a (72)

A Better Way to Do a Short Sale

In the past few years short sales have been long, frustrating, and undependable. The sellers had to prove they were desperate and often had to stop making payments in order to qualify for a short sale. The listing agent had to spend hours trying to figure out who was able to make the decision and whether or not the documents were even received. They buyer’s agent had to wait endlessly for an answer while his or her buyer threatened every day to bail. The closing statistics for short sales have been estimated at 10-30%. Many people felt why bother?
 
So why should you bother? For some reason banks are getting on board with the idea that allowing a seller to do a short sale is a better deal for them than foreclosure. In general banks get 45 cents on the dollar for a foreclosed home and 75 cents on the dollar for a short sale. It has taken a long time for the banks to get on board with short sale approvals, but short sales are now getting approved and some banks have started trying to make the process more efficient.
 
Bank of America, who has taken over Countrywide, is now using a platform called REOtrans for their short sales. This platform started as a method for asset managers to process bank owned properties with realtors and is a very effective method for all parties, as they can see in real time where the file is and what else needs to be done. As anyone knows who has dealt with a Bank of America or Countrywide short sale, it can take a month after an agent faxes the short sale package to the bank for the bank to upload it onto their system. Now it is uploaded directly on the site and everyone knows it is there. Everyone will always know where they are in the process so no more allocating 3 hours a week for follow up per file.
 
 
Wachovia wins the prize for the best short sale system. Twenty five percent of Wachovia loans are 60 days or more past due, so they have decided to encourage more short sales. They have a system that will get the sale approved and closed in 45 days or less, and do not care if the seller has hardship, or just made the decision that they would rather give up a home than pay for a home for 10-20 years before they are no longer underwater. Underwater means that more is owned on the home than the home is worth. Some estimates put the number of underwater homes in this country as high as 50%. Given those stats Wachovia has made a decision that if someone wants to sell short they will facilitate it. This is not to say they will just give a home away, but if a home has $700,000 of loans on it, and it is now worth $500,000, Wachovia will let someone buy it for close to $500,000 and forgive the other $200,000 debt, and do it in a reasonable amount of time. Plus, they will even give the seller up to $5000 for moving expenses.
 
Wachovia bought World Savings so this applies to World Savings loans as well. Wachovia was acquired by Wells Fargo but as of now Wells is not doing the same thing with short sales. Hopefully this program with Wachovia will work well and spread to not only Wells Fargo, but to other banks as well.
 
If you have any questions about short sales, or other real estate related questions please feel free to contact me.
 
Marcy Moyer
Intero Real Estate Services
650-619-9285
D.R.E. 01191194
Read more…

A Better Way to Do a Short Sale

In the past few years short sales have been long, frustrating, and undependable. The sellers had to prove they were desperate and often had to stop making payments in order to qualify for a short sale. The listing agent had to spend hours trying to figure out who was able to make the decision and whether or not the documents were even received. They buyer’s agent had to wait endlessly for an answer while his or her buyer threatened every day to bail. The closing statistics for short sales have been estimated at 10-30%. Many people felt why bother?
 
So why should you bother? For some reason banks are getting on board with the idea that allowing a seller to do a short sale is a better deal for them than foreclosure. In general banks get 45 cents on the dollar for a foreclosed home and 75 cents on the dollar for a short sale. It has taken a long time for the banks to get on board with short sale approvals, but short sales are now getting approved and some banks have started trying to make the process more efficient.
 
Bank of America, who has taken over Countrywide, is now using a platform called REOtrans for their short sales. This platform started as a method for asset managers to process bank owned properties with realtors and is a very effective method for all parties, as they can see in real time where the file is and what else needs to be done. As anyone knows who has dealt with a Bank of America or Countrywide short sale, it can take a month after an agent faxes the short sale package to the bank for the bank to upload it onto their system. Now it is uploaded directly on the site and everyone knows it is there. Everyone will always know where they are in the process so no more allocating 3 hours a week for follow up per file.
 
