What exactly is a short sale? A short sale is the sale of your property in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. We here at Whitney and Associates Real Estate in La Jolla, have been handling short sales for over 20 years in the San Diego area. We have helped 65 homeowners avoid foreclosure by selling their homes through a short sale transaction since the early 1990’s during the 1st Savings and Loan Crisis. In the 90’s, the amount between the original price the home was bought for and the price the home sold for in a short sale was considered taxable income. In the present, that amount is not considered taxable income but that is set to change in January 1st, 2010, so we advise sellers to act quickly.

It’s always wise to have an experienced short sale representative in these times to get the most for your home in the shortest amount of time possible. Here at Whitney and Associates, we put forth 100% of our efforts to get you, the seller, exactly what you need to avoid foreclosure. The bank generally requires the following items when inquiring about a short sale:

* HUD1 statement- This shows what the net income will be to the bank after closing (We prepare this for you)
* Hardship Letter – This letter states why you would like to sell your home in a short sale i.e. your income has changed and you can’t pay your mortgage, etc. (We work with the homeowner to write this)
* Listing Contract- The contract drawn up between the seller and the listing agent
* Purchase Contract (only some banks)- If someone is ready to put an offer on your property, a contract is drawn up and sent in as well
* Bank Statements- Your last few bank statements may be needed for review as well
* Letter of Authorization- To allow our Real Estate firm to speak with the bank on behalf of your loan

Later in the short sale process, banks may ask for W-2’s or other income verification documents. The time frame varies when it comes to short sale procedures. Some may take 2 to 3 months, others only 2 weeks. Our job as your real estate agent and short sale representative is to hold your property off from foreclosure as long as we try to sell the property. Typically, after 4 months from the first notice of default on your loan, the bank will contact you with foreclosure information. It is up to us to help prolong the short sale process so you do not go into foreclosure. Although a short sale does adversely affect your credit, it is usually far less than a foreclosure would.

There are currently almost 13,000 foreclosed homes in San Diego, CA and almost 8,000 in preforeclosure. You need a skilled negotiator familiar with the short sale process in order to prevent foreclosure, here at Whitney & Associates Real Estate, we can provide that.

SOURCE:

1. HomeSales San Diego- The San Diego Real Estate Insider web page (Short Sale & Phantom of Tax Debt Relief)

Gregg Whitney and his team sold my condo on Draper in a short sale, representing Washington Mutual. Gregg was very professional in working with the bank and he knew exactly what the bank was expecting. He helped put together the entire package including writing my hardship letter for me and getting the bank accept the sale of my condo at $100,000 less than they were owed. The sale was completed in a timely fashion, just 65 days. The Whitney team really helped me out in a difficult time and I would recommend them for a short sale or any other type of real estate transaction. They know exactly what it takes to get a short sale completed.

George O’Day

Here at Whitney & Associates Real Estate in La Jolla, we are one of only seven agents to represent Washington Mutual’s foreclosed properties in the San Diego County. We have exclusive representation of these properties, chosen for our reputation and client satisfaction. Whitney & Associates is in direct contact with the Washington Mutual short sale and loan modification representative, who gives us a monthly list of San Diego’s distressed properties, both prime ($1 million +) and subprime (less qualified, smaller) loans.

In the 1990’s, the Whitney team represented the bank, Home Savings of America, in its short sales and foreclosed listings. That bank then merged with Washington Mutual giving us direct contact with all of its listings as well (now Washington Mutual is part of JP Morgan). If you are looking to buy a Real Estate Owned (REO) property, it is best to use an agent with at least 10 years of experience. We have the experience, knowledge, and resources to get a buyer exactly what he or she needs.

What really sets us apart as the top La Jolla agency, however, is that we conduct a BPO or broker price opinion which is in very high demand. A BPO is a price analysis done in place of an appraisal, to determine the current valuation of the property. In doing this, we can give any potential buyers first shot at Real Estate owned and short sale properties.

If you are currently borrowing money from Washington Mutual in La Jolla and feel as though you can no longer make your payments, we have the resources to help you sell your home through a short sale without affecting your credit too greatly. As stated in our previous blog, Whitney & Associates has devised a package consisting of a hardship letter and HUD1 statement which we create for you, as well as gathered documents such as 3 months worth of bank statements necessary to complete the short sale.

Where does the name Billionaires Row come from you might ask? In 2008, Whitney & Associates Real Estate in La Jolla, trademarked Billionaires Row and assumed sole rights to the name. The name Billionaires Row was chosen to represent the luxury home market that exists in La Jolla, California. The strong name attracts buyers and potential sellers to our website where they can view dozens of luxury properties. Billionaires Row is different than the usual real estate company name- it creates a buzz around La Jolla like no other.

Here at Whitney and Associates in La Jolla, California, we have established vital relationships with large financial institutions in San Diego County and the greater southern California region. Banks such as Washington Mutual, Bank of America, Wells Fargo, and Countrywide have been working with us on short sale transactions to help us get a more immediate response when homeowners are in distressed positions. With these relationships, Whitney and Associates is able to move more quickly through the lengthy short sale transaction than would most real estate companies.

