I am consistently asked “why I would list the house for short sale instead of just walking away?”

Besides the financial benefits, the short sale process is the right, honorable choice instead of foreclosure. I am talking about when the home owner is just abandoning the property and not even considering the short sale. Why not when given an opportunity to create win-win among home owner (who is on title), the bank (lien holder) and provide extending benefits to real estate agents and the neighborhood community (where the home is located). The sale is handled just like any other sale.

When divorce, death, loss of income or any life circumstances strike a family, the home owner may not able to maintain the loan current, the first thing the home owner must do is to sit down with a short sale experienced listing agent to talk about how to plan out the sale.

All banks are motivated to complete a short sale vs foreclosure. The foreclosure is an expensive process to the bank. It is a legal process against the homeowner and later the bank has a vacant home. The condition of the home cannot be predicted after the home owner moves out.

Here are some emotional benefits of short sale:

• One may feel better knowing that they are selling their home, handled just like any other sale.
• Knowing who is buying the house, choosing the buyer for the future of the home.
• Avoiding  the social stigma, “my home was foreclosed”
• Integrity! Even one may not pay the full amount on the loan, home owner and listing agent are working with the bank to come to mutual agreement instead of walking away and be irresponsible.

Here are some financial benefits of short sale:

• If the loan is current, even though finding Fannie Mae loan could be very difficult but Fannie Mae guidelines allow the new buyer to purchase another home immediately.
• If the loan is current, one can qualify for FHA loan, as long as moving 600 miles away.
• If the loan is current, the lender will not have deficiency against the home owner.
• If fallen behind, 30 days late, FHA loan requirement is to wait about 3 years; Fannie Mae is 2 years for a new home purchase versus to wait 7 years after a foreclosure.
• Credit Bureaus report the short sale as “paid in full for less than agreed or settled for less”.
• FICO score drops from 50 points to 130 points as reported by some clients, mainly due to being in default rather than completing the short sale. Foreclosure impacts the credit scores about 105 points to 160 points.
• Loan application includes a question “Have you ever had a property foreclosed upon or given a deed-in-lieu thereof in the past 7 years”, not have you ever had a short sale? The application is immediately denied with foreclosure history, lying is mortgage fraud.
• The lien holder will send in 1099C (cancellation of debt) to the home owner, under Mortgage Forgiveness Debt Relief Act of 2007, the provision excludes the debt as a taxable event on all primary residence purchases.

IRS website states: “This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The amount of debt forgiven must be reported on Form 982 and this form must be attached to your tax return. More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Also see IRS news release IR-2008-17.”

• A job application may be denied if the prospective employer runs a credit check if there was a foreclosure in the last 7 years, not over a short sale.
• Home owner may be qualifed for HAFA Program, as outlined at their website “Unlike conventional short sales, a HAFA short sale completely releases you from your mortgage debt after selling the property. This means you will no longer be responsible for the amount that falls “short” of the amount you still owe. The deficiency is guaranteed to be waived by the servicer.

During the short sale, home owner may reside in the property until the lien holder approves the sale. Just like any other sale, the home owner will have the closing date to plan out their move and walk around to neighborhood, holding their heads up to say goodbye to their neighbors instead out being forced out of the house by the bank  the middle of the night with no goodbyes…

In closing, feel free to call Sebnem Oden, Realtor®, Broker for additional information about your bank’s short sale procedure and never forget to contact a licensed professional for legal and tax advice before making a decision between short sale and foreclosure. In order to have affordable help for expert legal advise for this and any other legal help, go to www.RightsInUS.com

Oh by the way, if you happen to know anyone who would like the level of service I provide.   My purpose for you to be outrageously happy with the help I provide that you will gladly introduce me to friends, family and co-workers who are struggling with their home value being less than the mortgage amount.

Make it a happy day!

Exploring the Seattle Pacific Science Center, by Edy Kizaki and assistant Madeleine Anthony

The Seattle Pacific Science Center is packed with fun and adventures for people of every age.  From school field trips to just plain old family fun, the Science Center is always a blast.  Babies, toddlers, pre-schoolers, as well as our school children of all ages, enjoy  playing, exploring, and learning about such wonders as ocean life, reptiles, and the human body.  In fact, the adults have just as much fun as the kids as there is something for everyone!  Many times you’ll see Seattle visitors without kids there with unmistakable expressions of interest and pleasure. I know I learn something new every time I go! The Science Center is huge, with four buildings packed full of different exhibits surrounding the central water park which also has its own experiments about hydrogen energy, bicycling, and sculptures of animals and dinosaurs.

