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Chico CA Real Estate

Chico Homes

Sandi Bauman
Chico Realtor

2571 California Park Drive Suite 200 Chico, CA 95928
cell: 530-864-5407
email: [email protected]

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January 2013 Closings, The Sandi Bauman Team at Chico Homes Real Estate Sales

The Sandi Bauman Team Stats for January

Everybody says January is a slow month for sales. We beg to differ. See below.

Many potential sellers have been waiting for the distressed market to run it’s course, so that property values would stabilize and begin to recover. If you’re one of those homeowners, the Chico real estate market finally has good news for you!  Chico prices have improved by about 5.7% in the past 12 months. Combine that with super low interest rates and reduced inventory, and we might be looking at the exact opportunity that many homeowners have been waiting for.

One of the most important decisions a seller has to make, aside from timing, is which Realtor they should entrust to list, market, and negotiate their property.

What is important to consider when partnering with a professional? Do you need a big box, commercialized brand that feels familiar? Will a fleet of agents working for the company instill a sense of confidence? Should the Realtor have the shiniest car in the lot?  Open houses all weekend?  Is their website the deciding factor?  A snazzy name tag?

The Sandi Bauman Team at Chico Homes is a little non-traditional. Some would say that we buck the system a bit. Truth be told, we kind of like it that way, because it works for us and our clients. Because we think outside the box, our compact team packs a serious punch. With one dedicated listing broker, three committed buyer specialists, and three top notch transaction coordinators, we often out-perform the offices with agent counts of 30 or more. We’ve chosen to focus our skills, streamline our systems, and dedicated ourselves to providing a refined service. Perhaps most importantly, we truly CARE that we are doing the best possible job that we know how to do for our clients.

Ready to list?

Year to date, we’ve outperformed our competiton 3 to 1 on the listing side. It would be our pleasure and privilege to make YOUR story OUR next success story.

Call Top Chico Listing Agent Sandi Bauman! 530-864-5407.

SOLD BUYER OR SELLER PRICE
1. 797 College Hill, Paradise Buyer/Seller $135000
2. 14888 Carnegie, Magalia Seller $54500
3. 4907 O’Donnell, Forest Ranch Buyer/Seller $61000
4. 2139 Ceres, Chico Seller $189900
5. 13617 Lander, Magalia Seller $46000
6. 1194 Gossamer, Chico Seller $194000
7. 950 East, Chico Seller $310000
8. 6397 Zuckerman, Magalia Buyer $74500
9. 6366 Zuckerman, Magalia Seller $67600
10. 1769 Stark, Paradise Buyer/Seller $86000
11. 1201 Palm, Chico Seller $180000
12. 39 River Bluff, Oroville Seller $100000
13. 515 Eden, Paradise Buyer $95000
14. 17184 Manzanita, Sterling City Buyer/Seller $51300
15. 656 E 20th, Chico Buyer $115500
16. 3785 White Springs, Paradise Seller $212900
17. 6165 Some, Magalia Buyer/Seller $73000
18. 741 Gardella, Oroville Seller $72100
19. 5785 Copeland, Paradise Buyer/Seller $61199
20. 680 El Varano, Chico Buyer $160000
NOW PENDING! BUYER OR SELLER LIST PRICE
1. 286 Torry, Oroville Seller $196225
2. 8899 Skyway, Paradise Seller $7490000
3. 9244 Cohasset, Cohasset Seller $89900
4. 14858 Colter, Magalia Seller $109900
5. 196 Vista Del Rio, Gridley Seller $119900
6. 2300 Kennedy, Chico Buyer/Seller $194000
7. 9491 Perkins, Dayton Seller $129900
8. 4520 Lower Wyandotte, Oroville Seller $133500
9. 6366 Zuckerman, Magalia Seller $67600
10. 375 W Lassen #11, Chico Seller $139900
11. 3033 Burnap, Chico Buyer/Seller $139900
12. 5465 Princeton, Paradise Seller $139900
13. 6439 Gregory, Paradise Seller $154900
14. 2 Olympus, Chico Seller $169990
15. 1940 Indiana, Gridley Seller $174900
16. 1919 Feather, Oroville Seller $194900
17. 15 Melrose, Oroville Seller $209900
18. 741 Gardella, Oroville Seller $72100
19. 10 Shari, Chico Seller $244125
20. 449 Sequoyah, Chico Seller $249900
21. 2625 Vistamont, Chico Seller $249900
22. 1114 Nord Chico Buyer $85000
23. 449 Sequoyah, Chico Seller $249900
24. 1481 Filbert, Chico Buyer $190000
25. 20 Wrangler, Chico Buyer $109000
26. 13973 Jarvis, Magalia Buyer $114900
27. 5150 Oak Haven, Chico Buyer $379000
28. 1319 Elliott, Magalia Buyer $197000
29. 5660 Lower Wyandotte, Oroville Buyer $79900
30. 1919 Feather, Oroville Seller $194900
31. 4520 Lower Wyandotte, Oroville Seller $133500
32. 2165 Mariposa, Chico Buyer $159900
33. 3669 Hildale, Oroville Buyer $169900

