Welcome page Credit After Foreclosure, Bankruptcy, or Short Sale Contact Joanne Services  About Joanne  Contact Joanne Testimonials Buying Real Estate Selling Real Estate Credit and Finance Price Calculator Loan Calculator Reverse Mortgages Real Estate News Architecture Styles Home Improvements Mobile Home Living Capital Gains Tax HVAC Duct Law Property Tax Savings FIRPTA Law Proposition 8 Decline in Value Why Use a Realtor® What is e-PRO? Real Estate Glossary          An increasing number of homeowners faced with foreclosure feel forced to leave their pets behind.  In an effort to help these innocent family pets, "No Paws Left Behind" was formed. This is a 501c3 non-profit organization dedicated to bringing awareness to, and finding loving foster care for pets.  Click here for more information or to donate   California Foreclosure Process Chart  Want to buy a bank owned property?   Good Information  Before throwing in the towel,  homeowners owe it to themselves to try to avoid the long-term repercussions caused by going through a foreclosure. Debt Relief  Tips for Avoiding Foreclosure  Housing counseling agencies offer guidance on homebuying, renting, reverse mortgages and default and foreclosure prevention.  HUD Approved Housing Counseling Agencies in California   Find HUD Approved Services in any of the United States  Call or email Joanne for a confidential meeting.        Are you a risk-taker? Here are some thoughts on the subject from some of history’s biggest risk takers "There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction." - John F. Kennedy (1917 - 1963) "And the day came when the risk to remain tight in a bud was more painful than the risk it took to blossom." - Anais Nin (1903 - 1977) "I guess what I'm trying to say is, I don't think you can measure life in terms of years. I think longevity doesn't necessarily have anything to do with happiness. I mean happiness comes from facing challenges and going out on a limb and taking risks. If you're not willing to take a risk for something you really care about, you might as well be dead."  - Diane Frolov and Andrew Schneider, (Northern Exposure, Northern Lights, 1993) "Life is a risk." - Diane Von Furstenberg "If you don't risk anything you risk even more." - Erica Jong "Take calculated risks. That is quite different from being rash." - George S. Patton (1885 - 1945) "First weigh the considerations, then take the risks." - Helmuth von Moltke (1800 - 1891) "Great deeds are usually wrought at great risks." - Herodotus (484 BC - 430 BC), The Histories of Herodotus "The policy of being too cautious is the greatest risk of all." - Jawaharlal Nehru (1889 - 1964) "What you risk reveals what you value." - Jeanette Winterson "Be wary of the man who urges an action in which he himself incurs no risk." - Joaquin Setanti "If you're never scared or embarrassed or hurt, it means you never take any chances." - Julia Sorel "Risk! Risk anything! Care no more for the opinions of others, for those voices. Do the hardest thing on earth for you. Act for yourself. Face the truth." - Katherine Mansfield (1888 - 1923) "I don't think about risks much. I just do what I want to do. If you gotta go, you gotta go." - Lillian Carter "In order for people to be happy, sometimes they have to take risks. It's true these risks can put them in danger of being hurt." - Meg Cabot, (The Boy Next Door, 2002) "It seems to me that people have vast potential. Most people can do extraordinary things if they have the confidence or take the risks. Yet most people don't. They sit in front of the telly and treat life as if it goes on forever." - Philip Adams "To win without risk is to triumph without glory." - Pierre Corneille (1606 - 1684), 'The Cid,' 1636 "The universe will reward you for taking risks on its behalf." - Shakti Gawain "Our lives improve only when we take chances - and the first and most difficult risk we can take is to be honest with ourselves."  - Walter Anderson Reprinted from RisMedia     Buyer/Seller Information, printable. Home Seller's Guide: printable. Provided by The Move Advocate™  The Move Advocate is an exciting new FREE service offered to National Association of Realtors® customers.   The Move Advocate provides a dedicated resource to help research, plan and complete a successful move. Through the Move Advocate™, customers receive FREE access to professional trained staff, special rates and discounts on moving services, on-line relocation moving information and more!  Read what a client had to say about his experience with The Move Advocate Moving a Wine Celler? Do it the right way!  Click Here     Change your address  Change your at the online Post Office. You can also connect utilities, move your magazines, or send your new email address to your friends. Before you move donate things you don't need anymore. Locate the closest Goodwill Donation Center Arrange a goods or cash donation to Salvation Army Western United States Moving.com  This site compiles resources, from packing to finding a mover, making relocation simpler.   Relocation Essentials offers a complete set of tools to help in moving and relocation. Homefair.com is where homebuyers and homesellers can research their moves. Moving Guide   Movers - Bay Area -Free quotes from Bay Area movers. Movers - Local and national movers, compare and save.

