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Mike Zagaris has been talking about it since this market cycle began. The foreclosure crisis has been a bane to some, and a boon to others. However, “We’ve found the bottom,” Zagaris said. “The financial institutions have seen the light and are allowing the market to find its own level.” Banks are moving their inventory of foreclosed upon houses, bringing qualified homeowners into the market with heavily discounted properties and sound lending strategies amidst great interest rates.

At PMZ Real Estate, we’ve seen the bottom in our rear view mirror and we’re riding the wave back to the top. Bloomberg points out in there most recent Exclusive story, California’s Discount Foreclosure Sales Point to Housing Bottom, that there are, indeed, good times coming and that there is opportunity available now in the housing market.

Right now there is EXCELLENT opportunity for homebuyers and investors. Home prices are on an average discount of 30-40% according to Bloomberg. Even with the bidding wars going on with foreclosed properties, people are still walking away with huge discounts on the properties they purchase. And, interest rates are still attractive; no where near the 14% they were in the 80’s.

Interested in learning more? Check out the Bloomberg article for an even more informative look at where the housing market is taking us.

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Some homeowners who can’t afford their mortgage payment, and find themselves in property foreclosure are not only walking away from their home, but they’re also walking away from their pets.

They’re called, “foreclosure pets” and when the owner walks away from the home they leave there pet behind. You’d think it would be as simple as taking the animal to the nearest pet shelter or finding the loved one a good home, but it’s more complicated then that.

Animals who get “left behind” are the personal property of their owners, and therefore cannot legally be taken from the property.

A woman named Cheryl Lang, president of REO management firm Integrated Mortgage Solutions, heard about the growing problem and started a non-profit organization called, No Paws Left Behind. She utilizes her network of contractors to feed and care for the abandoned pets until they can legally be taken from the home.

If you are a property owner who is about to be foreclosed upon and have no place to take your pet, or if you are interested in helping or donating, visit the No Paws Left Behind website at: http://www.NoPawsLeftBehind.org

Now that the market is ripe with foreclosures and other bank owned property, we want to take a moment just to clarify what a short sale really is.

What is a short sale?
To sum it up quickly and concisely, a short sale is a situation in which the lender allows a property to be sold for less than the amount owed on a mortgage and takes a loss.

How does it benefit the homeowner?
After submitting thorough documentation, including, but not limited to:

• W-2 and pay stubs to verify income
• Bank statements to assess assets and financial situation
• Hardship Letter to explain why the bank should consider your property for a short sale

the bank may consider a short sale. The process can help keep the homeowner out of bankruptcy and save their credit rating.

The house will be sold and the difference between what you owe the bank and what the bank received on the sale will either be written off or the seller will be responsible for it.

NOTE: It is important to understand that if the bank writes of the difference, they will more than likely report it as 1099 income for the seller. This could adversely effect the seller’s tax liability.  Speak to a tax professional.  Remember, just because they write it off, doesn’t mean it disappears.

For an even more thorough look at short sales, check out the resources below:

The Definitive Short Sale Article

Short Sale (Real Estate) - Wikipedia