CALIFORNIA REAL ESTATE PRIMER – Buyer’s Short Sale FAQs

DISCLAIMER

This article is intended to be a general discussion only and should not be considered legal advice. Your use of it does not create an attorney-client relationship. Any liability that might arise from your use or reliance on this article or any of its links is expressly disclaimed. This blog is not legal, accounting or tax advice, is not to be acted on as such, it may not be current, and is subject to change without notice.

Over the course of time, we have fielded a lot of questions from buyers regarding short sales and some of those questions are more frequently asked than others. The questions below are the more frequent ones we’ve been asked:

 1. What is a short sale?

A short sale is the process by which homeowners can sell their home for less money than they actually owe on the mortgage(s). This is accomplished by providing proper documentation to the lender(s) to convince them to reduce the mortgage balance to allow the sale. If the sale is approved, the mortgages lender(s) will actually take a loss on the mortgage.

If a bank approves the discount of a mortgage, the home can be sold for a price lower than the total debt on the property without the seller having to come up with cash to cover the shortfall. The mortgage is satisfied and any foreclosure process stops.

2. Why would a bank or mortgage lender want to cooperate with a short sale?

A common saying is that banks are in the business of lending money and do not want to own real estate. While this is a little misleading, it is essentially true. When banks foreclose on a property it is a long and expensive process and generally means 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 incentives to get rid of the properties at discount prices.

For a lender, agreeing to a short sale avoids many of the costs associated with the foreclosure process. Attorney’s fees, delays from borrower bankruptcies, damage to the property, costs associated with resale, property tax, insurance, etc., must all 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 and at a lower cost.  The most important element in the lender’s decision process is whether or not the property is “underwater.”  If so, then it can’t be sold for an amount equal to or greater than the mortgage and a short sale may be a viable solution.

3. How does a bank determine the price it will accept on a short sale?

Every bank has a specific method of deciding how much they’ll accept on a short sale. Give me a call, Mikey Hall, at 949-887-1625 and I’ll explain it to you.

 4. Can I really get a deal on a short sale home?

Yes, you can, but not every short sale is a deal. You still have to do your research and estimate the current market value of the home. This is one of the areas where a knowledgeable real estate agent’s level of experience really pays off.

5. Who pays the real estate commissions on a short sale?

In a standard sale, commissions are subtracted from the seller’s funds and paid out of escrow to the Realtors. In a short sale, the seller has no funds in escrow which means the commissions end up being subtracted from the monies that would go to the lender. So, the lender ultimately is the one paying the entire sales commission.

6. Are short sales guaranteed to work?

No. All of the criteria must be met before a bank will even consider a short sale. Even then it isn’t easy to convince a bank that the market value of the home is lower than what they are owed.

Even if all the paperwork has been correctly completed it can take several weeks, or even months, only to be denied. If the lender does not approve the short sale, no transaction occurs. The Purchase Agreement becomes void and the listing continues. There are, however, ways to put a time limit on the lender’s time to issue approval.

In a rising market the delay in a short sale approval runs against the buyer for at least two reason 1) The buyer’s purchasing power decreases as prices increase; and, 2) there is no guarantee the lender will approve the sale and the delay may cause the buyer to be priced out of the market.

A falling market has just the opposite affect because a buyer’s purchasing power increases as prices decrease.

7. How long does a short sale take to complete?

From a few weeks to several months.

8. What if the house I want needs repairs.

Remember, when an owner short sells their home it’s because they are suffering a financial hardship. This means there is no money for repairs and as a buyer you can’t reasonably expect the seller to do much in the way of repairs. The good news is we have had some success convincing lenders to repair termite damage and to make reasonable repairs relating to safety. But, this type of cooperation is dependent on the expense involved, the nature of the repair, the purchase price being paid and the direction of the market.

9. What if the house I want has liens on it?

Liens can complicate matters because the owner will not have the financial capability of removing them. Depending on a number of factors, including the real estate market and the purchase price, the lender might be persuaded to clear the liens. Or, sometimes the lien holders themselves might be convinced to reduce their liens. A short sale in this circumstance will take substantially longer.

10. I’m an investor, can I buy a short sale?

The simple answer is yes, you can. However, there can be serious complications.

11. Can I buy the short sale for the price stated in the listing?

An experienced Realtor can quickly tell you whether or not the property is priced unusually low. If so, the home was probably intentionally priced that way to attract offers which might prompt the lender into letting the Realtor know what price it will accept. In which case, the chances of buying the property at the asking price may not be very good.

On the other hand , the property might be priced correctly and your chances of getting the property at the asking price will be reasonably good.

12. How long will it take to get bank approval of my offer?

The answer to this question depends on the expertise of the listing agent, which bank is involved, and how many loans are on the property. Once approval is obtained, the property can go into escrow which takes no longer than a standard sale.