After foreclosure: How long until you can buy again? Financing a home after foreclosure is possible for most homeowners.  Those who default on their mortgages due to economic hardships, such as job loss, may receive approval for another mortgage in as little as two years, while it may take more than seven years for strategic defaulters to be approved.   MAKING SENSE OF THE STORY FOR CONSUMERS Lenders utilize several methods in determining whether to grant mortgages, including the amount of money borrowers have saved; employment histories; and payment history. According to the chief economist with the Mortgage Bankers Association, lenders may be more willing to finance a mortgage for a borrower who defaulted on their mortgage as a result of factors beyond their control. Some homeowners who strategically default—intentionally not meet their mortgage obligations although they have the financial means to do so—assume they can raise their FICO scores by paying their others bills on time.  However, most future loan underwriters will scrutinize their records very closely, and if they determine the borrower strategically defaulted on their previous mortgage, the repaired credit score will not overshadow the walkaway. Although not impossible for strategic defaulters to finance another home purchase, it likely will be more difficult.  Lenders may ask for down payments of 30 percent or more to provide sufficient collateral to enable the bank to recoup most of its money in a foreclosure.  These borrowers also may be charged higher interest rates, even above the levels other borrowers with similar credit scores would receive. To read the full story, please click here. Understanding Foreclosures, Short Sales, and Bank Owned Properties (REOs) The intent of this page is to educate sellers  and buyers to make better decisions and not become overwhelmed. Remember, knowledge is powerful. Short sales and sales of bank owned properties are non-traditional transactions. The rules are quite different than when selling or buying a home from an individual whose loan is in good standing.  For example, in traditional sales California buyers have recourse through the courts and through arbitration for resolution when sellers are individuals voluntarily selling their homes.  In most cases buyers do not have any recourse when buying a foreclosure, short sale, or Bank Owned (REO) property as most sales are strictly "As Is Without Recourse."  For sellers there are credit issues: Credit After Foreclosure, Bankruptcy, or Short Sale also see the I.R.S. ruling on Home Foreclosure and Debt Cancellation  For information on buying or selling homes around the San Francisco Bay area, please contact me at 510-429-4800 or send me a note on the  form. Note: Information provided herein is deemed reliable but is not guaranteed.  Consult an attorney or tax professional before making any decisions.  Thanks to Joanne I Bought a Bank Owned Property (REO)... I have worked with other realtors thru-out the years - and in my opinion, Joanne Gardiner is one of the most informed about all aspects of selling or purchasing a home. She is a walking encyclopedia about all regions of the Bay Area for all types of housing, be it traditional, condos & townhouses or Manufactured Housing. Her website is an outstanding resource for informative and helpful information. In acting as my agent, Joanne made sure to only show me housing located in safe, desirable neighborhoods.......my safety and satisfaction were more important to her than a quick sale and commission. Additionally, after my offer had been accepted on a unit, she stayed in constant contact with the seller (a bank) my lender and the title company and had answers before I even thought to ask the question! If you are looking for a Realtor who is experienced, knowledgeable, dependable and trustworthy - then you're looking for Joanne Gardiner. Livia Hillery (very satisfied Client) June 10, 2009 Treasury Department Details Foreclosure Alternatives Program:  According to NAR, on Monday, Nov. 30, the U.S. Treasury Department released guidelines and details about the Home Affordable Foreclosure Alternatives Program (HAFA), which is part of the Home Affordable Modification Program (HAMP). NAR reported that HAFA provides incentives to avoid foreclosure on a loan eligible for modification under the HAMP program. HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac.  