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In My Opinion Category
California Short Sale Law Changes For Second Loans
A new law went into affect July 15 of this year, SB 458, concerning short sales, and the junior loans (seconds, thirds) on those short sales. Since 2010, if a bank who had the first agreed to the short sale, they could not come after the seller after the closing for a deficiency judgement(SB 931). SB 458 is almost the same law, except for junior loans.
New California Short Sale Law
Typically, in a short sale with 2 loans, the first usually offers $1000-$3000 to the second to agree to the short sale. The second, unless there was settlement language that included that the loan was paid in full, and there would be no deficiency judgement, would reserve the right to come after the seller later for the remaining money owed. Sometimes they would require a seller to sign a promissory note for the difference of what they were getting and what was owed. The second loans are almost always the hardest part of a short sale. Most sellers will not agree to additional monies owed, when they won’t even own the home.
SB 458 now extends the law towards junior lien holders. If the junior lien approves the short sale, they can not come after the seller for a deficiency judgement or a promissory note.
Now before everyone gets all excited about this new law, in my opinion there are some possible side effects to this law. I think the banks that have junior liens, may just decide not to do short sales. If the home they have a second on, is foreclosed on, they can still go after the owner for the money owed. If they agree to the short sale, they get the $1000 – $3000 and that is it. If sellers are lucky, the first will decide it is worth it to offer more than they have in the past to the junior lien holders. It is too soon to see how the banks are going to react. I have heard of two short sale approvals that were approved, were pulled because of the new law.
Whether you are a buyer or a seller, if you are dealing with a short sale junior lien, I advise patience. This will probably slow down and stall the process for a while, during which time the banks will be deciding how to deal with the new law.
Folsom Price Per Square Foot for October 2010
Folsom is continuing to see small price drops. With a total of 46 homes sold in October, Folsom’s average price per square foot dropped 4.4% from last month. Last year Folsom’s home sales had us at $177 per square foot, and we are now at $161, down 9.2% from same time last year. If you look at this quarter vs last year same quarter we are down 7.2%.
The time it takes to sell a home in Folsom is also taking longer. Average days on market is running just over 100 days. Folsom has held its prices better than other areas, but while the tri-county region as a whole has seen some leveling off of price drops, Folsom does not appear to have leveled off yet.
Folsom Average Price Per Square Foot for October 2010
If you are a seller, this is the time to get aggressive in your pricing. The next few months will see less homes on the market due to the holidays and serious buyers will still be looking. Traditionally when we start the new year, homes start to pop back on the market.
If you would like to see this graph and numbers in the same square foot as your home, or as a home you are considering purchasing, contact me. I would be more than happy to send you a more specific graph.
Folsom Top Home Pick
REO Homes For Sale in Folsom
My mission this past week was to take a look at the Folsom foreclosed homes and find my Top Pick. Today there are 32 single family homes in for sale in Folsom, that are bank owned. Currently there are 29 bank owned that are pending. In the past month 18 homes have closed escrow that were bank owned. The average days on market for the sold homes, were 96, and only two of the sold homes sold for original list price. The Folsom REO’s sold for an average of 95.42% of list price. It looks like even the banks are not understanding where the Folsom home prices are and are not pricing the homes where the buyers will buy them.
Folsom Foreclosed Homes For Sale
While none of the bank owned homes, in my opinion screamed a deal, I did see one that had personality, seemed well maintained and if it fit your needs, would be worth a look. This home is an older home, built in 1975. The kitchen has been remodeled and has newer (and nicer) cabinets, granite counters, stainless higher end appliances. Wood floors throughout the home. Larger master bedroom, with two sliders. The home has 3 bedrooms, 2 baths and a 2 car garage. Room for RV parking. The backyard is huge (lot size is 10,280) and has a pool, with diving board. This home has lots of custom woodwork. The home is 1194 square feet. It does have a wood-shake roof and you would want to have someone take a look at it, to see what kind of shape it is in. It is priced at $224,900. My Folsom top pick home for sale is 113 Sierra Woods Circle. Click here to see more about it.
To see this home or others, contact me!
Wow, Just Found My Top Pick!
Latest Folsom Home For Sale To Be Top Pick
I keep my eyes open on all of the Folsom houses for sale, and this one was reduced, and because of the reduction, I have it as my Folsom Top Pick Home For Sale. It has been on the market as a short sale, that did not go through. Then it was foreclosed on. It first was listed 44 days ago, as a bank owned property, at $322,000. It was just reduced to $300,000.
Mechelle's Folsom Top Home Pick
This home is 1710 square feet, 3 bedrooms, 2.5 baths. There is a living room, dining room combination. Separate family room, with breakfast nook. Nice size kitchen, with plenty of cabinets (white tile counters), and a larger pantry. Inside laundry. The carpets need cleaning and the inset where the tv could go needs to be repaired. The home is in the Prairie Oaks neighborhood, within walking distance of Sandra J. Gallardo Elementary School and Folsom High School. Intel and the new Cal ISO, just a couple of minutes away. The backyard overlooks a greenbelt, so you would not have any neighbors behind you. As I always advise, if you purchase this or any other home, have the home inspected.
My top home pick is 365 Hansen Circle, Folsom. Priced at $300,000 it is now $175.44/sqft. Sold comps for the same size, age home in Folsom are running $185.06 average.
The Folsom mls # is 10055936, click here for more info and pictures. If you or someone you know, would be interested in seeing this home, contact me.
My Folsom Home Top Pick
There are 36 homes for sale in Folsom, priced between $300,000 and $350,000.
Eighteen are regular sales and eighteen are short sale. Average square footage for the homes for sale is 1,856. Average price per square foot is $181.28.
The Folsom homes that are pending are running an average of 1963 sqft and $176.01 price per square foot.
Homes in Folsom that have sold in the price range of $300,000 to $350,000 average 1,796 sqft and an average price per square foot of $182.98.
My top pick, is 2125 sqft, and priced at $325,000, $152.94sqft. The home has 4 bedrooms, one downstairs, 3 bathrooms. Formal living/dining room. Two car garage. Nice size backyard. Even possible rv parking. Normally, I don’t pick a home that is a short sale. This time I am and I will tell you why. The home just hit the market, it is due to go to foreclosure June 8, 2010. The first is with Wachovia. Right now, Wachovia is the best in wanting to get short sales sold and not letting them go to foreclosure. There is a small second with another bank. But less than $15,000. When I spoke with the listing agent, the main comment was , the bank needs to get an offer in. They do not want to see this go to foreclosure. Normally, to delay a foreclosure would take more than a week. I am being told that the agent has a contact that can stop the foreclosure if they get an offer. For a short sale, these all add up to good odds. This is one of those short sales, that if the home is a good fit for you, you should consider it, quickly!
My Folsom home for sale Top Pick is 128 Taunton Way, Folsom. To see more info about 128 Taunton Way, go to the search tools, MLS search and enter MLS #10042641. If you would like to see this home, contact me.
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