Real Estate Information

I own property with someone and want to sell – they don’t.  What can I do?

If you are on title with someone (not a spouse) and would like “out” of the deal, filing an action for partition, or to force sale, is the correct legal process.  

An action to partition real property is a lawsuit.  As the plaintiff, you are requesting the court force the defendants to sell the property to either a third party, or to have the defendants purchase your portion of the property.  Like any lawsuit, it can take months to resolve and come with unexpected costs and hurdles.  

At the conclusion of the suit, the court will either order the sale of the property at an auction or a private sale.  Expenses for conducting the sale will receive first priority for contribution, after the expenses, liens, such as mortgages, are paid.  Only after pay off of the liens do the parties recover proceeds, if any proceeds are available.

In today’s recovering real estate market, a property purchased years ago may have held higher value.  Selling today may not allow you to pay off the mortgage liens, let alone realize proceeds for the owners.  A forced sale may not make practical sense for a homeowner in this situation. Working to come to a resolution with the other party makes better sense for homeowners seeking to partition distressed property.  Entering into an informal agreement that takes the depressed property value into account it critical.  The property owners can agree to buy the other out at a reduced price and on a long term payment plan, hold the property for an indefinite time until market conditions improve, or sell the property to a third party through a short sale.  A benefit to informal resolution is less expense for the parties by way of court costs and attorney fees, particularly if your property has lost value.  

No matter what option you end up going with, ensure you are well advised of your rights and the consequences of any option you choose.  Working with your real estate agent, a tax advisor, and a real estate attorney allow you to be fully apprised of the alternatives available to you.  

For more information on real estate law, contact:

Elena Rivkin Franz,  Attorney at Law
Pratt & Associates 
1901 S. Bascom Avenue, #350
Campbell, CA  95008
(408) 369-0800 ext. 202

____________________________________________________________________
Author and Business are endorsed by The Dawn Thomas Team, Inc.
Silicon Valley and Beyond - our website
Silicon Valley Home Search  - find Silicon Valley properties for sale
What’s Your Silicon Valley Home Worth? - get current market information for your Silicon Valley home

Current real estate market statistics (single family homes) for Los Altos, CA:

For Sale in Los Altos, CA

• Number of homes listed for sale: 84
  
• Lowest list price:  $1,190,000
  
• Highest list price:  $4,288,000
  
• Number of REO banked-owned homes:  0
  
• Number of Short Sale homes:  2
  

Sold in Los Altos, CA

• Number of homes pending sale:  41
  
• Number of homes sold in last 30 days:  29
  
• Lowest sale price in last 30 days:  $921,000
  
• Highest sale price in last 30 days:  $2,420,000
  
• Median sale price in last 30 days: $1,525,000

Here are the real estate trends for Los Altos, CA:

Data source:  MLS Listings

Want more information about the market in your specific neighborhood?  Give us a call or email us!

Have a GREAT week!

Laura Powers, Realtor
The Dawn Thomas Team
Intero Real Estate Services
496 First Street, Suite 200
Los Altos CA 94022
(877) 901-2121
CA DRE License: 01860743

____________________________________________________________________
The Dawn Thomas Team, Inc.
Silicon Valley and Beyond - our website
Silicon Valley Home Search  - find Silicon Valley properties for sale
What’s Your Silicon Valley Home Worth? - get current market information for your Silicon Valley home

Lending is Finally Loosening Up…

5% down financing is back for loans under $417,000 ($438,900 purchase price maximum).  This financing now gives more options to buyers who may have thought that expensive FHA financing was their only answer if they lacked a larger down payment.  This is a big deal for my industry!

In addition, public school teachers have access to a great loan program. It features a down payment of 3%, for purchases up to $630,000, with no mortgage insurance. If you know a teacher, please have them contact me.

Lastly…

Interest rates remain good regardless of what’s happening with the Fed and Greece; however, higher oil prices will lead to higher gas prices which will lead to higher inflation in the future which will lead to higher rates down the road. See today’s market report for your review.

Any questions, please contact me. 

