Short sales aren't much better and, as Faught points out, aren't "short." In fact, they can take months, even as long as a year as the owner pays what he can while a willing buyer waits out the process. With so many short sales in progress and many financial institutions unable to keep pace, the risk to the seller who thinks he has a buyer is that the sale is scuttled when the buyer finds a better deal and leaves the table. A Realtor with experience in handling short sales can help press the bank for a speedier outcome, saving the seller from losing the property altogether as well as his credit rating.
Faught is treasurer of the prestigious California Association of Realtors and is a candidate for president-elect in that organization's elections in May. If he wins, and so far he has no opposition, he'll be CAR's president in 2013. As an officer, he makes frequent trips to Washington, D.C., to help the CAR and those at the National Association of Realtors (NAR) lobby for (or against) legislation that impacts home sales. Recently, he helped diffuse proposed federal legislation that would have required costly energy-saving, environmentally-friendly retrofits of homes at the point of sale and at considerable added costs to the sellers. In California, he's worked to curtail legislation proposed by the Gov. Jerry Brown administration that would have added $12.5 million in "fees," including special fees on services such as termite and roof inspections, mortgage loan processing and more. So confident was the administration of imposing this fee structure before realizing a two-thirds majority vote in the Legislature wasn't there that the Statehouse is now scrambling on where else to find the $12.5 million it has already programmed into its new budget proposal.
Another concern of Faught's is a plan being advanced by the Obama Administration to take away federal interest loan tax deductions. The cap for these deductions has been set at the $2 million mark for years. Obama wants to lower that threshold to $500,000 and for the taxpayer's primary home only. That lower cap, of course, would affect most homeowners in Pleasanton and in much of California and a few other states which have high housing costs. So far, Faught believes that proposal is on the back burner but it's there for all of us to watch. He also told Realtors that the Feds want to lower to $625,000 from the current $729,000 the amount of mortgages that qualify as conforming loans. Above that, loans would be considered "jumbo," subject to much higher interest rates.
With Faught working the halls of Congress and the Capitol in Sacramento, it's no wonder his remarks drew loud applause from other Realtors who, along with their clients, stand to benefit.
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