Our comprehensive online marketing system is proven to get solid results! A couple of our fave sites to expose my listings:

chicorealestatesource.com
chicohomesales.net
searchchicorealestate.com

Call Sandi! 530-864-5407.

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Chico Real Estate Inventory is DOWN! List Now.

One question that I usually hear when I’m out on a listing appointment is “How do we know when it’s the right time to list our house?”

2012 Chico active inventory chart

The question becomes even more pointed at this time of the year. Traditional wisdom tells us that the best time to list is in the spring. The flowers are blooming, the grass is green, the birds are chirping…. AND a large number of other Chico sellers will be putting their homes on the market all at once. I’ve never really understood the rationale of putting a new listing on the market based on the time of the year. Historically, the last quarter is always the busiest time for my office. You know, the period that includes Halloween, Thanksgiving, and Christmas? The time of the year that is supposed to be the WORST time to sell a home because buyers are distracted with family, school vacations, shopping and travel. December 2011 was the single highest month for closed sales in my history. December 2012 resulted in over 30 pending sides for our tiny team.

My point is this: I don’t buy into the tradition of listing in the spring. If you’re looking to sell your home in 2013, my advice is to put it on the market as soon as you can get it ready. Interest rates are historically low, and the inventory levels in Chico are leaving a lot of buyers dissatisfied with their options. Inventory is lower now than it has been for the past 12 months. Actually, the last time we had less inventory was July of 2005! Less inventory means less competition for your property!

2010 to 2012 active real estate listings in Chico

Ready to sell? Call Sandi Bauman, the Top Chico Listing Agent for guidance. In 2011, Sandi Bauman and her Team sold more than 170 properties. The average Chico Realtor sold 5. It would be our pleasure and privilege to discuss your unique property. Call 530-864-5407 or email [email protected]

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Chico Is A Seller’s Market!

Historically low interest rates (3-4%) + low inventory = A SELLER’S MARKET.

As of this morning, there are only 153 active single family homes in Chico. Only 34 of those are under $200,000, which is a highly sought after price range. 79 homes sold in December 2012. 22 of those Chico homes sold for under $200k. We only have about 6 weeks of inventory available for buyers, which is considered LOW.

If you’ve been on the fence about putting your property on the market, now might finally be the right time. Lack of inventory in some price ranges is creating multiple offer scenarios on many properties. We’re finding it difficult to get some of our buyers into homes due to the competition with cash offers.

Considering selling? Call Sandi Bauman, the Top Chico Listing Agent for guidance. In 2011, Sandi Bauman and her Team sold more than 170 properties. The average Chico Realtor sold 5. It would be our pleasure and privilege to discuss your unique property. Call 530-864-5407 or email [email protected]

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HARP Eligibility Calculator. Do You Qualify For A HARP Refinance?

The Sandi Bauman Team can help you find a reputable lender to assist you with your HARP refinance. Let us know if you would like us to find a great match for you!

Need Help?

We will help you explore your distressed property options in Chico. We service Butte, Glenn and Tehama Counties! For a confidential consultation with The Sandi Bauman Team short sale negotiators, call 530-864-5407 or email [email protected]

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Home Affordable Foreclosure Alternative (HAFA)

Home Affordable Foreclosure Alternative (HAFA)

The Government’s H.A.F.A.® Program benefits borrowers who short sale their homes.

