You are selling your home. Not your house - your home!

You have lived in it for most of your adult life. You raised your children here. You celebrated anniversaries, birthdays and holidays here. Your grandchildren had sleepovers here. The family dog died here and you cried together at the burial ceremony in the back yard. The memories are endless.

You worked hard and have been rewarded. You have no mortgage and will pay cash for your new "downsized" home a few miles away.

Your real estate agent has brought you a potential buyer, a young couple with two small children. They love your home and visualize themselves living in it. They want to buy it. But, there is a problem.

They can't get a bank loan.

Like many folks today, they have a few glitches here and there that persuades their lender to say No. Nothing catastrophic. They are focused and on the right path. Your mind races as you filter information. This couple reminds you of yourself and your wife - way back when. They seem grounded and motivated. You like them. You don't need the cash from the sale. An income stream would be nice. If the couple's world fell apart and they could not make payments to you, you would try to work something out with them. If that option was impossible and you were forced to foreclose, you have some comfort because you know everything there is to know about the home and the neighborhood. Plus, you will be living nearby.

You tell the realtor you will step in and take the place of the bank. You work out terms that are very protective to you, while at the same time are fair and commit your buyer. You shake hands and the couple are estatic.

A short time later, both of you move into your new homes. Then, an invitation arrives to attend their housewarming party. You happily accept, and a new life with new friends begins. Two homes are sold, and seller financing filled the void, allowing the cycle of commerce and the purchase of a home to play a small role in boosting our sagging economy.

 "I've done a lot of stupid things in my life. I have a PhD in D_U_M_B."... Dave Ramsey, Financial Author.

According to real estate research firm DataQuick, the Southern California housing market "is perceived as having turned a corner." The median sales price is up 16.7% from October 2011 to October 2012, settling in at $315,000. We - I live in Southern California - hit bottom in April 2009 at $247,000. It's been a slow crawl after a precipitious fall. Orange County has the highest median price at $455,000 with San Bernardino County the lowest at $170,000. Quite a spread! How you feel about prices today may depend to a large degree what county you live in.

 All real estate is still local.

"A ship in port is safe; but that is not what ships are built for. Sail out to sea and do new things."... Admiral Grace Hopper.

Remember the home Michael Jackson was living in at the time of his death in 2009?  He was leasing it for $100,000 a month. Before he moved in, the mansion was for sale with an initial asking price of $38.5 million. It was recently priced at $23.9 million and just sold for $18.1 million.

Please remember these numbers when we discuss the discount on your note !!!!!!!

Read my weekly Blog at www.CaliforniaNoteBuyerLLC.com.

I still see poorly structured notes - no downpayment, low interest rate, interest only payments, etc. However, I am also seeing a surge in notes that are protective of the seller - strong downpayment, high interest rate, ballon date 7-10 years down the road, knowing the background of the buyer, etc. Remember, whether you intend to keep your note or sell it, you must protect yourself as a seller and construct terms that protect your downside and ensure you have a commited buyer. Read thru past issues of this Newsletter or call me BEFORE you negotiate your next note.

Happy Holiday!

 Sincerely,

Denny Stanz

CA Broker # 01915404

760-245-5366
760-245-5367 fax
dennystanz@verizon.net
www.CaliforniaNoteBuyerLLC.com