Real Estate Update in Palo Alto & Los Altos

$2,755,000                           SqFt: 2,860

Review:

Property Features:

Open House Info: 
Sun  2/22  1:30-4:30  Yvette Stout 
 Open House Remarks: DO NOT MISS! Stunning single-level custom 2008 construction on a quiet cul-de-sac lot walking distance to town. Finest materials, soaring ceilings, a true chef’s kitchen, open family room, gorgeous master suite, a park-like backyard with fountain..
 
 
Listing Agent/Office Information:
Yvette Stout (DRE#01461495)
Alain Pinel Realtors  Pref Phone:                65…       ,  Email: ystout@apr.com
Pref Fax: 650-941-1411,  Off Ph:                65…       ,  ,  Off Fx: 650-941-1411 

Address                        Bed/Bath      Sq.Ft.       List Price          Sale Price           DOM

175 Galli Dr                  5/3                2773         $2,395,000      $2,438,000         7

692 Meadow ln            4/2.5             2194        $1,798,000       $1,770,000         15

423 Aroleda Dr            4/3                2574        $1,799,000       $1,610,000         117

1350 Fairway Dr         4/3                2265        $1,550,000      $1,500,000         63

1530 Tiptoe Ln            3/2                1807        $1,568,000       n/a                       46

1142 Lisa Ln                 3/2                1298        $1,290,000     $1,333,125            8

510 Outlook Dr            3/2                2250        $1,499,000     $1,310,000          65

1421 Ranchita Dr         3/1                1184         $1,199,000     $1,183,700           13

Q. I am in default on 12 jointly-owned properties that I am trying to liquidate as part of a divorce. All of my properties are currently worth less than the mortgage balances, due to the tough real estate market. I am aware that I will likely be taxed for the amount of the mortgage I had that is not satisfied by any particular short sale. It seems that this would not be the case if the house is foreclosed on, or becomes bank-owned.

This almost encourages homeowners to allow foreclosure, rather than to participate in helping to sell the property (when there is no equity left), because there is not “an amount forgiven” to be taxed on. I recognize that the benefit of short-sale is to lessen the effect on one’s credit report, but if a homeowner is already missing payments, how much worse will a foreclosure look?

A. Although you own an unusual number of homes, your dilemma in trying to choose between a short sale and a foreclosure is, sadly, not at all unusual these days. So I asked Craig Watts, public affairs manager of Fair Isaac Corporation in San Francisco, to comment on your case. Fair Isaac is the company that created the FICO score, used by lenders to assess borrowers’ creditworthiness.

Mr. Watts said that the company assesses every negative on a credit report by three factors: recency (how recently did the negative event occur), severity (how late is the payment) and frequency (how many times you’ve been reported delinquent on credit obligations).

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A recent bankruptcy does the most damage to your score. Mr. Watts adds that if lenders are reporting all of your mortgages as in default, the damage to your FICO score would be akin to declaring bankruptcy on all 12 accounts. For more information on credit scores and how they are calculated, visit the “credit education center” at www.myfico.com.

Although a short sale, where the lender agrees to take less than owed on the mortgage, will drop your FICO score as much as a foreclosure will, there is one advantage to it: You may be eligible to buy a home with an institutional loan backed by Fannie Mae or Freddie Mac more quickly than you would if it went into foreclosure.

Lenders encourage short sales over foreclosures because they generally net more from them, since foreclosures incur additional marketing, legal, processing and carrying costs. (For details, see Fannie Mae’s announcement 0-82.) Borrowers can be considered for loans following a short sale aftter 24 months, if the sale was caused by extenuating circumstances outside of a borrowers’ control, or 48 months if it was the result of financial mismanagement on the borrower’s part, according to Freddie Mac public relations director Brad German.

As for your tax situation: because of the Mortgage Forgiveness Debt Relief Act of 2007 and the recently passed Emergency Economic Stabilization Act, you can exclude up to $2 million of income ($1 million if married filing separately) from debt that’s discharged through mortgage restructuring, or that’s forgiven in connection with foreclosure, for the years 2007 through 2012. The exclusion must be connected with a decline in the home’s value or the taxpayer’s financial condition, and only applies to a principal residence, not investment properties. You can claim relief on your principal residence through IRS form 982. However, Mike Martin, a financial consultant and tax advisor in Independence, Mo., notes that there may be other provisions in the law that can help you: For instance, if you are insolvent when your debt is cancelled, some or all of that debt may not be taxable.

Given the complexity of your situation, please don’t try to resolve this situation on your own: Seek professional tax and legal advice.

$ 1,649,000                       SqFt: 1,868

Review:

Wonderful creekside property tucked away on a private cul-de-sac in one of Los Altos most desirable neighborhoods. Lot is bordered on back and right side by a creek. Blocks to town. Sold “AS IS”.
Wonderful creekside property tucked away on a private cul-de-sac in one of Los Altos most disirable neighborhoods. Lot is almost 18,000 square feet. Lost is bordered on back and right side by a creek and mature oak trees. Priced at lot value the home needs some work. Sewer is on its way and has been voted in. The home features 2 fireplaces and an indoor BBQ. Huge brick is perfect for entertaining. Plenty of room for vegetable gardens etc. Blocks to downtown Los Altos. Sold in “AS IS” condition. Have all the reports.

Location:     Google map

Property Features:

Open House Info:
Sat  9/20  1:30-4:30  Barbara Cannon 
Sun  9/21  1:30-4:30  Barbara Cannon 
 Open House Remarks: Wonderful ranch style home tucked away on a cul-de-sac blocks to town. Huge lot.
 
 
Listing Agent/Office Information:
Barbara Cannon (DRE#00992429)
Coldwell Banker-Los Altos First Street  Pref Phone: 650-947-2211,  Email: barbara.cannon@cbnorcal.com
Pref Fax: 650-948-3749,  Off Ph: 650-948-0456,  ,  Off Fx: 650-948-3749 
 
 
 
 

$1,795,000                            SqFt: 2,237

Remarks:
Old Los Altos, updated craftsman, 3/3 with stunning master suite. The original gate house for one of the neighborhood mansions of old. Lots and lots of original detail, built ins. Large Living room. Chef’s kitchen with stainless steel appliances, cherry cabinets and granite counters. Master Suite has skylights everywhere! Sleep in the trees! Guest cottage, large studio with full bath and kitchen. Wrap around brick patio with several sitting areas, great for entertaining, and mature plantings. Wysteria! Bougainvillea! Barbeque area, large spa, 2 car garage and workshop. lots of storage and parking. Side yard perfect for outdoor dog area.

Property Features:

Open House Info:
Sun  9/14  1:30-4:30  Leslie Pappas 
Sun  9/21  1:30-4:30  Leslie Pappas 
 
Listing Agent/Office Information:
Leslie Pappas (DRE#01347120)
Coldwell Banker-PA Downtown  Pref Phone: 650-752-0718,  Email: Leslie@LesliePappas.com
Pref Fax: 650-322-3606,  Off Ph: 650-325-6161,  http://www.LesliePappas.com,  Off Fx: 650-322-3606