Pasadena Short Sale: Will I Pay Tax On the Forgiven Debt?

Posted on March 12, 2012 by Diane Butler, Ph.D.

Debt Forgiveness

It makes sense, doesn’t it? Generally, if some part of a debt is forgiven, then the forgiven part is treated as ordinary income by the IRS and taxed accordingly. Of course, there are a few exceptions. Bankruptcy, for instance, will wipe out debts without tax consequence as will insolvency and a few other situations.

Two Questions: Deficiency Judgment + Tax After Short Sale

So, what about a short sale? If a Pasadena homeowner does a short sale and walks away from a staggering mortgage debt, does the bank pursue? Does the IRS treat the unpaid balance of the mortgage as forgiven debt and therefore tax it as ordinary income?

These are two separate issues, both of which the homeowner considering a short sale must face. Luckily, the answer to both questions is NO and NO. The bank does not pursue for a first, second, third or fourth lien on the short sole house. The IRS does not consider the unpaid balance of the mortgage forgiven debt and does not expect to tax the homeowner. Here’s why on both counts.

California Does Not Allow Deficiency Judgments

As for the bank demanding a “deficiency judgment” after a short sale, Pasadena homeowners are lucky because they live in California. California legislators passed two laws within the last couple of years: one outlawed deficiency judgments for first mortgages and the other, which went into effect January 2012 outlawed those judgments for secondary mortgages. These apply whether it’s a primary residence or a rental. Banks have certainly gotten the message. California homeowners do not face deficiency judgments, though homeowners in many other states do.

Does a Short Sale Trigger a Tax? NO, NO, NO

As for the second question–will the unpaid mortgage balance be taxed? In fact, it used to be taxed. In 2007 Congress passed legislation which changed that. From 2007 until the end of 2012 a borrower’s forgiven debt is not treated as ordinary income and the borrower owes no tax. Some caveats apply. This applies to a principal residence and the amount forgiven cannot be larger than the original amount owed plus the cost of any improvements.

This law applies to an ordinary sale, a short sale or a foreclosure. Further, if the homeowner is so fortunate as to get a principal reduction from the lender, this law applies there, too.

The law does not apply to rental property, so doing a short sale there may well generate a taxable event. Refinanced mortgages are also a murky area with special provisions so that part of a forgiven debt may or may not be eligible for this special tax treatment. Usually, the forgiven debt cannot exceed the amount of the original debt plus any improvements. Equity lines and cash-out refinances must have been used for home improvements. Consulting an accountant is a good idea.

In practice, the lender files a 1099 about the sale with the IRS and the homeowner. The homeowner then files a form 982 to show the amount forgiven and the reason why it is not taxable. These days with the mountain of short sales and foreclosures, this is not hard to do. If there is any taxable part, the homeowner used form 1040, the normal income tax form, to report it as income.

The law is expiring this year, but the homes of millions of Americans and thousands of Pasadena homeowners remain underwater. The National Association of Realtors is lobbying to get the law extended a few more years, 5 at least. And. as we cannot fail to notice, it is an election year. Maybe this is one subject we will see some of the scant “bipartisan support” that actually makes the government work.

Posted in deficiency judgment, Mortgage Foregiveness & Debt Relief Act of 2007, negative home equity, Pasadena short sale, Pasadena short sale Pasadena broker, short sale, short sale and second mortgages, underwater mortgage | Tagged choosing a Pasadena short sale agent, deficiency judgment, Pasadena broker, Pasadena home values, Pasadena short sale, short sale, short sale deficiency judgment, taxation and the short sale | Leave a comment

Pasadena Short Sale: Homeowner Tax Deductions

Posted on March 2, 2012 by Diane Butler, Ph.D.

Homeowner Income Tax Deductions

It’s Tax Time, again, and homeowners can at least be happy that they are eligible for a number of deductions from their income tax. When doing your tax, don’t forget even a single one. Here’s a list of the most important deductions available to homeowners.

Mortgage interest: As long as homeowners itemize deductions on their tax returns,they are generally entitled to reduce their taxable income by the amount of mortgage interest paid. This is true not only for the principal residence but also for any investment properties owned.

