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WELCOME TO GRYPHEN REAL ESTATE
Wheather you are a first time home buyer, investor or just buying your second home, are professional staff will help guide you to your personal goals. If you are looking for straight answers to your real estate questions, you have found the right place. At Gryphen Real Estate are mission is to give the service to our clients that "We" would want to recieve. Honest people, honest answers... Integrity, Reliability and Strength.
NEED HELP FINDING A HOME?
When it comes to finding a home, Gryphen Real Estate is always here to help. We proudly serve homeowners in San Bernardino, Orange, Riverside and Los Angeles Counties. Contact Us Today. Call our office at: (800) 680-1146
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Justin Khoury
At the young age of 25, Justin has become a high achiever currently running 4 businesses on his own. A Beauty Salon, Postal Business, Computer Repair Shop & Notary Services. Now in the Real Estate field, he’s using his experience and connections with the community to build his Real Estate career. In Alta Loma, Justin is known for his warm customer relations & a helping hand.
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Buying Advice (Cont.)
Aid for First-Time Home Buyers
First-time home buyers who purchase a primary residence between January 1, 2009 and December 1, 2009, may be eligible for a tax credit up to $8,000 2 or 10% of the purchase price, whichever is less.
For more information, visit: http://www.federalhousingtaxcredit.com
Is Now The Right Time For
Your New Home?
Most potential Home buyer’s first question is “What’s the first step’? The best way to start is to work with a professional that can tailor a program that fits your current needs and your future goals. Depending if you are single, married, investor etc there are many benefits of owning a home. A Gryphen Real Estate Sales Professional can help you understand the opportunities in your local real estate
market as you take that important step in your home purchase . A Gryphen Real Estate Agent can help whether
you’re buying or selling a home.
When Buying a Home
There are a few general rules of thumb that a
Gryphen Real Estate Agent can guide you through.
Eliminating your fear, uncertainty and doubt is
clearly one of our primary goals.
• Begin your home search process by eliminating what type of homes you do not want. Look at all styles and sizes of homes. Shopping online is a great way to help determine what your ‘ideal’ home is. We make it easy Click on “View local listings in your area” on our home page.” Once you have selected a list of homes you would like to see, give us a call or send us an email to view your selected listings.
• Figure out how much home you can afford. Determine whether this purchase will be for a ‘starter’ or ‘long-term’ home’? This will help determine what type of mortgage is best suited for your needs. Your Gryphen Real Estate Sales Professional will provide you with the information you need to make an educated decision. Mortgage interest rates are low right now, indicating it’s truly a great time to buy!
When Selling a Home
A Gryphen Real Estate Sales Professional will analyze the current market conditions, recent sales, and expired listings to give you a realistic assessment of your home’s value and recommend some proven strategies for preparing your home for sale.
What’s Right For You?
Working with a Gryphen Real Estate Sales Professional can
help you navigate today’s market. Are you dreaming about buying or selling a home? We believe that the dynamics of the market today actually benefit consumers in ways that inflated housing market of a couple years ago did not. Finding the right real estate agent can make you a savvy consumer and improve your overall experience. You will enjoy working with a well rounded agent that know the ropes at Gryphen Real Estate!
Here’s why a Gryphen Real Estate agent is right for you:
Speed, Reliability, Integrity
• Gryphen Real Estate has the local knowledge of neighborhoods, schools, market conditions, ordinances
• Technology gives us an edge - you’ll enjoy the resources available on Gryphenrealestate.com
• We are ready and able to make a full-time commitment to your goal
• As Real Estate Professionals we can help identify mortgage Specialists and have current relationships with mortgage specialists who can assist you with your financing.
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Selling Advice (Cont.)
Four Simple Rules
1. Location: You can't get away from this one. If your house is located in a desirable area that is in demand, you will be able to get a higher price than you can for the same house in a less desirable area.
2. Condition: A house that has been better maintained and shows better will always sell for more than one that has had deferred (neglected) maintenance and needs work. |
3. Desirable amenities: If a house has amenities that are currently popular in the marketplace, it will bring a higher price.
