Contra Costa, California Real Estate

I list Short-Sales.  As I type this, I can sense the shivers of dread running down your spine and, you're right, they are time-consuming, frustrating and downright grueling to get closed.  The trial of lender negotiations and our role as the sole person between the seller and potential foreclosure is not the purpose of this post.

I want to share two quick stories that I call Life Lessons.  These lessons are not new but resonate more deeply given the circumstances  My short-sale sellers didn't lie about their income to qualify for their loan, didn't stretch beyond their means and are hard-working people who went to heroic efforts to keep their homes.  Sometimes life doesn't have a happy ending.

Seller #1 purchased an investment property with 40% down to fix and flip.  About halfway through the project his mother came down with cancer.  He promised her that he would care for her until she died....and he did.   Ten months later when he could resume his project, the market had taken a dramatic downturn and the value of his investment had dropped to less than zero.  To make matters worse, his work hours were cut in half so he could no longer carry the payments.  I met him at the property and found him touching up the new paint, hanging the new towel bar in the bathroom and fine-tuning the custom closest doors he designed.  I asked him why he was spending the time with these small, unfinished details.  His answer showed his character, "I might be losing my shirt on this project but it will be someone's home and I want it to be right."

Sellers #2.  These sellers have owned their home for 4 years and they, like many in California, depend on two incomes to make their house payment.  Mrs. Seller is bright, articulate and organized.  She lost her Human Resources job 10 months ago and, given the current state of the economy, has been unable to find new employment.  They tightened their budget, went through their savings, she found some temporary contract jobs,  and finally they rented-out their home and moved in with family in hopes that they could hold on to their home.  It wasn't enough.  In 10 months they went from living the American Dream - with 750+ credit scores - to losing it all.  While many marriages disintegrate under that amount of financial stress,  Mr. Seller said, "We may lose everything else but we are still a family and - in the end - that's the only thing that's important." 

We would all count ourselves fortunate to keep our families and character intact in the same situation.

In California, every home buyer receives a Natural Hazards Disclosure Statement and they carefully check if the home is in a Flood Hazard Area, a Dam Inundation Area, a Fire Hazard Area, an Alquist-Priolo Fault Zone or a Geological Hazard Area (landslides) because they could have a significant impact on the homeowner's insurance expense.  Less carefully reviewed are the Supplemental Disclosures.

What if the home is located in a Habitat Sensitivity Area? 

Does it really matter if the property has the Salt Marsh Harvest Mouse or......... 

the California Tiger Salamander or . . . . .

the Red-Legged Frog? 

After all, you can be environmentally sensitive and keep an eye out for the little critters while moving your lawn.  Nope, not good enough!  If the property is in a Habitat Sensitivity Area, you could have restrictions on the improvements you are allowed to make to the home or landscape in order to protect the Habitat.  Any changes may require an Environmental Impact Statement (expensive, ouch!) or the scope of your improvements could be restricted.

The Natural Hazard Disclosure Statement only specifies that the property is IN a Habitat Sensitivity Area but doesn't specify the potential property restrictions.  If your home purchase is in such an area, it is important to contact the Department of Fish and Game and the local Planning Commission to determine the impact, if any, on your intended use and plans for the home.