14. Will the banks negotiate on price?

Yes.  More in down markets and less in up markets.

15. Do I get title to the property when I buy a short sale?

Yes, title is transferred to the buyer at the close of escrow, just like in a standard sale.

16. Are my property taxes based on the amount of debt that was on the short sale property?

No. In California, your property taxes are based on the purchase price of the home.

17. Can I transfer my property tax base to a sale short?

Possibly, depending on whether or not you meet the requirements. You might want to read our article entitled, “Transfer Your Property Tax Base Year Value To Your New Home“.

As the housing markets recover, fewer and fewer homes will be underwater until finally the short sale will again become an unusual event.

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“ASK MIKEY”

http://www.AskMikeyHall.com

AskMikeyHall@gmail.com

voice: 949-887-1625

fax: 866-764-6325

DRE #00792478

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DRE Lic# 01886215

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OCPropertyMgmt@gmail.com

voice: 949-505-3838

fax: 866-764-6325

CALIFORNIA REAL ESTATE PRIMER – Seller’s Short Sale FAQs

DISCLAIMER

This article is intended to be a general discussion only and should not be considered legal advice. Your use of it does not create an attorney-client relationship. Any liability that might arise from your use or reliance on this article or any of its links is expressly disclaimed. This blog is not legal, accounting or tax advice, is not to be acted on as such, it may not be current, and is subject to change without notice.

 

Over time, we’ve collected the questions we are most frequently asked by clients who were considering the short sale of their property. Some of these questions are listed below.

1. What is a short sale?

A short sale is the process by which homeowners can sell their home for less money than they actually owe on their mortgage(s). This is accomplished by providing proper documentation to the lender(s) to convince them to reduce the mortgage balance to allow the sale. If the sale is approved, the mortgage lender(s) will actually take a loss on the mortgage.

If a bank approves the discount of a mortgage, the home can be sold for a price lower than the amount owed without the seller having to come up with cash to cover the shortfall. The mortgage is satisfied and any foreclosure process stops.

2. How does the bank decide what price to put on the property?

Every bank has a specific method of deciding how much they’ll accept on a short sale.

3. What type of situation is the short sale best for?

Most short sales are accomplished on properties heading toward foreclosure. This means the homeowner is at least 3 payments behind, and the foreclosure process has already begun. Recently however, more mortgages that are simply behind or “in default” are considered short sale candidates without actually being in foreclosure.

Next, the homeowner typically has no equity or negative equity in the home. In other words, the total balance owed to the lender is equal to, or greater than, the price at which the house can be sold.  If this weren’t the case, the lender would simply foreclose and sell the property itself.

Lastly, the homeowner must have some type of financial “hardship” which is preventing him from paying the mortgage.

4. Does a homeowner benefit from a short sale?

First and foremost, a short sale relieves the stress of being in foreclosure and it allows the homeowner to get rid of their big mortgage payment and move on with their lives. A short sale allows you to stop a foreclosure proceeding and get a fresh start. In our experience, this is the primary benefit to the homeowner.

On the credit side, a short sale is arguably the lessor of two evils. Having some late payments, and a foreclosure filed has already done damage to your credit.. However, a completed foreclosure generally does more damage than a short sale agreed to by a lender. Obviously, a bankruptcy significantly damages your credit score.

5. I’m an investor, can I short sale my rental property?

Yes, but remember the “hardship” element which must be present. For investors there may also be some income tax issues resulting from mortgage relief.  Remember to consult your tax advisor.

6. Does it matter what kind of loan I have?

Possibly. In some instances there is a potential risk of a deficiency judgement or a lawsuit on a loan contract, as opposed to judicial foreclosure. Give us a call and we can discuss the specifics of your situation.

7. I am in foreclosure. Is a short sale for me?

Each situation is different and must be evaluated individually. The important factors in relation to a short sale are:

  • Property in foreclosure or default
  • Personal financial hardship
  • Little or no equity in the property
  • At least 60 days until eviction date
  • The value of the home has declined below the loan amount

If you feel you fit into these criteria, give us a call and we can discuss your specific situation.

8. What if my mortgage is an FHA, HUD or VA mortgage?

Generally, short sales can be accomplished on all of these types of mortgages, though each one has different criteria.

9. What options other than a short sale might I have?

  • Cure your mortgage default (bring your payments current)
  • Attempt a loan modification that adjusts the terms of your existing loan (lower your payment)
  • Refinance your mortgage with another lender (lower your payment)
  • Try to sell your home through normal channels
  • Attempt to get your lender to accept a deed in lieu of a foreclosure
  • File for bankruptcy

10. What is “financial hardship” and why is it so important?

“Financial hardship” is a critical part of the short sale equation. No matter what you hear about banks “not being in the business of owning real estate”, they DO NOT easily give homeowners a break. They require GOOD REASON to give a discount for a short a sale.  Remember in most cases the bank has to answer to it investors and shareholders.

