About Us | ©2011 Salt & Pepper Consulting  Short sales in brief by D'Ann Bartley In recent years, many home loans were made that  ultimately became too difficult for borrowers to repay as their circumstances changed. Many were not fixed rate loans but were low “teaser rates” that increased at certain times as the loans matured. Consequently, as home values decreased but mortgage payments increased, these borrowers could no longer make payments and faced foreclosure. Some homeowners have also faced unemployment, illness and other life- changing events and hardships as well, which has impacted their ability to repay these debts. One alternative to foreclosure is a short sale, which may release the borrower from the unaffordable mortgage obligation and also prevents having a foreclosure on the borrower’s credit history. In essence, a short sale is a transaction, subject to the lender's approval, in which the lender consents to a sale of the home for less than what is owed on the note and accepts the proceeds in full satisfaction of the loan amount. A short sale requires extensive paperwork and preparation on behalf of the borrower. Typically, before applying for a short sale, the seller must have a ready buyer and all the paperwork prepared to present to the lender. The buyer of the property must also be prepared for a protracted time period to conclude the purchase of the property. Short sale transactions are tedious to navigate. In California, fewer than 3 in 5 are successful. Most lenders will continue with the foreclosure process, even while negotiating a short sale within their “loss mitigation” division, sometimes resulting in the property going to auction before the short sale can be closed. Communication is quite limited, which is very frustrating for agents, buyers and sellers. The typical short sale transaction can take anywhere from 4-8 months to complete. No two banks are alike in their processing methods, there are no rules, and many buyers get tired of waiting and walk away. However, there are successful short sale transactions, and if you, or someone you know, is facing this type of situation, be certain to seek professional legal and tax advice. A REALTOR® is qualified to assist you with assessing the real estate market and the current value of your home and can help market and sell your home. Many have experience in packaging the materials for a short sale, for example, which will help to ensure success with the lender once a buyer is obtained. On March 10, Beth Peerce, 2011 President of the California Association of REALTORS®, released an open letter to California media regarding the challenges consumers and REALTORS® face with short sales. [This letter is reprinted on the next page. –Ed.] In the Santa Maria-Orcutt market area, these are the statistics as of March 16: • 354 Active listings, single family, condos, PUDs (planned unit developments) (not including land or mobile homes). • 197 (56%) are short sales or REOs (real estate owned, meaning bank-owned foreclosures). Of these: • 62% are short sale listings • 38% are REO listings In Foxenwood Estates, there are currently: • 11 Active listings, including single family, condos and PUDs, of which only one is an REO. Always remember real estate is local. Many of the news articles in print, on the Internet, TV and radio are generalized and/or have a national focus. For information about our local real estate market, contact your trusted local REALTOR®. He or she can provide you with the facts impacting the Santa Maria, Orcutt and Foxenwood markets! Please don't hesitate to ask questions of your own, at any time.  I'm always happy to answer questions about real estate, and if I don't know the answer, I can probably point you in the right direction! For more information regarding short sales, here are some good places to explore: Making Home Affordable Program Fannie Mae: Know Your Options From the California Association of Realtors®: LOS ANGELES (March 8) – Fewer than three of five short sales close in California, illustrating the complexity and difficulty of navigating lenders’ and servicers’ short sale procedures, according to a Short Sale Lender Satisfaction Survey conducted by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).  The survey gauges REALTORS®’ experience in working with short sale transactions – transactions in which the lender or lenders agree to accept less than the mortgage amount owed by the current homeowner. READ THE FULL STORY HERE Scammers or solicitors? Beware the knock on the door! Foxen News past issues! CC&R clickable map: Read yours! Keep track of Santa Maria  and Santa Barbara County  government meetings and agendas. 2012 Calendar County Supervisors: (Santa Maria @ 9am) Jan 10 Santa Maria Jan 17 Santa Barbara Jan 24 No meeting Jan 31 no meeting Feb 7 Santa Barbara Feb 14 Santa Maria Feb 21 Santa Barbara Feb 28 No meeting Mar 06 Santa Barbara Mar 13 Santa Maria Mar 20 Santa Barbara Mar 27 No meeting Apr 03 Santa Barbara Apr 10 Santa Maria Apr 17 Santa Barbara Apr 24 No meeting May 01 Santa Barbara May 08 Santa Maria May 15 Santa Barbara May 22 No meeting May 29 No meeting Jun 05 Santa Barbara Jun 19 Santa Maria Jun 26 No meeting Santa Maria City Council: 6:30pm, City Hall First & Third Tuesdays (calendar website) Foxenwood.com friend D'Ann Bartley is not only a licensed Realtor®, but is a prestigious Certified Residential Specialist, as well. She was the first to add a link to Foxenwood.com and we are very pleased to return the favor. To visit her Prudential website, Click here. Ms. Bartley is also a new advertiser in the Foxen News newsletter, so you can see she is involved in our community. Foxenwood 3 Basin: A love story! Santa Barbara County is spending thousands of dollars on a mudhole next door to Foxenwood Estates. Is it love or money? Read all about HERE . . .