On the official Government website for H.A.F.A.®, it simply states the following:

“If the cost of home ownership has become too expensive to bear, the Home Affordable Foreclosure Alternatives Program ® (HAFA) allows you to transition out of your home and avoid foreclosure with $3,000 in relocation assistance and peace of mind.”

The HAFA program also says: “In many cases, [a short sale] is the dignified exit strategy where the borrower can sell their home and avoid the negative impact of foreclosure on their credit report and return to a better financial position.”

What does this mean for Chico home owners?

The exciting news for underwater homeowners, is that there is now a federally sanctioned and endorsed alternative to foreclosure.  Unlike foreclosure, with a H.A.F.A.® short sale you can be completely released from your mortgage debt after selling the property. This means you will no longer be responsible for the amount that falls “short” of the amount your lender receives for the property compared to what you still owe.  This deficiency is guaranteed to be waived by your servicer and H.A.F.A.® covers borrowers in all 50 states.

We would consider it a privilege to help you research your options and provide you with the tools and the education that you need to make informed decisions, thereby ensuring the best possible short sale outcome for you and your family in Butte, Glenn and Tehama Counties. Yes! We have extensive experience in areas surrounding Chico such as Paradise, Magalia, Durham, Oroville, Orland, Willows and Corning!

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What Documentation is Needed to Initiate a Chico Short Sale?

A common question:  “What Documents do I need to give you to initiate a short sale on my Chico home?”

1.  Third Party Authorization form.

2.  Most Recent Two Years of Federal Tax returns (complete with all schedules) signed (page 2) to include your W-2 or 1099.

3.  Hardship Letter signed and dated.

4.  Last 60 days of paycheck stubs.  If self employed, 12 months profit and loss. If not working, a written letter stating that you are not working signed and dated.  If collecting unemployment, disability, social security (SSA Benefit Statement) or any other income, please provide documents.

5.  Last 2 months of bank statements all pages even if blank.

6.  Copy of your mortgage statement or statements.

7.  Copy of your HOA statement if you have one.

8.  Copy of any liens on property (sewer, trash, HOA, any other judgments).

9. Provide any bankruptcy, foreclosure, litigation documents.

10. Divorce decree, alimony, child support or probate documents.

11. Copy of a utility bill.

PLEASE TRY TO KEEP YOUR HOA, TRASH AND SEWER CURRENT!   IF NOT CURRENT, PLEASE FORWARD THE CURRENT BALANCE DUE.

Need Help?

Let’s explore your short sale options.  For a confidential consultation with The Sandi Bauman Team Chico short sale negotiators, call 530-864-5407 or email [email protected]

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New Short Sale Rules Help Standardize Seller Cash Incentives

Distressed homeowners may receive cash to move after their short sale!

On November 1, 2012 Fannie Mae and Freddie Mac launched a new, cohesive short sale program that offers several inviting incentives for a distressed homeowner.  One important change is that a short sale may be allowed without the homeowner needing to have missed payments, and without the requirement of a repayment of the loan balance.  A seller who has disposed of their home via short short can be on the road to credit recovery much more quickly as a result.

Fannie and Freddie has formerly processed short sales under varying sets of guidelines, and had their own versions of the Home Affordable Foreclosure Alternatives (HAFA) program, which provided a $3,000 relocation assistance incentive to a short sale seller. The guidelines, however, were restrictive, and a lot of distressed homeowners seeking a short sale did not qualify for the cash payments.

With the new guidelines in place, an owner occupant seller can receive a $3,000 relocation payment to assist with their relocation expenses with the following exceptions:

1.  The seller (borrower) must contribute funds or execute a promissory note.  **In California, most home sellers are protected from having to sign a promissory note or contribute funds.

2.  The seller receives a Dislocation Allowance (DLA) or other government relocation assistance due to a military Permanent Change of Station (PCS) order.

3.  The lender has knowledge that the seller is receiving relocation assistance funds from another source, in which case the $3,000 might be reduced by that amount.

Approximately half of mortgages in the United States are backed by Fannie or Freddie.  Homeowners who have loans not backed by a Government Sponsored Entity (GSE) may be eligible for a short sale incentive offered by their bank.

