Foreclosures, MID (Mortgage Interest Deduction) & Short Sale Deficiencies

As the rate of foreclosures increase, as noted in the Fresno Bee, 10/13/2011, our goal is to establish a link between potential Sellers of distressed properties and potentials Buyers on a local level. If you are interested in becoming an investor, our Pre-Screened Foreclosure Service can be tailored to meet your needs, whether you are looking for a rental or to restore and flip properties. Let us help you identify properties as they become available, whether they are a short sale, a foreclosure or at auction. Call (559)897-4077 for details today.
According to the word on the street, the MID (Mortgage Interest Deduction) is still on the chopping block by the Super Committee of 12 in D.C. As early as last week, 5 “experts” testified before the Senate Finance Committee (not the Super one) regarding making changes to the existing law. The recommendation of all 5 witnesses before the committee were in complete agreement that now would not be the time to make any changes. The message: DO NO HARM.
And in the Short Sale arena, the new CA law that went into effect on July 15, 2011, expands the protection that a homeowner has from personal liability after a short sale. The general rule is that a mortgage lender is prohibited from pursuing a deficiency for a short sale involving a 1 to 4 residential property. The difference between what’s owed on the mortgage loan and what the lender receives as a payoff is called a deficiency. This new law will let a lot of local homeowners who have to sell their homes through a short sale, sleep a lot better at night.
As you can see by the CMA (comparative market analysis) to the right of this post, our real estate market here in Kingsburg is still holding steady. We currently have 43 homes on the market as compared to 35 at the end of August. Our DOM (days on the market) for SOLD properties decreased from 70 days in August to 58 in September. We closed escrow on 15 properties and in August we only closed 11 transactions. So again this month, some of the numbers are good, some not so good.
Don’t forget, Leonard and I are providing FREE pocket editions of The Constitution of the United States which includes the Declaration of Independence. So far, we’ve given away about 50 of these great little reference guides. You can pick up a FREE copy of it here at our office at 1340 Sierra St., or at the Kingsburg Chamber of Commerce, while supplies last. This is our little way of spreading the word about the importance of our government following the guidelines of the Constitution.

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