The only reason a lender will agree to a short sale is if they determine that a short sale will net them more money than proceeding with the foreclosure. Understanding the homeowner’s financial hardship plays a major role in the lender’s estimation of whether or not it will be paid in full for the mortgage. Quite simply, the lender may try to make the borrower pay the shortfall if there is no hardship.

Many homeowners try to use a short sale as a “get out of jail free” card to dump a poor investment. Lenders will not allow this, and it is a waste of time to try. If you are employed and have some assets, but you have simply lost value in your home and want to sell, you probably cannot short sale. If you are current on your mortgage, it’s possible but very difficult to short sale. Lenders need to see that you simply cannot pay them before they will agree to a short sale.

11. Who owns the house after a short sale?

The purchaser of the house is the owner after a short sale, just the same as in a normal sale. The mortgage lender is paid off and the previous homeowner moves to a different home.

 12. What do I do about my back property taxes when I do a short sale?

Just as in a normal home sale, the property taxes are the responsibility of the homeowner until the date the sale is closed. Then they become the responsibility of the buyer. If your property taxes have not been paid this will affect the negotiations between the buyer and the bank, so you must inform the buyer of the taxes owed.

13. Do you handle homes in my area?

Our focus is Orange County, California, however, we will consider listings in other areas of Southern California. In addition, we work with other short sale specialists in California and can often refer your case to local Real Estate Broker if we cannot help you.

14. Do you handle duplexes, apartment buildings, condos, or commercial property?

We handle residential properties of all types in virtually all price ranges, but we currently do not handle commercial properties.

15. My home is already listed for sale on the MLS, but isn’t selling; can I still 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.

16. My home is really nice, why is the short sale offer price so low?

Sellers often have an emotional attachment to their home and may 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. It should therefore be of little concern what price is offered as long as the short sale is done. The only real exception is when the seller has tax liability concerns. (If there is tax liability, a lower sale price means a larger mortgage relief and a greater tax liability.) Otherwise, the price should not matter to the seller.

The important factor in a short sale is whether the lender will accept the price offered. Lenders often accept prices for short sales which may be surprising to normal homeowners or Realtors. Discounts of 30% are no longer uncommon. This happens for several reasons:

A. Sellers are often in denial about how bad the market really is for housing and therefore, how far the value has declined.

B. 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 a vacant home. This is all BEFORE having to try to sell the home as a bank-owned (REO) property and pay sales commissions. 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 be better off for having done so..

17. Who pays the real estate commissions on a short sale?

The commissions are paid from the funds the buyer places in escrow and because there is no equity in the house, the lender ultimately is the one paying the entire sales commission.

18. Are short sales guaranteed to work?

No. All of the criteria must be met before a bank will even consider a short sale. Even then, it isn’t easy to convince a bank that the market value of the home is lower than what they are owed.

Even if all the paperwork has been correctly completed it can take several weeks, or even months, only to be denied. If the lender does not approve the short sale, no transaction occurs. The Purchase Agreement becomes void and the listing continues.

Moreover, As the real estate market improves and the value of homes approaches and/or surpasses the amount owed it will become increasingly harder to obtain bank approval of a short sale.

19. How long does a short sale take?

A short sale can take 60 to 120 days or longer to complete. This is very important. The process is complicated and takes a lot of time. So to exercise the short sale option, you must act quickly. If you wait until one week before eviction, no one can help you with a short sale. It is simply impossible. DO NOT WAIT.

20. Why do I have to sign a Borrower’s Authorization?

The Borrower’s Authorization gives the lender permission to speak to your representative about your loan. That’s all it does, but it is necessary. An authorization must be filled out for each mortgage and for each Realtor or escrow officer authorized to act on your behalf.

21. I have heard that I could owe income taxes after a short sale, is this true?

Possibly, but it’s not that simple. There are a number of factors involved. For example, are you an investor or is the property your primary residence. Is the debt on the property “purchase money” or has the home been refinanced. If you’re an investor or if the property was refinanced are you insolvent? You can see how the matter can become complex in very short order. You must consult with an attorney or CPA on this issue.

When a lender writes off part of a loan (discounts it) the portion written off is the equivalent of a cash infusion to the owner. This “mortgage relief” is then reported as income to you by means of a 1099C form.