BANK PROGRAMS:

Bank of America– B of A offers the HAFA program in addition to several others.  The most popular program is the “Cooperative Short Sale Program” with an “Enhanced Relocation Assistance.”  Payouts can be between $2.500 and $30,000.  B of A’s program applies to their pre-approved short sales (a short sale that is given a preliminary thumbs up by the bank prior to the seller presenting an offer from a buyer).  The value of the home is the basis for determining the incentive amount.  According to the current program, the short sale has to close by September 26, 2013 to qualify for a cash payment.

Wachovia–  Considered by some negotiators to be the most expedient and streamlined bank of all in terms of short sale practices, Wachovia may offer relocation assistance between $2,500 and $10,000.

Wells Fargo– Wells Fargo was offering relocation assistance between $10,000 and $20,000 to homeowners that complete a deed-in-lieu or short sale.  The offer was only available on first deeds of trust owned by Wells Fargo.

Citimortgage–  Citi may offer up to $12,000 as a short sale incentive on properties where Citi owns the loan.  There are a variety of guidelines that determine how much a distressed homeowner may be entitled to.

Chase Bank–  Chase has been known to offer incentives for a short sale up to $45,000.  There are restrictions.

This is only a small sampling of banks participating in seller incentives.  Be sure to call us (530) 864-5407 if you don’t see yours listed here.  We’ll help you explore the options that might be available to you.

Cash incentives are being offered to home sellers to encourage short sales!  Banks often do prefer short sales over foreclosure or loan modifications, and are actively working to increase the numbers of homes being sold via short sale.  Short sales generally net the bank 10-25% more than they would gain via a foreclosure sale.  It takes time and money to take back, maintain, market, and repair a property.  It’s taken several years, but banks are beginning to streamline their short sale processes, and the option is one that is now appealing to more home sellers, buyers, and Realtors.

Need help with your Chico Short Sale?

We will help you explore your distressed property options in Chico.  We service Butte, Glenn and Tehama Counties! For a confidential consultation with The Sandi Bauman Team short sale negotiators, call 530-864-5407 or email [email protected]

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What is the Short Sale Process for My Chico Home?

What is the Chico short sale process?

To complete a short sale in California, you must use a licensed real estate broker. This should be a broker who has experience and knowledge in short sale negotiations. The Sandi Bauman Team at Chico Homes combines the #1 Top Producing Listing Agent in Chico and a well- seasoned Short Sale Negotiator to bring you the best possible short sale experience. All of the Team members are licensed and will negotiate your short sale property with no out-of-pocket cost for you.  How is this possible?  The lender pays the listing commissions when we sell your property, and while the short sale process is occurring you are allowed to stay in your home.

Step 1: Determine if a Short Sale is Right For You.
Give us a call at 530-864-5407 so that we can help you determine if a short sale is your best option.  We will also recommend that you consult with your tax professional and real estate attorney.

Step 2: Obtain Required Documentation
Most lenders require specific documentation.  The documentation requirements can vary from lender to lender.  The documents are gathered and sent as a package to the lender.   A hardship letter will be required.  It explains why a borrower can no longer afford their monthly mortgage payments.   Hardships do not have to be financial in nature!  Give us a call so that we can discuss your specific situation.  Other requirements generally include bank statements, tax returns, paycheck stubs and a lender provided financial worksheet.

Step 3: Market the Property
The home is marketed to potential buyers through various channels.  The lender will want to see an offer that is near actual market value.  The lender will complete a price evaluation of your property, so we work very hard to procure the highest and best offer price to present to them.  Your choice of listing agents is very important here.  You need to hire a top producer who will aggressively market and negotiate the best offer possible to help ensure the success of your short sale.

Step 4: Negotiation of the Short Sale
Once there is an offer on your property, we submit the offer and paperwork to the lender and negotiate the deal.  Negotiations can be tedious and take time.  During this time we will continue to actively market your property to secure back up offers.

Step 5: Complete the Transaction
If the offer is close to the appraised value,  the lender will most likely green light the deal. The next and final step is to open escrow and close the transaction.  The lender will generally allow 30-45 days to close escrow.

Need help with your Chico Short Sale?

