Some homeowners who sell their homes through short sales are finding their mortgage companies still try to collect some or all of the difference between the bank-approved short-sale price and the outstanding mortgage balance.  Some mortgage companies also are taking legal action to recover unpaid amounts after a foreclosure is completed.

•   A lender tactic gaining popularity is for the holders of mortgages or home-equity loans to require borrowers in short sales to sign a promissory note — a written promise to pay back a loan or debt.
• HSBC Finance has implemented a one-year moratorium on the collection of deficiency balances for short sales and foreclosures that occur after April 1, due to the “current economic environment,” according to an official with the company.
• Not all borrowers who sell their homes through a short sale or lose their homes to foreclosure will receive a deficiency claim.  Often, mortgage companies don’t try to collect unpaid amounts either because state laws prohibit or limit such actions or the cost outweighs the potential return.  California has anti-deficiency rules that prohibit lenders from pursuing borrowers after foreclosure, but California does not have anti-deficiency rules for a short sale.
• The borrower’s situation often is the determining factor in whether the lender tries to collect the unpaid debt or not.  The borrower’s employment status, assets, whether the home was purchased as an investment, and the amount of debt owed are taken into consideration.
• It is important that sellers are informed of the lenders requirements, read the fine print, and ask questions when selling their home via a short sale.  According to one real estate attorney who represents financially troubled homeowners, every short sale she has worked with has had a promissory note or terms giving the lender the right to collect a deficiency.  Often, the terms are buried in the sale contract, according to the attorney.

It is important that you work with a Realtor that has knowledge about short sales before you decide to work with them. Also it is important to talk to a Real Estate Attorney before you decide to sell so you get advice for your situation.

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 The Home Team Girls Realtors® Real Estate Team helping you with Investment properties, Homes For Sale, Relocations, Seller Strategies, Certified Buyer’s Agent, Serving the Military and Veterans, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

As more homeowners find themselves underwater — owing more on their mortgage than their home is currently worth — and unable to make the monthly mortgage payments, many are turning to short sales, which allows a homeowner to sell their home for less than owed on the mortgage. With the lender’s approval, home buyers can purchase properties in desirable neighborhoods and at favorable prices.

KEEP THIS IN MIND

 
• According to real estate Web site Zillow.com, 14 percent of homeowners nationwide are currently underwater. In some areas, especially those hardest-hit by foreclosures that have experienced the greatest price declines, more than 50 percent of homeowners would owe more than their home is worth if they sold today.
• Unlike foreclosed properties, which may be run-down and vacant for many months, short-sell properties are likely to be better maintained as many owners may still live in the home.
• In a short sale, the homeowner must receive approval from the lender before the sale of the property can proceed. With many lenders overwhelmed by short-sale transactions, it can take between two and six months to execute.
• Working with a REALTOR® who has experience with short sales can help both sellers and home buyers during the transaction. A seasoned REALTOR® will be able to serve as the mediator between the seller and the lender and lead to a successful transaction, while a buyer’s agent can help with offers, counter offers, home inspections, closing, and more.
• It is important to remember that although the seller may be anxious about selling the property and willing to accept any offer, it is ultimately up to the lender to determine if, and at what price, the property can be sold. Therefore, home buyers should work closely with their REALTOR® to submit a realistic offer.
• According to REALTOR® Loni Parmelly, author of Success in Short Sales, buyers should ask the lender to pay for all closing costs as part of the contract. The contract also should specify that the buyer will not conduct an appraisal or inspection of the property until the offer is approved. This
added guarantee can protect home buyers from spending money on a home they may not purchase.
To read the full story, please click here

For more articles:

A Short Sale May be a Way Out… But Beware

Questions on the 8,000 Federal Tax Credit

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Relocations, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

Tips for preparing your home for sale:

 Although the traditional home-selling season has come to a close, homeowners still may be able to sell by making some minor adjustments that emphasize the home’s attributes. 

 ·      Homeowners in areas with extremely cold weather should take additional precautions when preparing their home for sale during the winter months.  Cleaning out gutters can help prevent icicles from forming and weather stripping windows will help to diminish drafts.  If the house will be vacant, it’s important that homeowners turn off and drain outside spigots so pipes do not freeze and burst.

·      Although holiday lights and decorations can look festive, some home buyers may be discouraged if they do not hold the same beliefs as the seller.  If the home is occupied, lighting a fire in the fireplace may be a better option for providing a comforting feeling.

