3020 MARK AVE., SANTA CLARA |
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| Status: Active ML Number: 80920034 Parcel Number: 220-29-009 ZIP: 95051 Area: 8 Santa Clara City: Santa Clara County: SANTA CLARA COUNTY Barclay Map: pg. 41 (28 ,71) Thomas Br Map: pg. 833 (A3) Cross Street: Calabazas / Warburton Unincorporated: False Beds: 3 Baths: 2 Stories: 1 |
Class: Single Family Residential Type: Detached Single Family List Price: $434,600 Original Price: $434,600 List Date: 4/23/2009 DOM: 2 CDOM: 354 Lot Size (Acres): 0.145 Lot Size: 6325.00 SF SqFt (source): 1170 (Assessor) Age: 52 Year Built: 1957 Zoning: R1 School District: Santa Clara Unified |
REMARKS:
Listed by Realty World.
This townhome is located in the Palomar complex of Midtown/West San Jose. Right off of Stokes and Bascom about a quarter mile from the Pruneyard. These units are about 5 years old, and although they have some floor plan drawbacks this particular unit is a phenominal deal for the price. 1800 sqft. 3 bedrooms 3 baths. If you are looking for a townhome unit to rent out to renters this is a good deal.
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Currently Santa Clara has 194 Notice of Defaults filled on properties. A notice of default gets filed on a property in Santa Clara County when the owner is behind on the mortgage by 2 or 3 months. This is the first stage of the foreclosure process referred to as pre-foreclosure.
Rivermark Townhome Short Sale
In order remove the notice the owner must make the home current and pay back the mortgage owed.
Newer developments have seen a higher rate of defaults due to the recent sales within the last 5 years of these homes. Home owners are unable to refinance their properties since many owe more than the current market values.
In Rivermark alone there are several short sales and 11 homes that have notices of defaults filed and 7 condo’s in the Miraval Complex. Many of these Rivermark home owners have already engaged in trying to sell their home as a short sale. Others may be attempting to renegotiate with their banks to stay in their houses, others perhaps bracing for foreclosure.
When confronted with this reality the homeowner needs to contact their bank and try to work out a resolution. This is where your persistence will pay off. Lenders seldom give any concessions to anyone let alone a debtor, but if you are persistent and can show hardship and willingness and ability to pay you should be able to modify your loan.
The other avenue is to sell your home short. The process is similar. The bank wants to know your financial situation before it can agree to any deficiency sale. Essentially you have to prove you can no longer afford your home or that you are forced to sell due to relocation or some other factor.
Both of these options have become more viable to home owners, so their is no reason why homeowners should be foreclosing these days.
Tags: rivermark short sales, Santa Clara county Short Sales, Short Sales
It’s no surprise that any newer developments in the Santa Clara County as of the past 5 years are going to experience a high number of Short Sales and REO or Bank Owned properties. Rivermark in Santa Clara is no exception.
Rivermark Townhome Short Sale
Rivermark is a master planned community developed in 2002 by Lennar, Centex and Shea Homes encompassing over a 1500 single family and town home units. Also around the Rivermark development is the Miraval Homes Luxury condo development and Mission Gardens single family homes, townhomes, and condo’s.
Many of these units have resold in the last few years since their initial releases, leaving some home owners at peak prices resulting in short sales and no opportunity to refinance.
Currently in the Santa Clara Rivermark location there are 14 condo short sales and 1 bank owned condo. There are no single family short sales or REOs at the moment.
Miraval Condo
A good portion of these short sales are in the Miraval Condominium Complex. Miraval is a Luxury condo complex providing nicely appointed units with great amenities in the complex. Currently there are 5 short sale units for sale in Miraval. One bedroom units starting at $280K and 2 bedroom units at $400K.
As for the Rivermark development currently there are only townhomes availables. Which says alot about Rivermark and the fact that the single family home values have not been hit too hard. Many times buyers offten ask what is a better investment a townhome or a single family home. As you can see single family homes rarer in Rivermark have held up very well so var with all the market pressures.
For a list of active short sales and bank owned properties in the Santa Clara Rivermark area follow the link below.
