Fred Sed's Blog: October 2009

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How does a homeowner benefit from a short sale?

First and foremost, it relieves the stress of being in foreclosure and being hounded by the mortgage lender; and it allows homeowners to get rid of their big mortgage payment and move on with their lives. A short sale allows you to stop the foreclosure and get a fresh start. In our experience, this is the primary benefit to homeowners. They are tremendously thankful to just relieve the burden that their home and mortgage have become.

A short sale also prevents additional damage to your credit. Having some late payments and a foreclosure filed has already done damage to your credit. However, a completed foreclosure will do much more damage and lower your credit score tremendously. Obviously, if you have to declare bankruptcy, that is a huge black mark on your credit. A short sale results in the mortgage actually being paid off, which reflects positively compared to a foreclosure.

Why would a bank or mortgage lender want to do a short sale?

A common saying is that banks are in the business of lending money and do not want to own real estate. This is slightly misleading but is essentially true. When a bank takes a property back via foreclosure, it is a long and expensive process and often results in holding the property in their inventory as a non-performing asset. Banks have a limit to the amount of non-performing assets they want to hold. Once this limit is exceeded, they have strong incentive to get rid of the properties at discount prices.

For a lender, doing a short sale avoids many of the costs associated with the foreclosure process. Attorney fees, delays from borrower bankruptcy, damage to the property, costs associated with resale, property tax, insurance, etc. all must be paid by the bank during a foreclosure. In a short sale scenario, the lender is able to cut its losses by getting rid of the property faster.

Please call our offices today to see if you do qualify for a short sale, it is FREE for you and has a HUGE positive impact on your future!

Fred's Short Sale Video's

Fred Sed

(949) 274-3733

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Should I accept a short sale offer from an investor?

Obviously this is up to each individual, but we believe the only real reason to reject an offer is because you know that you will have a tax problem. Again, most sellers who have a short sale qualify as insolvent with the IRS and can therefore avoid taxes on the short sale if the deal is properly negotiated. Otherwise, neither you nor your Realtor should have a concern about the price.

Investors do not want to waste time with low ball offers either so you can be assured that if they place an offer, they have reason to believe it could be accepted. If you need to sell your home, the quickest and surest way to do so is through an experienced short sale investor.

IF YOU ARE HAVING TROUBLE WITH MAKING YOUR PAYMENTS OR ARE HAVING ANY FINANCIAL DIFFICULTIES A SHORT SALE MIGHT BE YOUR BEST OPTION.

CONTACT US TODAY TO SEE IF YOU CAN QUALIFY. OUR SERVICES ARE FREE AND EVERYTHING IS KEPT IN THE STRICTEST CONFIDENTIALITY.

CONTACT FRED SED AT 949-274-3733 OR EMAIL AT FREDSED@PGCOASTAL.COM

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My house is really nice, why is the short sale offer so low?


Sellers often have an emotional attachment to their home and often feel a short sale offer is too low. It is important to remember a few things. First, the seller in a short sale can never receive any money in the transaction, therefore it should be of very little concern at what price the short sale is done. The only real exception is when the seller has tax liability concerns. Otherwise, the price should not matter to the seller.

The important factor in a short sale is whether the lender will accept the price. Lenders OFTEN accept prices for short sales that normal homeowners or Realtors are surprised at. Discounts of 30% are no longer uncommon. This happens for several reasons:

1. Sellers are often in denial about how bad the market really is for housing and therefore how far the value has declined.
2. Lenders don't like the foreclosure process any more than homeowners do (especially in California). Lenders incur substantial costs during a foreclosure process that can last more than 12 months. They have attorney fees, filing fees, publication fees, lost interest on the money that is tied up, property taxes, insurance, maintenance costs as well as the potential for vandalism of the vacant home. This is all BEFORE having to try to sell the home as a bank owned REO and pay commissions to do that. A short sale is a way to avoid some or all of these costs. If a lender calculates his cost of eviction at $50,000 for a house, they will often take a $40,000 loss on a short sale instead and they will be better off.
3. Lenders are emotionless businesses. They simply look at the numbers and make a decision. If the numbers favor a short sale, they will accept even if it means taking a large loss. They do not want to wait, they want the deal done NOW. These numbers and factors are what a short sale investor is focused on.

In a poor housing market, most of these numbers have very little to do with how nice a home is.

IF YOU ARE HAVING TROUBLE WITH MAKING YOUR PAYMENTS OR ARE HAVING ANY FINANCIAL DIFFICULTIES A SHORT SALE MIGHT BE YOUR BEST OPTION.

CONTACT US TODAY TO SEE IF YOU CAN QUALIFY. OUR SERVICES ARE FREE AND EVERYTHING IS KEPT IN THE STRICTEST CONFIDENTIALITY.

CONTACT FRED SED AT 949-274-3733 OR EMAIL AT FREDSED@PGCOASTAL.COM

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My house is already listed for sale on the MLS but isn't selling; can I do a short sale?

Yes, you can and it is relatively common. Some lenders even require that a house be listed for sale before approving a short sale in order to show that a discount is necessary.

