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Short Sale

Short Sale

  1. What is a Short Sale? A short sale in the field of real estate is selling a property for less than the amount owed on the current owner’s outstanding mortgage amount.
  2. Why would someone do a short Sale? A short sale is usually a sign of a financially distressed property owner who needs to sell the property before the lender completes a foreclosure process.  Short Sales are also more common when the value of the homes drops below the previously purchased prices due to local, state, national, or global economic reasons.
  3. What is the benefit of a Short Sale? For the property owner, the financial consequences of a short sale may be less severe than a foreclosure for both the property owner and the lender.  For a property buyer, a short sale can be a good opportunity if approached cautiously.  For the lender, a legitimate and reasonable price and term can cut down on the lender’s costs and losses in a foreclosure process.
  4. How would a Short Sale impact my Credit Report? Typically, a short sale record is impacted in a shorter period of time than a foreclosure.  Also, if you want to purchase a home in the future, most future lenders will see a short sale more positively than a foreclosure.  To most lenders, a short sale means the property owner has the desire to cooperate with the lender to cut down their losses.  Whereas most foreclosures are seen as less than cooperative efforts given to resolve the financial issues for both parties.
  5. Are all Short Sales successful?   The lender must approve the short sale.  A common reason why lenders may not approve a short sale is due to fraud activities, offer price and terms being significantly below the market value, and undisclosed non-arms length parties in the transaction.  Another factor is the lack of knowledge and experience with agents when performing a Short Sale.  In Alisha’s over 20 years of real estate experience, she has seen a number of unsuccessful short sale listings that end up as foreclosed properties due to the lack of knowledge and experience of agents.  Short Sales are NOT one of the listings that property owners should be gambling with less than experienced agents.  The consequences can be more prolonged and severe.
  6. How to increase the chances of Successful Short Sales? Alisha has encountered fully cooperative property owners when conducting a short sale transaction and prospective property owners seeking to take advantage of the lender’s timeline.  Short Sales typically take 3-4X amount of work and time to complete than a standard transaction.  There are a greater number of non-traditional challenges, tasks, knowledge, and experiences encountered in a Short Sale than in a standard sale.  Many times, even the Short Sale managers assigned to our transaction have little knowledge or experience in conducting a Short Sale.  Besides assisting the property owners, and pre-screening buyer offers, Alisha may need to educate and present more information to educate the lender’s Short Managers assigned to us as well.  This is a lot of work in one transaction  As a result, Alisha will only assist property owners who genuinely seek to lessen his/her own negative financial consequences while cooperating with the lenders to move on honestly and reasonably.
  7. What is Alisha’s knowledge and experience in Short Sales? Alisha has successfully closed 100% of her Short Sale listings in various parts of California!  She has also closed many more short sales representing buyers.  Alisha has past clients who have successfully completed a Short Sale listing with Alisha and were able to purchase multiple homes a few years later.  Clients who followed Alisha’s advice most closely were able to cut short the waiting time to become property owners again.  It took a few years of following diligent instructions from Alisha to build up their credit again while generating income and savings.  However, they are now proud property owners of multiple properties!
  8. Have Questions? Feel free to contact Alisha to go over your situation.  If you are in financial distress, don’t wait and delay any longer!  The sooner we help you resolve challenges, the faster you will be on your road to recovery!
Don’t delay!  Call Alisha today!  (949) 864-9306

Real estate is not just a career that I enjoy, but also my passion and investment. I have used my real estate knowledge to help many others already; contact me so I can also help you!  Please feel free to visit my Testimony page and see how many people I have already helped and continue to help!