Private mortgage insurance [PMI]: Homeowners paying PMI likely will be able to fully deduct the amount, as long as their adjusted gross income [AGI] is $100,000 or less ($50,000 for married taxpayers filing separately). Borrowers with incomes above $100,000 may qualify for a partial deduction.

Energy-efficient home improvements: Any homeowner who installed windows, doors or skylights meeting federal Energy Star program requirements in 2011 can get a tax credit for 10 percent of the product’s cost.

Mortgage Points: The charges paid by a borrower in points to get a first mortgage are generally deductible. In the case of a refinance loan, all or some of the point charges might be deductible.

Property taxes: Homeowners can deduct the amount paid in property taxes whether it’s for a principal residence or an investment property. If the mortgage company collects money for property taxes, the amount actually paid should be on the 1098 form lenders send out each January.

Recently, it’s been hard to be a homeowner watching equity slip away. Fortunately, though, in the U.S., unlike many other developed countries, such as Canada and Australia, homeowners are able to deduct many of the most substantial costs of owning a home from their income taxes. That’s at least one bit of good news for homeowners.

Posted in Uncategorized, underwater mortgage | Leave a comment

Wells Fargo Help For Homeownership Event In Los Angeles

Posted on January 24, 2012 by Diane Butler, Ph.D.

Wells Fargo has announced that an event to help for borrowers who want to buy a home in the City of Los Angeles.

The event, to be held February 3 and 4 th 10Am to 7 PM in the LA Convention Center, will help with

down payment assistance
pre-qualification
tour of area homes

Check out details here--http://bit.ly/zYgcGA

Posted in Wells Fargo | Tagged Wells Fargo Home Loans | Leave a comment

Mortgage Complaint Hotline Operational

Posted on December 16, 2011 by Diane Butler, Ph.D.

Got a gripe with your mortgage company? Really, who doesn’t? Calling your mortgage servicer gets you nowhere? Your Pasadena loan mod rejected? Payments are all garbled up? Lost your paperwork, again? Your Pasadena short sale is taking six months or more? The left hand doesn’t know what the right hand is doing?

Now, homeowners have a safe, secure place to voice complaints or get information mortgage servicers just don’t seem to have. The new Consumer Financial Protection Bureau recently opened its new hotline for consumers to voice their complaints or concerns. The complaint hotline is accessible online at http://www.consumerfinance.gov and by toll-free phone between 8 a.m. and 8 p.m. Eastern at (855) 411-2372.

Yes, this is the same Consumer Financial Protection Bureau that Elizabeth Warren, now running for U.S. Senator in Massachusetts, worked so hard to get included in the Dodd-Frank financial protection law passed last year. And, yes, this is the same Consumer Financial Protection Bureau that has no director because Republicans in the House are blocking the appointment of Richard Cordray as its new chief.

Republicans may be doing everything in their power to block the director, weaken the protections and let the Bureau slide into obscurity, but, quietly and confidently, the Bureau has initiated operations anyway. The hotline for credit-card-related disputes started operations July 21 and so far have handled over 5000 calls. Though some want to block its effectiveness, clearly the public has found out about the Bureau, which has already proved its usefulness, in spite of a near-total media blackout .

Just as the credit-card complaint line requires the consumer to submit a written statement of the problem along with identifying account numbers and such, so, too, the mortgage complaint line is expected to operate in much the same way. So far, written complaints are immediately submitted to the credit card company for consideration. The credit card company must directly communicate with the consumer. The mortgage complaint process will most likely operate the same way.

Here’s how it will probably work: the homeowner makes a written statement to the Bureau which, in turn, hands it over to the mortgage company or servicer involved. The lender must review the matter, contact the homeowner if necessary and–here’s the key–report action taken to the Bureau. Complainants can log onto a secure portal to view the progress of the complaint during the entire process.

Given the enormous dissatisfaction with the miserable performance of banks during this entire “mortgage crisis” or rather mortgage debacle, the Bureau may find itself deluged with calls from angry homeowners at their wits’ end trying to save their homes. Will the Bureau have the staff and dedication needed to handle the calls? Let’s hope so because the Consumer Financial Protection Bureau is the last hope of many, many homeowners.