Let’s explore your distressed property options in Chico.  We also handle  most of Butte, Glenn and Tehama Counties! For a confidential consultation with The Sandi Bauman Team short sale negotiators, call 530-864-5407 or email [email protected]

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CA Civil Code 1695. Distressed Properties in Chico

What exactly does CA Civil Code 1695 say, and how does it apply to homeowners in Chico facing short sale or foreclosure?

Civil Code 1695

1695
(a) The Legislature finds and declares that homeowners whose residences are in foreclosure have been subjected to fraud, deception, and unfair dealing by home equity purchasers. The recent rapid escalation of home values, particularly in the urban areas, has resulted in a significant increase in home equities which are usually the greatest financial asset held by the homeowners of this state. During the time period between the commencement of foreclosure proceedings and the scheduled foreclosure sale date, homeowners in financial distress, especially the poor, elderly, and financially unsophisticated, are vulnerable to the importunities of equity purchasers who induce homeowners to sell their homes for a small fraction of their fair market values through the use of schemes which often involve oral and written misrepresentations, deceit, intimidation, and other unreasonable commercial practices.
(b) The Legislature declares that it is the express policy of the state to preserve and guard the precious asset of home equity, and the social as well as the economic value of homeownership.
(c) The Legislature further finds that equity purchasers have a significant impact upon the economy and well-being of this state and its local communities, and therefore the provisions of this chapter are necessary to promote the public welfare.
(d) The intent and purposes of this chapter are the following:
(1) To provide each homeowner with information necessary to make an informed and intelligent decision regarding the sale of his or her home to an equity purchaser; to require that the sales agreement be expressed in writing; to safeguard the public against deceit and financial hardship; to insure, foster, and encourage fair dealing in the sale and purchase of homes in foreclosure; to prohibit representations that tend to mislead; to prohibit or restrict unfair contract terms; to afford homeowners a reasonable and meaningful opportunity to rescind sales to equity purchasers; and to preserve and protect home equities for the homeowners of this state.
(2) This chapter shall be liberally construed to effectuate this intent and to achieve these purposes.

1695.1
The following definitions apply to this chapter:
(a) “Equity purchaser” means any person who acquires title to any residence in foreclosure, except a person who acquires such title as follows:
(1) For the purpose of using such property as a personal residence.
(2) By a deed in lieu of foreclosure of any voluntary lien or encumbrance of record.
(3) By a deed from a trustee acting under the power of sale contained in a deed of trust or mortgage at a foreclosure sale conducted pursuant to Article 1 (commencing with Section 2920) of Chapter 2 of Title 14 of Part 4 of Division 3.
(4) At any sale of property authorized by statute.
(5) By order or judgment of any court.
(6) From a spouse, blood relative, or blood relative of a spouse.
(b) “Residence in foreclosure” and “residential real property in foreclosure” means residential real property consisting of one- to four-family dwelling units, one of which the owner occupies as his or her principal place of residence, and against which there is an outstanding notice of default, recorded pursuant to Article 1 (commencing with Section 2920) of Chapter 2 of Title 14 of Part 4 of Division 3.
(c) “Equity seller” means any seller of a residence in foreclosure.
(d) “Business day” means any calendar day except Sunday, or the following business holidays: New Year’s Day, Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans’ Day, Thanksgiving Day, and Christmas Day.
(e) “Contract” means any offer or any contract, agreement, or arrangement, or any term thereof, between an equity purchaser and equity seller incident to the sale of a residence in foreclosure.
(f) “Property owner” means the record title owner of the residential real property in foreclosure at the time the notice of default was recorded.

1695.2
Every contract shall be written in letters of a size equal to 10-point bold type, in the same language principally used by the equity purchaser and equity seller to negotiate the sale of the residence in foreclosure and shall be fully completed and signed and dated by the equity seller and equity purchaser prior to the execution of any instrument of conveyance of the residence in foreclosure.

