My dear friend Gini sent an interesting link to a video about a man claiming an abandoned home trying to acquire title through adverse possession. An interesting concept. In Netherlands, the adverse possession of property is called ‘Kraken‘ it started in the sixties in big cities as a protest against empty properties while there was a housing shortage. It still happens mainly in the cities. Right now it is still legal to move into a home that has been empty for more than a year. This however is not done with the goal of permanent possession. Usually the city gets involved, they can even decide to donate a property to a non profit organization.

Also California has laws as to adverse possession. It appears that the time for adverse possession is 5 years and there are quite a bit of stipulations before one can claim a property.  I am not an attorney and I would recommend to seek legal council before starting the process of adverse possession like paying taxes etc.  This is needed to eventually claim adverse possession. It is not the wild west anymore although sometimes it might feel like it ;)))

For now, a surer way is to buy a house. Right now owning is cheaper than renting. If you count all the money you need to pay taxes on a property to claim adverse possession while you are still not sure whether an owner might claim the property, you might as well use this money to buy a property. Interest rates are at historic lows and there are still  great mortgage products available allowing you to buy with a minimal down payment. For instance, large parts of Sonoma County qualify for  USDA loans. I am currently working with a first time home buyer buying a small home with a nice yard in Windsor. He will be using a USDA loan, his total housing expense will be around $1,100 a month, and that is before his tax write offs. This program has income limitations, it is great for first time home buyers. Darren Seliga with Seliga financial in Santa Rosa is very familiar with this loan product, you can call him at :707-577-8737.

Mirjam de Rijk

LATEST NEWS : A lot of home owners have 2 mortgages against their property, we call that a senior and a junior loan. These second loans may be a home equity line of credit or a regular loan. This second loan was always nasty to deal with, it survives a foreclosure and usually you still owe on it after closing. UNTIL NOW…

Earlier this week Governor Brown signed into law Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder.  Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale.  This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units.  Any purported waiver of this rule shall be void and against public policy.
Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale.  A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.

This means that there still is quite a bit to negotiate with lenders involved in a short sale. The good news is: when all is said and done and the deal closes, it’s DONE!

Great news I wanted to share with you, please spread the news to your friends and family. A short sale is a dignified solution for a difficult situation.

Mirjam