·      Energy efficiency is top of mind with many of today’s home buyers.  Providing a list of energy saving alterations, such as wrapping pipes with foam sleeves and replacing windows and appliances, can help draw more buyers.  Providing a copy of recent utility bills also may be helpful.  It’s recommended that personal information, such as account numbers, be blacked out to guard against identity theft.

·      Although the winter months mean spending more time indoors, sellers can showcase a beautiful garden or other outdoor draw by displaying photographs taken during the spring and/or summer.  This can help illustrate to buyers the home’s other valuable attributes.

To read the full story, please click here:

http://online.wsj.com/article/SB123005162931830375.html

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

Eight steps to selling your home

1.  Define your needs. Write down all the reasons for selling your home. Ask yourself, “Why do I want to sell and what do I expect to accomplish with the sale?” For example, a growing family may prompt your need for a larger home, or a job opportunity in another city may necessitate a move. For your goals, write down if you’d like to sell your house within a certain time frame or make a particular profit margin. Work with your real estate agent to map out the best path to achieve your objectives and set a realistic time frame for the sale.

 2.  Name your price. Your next objective should be to determine the best possible selling price for your house. Setting a fair asking price from the outset will generate the most activity from other real estate agents and buyers. You will need to take into account the condition of your home, what comparable homes in your neighborhood are selling for, and state of the overall market in your area. It’s often difficult to remain unbiased when putting a price on your home, so your real estate agent’s expertise is invaluable at this step. Your agent will know what comparable homes are selling for in your neighborhood and the average time those homes are sitting on the market. If you want a truly objective opinion about the price of your home, you could have an appraisal done. This typically costs a few hundred dollars. Remember: You’re always better off setting a fair market value price than setting your price too high. Studies show that homes priced higher than 3 percent of their market value take longer to sell. If your home sits on the market for too long, potential buyers may think there is something wrong with the property. Often, when this happens, the seller has to drop the price below market value to compete with newer, reasonably priced listings.

 3.  Prepare your home. Most of us don’t keep our homes in “showroom” condition. We tend to overlook piles of boxes in the garage, broken porch lights, and doors or windows that stick. It’s time to break out of that owner’s mindset and get your house in tip-top shape. The condition of your home will affect how quickly it sells and the price the buyer is willing to offer. First impressions are the most important. Your real estate agent can help you take a fresh look at your home and suggest ways to stage it and make it more appealing to buyers. * Hire a Home Stager or Staging Company to help you stage your home.  A home with too much “personality” is harder to sell. A professioanl can help you make decisions that are hard for home owners to make. Removing family photos, mementos and personalized décor will help buyers visualize the home as theirs. * Make minor repairs and replacements. Small defects, such as a leaky faucet, a torn screen or a worn doormat, can ruin the buyer’s first impression. * Clutter is a big no-no when showing your home to potential buyers.  Make sure you have removed all knick-knacks from your shelves and cleared all your bathroom and kitchen counters to make every area seem as spacious as possible.

 4.  Get the word out. Now that you’re ready to sell, your real estate agent will set up a marketing strategy specifically for your home. There are many ways to get the word out, including: * The Internet * Yard signs * Open houses * Media advertising * Agent-to-agent referrals * Direct mail marketing campaigns In addition to listing your home on the MLS, your agent will use a combination of these tactics to bring the most qualified buyers to your home. Your agent should structure the marketing plan so that the first three to six weeks are the busiest.

5.  Receive an offer. When you receive a written offer from a potential buyer, your real estate agent will first find out whether or not the individual is prequalified or preapproved to buy your home. If so, then you and your agent will review the proposed contract, taking care to understand what is required of both parties to execute the transaction.

The contract, though not limited to this list, should include the following: * Legal description of the property * Offer price * Down payment * Financing arrangements * List of fees and who will pay them * Deposit amount * Inspection rights and possible repair allowances * Method of conveying the title and who will handle the closing * Appliances and furnishings that will stay with the home * Settlement date *

Contingencies at this point, you have three options: accept the contract as is, accept it with changes (a counteroffer), or reject it.

Remember: Once both parties have signed a written offer, the document becomes legally binding. If you have any questions or concerns, be certain to address them with your real estate agent right away.

 6.  Negotiate to sell. Most offers to purchase your home will require some negotiating to come to a win-win agreement. Your real estate agent is well versed on the intricacies of the contracts used in your area and will protect your best interest throughout the bargaining. Your agent also knows what each contract clause means, what you will net from the sale and what areas are easiest to negotiate.

Some negotiable items: * Price * Financing * Closing costs * Repairs * Appliances and fixtures * Landscaping * Painting * Move-in date Once both parties have agreed on the terms of the sale, your agent will prepare a contract.