Please click here for the press release about the HAMP update.   California Foreclosure Prevention Act Goes Into Effect June 15th On February 20, 2009, Governor Schwarzenegger signed ABX2 7 and SBX2 7, the "California Foreclosure Prevention Act" which modifies the foreclosure process to provide additional time for borrowers to work out loan modifications while providing an exemption for mortgage loan servicers that have implemented a comprehensive loan modification program. Civil Code Section 2923.52 requires an additional 90-day period beyond the period already provided before a Notice of Sale can be given in order to allow all parties to pursue a loan modification to prevent foreclosure of loans meeting certain criteria identified in that section. A mortgage loan servicer who has implemented a comprehensive loan modification program may file an application for exemption from the provisions of Civil Code Section 2923.52. Approval of this application provides the mortgage loan servicer an exemption from the additional 90-day period before filing the Notice of Sale when foreclosing on real property as designated by this Section. Below is a timeline for the adoption of regulations under this new law. The new law will be operative 14 days after the issuance of regulations. As set forth in this timeline, the anticipated operative date of the law was June 15, 2009. The Application for Order of Exemption from Civil Code Sction 2923.52(a) California Foreclosure Prevention Act  is available on the DOC website.  Real estate licensees may file this application with the DRE at the following address: Foreclosure Exemptions - Department of Real Estate P.O. Box 187007 Sacramento, CA  95818-7007 Applications may also be submitted by e-mail to foreclosures@dre.ca.gov. Are foreclosures, deeds in lieu of foreclosure, and short sales subject to federal tax income taxation? This and other answers are in our new paper: Taxation of Foreclosures, Short Sales, etc. SB 1055  Conforms California  income tax law with federal law as to mortgage debt forgiveness (eff. 9/25/08) California law, SB 1055, conforms California Revenue and Tax Code Section 17144.5 with federal law, the Mortgage Forgiveness Debt Relief Act of 2007, with the following exceptions: (1)  The maximum amount of acquisition indebtedness is reduced to $800,000 for couples filing jointly and $400,000 for individual filers; (2)  The maximum amount of debt relief income that can be forgiven is $250,000 for couples filing jointly and $125,000 for individual filers; and (3)  California’s debt relief statute applies to property sold on or after January 1, 2007 and before January 1, 2009. Finally, if the owner has owned the property for some time and has refinanced to take out some of the equity, the owner could be subject to capital gains taxation when selling the property as well. See Question 9 of the Legal Q&A, Taxation of Foreclosures and Short Sales for additional information.    Protecting Tenants at Foreclosure Act of 2009 National Housing Law Project Resources (June 10, 2009) President Obama recently signed into law the `Protecting Tenants at Foreclosure Act of 2009'.  Effective May 20, 2009, the Act extends a range of protections to tenants in foreclosed properties.  There are useful sources of related information from the National Housing Law Project to assist you in responding to tenant questions and knowledgeably educating affected clients concerning the new legislation.   Protecting Tenants at Foreclosure Act of 2009: In brief, under the new legislation, all tenants must get a 90 day notice prior to eviction due to foreclosure.  In addition (with some exceptions) tenants that have leases can continue to live in their homes until the end of the term of their lease.  The rights of Section 8 tenants are also protected because the new owner at foreclosure must accept both the tenant's lease and the housing assistance payment (HAP) contract. Related Resources: The National Housing Law Project (NHLP) has prepared materials that will help housing counseling agencies understand the provisions and help tenants exercise their new rights under this law.  