Frequently Asked Questions

What is a TIC?

When buying a home in the San Francisco Bay Area, you have many different choices when it comes to the type of property you can purchase.  There are single family residences, apartment buildings, lofts, townhouses, condos, and TIC's (tenancy-in-common, technically a form of holding ownership).  Before deciding what to focus on, you must realistically decide what you can afford and then weigh the pro's and con's.  Many of our clients ask about TIC's because they have become very common over the years as an affordable way to get into the San Francisco housing market.  They also exist in other cities, such as Oakland and Berkeley, and are a good option when you prefer to buy a unit in a charming, older building.  Here is an informative article by Andy Sirkin about TIC's:

TIC's 

What do I do if I want to buy a property that is tenant occupied?

Many people assume that when you buy a property that is tenant occupied, it doesn't matter because as soon as escrow closes it will be yours to move into, but this may not be the case.  You must first understand the tenant(s)' rights, and this may be different from property to property.  Here are some articles by Jeffrey Woo and Andy Sirkin about buying tenant occupied properties:

Buying and Selling Tenant Occupied Single Family Homes in San Francisco

Tenants and Condo Conversions in 2-Unit Buildings in San Francisco

Tenanat occupied Properties in Oakland

OMI & Ellis Evictions

 What are HOA fees?  What do they cover?

Many properties include a monthly fee called a HOA fee.  Here is an article by Andy Sirkin about HOA fees:

HOA's

I'm a first time home buyer.  Aren't there special programs for people like me?

Here are links to Bay Area county sites about first time home buyer assistance:

First Time Buyer Assistance in San Francisco

First Time Buyer Assistance in Marin

First Time Buyer Assistance in San Mateo

First Time Buyer Assistance in Alameda

First Time Buyer Assistance in Contra Costa

I bought my house with a loan that has now adjusted to a higher rate and payment, which I can't afford.  It looks like I will lose my house.  What is the best way to save my credit?  What is the difference between a foreclosure and a short sale?

Unfortunately, this is a common scenario in today's market.  Many people who bought just 2-5 years ago, bought at the peak of the market and with 100% financing, which means they owe more than their house is worth now.  It is even worse if they bought their home with a short term loan thinking they would refinance in a few years.  What I advise to do first is to talk to your lender about your situation before you default on the loan.  Often they tell you that you need to default on the loan before they will discuss your situation, but it is worth a try calling before you get to that point.  You might have two loans and will need to contact both lenders to see if they can extend the number of years your loan is fixed before it adjusts, commonly called a "loan modification". You may need to show proof that you still qualify for this loan with your income and credit score, so be prepared to give them this information.  However, this is so common now that many banks are just modifying the loans without asking for anything.  If you can't qualify for the loan or they are just not willing to work with you, you have a few options, the most common being foreclosure or short sale.  Here is an article that simplifies the difference between these two options, so that you can decide which to pursue:

Foreclosure vs. Short Sale

What is the best way to invest in today's market?  I've heard that you can get great deals on foreclosure properties, but I'm not sure how to go about it.  A lot of the homes for sale are short sales.  What does that mean?  What is the difference?

While sellers are having a hard time in today's market, buyers have an advantage because they can buy these same properties for much less than what they sold for a few years ago.  Many clients ask me about foreclosure properties, but they have not heard of or don't understand the difference between foreclosures, short sales, and REOs (real estate owned properties). 

I prefer to guide clients in purchasing REOs because these are properties that were already foreclosed on, the bank now owns them, and they want to sell them fast.  They are usually quick to respond to an offer, and they want to close the deal quickly. 

Short sales are very common in today's market.  They can also work out to be a good deal, but take more time and patience because the seller is still the owner, but has already defaulted, so you need an answer from the seller and also an approval from their lender to sell the property for less than what the seller owes.  Lenders are very busy these days and often take very long to even accept an offer.  This can be a good option, but again only if you have time and patience. 

Foreclosure properties seem to be the riskiest for the buyer, but can be a great deal if you buy right.  They are most often sold at auctions, and you would need to give an initial deposit that you could lose if your loan doesn't go through.  This can also be a good option, but is better for the savvy buyer. 

Here is an article that discusses these three options:

Buying Foreclosures, Short Sales, and REOs

What are the tax consequences when someone loses their home through foreclosure? 

Foreclosure and Debt Cancellation

Will multiple credit inquiries lower my credit score?

Credit Inquiries: How Credit Checks Affect Your FICO Score