Carson Valley Real Estate - Carson City Homes - Lake Tahoe Real Estate

A Testimonial from a Valued Carson Valley Client Worth Reading

After every transaction, we send out a feedback request to find out from our Carson Valley clients what they liked about our service, and welcome comments on areas for improvement. Today, we received one back we felt compelled to share with you…it reads:

In my opinion, the agents at Great Nevada Homes, Inc. should adopt the same code as the Boy Scouts, which could read:

An Agent is Trustworthy – Loyal – Helpful – Friendly – Courteous – Kind – Obedient – Cheerful – Thrifty – Brave – Clean and Reverent. These are not bad words to live by, and the agents at GNH do live and service by this Code.

I was helped out during this recession and the Short Sales of my three rental properties. The agents were able to help me by acquiring a release from the mortgage holders for the unpaid liability. All of the strategies happened just as we expected, in about the time frame we could expect during today’s hard times.

Thanks Great Nevada Homes.

- Lynn Bachman

Thank you, Lynn, for allowing us the opportunity to help you and for putting your trust in us.

Nevada Short Sales - The Short Sale Package Explained

When we list short sales, we counsel sellers up front on the financial disclosure they are going to have to make to us and to the lender(s) to get their short sale approved. For most people, exposing your full financial situation - especially when you are in distress - could be equated to standing on stage naked. So - in order to get over this 'fear of exposing yourself', let's talk about the short sale package and why we request all these documents in the first place.

Nevada Short Sales - What Goes Into the Short Sale Package? When we assemble a short sale package, the following items are included in this specific order:

1. Cover letter with a checklist of included items and a brief synopsis of the market
2. Listing Agreement
3. Third Party Authorization to Release Information
4. Completed Financial Worksheet
5. Hardship Letter
6. Proof of Income (last 2 paystubs for all borrowers)
7. Proof of Expenses (last 2 month's bank statements)
8. Last 2 year's tax returns including W-2's and 1099's (validates change in income)
9. Most recent mortgage statement (one for each loan on the property)
10. Signed Purchase Contract
11. Pre-Approval Letter from buyer's lender -OR- Proof of Funds Available to Close
12. Estimated HUD-1 Settlement Statement
13. Comparative Market Analysis (demonstrates current market value of home)
14. Complete Property History report including number of showings
15. Full set of photographs of the property including any deferred maintenance or damage photos
16. Estimated cost of repairs, if any
17. Full statistical report showing historical averages of prices over the last 3 years in area neighborhood where subject is located
18. Statistical report showing recent sales of foreclosures in area neighborhood where the subject is located
19. Current listings that are available for sale in the area neighborhood (priced lower that are not selling)
20. MLS Printout of subject property (showing it was marketed with a virtual tour and pictures and presented to the market properly)

Whew! By the time we're done with all that, it's the size of a hefty novel! So why do we include ALL THIS stuff with our short sale packages? We include it all because every piece of it is critical to getting your short sale approved. The financial documentation you provide is critical to demonstrating why you are deserving to be approved for the short sale, but it is just one section of the puzzle.

While you're busy exposing yourself financially, we are exposing ourselves as agents - demonstrating our knowledge in the market to make the case for why the current offer you have is valid and should be accepted. We present a full and complete picture of the market, including what the bank can expect to receive if they foreclose on you. Often, the short sale offer the bank has in it's hands is better than a bank owned selling price. It's also important to show that we marketed the property fairly in the Multiple Listing Service with not just one picture, but several pictures, and a virtual tour. The bank needs to see the property was exposed, too - to the market of available buyers.

Once the bank sees the full picture, short sale approval is usually willingly given. But you have to show the bank the full picture first.

Photo courtesy of PhilNel.com. This article originally published on CarsonValleyShortSales.com on March 14, 2011.

Things to Remember When Deciding Whether to Short Sale Your Nevada Home

Deciding whether or not to short sale your Nevada home is a big decision. It is not for the faint of heart, and is not a solution simply because you are unhappy your home is worth less than when you bought it. For a homeowner to successfully short sale a home, they need to be experiencing a genuine financial hardship. Once you have established that you are eligible for a short sale, it’s important to understand how a short sale will impact you – negatively. Primarily, a short sale will impact you in three ways: credit damage, tax liability and remaining debt liability.