Even if you receive a 1099C and declare it as income, there is a good chance you will owe very little tax. This is because there is an IRS rule regarding “insolvency” which essentially says if you are insolvent (more liabilities than assets) at the time of the short sale, you don’t have to count the 1099C as income (instead you declare it, then obtain the exemption). There is an IRS form to complete to show you are insolvent. See the Internal Revenue Service website at www.irs.gov

In December of 2007, President Bush signed a new law into effect providing that for a specified period of time homeowners who satisfy certain requirements will not be taxed on mortgage relief. This bill is called, the “Homeowners Debt Forgiveness Act” and it may or may not apply to your situation.  This law was recently extended by President Obama up to December 31, 2013.

Again, you must consult your CPA or tax adviser.

20. I am behind on my mortgage payments, but not yet in foreclosure. Can I do a short sale?

Yes, as the market dropped, this happened with much greater regularity. Sometimes these are the most attractive short sales for both the buyer and the lender because the buyer can take advantage of the lender’s ability to avoid the vast majority of the costs of foreclosure.

In these cases, it is more important to have a very clear “hardship” story to explain to the lender why you are unable to make the payments.

21. My house needs a lot of repair; can I still do a short sale?

Yes, though it can make the process more difficult because the price must be lower to compensate for the repairs. The key is to show the bank’s appraiser all the work that needs to be done. Let me know in advance if this is the case with your home.

 22. I have more than 10% equity in my home – can I still do a short sale?

Probably not. However, you may be a candidate for a regular sale.

23. Other people are on the deed with me, but they don’t want to short sell. Can I still do a short sale?

No. All parties listed on the deed or mortgage must sign the short sale purchase agreement. There are no exceptions to this.

24. I have other liens (i.e. mechanics, IRS, court judgments) on my house; can I still do a short sale?

Yes, but it gets much more complicated and will take longer. If this is the case with your home, be sure to COMPLETELY list all liens you have. Each lien holder must be negotiated with individually. A short sale in this circumstance will take substantially longer.

25. I have property I inherited but I can’t afford the mortgage. Can I do a short sale?

Yes. You might also want to read our article, “Preserve Your Prop 13 Base Year For Your Children and Grandchildren“.

26. I have 2 or 3 mortgages on my house. Can I still do a short sale?

Yes, each mortgage or line of credit (HELOC) can be negotiated individually. It is important to know which mortgage filed the foreclosure or, if more than one are in foreclosure, which one filed first.

As the housing markets recover, fewer and fewer homes will be underwater until finally the short sale will again become an unusual event.

1 Mikey & Pixey Best 1

“ASK MIKEY”

http://www.AskMikeyHall.com

AskMikeyHall@gmail.com

voice: 949-887-1625

fax: 866-764-6325

DRE #00792478

Return To The Table of Contents

OTHER INTERESTING AND INFORMATIVE INFORMATION SOURCES

OC Property Management & Sales, Inc.

DRE Lic# 01886215

www.OCPropMgmt.com

OCPropertyMgmt@gmail.com

voice: 949-505-3838

fax: 866-764-6325

CALIFORNIA REAL ESTATE PRIMER – Short Sales From The Seller’s Point of View

DISCLAIMER

This article is intended to be a general discussion only and should not be considered legal advice. Your use of it does not create an attorney-client relationship. Any liability that might arise from your use or reliance on this article or any of its links is expressly disclaimed. This blog is not legal, accounting or tax advice, is not to be acted on as such, it may not be current, and is subject to change without notice.



SHORT SALES FROM THE SELLER’S POINT OF VIEW

Short sales, when considered through the eyes of the seller are, by far, more complex than when viewed by the buyer. Still, each situation is different and will turn on its own facts. The purpose of this discussion is to highlight a few of the areas of concern where the seller should obtain professional legal, tax, and/or credit advice. The law is constantly changing and the reader is warned not to rely on this discussion as anything other than a description of issues to be researched.

The notation C.C.P. refers to the California Code of Civil Procedure and the notation C.C. refers to the California Civil Code.  These are only two codes in what is a rather large body of California statutory law.

Foreclosure: In the event a borrower defaults on a loan, the lender may foreclose on the borrower’s real property which secures the loan. A foreclosure may take the form of a Trustee Sale Foreclosure, or a Judicial Foreclosure resulting in a deficiency judgment. A foreclosure poses a number of threats to a borrower: (a) loss of the borrower’s home; (b) a foreclosure on the borrower’s credit report; and, (c) a potential deficiency judgment.

Deficiency Judgment: A deficiency judgement is a judgment obtained by the lender, in a judicial foreclosure, against the borrower for the difference between either the unpaid balance of the secured debt and the amount produced by sale, or the fair market value of the property, whichever is greater (C.C.P. § 726(b).) A lender may obtain a deficiency judgment only with a judicial foreclosure. The trustee’s sale foreclosure and the judicial foreclosure are mutually exclusive remedies.