  • To read more previous Market News content, please Click Here
  • To read Alisha’s Client Testimonials, please Click Here
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Basic Truth About the Real Estate Industry

#01 – BASIC TRUTH ABOUT THE REAL ESTATE INDUSTRY

The field of real estate brokerage and agents by law and common sense should be one of the higher requirements and practices careers.  Some of the most valuable, personal, and confidential items are stored and displayed in homes.  Yet over 20 years in my real estate career, the basic agent property etiquette has been violated repeatedly.  In fact, this basic etiquette has gotten worse and worse each year.  This means a severe lack of ethics has been viewed as unimportant.  While the society in the U.S. industry has overemphasized creating conflicting laws and guidelines, not much has been done to teach children from a young age about common etiquette.  If we investigate the root of most problems in society and workplaces, the cause has been the deterioration of ethics disguised by many other branch issues such as knowledge, experience, communication, training, and degrees.

Common Issues Encountered

  1. Real Estate System – There are many real estate test-taking programs offering answers for test takers to memorize in order to pass the exam without understanding the contents.

  2. Read more
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Did you know…Right Time to Buy or Sell Your Home can save you thousands?

Many of us are very busy daily with work, family, friends, church, serving, activities and events that we forget to review our investment status. There are many laws and regulations that can benefit homeowners, but majority of people are not aware of them. Different market, economy, geographical location, lifestyle changes, career environment, financial status all play a part of factors to determine when to do what in order to best leverage out your financial gain.

Did you know that each person has up to $250,000 owner occupied equity gain tax free? For example, if you have purchased a home at $300,000 and today is worth $700,000 and you have occupied the property for your own usage within the last 2 years out of 5, you may be eligible for a $250,000 per person tax free when you sell for a profit! That means the average people would have to work at least 5 years to have a net of $250,000!

If you are married, you have up to $500,000 tax free gain for the same criteria. If you have exceeded that maximum allowable equity gain, you will be subjected to tax. For example, if you have purchased the property at $200,000 and today is worth $900,000. As an owner-occupied single person given $250,000 tax free gain, you will need to pay tax on the remaining $450,000 gain, which is very hefty. However, if we had planned this out a few years before on all of your properties, we can sell right above your maximum allowable tax free equity gain, purchase another home for you to live in and start accumulating the equity again to leverage out your tax free equity.

There are many more benefits that may benefit each person or family based on lifestyle, needs and goal. Most successful people in the U.S. invest into real estate because they can work years less by knowing how to leverage real estate laws. Real Estate is my passion and I enjoy helping people plan for the long term in order to best leverage and utilize their wealth by working smarter and understanding the tax laws.

Real estate is not just a career that I enjoy, but also my passion and investment. I have used my real estate knowledge to help many others already; contact me so I can also help you!  Please feel free to visit my Testimony page and see how many people I have already helped and continue to help!

  • To read more previous Market News contents, please Click Here
  • To read Alisha’s Client Testimonials, please Click Here
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Why Am I Required to Have a Condo Insurance H06 Policy?

Buying a condo is different from buying a standalone home. Especially when it comes to insurance coverage. Buying a condo means you are becoming a partner with other owners. Plus, the common areas are insured by one or more master insurance policies. Most condo master policies do not cover the interior of the condo. Tiis is why condo “walls in” policies, also known as an H06 policy, exist. In the event of damage or a loss to the condo interior, this form of condo insurance covers the unit owner. A key point to remember when a mortgage is involved, the lender requires a certain level of H06 policy coverage.

What is an H06 Policy?

Master condo policies cover the buildings, common grounds, and even liability in case someone is hurt on the premises. But, many master policies stop their coverage at the interior walls of each condo unit. That means the unit owner is on their own when it comes to the interior and its contents. That is where an H06 policy steps in. An H06 or walls in policy is purchased by the unit owner through an insurance agency and for the most part, the owner decides on the level of coverage. One area of importance to remember is that these condo policies may not cover all perils. For instance, coverage for other areas such as flood or wind/hail damage may require an additional policy or riders.

Does the Condo Master Insurance Policy Ever Cover the Interior?

Yes, but this is not common. When considering a condo purchase, it is key to get a copy of the master policies. Plus, make sure to have a thorough discussion with the master policy insurance agent. It is key for a potential condo owner to understand the coverages and exclusions. At this time, it will be known if the master policy covers the condo interior and the unit owner’s personal contents. Keep in mind that if the master policy does cover the walls in, pay attention to the policy deductible. It may be a very large deductible. In this case, ask your insurance agent if supplemental coverage is allowed.

