EUREKA, CA - Dean recently attended a presentation by California Association of Realtors counsel, Mr SANJAY WAGLE. The presentation covered the legal nuances of home mortgages in default, short sales, foreclosures, auctions, and bank owned properties (REO's). It was clear these types of real estate transactions are not your typical home sale. These transactions have the potential for continued financial distress for our clients if not facilitated properly.

Highlights included discussions about;

a) Recourse and non-recourse loans. Some lenders may still have the ability to pursue the borrower for a deficiency judgement even after a short sale, deed-in-lieu, or foreclosure.

b) State and federal tax liabilities for the distressed home owner on debt that is forgiven, either thru a short sale, deed-in-lieu, or foreclosure.

c) Possession rights for displaced homeowners and tenants for a property sold at auction.

d) The federal government's guidelines to lenders for distressed homeowners to participate in the Home Affordable Modification Program (HAMP) and Home Affordable Foreclosure Alternative (HAFA) programs.

WAGLE shared with Dean that he consults with many Realtors from around California on a daily basis about far ranging legal issues surrounding real estate transactions. Yet he went onto state that over 90% of his consultations are providing counsel to Realtors in their execution of a short sale transaction.

WAGLE's visit to Eureka was a valuable opportunity for Realtor's and distressed homeowners. Although not as hard hit as many areas of California it is still important for Eureka, Arcata, Fortuna and McKinleyville area homeowners to benefit from Realtor's informed in the unique aspects of distressed home sales. 

I agree, and that is why I vigorously pursue every opportunity to learn the most up to date information around short sales. A distressed homeowners financial future is an important responsibility.