When Deficiency Judgments Are Not Available: Under certain circumstances in California a deficiency judgement may not be available to a lender:

a. Purchase Money. If the loan was obtained to purchase an owner occupied residence (1-4 unites) and the loan is secured by that property the lender may not obtain a deficiency judgment against the defaulting borrower. The loan is entitled to “purchase money” protection (C.C.P. § 580b.). However, if the loan is the result of a refinance the new loan is no longer “purchase money” and is not entitled to protection.

b. Seller Carryback. If the purchase money loan for any type of real estate is financed by the seller and secured by that same property, the lender/seller may not obtain a deficiency judgment against the defaulting borrower. (C.C.P. § 580b)

c. Trustee’s Sale. A lender may not pursue a deficiency judgment against the borrower should the lender opt to foreclose by a trustee’s sale foreclosure (a non-judicial action). (C.C.P. § 580d.)

d. 3 Month Time Limit. An action for a deficiency judgment must be brought within 3 months from the time of a judicially-ordered sale. (C.C.P. § 580a.)  Be aware that time limits may be subject to exceptions and conditions and it is always wise to consult with your attorney.

e. Fair Value Limitations. A deficiency judgement is limited to the difference between the unpaid balance of the secured debt and the amount produced by judicial sale or the fair market value of the property, whichever is greater, in a judicial foreclosure (C.C.P. § 726(b).)

Junior Deeds of Trust: If a junior deed of trust is not purchase money or seller carryback, then the junior lien holder may sue on the note and the borrower on the junior loan may be presonally liable.

Exception To The One Action Rule: Typically a lender may not sue on a debt secured by a mortgage, except by judicial foreclosure (C.C.P. §726). An exception to this is if the property has become valueless after the lender’s security interest was recorded. In this case, the lender may sue directly on the debt, unless the borrower’s loan is either a purchase money or a seller carryback loan.

Risk of Deficiency Judgment and/or Direct Suit: The Seller is warned to consider carefully the risks of a deficiency judgment and/or a direct suit on the debt.

Other Lender Options: Borrowers should understand that lenders will sometimes consider solutions other than a foreclosure. These solutions might include:

a. Loan Workout or Modification: A loan workout is a resolution of the problem between the borrower and the lender which modifies the original loan agreement. Some of these options include forbearance (e.g. forgiving a portion of the debt or late charges); deferment; renegotiating interest rate, monthly payment amount, principal amount, maturity date; or the enforcement of an acceleration clause in the loan. It is worthwhile to investigate the current government sponsed programs such as the HAMP, HARP and HAFA programs.

b. Deed in Lieu of Foreclosure: After the borrower is in default, the borrower voluntarily delivers title to the lender for consideration and the lender accepts the conveyance of the property in full satisfaction of the mortgage debt.

c. Short Sale: A short sale is a transaction in which a lender allows the real property securing the loan to be sold for less than the remaining mortgage amount due and accepts the proceeds as full payment of the loan. This is generally the result of the borrower’s inability to make the mortgage payments and a property value which is less than the total amount owed on the mortgage(s).

Generally, a lender will not consider a short sale unless the borrower has stopped making payments on their loan and has in hand an actual offer to purchase the subject property.

New Loan: Sometimes it is possible to refinance the Borrower/Seller’s existing loans and thereby obtain an affordable monthly payment. The Borrower/Seller is encouraged to explore the possibility of refinancing the existing mortgage debt.

Debt Counseling: If borrower/seller’s inability to make the existing loan payments is due to other unsecured debt (e.g. charge cards etc) seller may benefit from the advice of a professional debt counselor.

Advice Of Counsel: Borrower/Seller is encouraged to seek the advice of an attorney as to the most appropriate course of action to be taken.

Effect Of A Short Sale On Credit Rating: A lender will likely report a short sale to credit bureaus as being “settled” for less than the full balance. This type of report will show up on the borrower’s credit report as a negative mark for seven to ten years (C.C. §1785.13). Even so, the effect of this negative mark is generally perceived to be less damaging than a reported foreclosure. Typically lenders will not negotiate how they report a short sale.

Tax Effects Of A Short Sale: The tax implications for the borrower can be significant and are relatively complex. In very general terms mortgage relief (i.e. a discount on the amount owed) will be reported to the IRS by the lender, and must be included in the borrower’s gross income.

On December 20, 2007 President Bush signed into law a measure giving tax breaks to homeowners who have mortgage debt forgiven. With the passage of “The Mortgage Forgiveness Debt Relief Act of 2007“, a taxpayer does not have to pay federal income tax on debt forgiven for a loan secured by a qualified principal residence. This tax break applies to debts discharged from January 1, 2007 to December 31, 2009. Qualified principal residence indebtedness is debt incurred in acquiring, constructing, or substantially improving the residence (up to $2 million for refinances).  Since its inception the Mortgage Forgiveness Debt Relief Act has been extended a number of times and may or may not be in effect at the time you are reading this post.