First, let’s discuss the credit damage. A short sale will negatively impact your credit – don’t let anyone tell you otherwise. However, in a general sense, it usually impacts your credit less severely than a foreclosure. Since credit scores are determined by complex formulas that consider a specific collection of credit reporting data which is different for each person, it is difficult to explain the impact of a short sale in any meaningful way for any one person. It’s important to realize that the real credit harm of a short sale lies not in the mechanics of the short sale itself but in the late payments that usually precede it. As time passes, those entries on any given credit report are given less and less importance because they become historical. Current data is more important than data from years gone by. If you need more information on how a short sale will impact your credit, you should seek legal, tax, and other licensed professionals who can analyze your unique credit situation and perhaps provide more specific guidance relative to your personal situation.

Second, let’s discuss the tax liability associated with a short sale. Many homeowners are surprised at the end of the year when they receive a 1099-C from their previous home loan lender, only to find out that forgiven debt is considered taxable income by the IRS. There are two exceptions that may reduce or eliminate a borrower’s tax liability for this forgiven debt. The first option is insolvency. IRS tax code 108(a)(1)(B) can excuse insolvent borrowers from paying tax on a deficiency if they can prove they were insolvent at the time of the debt relief. This is not a real estate specific exclusion and relates to all debt discharge. IRS Publication 908 defines insolvency. The second exception is the Mortgage Forgiveness Debt Relief Act of 2007. With the passage of this law, a taxpayer does not have to pay federal income tax in 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, 2012. To determine whether you will be responsible for the tax liability associated with debt forgiven in a short sale, you are strongly encouraged to explore this topic further with a competent tax professional. 

Lastly, let’s discuss the remaining debt liability you may be obligated to pay when completing a short sale. Many homeowners decide to short sale their homes because they believe their debt burdens will be wiped out completely, only to find out afterwards they didn’t have all the facts. In order to find out whether your mortgage debts are eligible to be forgiven is to determine the type of loan you used to secure the property. Nevada is a recourse state, meaning most loans written in Nevada allow the noteholder to seek compensation for amounts owed – even after taking the collateral. This means your lender can continue to come after you for the amount owed even after they’ve taken possession of your home. They can file suit against you, garnish your wages, and use other methods to collect what is owed to them. Some lenders have the right to pursue a deficiency, but may choose not to. Legal action is time consuming and expensive. In Nevada, lenders have up to 6 years to pursue people for the balance remaining under a deficiency. Lenders may choose to wait until you’ve had time to recover financially and then file for a judgment against you. It is important when you are short selling your home to ensure that the property language is in your short sale approval letter waiving any deficiency balances and specifically forgiving the remaining amounts due. Once you receive your short sale approval letter, you should seek the advice and interpretation of a qualified legal professional to ensure the letter protects you. 

Nevada Short sales are complex transactions. Make sure you work with an agent that knows what they are doing and has a team of qualified tax and legal professionals to help you protect yourself and your family – today and for your future.

This article originally published at CarsonValleyShortSales.com on March 8, 2011.

Common Questions about Carson Valley Short Sales

Carson Valley Nevada short sales are getting easier than just a few years ago, and the industry has change for the better significantly. There are more consistent guidelines being applied by lenders, but homeowners still have questions about the process and benefits of a short sale. In this post we are going to answer 4 questions that almost always come up with I am counseling a seller considering a Short Sale in Nevada.

1. Why would I want to do a short sale? If you are experiencing a genuine financial hardship, it is in your best interest to avoid foreclosure if at all possible. First, no one wants a foreclosure on their credit history. It is very important to understand how a foreclosure affects your credit as opposed to a short sale. A foreclosure remains on your credit report for up to 7 years as an active account. This means it directly affects your credit rating for up to 7 years. When you consider a short sale as an alternative, a short sale settles your mortgage indebtedness for less than the full amount owed. When the escrow closes, so does the active reporting on your credit report. As time goes by, that short sale will have less and less impact on your credit reporting, because credit bureaus give less weight to accounts that are historical than accounts that are current. This doesn't even begin to address the emotional anguish or social stigma associated with a foreclosure. 

