Elizabeth Weintraub's Q&A

I've got short sale clients who ended up in a short sale because of banks who do this. They give you a "temporary" loan mod for 3 or 6 months, collect your payments and then deny your loan modification. It's pretty underhanded and sneaky. Sometimes, owners aren't even notified. The home just continues on its path to a trustee's sale, and the next thing they know, the sheriff is knocking on the door.You may want to consider a short sale. If you receive an offer in time, the bank might postpone the trustee's sale. You should also talk to a lawyer. I'm so sick and tired of banks ripping off home owners and getting away with it.

The zestimate is often inaccurate.

Vitek Mortgage opened its own HVCC-compliant appraisal management company. There is also StreetLinks, I believe.

Most of the lenders I know require 30% down and some want 50% on land. Plus, you may need a subordination clause for the take-out loan, but it's totally doable.

There have been other lots that have sold in downtown and Midtown Sacramento. You should look at the comparable sales to determine a value.You can also figure out how much it is worth by comparing other lots with homes on them and then deducting the values of those homes. You may need to further adjust the price according to location.

Many agents want you to be preapproved before they will take you out to show you a home. You may want to check with your bank or credit union, but an agent can also refer you to a mortgage broker. This will allow you to compare fees and rates, but more important, you can determine which lender's personality you prefer. You'll be talking to the lender for a long time, so choose one you like.

They could be interchangeable terms, depending on who is using them. Bank-owned means the bank has completed the foreclosure and now owns the property. Real estate foreclosure could mean the property has a Notice of Default filed against it and it will go to foreclosure if not cured -- or it could mean it has already gone through foreclosure.If you see a listing termed "real estate foreclosure" on certain web sites, it may be a pre-foreclosure. Not every pre-foreclosure goes through the foreclosure process.But if the bank owns the home and has completed the foreclosure, it may be offered for sale as a real estate foreclosure. Your agent might want to check the public records to determine ownership.As for offering price, most foreclosures in Sacramento are priced below market value in an attempt to drive multiple offers which, in turn, will move the price upwards, closer to market value. Whether you can offer less depends on the competition and how long the home has been on the market.If it's a new listing, you should run the comparable sales, determine value, and then offer more than list price. If it's been on the market for 30 days or longer without any offers, then you may be successful if you offer less. 

Is this a new home you're talking about? Are you building a home?

Why would you want to? That would raise the loan balance above your present loan balance, which is already under water. And the interest rate is higher, even without the PMI. Am I missing something?

If this is an owner-occupied residence, you may be limited to 80% of its appraised value, and that value is subject to an appraisal. Because you paid cash, it is possible that the value is not what you hope. Many buyers who pay cash do not obtain an appraisal at the time of purchase. Not to mention, there is seasoning required, as Martin pointed out below.You may need to seek out a hard-money source. On top of the loan, you will most likely pay closing costs as well. If you have the time to wait, a home equity loan might be a better choice. You may want to check with Golden 1 on that option. Last time I checked, Golden 1 had very attractive HELOCs.