Our knowledge, experience, and connections help any distressed homeowner to put at ease as we smoothly guide them through the short sale process from the beginning stages with the hardship letter to the negotiations and final transactions of the sale.

The next 12 to 18 months or so represents a limited opportunity for investors and home buyers throughout San Diego to purchase foreclosures. Here at Whitney & Associates Real Estate, we not only help buyers in La Jolla but all-over San Diego County, and the hottest buys right now are in foreclosure and short sale properties.

Interest rates are at a historic low, just under 5%. It’s your time to jump in if you have been sitting on the sidelines waiting for home prices to decrease even further. There are currently approximately 9700 homes in foreclosure in San Diego as of March 2009. Whitney & Associates is here to help you find the perfect buy whether it be an investment property or your new home. We can assure quality advice and expertise throughout the foreclosure buying process.

With 22 years experience representing foreclosed properties for Washington Mutual, Countrywide, Bank of America, Home Savings of America, World Savings and TransAmerica we have the knowhow to save $100,000.

Source: http://www.foreclosureforum.com/index.html Copyright © 1997-2009, InnoVest Resource Management

In the past few months, statistics show that home sales are once again on the rise due to competitive bidding on properties and an increase in investors, first-time homebuyers, and builders. There are currently many insinuations that the San Diego housing market may be nearing the very bottom of the cycle.

Here at Whitney and Associates Real Estate in La Jolla, we have been tracking residential real estate trends and statistics as well as blogs and articles regarding the San Diego market. For the past 8 months, overall sales have increased from year-earlier levels. At the same time, record-low interest rates have encouraged buyers to enter the lower end of the market. This also explains the rising number of investment pools arising to purchase bulk quantities of Real Estate Owned (REO) homes and condos, with promised high returns. These investors are currently leading the market.

Home prices finally showed signs of stabilizing during January and February, however, most real estate experts would say the market has to have three to six months of consistent trend lines. Although the lower market is improving, the final component of a recovering housing market is the rebound of the upper market, which still remains sluggish. As soon as sale begin recovering outside of the foreclosed properties that will be the start of the recovery.

SOURCE: www.sdhomes.signonsandiego.com “Signs Suggest Country Housing Market Recovering” by Lori Weisberg and Roger Showley 5/6/2009

At Billionaires Row in La Jolla, our expertise of the area, extensive knowledge of the market, and impeccable client services, sets us apart from the rest. Not only have we been in the real estate business of La Jolla for 22 years, but we have handled La Jolla’s foreclosed properties for just as long. Having worked on foreclosures with major institutional lenders in the past such as TransAmerica, Home Savings, World Savings to name a few, we are now one of only seven agents in San Diego that work directly with Washington Mutual (now JP Morgan).

Working so closely with these financial institutions has helped us learn the mechanics of how each bank operates from the inside when it comes to foreclosures in La Jolla. We have a keen sense of what each bank allows as far as credits, extensions, and overall time periods to get a deal closed.

In this kind of market, we see a lot of overbids of foreclosed properties. Billionaires Row La Jolla has been successful by using escalator clauses. For example, we would write an offer for $5000 over the best offer presented not to exceed a certain amount. However, a number of banks are now requiring all buyers to submit their highest and best offers to be submitted for review. We try and beat out all other offers by making ours as clean as possible. For example, we may do a short close of escrow or not ask for the seller (in this case the lender) pay for termite inspections and termite work. This does not preclude the buyer from doing inspections and investigations. At Billionaires Row La Jolla, we use one of the best physical inspectors in the greater La Jolla area and conduct detailed investigations of the property you are buying. We use a camera to snake down the sewer line and check all sewer connections, search for mold or potential mold problems; extensively search for any structural issues, etc. All of the findings from these procedures could potentially change the valuation of the property from what we may have the home in escrow for. Conducting these intense investigations has helped make our strong reputation and allow hundreds of past clients or friends in La Jolla to refer new buyers to us looking for short sales and foreclosures in La Jolla.

We also have a customized website that notifies you, the potential buyer, of all La Jolla foreclosures and defaults on a daily basis. In addition to La Jolla foreclosures, we follow all of the defaults on homes in the La Jolla area. Having that list of defaults permits us to contact the La Jolla homeowner directly prior to the property going into foreclosure. We then negotiate directly with the La Jolla homeowner and help him or her into a short sale before the property is turned over to the lender.

If a property in La Jolla ends up going to foreclosure in a trustee sale- the home can be purchased directly on the court steps with a cashier’s check. Billionaires Row La Jolla can help you determine if the value is good or if it is still too high. If in fact the value is too high, we would advise you to wait and let it go into foreclosure. With our strong relationships with lenders, it allows us to go directly to the bank before it gets handed to another realtor. At that point, it’s very simple. We conduct a strategic Broker’s Price Opinion (BPO) to determine the value to best represent out La Jolla buyers.

It is extremely important when choosing an agent in La Jolla that you choose one who can determine the intrinsic value of a property, one who has vast experience in the La Jolla area, and one that can help you obtain the best value in the purchase of a La Jolla home or condo.