 
Wachovia wins the prize for the best short sale system. Twenty five percent of Wachovia loans are 60 days or more past due, so they have decided to encourage more short sales. They have a system that will get the sale approved and closed in 45 days or less, and do not care if the seller has hardship, or just made the decision that they would rather give up a home than pay for a home for 10-20 years before they are no longer underwater. Underwater means that more is owned on the home than the home is worth. Some estimates put the number of underwater homes in this country as high as 50%. Given those stats Wachovia has made a decision that if someone wants to sell short they will facilitate it. This is not to say they will just give a home away, but if a home has $700,000 of loans on it, and it is now worth $500,000, Wachovia will let someone buy it for close to $500,000 and forgive the other $200,000 debt, and do it in a reasonable amount of time. Plus, they will even give the seller up to $5000 for moving expenses.
 
Wachovia bought World Savings so this applies to World Savings loans as well. Wachovia was acquired by Wells Fargo but as of now Wells is not doing the same thing with short sales. Hopefully this program with Wachovia will work well and spread to not only Wells Fargo, but to other banks as well.
 
If you have any questions about short sales, or other real estate related questions please feel free to contact me.
 
Marcy Moyer
Intero Real Estate Services
650-619-9285
D.R.E. 01191194
Read more…

A Better Way to Do a Short Sale

In the past few years short sales have been long, frustrating, and undependable. The sellers had to prove they were desperate and often had to stop making payments in order to qualify for a short sale. The listing agent had to spend hours trying to figure out who was able to make the decision and whether or not the documents were even received. They buyer’s agent had to wait endlessly for an answer while his or her buyer threatened every day to bail. The closing statistics for short sales have been estimated at 10-30%. Many people felt why bother?
 
So why should you bother? For some reason banks are getting on board with the idea that allowing a seller to do a short sale is a better deal for them than foreclosure. In general banks get 45 cents on the dollar for a foreclosed home and 75 cents on the dollar for a short sale. It has taken a long time for the banks to get on board with short sale approvals, but short sales are now getting approved and some banks have started trying to make the process more efficient.
 
Bank of America, who has taken over Countrywide, is now using a platform called REOtrans for their short sales. This platform started as a method for asset managers to process bank owned properties with realtors and is a very effective method for all parties, as they can see in real time where the file is and what else needs to be done. As anyone knows who has dealt with a Bank of America or Countrywide short sale, it can take a month after an agent faxes the short sale package to the bank for the bank to upload it onto their system. Now it is uploaded directly on the site and everyone knows it is there. Everyone will always know where they are in the process so no more allocating 3 hours a week for follow up per file.
 
 
Wachovia wins the prize for the best short sale system. Twenty five percent of Wachovia loans are 60 days or more past due, so they have decided to encourage more short sales. They have a system that will get the sale approved and closed in 45 days or less, and do not care if the seller has hardship, or just made the decision that they would rather give up a home than pay for a home for 10-20 years before they are no longer underwater. Underwater means that more is owned on the home than the home is worth. Some estimates put the number of underwater homes in this country as high as 50%. Given those stats Wachovia has made a decision that if someone wants to sell short they will facilitate it. This is not to say they will just give a home away, but if a home has $700,000 of loans on it, and it is now worth $500,000, Wachovia will let someone buy it for close to $500,000 and forgive the other $200,000 debt, and do it in a reasonable amount of time. Plus, they will even give the seller up to $5000 for moving expenses.
 
Wachovia bought World Savings so this applies to World Savings loans as well. Wachovia was acquired by Wells Fargo but as of now Wells is not doing the same thing with short sales. Hopefully this program with Wachovia will work well and spread to not only Wells Fargo, but to other banks as well.
 
If you have any questions about short sales, or other real estate related questions please feel free to contact me.
 
Marcy Moyer
Intero Real Estate Services
650-619-9285
D.R.E. 01191194
Read more…

Wednesday I arrived to my hotel, I was immediately on the war path. As I checked in, the first question I had for the front desk staff was, “Is Patrice Euell available, I need to speak with her.” Patrice is the hotel event coordinator and as someone who comes from the hospitality industry, I was going to make sure this event went off without a hitch.

The front desk staff jump into high gear and before I could shake a tail feather, Patrice was walking up the escalators smiling and greeting me with, “You must be Jesse, what a hot mess!”

Well, I must say, she hit the nail on the head….right?

I greeted her with a big ole Texas hug and said, “Show me the room, let’s get started”. She took me by the hand and off we went, down the escalators and on the left, 2 large double doors were open and before my eyes were, tables, chairs, dance floor and stacks of glasses all out being set up. I was pleased, everything was on task and appeared to be ahead of schedule. I confirmed my layout of the room and made some minor adjustments accordingly but, overall it appeared to be in control.