Posted in HAFA short sale, loan mod, loan mod scam, loan modification, Mortgage Foregiveness & Debt Relief Act of 2007, mortgage litigation, paperwork for short sale, Pasadena loan mod, servicers, short sale, short sale and collection agencies, Uncategorized | Tagged Mortgage complaint hotlone | Leave a comment

Pasadena Short Sale: Will New HARP Refi Help?

Posted on October 27, 2011 by Diane Butler, Ph.D.

Extension to HARP: Will It Help?

President Obama announced this week an extension of the HARP [Home Affordable Refinance Program] to cover any amount of underwater mortgage.The old Home Affordable Refinance Program, announced to great fanfare a couple of years ago by the federal government didn’t help much. Though it was supposed to alleviate the worst of the foreclosure crisis by allowing homeowners to refi up to 125% of their underwater mortgages, it never really caught on. A scant 900,000 homeowners were able to refi.

Possible Help For CA and NV Underwater Homeowners

It did almost nothing for California or Nevada where homes were already far more than 25% underwater. Try 40%, 50% or 70% in some case. So, this week President Obama announced a new initiative. Now the HARP program will be extended to cover any amount underwater. As always, there are caveats. First, the loans to be refied must be Fannie Mae or Freddie Mac loans, that is to say, government-backed loans. Consumers can check to see by going to websites and clicking the “Lookup Tool.” Second, the borrower must be current in payments, so those who have stopped making payments are not eligible.

Here Comes The Tricky Part: It’s Voluntary

Probably the most tricky part of this program is that it is voluntary on the part of the actual banks involved. That is most likely why the original program did not work. Just as with the loan modification program, HAMP, the banks agreed to implement the government program but not seriously. By insisting on a convoluted process that involved reams of paperwork, faxes out the ying yang and an eternity of time, it appears that even the banks that agreed to participate in the programs tried everything to discourage homeowners from actually getting their loan mods. The same tricks applied to the refi program. That’s why it didn’t really help many homeowners.

This time round it might be better since the cap on the amount underwater has been eliminated. But, even if a homeowner is lucky enough to wade through the paperwork, financial statements and whatever else the banks decide to demand, the simple fact remains: the borrower will still owe the entire principal. Until the government and the banks solve this issue, housing programs like this one will be little more than bandaids on a hemorrhaging patient, the very sick housing sector of our economy.

Contrarily, What About The Taxpayer?

On the other hand, it’s also true that giving refis to severely underwater homeowners is flirting with disaster. These are the very homeowners who, although current today, are constantly tempted to chuck it all and do a strategic short sale. Owning a property on which you are paying a $400,000 mortgage, for instance, while all the neighbors bought their homes for $200,000 means feeling ‘had” every month when you write that payment check. Should this program succeed and manage to refi millions of people, it’s the taxpayer who will be on the hook for the difference. Is that really a good idea?

Even If It Helps Just A Few, We Need All The Help We Can Get

Most today see this extension as little more than a political gesture on the part of an administration which would like to be re-elected despite dismal polls and citizens occupying parks throughout the country. Despite this, some Pasadena homeowners may be able to stay in their homes as a result of this program. Even if it helps just a few, say another 900,000 or 1.5 million, those individual families get to keep their homes. I’d say political ploy or not, we’ll take it! We need all the help we can get.

Posted in Fannie mae, Freddie Mac, refi underwater mortgage, short sale | Tagged Fannie Mae, Freddie Mac, loan mod, Pasadena home values, Pasadena strategic short sale, Pasdena loan mod, refi underwater mortgage | 1 Comment

Pasadena Short Sale: No Housing Recovery Until 2020

Posted on October 3, 2011 by Diane Butler, Ph.D.

Scary Housing Predictions

In case we weren’t depressed enough about the state of the economy and the state of our own personal finances, media outlets have to go and survey the powers-that-be for their opinions. Scary doesn’t really begin to describe it.

