This article was sent to me today and thought I would bring it to your attention.

By Elizabeth Razzi
Washington PostArticle Launched: 07/06/2008 12:11:28 AM PDTHere’s what’s really happening with short sales: All too often, they fall short of the finish line. 

A short sale means a sale that falls short of the amount owed on the mortgage. They happen only when the seller can’t come up with the cash to pay off the difference. Most important, though, is that they can happen only when the lender agrees to accept the shrunken payoff. Desperate sellers pursue them to avoid a foreclosure, which would be even more damaging to their credit history. Buyers pursue them in hope of snagging a home at a deep discount. Before you waste your time, and possibly your money, on a short sale that stands little chance of getting the bank’s approval, gather some intelligence about the sellers, their financial situation and the real estate agent they have hired. You will save a lot of frustration by focusing only on deals the bank is willing to make.   Lenders aren’t in the business of accepting less than they are owed, and their paperwork machinery isn’t even set up to work that way efficiently. Their approval of a short sale is always slow in coming — if it ever comes at all. You need to find out if the bank even has a clue that the seller is trying for such a deal.  Too often, sellers and their agents are calling a listing a “short sale” or saying that “offers are subject to third-party review” without even having talked with the lender. They plan to get a live fish on the hook before they try to tempt the lender. Do you want to be that fish?

It’s important to distinguish between “upside-down” sellers and short sales. If sellers are upside-down on their loan, owing more than the home is worth, they are still expected to make monthly payments. Even if they would like to move, most upside-down owners are stuck until prices recover enough to make a sale profitable.

If an upside-down owner must sell, even at the reduced price, he’s expected to take money out of savings, cash in the 401(k), borrow from the in-laws or otherwise pay off the mortgage.  But what happens when the homeowner simply cannot come up with the cash? At this point, the homeowner’s pain becomes the lender’s problem. The lender’s options are either to agree to a short sale and forgive the unpaid debt, or to foreclose on the home and resell it. Remember, the lender gets to make that choice, not the seller. 

There are lots of things that can derail a short sale. For example, although lenders lose a lot of money when they foreclose, the payout from private mortgage insurance could reduce that loss enough to make the lender choose foreclosure. Lenders holding second mortgages, such as home-equity lines of credit, can also kill the sale. Second-mortgage lenders are supposed to be at the back of the line to collect loan payoffs, but they can nix a proposed short sale if they don’t think they’re getting enough out of it.

Frank Borges LLosa, who owns the Frankly Realty brokerage in Arlington, Va., has analyzed multiple-listing service data for Northern Virginia, and estimates that of every 20 short-sale listings that draw a contract from a buyer, only one actually makes it to closing. “I call them fake listings,” he said. If you try to buy a home through a short sale, be prepared for the deal to fall apart. Don’t spend money on appraisals or inspections until you have received some sort of commitment from the bank. You certainly don’t want to give notice to your landlord too early. And keep looking for other, easier deals, just in case.

4 Bedrooms, 3 Baths – 2221 sq ft* CLICK HERE for the Virtual tour - Owner will review all offers presented. This is a wonderfully maintained home in Blossom Valley. With lots of space, a great open floor plan, and vaulted ceilings, it is ready for your family. There is a large openly eat in kitchen with skylight and a garden window.This home has been extended off the formal dinning room and the fireplace is a wood burning stove at the corner of this open room. Having this addition has given this home ample living space for your family and is perfect for entertaining.This home has two master suites one on the upper floor and one on the main floor. The addition of the master suite upstairs has been permitted. This can be used for either a bedroom, office, game room the options are endless. With three more bedrooms your family will have plenty of room to spreadout and enjoy home.Low maintenance landscaping all around this home is as easy to take care. The neighborhood boasts low traffic with no thoroughfare streets makingit perfect for families. This is a family orientated neighbor that boasts a wonderful neighborhood party at some holidays and even has movie nights during the summer months.Conveniently located near Shopping, Freeways and a VTA light rail station.

v newer roof with top quality thermal barrier for better climate control

v most new double-paned

v partial hardwood /and under carpet

v garbage disposal

v range, microwave,dishwasher,

v Skylights

v vaulted ceilings

v laundry in garage

v fruit trees

v view of the foot hills

With the addition of highrise living in the Downtown San Jose area there comes the addition of Penthouse living in the Silicon Valley. This is a first for the area and will only be a growing trend. Another 20 or so high-rise housing projects are in various stages of execution in downtown. Interest in buyer reception has been strong, not only among developers but also the city of San Jose, which is pushing to bring residents to downtown as the necessary spark to jump-start the area’s long-awaited rebirth.

So for any and all them hard working CEO’s and COO’s and Business Executives in the San Jose know that downtown has a home that matches your lifestyle. Well, four new complexes that is anyways.  Can you really count the skyline as a downtown highrise. I say “no” not yet.

I plan to get more information out regarding the current penthouse offerings that San Jose has and the people that are Moving-On-Up…

   When you are cruzin’ though the MLS you have probably seen the different pending icons.  What do these mean…..