Friday rolls around and party time is less than 5 hours away. I start getting ready, dressing up in my monkey suit and looking as dapper as I ever, of course but, as uncomfortable as you can imagine. I don’t know about you but, I absolutely hate putting on a tie and jacket….I HATE IT! I don’t know that I have ever been comfortable in a jacket and tie but, that is besides the point.

5:30 in the evening and I am downstairs, ushering the hotel staff around, meeting the servers, talking with the final setup people, ensuring the DJ has power and is setting up, working with dock attendants making sure the poker tables have arrived, getting the greeting stations ready, making sure the food is quality, checking out the bars and making sure they are ready and it couldn’t have gone any more smoother. In fact, a couple of times I had to pinch myself not believing just how easily things were coming together.

About an hour before or so, my helpers started showing up. I had Randy, Randy and Jamie from Austin Broker, John Oliveri, Jim Godwin, Brandy (sorry, can’t remember your last name Brandy), Tracy Medina and Patty from; uh-oh, I forgot what company they were from but, I am sure they will read this and comment so, they can tell you in their reply later, who were all very helpful but, after about 30 minutes seeing I had it all under the control, they all disappeared on me and headed to the bar…..lol. It’s all good because, it was all under control.

So, the party starts and people start coming in, things are going great. We are collecting business cards, greeting people, saying hello, bringing them in, showing them around, music is bumping, the poker tables are packed, drinks are pouring, food is getting out……wow, it was amazing!

As I walked around, I asked people how they were doing, everyone seemed to be having a great time. I reminded people to network, drop some business cards, talk with people, establish relationships but, have a good time!

The best part of the entire event was, when people walked out and were saying their goodbyes, I asked them was it worth it and, I didn’t hear a single negative word! Later when I had a chance to look through all the business cards I saw companies like Fannie Mae, Saxon, Old Republic and so many more, I can’t go through them all here and now and, I realized that if someone walked out of this party and didn’t make a contact that could change their business, well……..that’s on them because I have the business cards of each person who attended and I can assure you………$100.00 a ticket was cheap!

After the party, I thought the evening was over but, some friends and REOPro members had alternative plans.

Apparently everyone was headed to a club called Kinky’s. Yeah, I know….the name is a bit of a turn off….or turn on, depending on your persuasion however, off to Kinky’s I went. Now, to protect the innocent, I won’t say who I was there with but, that isn’t important, what you need to know is this club lived up to its name. The best part…..I was sooooo under dressed. You see, after the party, I went upstairs and put on some cargo shorts and polo. I was done for the night and wasn’t in the mood to try and impress anyone. When we get to Kinky’s, we see people in suits, and everything else for that matter and I know I stood out like a sore thumb but, I didn’t care. We get inside and let me just say, I was a bit taken back. Let’s see if I can paint you a good word picture.

The club was in a converted strip mall area where right across the street they had a store called, “Condom Sense” which was a retail shop for everything condom. Granted, I am all about adults being safe but, coming from my little town here in Hermitage Tennessee, I hadn’t seem something like that before. Goodness gracious, when Hustler opened a store in downtown’s club area many years ago, we had protesters and marches from local citizens who felt it was a disgrace to Nashville. My point is, I live in a very conservative area of our country and obviously more so than Dallas Texas and, was just a bit surprised at the neighborhood I found myself in at 1:00am Friday night.

Ok, so, were in line and the people we were with had a VIP table so we got ushered past the velvet rope into the club. Now, the best part is I am in cargo shorts and a polo…..ROFLMAO! Everyone else is still in their party attire and of course those who were regulars at the Kinky’s were in club clothes so, I stood out.

As you walk in, to the left these 2 girls are there scantly clad and looking like they may have just wondered in off the street trying to find shelter from their pimp. I am not exaggerating here, they were beautiful in a Delilah (biblical reference) kind of way. By now, the music is so loud your eye lids start pulsating with the beat and the crown is already so thick, you have to squeeze through them similar to how you squeeze water from a wash cloth. It’s no secret I am a big guy so, when I was walking past people my rear and belly seemed to carve a path like a Land Rover going 50 through a field of fully grown corn, not that I would know anything about that personally…..it’s just a word image. Here I am, bumping and grinding with every Suzy Q and John Q Smith I pass and I am not even dancing! Just between us, I think some of those people saw me coming and tried to get closer……yuk!