According to this CNBC story, home prices are unlikely to recover before 2020 and mortgage defaults will persist for years, says a recent survey of bank risk managers. That’s just wonderful news. The survey conducted by the Professional Risk Managers’ International Association for FICO, found that 49% of respondents do not expect housing prices to rise back to 2007 levels for another nine years. Only 21 percent of respondents said they would.

The findings, which authors called “a decidedly pessimistic outlook”, are a sharp reversal from cautious optimism the survey respondents expressed late last year and in early 2011. In addition, 73 percent of surveyed bankers say they expect mortgage defaults to remain elevated for at least another five years. And 46 percent believe mortgage delinquencies will increase over the next six months.

Only 15 percent of respondents expect mortgage delinquencies to decline during that period.

Why Are Bankers So Pessimistic?

These are opinions only, of course, but they do come from the very bankers who are studying the housing market and its continued declines in many markets. At this point, statistics tell us that 1 in 80 homes nationwide is in some stage of foreclosure. This was a 33% jump in just one month to a 9-month high. In Florida the figure is 1 in 44, in Illinois 1 in 43, 1 in 37 in Arizona. Nevada leads the nation with 1 in 20 homes in foreclosure while our own California has 1 in 48.

What Do These Figures Mean?

We all know that foreclosed homes are sold more cheaply as banks, not being in the real estate business, do everything in their power to sell them fast. Every home that goes into foreclosure pulls its local market down by a small increment. When many are sold as REOs [real estate owned], the local market as a whole is lowered. As prices dip, nearby homeowners are losing their equity; those on the edge are then driven underwater. Once a homeowner is underwater, the impetus to pay the mortgage lessens as it hardly seems worth it.

At this point, the economy as a whole is performing badly. Millions are out of work and can’t pay their bills, including their mortgages. Those that are able put more and more on credit cards until the issuers pull the plug. Millions of people are using retirement money to get through this tough spot. The trouble is the tough spot is lasting for years and their grown children cannot find work either.

Enter the banks. The banks, as we all know are wallowing in cheap cash from the Fed, but are reluctant to lend. On their books, left over from their giant party during the “bubble” years are trillions of dollars of bad mortgages which by now everyone is realizing will never be made good. Instead of settling for less by restructuring these bad loans or offering temporary loan mods, the banks are instead simply dumping these properties onto an already-saturated market.

We know what will happen next. As Bank of America, for instance, with huge inventories of bad loans from its acquisition of Countrywide, especially here in SoCal where the company was located, is slammed with plummeting stock prices, the urge to get the non-performing loans off the books is overwhelming. And, so more foreclosures hit the market, spiraling prices down and creating more underwater mortgages, more future foreclosures.

Is it any wonder the bankers are pessimistic about the chances for a housing recovery? Housing cannot recover until the wider economy pulls itself out of the ditch and gets back on track. When will that happen? In the meantime, should you be considering a short sale, call me.

Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at drdbroker@gmail.com. I will contact you for a free consultation. If you prefer to stay in your home, perhaps a loan mod, a refi or mortgage litigation is the best route for you. During our consultation, I will be happy to help you come to the right decision for you.

When we talk, I will explain how the short sale process works in detail and answer any questions you may have about either short sale or mortgage litigation. Or, if you prefer, you can call me at (626)641-0346.

Diane Butler specializes in helping Pasadena Homeowners short sale and never pay the bank another penny. Pasadena Loan Modification Help, Pasadena Short Sales, Pasadena Short Sale Realtor, Pasadena Realtors, Pasadena Realty, Pasadena Realtor. Altadena Short Sales, Altadena Short Sale Realtor. Azusa Short Sales, Azusa Short Sale Realtor.

Posted in California home values, choosing a short sale agent, loan mod, loan modification, negative home equity, Pasadena loan mod, Pasadena realtor, Pasadena short sale, Pasadena short sale Pasadena broker, underwater mortgage | Tagged .Pasadena short sale agent, choosing a Pasadena short sale agent, loan mod, Pasadena broker, Pasadena home values, Pasadena short sale, Pasadena short sale broker, short sale | Leave a comment

Pasadena Short Sale: My House Is Underwater, Can I Refi Out Of This Mess?