 7.  Prepare to close. Once you accept an offer to sell your house, you will need to make a list of all the things you and your buyer must do before closing. The property may need to be formally appraised, surveyed, inspected or repaired. Your real estate agent can spearhead the effort and serve as your advocate when dealing with the buyer’s agent and service providers. Depending on the written contract, you may pay for all, some or none of these items. If each procedure returns acceptable results as defined by the contract, then the sale may continue. If there are problems with the home, the terms set forth in the contract will dictate your next step. You or the buyer may decide to walk away, open a new round of negotiations or proceed to closing. Important reminder: A few days before the closing, you will want to contact the entity that is closing the transaction and make sure the necessary documents will be ready to sign on the appropriate date. Also, begin to make arrangements for your upcoming move if you have not done so.

 8.  Close the deal. “Closing” refers to the meeting where ownership of the property is legally transferred to the buyer. Your agent will be present during the closing to guide you through the process and make sure everything goes as planned. By being present during the closing, he or she can mediate any last-minute issues that may arise. In some states, an attorney is required and you may wish to have one present. After the closing, you should make a “to do” list for turning the property over to the new owners. Here is a checklist to get you started. * Cancel electricity, gas, lawn care, cable and other routine services. * If the new owner is retaining any of the services, change the name on the account. * Gather owner’s manuals and warranties for all conveying appliances.

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

Increasing your home’s appeal with easy staging secrets

Remember the 60-second rule: That’s all the time you have to create a winning first impression. Here are some simple to significant ways to maximize your home’s appeal.

Exterior

 * Keep the grass cut and remove all yard clutter.

* Weed and apply fresh mulch to flower beds.

* Apply fresh paint to wooden fences.

* Tighten and clean all door handles.

* Clean windows inside and out.

* Powerwash home’s exterior.

* Ensure all gutters and downspouts are firmly attached and functioning.

* Paint the front door.

* Buy a new welcome mat.

* Place potted flowers near the front door.

 Interior

 * Evaluate the furniture in each room and remove anything that interrupts “the flow” or makes the room appear smaller. Consider renting a storage unit to move items off-site.

* Clean and organize cabinets, closets and bookshelves.

* Clean all light fixtures and ceiling fans.

* Shampoo carpets.

* Remove excessive wall hangings and knick-knacks.

* Repair all plumbing leaks, including faucets and drain traps.

* Make minor repairs (torn screens, sticking doors, cracked caulking).

* Clean or paint walls and ceilings.

* Replace worn cabinet and door knobs.

* Fix or replace discolored grout.

* Replace broken tiles.

* Replace worn countertops. Ask Realtor first

 Special details for showings

 * Turn on all the lights.

* Open all drapes and shutters in the daytime.

* Keep pets secured outdoors.

* Buy new towels for bathrooms.

* Buy new bedding for bedrooms.

* Replace old lamps or lampshades.

* Play quiet background music.

* Light the fireplace or clean out the ashes and light a candelabrum.

* Infuse home with a comforting scent, such as apple spice or vanilla.

* Set the dining room table for a fancy dinner party.

* Vacate the property while it is being shown.

Hire a home stager to give you a do it your self home staging report. They are professionals and can help you stage your home using buyers eyes. Some times you need an objective person to make good decisions on furniture placement and what to keep and what to pack away.

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

Trying to sell your home and you need all the advatage you can get to make the most our of your sale? Then read on.

Understanding the buyer

 As the seller, you can control three factors that will affect the sale of your home:

 * The home’s condition

* Asking price

* Marketing strategy

 However, it’s important to note that there are numerous other factors that influence a buyer, and you need to understand these consumer trends when you enter the sellers’ market. The more your home matches these qualifications, the more competitive it will be in the marketplace. Your real estate agent can advise you on how to best position and market your home to overcome any perceived downsides.

 Location

Unfortunately, the most influential factor in determining your home’s appeal to buyers is something you can’t control: its location. According to the National Association of REALTORS(r), neighborhood quality is the No. 1 reason buyers choose certain homes. The second most influential factor is commute times to work and school.

 Size

While some buyers want to simplify their lives and downsize to a smaller home, home sizes in general have continued to increase over the decades, nearly doubling in size since the 1950s. Smaller homes typically appeal to first-time home buyers and “empty nesters,” or couples whose children have grown up and moved out.