4. Calculate the price per square foot: The average price per square foot for homes in your neighborhood shouldn't be the sole determinant of the asking price for your home, but it can be a useful starting point. Keep in mind that various methodologies can be used to calculate square footage. |
A formal written appraisal can be useful if you have unique property, if there hasn't been much activity in your area recently, if co-owners disagree about price, or if there is any other circumstance that makes it difficult to put a value on your home. Appraisers consider the location of the home, its proximity to desirable schools and other public facilities, the size of the lot, the size and condition of the home itself and recent sales prices of comparable properties, among other factors.
About listing agreements
The common top three listing agreement choices are:
1) Open Listing
2) Exclusive Agency Listing
3) Exclusive Right-to-Sell Listing
The best choice for you will depend on your willingness and ability to tackle some of the home selling duties and the local real estate market climate.
Open Listing
An open listing lets an owner sell her home by herself. It is a non-exclusive agreement, meaning the owner may execute open listings with more than one real estate broker and pay only the broker who brings an able buyer whose offer the owner accepts.
Exclusive Agency Listing
An exclusive agency listing is similar to an open listing except the major difference is the agent will represent the owner. The owner still reserves the right to sell the property herself and not pay a commission. The broker is free to cooperate with another brokerage, meaning the second brokerage could bring an able buyer whose offer the owner accepts. Typically, the broker is paid a listing commission that is shared with the selling broker, so the owner pays both fees.
• Exclusive Right-to-Sell Listing
An exclusive right-to-sell listing is the most commonly utilized instrument. It gives the broker the exclusive right to earn a commission by representing the owner and bringing a buyer, either through another brokerage or directly. The owner pays both the listing and selling broker fees. The owner cannot sell the property herself without paying a commission, unless an exception is noted in the contract.
Exclusive Right to Sell
An exclusive right-to-sell listing is the most commonly utilized instrument. It gives the broker the exclusive right to earn a commission by representing the owner and bringing a buyer, either through another brokerage or directly. The owner pays both the listing and selling broker fees. The owner cannot sell the property herself without paying a commission, unless an exception is noted in the contract.
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Foreclosure vs. Short Sale
ISSUE |
FORECLOSURE |
SHORT SALE |
| How Will I Be
Affected When
Applying For
Future Loans? |
Foreclosure will likely impact you for a minimum of 7 years. You will be required to disclose that you have been Foreclosed upon when completing the application for future mortgage(s); and it will reflect in both eligibility and interest rate. |
A Successful Short Sale means that you avoided Foreclosure. Therefore, your credit should not be affected. In turn, you will never need to worry about disclosure. |
| How Will My Credit Score Be Affected? |
A Foreclosure on your credit report will have a significant impact on your credit score that will likely take numerous years to recover from. |
Remember: A Short Sale is the lesser of the two evils. Your credit score will be reduced depending on how it is reported by the lender (which may be a negotiable item). On the up side, you will likely require less time to pass to re-cover from the impacted score; and you will be able to re-enter the purchase market in 1 to 2 years (depending on individual circum-stances). |
| How Will It Affect My Credit History? |
A Foreclosure remains a public record and can impact your credit report for 7 years and in some cases as many as 10 years. |
The Lender will typically report as "Paid in Full", "Paid Settled", or "Paid For Less Than Agreed". The actual words "Short Sale" do not appear on your credit report. |
| Can Employment
Background Checks (Security Clearance) Be Affected? |
Many potential employers conduct and/or require security background checks. A Foreclosure on record could result in a revoke or denial; which could (in turn) impact your status. |
A Short Sale should have less of an impact on security clearance. |
| How Can This Affect My Current Employment? |
Employers have the right to conduct credit checks with their employees. Should an employer have a sensitive situation, they may be forced to reassign or terminate. |
A Short Sale should not have an effect on current employment. |
| How Can This Affect
Future Employment? |
Required credit checks are common practice of potential employers. A Foreclosure on an applicant's record could prove detrimental in their consideration process. |
A Short Sale should not have affect on future employment. |
| Deficiency Judgment |
The lender may be permitted to seek a deficiency judgment against you - depending on the character of the loan that is Foreclosed upon. |
A Short Sale transaction can include negotiations with your lender to fully discharge the loan at the time of sale. |
| How Will This
Affect Taxes? |
When there is a Foreclosure, by law, the lenders are required to file a Form 1099A. Under these circumstances
you ''may' have to report as income for tax filing purposes.