2. Why would a bank accept a Carson Valley short sale? For banks, many of these decisions are strictly financial. Banks accept short sales when they determine that the financial loss from the short sale is less than the loss would be if they foreclosed. There are significant financial costs associated with a foreclosure that banks must bear, so often a short sale is a better alternative for them if a foreclosure is likely.

3. Do banks always accept Carson Valley short sales? No. They do not. It is critical for anyone considering a short sale in Nevada to speak with a real estate professional who has a proven track record of success along with the education and experience necessary to work in this market specialty. That way, it will maximize your potential for success with your own personal short sale.

4. Will a bank accept a short sale if the homeowner is current on payments? It really depends on the lender and the specific situation. Sometimes the banks will accept a short sale if the homeowner is current, however it does not happen very often. The best way to find out is to simply submit a short sale file to the lender. As real estate professionals, we can never advise a homeowner whether they should fall behind in their payments in order to qualify for a short sale. Homeowners pondering this question should seek legal advice from a Nevada attorney on this topic. 

Disclaimer: Short Sales are complex transactions involving many factors that are unique in every transaction. We strongly recommend anyone considering a short sale in Nevada to contact qualified tax and legal professionals in addition to speaking with real estate professionals to determine the best solution. 

Photos courtesy of BenefitIQ and Swodeck via Photobucket.com.

Carson Valley Short Sales 101: Who is my Servicer? Who is my Investor? What is the Difference? Does it Matter?

When you make the decision to short sale your home, you are going to enter a financial world that may look a lot like Alice in Wonderland... There is so much jargon in the industry, sometimes it's hard for sellers and buyers alike to understand what is happening and who is involved in the transaction.

First, we defined a Carson Valley short sale. Briefly, a short sale is a real estate transaction where the proceeds of the sale do not cover the balance owed on the mortgage(s) and closing costs. A short sale occurs when the lender(s) agrees to accept less than what they are owed and allows the property to transfer ownership. In some cases, the lender(s) will accept this short payoff as full satisfaction of the debt (also known as waiver of deficiency).

When we say 'lender', however, that is sometimes misleading. Who is my lender? Well, this question is similar to a two headed dragon, and frankly, they may feel like that to you if you are suffering and behind in your payments on your mortgage. We answer that question with another question: Is your lender the servicer, or are they the investor?

You see, sometimes your 'lender' does not actually own your loan anymore. After they gave you the loan to buy your house, they sold your loan behind the scenes to an investor. And the investor then retained your 'lender' to service the loan. Servicing a loan usually includes sending you a statement every month, collecting the payment, paying the property taxes and homeowner's insurance. The 'servicer' then receives payment for administrating - or servicing - the loan. This is who the public deals with.

In contrast, the Investor - also known as the noteholder - is the actual party that OWNS THE LOAN. They are the people behind the servicer that make the decision whether or not to a accept a short sale. In many cases, the investor on any given loan is Fannie Mae or Freddie Mac. Click on the names below to find out if either of these entities own your loan.

Does Fannie Mae Own Your Loan?

Does Freddie Mac Own Your Loan?

If they do not, your loan may be what is commonly referred to as a portfolio loan. In that instance, the 'lender' services the loan and also owns the loan. Sometimes the loan could have been sold to a private investor as well.

When we being working on a Carson Valley short sale, one of the first things we do is determine who is the servicer and who is the investor. It's important for us to know who is the ultimate decision maker in order to get a short sale approved. While short sales are emotionally taxing for sellers and buyers, they are simply economic decisions for the investors. The investor - along with the servicer's assistance - makes a determination of which option - foreclosure or short sale - will results in the smallest loss to the investor.

This blog post was originally published on Carson Valley Short Sales on March 1, 2011.

Carson Valley Real Estate Agent Christianne Gordon Earns PSC Designation

Specializing in Pre-Foreclosure Solutions

Gardnerville, Nevada - February 23, 2011 - Local real estate agent, Christianne Gordon of RE/MAX Realty Affiliates, today completed her Pre-Foreclosure Specialist Certification, or PSC, training and announced her intent to become a resource for Carson Valley area homeowners in distress. This groundbreaking certification is the first homeowner-centric designation specifically aimed at avoiding foreclosure and completing a short sale. A short sale is when a lender agrees to take a loss on a particular property loan, allowing the homeowner and borrower a dignified way out and getting a new homeowner into the house, as opposed to foreclosing on the property and having it sit vacant for months. 