Rivermark Short Sale Townhomes
Tags: bank owned homes, reo rivermark, rivermark short sales, Santa Clara county Short Sales
With the number of foreclosures skyrocketing in California in recent years, there is a lot of interest from would be buyers in purchasing bank owned properties which are also known as real estate owned or REOs.
What is a short sale?
What is a Short Sale?
Short sales occur when the value of the property is less than the encumbrances or liens on the property. The property is still owned by the owner and not the bank. It is being sold with the understanding that the total liens on the property will not be satisfied by the proceeds of the sale. Therefore the owner will need the lien holders approval to be able to sell the properety. This can take months to get approved, and may not end in a successful sale.
What is Foreclosure?
When a property is in foreclosure, the owner has stopped making payments and the lender has given the borrower a written Notice of Default that the payments must be brought up to date or the property will be sold off. The notice is a public document (which is why so many websites offer foreclosure lists). It normally takes about two missed payments for a lender to issue a Notice of Default, but not always.
Notice of Trustee’s Sale, after receiving a Notice of Default, the owners of a property allow their home to be foreclosed, then a Notice of Trustee’s Sale gets posted by the trustee. This is usually the trustee holding the primary note. In California, it’s not the bank that forecloses, it’s the Trustee.
Once the trustee decides to foreclose, it goes to a Trustee’s Sale. This sale is held on the courthouse steps in the applicable county. Usually, the bank buys its’ own property from the trustee for the full amount owed on the primary mortgage. In the current market, the price the bank pays to obtain the property is often more than market value. Any subsequent mortgage holders get nothing. The “courthouse steps” is typically not a good place for a potential end-user to buy the property – it’s geared towards investors who buy many properties at wholesale prices. In fact, it can be a downright unfriendly environment if you don’t know how the game is played.
What is an REO?
Once the bank has purchased the home, it is now foreclosed and is called an REO (Real Estate Owned). The bank will then usually list the property at or near full market value and place it on the local MLS.
Finally on the Market. At this point, it shows up on the MLS as an REO and your Realtor can show it to you. Once the bank purchases the home at the Trustee’s Sale and it’s now an REO, the bank tries to get as much for it as possible. The price usually goes back up to at or very near market price.
Tags: bank owned homes, Short Sales
California announced it’s own, $10,000 tax credit for any homeowner buying a new home between March 1, 2009 and March 1, 2010 regardless of whether they’re a first-time buyer or not. This comes on top of the federal first-time home buyer tax credit of $8,000 announced by the Obama administration as part of the federal stimulus package. Unlike the federal bill the California home buyer tax credit does not have restrictions on income qualifications, nor do you need to be a first time buyer to participate. The only restriction is that the home be new construction and be purchased between March 2009 and March 2010.
While it is still unclear exactly how the California Home Buyer Tax Credit program will work, here is what we do know:
- Eligible on NEW homes purchased between March 1, 2009 and March 1, 2010 (must be new construction to qualify)
- $10,000 credit paid in 3 annual installments of $3,333. Home buyers get the $3,333 off their taxes for the first three years after purchasing the new home.
- No income restrictions, meaning that all home prices and incomes can participate.
- Any home buyer buying a new home qualifies. You do not have to be a first-time buyer as in the Federal Home Buyer Tax Credit.
- Pending escrows or recent home sales have not been determined to be eligible at this point, although it will be determined shortly.
- The total credit is $100 million (h/t CR) which works out to 10,000 home sales that would qualify under the California Home Buyer Tax Credit program.
Politics aside, this seems like a bad idea for Santa Clara Valley. We have a fundamental problem of high supply and low demand in Santa Clara Valley, a very high proportion of which are older homes. This may take away buyers from those older homes and pursuade them to buy into new developments that should never have come to be.
From all the new developments out there: Summerhill – Village Square, Shea Builders – Mondrian, Shea Builders – Boulevard, Toll Brothers Verona, KB – Cannery Row, KB – Monte Vista, AXIS, Regency Homes – Gables End, Regency Homes – Altaire, 360 Residences, The 88, and City Heights. There have been price drops and incentives some better than others.
As a home buyer for a new development make sure you understand that you can write your own offer and negotiate the terms and conditions of what the builders sales department are quoting you. If you are not a good negoitator make sure your agent is, so you can get the best deal out there.
