What’s All This Talk About Short Sales on Chico Homes?
November 10th, 2007 Categories: Anatomy of a Chico CA Real Estate Transaction, Chico CA Real Estate News, Chico Financing
By guest author Mike Wiegert, Broker, Chico Homes
For Chico, CA homeowners that can’t afford to pay their mortgage, there is an alternative to bankruptcy or foreclosure proceedings – it is called the short sale.
The short sale really begins when you finally realize that your house just isn’t worth what it was just a few short years ago.
The next realization is that if you sell your house for what it’s really worth, you’re not going to actually get any proceeds back from the sale. That’s a big pill to swallow, but after you do, you might have the final realization that you’re really just starting from scratch like you did a few years ago. Back then, you’re credit was pretty good, you had your health, all your kids were fairly normal and you had a job. So rather than losing your home in foreclosure AND ending up with a terrible credit report, you think “I wish we could just be back to where we were back then.”
It’s at this point that a “short sale” might be the answer.
A short sale occurs when the net proceeds from the sale of a home are not enough to cover the sellers’ mortgage obligations and closing costs such as property taxes, transfer taxes and commission.
In other words, what a buyer might be willing to pay for your home isn’t going to cover what you owe on it and what it’s going to cost you to sell it. Unlike a foreclosure, a short sale can keep the homeowners credit intact. The first step is to do some research a find a Chico, CA Realtor that knows the Chico real estate market and has had experience and success in the short sale process. Your Realtor will need special skills and a persistent attitude in dealing and negotiating with your lender.
Banks are not in the business of owning and marketing homes and many would much rather discount the current amount of their loans than have to go through the process of marketing and holding a property in a slower market. This lender attitude will certainly grow as the number of foreclosures and repossessions increase. Conversely, the popularity of buying in the short sale market appears to be spreading rapidly.
Be advised, before you contract with any Realtor to market your home utilizing a short sale concept, you should consult a real estate attorney for the legal implications of the short sale and an accountant about the tax liabilities involved in the short sale.
You must understand everything upfront before the short sale process begins- look to your Chico CA Realtor for assistance.
1. You must prove to your lender that you are unable to afford to pay your mortgage.
If your lender is aware that you possess certain assets such as stocks or bonds, or you have a high paying job, your lender may require you to sign a note promising to repay at a future time any discount of what you owe that they make in the short sale. If you do not possess these types of assets or your job clearly indicates that you would not be able to repay such a debt, it is possible it may be forgiven.
2. Next the lender will appraise the current market value of your home.
The lender, with the help of your Chico, CA Realtor will calculate the amount of the outstanding debt and the customary costs of selling. If the proposed short sale will bring them more money than they would get during auction, the lender will mostly likely agree to it. End result, you didn’t pull the equity out of your home that you might have thought you had, but your credit is still intact, you’re out of a mortgage payment you can’t afford and the dream of once again owning a little corner of this world still burns brightly!
If you find yourself in a situation where your payments are are becoming too much to handle, please contact us at Chico Homes! We may be able to assist you in selling your home and avoiding a credit-destroying foreclosure.
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Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
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Chico CA pictures, Bidwell Park in early October 2007
October 26th, 2007 Categories: Chico California Photos, Living in Chico
One of the best things about living in Chico, CA?
The unbelievable change in seasons! Chicoans enjoy a truly spectacular fall, with a virtual palate of colors evident, especially in areas like Bidwell Park. In this photo, the colors are just beginning to show… kind of like a preview for the main event. Talk about curb appeal for our Chico, CA real estate… the foliage can’t be beat!
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Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
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The View from a Canoe- California Park in Chico, CA
October 25th, 2007 Categories: California Park Neighborhood, Chico California Photos
Take a ride with me!
The California Park residential neighborhood is the only one in Chico, CA that boasts lake frontage.
Truly, the view from the water is unlike anything you will see from the road!
The first time we put our canoe in the water, we were in awe of the variety of home styles: we saw everything from “southern charm” to “ultra modern.” Each back yard had something different to offer. There were private boat docks, a sand beach, hammocks, landscaped terraces, gorgeous waterfalls, weeping willows, and my all time favorite: bright red canoes!
If you have the opportunity to visit the California Park area, a tour from the lake is a fun way to explore. (Note: The lakes are private. You must actually be a resident or guest.) There are 2 lakes, and two of them connect under a bridge on Lakewest Drive. There are several idyllic coves in which you will find residents enjoying the lifestyle unique to Cal Park. You might wave hello to a grandpa teaching his grandson to fish, view one of several large, grassy park areas, or (if you are REALLY lucky) spot one of the turtles that calls the lake home.
The neighborhood also boasts a series of cascading duck ponds which delight young and old alike. It is such a treat to visit the lakes in time to watch the baby ducks! There are usually families that include lots of fluffy babies, all chasing after the mama duck. The lake is shallow enough in many places to view the fish swimming below. And, if you’re paying attention, you can hear the tell-tale “ker-plop!” of a bullfrog jumping in the blue-green water!
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If you would like information on Chico, CA real estate and foreclosures in the California Park neighborhood, please feel free to call the neighborhood expert: Sandi Bauman at 530-864-5407.
Chico Homes is thrilled to have their new office located with water front views of California Lake at 2580 Sierra Sunrise Terrace, Suite 120.
Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
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Vallombrosa Avenue near Bidwell Park in Chico, CA
October 18th, 2007 Categories: Chico California Photos
Vallombrosa Avenue is a beautiful Chico, CA street that parallels lower Bidwell Park. It is coveted for it’s convenient location to the many walking trails and access to Little Chico Creek. Visitors will find a wide variety of Chico CA real estate in this location: everything from mid-century modern to bungalows to contemporary homes built this year.
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Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
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