Tag Archives: liens

From Bad to Good-Unbelievable Results in a Short Sale!!

From Bad to Good-Unbelievable Results in a Short Sale!!

In a volatile economy with a recession in full swing, it is extremely hard for most people to imagine anything positive to happen in a bad situation. Well, with an upside down property and several liens in place, you would want to pay close attention in this article because you will find this SHOCKING!!

I just recently closed a short sale with numerous liens on the property, specifically IRS lien, child support lien, large past due HOA lien, and an active bankruptcy in place. This example is one of huge importance for the fact that the bank contributed to some of these debts despite the fact that the property had no equity. This is FREE money towards the owner’s debts. In addition, the owner of the property received bad advice before I talked to him to move out of the property and by doing so, gave up the qualifying right to receive several thousand dollars for moving and relocation expenses from the bank. This aside, the situation was still a win-win for the owner regarding getting free money from the bank to go towards debt that most likely would have to be paid through his bankruptcy Chapter 13 reorganization plan.

I have personally closed several short sale transactions with an active bankruptcy or shortly after discharge. This process is extremely valuable and very rare for any real estate agents to understand including process with these circumstances.

Another transaction I closed as a short sale in the past had 8 liens where the benefit of this one went completely to the debtor’s children in this case a child support lien in the amount of $24K and a settlement by the 1st lien holder bank paid of $12K! This is free money from the 1st Trust Deed Holder for a situation that was beyond out of control. Most of the other liens also received free money from the lien holder or were released with zero money to them.

Another transaction had liens on an upside down property from credit cards that were settled by negotiation and allowed by the lien holder. Again this is free money from a no equity sale or short sale that pays down a debt or settles them in full and in some cases I have done these has helped avoid a bankruptcy by the seller.

There are many people in situations as I mentioned above and there are literally no Real Estate Agents that know how or want to handle these situations. If you know someone with a similar situation, you will be a huge benefit to them and do a bigger charitable act by referring me to them for a no obligation, private and discreet consultation. CALL NOW! ONLY THE BEST GET THE BEST RESULTS!!

– John A. Silva

www.JohnASilva.com | (

Understanding Foreclosure

Understanding Foreclosure

It is an unfortunate commentary, but when economic activity declines and housing activity decreases, more real property enters the foreclosure process. High interest rates and creative financing arrangements also are contributing factors.

When prices are rapidly accelerating during a real estate “bonanza”, many people go to any lengths available to get into the market through investments in vacation homes, rental housing and “trading up” to more expensive properties. In some cases, this results in the taking on of high interest rate payments and second, third and even fourth deeds of trust. Many buyers anticipate that interest rates will drop and home prices will continue to escalate. Neither may occur, and borrowers may be faced with large “balloon” payments becoming due. When payments cannot be met, the foreclosure process looms on the horizon.

understanding foreclosuresIn the foreclosure process, one thing should be kept in mind: as a general rule, a lender would rather receive payments than receive a home due to a foreclosure. Lenders are not in the business of selling real estate and will often try to accommodate property owners who are having payment problems. The best plan is to contact the lender before payment problems arise. If monthly payments are too hefty, it may be that a lender will be able to make some alternative payment arrangements until the owner’s financial situation improves.

Let’s say, however, that a property owner has missed payments and has not made any alternate arrangements with the lender. In this case, the lender may decide to begin the foreclosure process. Under such circumstances, the lender, whether a bank, savings and loan or private party, will request that the trustee, often a title company, file a notice of default with the county recorder’s office. A copy of the notice is mailed to the property owner.

If the default is due to a balloon payment not being made when due, the lender can require full payment on the entire outstanding loan as the only way to cure the default. If the default is not cured, the lender may direct the trustee to sell the property at a public sale.

In cases of a public sale, a notice of sale must be published in a local newspaper and posted in a public place, usually the courthouse, for three consecutive weeks. Once the notice of sale has been recorded, the property owner has until 5 days prior to the published sale date to bring the loan current. If the owner cures the default by making up the payments, the deed of trust will be reinstated and regular monthly payments will continue as before. After this time, it may still be possible for the property owner to work out a postponement on the sale with the lender. However, if no postponement is reached, the property goes “on the block”. At the sale, buyers must pay the amount of their bid in cash, cashier’s check or other instrument acceptable to the trustee. A lender may “credit bid” up to the amount of the obligation being foreclosed upon.

With the recent attention given to foreclosure, there also has been corresponding interest in buying foreclosed properties. However, caveat emptor: buyer beware. Foreclosed properties are very likely to b e burdened with overdue taxes, liens and clouded titles. A buyer should do his homework and ask a local title company for information concerning these outstanding liens and encumbrances. Title insurance may or may not be available following a foreclosure sale and various exceptions may be included in any title insurance policy issued to a buyer of a foreclosed property.

This article is by California Title Company and Cam Hunter.

More questions? Need help with your property being foreclosed on?  Please, call me and let me help!

John A. Silva, Realtor

(619) 890-3648 | www.JohnASilva.com

Short Sale Memoirs & New Laws

The newest law in California is SB 458.  This law states that borrowers or owners of residential unit dwellings or properties of one to four units, will not experience any deficiency after a short sale extending to a junior lien holder.

Too good to be true, you’re asking? I have long known that the banks do not care about laws and take many months to implement them, whether they be federal or state government laws. They will march at their own drum. That being said, the new law that is instituted by the State of California is a joke!

Even senior lien holders of properties where there is only one loan, are still asking for a seller contribution. The California Law SB 931, passed in January of this year, clearly states there will be no contribution or deficiency and this new law, SB 458, piggy-backs on the SB 931 law. However, junior liens are still requiring contributions.

So why is this not applying to the junior liens and the SB 458 being enforced? Answer is, the banks want to test the validity of the law, while circumventing any loopholes that are there. The most important part of the new bill: “The bill would prohibit the holder of a note from requiring the trustee, mortgagor, or maker of the note to pay any additional compensation, aside from the proceeds of the sale, in exchange for a written consent to the sale.” This states that they can require seller to pay proceeds of the sale, but I have been successful to date with no seller contributions.  The lenders will do whatever it takes to squeeze money out of a transaction, but my track record shows that I have protected 99% of all sellers from contributions. Having an agent or short sale negotiator is now becoming paramount. I tend to avoid recommending many short sale negotiators because they do not have the experience I have in my two decades of short sale negotiating, since a huge problem is often caused in transactions due to the lender being not willing to pay them.

All new laws in real estate that are to help ward off the mess the government technically started by not limiting loan policies a few years ago has made the environment more difficult protecting the American Dream and helping citizens very little who pay their hard-earned money for taxes.

Bottom line–sellers want, and must have, a skilled and experienced agent with a team (assistant, attorney, accountant, escrow and title people) of problem solvers, that can get sellers out of their liability problems including past-due Home Owner Association Fees (which are collectible after bankruptcy filing post-petition or foreclosure). A short sale, when handled by me, will get paid past-due HOA fees with zero contribution by seller 99% of the time, call me today for a consultation, don’t delay!