 Amenities

Preferences in floor plans and amenities go in and out of fashion, and your real estate agent can inform you of the “hot ticket” items that are selling homes in your market. If your home lacks certain features, you can renovate to increase its appeal, but be forewarned: That’s not always the right move. Using market conditions and activity in your neighborhood as a gauge, your agent can help you determine whether the investment is likely to help or hinder your profit margin and time on the market. Make sure you ask your agent before you plan any improvements on your home.

If your home does not compete well with the neighboring homes, then price your home so that it will stand out from the competition. Pricing your home right will always compensate for conditions that you can not control.

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

How to price to sell and still make a profit in this Real Estate Market

The asking price you set for your home significantly affects whether you will profit in the sale, how much you will profit and how long your home will sit on the market. Your real estate agent’s knowledge of the overall market and what’s selling – or not selling – will be invaluable in helping you determine the price. The objective is to find a price that the market will bear but won’t leave money on the table.

Here are some points to consider: Time. Time is not on your side when it comes to real estate. Although many factors influence the outcome, perhaps time is the biggest determinant in whether or not you see a profit and how much you profit. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. Therefore, if your goal is to make money, think about a list price that will encourage buyer activity.

Value vs. Cost. Pricing your home to sell in a timely fashion requires some objectivity. It’s important that you not confuse value with cost – in other words, how much you value your home versus what buyers are willing to pay for it. Don’t place too much emphasis on home improvements when calculating your price, because buyers may not share your taste. For instance, not everyone wants hardwood floors or granite countertops.

Keep it simple. Because time is of the essence, make it easy for the buyers. Remain flexible on when your agent can schedule showings. Also, avoid putting contingencies on the sale. Though a desirable move-in date makes for a smoother transition between homes, it could cause you to lose the sale altogether.

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

10 Questions to Ask Your Realtor about Selling a House

1. Are you a full-time professional real estate agent? How long have you worked full time in real estate? How long have you been representing buyers? What professional designations do you have? What are their Real Estate Services?
   Knowing whether or not your agent practices full time can help you determine potential scheduling conflicts and his or her commitment to your transaction. As with any profession, the number of years a person has been in the business does not necessarily reflect the level of service you can expect, but it is a good starting point for your discussion. The same issue can apply to professional designations.
2. Do you have a personal assistant, team or staff to handle different parts of the purchase? What are their names and how will each of them help me in my transaction? How do I communicate with them?
   It is not uncommon for agents who sell a lot of houses to hire people to work with them. As their businesses grow, they must be able to deliver the same or higher quality service to more people.
   You may want to know who on the team will take part in your transaction, and what role each person will play. You may even want to meet the other team members before you decide to work with the team. If you have a question about fees on your closing statement, who would handle that? Who will show up to your closing?
3. Do you have a Website that will list my home? Can I have your URL address? Who responds to emails and how quickly? What’s your email address?
   Many buyers prefer to search online for homes because it’s available 24 hours a day and can be done at home. So you want to make sure your home is listed online, either on the agent’s Website or on their company’s site. By searching your agent’s Website you will get a clear picture of how much information is available online.
4. How will you keep in contact with me during the selling process, and how often?
   Some agents may email, fax or call you daily to tell you that visitors have toured your home, while others will keep in touch weekly. Asking this question can help you to reconcile your needs with your agent’s systems.
5. What do you do that other agents don’t that ensures I’m getting top dollar for my home? What is your average market time versus other agents’ average market time? What are their marketing strategies?
   Marketing skills are learned, and sometimes a real estate professional’s unique method of research and delivery make the difference between whether or not a home sells quickly.
6. Will you give me names of past clients?
   Interviewing an agent can be similar to interviewing someone to work in your office. Contacting references can be a reliable way for you to understand how he or she works, and whether or not this style is compatible with your own.
7. Do you have a performance guarantee? If I am not satisfied with your performance, can I terminate our listing agreement?
   In the heavily regulated world of real estate, it can be difficult for an agent to offer a performance guarantee. If your agent does not have a guarantee, it does not mean they are not committed to high standards. Typically, he or she will verbally outline what you can expect from their performance. Keller Williams® Realty understands the importance of win-win business relationships: the agent does not benefit if the client does not also benefit.
8. List price: Do not get fooled by choosing the agent that suggests the highest list price or discounts their services fess. You get what you pay for when hiring an agent, one that will get the job done for you in the fastest amount of time.  Hire an agent that will be honest with you on pricing- you want one that is up front and open with you and will give you the truth about what the pricing model needs to be.  
9. How would you develop pricing strategies for our home?
   Although location and condition affect the selling process, price is the primary factor in determining if a home sells quickly, or at all. Access to current property information is essential. Ask your agent how they created the market analysis, and whether your agent included, foreclosed homes and bank-owned sales in that list.
10. What will you do to sell my home? Who determines where and when my home is marketed/ promoted?  Ask your real estate agent to present to you a clear plan of how marketing and advertising dollars will be spent. If there are other forms of marketing available but not specified in the plan ask who pays for those. Request samples or case studies of the types of marketing strategies that your agent proposes (such as Internet Websites, open houses).  We are finding that multiple open houses are not a great way for you agent to spend their time. An initial open house is a good way to get the local agents and neighbors into your home once it is listed.  We are finding that in our area- most people tend to attend bank foreclosure open houses more.