Rob McCarthy
Owner and Senior Mortgage Planner - 101 Loan
www.101loan.com
Email Me
408-377-4123 Office
650-465-8957 Cell
560 S Winchester Blvd, Suite 500
San Jose, CA  95128
A Dept.of Real Estate - License # 01165697

The Pre-Qualification…Your FIRST Step to Financing a Home

Because of the complexities of home financing and the numerous loan programs and lenders now available to the general public, prequalifying must be done by a qualified loan agent (preferably a mortgage broker) in person, over the phone, or via e-mail.  

The prequalification process is both objective and subjective.  Lenders look at much more than just cash down payment, credit and income questions.  They look at the “overall picture”, for what lenders call compensating factors, of the applicant.  These compensating factors include income, debt, assets and credit!

Consulting with a qualified loan agent can help you determine which compensating factors should be emphasized to the lender.  Below is list of just some of these factors that loan agents use to maximize one’s purchasing or refinancing power.

The Pre-Approval…Solidifies Your Home Buying Position

Once an applicant is prequalified, the next step is getting pre-approved.  This involves the lender verifying the above information that includes income, debt, assets and credit by verifying the following:  

• 30 days worth of pay-stubs
• W-2’s and 1040’s) for the last 2 years
• Bank statements on all assets for the last 3 months
• Verification of credit by credit report
• Copy of drivers license

By getting pre-approved for the purchase of a property, the buyer strengthens their buying position greatly.  They now have a “walking credit card” to purchase a home!  Buyers should not start their home search without starting this process first.  Once the borrower meets with the loan agent, the pre-approval process, from start to finish, should not take more than a few days to accomplish.  The pre-approval is usually valid for 3 to 4 months (and sometimes longer) as long as the applicant’s income, debt, assets and credit have not changed.

Have a great week!

Rob McCarthy
Owner and Senior Mortgage Planner - 101 Loan
www.101loan.com
Email Me
408-377-4123 Office
650-465-8957 Cell
560 S Winchester Blvd, Suite 500
San Jose, CA  95128
A Dept.of Real Estate - License # 01165697

Even if you are divorced, those words may still be more true than you realize.  Divorce may uncouple you, but in most states, it does not automatically revoke beneficiary designations such as life insurance, retirement designations or joint tenancy.  Upon dissolution of your marriage, your will and trust are revoked.   However, there are assets (named above) which are governed by beneficiary designations and not by your will or trust.  

One of my clients was married to her husband for 25 years.  She was his second wife.  His divorce decree divided up the assets and he believed that he did not need to change his beneficiary designation on a life insurance because the divorce decree stated what was his.  But this was not true.  After her husband’s death, the life insurance company told my client that the beneficiary designation of the first wife controlled.  Because her husband and his first wife had children, when the first wife disclaimed the life insurance proceeds, all of the proceeds went to her children.  In the husband’s will, he had left his life insurance to my client and provided for his children as well.   But his intent, even though it was in a will, did not override the beneficiary designation and my client did not receive any of his life insurance.

Estate planning for blended families is often complex.  And it is a topic you may need to revisit every 5-10 years as your children mature. I am particularly aware of these issues, as I am part of a blended family myself.  And I can attest to the fact that there are many emotional and psychological issues that are part and parcel of blended families.  And without a proper estate plan in place, those emotions can easily boil over when there is a death in the family and financial security is at stake.  Even in families where there appears to be harmony, a death of a patriarch or matriarch can trigger new behavior and reveal repressed emotions.

Simply put, money changes everything.

To provide for the best protection of your spouse and children, it is important to start thoughtful and meticulous planning.  The goal is to nurture your new blended family now and ensure they are taken care of after you’re gone.

An effective estate plan for a blended family should:

1.    Disinherit your ex-spouse to the extent that you wish to do so;
2.    Protect your own children;
3.    Provide for your new spouse;
4.    Reduce conflict as much as possible; and
5.    Minimize estate taxes.

If you don’t actively remove an ex as the named beneficiary or joint owner with right of survivorship, he or she could legally inherit your house, your Employee Retirement Income Security Act (ERISA) plan, your life insurance payout, even your bank account balances.  This could occur even if you specified otherwise in your will and even if the laws of your state automatically extinguish your ex’s interests in the assets of your estate.  This is why I insist on seeing all the beneficiary designations on retirement assets, life insurance, and other accounts.  I have seen too many cases where the beneficiary designations were “wrong,” but nothing could be done about them.

