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SD Realtor
ParticipantItokuda my advice is certainly not to work out a deal to refinance your home or workout a deal with the lender. I would agree that the original poster did not have a well thought out strategy when purchasing the home and like most everyone else placed all the eggs in the my house will appreciate bucket because it HAS to!
My advice is to talk to the lender to learn about the short sale requirements and the consequences or shall I say differentiations of consequences in the reporting to the credit agencies by the lender in a short sale verses a foreclosure or deed in lieu of a foreclosure. You can talk to every attorney, cpa, or other agency in the world and you can read piggington and every other blog 24 hours a day. In the end the lender is who makes the report to the agency. Hiding from them and not finding out as much information as you can is not the right way to deal with this problem.
More often then not, even they will not know. Make no mistake this person will deal with many different groups at the lender as she goes through this process.
Getting used to it is the first thing to do.
SD Realtor
ParticipantItokuda my advice is certainly not to work out a deal to refinance your home or workout a deal with the lender. I would agree that the original poster did not have a well thought out strategy when purchasing the home and like most everyone else placed all the eggs in the my house will appreciate bucket because it HAS to!
My advice is to talk to the lender to learn about the short sale requirements and the consequences or shall I say differentiations of consequences in the reporting to the credit agencies by the lender in a short sale verses a foreclosure or deed in lieu of a foreclosure. You can talk to every attorney, cpa, or other agency in the world and you can read piggington and every other blog 24 hours a day. In the end the lender is who makes the report to the agency. Hiding from them and not finding out as much information as you can is not the right way to deal with this problem.
More often then not, even they will not know. Make no mistake this person will deal with many different groups at the lender as she goes through this process.
Getting used to it is the first thing to do.
SD Realtor
ParticipantItokuda my advice is certainly not to work out a deal to refinance your home or workout a deal with the lender. I would agree that the original poster did not have a well thought out strategy when purchasing the home and like most everyone else placed all the eggs in the my house will appreciate bucket because it HAS to!
My advice is to talk to the lender to learn about the short sale requirements and the consequences or shall I say differentiations of consequences in the reporting to the credit agencies by the lender in a short sale verses a foreclosure or deed in lieu of a foreclosure. You can talk to every attorney, cpa, or other agency in the world and you can read piggington and every other blog 24 hours a day. In the end the lender is who makes the report to the agency. Hiding from them and not finding out as much information as you can is not the right way to deal with this problem.
More often then not, even they will not know. Make no mistake this person will deal with many different groups at the lender as she goes through this process.
Getting used to it is the first thing to do.
SD Realtor
ParticipantGood advice seattle-relo. I would echo that.
1 – Talk to attorney.
2 – Talk to your CPA.Even before 1 and 2, call your lender. Your lender may/will most likely have conditions that will need to be met in order for them to accept a short sale. You may not be able to just list it now and poof get an offer and sell the home short. Most lenders (in the past) would not accept a short sale unless the home had been on the market for a few months and you were already in default. However as the market has deteriorated they may sing a different tune.
How your credit will be affected with respect to selling your home short verses a total foreclosure where you walk away totally is something that I cannot answer. That would be best answered by a credit counselor and/or your lender.
Let me say this again… CALL YOUR LENDER…Let the know the deal and then move in whatever direction you decide to move in. Even if you do sell it short, you can do so without paying any more monthly payments. You will go into default and again, I AM NOT ADVISING YOU IN ANY MANNER. Just pointing out options. I do not disagree that paying into a depreciating asset makes no sense. Everyone loves to crow about that but the ramifications of doing that are something I personally have little experience with.
Contraman posted recently that he saw an example of getting your credit repaired in a few years is possible. Again the extent to the credit damage of a foreclosure verses a short sale is something you need to find out about… Call your lender.
SD Realtor
ParticipantGood advice seattle-relo. I would echo that.
1 – Talk to attorney.
2 – Talk to your CPA.Even before 1 and 2, call your lender. Your lender may/will most likely have conditions that will need to be met in order for them to accept a short sale. You may not be able to just list it now and poof get an offer and sell the home short. Most lenders (in the past) would not accept a short sale unless the home had been on the market for a few months and you were already in default. However as the market has deteriorated they may sing a different tune.
How your credit will be affected with respect to selling your home short verses a total foreclosure where you walk away totally is something that I cannot answer. That would be best answered by a credit counselor and/or your lender.
Let me say this again… CALL YOUR LENDER…Let the know the deal and then move in whatever direction you decide to move in. Even if you do sell it short, you can do so without paying any more monthly payments. You will go into default and again, I AM NOT ADVISING YOU IN ANY MANNER. Just pointing out options. I do not disagree that paying into a depreciating asset makes no sense. Everyone loves to crow about that but the ramifications of doing that are something I personally have little experience with.
Contraman posted recently that he saw an example of getting your credit repaired in a few years is possible. Again the extent to the credit damage of a foreclosure verses a short sale is something you need to find out about… Call your lender.