Values are the lowest they have been in the past 10 years with some La Jolla homes being discounted 60% of the value they were in 2005. Right now is a great time to buy foreclosed properties in La Jolla, we are here to help.

Gregg and Lisa Whitney of Billionaires Row La Jolla have been making real estate magic for the past 22 years. Being natives of La Jolla, Gregg and Lisa know the La Jolla market better than most, having grown up in La Jolla, attended school in La Jolla, and now raising their 2 children in La Jolla, one attends La Jolla High School the other attends Muirlands Middle School, Gregg and Lisa are very keen on the community, school system, and of course, the real estate market conditions.

Not only do they know the La Jolla market like the back of their hand, Gregg and Lisa’s numerous relations with everyone in the La Jolla community really sets them apart as agents. One of the most important relationships they have for helping to purchase foreclosed properties is that with the banks. They are one of only seven San Diego agents (out of roughly around 20,000 total) to handle JP Morgan’s La Jolla assets and banks such as Washington Mutual, Bank of America, Wells Fargo, and Countrywide have been working with us to obtain La Jolla foreclosed listings and help our buyers purchase those listings before any other agents or buyers have access to them. The trust that the Whitneys and the banks have developed due to the Whitney’s integrity and vast experience with foreclosed properties helps to create smooth and successful transactions in the foreclosure business.

Gregg and Lisa Whitney also have vast knowledge of the construction portion of real estate. This knowledge helps Gregg and Lisa work with the banks to make cost decisions and get done what is needed to expedite value. The Whitney team then assembles a team of engineers and other experts to inspect all of the possible constructional defects such as septic, electrical, plumbing, heating, roofing, and other main components to see if any defects are present that may allow [for the clients] a reduction in price or term changes in the loan.

Earlier this year, Gregg and Lisa helped a buyer reach a purchase price of only $385,000 on a foreclosed home that was approximately 3200 esf. With their knowledge of construction, they were able to find structural conditions of the home that were not up to par and in turn, the Whitney team got Washington Mutual to reduce the purchase price to $300,000. This was an absolute steal for their buyer as the property was great in size and in an impeccable neighborhood.

Back in 1993, when the housing market was at another significant downturn, Gregg and Lisa helped Debbie Ford, a well-known author, who has appeared on the Oprah Winfrey Show. Ms. Ford consulted their professional help to purchase a foreclosed home from EMC Mortgage on Costebelle in La Jolla. Due to a geological issue, The Whitneys were able to get the purchase price reduced by $125,000. They assembled their trusty team of experts to fix the problem and the home was good as new. A year and a half later, Gregg and Lisa sold the home for $725,000, even in the depressed economic times.

“Gregg’s got an impressive network of resources – structural engineers, staging experts, handyman, contractors for every need – all people he’s personally worked with and who seem to respond immediately because Gregg called. For about 2.5 months, Gregg did due diligence for us on a property with some slope/retaining wall concerns. At no point did he push us into the transaction; in fact it was my own enthusiasm for the property that caused Gregg to get so deeply involved. Overall, very high integrity from Gregg! He cautioned us throughout. From his own experience in construction, he was able to observe immediately some physical signs and reasons for concern, which only proved out in the subsequent inspections, engineering reports, and disclosures. After expending a significant amount of energy hoping that this property would come out clean, and with Gregg giving us a balanced view of the potential gains and risks, we pulled out of the property. But I have to tell you, throughout Gregg was so patient, and professional. We felt that we were in really good hands throughout. In fact, my husband and I were calling and texting him many times a day, and no matter how busy he was – even while on a family vacation – he always checked in with us on a timely basis and patiently worked with our concerns. We eventually ended up getting an amazing deal with Gregg’s help in upper Hermosa in Birdrock”

~Wendy Wong and Han Chiu

Past Clients

For the first eight months of the year, the high-end La Jolla real estate market seems to be caught in a quagmire. This has been due to these major unknowns: unemployment, uncertainty of the credit restrictions on Jumbo loans, and the number of defaults and foreclosures.

In the past three months, the high-end home inventory in La Jolla has been decreasing as many homeowners perceive a loss in current value and see what the future value could be worth in the next three to five years. Thus, the trend for high-end homeowners in La Jolla has been to take their property off the market and wait for the values to return.

The good news for the La Jolla high-end market is that this past week, our economy has experienced the return of stated income loans up to $1.5M with 30% down, $100,000 in the bank, and a FICO score of at least 720. If this trend continues, in the next six to twelve months, there will be more stated income loans dispersed for high loan values. However, even as the La Jolla inventory shrinks, there are still some defaults and foreclosures due to the homeowners being over their leverage as their loan mounts exceed the home’s value. That said there is going to be another twelve month or so period for people to purchase properties in default and foreclosed homes. For savvy buyers with cash, this presents great opportunities to purchase luxury homes within the next year at steep discounts without buyers behind them trying to purchase the same property at a discounted price.

However, a year from now, we will start to see the foreclosed and defaulted properties diminish as more and more stated income loans come into play and more homeowners are obtaining loan modifications.

This opportunity only comes around once or twice in a lifetime to purchase luxury foreclosed homes in the La Jolla marketplace.