secretary of State and approved by Governor Schwarzenegger on September 30, 2010.  This new law became effective January 1, 2011.

New Law effective January 1, 2011

Governor Approves SB 931

Senate Bill 931 adds a new provision to California’s Anti Deficiency Statutes, Code of Civil Procedure Section 580e.  Section 580e provides that a lender who holds a first deed of trust on residential property and agrees to a short sale is not allowed to seek a deficiency judgment or otherwise attempt to collect the balance of the loan after agreeing to approve a San Jose short sale.

This is an important piece of legislation even though it did not receive much fanfare. Many lenders that previously agreed to short sales would “reserve their rights” as to any deficiency, as a condition of the short sale approval. Reserving the right leaves the question of whether or not a lender, after a short sale closes, could seek to recover the balance of the loan after they had agreed to accept less in the short sale.

The provision of the code does not limit the ability of the first deed of trust or first mortgage to seek damages if the Trustor commits fraud with respect to the sale or waste with respect to the real property.

The section does not apply if the Trustor is a corporation or political subdivision of the state.

There is no mention as to if Section 580e of the Code of Civil Procedure is retroactive, or not. Short sale agents and/or negotiators best practice would be to ensure language to the effect that the lender is forgiving the balance is included on short sale approval letters scheduled to close before the end of 2010.

San Jose Short Sales – Borrowers Sue Wells Fargo

San Jose Short Sales – Borrowers Sue Wells Fargo

One of my morning routines is to spend an hour or so reading updates on what’s happening in the world of banks, lenders, servicers, Robo-Signing, foreclosures, short sales, etc. This is what I refer to as “The Land of Oz” because when dealing with Big-Bad-Banks we are often dealing with people without hearts or brains.

As I was perusing DSNews, one headline caught my eye:

Defaulted Borrowers file Lawsuit against Wells Fargo.

After working San Jose Short Sales for over two years, I am intrigued by reading that borrowers are taking action against their beloved banks and loan servicers and attempting to hold them accountable for their dubious business practices. There is rarely a day that goes by that I do not hear about yet another way a borrower is screwed-over by their BIG-BAD-BANK.

This morning a DSNews article reported that a law firm filed a class action suit against one of the Biggest of the Badest Banks – Wells Fargo Bank and America’s Servicing Company (“ASC”), its servicer.

The premise of the lawsuit is that America’s Servicing Company told borrowers they would not be eligible for a loan modification as long as they were current on their payment. The effect of this advice was to encourage borrowers to default on their mortgages if they wanted a loan modification.

The claim in the class action lawsuit is that America’s Servicing Company induced borrowers to default on their mortgages in order to charge penalty and fees associated with the late payments. Bad-Bad-Bad!

“As a loan servicer, ASC generates a significant portion of its revenue from fees, penalties, and interest collected on the non-performing loans it services. Consequently, it is in ASC’s financial interest to avoid, delay, and deny loan modifications and to pursue foreclosures because doing so will lead to increased revenue.”

OUCH – Truth Hurts those Big-Bad-Banks!

A Borrower, who has not defaulted, yet is financially distressed and facing imminent default may be eligible for a loan modification if financial hardship can be demonstrated, according to the Home Affordable Modification Program guidelines. Guess who determines financial hardship? BIG-BAD-BANKS!

Alleged in the class action lawsuit: “By making loan default a prerequisite for modification, without regard to whether a borrower otherwise qualified for a modification due to financial hardship, ASC caused borrowers to unnecessarily suffer ruined credit and subjected them to significant fees, penalties and interest.”

Wells Fargo said: “We believe, as we have from the beginning of this crisis that it is in our customers’ and the country’s best interests to assist customers who can afford their homes – with some help – to remain in them. And, it is our goal to exhaust all options before moving a home to foreclosure sale.”

I say the proof is in the number of successful loan modifications – which relatively speaking – are very few indeed!

Are you facing foreclosure? You can avoid foreclosure. There are foreclosure alternatives that can help save your credit.

Call 1-800-972-1822 or visit San Jose Short Sales and request a free consultation to discuss foreclosure alternatives.

Search San Jose Homes for Sale – including short sales.

San Jose Short Sales – Borrowers Sue Wells Fargo Bank – by Kathleen Daniels, San Jose Real Estate Agent

San Jose Short Sale Decisions in 45 Days!

Short Sale Decisions required to be made in 45 days!

House Bill H.R. 6133 proposes:

Prompt Decision for Qualification of Short Sale Act of 2010

To require the lender or servicer of a home mortgage, upon a request by the homeowner for a short sale, to make a prompt decision whether to allow the sale.

H.R.6133 was introduced into the house on September 15, 2010 and was referred to the Committee on Financial Services.

Historically obtaining short sale approvals have been a very slow process.

This bill would spur growth in the housing market by helping sellers and buyers complete short sales quickly” said Representative Tom Rooney who sponsored the bill with Representative Robert Andrews.

The number of short sale properties continues to rise. According to the National Association of Realtors (NAR), 28 percent of California properties for sale in the second quarter of 2010 were short sales.

“Unfortunately, homeowners who need to execute a short sale are severely hampered because lenders (loan servicers) are unable to decide whether to approve a short sale within a reasonable amount of time,” said NAR President Vicki Cox Golder.

“NAR believes that quicker attention to the short sales process is vital to help homeowners who are underwater and their communities, as well as the nation’s economy,” said Golder.

The bill is written to default (no pun intended) to short sale requests shall be “considered to have been approved by the servicer” if the servicer does not provide a written notification if the request has been approved; approved subject to certain changes; or that additional information is required before the expiration of the 45 day period.