1695.3
Every contract shall contain the entire agreement of the parties and shall include the following terms:
(a) The name, business address, and the telephone number of the equity purchaser.
(b) The address of the residence in foreclosure.
(c) The total consideration to be given by the equity purchaser in connection with or incident to the sale.
(d) A complete description of the terms of payment or other consideration including, but not limited to, any services of any nature which the equity purchaser represents he will perform for the equity seller before or after the sale.
(e) The time at which possession is to be transferred to the equity purchaser.
(f) The terms of any rental agreement.
(g) A notice of cancellation as provided in subdivision (b) of Section 1695.5.
(h) The following notice in at least 14-point boldface type, if the contract is printed or in capital letters if the contract is typed, and completed with the name of the equity purchaser, immediately above the statement required by Section 1695.5(a):

“NOTICE REQUIRED BY CALIFORNIA LAW

Until your right to cancel this contract has ended,
_______ or anyone working for _______
(Name) (Name)
CANNOT ask you to sign or have you sign any deed or any other
document.”

The contract required by this section shall survive delivery of any instrument of conveyance of the residence in foreclosure, and shall have no effect on persons other than the parties to the contract.

1695.4
(a) In addition to any other right of rescission, the equity seller has the right to cancel any contract with an equity purchaser until midnight of the fifth business day following the day on which the equity seller signs a contract that complies with this chapter or until 8 a.m. on the day scheduled for the sale of the property pursuant to a power of sale conferred in a deed of trust, whichever occurs first.
(b) Cancellation occurs when the equity seller personally delivers written notice of cancellation to the address specified in the contract or sends a telegram indicating cancellation to that address.
(c) A notice of cancellation given by the equity seller need not take the particular form as provided with the contract and, however expressed, is effective if it indicates the intention of the equity seller not to be bound by the contract.
1695.5.
(a) The contract shall contain in immediate proximity to the space reserved for the equity seller’s signature a conspicuous statement in a size equal to at least 12-point bold type, if the contract is printed or in capital letters if the contract is typed, as follows:

“You may cancel this contract for the sale of your house without
any
penalty or obligation at any time before
_____________________________________________________________________.
.
(Date and time of day)
See the attached notice of cancellation form for an explanation of
this right.”
The equity purchaser shall accurately enter the date and time of day
on
which the rescission right ends.
(b) The contract shall be accompanied by a completed form in
duplicate,
captioned “notice of cancellation” in a size equal to 12-point bold
type,
if the contract is printed or in capital letters if the contract is
typed, followed by a space in which the equity purchaser shall enter
the date on which the equity seller executes any contract. This form

shall be attached to the contract, shall be easily detachable, and
shall contain in type of at least 10-point, if the contract is
printed
or in capital letters if the contract is typed, the following
statement
written in the same language as used in the contract:

“NOTICE OF CANCELLATION
___________________________________________________________________
(Enter date contract signed)

You may cancel this contract for the sale of your house, without
any penalty or obligation, at any time before
___________________________________________________________________.

(Enter date and time of day)
To cancel this transaction, personally deliver a signed and dated
copy of this cancellation notice, or send a telegram
to _______________________________________________________________,
(Name of purchaser)
at _______________________________________________________________
(Street address of purchaser’s place of business)
NOT LATER THAN _______________________________.
(Enter date and time of day)
I hereby cancel this transaction _______________________________.
(Date)
___________________________________”
(Seller’s signature)

(c) The equity purchaser shall provide the equity seller with a copy of the contract and the attached notice of cancellation.
(d) Until the equity purchaser has complied with this section, the equity seller may cancel the contract.