It's always recommended that you consult your tax specialist to fully understand the tax implications associated with Foreclosure. |
In the Short Sale scenario, lenders
are required by law to file Form 1099C; which you 'may' have to report as income for tax filing purposes.
It's always recommended that you consult your tax specialist to fully understand the tax implications associated with Short Sale transactions. |
What is a Short Sale?
We always have the homeowners best interest as our #1 focus.
A Short Sale is a sale of Real Estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property owner. In a Short Sale, the bank or the mortgage lending institution agrees to discount a loan balance due to financial hardship on the part of the borrower.
The Short Sale Process
A Short Sale transaction is similar in many ways to a standard Real Estate Transaction when viewing the process on paper. In reality, the intervention with the bank or lender requires a few extra critical steps. State law also governs the activities of those who act on behalf of property owners who are facing Foreclosure, therefore it is essential to understand the process from start to finish prior to making your decision.
Here is the process:
- Seller contacts us for consultation.
- Pull comps and property profile to determine quick estimate of value and mortgage debt.
- If short sale is viable, full BPO done to determine value/sales price range.
- Seller signs listing agreement and provides mortgage payment coupons.
- Seller assembles short sale package documentation including hardship and authorization letters.
- Property is listed in the MLS.
- Price may need to be adjusted until an acceptable offer is received.
- Once acceptable offer is received, the purchase agreement is signed by the seller thereby accepting the offer � escrow may be opened at this point.
- The short sale package and purchase agreement are submitted to the bank / lender.
- Once negotiator is assigned, discussion of the short sale with the bank/lender begins.
- If short sale is approved, terms are relayed to all parties.
- Buyer satisfies financing requirements.
- Escrow closes.
Short Sale Documentation
We will need to be prepared with the following information:
- Are you in Bankruptcy? (Reason: The court and Bankruptcy Trustee must agree to the sale).
- What is the current loan balance; type of loan; interest rate; impound account information; and other loan detail?
- Are there any past due payments?
- Has a Notice of Default (NOD) or Notice of Trustee's Sale been recorded?
- Are there any other liens, judgments and/or taxes?
Typical Documentation Required For a Short Sale Package
1. Letter of Authorization
The bank or lender will require a letter from the Seller to permit the listing agent/broker to speak on their behalf and represent them in negotiations. It is also advisable to provide the Listing Agreement between Broker/Agent and Seller.
2. Hardship Letter
The Seller is required to explain (in writing) why they are requesting a Short Sale. Reasonable hardship needs to be established to show that your ability to continue paying the monthly mortgage payment(s) has been impacted.
3. Purchase Agreement
The bank or lender requires an executed contract between Buyer and Seller contingent upon acceptance of the Short Sale. Similar to more standard Seller transactions, the bank and lender will require documentation to support the Buyer is qualified with acceptable credit scoring (FICO), Lenders Approval, and Proof of Funds (Verification of Deposit) for down payment.
4. Estimated Settlement Statement (HUD-1)
The bank or lender requires a line item detail of all expenses incurred prior to and/or after the sale. The Escrow Company utilized in the transaction will provide this information.
5. Sellers Financial Information
Similar to when you originally qualified for your loan to purchase this home, the bank or lender will require submission of bank statements, investments, paycheck stubs, etc. It will be determined form their examination if you're circumstances are compelling enough to warrant a Short Sale.
The major differences between a loan modification and a short sale:
In a successful Loan Modification, you retain your home; whereas in a successful Short Sale, you will move upon the close of escrow. It's vitally important to understand that the bank or mortgage lending institution can deny both. With this understanding, watch for brokers and/or attorneys claiming that they have inside connections with the decision makers. These individuals / entities should be reported to the California Department of Real Estate (DRE) and/or The State of California Bar Association.
Both the Short Sale and Loan Modification will affect your credit report and credit score. In most cases, individuals seeking Loan Modification are required to be delinquent on their mortgage - which in itself will affect credit scoring significantly. Both options require proof of financial hardship - which is often enough a delinquent mortgage.
We strongly advocate the Short Sale transaction and will likely not advocate Loan Modification services until such time that banks and lenders are routinely (significantly) reducing principal balance and interest rate. Your individual circumstances will dictate the best possible direction.