Posted on September 7, 2011 by Diane Butler, Ph.D.

As home values in Pasadena and neighboring cities have continued dropping for the most part, more and more homeowners are approaching the dreaded state of underwater. Many homeowners, particularly those who bought after 2003 or 2004 up to 2008 when prices started dropping are excruciatingly familiar with that state, but today thousands more are on the cusp.

What is to be done? What choices do homeowners have to save their homes?

Options for Distressed Homeowners

Option 1. Loan Modification.

This option requires the cooperation of the lending bank. This cooperation has been difficullt for many homeowners to attain. As a result, even after months of trying and reams of paperwork, many distressed homeowners find their requests DENIED. The reasons vary with the individual, of course, but to me they come down to what I call the Goldilocks Dilemma: The homeowner makes TOO MUCH money, the homeowner makes TOO LITTLE money and very few make an income that is JUST RIGHT for the loan mod.

Option 2. Refinance The Property.

This is a little-known and little-used option, especially in California where prices dropped early and hard. But, several government agencies actually offer distressed homeowners the opportunity to refinance their underwater or near underwater homes. Surprised? Many fail to take advantage of their government’s helping hand partly because the programs have not been well-publicized, but, mainly, I think because the loudest voices these days are all trumpeting, “Big Government Is Useless!” “Washington Is The Problem!”. Well, you know–you’ve heard it, too.

Despite the public perception of federal ineptitude and in attention to the plight of the middle class, both Fannie Mae and Freddie Mac, GSEs [government-supported entities] are offering to refi properties up to 125% of present value. The program is called HARP Home Affordable Refinance Program and has been available for at least two years. Until recently, even 125% of value wouldn’t help most Californians, but with the continued slide in values, many more homeowners may just possibly be helped as they slip from 10% equity position one month to maybe 8% or even -10%.

Traditionally, lenders want to see 20% equity or at least 90% before even considering a refi. HARP is different. If your home has a Freddie or Fannie loan and you can find out by checking the websites, then you may well be able to refi. If your loan is 6% or 7%, you could refinance to 4.2% or 4.5%, potentially saving hundreds of dollars a month depending on the size of your loan.

HARP has been plagued by problems, too. Many are caused by the lenders themselves who obviously are very uncomfortable with the whole idea. Sometimes junior lienholders object, or private mortgage insurance [PMI] companies or home equity line creditors. If the home is a condo, the HOA may have a lien on the property. So, this is not a slam-dunk, but it is an option for some homeowners, particularly those just now sliding underwater.

FHA also has a wonderful refi program for those who already have an FHA loan. Called the FHA Short Refinance, this loan requires the lender to write down 10% of the existing loan. The homeowner, too, has requirments: the loan must be current. For homeowners who have lost their jobs, FHA offers still other programs.

Option 3. Short Sale.

This is the option when other options are exhausted. Since it’s the general subject of this blog, many posts discuss this option. What I do want to emphasize is–do not procrastinate! Don’t wait until the trustee sale is set for next week to call me. I can help you decide which option is right for you, but not with the sale staring us in the face.

Posted in Fannie mae, FHA, Freddie Mac, Freddie Mac short sale, HOA fees, loan mod, Pasadena short sale Pasadena broker, short sale, underwater mortgage | Tagged .Pasadena short sale agent, Fannie Mae, FHA Short Refi, Freddie Mac, HOA fees, loan mod, Pasadena broker, Pasadena home values, Pasadena short sale broker, short sale | 1 Comment

Pasadena Short Sale: SoCal Attorneys Shut Down In Mortgage Litigation Scams

Posted on August 25, 2011 by Diane Butler, Ph.D.

As if distressed Pasadena homeowners didn’t have enough problems, predatory local area attorneys, purportedly offering help, have bilked thousands of delinquent borrowers out of fees paid for loan modifications and mortgage litigation.Claiming to stop foreclosures and reduce monthly payments via loan mods, attorney’s false promises bilked about 2,500 Californians as well as residents of 16 other states out of thousands of dollars

Kamala Harris, California’s Attorney General, announced that she is suing four Southern California law firms, offices of Philip Kramer, Christopher Van Son, Paul W. Petersen and Mitchell Stein, which also has an office in Walnut Creek. Seeking civil penalties, the suit alleges false advertising and violations of the business and professions code.