1695.6
(a) The contract as required by Sections 1695.2, 1695.3, and 1695.5, shall be provided and completed in conformity with those sections by the equity purchaser.
(b) Until the time within which the equity seller may cancel the transaction has fully elapsed, the equity purchaser shall not do any of the following:
(1) Accept from any equity seller an execution of, or induce any equity seller to execute, any instrument of conveyance of any interest in the residence in foreclosure.
(2) Record with the county recorder any document, including, but not limited to, any instrument of conveyance, signed by the equity seller.
(3) Transfer or encumber or purport to transfer or encumber any interest in the residence in foreclosure to any third party, provided no grant of any interest or encumbrance shall be defeated or affected as against a bona fide purchaser or encumbrancer for value and without notice of a violation of this chapter, and knowledge on the part of any such person or entity that the property was “residential real property in foreclosure” shall not constitute notice of a violation of this chapter. This section shall not be deemed to abrogate any duty of inquiry which exists as to rights or interests of persons in possession of the residential real property in foreclosure.
(4) Pay the equity seller any consideration.
(c) Within 10 days following receipt of a notice of cancellation given in accordance with Sections 1695.4 and 1695.5, the equity purchaser shall return without condition any original contract and any other documents signed by the equity seller.
(d) An equity purchaser shall make no untrue or misleading statements regarding the value of the residence in foreclosure, the amount of proceeds the equity seller will receive after a foreclosure sale, any contract term, the equity seller’s rights or obligations incident to or arising out of the sale transaction, the nature of any document which the equity purchaser induces the equity seller to sign, or any other untrue or misleading statement concerning the sale of the residence in foreclosure to the equity purchaser.
(e) Whenever any equity purchaser purports to hold title as a result of any transaction in which the equity seller grants the residence in foreclosure by any instrument which purports to be an absolute conveyance and reserves or is given by the equity purchaser an option to repurchase such residence, the equity purchaser shall not cause any encumbrance or encumbrances to be placed on such property or grant any interest in such property to any other person without the written consent of the equity seller. Nothing in this subdivision shall preclude the application of paragraph (3) of subdivision (b).

1695.7
An equity seller may bring an action for the recovery of damages or other equitable relief against an equity purchaser for a violation of any subdivision of Section 1695.6 or Section 1695.13. The equity seller shall recover actual damages plus reasonable attorneys’ fees and costs. In addition, the court may award exemplary damages or equitable relief, or both, if the court deems such award proper, but in any event shall award exemplary damages in an amount not less than three times the equity seller’s actual damages for any violation of paragraph (3) of subdivision (b) of Section 1695.6 or Section 1695.13; or the court may award a civil penalty of up to two thousand five hundred dollars ($2,500), but it may not award both exemplary damages and a civil penalty. Any action brought pursuant to this section shall be commenced within four years after the date of the alleged violation.

1695.8
Any equity purchaser who violates any subdivision of Section 1695.6 or who engages in any practice which would operate as a fraud or deceit upon an equity seller shall, upon conviction, be punished by a fine of not more than twenty-five thousand dollars ($25,000), by imprisonment in the county jail for not more than one year, or in the state prison, or by both that fine and imprisonment for each violation.

1695.9
The provisions of this chapter are not exclusive and are in addition to any other requirements, rights, remedies, and penalties provided by law.

1695.10
Any waiver of the provisions of this chapter shall be void and unenforceable as contrary to the public policy.

1695.11
If any provision of this chapter, or if any application thereof to any person or circumstance is held unconstitutional, the remainder of this chapter and the application of its provisions to other persons and circumstances shall not be affected thereby.

1695.12
In any transaction in which an equity seller purports to grant a residence in foreclosure to an equity purchaser by any instrument which appears to be an absolute conveyance and reserves to himself or herself or is given by the equity purchaser an option to repurchase, such transaction shall create a presumption affecting the burden of proof, which may be overcome by clear and convincing evidence to the contrary that the transaction is a loan transaction, and the purported absolute conveyance is a mortgage; however, such presumption shall not apply to a bona fide purchaser or encumbrancer for value without notice of a violation of this chapter, and knowledge on the part of any such person or entity that the property was “residential real property in foreclosure” shall not constitute notice of a violation of this chapter. This section shall not be deemed to abrogate any duty of inquiry which exists as to rights or interests of persons in possession of the residential real property in foreclosure.

1695.13

It is unlawful for any person to initiate, enter into, negotiate, or consummate any transaction involving residential real property in foreclosure, as defined in Section 1695.1, if such person, by the terms of such transaction, takes unconscionable advantage of the property owner in foreclosure.