Now, because the night was filled with a little too much frivolity I can’t go into all the details of what happened and who was there but, I do want to tell you about 1 thing I saw that truly made me realize I was not in my element.

As I am standing up looking around the sea of people, I saw this girl floating through the crowd with a whip in one hand and her other holding onto something I couldn’t see very well. Looking harder into the pulsating disco lights I see this woman, riding a little old Mexican man as if he was a horse. The craziest part was, he had on a full saddle and little horsey legs in the front. TALK ABOUT KINKY!

Well, needless to say, the night was filled with wonder and yes, Kinky’s was more of an experience I have had in a long time. In fact, just to tell you how dull I life I life, the closest thing I have done lately that even comes close is when I took my niece up to see Mammoth Cave in Kentucky last summer.

I am very grateful to everyone who helped make the night a success, especially Christian Broadwell of RealtyPilot.

Christian, you are a good friend, a great business partner and I am grateful that I was fortunate enough to meet you. I can’t wait to see what our future holds and I look forward to making this year one for the record books.

God bless each of you and let’s get to work!

Read more…

Housing is a right?

Are Liberal Progressive Government policies pushing America toward a Federal takeover of housing?

I know for many of us, this question seems crazy however, make no mistake, Progressive Liberals would love to see America provide housing to each and every person in America, citizen or not. In fact, Franklin D. Roosevelt introduced this idea to America by including, “the right of every family to a decent home” as his 5th right in his proposed Second Bill of Rights.

So, would it be possible for the Government to just take over the housing industry and, promise everyone a home? It is not only possible, it’s happening and it’s taking place under the guise of “Housing Recovery” and the instrument which will be used to do the takeover is TARP.

Back in October of 2008, TARP was used to stabilize the financial institutions after their delinquent mortgages they were holding came close to causing these banks to melt down. What many people don’t realize is, this meltdown was a direct cause of Government regulation. I don’t want to bore you with all the details however, all you need to do is bring up Google and type, Community Reinvestment Act. Read for yourself how the Fed’s forced lenders to adopt risky loan practices and allowed community organizations similar to Acorn to dictate to these services how many loans they had to make and to whom they went to. I know that sounds crazy…..and, I am sure I am sounding like a broken record but, these banks and servicers didn’t make risky loans because they were greedy, like the media have you believe, they did it because they were mandated to do it.

Why would the government allow citizens to dictate how a bank would give out loans? It’s all part of the progressive evolution of this country. It was set into motion by F.D.R. Progressives knew they couldn’t revolutionize our country, Americans lover freedom too much however, they knew they could slowly progress us away from our “inadequate” Bill of Rights and Constitution with small steps and Freddie Mac, Fannie Mae and the Federal Reserve were all part of the larger picture. To put a chill down your spine, let me give you a quote to further my point.

Franklin Roosevelt said in his radio address to the nation in January 1944.

“This Republic (the United States of America) had its beginning and, grew to its present strength, under the protection of certain inalienable political rights – among them the right of free speech, free press, free worship, trial by jury, freedom from unreasonable searches and seizures. They were our rights to life and liberty.

As our nation has grown in size and stature, however, - as our industrial economy expanded these political rights proved inadequate to assure us equality in the pursuit of happiness.”

You may not have known this was an agenda item on the Progressive left but, let me assure you, it is. It is my opinion, Progressive Liberals are using this Housing Crisis to their advantage. In fact, I am of the opinion that this crisis is engineered by Progressive Liberals. For those of you reading this thinking to yourself, it’s not possible, it could never happen, well……have you seen this?

http://banking.senate.gov/public/_files/ChairmansMark31510AYO10306_xmlFinancialReformLegislationBill.pdf

It’s a new bill being floated around, pay special attention to Title III, TRANSFER OF POWER TO THE COMPTROLLER OF THE CURRENCY, THE CORPORATION, AND THE BOARD OF GOVERNORS. This bill is laying the groundwork for a true and complete takeover of the financial institutions and likewise, as exemplified with Bank of America, the Government will mandate to banks that they have to “forgive debt” or “lower payments”. All that sounds good on its face value but, who do you think is paying for all this “forgiveness” and “lower payments”………………………YOU ARE, THE AMERICAN TAX PAYER.