This is the latest in a multi-part post dedicated to recording my experiences working with a buyer to purchase a REO or bank owned home Santa Clara. After submitting 4 offers where we were out bid each time we finally got a contract accepted. The property is 716 Kiely Blvd., in Santa Clara. It is in the Mariposa Gardens neighborhood of Santa Clara. It also sits on Kiely Blvd. which is a fairly busy street.
The Santa Clara 3 bedroom 2 bath listing has been active for over two months and fell out of contract one time previously. It was currently listed for $440,000 which had been dropped down from $475,000. The home needed quite a bit of work and would not qualify for a FHA buyer. As an investor it really benefits you to look for the homes that typical buyers of single family homes may not qualify for or could not get financing for.
I called the agent to see if there were any current offers on the property and there were none. We came in at 10% under asking expecting some negotiation. The listing agent wanted to see the contract, pre-approval by a direct lender, and be pre-qualified under their lender, also proof of funds was required. After submitting all these documents we waited for 3 days for a response from the owner or the asset manager and they accepted our offer.
I was surprised that we got an outright acceptance, and was expecting a long and hard negotiation. After the acceptance the listing agent forwarded us the owners addendum stipulating the new terms of the deal which we had to accept. We are now waiting to get the fully signed contract back from the agent and have property and termite inspections scheduled.
From this experience we can easily see that the best deals to be made in acquiring these distressed properties are to find the ones that have been sitting a while on the market and just make an offer. You never know if they will accept it. I will keep you updated on the further developments as they develop.
Spotting trends in the market is certainly the way to find the market bottom of the Santa Clara Valley real estate market. In this post I am looking specifically at Santa Clara, Sunnyvale, Mountain View, Los Altos, Saratoga, Los Gatos, and Los Altos markets. Looking at Sales and Inventory information to get an idea of how inventory is moving or not moving.
Santa Clara Started the year off great compared to last year’s figures. The last two weeks however have failed to follow that trend and it appears that this years inventory figures have just barely passed up last years numbers for the same period last year. Sales are about the same. This may be a sign of higher inventory this year and more price drops to come.
Moutain View continues on the same trend. About double the inventory of last years number and half the sales. We should definitely be expecting price drops in Mountain View.
The same for Cupertino. Showing no signs of slow down in increase home inventory and although sales are not too far behind last years levels the doubled increase in inventory is sure to increase days on market and lead to further price decreases.
It seems as though sunnyale has been fairly consistend this year. Eventhough the sales figures are slightly down versus last year and inventory is about 10% higher Sunnyvale may experience a moderate price drop.
Home inventory in Los Gatos is continuing to ramp up as sales stay steady. More signs the Los Gatos home market still has some more room to come down.
The highend home market in Saratoga continues to suffer. Sales are half last years numbers and inventory is doubled. A sure sign prices are going to come down.
Los Altos is no different. Double the inventory and only half the number of home sales compared to last years numbers. More price drops in Los Altos.
FREQUENTLY ASKED QUESTIONS
SHORT SALES: THE LONG AND SHORT OF IT
1. What is a short sale?
A short sale* is a sales transaction in which the seller’s lender agrees to accept a payoff of less than the balance due on the loan. In addition to absorbing any loss on the loan, the lender in most cases agrees to pay the costs of the sale.
2. How long does the average short sale take?
It can take anywhere from 28 days to six months once the lender receives a signed offer from both the buyer and seller. The process frequently moves slowly. Currently, many lenders are working to revamp their system to speed up the procedure.
3. If a short sale transaction can take up to six months, why do they call it a “short sale”?
Clearly an oxymoron! Or look at it this way: the value is “shorter” than the loan amount.
The truth is, a short sale has multiple phases that may affect the transaction time frame. Depending on market trends, price positioning, and other factors, it can take anywhere from seven to 180 days or more for a property to sell. Once the negotiations are complete, the short sale proposal is sent to the lender who will evaluate it from a financial perspective. In addition, the homeowner must establish eligibility for the short sale by providing supporting documentation such as, W-2 forms, bank statements, tax returns, and other financial documents. Understandably, this process takes time!
4. Why would a lender agree to a short sale?
There are various reasons why a lender may agree to a short sale. For example, Senate Bill 1137 (which became effective in July 2008) imposes strict requirements on lenders prior to exercising their right to foreclose. Foreclosures take time, and as we all know, time is money.