SD Realtor
ParticipantGood advice seattle-relo. I would echo that.
1 – Talk to attorney.
2 – Talk to your CPA.Even before 1 and 2, call your lender. Your lender may/will most likely have conditions that will need to be met in order for them to accept a short sale. You may not be able to just list it now and poof get an offer and sell the home short. Most lenders (in the past) would not accept a short sale unless the home had been on the market for a few months and you were already in default. However as the market has deteriorated they may sing a different tune.
How your credit will be affected with respect to selling your home short verses a total foreclosure where you walk away totally is something that I cannot answer. That would be best answered by a credit counselor and/or your lender.
Let me say this again… CALL YOUR LENDER…Let the know the deal and then move in whatever direction you decide to move in. Even if you do sell it short, you can do so without paying any more monthly payments. You will go into default and again, I AM NOT ADVISING YOU IN ANY MANNER. Just pointing out options. I do not disagree that paying into a depreciating asset makes no sense. Everyone loves to crow about that but the ramifications of doing that are something I personally have little experience with.
Contraman posted recently that he saw an example of getting your credit repaired in a few years is possible. Again the extent to the credit damage of a foreclosure verses a short sale is something you need to find out about… Call your lender.
SD Realtor
ParticipantGood advice seattle-relo. I would echo that.
1 – Talk to attorney.
2 – Talk to your CPA.Even before 1 and 2, call your lender. Your lender may/will most likely have conditions that will need to be met in order for them to accept a short sale. You may not be able to just list it now and poof get an offer and sell the home short. Most lenders (in the past) would not accept a short sale unless the home had been on the market for a few months and you were already in default. However as the market has deteriorated they may sing a different tune.
How your credit will be affected with respect to selling your home short verses a total foreclosure where you walk away totally is something that I cannot answer. That would be best answered by a credit counselor and/or your lender.
Let me say this again… CALL YOUR LENDER…Let the know the deal and then move in whatever direction you decide to move in. Even if you do sell it short, you can do so without paying any more monthly payments. You will go into default and again, I AM NOT ADVISING YOU IN ANY MANNER. Just pointing out options. I do not disagree that paying into a depreciating asset makes no sense. Everyone loves to crow about that but the ramifications of doing that are something I personally have little experience with.
Contraman posted recently that he saw an example of getting your credit repaired in a few years is possible. Again the extent to the credit damage of a foreclosure verses a short sale is something you need to find out about… Call your lender.
SD Realtor
ParticipantGood advice seattle-relo. I would echo that.
1 – Talk to attorney.
2 – Talk to your CPA.Even before 1 and 2, call your lender. Your lender may/will most likely have conditions that will need to be met in order for them to accept a short sale. You may not be able to just list it now and poof get an offer and sell the home short. Most lenders (in the past) would not accept a short sale unless the home had been on the market for a few months and you were already in default. However as the market has deteriorated they may sing a different tune.
How your credit will be affected with respect to selling your home short verses a total foreclosure where you walk away totally is something that I cannot answer. That would be best answered by a credit counselor and/or your lender.
Let me say this again… CALL YOUR LENDER…Let the know the deal and then move in whatever direction you decide to move in. Even if you do sell it short, you can do so without paying any more monthly payments. You will go into default and again, I AM NOT ADVISING YOU IN ANY MANNER. Just pointing out options. I do not disagree that paying into a depreciating asset makes no sense. Everyone loves to crow about that but the ramifications of doing that are something I personally have little experience with.
Contraman posted recently that he saw an example of getting your credit repaired in a few years is possible. Again the extent to the credit damage of a foreclosure verses a short sale is something you need to find out about… Call your lender.
SD Realtor
ParticipantPW sorry for being dense and not reading your question correctly. Actually most of my clients are more adept buyers. They are working with me mainly because of the rebate or from personal referrals so they do not require any sort of advice in that area. The question is a bit trickier because for me to say use a replacement cost of x$ based on a quite from a contractor would be a liability for me. The problem is that this sort of analysis is much to volatile and will change based on demand and who knows if joe contractor I got that quote from will be around. I understand your point and it makes sense but my advice would be to use a replacement cost based on the current comps MINUS the assessment of the land that can be gained from your property tax statement. Is that accurate? mmmm I would say it is debateable. Can it lead to overinsured valuations? YES. Is it better to be overinsured rather then underinsured? YES.
I like your point and for more sophisticated homeowners like yourself, it is more then likely the way to go. Additionally homeowners neglect that they should absolutely reassess the amount of coverage they have on the dwelling each year and adjust that value each year based on the direction of the market.
