Short Sales are proliferating and the good news is that they are working through the system at a much faster pace than they did 2 years ago.

Again, the definition of a "short sale" is when a homeowner decides that he no longer can make the payments on a mortgage which is collateralized by a home that is no longer worth what it was when the mortgage was made. When this happens, the homeowner works with his real estate professional to come up with a listing price that will sell the house. Once a buyer is procured, the seller/homeowner agrees to a contract with that buyer subject to approval from the mortgagor. 2 years ago, the waiting time for the response from mortgagee was anywhere from 6 months to a year. Now, the process has been streamlined and mortgagee acceptance can be accomplished in as little as 2 weeks.

One of the things that is making the "short sale" a viable exit for the underwater homeowner is the new State of California law ( in effect since July 15, 2011) prohibiting the mortgage lender from collecting a deficiency (the difference between the outstanding loan balance and the loan payoff received by the lender) or obtaining a deficiency judgment for a short sale involving a loan secured by a one-to-four residential unit property. This law applies to first trust deeds, second trust deeds and other junior trust deeds including equity lines of credit. Prior to this new law, short sale deficiencies were only prohibited on first deeds of trust.

Furthermore, the new law SB 458 (anti-deficiency law) for short sales applies to owner-occupied or non-owner occupied properties. Non-owner occupied properties include rental properties, vacant homes, second homes or vacation homes. This is definitely relevant in our area as there are many second home owners who are struggling with what to do about their properties that carry onerous mortgages. While not forced to accept a short sale contract, the bank that holds the mortgage who does accept the contract will be bound by this law.

So, the California Association of Realtors Legal Services, recaps the circumstances under which the California Anti-deficiency protection law applies for us here:

• Mortgage loan is solely secured by a deed of trust or mortgage;
• Mortgage loan is for a dwelling of not more than four units;
• Borrower sells the property for less than the outstanding loan balance;
• Lender provides written consent for the short sale;
• Title voluntarily transfer to a buyer by grant deed or other document of conveyance recorded in the county where the property is located; and
• Proceeds of the sale have been tendered to the lender or lender's agent in accordance with the parties' agreement.

There is nothing in this article however, that speaks to the sellers' tax liability for the forgiven, either Federal or State.

As always, we would strongly urge anyone considering this form of sale to consult their attorney and/or tax accountant before making any decision.

These great folks, Norm & Nadine Yenni from Sonoma's wine country looked at a lot of homes before settling on a beautiful vacation home in Prosser Lakeview Estates. We started last summer and worked right through last winter's ridiculous snowfall looking at homes - they sure got a taste of the High Sierra's four seasons! These two hard working people now have a home away from home to bring their dogs and relax.  Their son and college student, Andrew, is excited to bring his friends up and show off their new home if you know what we mean!! Have fun and enjoy your new home!

Truckee Parking Policy Changes   

Recently published in our local newspaper The Sierra Sun, there have been some changes to the Downtown Parking Policy.

Since its origination about 3 years ago, the paid parking in downtown Truckee has continued to be a contentious matter.  The tourists don't like it because it is confusing and expensive, the locals don't like it because they have never had to pay to park and now they are incensed by the requirement.  Downtown employees are stymied by the pay-to-park situation and how that affects their bottom line.  Well, over the past year, the town and the townspeople have been carrying on discussions and it seems that they have reached agreement on several new policies that will take effect on November 14, 2011.  They are as follows:

• 2 hours of free parking at the Beacon gas parking;
• free overnight parking at the Beacon parking lot (6pm to 10 am) -- awesome idea for those who find themselves having to take a taxi home after socializing;
• revised, easier to understand labels on the current parking meters;
• downtown will carry a flat rate of $1.50 per hour; Jibboom and West River Streets' flat rate will be $1.00 per hour;
• when using a credit card with the meter, there will no longer be the $2 mimimum;
•  no more parking at the Old Assumption Catholic Church lot;
• downtown employees will be allowed to park for free all day with free employer distributed permits.

According to the article in the Sierra Sun, these changes are temporary and will not become permanent until everyone is satisfied that they will work.

Sometimes when we need help, we just don't have the luxury of time to check with our friends for recommendations. Just such an experience happened to us last month. The electricity stopped working in one area of our house. None of the sockets were active. My husband checked the breaker box and everything seemed to be in order. He even changed out one of the circuit breakers thinking it might be bad. Nothing helped. The next morning I posted on Facebook that I was looking for an electrician who would be awake and able to help (it was 7 am). I got a response from a friend saying I should call Sverre Vandehei at Vandehei Electric. She told me that he was home right now and would show up right quick. Sure enough, he answered the call on the 2nd ring and said he would be out that afternoon. The problem was complicated, suffice it to say it was a dangerous situation. Saveri tracked down the problem and had it fixed in a matter of 2 hours and $185.

Call Vandehei Electric at 530 587-1389.

To our Clients, Friends & Family

We will take a break from our newsletter for the month of December and want to wish you all a very Happy Holiday Season. We're still here working so drop in to say hi if you're the area, otherwise you'll hear from us again in the New Year!

Wren Elizabeth Gifts is the latest creation of our good friend Melinda who works out of Truckee, CA. Her on-line home and gift store can be found at www.wrenelizabethgifts.com 
 She carries treasures to decorate your home for all of life's celebrations and holidays.
They have gifts and affordable home decor and orders over $100 ship free. Truckee/Tahoe locals add the code "pick up order" at check out to pick up their order at the warehouse.

 Melinda has a real knack for the homemakers.
  Go check it out and get a head of the game.  Lots and lots of Holiday Cheer here!!  Go ahead -- Deck the Halls.