Eisrael Gomez Realtor - Monterey County Blog

If you or someone you know are behind on your mortgage and facing foreclosure, you may feel desperate. The threat of losing your home is one of the most traumatic things that you may face in life. There are options!!

In an effort to avoid accumulating real estate and bad loans on their books, banks have become more and more eager to negotiate down on their payoff, taking what is now better known as a Short Sale (Selling the home for "short" of the balance due to the bank(s).

Short Sales provide an excellent, win-win solution for the distressed homeowner and their bank.

• The homeowner avoids a foreclosure on their record and the bank avoids the effort and expense of the foreclosure process.

The tragedy is that so few real estate professionals are educated about the Short Sale process, and homeowners remain unaware that such an option is available to them.

· IS A SHORT SALE RIGHT FOR YOU?

· NEW DECEMBER 2007 LAW HR3648 MAY BE OF HELP TO YOU! CALL ME ANY TIME…

831-809-8266

Ended MARCH 2008

COURTESY OF FORECLOSURE RADAR

 30-Year Mortgage Rates Slide

Spurred in part by unexpectedly weak economic data that could signal an impending recession, borrowing costs on long- and short-term home loans dipped during the past week.

Freddie Mac's statistics show a decline in interest on 30-year fixed loans to 6.07 percent from 6.17 percent last week, while 15-year fixed rates slid to 5.68 percent from 5.79 percent.

Adjustable-rate mortgages also registered lower interest, with five-year loans settling at 5.78 percent compared to 5.9 percent a week earlier and one-year products coming in at 5.47 percent for the week, down from 5.53 percent the week before.

Source: San Jose Mercury News (Calif.), Martin Crutsinger (01/04/08)

What does this translate to?  How about this.  Let's say you are looking for a 2 bedroom 2 Bath condo in North Salinas about 1100 square feet.  A foreclosed unit should go for about 180,000. 

Rate	6.07%
Price	$ 180,000
Down	3%
	$ 5,400
Term	30 yr fixed
Monthly	$1,054.69
Est Taxes	150
Est Ins	42
HOA	325
Total MonthlyPmt:	$1,571.36

How's them apples!  Of course, these are estimates and your results may very, etc, etc.   But, this estimate is a pretty good example of what you would pay monthly.  When you compare that to rent, and you are talking about your own home!  Not bad!  Time to fire the landlord!!!!!

Many Monterey County investors are coming and buying units such as this because of the low rates, and they are near break even.  If we put 20% down the Total Monthly Payment changes to $1,385.67!  No wonder investors are starting to make offers on properties that have been sitting around with long market times.  After all, this is Monterey County.  Our growth projections are incredible.  So this may be one of the best times to buy. 

Low rates, low prices, lots of foreclosures and negotiable sellers!  All saavy investors say buy low sell high!  This may be the time to buy low!  Don't wait for the media to change it's tune and get everyone on the bandwagon. You want to be making offers when no one else is making them.  Most people sitting on the fence are beginning to look,  right now!  Many of the good bargains do go quick, as investors and their Realtors are watching and waiting. 

I don't sell loans, but I do sell homes.  I hope you find the above informative. I would love love to hear your comments or questions.  E-mail me egomez@gomezhomes.com or call me at (831) 809-8266.  I look forward to hearing from you!

Eisrael Gomez

CENTURY 21 A Property Shoppe

NOVEMBER 2007 Statistics for Single Family Home Sales in Monterey County, CA

COURTESY OF REINFOLINK

"A goal without a plan is just a wish."

Antoine de Saint-Exupery (1900 - 1944)

Ready to discuss your Monterey County Real Estate goals?  Wether you are buying, selling, just have questions or need a list of homes in your area emailed to you.  Feel free to call or e-mail any time!

Eisrael Gomez

(831) 809-8266

Article from the California Association of Realtors Legal Department

President Bush signed into law yesterday a new measure giving tax breaks to homeowners who have mortgage debt forgiven. Under preexisting law, the debt forgiven by a lender, such as for short sales and refinances, was generally taxable to the borrower as debt discharge income. 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).

For purposes of calculating capital gains, any debts discharged excluded from income under the new law must be subtracted from the basis of the taxpayer's principal residence (but not below zero). However, taxpayers may generally exclude from capital gains income up to $250,000 (or $500,000 for married couples filing jointly) for properties owned and used as their principal residence for at least two of the last five years.

For a copy of the Mortgage Forgiveness Debt Relief Act of 2007, go to http://www.govtrack.us/congress/bill.xpd?bill=h110-3648.

You should always consult a CPA or a tax attorney regarding tax issues and how they will effect you.  The above law and article may lead to more homes being sold as a short sale.  If you or someone you know has questions regarding wether a short sale is right for you. Please contact me.  My consultation is FREE. 

There are many persons charging for the service to negotiate a short sale for your bank. Let my CPA and attorney team work for you and let you know if a short sale is right for you!!  Consultation is FREE. 

Eisrael Gomez

(831) 809-8266