Do I have time to do that for my rentals? Heck no…
Those who give good advice rarely follow it…
ParticipantPW sorry for being dense and not reading your question correctly. Actually most of my clients are more adept buyers. They are working with me mainly because of the rebate or from personal referrals so they do not require any sort of advice in that area. The question is a bit trickier because for me to say use a replacement cost of x$ based on a quite from a contractor would be a liability for me. The problem is that this sort of analysis is much to volatile and will change based on demand and who knows if joe contractor I got that quote from will be around. I understand your point and it makes sense but my advice would be to use a replacement cost based on the current comps MINUS the assessment of the land that can be gained from your property tax statement. Is that accurate? mmmm I would say it is debateable. Can it lead to overinsured valuations? YES. Is it better to be overinsured rather then underinsured? YES.
I like your point and for more sophisticated homeowners like yourself, it is more then likely the way to go. Additionally homeowners neglect that they should absolutely reassess the amount of coverage they have on the dwelling each year and adjust that value each year based on the direction of the market.
Do I have time to do that for my rentals? Heck no…
Those who give good advice rarely follow it…
ParticipantPW sorry for being dense and not reading your question correctly. Actually most of my clients are more adept buyers. They are working with me mainly because of the rebate or from personal referrals so they do not require any sort of advice in that area. The question is a bit trickier because for me to say use a replacement cost of x$ based on a quite from a contractor would be a liability for me. The problem is that this sort of analysis is much to volatile and will change based on demand and who knows if joe contractor I got that quote from will be around. I understand your point and it makes sense but my advice would be to use a replacement cost based on the current comps MINUS the assessment of the land that can be gained from your property tax statement. Is that accurate? mmmm I would say it is debateable. Can it lead to overinsured valuations? YES. Is it better to be overinsured rather then underinsured? YES.
I like your point and for more sophisticated homeowners like yourself, it is more then likely the way to go. Additionally homeowners neglect that they should absolutely reassess the amount of coverage they have on the dwelling each year and adjust that value each year based on the direction of the market.
Do I have time to do that for my rentals? Heck no…
Those who give good advice rarely follow it…
ParticipantPW sorry for being dense and not reading your question correctly. Actually most of my clients are more adept buyers. They are working with me mainly because of the rebate or from personal referrals so they do not require any sort of advice in that area. The question is a bit trickier because for me to say use a replacement cost of x$ based on a quite from a contractor would be a liability for me. The problem is that this sort of analysis is much to volatile and will change based on demand and who knows if joe contractor I got that quote from will be around. I understand your point and it makes sense but my advice would be to use a replacement cost based on the current comps MINUS the assessment of the land that can be gained from your property tax statement. Is that accurate? mmmm I would say it is debateable. Can it lead to overinsured valuations? YES. Is it better to be overinsured rather then underinsured? YES.
I like your point and for more sophisticated homeowners like yourself, it is more then likely the way to go. Additionally homeowners neglect that they should absolutely reassess the amount of coverage they have on the dwelling each year and adjust that value each year based on the direction of the market.
Do I have time to do that for my rentals? Heck no…
Those who give good advice rarely follow it…
ParticipantPW sorry for being dense and not reading your question correctly. Actually most of my clients are more adept buyers. They are working with me mainly because of the rebate or from personal referrals so they do not require any sort of advice in that area. The question is a bit trickier because for me to say use a replacement cost of x$ based on a quite from a contractor would be a liability for me. The problem is that this sort of analysis is much to volatile and will change based on demand and who knows if joe contractor I got that quote from will be around. I understand your point and it makes sense but my advice would be to use a replacement cost based on the current comps MINUS the assessment of the land that can be gained from your property tax statement. Is that accurate? mmmm I would say it is debateable. Can it lead to overinsured valuations? YES. Is it better to be overinsured rather then underinsured? YES.
I like your point and for more sophisticated homeowners like yourself, it is more then likely the way to go. Additionally homeowners neglect that they should absolutely reassess the amount of coverage they have on the dwelling each year and adjust that value each year based on the direction of the market.
Do I have time to do that for my rentals? Heck no…
Those who give good advice rarely follow it…
ParticipantVC sorry to hear about your reticence. However no pity. I was one of those who advised you that whatever you did, be prepared for more depreciation. One can never identify the bottom but certainly one indicator would be volume leveling off… so if you walk away or work out the plan with your parents or whatever you do, if you do buy again, perhaps waiting until volume levels off would be a good thing.
To not realize that Temecula is on the heavy side of slope down is a large miss on your part. The fact is that Temecula/Riverside and other outlying areas will indeed bottom out sooner then more desireable areas. However when they do bottom I would expect them to stay flat for awhile and stay in a narrow range that will be defined by the investor participation to scoop up properties for rentals because raw buyer demand will not be sufficient out there.
PW – My advice for clients (who are buyers) is for them to scrub out a THOROUGH budget for the costs of owning the home. Regardless of whether it is owner occupied or a rental. Neglecting all the recurring costs one is saddled with for owning a home is not an option.
As far as building a home out in Temec or anywhere out there, I believe (like you I think) that it will indeed go low enough that you can get as good as, or close to the pricing of a build yourself and there is ALOT less hassle involved.
SD Realtor
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