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

Thinking about selling your home and you got some questions about the process. You are not alone. Here are some common questions:

1. When do I get my sale proceeds?

On the date of recording, your escrow officer will have your sale proceeds available for you. At the time of signing, you may request that your escrow officer either cut you a check for your proceeds or wire funds directly into your bank account.

2. Why do I have to pay interest on my loan payoff past the date of recording?

Your lender continues to accrue interest to the date that they post your loan as being paid in full. This could be one or two days from the date your escrow officer sends your check.

3. When do I get a refund from my impound account?

After your escrow officer sends your payoff check to your existing lender, you can expect to get your impound account back directly from your lender within thirty to sixty days. If you have any questions after that time, we suggest calling your lender.

4. When do I cancel my homeowner’s/fire insurance?

Please do not cancel your insurance until you have received your sale proceeds.

5. Why does my escrow officer require that I complete a 1099 questionnaire?

A 1099 form is the reporting form adopted by the I.R.S. for submitting the information required by law. The form you complete at closing determines whether or not we need to report the gross proceeds to the I.R.S. or not.

6. What is the Statement of Information?

A Statement of Information provides title companies with the information they need to distinguish the buyers and sellers of real property from other people with similar names. After identifying the true buyers and sellers, title companies may disregard the judgments, liens, or other matters on the public records under similar names.

7. I don’t understand tax pro-rations; how do they work?

Taxes are based on a fiscal year from July to July. Based on what taxes are paid or are being paid, the pro-ration is from COE to the next date taxes are due. This can be explained more at signing.

8. What will I need to take to the Title Company when I go to sign my papers?

You will need to bring your checkbook for the purpose of routing information in case you want your funds wired to your account. Bring a valid form of picture ID.

9. What do I do if I’m an out-of-state seller and selling property in California?

Immediately contact your real estate agent or your escrow officer—this can be a time consuming process.

10. What is a Deed of Reconveyance?

A Deed of Reconveyance is issued by your previous lender in conjunction with the payoff on your loan. This document is recorded at the county recorder’s office and shows that the mortgage in your name has been released from the property and paid in full.

Pack Early Before your sell

8 Steps to Selling your Home

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

I can’t afford my payment any more and I owe more than I can sell it for, what can I do?

You have several options if you have to sell, we will dicuss one in this article called a short sale.

A short sale is a transaction in which a lender allows you to sell your home for less than what is owed on it. The bank accepts less than the remaining mortgage amount due and accepts the proceeds as full payment of the loan.  A lender may accept a short sale when you, the borrower, is in severe financial straits and market conditions make a short sale the best choice to mitigate the lender’s damages.  Like a deed in lieu of foreclosure, this saves the lender the costs of foreclosure and the borrower avoids having a foreclosure on his or her credit report. 

Why would a lender agree to accept a short sale?

Lenders may have ample incentive to negotiate a short sale with a distressed borrower. For example, should the lender take back a property pursuant to a foreclosure sale, the lender would become responsible for a variety of costs, including property maintenance, utilities, HOA fees, and might risk destruction of the property by vandalism. Furthermore, lender-owned properties (REO) may take a long time to sell, in part because so many REO properties are now for sale.
 
A lender will typically evaluate the financial situation of the borrower as well as current market conditions to determine whether or not to agree to a short sale. It is really a business decision for the lender to determine whether it would receive more money by accepting the short sale, or completing a foreclosure, reselling the property, and pursuing personal liability (i.e., deficiency judgment against the borrower and/or claims against guarantors, for loans on which those remedies are available.)

Does a short sale adversely affect a defaulting borrower’s credit rating?

Yes.  Lenders will report the short sale as being settled for less than the full balance.  This would show up on the borrower’s credit report as a negative mark for seven years. 

For more related Bogs:

What is the Difference between and Bank Foreclosure and an REO Property

Tips to Buy a Bank Foreclosure

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.