There is never enough time to completely enjoy all that the Science Center has to offer.  Two IMAX Theaters (the Boeing Theater being six stories high!) show all kinds of 3D films ranging from tornados to Sea-Rex. Learn about our solar system in the Planetarium and enjoy a hypnotizing laser show in the Laser Dome.  Check their IMAX THEATER WEBSITE  for current showtimes. Currently the butterfly house is a favorite attraction of most of the kids I know.  The humid exhibit is filled with exotic plants from jungles and tropical forests where hundreds of butterflies flitter past, sometimes to land on your shoulder or shoe.  Before going into the Butterfly House, you must pass through the yucky, creepy bug exhibit where you can observe live tarantulas and scorpions.  Sit at a picnic table where a lunch of fried beetles and bug cookies await.  In another exhibit you can learn about prehistoric dinosaurs and watch the life size models munching on plants and tearing apart fresh meat.   My little guy loves the toddler play area with indoor climbing toys, computer room, musical instruments, and water park (great for the Seattle wet winters which keeps us inside). There are endless experiments ranging from DNA blocks to the chemistry lab, balance and levers to trains and other locomotives.

The Science Center is located in the extensive Seattle Center in the north part of downtown. It would be a mistake to think you can see the whole Seattle Center in one day, split up the museums for several different trips.  You can spend the whole day at the Seattle Pacific Science Center and still not see it all. Bring a sack lunch, some snacks, and take your time exploring all of the scientific wonders and activities at the Pacific Science Center.

Madeleine Anthony, Young Seattle Mom and Real Estate Assistant

First, before you start to drive you can visit the website at seattle.gov/epark and take a look at the interactive map and live feed which show the parking garages that have space available.  You can choose the garage that is closest to where you are going, taking price into account too.

Then when you get to downtown, just go straight to your chosen garage.  There are dynamic signs posted at key points (made so you can’t miss them), which will help guide you.  These useful little signs let you know current information including how many spaces the garages have at that time.

Don’t forget some fun and entertaining ride options once you are downtown, which include the recently returned Seattle streetcars, the light rail, the monorail, horse drawn carriages, rental scooters, and of course the Ride The Duck tours.  And the Center for Wooden Boats on Westake offers free boat rides on Sunday afternoons, as well as some boating lessons and some classes on keeping the art of building old time boats alive.  And for those who like to walk, check out this great walking map put out by the city government which you can enlarge to see each individual walk.

“Childish Things” a third in a series of kids resale shops, by Edy Kizaki and assistant Madeleine Anthony.

Right off the busy Holman Road in Greenwood you will find Childish Things, a small high quality children’s and maternity store.  After struggling to find parking in the small lot outside the store, I walked into a most organized and clean resale boutique.  It is such a nice little store, at first glance it seemed like all new items.  New toys racks are the first you see in the store, and as you continue to browse, it is sometimes difficult to distinguish the used toys as they are of such high quality. Not only the toys are in such nice condition, but even the used clothes are steam cleaned and ironed every day so as to appear new when hanging on the racks.

The girls that work here do an exceptional job at choosing items to buy from consigners and they believe this is because their consigning system is different than other resale store in Seattle.  Childish Things “buys outright” which means that they offer people store credit or 75% cash on the spot. In this system, they must be really selective on what they put on the racks in this store otherwise they would lose too much money for the business.

The girls that work here love the fact that they are all so different because their differences allow them to choose a wide variety of toys and styles of clothes to resell in their store.  They also have a great selection of used and inexpensive maternity wear.  There is a whole separate room filled with maternity clothing as well has shelves above filled with educational books for both parents and kids.  It is important to have such a resale store in this neighborhood because families come from all over the Seattle area to visit Carkeek park which is just a few blocks up the road from Childish things.  You might even consider making a day trip out to Greenwood—do some shopping at Childish Things and then go play at Carkeek Park.

Madeleine Anthony, Young Seattle Mom and Real Estate Assistant

Maplewood Heights House on 1/2 Acre Lot

Maplewood Heights in Renton

Maplewood Heights is a neighborhood in northeast Renton with good schools, attractive amenities, and a good location.  The neighborhood is centered on Maplewood Park and the Maplewood Heights Elementary, which was recently named a “School of Distinction”.  The Renton School District generally has seen improvement in test scores in 2011.