Before a short sale is contemplated, it is strongly recommended that the borrower seek the advice of a professional tax advisor.

Lender Not Required To Approve Short Sale: Sellers need to understand that lenders are not required to agree to a short sale and may refuse to proceed with a short sale even though a conditional approval has been issued. A lender may resort to a foreclosure all the way up until the actual close of escrow.

Lenders Are Not Required To Respond To Approval Requests: There is no requirement that a lender respond to a request for approval of a short sale/payoff.

Effects Of Late Payments: If borrower stops making payments and the lender begins the foreclosure process by filing a notice of default and then the borrower pays what is owed by the note, these activities may appear on the borrower’s credit report. The lender can report to a credit bureau receipts of any payments made 30 or more days after their due date. This may appear as a “foreclosure in process,” etc. and will harm the borrower’s credit rating. Before stopping payments on a mortgage, it is strongly recommended that the borrower seek the advice of a professional tax advisor.

It bears repeating that lenders are not obligated to accept a short-payoff and that Sellers and Real Estate Brokers have no control over whether Short-Pay Lenders will consent to a short-payoff. . A short sale may create credit or legal problems or may result in taxable income. Seller should always seek advice from an attorney, certified public accountant or other expert regarding such potential consequences of a short-payoff.


DISCLAIMER

This article is intended to be a general discussion only and should not be considered legal advice. Your use of it does not create an attorney-client relationship. Any liability that might arise from your use or reliance on this article or any of its links is expressly disclaimed. This blog is not legal, accounting or tax advice, is not to be acted on as such, it may not be current, and is subject to change without notice.

1 Mikey & Pixey Best 1

“ASK MIKEY”

http://www.AskMikeyHall.com

AskMikeyHall@gmail.com

voice: 949-887-1625

fax: 866-764-6325

DRE #00792478

Return To The Table of Contents

OTHER INTERESTING AND INFORMATIVE INFORMATION SOURCES

OC Property Management & Sales, Inc.

DRE Lic# 01886215

www.OCPropMgmt.com

OCPropertyMgmt@gmail.com

voice: 949-505-3838

fax: 866-764-6325

 

 

THE WESTRIDGE NEIGHBORHOOD – Pessaggio

  The Westridge Neighborhood
   The Passeggio Community Association

 

The Passeggio HOA, is a sub-association of the AVCA Master Association, and is a residential community of 111 exquisite condominiums located in the Westridge neighborhood of Aliso Viejo, California. The tract was built in five phases by the D.R. Horton company.

The Passeggio is located along the edge of the Aliso Canyon and many of the units have spectacular views of the Canyon. The Passeggio is conveniently located near the Westridge community park and is just a few minutes away from the Aliso Viejo town center with its shops restaurants and theaters.

The Passeggio has five different models of condominiums:

The Plan One is a 2 bedroom, 2 bath, carriage (second floor) unit with approximately 970 square feet of space. There is a second floor deck off the living room and a 1 car garage with direct access.

The Plan Two is a 2 bedroom, 2 bath, carriage (second floor) unit with approximately 1,223 square feet. The unit has direct garage access and was originally offered with an optional 3rd Bedroom conversion of the den.

The Plan Three is a 2 bedroom, 2.5 bath, two level unit with a 2 car garage with direct access. The unit is approximately 1,163 square feet.

The Plan Three X is a 3 bedroom, 2.5 bath, two level unit with a 2 car garage with direct access. The unit is approximately 1,349 square feet.

The Plan Four is a 3 bedroom, 2.5 bath, two level unit with a 2 car garage with direct access. The unit is approximately 1,397 square feet.

The information contained herein is deemed reliable, but must be independently verified.

Westridge Park

A Place For The Kids To Play

Other Interesting and Informative Websites

OC Property Management & Sales, Inc.

DRE Lic # 01886215

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voice: 949-505-3838

fax: 866-764-6325

THE WESTRIDGE NEIGHBORHOOD – Skyview

  The Westridge Neighborhood

  The Skyview Community Association

The Westridge Skyview Community Association

The Skyview tract of detached single family homes is composed of two separate tracts within the Westridge neighborhood of the city of Aliso Viejo. Both Skyview tracts are accessible off Oak View Drive. The original builder was Shea Homes. Skyview is not gated, and does not have a pool, spa or tennis court.

Access to the 73 freeway is only a short drive away. While located in a rural setting, the Westridge communities are positioned within a short distance of the ocean and its resort towns; freeway arteries leading to major employment areas, and the shops, restaurants and amenities of Mission Viejo, Laguna Beach and Aliso Viejo.