The law firms and the clients of these accused law firms have been taken over by the California Bar Association. Since 2009, about 20 California attorneys have either been disbarred or have voluntarily given up their licenses as a result of loan mod scams.

What exactly was the con used by these attorneys to extort money from unsuspecting distressed homeowners? The attorneys banded together to file “mass joinder” lawsuits, which effectively folded cases with separate but similar circumstances into one legal filing. Then, using mass mailers and telemarketers in aggressive campaigns to draw in desperate homeowners, the materials gave the impression the cases were about to be settled and urged homeowners to join in quickly.

What was the catch? Unlike normal cases of this kind which typically operate on a contingency basis, these attorneys demanded upfront fees of $4,000 to $10,000 often urging homeowners to forego paying the mortgage and to pay them instead. If the purported service were a loan mod, collecting an upfront fee is illegal in California and has been for the last 2 years. Knowing this, greedy attorneys then switched to mortgage litigation, a last resort for homeowners who frequently get either no response or negative response in trying to negotiate with their banks.

So far, the Attorney General’s office has not made any statement about the legal standing of the suits against the banks filed by these attorneys.

Posted in loan litigation, loan mod, loan mod scam, loan modification, mortgage litigation, Pasadena loan mod, Pasadena short sale, Pasadena short sale Pasadena broker | Tagged loan mod, loan mod scams, mortgage litigation, mortgage litigation scam, Pasadena broker, Pasadena short sale broker | Leave a comment

Pasadena Short Sale: Homes Sales today

Posted on August 21, 2011 by Diane Butler, Ph.D.

With the stock market gyrating wildly and politicians throwing tantrums like toddlers, it makes sense that Americans are reluctant to open their pocketbooks. What will happen next? What crazy scheme will either the corporations or Washington impose on us next?

That’s the context for a look at home sales and home prices in the Pasadena area. Pasadena and surrounding areas are undoubtedly some of the most desirable real estate in L.A. County. Think of southwest Pasadena, Linda Vista, San Rafael, Hastings Ranch, San Marino, Arcadia, South Pasadena–these are only a few of the many, many wonderful neighborhoods in our area. Normally, people from all over are desperate to find homes in these places or close.

Pasadena is the biggest city and a city that just seems to be getting better and better. Old Town is a tremendous success as a retail, restaurant and all-around hip venue. Demolishing the old mall and putting up Paseo Colorado seems, in retrospect, an inspired idea. And, the oldies, but goldies keep on bringing us visitors and prestige. Not just the Rose Parade and the Rose Bowl, though restoring the park was also a great idea, but the Rose Bowl Flea Market and the PCC Flea Market, and PCC itself as well as CalTech are all adding to the luster of their neighborhoods. Everyone wants to live near these walkable places. Also, the Gold Line, already at the furthest limits of Pasadena and set to expand further east, makes life so much easier for those who live and work here. Extending the Gold Line into East LA and Little Tokyo makes for a remarkable ride. Pasadena is a world-class city and would be recognized as such were it not a satellite to the throbbing metropolis of Los Angeles.

So what’s the problem? Well, home prices are still diving in Pasadena, most parts of the city anyway. First the good news: ZIPs 91103 [includes San Rafael], 91106 [includes southwest Pasadena] are up substantially. 91103 with 13 sales is up 53.6% over last year for a median price of $665,000. 91106 is up 80% over last year, but with only 5 sales the median of $1,460,000 may well change radically next month. Pasadena’s remaining ZIPs, 91101 [a median of $680,000, almost meaningless as based on only one sale], 91104 which includes northeast Pasadena saw 30 sales, a good number, resulting in a median of $501,000, a slight drop over last year. 91105 saw 17 sales for a median of $900,00, respectable, but still almost 3% below last year. Lastly, 91007, northeast Pasadena had 21 sales with a median of $600,000, an 11% dip over last year. Clearly, even amazing and desirable Pasadena is still suffering from the housing crisis.