Even more troubling, unless you take the proper legal steps, your former spouse would likely be named by a probate court to manage the inheritance you leave your minor children.

If you haven’t already seen it, rent the recent Meryl Streep/Alec Baldwin movie “It’s Complicated.”   The movie shows that relationships are complicated.  It ought to inspire you to take steps to make sure your estate plan reflects your wishes and your current marital status.  There is no “one size fits all” plan for blended families, but a good estate planning attorney can help you sort through your options and make sure your intentions toward your family are honored.

E.J. Hong, Attorney at Law
LAW OFFICES OF E.J. HONG
2225 E. Bayshore Road, Suite 200
Palo Alto, CA 94303
Tel:  (650) 320-7680
Fax: (650) 320-7675

____________________________________________________________________
Author and Business are endorsed by The Dawn Thomas Team, Inc.
Silicon Valley and Beyond - our website
Silicon Valley Home Search  - find Silicon Valley properties for sale
What’s Your Silicon Valley Home Worth? - get current market information for your Silicon Valley home

Current real estate market statistics (single family homes) for the Willow Glen area of San Jose, CA:

For Sale in Willow Glen

• Number of homes listed for sale:  191
  
• Lowest list price:  $295,000
  
• Highest list price:  $2,950,000
  
• Number of REO banked-owned homes:  11
  
• Number of Short Sale homes:  23
  

Sold in Willow Glen

• Number of homes pending sale:  134
  
• Number of homes sold in last 30 days:  40
  
• Lowest sale price in last 30 days:  $425,000
  
• Highest sale price in last 30 days:  $2,000,000
  
• Median sale price in last 30 days: $740,000

Here are the real estate trends for Willow Glen:

Data source:  MLS Listings

Want more information about the market in your specific neighborhood?  Give us a call or email us!

Have a GREAT week!

Laura Powers, Realtor
The Dawn Thomas Team
Intero Real Estate Services
496 First Street, Suite 200
Los Altos CA 94022
(877) 901-2121
CA DRE License: 01860743

____________________________________________________________________
The Dawn Thomas Team, Inc.
Silicon Valley and Beyond - our website
Silicon Valley Home Search  - find Silicon Valley properties for sale
What’s Your Silicon Valley Home Worth? - get current market information for your Silicon Valley home

I bought a property at a trustee sale.  There is a tenant in the property who refuses to leave, but hasn’t paid me any rent.  

Under a law enacted in 2009, a tenant has the right to stay in a property, even when purchased at a foreclosure sale, through the remainder of their lease term.  However, there are exceptions to this general rule.  First, if you purchased the property in order to reside in it, then the tenant must leave after you provide them with a 90-day notice.  Second, the rental value must be in line with the fair market value.  Clearly, the tenant must provide you with a copy of the lease for you to review to prove their right to occupy the property.  

If it is the former owner who resides in the property and refuses to leave, you need to only provide a 3-day notice to quit.  If they do not leave at the end of the 3-days, you may serve them with an unlawful detainer action.  

If the tenant refuses to pay you any rent, you may serve them with a 3-day notice to pay or quit.  If the tenant does not provide you with the rental balance by the end of the 3-day timeframe, you can initiate an unlawful detainer action in order to evict them.  

The unlawful detainer action that may be initiated at the end of the 3- or 90-day term is a limited jurisdiction action in the superior court of your county.  Your complaint requests the court enter a judgment in your favor for immediate possession and any back rent you may be due.  If the lease provides for it, you may also request attorney’s fees as part of your damages.

There are strict technical rules to comply with when initiating an unlawful detainer action.  Violation of them may force the judge to rule that you start the notice process all over again.  Ensure careful compliance with the requirements, or contact an attorney who can guide you through the process.

For more information on real estate law, contact:

Elena Rivkin Franz,  Attorney at Law
Pratt & Associates 
1901 S. Bascom Avenue, #350
Campbell, CA  95008
(408) 369-0800 ext. 202

The heat is on for those who are out shopping for homes right now - as the Homebuyers Tax Credit is about to come to an end.

Last November, the government expanded and extended the new Homebuyers Tax Credit. According to the program, first-time homebuyers are eligible for a tax credit of up to 10% of the purchase price of the home, with a maximum credit of $8,000. And current homeowners are eligible for up to $6,500.