NHLP's materials include sample letters that tenants can use to inform their landlords, as well as sample letters advocates can use to inform the courts and public housing authorities. The NHLP materials are available on the National Low Income Housing Coalition (NLIHC) homepage at: http://www.nlihc.org/template/page.cfm?id=227 The NLIHC website also contains several other additional resources, including details of the new tenant protection provisions: http://www.nlihc.org/doc/Memo-Renter-Protections-S-896.pdf http://www.nlihc.org/detail/article.cfm?article_id=6143. FANNIE MAE CLARIFIES CONDOMINIUM OCCUPANCY RULES A New Project Eligibility Review Service (PERS) for condo and co-op projects and changes to its condo and co-op project policies have been announced by Fannie Mae. The announcement clarifies how REO units are treated for determining the owner-occupancy ratio. Established projects, where borrowers will occupy the unit or use the unit as a second home, are not subject to any owner-occupancy ratios, according to the guidelines. However, Fannie Mae requires that established condominium projects have an owner-occupancy ratio of at least 51 percent at loan origination for investment properties. For projects where a borrower is an investor and that do not meet the owner-occupied ratio of 51 percent, a waiver based on the overall risk of the project may be requested. More info Navigating the Maze of Short Sales, Foreclosures and REOs  Video helps homeowners gather paperwork for faster mortgage help July 22, 2009 - Freddie Mac has produced a video that shows late-paying borrowers how gathering a few financial documents before calling a mortgage servicer can cut the time needed to determine their eligibility and process their application for a loan modification under the Making Home Affordable program or Freddie Mac's other workout initiatives. Available in English and Spanish versions, the new Freddie Mac video, “Stop Foreclosure: Documents Your Lender Needs to Help You,” can be seen at Freddie Mac’s channel on YouTube at http://www.youtube.com/FreddieMacWeb. The two-minute video shows step-by-step which documents borrowers should have on hand when they call their servicer to discuss loan modifications. These documents can cut the time a servicer will need to understand the borrower's situation, determine his or her eligibility for a workout, and process the application. More info   What is a Foreclosure Property? A foreclosure property is a home currently in foreclosure. A Notice of Default has been filed in public records by the lender because the owner has stopped making mortgage payments. Unless mortgage payments are brought up to date, the lender will sell the property, usually to the highest bidder at auction.   When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You will usually be expected to pay with cash in hand. On top of that, you’ll receive the property “As-Is”, which can include existing liens, property taxes and even current occupants who need to be evicted.   What is a Short Sale Property? Short sales occur when a homeowner is in foreclosure but, before going to public auction, the home is sold. Under a short sale the lender must agree to accept less than the amount that is owed on the property.  These sales tend to be difficult and time-consuming for all involved.   If you are considering a short sale, know that prospective buyers must be informed of a seller’s lender’s approval before the buyer incurs any expense related to the purchase of the property.  Everything in a short sale hinges on the approval of the seller’s lender, who can bring in their own bidder and ignore your offer. The buyer retains the ability to pull the plug on the deal if the lender delays too long, but they should also try to be flexible with the escrow’s closing date.   What are REOs? REO is an acronym for Real Estate Owned by a bank.  In the real estate industry jargon it means a foreclosed property which has been foreclosed on by a bank.  In banking jargon Real Estate Owned in a line item on a bank's financial report under liabilities.      When does an REO occur? If a lender or bank is the highest bidder at a foreclosure auction or if no third party bids at the auction, then the property reverts back to the lender and becomes an REO.  You may find that lenders will go to great lengths to get rid of REO properties in their holding and that bank-owned homes are liabilities for banks.   Which is better? REO purchases tend to be much cleaner and attractive transactions than either foreclosure or short sale purchases. The bank which owns the property will see to the removal of tax liens (except IRS ones which have a 120 day redemption period), evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing. Do be aware that in California REO transactions, banks are exempt from providing a purchaser with a TDS (Transfer Disclosure Statement) which normally requires sellers to tell you about any defects they are aware of.   