Now, I do believe that President Obama is a FDR Progressive Liberal. I can give you quotes and examples of this, just let me know if you need them. Because he is a FDR Progressive Liberal, he believes everyone should have a decent home and he is going to use the American Tax Payer to redistribute the wealth of this country through the Progressive Liberal engineered Housing Crisis to make it happen. Did you read what the White House said yesterday? Just in case you missed it, let me tell you.

“The White House plans to announce on Friday that it will require lenders to lower the mortgage payments of some unemployed workers and encourage lenders to eliminate some principal debt of homeowners who owe more than their home is worth, sources familiar with the plan said Thursday.”

http://www.foxbusiness.com/story/markets/industries/government/update--white-house-announce-housing-aid-friday--sources-493713530/

All of that sounds great till you figure out who is paying for it. Make no mistake, I am all about helping the down and out, let’s not forget, I know what it is like to live in a shelter for a year in six months. I know what it’s like to have a single parent with 2 jobs and you as the eldest child had to take care of younger sibilings, I know what it’s like to live with 5 people in a one room apartment in the worse part of town you can imagine…I know because I have personally been there. In fact, I still have family members that are still living that life and my heart breaks every single day for them but, no matter how hard things get, no matter how bad the outlook appears today, we are Americans, we love Freedom and Liberty and Roosevelt was wrong in 1944 and his Progressive Liberals are wrong today.

Homeownership is not a right, it is a privilege, an honor, an accomplishment, you have to work hard to own a home. In fact, because homeownership has been so easy for so many, I walk into homes that have been abandoned and abused because the homeowners didn’t care or couldn’t afford the maintenance on the home, either way…..it’s wrong!