1695.14
(a) In any transaction involving residential real property in foreclosure, as defined in Section 1695.1, which is in violation of Section 1695.13 is voidable and the transaction may be rescinded by the property owner within two years of the date of the recordation of the conveyance of the residential real property in foreclosure.
(b) Such rescission shall be effected by giving written notice as provided in Section 1691 to the equity purchaser and his successor in interest, if the successor is not a bona fide purchaser or encumbrancer for value as set forth in subdivision (c), and by recording such notice with the county recorder of the county in which the property is located, within two years of the date of the recordation of the conveyance to the equity purchaser. The notice of rescission shall contain the names of the property owner and the name of the equity purchaser in addition to any successor in interest holding record title to the real property and shall particularly describe such real property. The equity purchaser and his successor in interest if the successor is not a bona fide purchaser or encumbrancer for value as set forth in subdivision (c), shall have 20 days after the delivery of the notice in which to reconvey title to the property free and clear of encumbrances created subsequent to the rescinded transaction. Upon failure to reconvey title within such time, the rescinding party may bring an action to enforce the rescission and for cancellation of the deed.
(c) The provisions of this section shall not affect the interest of a bona fide purchaser or encumbrancer for value if such purchase or encumbrance occurred prior to the recordation of the notice of rescission pursuant to subdivision (b). Knowledge that the property was residential real property in foreclosure shall not impair the status of such persons or entities as bona fide purchasers or encumbrancers for value. This subdivision shall not be deemed to abrogate any duty of inquiry which exists as to rights or interests of persons in possession of the residential real property in foreclosure.
(d) In any action brought to enforce a rescission pursuant to this section, the prevailing party shall be entitled to costs and reasonable attorneys fees.
(e) The remedies provided by this section shall be in addition to any other remedies provided by law.

1695.15
(a) An equity purchaser is liable for all damages resulting from any statement made or act committed by the equity purchaser’s representative in any manner connected with the equity purchaser’s acquisition of a residence in foreclosure, receipt of any consideration or property from or on behalf of the equity seller, or the performance of any act prohibited by this chapter.
(b) “Representative” for the purposes of this section means a person who in any manner solicits, induces, or causes any property owner to transfer title or solicits any member of the property owner’ s family or household to induce or cause any property owner to transfer title to the residence in foreclosure to the equity purchaser.

1695.16
(a) Any provision of a contract which attempts or purports to limit the liability of the equity purchaser under Section 1695.15 shall be void and shall at the option of the equity seller render the equity purchase contract void. The equity purchaser shall be liable to the equity seller for all damages proximately caused by that provision. Any provision in a contract which attempts or purports to require arbitration of any dispute arising under this chapter shall be void at the option of the equity seller only upon grounds as exist for the revocation of any contract.
(b) This section shall apply to any contract entered into on or after January 1, 1991.

1695.17
(a) Any representative, as defined in subdivision (b) of Section 1695.15, deemed to be the agent or employee, or both the agent and the employee of the equity purchaser shall be required to provide both of the following:
(1) Written proof to the equity seller that the representative has a valid current California Real Estate Sales License and that the representative is bonded by an admitted surety insurer in an amount equal to twice the fair market value of the real property which is the subject of the contract.
(2) A statement in writing, under penalty of perjury, that the representative has a valid current California Real Estate Sales License, is bonded by an admitted surety insurer in an amount equal to at least twice the value of the real property which is the subject of the contract and has complied with paragraph (1). The written statement required by this paragraph shall be provided to all parties to the contract prior to the transfer of any interest in the real property which is the subject of the contract.
(b) The failure to comply with subdivision (a) shall at the option of the equity seller render the equity purchase contract void and the equity purchaser shall be liable to the equity seller for all damages proximately caused by the failure to comply.

As of May 1, 2007

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Federal Mortgage Lenders Ease Short Sale Guidelines

November 15, 2012

Short sales involving home loans guaranteed by federal mortgage lenders Fannie Mae and Freddie Mac will now be simplified under new rules that went into effect November 1st. The rules attempt to speed up the short sale process through three different means, chief among them allowing borrowers current on their payments to qualify for a short sale if they can prove a hardship. Eligible hardships include: relocation for a job, divorce, death of a borrower or co-borrower, disability, among others.

Deficiency judgments can also be waived under the new rules if the borrower pays a portion of the loan balance or signs a promissory note. Lastly, Fannie and Freddie are attempting to make reluctant second lien holders more amenable to short sales by allowing them to collect up to $6,000 during the short sale process.

Need Help?

Let’s explore your options! Is a short sale listing a good option for your Chico Home? For a confidential consultation with The Sandi Bauman Team short sale negotiators, call 530-864-5407 or email Send email to your [email protected]

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Sandi Bauman (Chico Homes): Real Estate Agent in Chico, Butte County, California
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