The provisions of H.R. 6133 apply only to written requests for a short sale made after the date of the enactment of the Act. This means possible future hope for short sale homeowners, buyers and short sale professionals.

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Copyright © 2010, All Rights Reserved by Kathleen Daniels, Certified Distressed Property Expert, Certified HAFA Specialist, RDCPro *San Jose Short Sale Decisions in 45 Days!*

California Anti-Deficiency – SB 1178

California Anti-Deficiency – SB 1178

California’s legislature recently passed SB 1178 which is the bill to extend anti-deficiency protection to homeowners who have refinanced. SB 1178 will ensure that homeowners keep the same “anti-deficiency” protections they have in the original loan after the loan has been refinanced.

Now California Realtors have the opportunity to use our collective voice.


If you have not yet acted on the C.A.R.RED ALERT asking California Realtors to contact Governor Schwarzenegger and urge the Governor to sign SB 1178 … consider taking a few moments to do so. Thank You!

Certified San Jose Short Sale Specialist

Certified HAFA Specialist

Copyright © 2010, All Rights Reserved by Kathleen Daniels, Certified Distressed Property Expert, Certified HAFA Specialist, RDCPro *California Anti-Deficiency – SB 1178*

San Jose Short Sale Specialist – HAFA Certified

The California Association of Realtors (“CAR”)  HAFA certification (CHS) is designed for real estate professionals to understand Treasury Supplemental Directive 09-09 which was implemented on April 5, 2010.

Working with a San Jose Short Sale Specialist who is also a Certified HAFA Specialist can save you thousands of dollars. If you are considering a short sale, make certain the short sale specialist you hire understands the HAFA guidelines. If you qualify, you may be able to walk away from your home without any further obligation to the bank(s) and be paid $3,000 for moving expenses.

HAFA is currently the only program that uses standard processes, documents and timelines for eligible short sale and deed in lieu transactions. It is imperative that the agent you hire understands the government programs as well as the lender/servicer guidelines in order to ensure that you are in complete compliance with the HAFA program.

Choosing to work with an agent who is not a certified short sale specialist and who is not HAFA certified can cost you thousands of dollars … not just in losing the opportunity to be paid $3,000 for moving expenses, but also in ensuring that you literally walk away without further obligation to the bank.

If you are interested in learning more about HAFAthe new government short sale program, then give me a call. I am certified and understand the guidelines of the program.

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Kathleen Daniels Earns Prestigious Designation to Help Homeowners in Danger of Foreclosure

SAN JOSE, CA – OCTOBER 23, 2009 – KATHLEEN DANIELS of INTERO REAL ESTATE in SAN JOSE has earned the prestigious Certified Distressed Property Expert® (CDPE) designation, having completed extensive training in foreclosure avoidance, with a particular emphasis on short sales. At a time when millions of homeowners are struggling with the possibility of foreclosure, the skills and education accumulated by DANIELS will help benefit SAN JOSE area residents and communities.

Short sales allow the distressed homeowner to repay the mortgage at the price that the home sells for, even if it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.

Today, more than 13 percent of homeowners are delinquent on their mortgage or in the foreclosure process. This is occurring across all price ranges, and the fastest-growing category of homes in foreclosure is the luxury home market.

“The CDPE designation has been invaluable as I work with homeowners and lenders on complicated short sales,” said DANIELS. “It is so rewarding to be able to help families avoid foreclosure.

Kathleen Daniels with the CDPE Designation has a valuable perspective on the market. Her training in short sales offers homeowners’ real alternatives to foreclosure, which can be devastating to credit ratings.

Kathleen also understands market conditions better than the average agent, and can help sellers through the complications of foreclosure avoidance.

“My goal is to help San Jose homeowners avoid foreclosure. I am committed to helping homeowners who are struggling and providing much-needed assistance in stabilizing San Jose communities,” Said DANIELS.

If you, or someone you know, is behind on their mortgage payment and do not know what to do, know that real help is available. Consult with Kathleen Daniels, a San Jose Short Sale Specialist and learn that you do have options. Understand there are solutions to foreclosure. What are you waiting for, time may be running out. Don’t wait until it is too late.

Kathleen Daniels – Certified San Jose Short Sale Specialist

Copyright © 2009, All Rights Reserved by Kathleen Daniels *San Jose Short Sale Specialist*

California Governor Schwarzenegger takes Action for Californian’s facing Foreclosure!

An emergency measure taken this week, Senate Bill 94 is effective immediately and will remain in effect through January 1, 2013. The action taken by California Governor Arnold Schwarzenegger was designed to prevent distressed homeowners from being taken by companies charging upfront fees for loan modifications and then abandoning them.

Senate Bill 94 prohibits foreclosure consultants, which includes attorneys who specialize in loan modifications and loan modification companies, from taking any compensation or fees before completing the service.

This new law may likely cause many law firms and individual legal practitioners previously engaged in providing loan modifications services to close their doors. The same may be true for loan modification companies which have historically provided services only with payment of upfront fees regardless of whether the loan modification was approved or denied by the servicer.

Only time will tell how many individuals and companies will remain committed to helping distressed homeowners facing foreclosure now that upfront payment for providing such services are prohibited.

Many truly dedicated real estate professionals provide loan modifications services at no cost to the homeowners with the understanding that if the loan modification is not approved, the homeowner will list the property with the agent and attempt to complete a short sale.

Senate Bill 94 is a big win for California homeowners facing foreclosure. It is now against the law to charge before completing a loan modification service.

Kathleen Daniels – Certified Short Sale Specialist

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Copyright © 2009, All Rights Reserved by Kathleen Daniels *Schwarzenegger takes Action for Californian’s Facing Foreclosure*

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