Recreational opportunities abound nearby with the Cedar River bike trail, the Renton Community Center with its gym and outdoor water park, the Eastside’s only ice skating rink, and the public swimming pool open year round at Hazen High School.

The neighborhood has a choice of two routes for a commute to downtown Seattle (405/I-90 or 900/I-5), which makes it possible to avoid the worst traffic.  The community is service by King County Metro bus line 111.

SEARCH HOMES FOR SALE IN MAPLEWOOD HEIGHTS RENTON

Kids at play in the snow

Seattle Snow and Ice Storm

Seattle is suffering through an unprecedented week of snow and ice storms that have cut power to 250,000 homes and brought the city to a halt.  Our usual mild winters will sprinkle 1-2 inches on us, everybody will stay home one day to play, and then it all melts by the next day.  This storm brought 6 inches of snow to the Seattle area which was followed up by a layer of ice that fell all day on Thursday.  Friday we are looking forward to icy sheets on the roads.  Midwesterners, of course, who get accustomed to snow all winter long, laugh at us and our poor winter driving.  But they don’t have our hills to contend with.

The kids are loving it as the school districts announce closures day by day.  Even the University of Washington has closed, which is unusual.

MORE STORM DETAILS

But let’s not get discouraged.  Let’s go shop for houses after the ice and snow melt!

SEATTLE REAL ESTATE SEARCH

Hanging ferns under snow

Pool party anyone?

Out and about in Seattle?  What has been billed as the “worst” storm in Seattle history (ask the kids and you may hear it’s the “best” storm) has ended up being a little less ferocious than at first thought.  The National Weather Service has revised its predictions and now we are told that we will have up to 6 inches by 2 p.m. today.  That is definitely enough for the schools to be closed for a second day.  We got the expected recorded call from Seattle Public Schools last night telling us there would be no school again today (Thursday the 19th).  Another day of snow fun at the park, apparently!  I wonder if my snow people will still be there from yesterday, at Whitman Middle School in Ballard.

Some of you will be wondering much more urgent things as you try to plan your route to work in the morning.  A new Seattle Department of Transportation website feature, live traffic video available for 24 camera placed strategically around the city, should be of some help.  SEATTLE TRAFFIC CAMERA WEBSITE.  Knowing about this, I will probably use it to predict how long it will take me to get to numerous places across town, whenever I need to be there (to show homes of course!), and certainly they ought to come in handy today as you go about your day.  The site says it’s a new experiment and they want feedback, and I would love to hear from you too on whether it is as useful as it looks to be.  By the way, if you’re in Bellevue, try this BELLEVUE TRAFFIC CAMERA WEBSITE.  And here is a group of local weather cameras located at different schools, SET FOR KIRKLAND.  If you go forward, the next one is at Shorecrest High School in Shoreline.   Lastly, I wanted to include the WSDOT list of webcams in different communities, which includes Issaquah, Lynnwood and Redmond as well as Seattle and Bellevue.

Queen Anne real estate market has always been a hot one due to the highly desirable location and charming properties but it has never been hotter!  The combination of the attractive values and historically low mortgage rates is bringing a lot of buyers that were sidelined during the boom and really propelling the Queen Anne real estate market.  Why now?  Queen Anne has always been a highly sought – after neighborhood to the fact that it’s a well – established “suburban” close to Downtown and home to some of most beautifully preserved homes full of charm, character, and history that you won’t find in other neighborhoods.  Queen Anne is also home to some of the most prestigious streets and zip codes in Seattle.  My clients are I are noticing that pretty much any properties that are priced well are receiving multiple offers thus reinforcing the popularity of the Queen Anne real estate market.  My favorite part of Queen Anne is of course soaking in the beautiful Seattle skyline and the Puget Sound at the Kerry Park.

Queen Anne Real Estate Market

What is the “prime” Queen Anne real estate parameter?

-         10^th Ave W/Olympic Way W/W Olympic Pl to the west.

-        Taylor Ave N/5^th Ave N to the east.

-        Valley St. to the south.

-        W McGraw St. to the north.

I did a general search for that parameter and here are some interesting statistics:

-        Total of only 22 active listing of single family homes.

-        Of the 22 active listings, only 8 were priced at or under 800k (competitive price range).

-        Total of only 19 active condo listings priced at or under 500k.

There has never been a more opportunistic time to get into Queen Anne real estate market and own a piece of history and be part of the most prestigious community in Seattle.  Don’t get sidelined again and contact me for a complimentary consultant and get in the game TODAY!