Read more…
In an effort to disclose, let me first tell you that I am not a Bankruptcy Attorney….or any other type of Attorney for that matter. This blog is not to be interpreted as legal advice because, it’s not. For legal advice you need to speak to a law professional. This blog is just my opinion and should be consider as nothing more. In my opinion, the concept that Bankruptcy guarantees homeowners a stop to foreclosure is a myth! Let me explain why I have this opinion. First off a creditor, your bank, can petition the court to remove the stay you received as protection from creditors when you filed for bankruptcy protection. In many cases, the moment the bank learns you filed for protection, they run to the court and ask for the stay to be lifted. So, why would a court ever agree to this course of action suggested by the bank? A simply reply, is because the bank has the right to ask and have their request considered fairly among the evidence provided to the court. It also depends greatly on what type of bankruptcy protection you are under, if it’s Chapter 7…..most likely the bank’s request to lift the stay will be granted and that’s because Chapter 7 bankruptcy isn’t designed to protect you from foreclosure, sad but true. If you want a much better chance at protecting the home from foreclosure, you may want to consider Chapter 13 which puts you on a repayment plan and allows you to pay off your debts over time and therefore, gives homeowners a better chance of protecting the home however, either way….nothing is guaranteed. Now, just because the bank request the stay to be lifted, it doesn’t necessarily always mean it will be. The truth of the matter is, your Attorney will have arguments to the court, on your behalf, to keep the protection in place but, even then, nothing is guaranteed. My point is, just because the bank request the stay to be lifted and just because your Attorney is going to argue against it, nothing and, I do mean nothing ever guarantees you will be able to stop foreclosure. It simply boils down to a variety of conditions such as, hardship, skill of the Attorney and the willingness of the court. Unfortunately, many times the homeowners’ walk away wishing they never started the process from the beginning. Ultimately all bankruptcy protection does is buy you some time. You will ultimately still find yourself across the table negotiating with you lender trying to save your home. Only this time, you are also having to pay Attorney fees. A Short Sale may be a better option.
Read more…
NEVER PAY a Mortgage payment to someone who comes to your door!!I posted a blog recently on AR regarding Titanium in the news and it as well as some recent happenings prompted me to write this post...To minimize potential fraud by imposters, representatives will not be permitted to accept mortgage payments or any other money from borrowers...this is except from recent article about Freddie doing loan mods door-to-doorLas Vegas has become known for having lots of scammers showing up at the door and calling people to try and get their $ by whatever tactic they can and there are still people falling for the scams and giving people money up front before they even check the person or company out.I recently had a couple ask me if they could give me their mortgage payment to turn into the bank...NO!!!Unfortunately, I have also been meeting a lot of people who have been scammed out of thousands of dollars by loan modification companys as well.NEVER PAY a Mortgage payment to someone who comes to your door!! Spread the word!
Read more…
Read the whole article from RISMEDIA @ Op-Ed: 60 Million Mortgages May Have Fatal FlawsInteresting Report....RISMEDIA, September 29, 2009-The latest chapter in the mortgage meltdown is being written in court, as one by one, judges are putting a halt to foreclosures. The latest was a recent Kansas Supreme Court case. In Landmark National Bank v. Kesler, the court held that a nominee company called MERS had no standing to bring a foreclosure action.Nor was Kansas the first. In August 2008, Federal Judge for the U.S. Bankruptcy Court for the District of Nevada ruled MERS had no standing. "Indeed, the evidence is to the contrary, the Note has been sold, and the named nominee no longer has any interest in the Note."Read more: http://rismedia.com/2009-09-28/op-ed-60-million-mortgages-may-have-fatal-flaws/#ixzz0SVrf1JSYIn each case, the reason stems from a fundamental misstep in the handling of Notes and Trust Deeds that runs contrary to established court policies which require that the real parties identify themselves to the court. Each of these cases involved MERS and, in each case, the courts' rationales were almost identical.First, a little background. Over the last 40 years, mortgage lending has evolved from a bank holding the mortgage to the mortgage being bundled and sold as part of an investment pool, usually in the form of a bond.As a registered security, the Note is a negotiable instrument, like money or a cashier's check, and under securities law that Note must be given to the investor. In this case, mortgage backed securities, (MBS) were bundled together in a pool and shipped to...well, we don't really know.One of the impediments to an MBS is the need to file assignments for the beneficiaries in each county each time the mortgage is resold. And apparently, no one holds them for very long because most have been passed around several times.In order to avoid the logistical nightmare of trying to maintain a public chain of title, the biggest lenders joined MERS, Mortgage Electronic Registration Systems, Inc.MERS was created with the sole intent of evading the recording fees due to the county in which the security is located.But, as there often is with a BIG IDEA, there were also unintended consequences. Only now are they coming to light. Until MERS was challenged in a foreclosure proceeding, no one had taken a look at the law.MERS lost track of the Notes. In some cases, according to my research, they deliberately destroyed them.Every thing was fine until the economy contracted. MERS began foreclosing on delinquent home loans and then one day; someone said "show me the Note."In reviewing the judge's rulings in the above matters, several key points have been determined:• MERS is not the beneficiary of the Notes and has no skin in the game. It did not lend any money, collect any payments or do anything more than track the sale of the securities.• Judicial procedure requires that parties identify themselves and prove their standing.• Splitting the Note and Trust Deed leaves no party with standing to foreclose. The true holder of the Note, the security, paid the lender so the lender is covered. The true holder of the Note was insured by AIG so they are covered. AIG and the banks were bailed out by taxpayers. So, unless the American tax payer can produce a "blue-ink" original Note, no one has standing to foreclose.• Allowing a foreclosure to proceed without the original Note places the homeowner in double jeopardy. If the original Note were to surface, the holder of the Note would be entitled to payment, but from whom? The borrower is still on the hook.MERS currently holds 50 to 60 million loans so this is no small matter. And, just because they have lost repeatedly doesn't mean they will give up. They will keep right on foreclosing in hopes that the homeowner won't fight back and, in most cases, they won't be stopped.[Editor's Note: RISMedia has been in touch with MERS for a response, which will be running in our Wednesday edition of the e-news.]Read more: http://rismedia.com/2009-09-28/op-ed-60-million-mortgages-may-have-fatal-flaws/#ixzz0SVswwhLq
Read more…