The 73 freeway links up with the 405 freeway corridor and provides quick access to the financial centers of Fashion Island Newport Beach, the John Wayne airport area and South Coast Plaza. The 5 freeway links up with the Tustin employment centers and shopping centers.

Skyview has five different models of homes:

The Baumgarten (model 1-A) is a 3 bedroom, 2.5 bath two level home with a 2 car garage and approximately 1,774 square feet. A fireplace is located in the family room and the front entry is through the living room. All of the bedrooms are upstairs and an optional deck off the master bedroom was offered by the builder.

The Baumgarten (model 1-B) is approximately 1,961 square feet and is a 4 bedroom 2.5 bath home is the model 1-A floor plane with a optional 4th bedroom.

The Berry Home (model 2) is approximately 1,971 square feet and is a 3 bedroom, 2.5 bath 2 level plan with a 2 car garage. This plan has a nook adjacent to the kitchen, an optional second floor deck and an optional 4th bedroom.

The Massey Home (model 3-A) is approximately 2,062 square feet and is a 3 bedroom, 2.5 bath 2 level home with a 2 car garage. This model was offered with an optional master bedroom retreat, an optional “bunk” room and an optional deck off the master bedroom. Additionally, an optional loft conversion to a 4th bedroom was offered by the builder.

The Massey Home (model 3-B) is approximately 2,201 square feet and is the model 3-A floor plan originally offered with a suite of at least 5 different bedroom/loft options.

The information contained herein is deemed reliable, but must be independently verified.

A Place For The Kids To Play
Other Interesting and Informative Websites

OC Property Management & Sales, Inc.

DRE Lic # 01886215

www.OCPropMgmt.com

OCPropertyMgmt@gmail.com

voice: 949-505-3838

fax: 866-764-6325

THE WESTRIDGE NEIGHBORHOOD – Woodlands

  The Westridge Neighborhood

  The Woodlands Community Association

  Westridge Park

  A Place For The Kids To Play

The Woodlands tract of single family detached homes lies in the Westridge neighborhood, within the city of Aliso Viejo. There are 74 homes in Woodlands. The community is not and has no pool or spa. Woodlands is located off Oak View Drive at Trail Canyon Drive. The original builder was Brookfield Homes. A few miles to the west is the Pacific Ocean and the famous city of Laguna Beach.

Access to the 73 freeway is only a short drive away. While located in a rural setting, the Westridge communities are positioned within a short distance of the ocean and its resort towns; freeway arteries leading to major employment areas, and the shops, restaurants and amenities of Mission Viejo, Laguna Beach and Aliso Viejo.

The 73 freeway links up with the 405 freeway corridor and provides quick access to the financial centers of Fashion Island Newport Beach, the John Wayne airport area and South Coast Plaza. The 5 freeway links up with the Tustin employment centers and shopping centers.

Woodlands has four different models of homes:

The Plan 1 (Model A) is a 3 bedroom, 2.5 bath two level home with a 2 car garage. Direct garage access is located through a service entrance into the kitchen. A fireplaces have been located in the living room. An optional bedroom was originally available in the upstairs loft space and an optional den was offered instead of the second bedroom. The master bedroom has an attached bathroom suite and walk-in closet. The laundry room has been placed upstairs. This model is approximately 1,499 square feet.

The Plan 2 (Model B) is a 4 bedroom, 3 bath, two level home with a 2 car garage. Direct garage access is through a service entrance in the island kitchen. A fireplace is located in the living room and an optional den or fourth bedroom downstairs was originally offered. Upstairs the master bedroom has an attached bathroom and both standard and walk-in closets. The second bedroom upstairs opens onto a deck over the garage entrance. This model is approximately 1,784 square feet.

The Plan 2X (Model C) is a 4 bedroom, 3 bath, two level home with a 2 car garage.. This alternative plan uses the Plan 2 design with an optional upstairs retreat. An optional extension to the master bedroom creates an attached retreat. This model is approximately 2,067 square feet.

The Plan 3 (Model D) is a 3 bedroom, 2.5 bath, two level home with a 2 car garage. Direct garage access for the 2 car garage is through a service entrance opening in the central hallway. This is an upside done plan with the bedrooms and family room on the first floor and the kitchen, dining room, living room and master bedroom on the second floor. This model was originally offered with an optional downstairs den in the place of the third bedroom. A laundry room has been located on the first floor at the back of the house. This model is approximately 1,894 square feet.

The information contained herein is deemed reliable, but must be independently verified.

Other Interesting and Informative Websites

OC Property Management & Sales, Inc.