What about San Marino? Surely San Marino must be holding up. Even San Marino saw a dip of 11% over last year to a median of $1,338,000, based on the sale of 19 properties. That is scary when even San Marino, land of the all-cash buyer, is losing substantial value in just one year. What about Arcadia? Arcadia has some great neighborhoods. But, in 91006 on 27 sales Arcadia is down to a median of $709,000, 8% less than last year while 9117 is up a tiny bit to a median of $869,000 based on 15 sales. Still, not what sellers are looking for…Buyers, on the other hand, might be starting to get excited…

Alhambra lost value in all ZIPs to $410,000, $475,000 and $470,000 median respectively. Altadena is another ray of sunshine. Continuing its popularity among buyers, Altadena values increased by over 4% to a median of $470,000 based on 24 sales, so it’s solid. Altadena offers tremendous value in the area.

LaCanada and LaCrescenta both lost value, perhaps still a residue of the fires. LaCanada was down almost 9% to a median of $1,068,000 while LaCrescenta dropped almost 14% to a median of $570,000, both with many sales. Montrose, on the other hand, posted a gain, but, based on only one sale, it means nothing. Neighboring Glendale took terrible hits in every one of its 7 Zips, except for 91205, lowering values by double digits. Compared to Glendale, Pasadena can count itself lucky.

Rounding out the area, San Gabriel gained 10% in one ZIP [91775] to a median of $674,000 and lost in the other [91776] , down 5% to a median of $418,000. Temple City eked out a slight gain to a median of $559,000. So, not too bad there. Sierra Madre, a tony little town usually known for high prices, dropped almost 20% to a median of $633,000. And, last but not least, South Pasadena, also tiny, managed a jump of 17% over last year, based on 13 sales, to a median of $1,063,000. People still love South Pas.

So, what are we to make of all this? It seems clear the crisis continues, but some buyers are really, really smart or maybe lucky and are able to take advantage of both the incredibly low mortgage rates and the amazing prices for wonderful areas of Pasadena, South Pas, Arcadia, surrounding areas. The strong showing of Altadena shows to me that buyers are quite descriminating and well able to recognize a bargain when they see one. And, the declining values of neighboring Glendale does show that Pasadena’s well-deserved reputation as a solid, yet hip area has helped Pasadena homes retain their values.

Posted in California home values, L.A. County home values, Uncategorized | Tagged Pasadena broker, Pasadena home values | 1 Comment

Pasadena Short Sale: If Your Mortgage Is BofA

Posted on July 31, 2011 by Diane Butler, Ph.D.

Good news for those locals with B of A or Countrywide loans. At least it looks like good news. B of A representative are going to be in Los Angeles, Thursday through Saturday, August 4-6, 2011, meeting with homeowners face-to-face. As has been mentioned many times, B of A, of all the banks, is absolutely the worst to deal with. It’s the slowest, most bureaucratic, most infuriating, so this is a great opportunity, perhaps, to cut through the red tape and actually meet with someone with authority to actually do something about underwater loans.

This event will be held at the Los Angeles Convention Center on South Figueroa, Concourse Hall EF.Though it is not mentioned in the announcement published in the L.A. Times, the best idea is to bring your documents with you to the event so that, possibly, you can geet a decision on the spot. This would be a far cry from the usual year that banks like B of A usually take to come to a decision about a loan modification.

Documents to bring? Mortgage statement, financial statement, tax returns, last several months bank statements, last few pay stubs–any or all of these may be requested. The best idea is to call for an appointment at this event-855-201-7426 or online to http://www.bankofamerica.com/outreachevent to schedule an appointment.

For those unable to attend, call 800-846-2222 or go online to http://www.bankofamerica.com/homeloanhelp. Another event will take place in San Diego, the following Thursday through Saturday, August 11-13, 2011 at the San Diego Convention Center on West Harbor Drive and in San Francisco Thursday through Saturday, August 19-20, 2011 at the South San Francisco Conference Center on South Airport Boulevard.

Posted in loan mod, loan modification, Pasadena loan mod | Tagged BofA loan mod, loan mod | Leave a comment