For many who purchased at the height of the market, it will be a great challenge to maintain their mortgage payment - with or without a reduction in their monthly payment. Real estate values will eventually stabilize and homeowners will eventually return to an equity position. However, that could take a significant amount of time.
A successful Short Sale will cost $0.00. The effects on your credit will likely be more harsh than from Loan Modification - but nowhere nearly as bad as if you sat on your hands and allowed a foreclosure to occur. With the shrinking credit industry, it is more mindful than ever to protect your credit report and credit score.
What Are The Benefits of a Short Sale?
● Absolutely NO FEES or cost to you. In cases where there is 2nd trust deeds, fees and/or costs may occur.
● Can get you out from under a major debt that you cannot currently afford - with no future recourse.
● Allows you to stay in your home longer and gives you more control over your ‘move out’ date.
● Not nearly as harsh on your credit report as a Foreclosure - In fact, may allow you to purchase new home within 2 years.
● Judgments, liens and other deficiency amounts may be negotiated while in escrow (including IRS and franchise tax liens).
Unfortunately, there is no magic RESET button that we can just push to make things go back to the way they once were. In reality, the RESET button (or Short Sale transaction) is a meticulous manual process that can (if completed successfully) alleviate your major financial burden. It's a 'best case scenario' solution that will not likely be cut and dry. And, it can and will likely create some new (more manageable) financial and/or credit related burdens / obligations. In the end, a successful Short Sale will end one negative situation and RESET your financial positioning for future real estate ownership.
Unless the bank or lender significantly reduces principal balance and simultaneously provides suitable (new) loan terms, Loan Modification as a workable solution may prove to be a temporary solution at best.
Don’t believe anyone that claims they have resources and contacts with decision makers at banks to get your Short Sale completed. The simple truth is that the banks and lenders are inundated with tens of thousands of requests each day. They are overwhelmed and understaffed. This in itself is one of the major risks in pursuing Loan Modification. Success occurs through organization, persistence, and the balanced knowledge of being both lender and real estate entity.
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| Short Sale Time Line |
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This is a question that comes up often as you can well imagine. Unfortunately, the answer will sound a bit vague... but, it is accurate; and it is one that you may not see when visiting other 'Short Sale' service related websites. Sadly, it's quite possible that you will be told what you want to hear vs. what you need to hear.
Displaying the FLOW of a Short Sale is straight forward and this page will address this further down. The primary issue to be addressed is "How long will a Short Sale take?". The answer is:
- Every transaction is predicated on the individual circumstances of the homeowner;
- Some homeowners may have the necessity to move from the subject property quickly; whereas others may want to have a negotiated 'moving date' further along.
- Every transaction is predicated on the marching orders of the bank/lender;
- Better negotiators will drive better negotiated results (this is key)
- Every transaction requires a Selling Agent that understands the above bullet points;
- Common mistakes will occur when the Selling Agent doesn't understand and/or convey to the homeowners what all is transpiring throughout the process.
- Every transaction requires a Buying Agent that understands their role;
- The Buying Agent must convey to the Buyers that they are engaged in the purchase of a Short Sale. If the Buyers are looking for a quick (or even normal) escrow, it's quite possible that this deal will fall through and the Buyers will move on to another property.
- Every transaction requires a willing 'Buyer' that understands their role.
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On average, it's realistic to anticipate 100 days for a Short Sale transaction to close (from start to finish). Yes, they can close faster... and, yes, they can take longer. In either direction, the above bullet points will directly impact the outcome.
Loan Modification Assistance Program
We will give you are time and explan the process of a Loan Modification to you. We will provvide a list of requested documentation for your loan modification. Every lender is different but most items required are standard across the board. We will be here to answer any questions during the process, as you the home owner deal direct with the bank.
Moving Assistance Program
We have a unique program for home owners that will be displaced after the short sale of their home. On a case by case basis we will donate a portion of Gryphen Real Estates Broker commission to the displaced home owner. Set up a appointment for more details. |
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Leave a Message
We've made it easy, just fill out the form to the right the best you can and we will email or call you back with a response within 1 business day. |
We proudly serve Rancho Cucamonga, Upland, Claremont, Ontario, Chino, Covina, Azusa, Glendora, San Dimas, Huntington Beach, Fontana and other cities all over Southern California.
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