DRE Lic # 01886215

www.OCPropMgmt.com

OCPropertyMgmt@gmail.com

voice: 949-505-3838

fax: 866-764-6325

THE WESTRIDGE NEIGHBORHOOD – Silver Oaks

  The Westridge Neighborhood

 

  The Silver Oaks Community Association

  A Gated Community

 

  Close To The Westridge Park

 

  And A Place For The Kids To Play

The Silver Oaks tract of single family detached homes lies in the Westridge neighborhood, within the city of Aliso Viejo. There are 81 homes in Silver Oaks. The community is gated and has no pool or spa. Silver Oaks is located off Oak View Drive. The original builder was Shea Homes and the tract was completed in 9 phases. A few miles to the west is the Pacific Ocean and the famous city of Laguna Beach.

Access to the 73 freeway is only a short drive away. While located in a rural setting, the Westridge communities are positioned within a short distance of the ocean and its resort towns; freeway arteries leading to major employment areas, and the shops, restaurants and amenities of Mission Viejo, Laguna Beach and Aliso Viejo.

The 73 freeway links up with the 405 freeway corridor and provides quick access to the financial centers of Fashion Island Newport Beach, the John Wayne airport area and South Coast Plaza. The 5 freeway links up with the Tustin employment centers and shopping centers.

Silver Oaks has nine different models of homes:

Mangis 1 – A (Model A) is a 4 bedroom, 4 bath two level home with a 3 car garage. In this model the garage is two cars wide with a tandem space on one side allowing 3 car parking. Direct garage access is located through a service entrance into the breakfast nook adjacent to the kitchen. Fireplaces have been located in both the family room and the living room. An optional recreation room was available downstairs next to the fourth bedroom. The downstairs floor plan is broken up by an interior atrium. An optional loft was offered upstairs near the stairs. The master bedroom has a single large walk-in closet and an attached bathroom suite. The laundry room has been placed upstairs. This model is approximately 3,407 square feet.

Mangis 1 – B (Model B) is a 3 bedroom, 4 bath, two level home with a 2 car garage. This alternative plan uses the Plan 1 – A tandem parking space for an optional bedroom/office. This model is approximately 3,607 square feet.

Mangis 1 – C (Model C) is a 4 bedroom, 5 bath, two level home. This alternative plan uses the Plan 1 – A tandem parking space for an optional bedroom and the interior atrium space as an optional office. An optional extension to the master bedroom creates an attached retreat. This model is approximately 3,882 square feet.

Pagano 2 – A (Model D) is a 4 bedroom, 4.5 bath, two level home with a 2 car garage and a separate 1 car garage. For a total of 3 car parking. Direct garage access for the 2 car garage is through the optional bedroom/office, and direct access for the separate 1 car garage is thru the study. The Plan 1 – A interior atrium is now a courtyard at the front of the house. A breakfast nook is located adjacent to the kitchen. Fireplaces have been placed in family room and the living room. Upstairs the master bedroom has one standard closet and a large walk-in off the attached master bath suite. An optional loft is located can be located above the dining room. This model is approximately 3,705 square feet.

Pagano 2 – B (Model E) is a 5 bedroom, 5.5 bath, two level home with a 2 car garage. The Plan 2 – B is basically the Plan 2 – A with an extra optional office space gained at the expense of the 1 car garage space. This model is approximately 3,905 square feet.

Pagano 2 – C (Model F) is a 6 bedroom, 6.5 bath, two level home with a 3 car garage. The Plan 2 – C is basically the Plan 2 – A with a bedroom and bath option located in the 1 car garage space. 3 cars wide and an optional downstairs bedroom/office is offered. This model is approximately 4,147 square feet.

Powell 3 – A (Model H) is a 4 bedroom, 4.5 bath, two level home with a 3 car garage. This model uses a separate 1 car garage giving parking for 3 cars. The service entrance for the 2 car garage is through an optional office/bedroom and the 1 car garage opens into a nook overlooking a small gated patio in the front of the house. A courtyard is located off the optional bedroom/office. The island kitchen is immediately adjacent to the family room. Fireplaces have been located in both the family room and the living room. The upstairs master bedroom complex includes a bedroom, retreat, bathroom suite and walk-in closet. This model is approximately 3,753 square feet.

Powell 3 – B (Model I) is a 5 bedroom, 5.5 bath, variation of Plan 3 – A with a 2 car garage. The square footage of this model isn’t listed in an authoritative source.

Powell 3 – C (Model J) is a 6 bedroom, 6.5 bath, variation of Plan 3 – A with a 2 car garage. This model is approximately 3,957 square feet.

The information contained herein is deemed reliable, but must be independently verified.

Other Interesting and Informative Websites

OC Property Management & Sales, Inc.

DRE Lic # 01886215

www.OCPropMgmt.com

OCPropertyMgmt@gmail.com

voice: 949-505-3838

fax: 866-764-6325