How Much H06 Coverage Does My Mortgage Lender Require?

If a buyer pays cash for the condo, then the unit owner may choose any coverage they choose. Even waive the policy altogether. Yet when a mortgage is involved, there are lender requirements. As a general rule of thumb, lenders will require coverage equal to 20% of the condo unit value. For instance if the condo is purchased for $200,000, the H06 condo policy must have at least $50,000 coverage. Furthermore, if your mortgage requires escrows for taxes and insurance, this insurance will be in the escrows. The master policy is typically included in a unit owner’s HOA dues. Although, condominium complexes with only a few units may handle this differently.
  • To read more previous Market News contents, please Click Here
  • To read Alisha’s Client Testimonials, please Click Here
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COVID and the Future

Housing has been the economy setter around the world. However, has COVID-19 helped you evaluate what is working or not working with your choices and lifestyle? Let us take a  closer look at areas in your life in relation to this Global Pandemic. Do you see the direction going more positively or negatively for the year 2020 to 2021? What is going on regarding interest rates, housing, the stock market, and employment? How are you interpreting this outcome? In terms of finances, are you better or worse? In terms of quality people,  has ethics and morality deteriorated or improved? Are people in general more pleasant,  less patient, more caring, or careless? The quality and conduct of people are the foundation of how society and the future will be. Since people are the ones setting laws, structures, procedures, businesses, etc., this means how people are will set the tone for the future in every personal and business engagement. Therefore, how the future will be relying most heavily on each one of us. Alisha has countless experiences as a  relationship counselor. She has positively improved many lives of married couples, parents-to-children relationships, and internal company team relationships that are sustainable. 

The most common relationship killer is ignoring the problems which almost always escalate to deeper negative consequences. Join many others today to get help and improve your mental, emotional, and physical health. Contact Alisha for a counseling appointment for a better and new beginning at 909-438-3647. 

  • To read more previous Market News contents, please Click Here
  • To read Alisha’s Client Testimonials, please Click Here
No Comments

Did you know…Right Time to Buy or Sell Your Home can save you thousands?

Many of us are very busy daily with work, family, friends, church, serving, activities and events that we forget to review our investment status. There are many laws and regulations that can benefit homeowners, but majority of people are not aware of them. Different market, economy, geographical location, lifestyle changes, career environment, financial status all play a part of factors to determine when to do what in order to best leverage out your financial gain.

Did you know that each person has up to $250,000 owner occupied equity gain tax free? For example, if you have purchased a home at $300,000 and today is worth $700,000 and you have occupied the property for your own usage within the last 2 years out of 5, you may be eligible for a $250,000 per person tax free when you sell for a profit! That means the average people would have to work at least 5 years to have a net of $250,000!

If you are married, you have up to $500,000 tax free gain for the same criteria. If you have exceeded that maximum allowable equity gain, you will be subjected to tax. For example, if you have purchased the property at $200,000 and today is worth $900,000. As an owner-occupied single person given $250,000 tax free gain, you will need to pay tax on the remaining $450,000 gain, which is very hefty. However, if we had planned this out a few years before on all of your properties, we can sell right above your maximum allowable tax free equity gain, purchase another home for you to live in and start accumulating the equity again to leverage out your tax free equity.

There are many more benefits that may benefit each person or family based on lifestyle, needs and goal. Most successful people in the U.S. invest into real estate because they can work years less by knowing how to leverage real estate laws. Real Estate is my passion and I enjoy helping people plan for the long term in order to best leverage and utilize their wealth by working smarter and understanding the tax laws.

Real estate is not just a career that I enjoy, but also my passion and investment. I have used my real estate knowledge to help many others already; contact me so I can also help you!  Please feel free to visit my Testimony page and see how many people I have already helped and continue to help!