Special Consideration for Investors California has some of the most stringent consumer protection laws, and this absolutely includes foreclosure properties under the provisions of Section 1695 et seq and 2945 et seq of the Civil Code. Also, investors are required to comply with the Home Equity Sales Act. Any failure to comply with these provisions may cause the courts to invalidate the sale.   Home Equity Sales Act This California Real Estate law requires special documentation. Any investor in the California short sale or pre-foreclosure market has to be aware of it.  CA Codes (civ:1695-1695.17): "1695.17. (a) Any representative, as defined in subdivision (b) of Section 1695.15, deemed to be the agent or employee, or both the agent and the employee of the equity purchaser shall be required to provide both of the following: (1) Written proof to the equity seller that the representative has a valid current California Real Estate Sales License and that the representative is bonded by an admitted surety insurer in an amount equal to twice the fair market value of the real property which is the subject of the contract. (2) A statement in writing, under penalty of perjury, that the representative has a valid current California Real Estate Sales License, is bonded by an admitted surety insurer in an amount equal to at least twice the value of the real property which is the subject of the contract and has complied with paragraph (1). The written statement required by this paragraph shall be provided to all parties to the contract prior to the transfer of any interest in the real property which is the subject of the contract. (b) The failure to comply with subdivision (a) shall at the option of the equity seller render the equity purchase contract void and the equity purchaser shall be liable to the equity seller for all damages proximately caused by the failure to comply." Investors looking to buy short sales which may be about to have an NOD Filed should be working with a Realtor and attorney on their team. Unlike foreclosures, investors purchasing a short sale typically buy the home for even less because they are not paying off the existing loan nor making up the back payments. Investors usually strike a deal with the existing lender, who agrees to take less than what they have coming to avoid dealing with a foreclosure.   REO properties are often considered to be the best way for an investor to purchase a distressed property because the seller is already out of the picture. It’s just the investor, the investor’s agent, the bank and the bank’s agent who are negotiating the transaction.   What else should you know about REOs? Most REOs are sold "As-Is" which means that they could have some potentially large issues.     Remember banks are not required to complete a TDS on the property's defects.    Also, the bank or lender can back out of the deal at any point along the way for any reason and the buyer is left with no recourse.      For Title and Escrow be sure to insist on  Linda Centoni, Account Manager North American Title 21060 Redwood Road Castro Valley, CA 94546 Office: 510-537-8300 Contact your Country Assessor's Office as well as your lawyer before making any decisions or taking legal aciton. Deeds in Lieu of Foreclosure The difficult financial times have dramatically increased the number of foreclosures which property owners are facing. An alternative to a short sale or foreclosure to be considered by property owners is the possibility of deeding the encumbered property back to the lender--giving the lender a "deed in lieu of foreclosure."     Q 1. What is a deed in lieu of foreclosure? A A deed in lieu of foreclosure is a deed given by the trustor (the borrower) to the beneficiary (the lender) to stop the foreclosure process or as a way to completely avoid the start of the foreclosure process.  (Cal. Civ. Code § 2889; Bradbury v. Davenport, 120 Cal. 152 (1898).) Q 2. What are the advantages and disadvantages to the lender of taking a deed in lieu of foreclosure? A By accepting a deed in lieu of foreclosure, the lender avoids the costs and delays of foreclosing. However, (1) any junior liens are not extinguished (a foreclosure wipes out junior liens), (2) the borrower may later try to set the conveyance aside, and/or (3) the borrower's other creditors may argue that the conveyance was a "fraudulent conveyance" which jeopardizes their ability to satisfy their claims against the borrower. Lenders can protect themselves against hidden junior liens by obtaining an endorsement to the beneficiary's title insurance policy that places title in the beneficiary free and clear of any junior liens. Q 3. What are the advantages and disadvantages to the borrower of giving a deed in lieu of foreclosure? A By giving a deed in lieu of foreclosure and thus stopping the foreclosure, the borrower avoids any further injury to his/her credit and insulates himself/herself from any possible exposure to a deficiency judgment. If the deed in lieu is given to the lender early on, the borrower avoids having a notice of default recorded against his or her name.  