Queen Anne Real Estate Market

ABOUT CHRISTY KIM

A report on one of my favorite parks, not far from our home in Ballard, by my assistant Madeleine Anthony:

Having spent my childhood in Seattle and now a mother, I must say that Carkeek Park is a favorite park in the north Seattle area.  Between the Ballard and Greenwood neighborhoods at the edge of Puget Sound, lies the huge 220 acres of Carkeek Park.  Hiking trails offer adventures in the wilderness right in the city; explore forests and wetlands, cross bridges and duck under fallen trees.  Barbeque areas of different sizes, all with views of the sound and Olympic Mountains, can be reserved through the Park’s Department for larger parties.

Two great playgrounds serve people of all ages on one side of the giant field where you can find people bathing in the sun, playing soccer, and Frisbee.   Beware of the giant Salmon who eats small children and shoots them through a tunnel slide to land in the play area with mosaic art replicating the Piper’s Creek watershed and beach life of the Puget Sound.  Climb down the stairs to the beach front below and explore the wildlife awaiting. When the tide is out, you will find tide pools full of anemones, crabs, and starfish.  Piper’s Creek meets the Sound to create shallow wading areas which are great in the summer for a cool down in the heat.  Several parking lots are found scattered around the park; depending on what you want to do, you can park at the top of Carkeek and hike in or drive down the windy roads and park closer to the play area or the stairs to the beach.

Go to the Seattle Parks and Recreation for directions as it can be a little tricky to find.

By Madeleine Anthony and Edy Kizaki.

Fannie Mae and Freddie Mac are continuing to be criticized by the public.  Having dealt with both recently, I’ve found these quasi-goverment entities are both heavily aggressive and not a friend of the consumer.  It is true, that you may get a good deal on some of these homes but the best thing to do is Buyer Beware.  These homes are sold under the “As-Is” umbrella but it is not always as it seems.  One of the homes I dealt with hid the fact that the furnace did not work and hadn’t worked since 2008.  Having talked to the contractor that winterized the home, this was a known fact.  Luckily,  knowing one of the only ways you can get out of one of their contracts, the buyer bailed.  Even weeks after, the listing does not show this defect in the property, even though they received a copy of the inspection company’s report.  This is a material defect in the property that is not being disclosed.

Backing up, how does this happen?  Well first of all, being a quasi-governmental entities, they are not be closely tracked by the government.  Go figure.  They are tasked with disposing of assets that are owned by themselves.  As part of that disposal, they want to get the most out of the homes as they can to save the government money.  Okay that sounds like a good idea.  And since it is taxpayer’s money that is being lost, they act as though they can do whatever they want to pass that loss on to other taxpayers.  Even if what they do flies in the face of most consumer protection acts.  After all who’s going to make them stop?  The government.  Sounds like a conflict of interest, doesn’t it.

The addendums that are being used, essentially tell you that whatever purchase and sale documents you have are nice but their addendum “shall control” over yours.  In other words, all of the consumer protections in your state’s documents don’t matter because their addendum rules.  Now, some will say okay you don’t have to sign the addendum but you will not get to purchase the house either.  It’s their way or the highway.  And even though state’s may require “As-Is” properties to be clearly designated as such, these homes rarely state that until you get their addendum.  To further bully their way through the process, one addendum gave us 48 hours to get it signed and returned the other gave us 24 hours or they will negotiate with another party.  They do state you have the right to have an attorney review the twenty plus page document but have you ever tried to get an attorney to review the documents, give their opinion of the documents and still have time within a 24-48 hour period to answer back?  Probably not going to happen.  Oh and the time does not stop for weekends to try that on with attorneys.

Then let’s say everything is okay, the inspection periods are stated usually at ten days.  Not bad, but if the home is winterized, the time does not wait for them to have the home de-winterized.  On a Fannie Mae and another Freddie Mac home, the de-winterization process took five days to get done or half of the inspection period.  When asked about this, their representatives had to think about it and guess what, time was still running out during that process.  Abusive, who are you going to tell?  Another thing they crammed down on the buyers is you have to use their escrow company (they were told this after the addendum was signed) who, by the way, signs for Fannie Mae or Freddie Mac.  Do you think that is a conflict of interest?  Again, who are you going to tell.  You need to make sure your real estate professional is on top of the addendum or you may get sunk.

These are extremely adversarial processes and they don’t work on weekends or federal holidays and their timing does not stop during those days.  So Be Careful when dealing with them.  You may get a great deal on a house but feel like you’ve just been run over by a truck.