"I obtained this certification with the community in mind," Gordon said. "When faced with possible foreclosure, I've seen too many homeowners make poor choices, even walking away from their homes without so much as attempting to contact their lender or real estate agent. These people had no idea about the options available to them."

"I want to help the people of the Carson Valley make informed decisions about what to do when in foreclosure or behind on one's mortgage."

Christianne Gordon of RE/MAX Realty Affiliates is the latest certified agent with PartnerFirst's PSC designation, which is sweeping the country and making real estate agents everywhere a vital resource to their community and homeowners.

Son Nguyen, co-founder and COO of PartnerFirst, based in Corona, California, said that too many homeowners in foreclosure or behind on their mortgage payments are moving forward without assistance of any kind.

"PSC Certified Agents are helping distressed homeowners understand that there are alternatives to foreclosure," Nguyen said. "Christianne Gordon has been trained to help homeowners avoid foreclosure with a full host of options, advanced training and a homeowner-first method that will make her a vital resource to her community."

The PSC designation provides real estate professionals with the latest in cutting-edge training on everything regarding short sales, including the most up-to-date information on government legislation such as HAMP and HAFA as well as advanced negotiating and marketing techniques. PSCs are quickly becoming an important fixture in any community where foreclosure is looming over homeowners.

Fore more information on the PSC designation and PartnerFirst, visit http://www.partnerfirst.org.

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Carson Valley Real Estate Straight Talk: How Long Do Short Sales Take in the Carson Valley?

"How Long Do Short Sales Take In the Carson Valley" is often one of the first five questions anyone asks considering listing - or buying - a short sale.

The answer is not simple, and I'm not trying to be difficult. The truth is - IT DEPENDS...

Depends on WHAT, you ask? 

• It depends on the banks
• It depends on how many loans there are
• It depends on the Seller and how cooperative they are at getting information to the listing agent when requested
• It depends whether or not the listing agent KNOWS WHAT THEY ARE DOING

Dayton Valley Nevada Homes - UNDER CONTRACT - 222 Corral Drive in Dayton

This fantastic 4 bedroom, 2 bath starter home located in Desert Winds at Sutro went under contract within 10 days - even though it's a short sale. That just goes to show how tight the Dayton Valley Nevada Real Estate market is with just over 3 months of inventory available and over 57% of the market is some sort of distress.

Are you looking for a home in the Dayton area? Call us - we know the Dayton market and can help you buy the home of your dreams.

Are you looking to sell? You should call us, too! We consistently sell our listings in Dayton in record time, and it's because we have an incredible proven marketing program. If you're planning to sell your home, you owe it to yourself to meet with us to see what we do differently to get homes sold!

 Posted By: Christianne Gordon - Northern Nevada Real Estate Agent - REALTOR®
with RE/MAX Realty Affiliates, specializing in Carson Valley Real Estate and Northern Nevada Real Estate.

Carson Valley Real Estate - JUST SOLD - 1301 Santa Barbara Drive - Minden NV

This fantastic home JUST SOLD TODAY! Completely painted inside and out, on 0.71 acres, fully fenced with an outbuilding, this home truly showed pride of ownership! It had new carpet and sheet vinyl wood styled flooring that will have you thinking its hardwood, but it’s a snap to maintain! Very spacious rooms, a large family room, sunny eat-in kitchen with lots of cabinets, oversized 2 car garage, plus a large workshop out back wired for 220. Beautifully landscaped and perfect for entertaining. Convenient to schools, 395, recreation & more, this fantastic home just sold for $320,000.

If you're looking for a home - or you need to sell your home - in the Carson Valley, call us! We've sold this one but we have others! Please call Christy at (775) 881-8223 or Steve at (775) 690-0685.

Posted By: Christianne Gordon - Northern Nevada Real Estate Agent - REALTOR®
with RE/MAX Realty Affiliates, specializing in Carson Valley Real Estate.