However, the borrower will be denied any opportunity to retain the excess proceeds, if there are any, following a trustee's sale. Courts do not necessarily invalidate a transfer by deed in lieu of foreclosure even if the value of the property greatly exceeds the balance on the loan. (See Bastajian v. Brown, 57 Cal. App. 2d 910 (1943).) Q 4. Does giving a deed in lieu of foreclosure to a lender automatically cancel the note and deed of trust? A Not necessarily.  There should be a clear written agreement between the borrower and the lender regarding this issue of whether the debt is cancelled or whether the borrower still owes the lender any additional sums of money.   Q 6. Can a lender have a deed in lieu of foreclosure held by escrow at the time of making the loan to be transferred to the lender in the event of the borrower's default? A No. A deed in lieu of foreclosure given at the time of making the loan or required to be given in the loan documents effectively cuts off the borrower's redemption rights (with a judicial foreclosure only) following default and is thus prohibited by law. (Bradbury v. Davenport, 120 Cal. 152 (1898).)  Q 7. Can a borrower complete a deed in lieu of foreclosure and record it without the lender's permission? A No.  A borrower shouldn't do that for two reasons.  First, transfer of title doesn't automatically extinguish the note and deed of trust.  Second, recording the deed raises a rebuttable presumption of the delivery and acceptance of the deed by the lender.  A deed does not effectively transfer title if it is not accepted by the lender (Perry v. Wallner, 206 Cal. App. 2d 218 (1962)).  In fact, Civil Code Section 1058.5 provides a lender with a way to reject this attempted transfer of title.  The lender can record a Notice of Nonacceptance. Copyright© 2008, CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) All rights reserved. Permission to reprint this article granted by Legal Department of the California Association of Realtors® CAR  Loan Forbearance Agreements Must be in Writing A lender's agreement to forbear or refrain from foreclosing on a home must be in writing and signed by the lender, even if the borrower has performed on the agreement by making a payment. This was the ruling of the recent appellate court case of Secrest v. Security National Mortgage Loan Trust (2008 WL 4516413). This case serves as a good reminder for REALTORS® and their clients to get loan forbearances, loan modifications, and other agreements with mortgage lenders in writing and signed. In this case, the borrowers of a home loan defaulted in 2002. In a phone conversation, the bank's loan resolution consultant agreed to enter into a forbearance agreement to refrain from foreclosing if the borrowers paid the arrearage by making an initial payment of $13,422 followed by monthly installments. The loan officer then faxed an unsigned written forbearance agreement to the borrowers. The borrowers noticed errors on the proposed agreement, and at the loan consultant's instructions, they corrected those errors on the document itself, signed it, and returned it to the loan officer along with the $13,422 initial payment. The lender, however, never signed the forbearance agreement. Instead, the lender sold the note and deed of trust, and two years later, the new lender filed a notice of default. The borrowers in this case filed a lawsuit to stop the foreclosure claiming that, because of the forbearance agreement, the notice of default overstated the amount of the default. The court disagreed. The court noted that, under the statute of frauds, a mortgage loan must be in writing and signed by the party against whom enforcement is sought. Similarly, if an agreement is subject to the statute of frauds, an amendment to that agreement is also subject to the statute of frauds. The court held that, in this case, the forbearance agreement at issue was not enforceable because it was not signed by the lender. The borrower nevertheless argued that a signed agreement was not required because they partly performed by making the $13,422 initial payment. Again, the court disagreed. The court ruled that the payment of money is not "sufficient part performance to take an oral agreement out of the statute of frauds," because the borrowers paying money under an invalid contract "have legal means to recover that money if they are entitled to its return or have not received credit for it." Financing Differences from a Lender's Perspective... Claudia Kim, Loan Officer, with Cherry Creek Mortgage offered the following insights from a lender's perspective.  