Top 10 Ways to Know You’re Buying A Dump

10) A thousand business cards are on the kitchen counter, the property has been on the market longer than normal, and the listing agent says he’s looking for offers. It looked good on paper, but nobody felt like doing anything after seeing the house. (Note to Seller: wake up and smell the business cards.)9) It’s a bank-owned property on the market for over 30 days (Substitute the appropriate “expiration” date for your market). Unless this property fell out of escrow with a Buyer who could not perform, beware. Bank-owned properties in many inventory-depleted markets do not last. Caveat: If it fell out once because of the Buyer and not because of the property, you may have an opportunity to grab a deal that others are assuming is a dump.8) A $200,000 listing is on the market for over 30 days (Substitute the proper value threshold in your market). Cash is King and in any market, and cash buyer activity is red hot below $200,000 in my market. If you see a house under the threshold getting passed up by the Kings, it’s a sign they smell something foul. Perfect segue to …7) You have to hold your nose to tour the property, or worse...1) Buyer hits an odor wall and can’t go any further, does a 180 and bolts for the exit.2) REALTOR does the same. Now we’re talking about a real estate professional whose nose has been around the block a few times.3) Contractor’s eyes start to water. He has no olfactory abilities. His nose shut down years ago and now his eyes are complaining at this house.6) The property is listed 30% below comps. Honey, it ain’t comparable. It does not compare. It can’t compete. It’s screaming for a professional Buyer, so if you’re not one, think again. If it’s a single family house, you’re looking at a sinkhole, parking lot, cracker box, meth lab, land lease, money pit, or animal shelter. If it’s a condo, you’re looking at an HOA with no reserves (money pit again), high delinquency, high number of rentals, majority owner, or major lawsuit.5) Three Lenders Have Told You No To This Property. Did you get a clue when the first one said “Sorry, I can’t take your money?” The problem is they have to give you money to make their money, but the collateral isn’t there. If your lender isn’t interested in the property, you shouldn’t be interested.4) You’re an FHA Buyer offering below list and you get accepted! (Has this actually ever happened?) This is one of those times when perverse logic, “If you like me so much, why would I possibly like you,” actually makes sense. Sorry FHA Buyers, but if your agent hasn’t told you it’s rough out there, I’m here to tell you.OK my list came up short. What can you add to the “Top 10 Ways to Know You’re Buying a Dump.” Looking forward to the stories - I’ve saved the top three spots for you!
Read more…

Bank A, Neighborhood Z

As a follow up to my earlier blog: "The Ocean Between Buyer and Seller", here is my letter to the bank decision makers, arguing for the acceptance of a price which is $165,000 (34%) lower than the original asking price. This, along with the comps of this neighborhood and the adjoining neighborhoods, pictures and video of other, better priced listings will accompany this presentation tomorrow. Please give me any tips that may help me offer a more compelling argument!Bank A, Neighborhood Z6 Month Analysis:Homes Available for sale: 20Expired Listings: 26Withdrawn Listings: 29On Hold (don't show): 1Pending Sale: 1Sold: 1We have a unique situation in Neighborhood Z. The community is incomplete; only about a third of the lots have been built on with two thirds of them still vacant (raw land). Twenty properties are currently available for sale. Four of these available properties are Bank owned and two of them are short sales. In the past 6 months this community has seen a total of 26 listings expire and 29 listings withdrawn.We could only find one property sold within the last six months. The listing agent of that property claims that he only inserted the transaction in the MLS as a favor for an out of state builder who sold the property to one of his out of state investors. The property shows a sold price which is about twice the amount indicated by any of the current listings. We've tried to reach that builder repeatedly, but as of yet we have not had any success.The only property that has a contract on it and is waiting to close is fairly similar to ours in terms of price and size, although it's somewhat smaller. The current pricing on it is similar to ours and the original price was similar to our original price. We will not know what it sold for until it actually closes, if and when it does.There is another available property, also bank owned, which is 200 sq. ft. larger than ours, but priced for $50,000 less than ours. Most likely that property will sell first, unless we lower our price first. If we used the same price per square foot as that home, our price would be $333,333. The $325,000 offer we received today, although significantly lower than our asking price, is right in line with the market price.When the property was appraised last month for $390,000 (was the appraiser local and familiar with our market, or an out of the area appraiser?), this lower priced competing listing was not yet on the market.This neighborhood is in close proximity to Neighborhood T, U, X and Y, which are all finished neighborhoods of a higher caliber offering homes at similar prices and still garnering a very low level of transactions. Because "Neighborhood Z" is only one third complete and has so many competing properties for sale and virtually no sales activity, my fervent recommendation is to accept, or come close to the Buyer's offer price.Mirela Monte, Your Myrtle Beach Real Estate Connection
Read more…
Agents Using Cheap Lockboxes: A Legal Liability Waiting to Happen?Our MLS lockboxes are very expensive - they cost just above $100. They are computerized lockboxes that take a reading of every agent showing the property. The listing agent can get on the Supra Website (the Lockbox Vendor) and ascertain exactly when the property was shown and the agent who showed it.The agent's name, telephone number and e-mail address is included, so the listing agent can quickly follow up on the showing and see how it went. Staying on top of the showings has been very beneficial to me as a listing agent. Possible problems are ascertained early on and corrected. Objections are addressed promptly and offers are encouraged more efficiently.Our MLS lockboxes are extremely safe: they are programmed to allow access into the property only between 9am and 9pm. Unless the person trying to gain access to the lockbox is a registered, active board member in good standing, he will not be allowed to penetrate the lockbox, which is indeed impossible to break into. Each agent is assigned a special Supra Key that has several layers of pass codes and protections, so that a lost key is virtually useless to anyone else other than the agent the key was issued to.In spite of all the advantages a computerized lockbox confers, many agents in our area do not use them due to their high cost, opting instead for the very unsafe lockboxes priced under $20 and easily available at most hardware stores. These cheap lockboxes have a code you can program for access, a series of three or four letters or numbers. If you give someone the code, they can come back again and again and gain access to the property at any time. If the numbers are not rolled back after the showing, any intruder can also gain access to the property.In my opinion these lockboxes are extremely unsafe, and I will not use them on any of my listings. They are a legal liability waiting to happen and I am perturbed by their frequent usage in our market area. I am amazed that some very expensive homes with high end furnishings have these flimsy lockboxes on. I wonder why the Sellers are not asking their Agents some hard questions...What are your thoughts on this subject?Mirela Monte, Your Myrtle Beach Real Estate Connection Join the Optimist Group!
Read more…