Although military personnel may qualify for a special extension, the vast majority of homeowners must have contracts in effect no later than April 30, 2010 and must close no later than June 30, 2010 to qualify for the credit.

This means that homebuyers now have less than one week to get their paperwork going to qualify for this credit, before it goes away!

Here are some important details about this tax credit.

Dollar-for-Dollar Benefit

The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction" or reduction in tax liability that would only reduce $1,000 to $1,500 when all was said and done.

So, if a first-time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Even Better... It's Refundable!

Remember, because it's a tax credit, it's refundable! That means a homebuyer can receive a check for the credit if he or she has little or no income tax liability.

For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

What are the Income Caps?

Single tax filers with incomes up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit.

However, single filers with incomes of $145,000 and above are ineligible.
Joint filers with incomes up to $225,000 are eligible for the total credit amount.

Those who earn more than this cap can receive a partial credit. However, joint filers with incomes of $245,000 and above are ineligible.

What's the Maximum Purchase Price?

Qualifying buyers may purchase a property with a maximum sales price of $800,000.

If you or someone you know is in the process of purchasing a home, this is an important week to take action - feel free to forward this article to anyone who it might benefit. And give me a call with any questions - the clock is ticking and the deadline is Friday!!

Have a great week!

Rob McCarthy
Owner and Senior Mortgage Planner - 101 Loan
www.101loan.com
Email Me
408-377-4123 Office
650-465-8957 Cell
560 S Winchester Blvd, Suite 500
San Jose, CA  95128
A Dept.of Real Estate - License # 01165697

Real estate analysts have stated the Bay Area hit the all time low in home value on April 23, 2009 and specifically on the Peninsula in November of 2009.  As result, some would guestimate that we have entered into a recovery market which means two things:
 
1)      Values will start going up.
2)      Interest rates will start going up.

While unemployment is still very high, reports have shown than unemployment in the Bay Area has lessened and employee relocation has gone up as compared to last year.
 
We are not saying things will start booming like they did in this late 90s or the mid 2000’s, but we are saying that if you are buyer of real estate, the time may be now vs waiting for the masses to buy which per the “investor bible” is the wrong  time to buy.
 
If you have questions on the above or would like to discuss long and short term goal in relationship to real estate investing, please contact Dawn Thomas at 650-947-4661.  Questions on purchase financing or purchase power, please contact me.
 
Have a great week!

Rob McCarthy
Owner and Senior Mortgage Planner - 101 Loan
www.101loan.com
Email Me
408-377-4123 Office
650-465-8957 Cell
560 S Winchester Blvd, Suite 500
San Jose, CA  95128
A Dept.of Real Estate - License # 01165697

____________________________________________________________________
Author and Business are endorsed by The Dawn Thomas Team, Inc.
Silicon Valley and Beyond - our website
Silicon Valley Home Search  - find Silicon Valley properties for sale
What’s Your Silicon Valley Home Worth? - get current market information for your Silicon Valley home

Current real estate market statistics (single family homes) for Mountain View, CA:

For Sale in Mountain View, CA

• Number of homes listed for sale:  56
  
• Lowest list price:  $499,000
  
• Highest list price:  $2,000,610
  
• Number of REO banked-owned homes:  2
  
• Number of Short Sale homes:  0
  

Sold in Mountain View, CA

• Number of homes pending sale:  38
  
• Number of homes sold in last 30 days:  23
  
• Lowest sale price in last 30 days:  $598,000
  
• Highest sale price in last 30 days:  $1,259,000
  
• Median sale price in last 30 days: $860,000

Here are the real estate trends for Mountain View:

Data source:  MLS Listings

Want more information about the market in your specific neighborhood?  Give us a call or email us!

Have a GREAT week!

Laura Powers, Realtor
The Dawn Thomas Team
Intero Real Estate Services
496 First Street, Suite 200
Los Altos CA 94022
(877) 901-2121
CA DRE License: 01860743

____________________________________________________________________
The Dawn Thomas Team, Inc.
Silicon Valley and Beyond - our website
Silicon Valley Home Search  - find Silicon Valley properties for sale
What’s Your Silicon Valley Home Worth? - get current market information for your Silicon Valley home