Claudia has more than 30 years experience in originating Conventional, FHA and VA loans.  Call Claudia at 925-474-1115 or toll-free at 800-325-2062 X 1115 or visit Claudia's web site. Buyers do not get to choose title company.  Often the seller’s title company seems to be understaffed and overworked causing delays, mistakes, and mismanagement.  In the end, it seems to work out though with frustration.  However, a lot more work and follow up is required.  A commitment to review documents and carefully track the file is required to be successful. Buyers need to lock in their interest rates for a longer period of time to allow sufficient time to overcome difficulties due to choice of title company, etc. The cost to the borrower for the longer lock in periods are probably .25 to .5 point loan fee. Adequate “history” of the property is missing.  In some cases, this seems to be more important than others.  Buyers/Borrowers must, as usual, be sure to exercise the use of inspections and professional advisers during the discovery period.  A few foreclosure sellers don’t want to allow discovery time.  In such cases, I would never encourage the borrower to pursue an offer.  Discovery time is essential. 4301 Hacienda Dr. Ste. 120 - Pleasanton, CA 94588 - toll-free 800-325-2062 X 1115 Home Warranty Coverage One of the major Home Warranty Companies Representative's shared this this information about home warranty coverage on foreclosed homes. Home Warranty coverage is usually not good for the buyers of a foreclosed home because 9 out of 10 of those homes did not have a home inspection. When the new owner tries to get claims covered through a home warranty the new owner has nothing to stand on to prove the problem was not pre-existing so most claims are denied.  Homes are sitting vacant for long periods of time and appliances are not being used which in turn is causing immediate issues when they are starting to be used by the new owners. I recommend all buyers of foreclosed homes get home inspections regardless of whether or not the seller is covering repairs.  Buyers need to know the condition of what they are buying.  A professional licensed inspector will do a thorough inspection of the home and the appliances and issue a written report to the buyer.  The report then becomes the documentation the buyer needs when dealing with a home warranty company.  The report can substantiate that the failure occurred after the coverage became effective.  Some people are buying foreclosed homes that have slab leaks, pool equipment that is shot, electrical systems that is shot, etc.  Without professional inspections by licensed contractors or technicians of certain trades thoroughly buyers are not prepared for what lies ahead.  If a buyer has a written home inspection report by a licensed inspector, they buyer can use their warranty coverage immediately upon receiving the warranty.  The only time a technician would assume the issue is pre-existing is if there are big indicators that this could not have just happened in one month. For example, if the call is a pipe leak in a wall one month after the close of escrow, and the tech goes there and sees there is mold present and a large amount if water damage, we would ask the tech if that kind of damage could have occurred within the time frame that it took him to get there from when the buyer placed the call, which is usually 1 to 3 days.  If there is evidence the problem has been going on longer than 3 days that would be considered a possible pre-existing issue.  In this scenario an inspection report would really benefit the buyer.   We then ask the tech how long he feels the issue has been going on and he will tell us what he thinks. That is how we determine our decision most of the time, but every situation is different.  Without a written inspection report this type of claim would probably be denied.    News About Foreclosures, Short Sales and REOs   510-538-0222 Liberty Floor Covering.  New Location: 30139 Industrial S.W. #G - Hayward, Ca 94544 - Phone: 510-315-0808  Browse their web site For assistance in buying or selling real estate in the greater San Francisco Bay Area, please contact me at 510-429-4800 or send me a note on the  form.  Thank you, Joanne Joanne L. Gardiner, Broker, e-PRO Realtor Advantage Realty (510) 429-4800 San Francisco Bay Area  ~ San Francisco East Bay Real Estate

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