How much loss will a bank accept?

Have you heard that banks will accept a certain amount of loss on their default real estate portfolios as a rule of thumb across the board? Have you heard that all banks are willing to take 20% less than the listing price?. Have you heard that all banks over price their listings because they know they are going to take a less on their properties? If you believe any of these rumors, urban legends, or false hoods then, you have just been suckered. Let me explain how banks determine their price when they go to list a home. First, they order an appraisal as soon as a home goes into foreclosure or as soon as they receive the first offer on the home. In an effort to be clear, let me tell you what an appraisal is. An appraisal is an estimate of your homes Market Value by a professional. It is important to understand the difference between Market Value and Price. Market Value as defined by the USPAP (Uniform Standard of Professional Appraisal Practices) says, "...a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal." So, in other words, it's the opinion of a trained professional as to how much the property should sell for in a fair market. So, I bet now you are wondering how these appraisers analyze a property in such an un-certain market as that we are in now, right? Well, that can be answered by the definition of Market Value used by the residential mortgage financing industry and it says, " ...the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale." So, in other words, adjustments for any reason, are made to the comparables sales price not the subject property. Ok, I am sure this may be confusing but let me explain it this way. You want to put an offer on 1000 Money Pitt Lane but the asking price is $150,000.00, which you think is too high because it's a foreclosure. Well, the bank isn't going to care if it's a foreclosure, short sale or once belonged to one eyed, one horned flying purple people eaters because, they have comparables, from the appraisal, showing that similar homes that are true comparables, alike in almost (no property is ever the same due to it's uniqueness and immobility) every way sold for or above $150,000.00. So that offer of $115,000.00 you put in thinking that banks are taking less because that is what they do, is foolish and a waste of everyone's time. Well, maybe the Appraiser was smoking some serious blow that day and you (as the buyer) know that the home just isn't worth $150,000.00 so you want to stand by your offer and have it submitted. Truth is, the bank isn't just relying on the Appraiser to get the appraisal right. By the time you submitted your offer, they have accumulated approximate 2 appraisals, 1 from the previous homeowner and 1 upon foreclosure, and they have had a Realtor provide a BPO (Broker Price Opinion) monthly for the time before it hit the market and while it was on the market. My point here is, the bank is going to know the value of the home, the monthly average depreciation for the neighborhood and how long they are willing to wait for the "right" offer to come in the door. On average, per my friend at one of America's largest banks, they have 5 price analysis on a home before it is every put on the market so, they know, you can bet on it. Ok, so now that I have explained that, can you see why thinking a bank doesn't know how much a home is worth is just silly. Granted, banks are dumping some properties due to the large amounts of real property on their books however, that isn't because they have made some secret policy that they will accept a general loss on all their properties. In reality it's more about that specific home and how much loss they are willing to take and, that isn't something they are advertising. So, if you come across a great deal, then most likely you were at the right place at the right time with a Realtor who was looking out for you versus, anything else.
Read more…