The expense to the lender is another factor. Foreclosure costs may include: internal fees and expenses, eviction, repairs and maintenance of the property, security, as well as Home Owners Association (HOA) dues and utilities. These factors, combined with the federal and state government’s push to halt foreclosures, make it easy to see why a short sale may be in the lender’s best interest.
5. Is a short sale still an option if foreclosure has already taken place on my home?
No. Once the lender has completed the foreclosure process, a short sale is no longer an option. For that reason, it is vital that homeowners understand the importance of early communication with the lender. Don’t wait until it is too late. Speak to your lender, and let him or her know that you are having financial or other difficulties. If you want to retain ownership of your home, you may be able to work with your lender to explore alternatives to foreclosure.
6. I have a second mortgage on my home. Does this make me ineligible for a short sale?
In many cases, a short sale can be achieved on properties with multiple loans. Depending on the amount of the loss to the junior lien holder (second trust deed), a short sale may be possible under certain circumstances. Proposals and requests for short sale consideration should be submitted to both lenders at the onset.
7. Once I have an offer on my home, what happens next?
Your realtor will assist you in negotiating the best price and terms. Once the negotiations are complete, the offer and all supporting documentation should be packaged and submitted to the lender’s loss mitigation department. Follow-ups and ongoing communications are significant components of a successful short sale.
8. Will I have to pay capital gains taxes if I sell a property as a short sale?
A short sale has no bearing on the calculation of capital gains taxes. However, there are other tax liabilities that must be evaluated. Seek the advice of tax and legal advisors before agreeing to a short sale. For additional information, you may visit www.irs.org to learn more about taxation of short sales.
9. Will a short sale affect my credit?
Yes. Your tax advisor will be able to address your specific situation.
10. I would like to buy a short sale. Where do I start?
Choose a REALTOR® who has the ability to recognize a short sale property and who possesses the skill and training to work through any difficulties that may arise during the buying process. Be prepared for a bumpy road. If your REALTOR® is knowledgeable, he or she will help you manage your expectations.
11. When buying a short sale, do I have to pay all of the escrow fees?
The allocation of costs is a negotiable item in any real estate transaction. Typically, the buyer and seller each pay their own fees.
In short sales, lenders may request that certain fees be paid by the buyer, as a condition of the lender’s approval. Some of these costs may include: funds owed to junior lien holders, closing costs, delinquent property taxes, and Home Owners Association Dues. Expect the unexpected and work with a REALTOR® who understands short sales and can walk you through the process prior to preparing an offer to purchase.
12. How is Coldwell Banker Residential Brokerage simplifying and streamlining the short sale process?
Coldwell Banker Residential Brokerage has been working diligently on a multi-faceted program to educate its managers and sales associates regarding the intricacies of the short sale. In response to the unprecedented challenges today’s homeowners face, the company has developed a unique short sale package that allows Coldwell Banker sales associates to deliver comprehensive proposals to lenders, thereby increasing the likelihood of a successful and swift transaction.
13. How do I determine if I’m eligible for a short sale?
Homeowners must be aware of their options before considering a short sale. Other options include: loan modification/refinance, deed in lieu of foreclosure, foreclosure, and bankruptcy. There are many non-profit counselors available to advise homeowners on the advantages and disadvantages of each of these options. A complete list of counselors may be obtained at www.hud.gov
* When the amount of the loan and other costs of the sale exceed the current market value of the property, there are a number of options struggling homeowners may consider, including loan modification, deed in lieu of foreclosure, foreclosure, bankruptcy and short sale. Any homeowner considering a short sale should consult with legal and tax advisors. A complete list of non-profit counselors is available at www.hud.gov
Economic Stimulus and Tax Credit
Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a homebuyer is liable for $4,000 in income tax, he can offset that $4,000 with half of the tax credit… and still receive a check for the remaining $4,000!
To break down what this phaseout means to homebuyers who are over those amounts, the National Association of Homebuilders (NAHB) offers the following examples:
Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.
Example 2: Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.
Remember, these are general examples. You should always consult your tax advisor for information relating to your specific circumstances.
Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage.
Tags: economic news