As described in an earlier answer, a typical short sale situation is one like this:

1. Homeowner purchases a home for $600,000 in 2004 with 5% down payment.
2. In 2005, value has increased and interest rates have declined so the homeowner refinances to pull cash out. Home value $660,000, new mortgage $660,000.
3. In 2006, homeowner gets laid off and continues to make payments from savings.
4. By 2007, savings are gone and still no job. Homeowner begins to miss payments and decides to sell home for the former appraised value of $660,000.
5. As the months pass, the home is not sold because values have fallen to $600,000 and after 3 missed payments, the foreclosure process has begun. The Real Estate Agent presses the homeowner to lower the selling price, but that would require the homeowner to come up with cash at closing to cover the mortgage shortfall.
6. Homeowner is stuck in the house. He can't sell and can't catch up with the payments, and the foreclosure is proceeding toward eviction.

IF YOU ARE HAVING TROUBLE WITH MAKING YOUR PAYMENTS OR ARE HAVING ANY FINANCIAL DIFFICULTIES A SHORT SALE MIGHT BE YOUR BEST OPTION.

CONTACT US TODAY TO SEE IF YOU CAN QUALIFY. OUR SERVICES ARE FREE AND EVERYTHING IS KEPT IN THE STRICTEST CONFIDENTIALITY.

CONTACT FRED SED AT 949-274-3733 OR EMAIL AT FREDSED@PGCOASTAL.COM

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Is Laguna Beach Your Next Place Of Residence?

If your answer is yes then this is where you want to be and we offer our services for free! Our job is to find qualified tenants to occupy these properties! *

There is no cost to you as the potential tenant/renter, which means our services to you would be free. Our fees are paid for by the owner/landlord of the properties. For additional information, questions, or if you would like to set up a time to preview any property please contact Fred Sed with Fairview Realty at 949-274-3733.



(To reference a property, use the MLS # that is located next to the pictures. It is in bold and it starts with a letter then a series of numbers)

RENTAL PROPERTIES IN LAGUNA BEACH, LAGUNA BEACH LEASES

CONTACT FRED SED 949-274-3733 FOR ADDITIONAL INFORMATION OR TO SCHEDULE A SHOWING!

*Subject to credit check fee of $15.00 per person over 18.

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If you are in the market for a Luxury Propertiesfor rent please contact Fred Sed of The Pahua Group for

further details.

Fred Sed

949-274-3733

FredSed@PGcoastal.com

Keller Williams Realty

Licensed by the CA Department of Real Estate

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LIST YOUR ORANGE COUNTY HOME FOR RENT / LEASE

CONTACT FRED SED 949-274-3733

IF YOU HAVE A PROPERTY / HOME IN ORANGE COUNTY AND YOU WOULD LIKE TO RENT OR LEASE IT. PLEASE

CALL FRED SED OF THE PAHUA GROUP TO LEARN MORE ABOUT HOW THIS CAN HAPPEN! FRED SPECIALIZES IN

THE ORANGE COUNTY RENTAL MARKET AND KNOWS WHAT IT TAKES TO FIND A QUALIFIED TENANT TO OCCUPY

YOUR PROPERTY!

*HE IS EXPERIENCED IN THE TENANT SCREENING PROCESS

HE HAS A STEP BY STEP PROGRAM FROM WHEN A PROSPECTIVE TENANT FIRST CALLS, TO WHEN THEY MOVE

INTO THE PROPERTY

*HIS SERVICE IS #1

*HE CARES ABOUT EACH AND EVERY ONE OF HIS CLIENTS

*HIS MARKETING SKILLS ARE AT THE TOP OF HIS CLASS

CALL FRED NOW TO RECEIVE ALL THE SERVICES THAT YOU REQUIRE AND DESERVE WHEN IT COMES TO LEASING / RENTING YOUR HOME.

FRED SED

THE PAHUA GROUP

949-274-3733

FREDSED@BROKEROC.COM

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PROPERTIES FOR RENT IN COSTA MESA

If you would like to view all the available rental properties in Costa Mesa CLICK HERE

If you have any questions or would like to apply for a property call our office at (949) 274-3733

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VIEW ALL OF THE DANA POINT RENTALS FOR FREE AT: HTTP://WWW.PGLEASES.COM

THIS IS A VERY USER FRIENDLY WEBSITE THAT HAS ALL THE PROPERTIES THAT ARE AVAILABLE.

CALL FRED SED WITH ANY QUESTIONS (949) 274-3733

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SOUTH ORANGE COUNTY AVAILABLE RENTAL PROPERTIES

When it comes to South Orange County, there are a variety of options when it comes to cities. The

following cities are in South OC:

Irvine, Laguna Hills, Lake Forest, Aliso Viejo, Foothill Ranch, Portola Hills, Trabuco Canyon, Coto De Caza,

Laguna Niguel, Laguna Beach, Dana Point, San Clemente, Ladera Ranch, Mission Viejo, San Juan

Capistrano.

If you would like to view the available rental properties in any of these cities please CLICK HERE

If you have any questions please call our office at (949) 274-3733