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The Wisconsin housing statistics are now in for June of 2012. Here is an excerpt from what the Wisconsin Realtors Association (WRA) had to say:

“Wisconsin home sales continued to grow at a robust pace with sales of existing homes up 19.3 percent in June over June of last year... June median home prices increased 1.4 percent to $142,000 relative to the same month last year which is the fourth straight month of increasing median prices."

“In a national economy that has not yet seen the kind of growth rates that typify most economic recoveries, it’s encouraging to see such strong growth in home sales over the last 12 months,” said Rob Keefe, Chairman of the WRA Board of Directors.

Below are the number of Home Sales and Median House Prices for the state of Wisconsin, Rock County, and Dane County. These stats include Janesville and Madison. Feel free to contact me if you have any questions pertaining to these figures. As you probably have heard, home sales have been increasing substantially all year. Both Dane and Rock counties are showing marked improvements in the number of homes sold.

If you would like some insight into how much your home is currently worth, I would be happy to provide you with a free comparative market analysis. This is a report that gives a close estimate to what your home might sell for in your current local Wisconsin real estate market. Has your home value fallen below what you currently owe? A short sale may be right for your situation. Visit the following page on Wisconsin Short Sales.

In East Palo Alto  from Jan 1, 2012 until June 30, 2012 there were:

36 closed short sales

20 closed bank owned homes

Total sales during this time period were 96

Total % Short Sales: 37.5%

Total % REO Sales: 20.8 %

Total Percentage  East Palo Alto Distressed Properties: 60.7%

60.7% of all East Palo Alto sales being distressed is enough to still have major effect on the overall market. However, as inventory is still so low unless these homes are truly physically distressed, which is more common with bank owned homes at this level, it probably will not have a long lived effect. It is interesting to see there are almost twice as many short sales as bank owned sales which has also happened in other cities. 

If you have any questions about short sales or foreclosures in San Mateo County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

DRE  01191194

I have been working on a Redwood City short sale with Chase since last September. Now if this were 2009 this would be more like dog bites man rather than man bites dog. But it is 2012 and most short sales do not take so long. However, this one has a 3rd loan for a lot of money and it slowed the process down.

Selling the property at market value was not that hard, despite being on a fairly busy street. We got an offer for $510,000 and a BPO for $510,000 so it started out ok. By December I had approval on the first and second with a payoff of 6K to the third who had previously owned the home and had a $120K note on the property.

Third lender said no way. He wanted 65K as a note from the seller or cash from the buyer.

Buyer and seller said no. Buyer walked.

House went back on the market and we got another offer right away. This was February.

Chase did a new BPO and said the value had increased to $560,000. New buyer agreed to pay the 3rd loan 50K plus $560,000 to chase. After several months Chase said no, they were not going to allow the third lender to get so much money. That was May.

We were then told to try submitting a new offer to see if we could get a different answer. Well that sounded like the definition of insanity to me, but we tried. So we submitted a new offer of $562K plus $50K going to the third lender. Keep in mind that every month during all of this we had to get Chase to postpone the trustee sale.

So several weeks ago the new offer for the Redwood City Short Sale got to the new negotiator who ordered a new BPO. She said the BPO's value had not changed again and the offer was fine as it was. I asked about the issue of the third lender getting so much money and she said she thought it would be fine.

I was doubtful, but she was right. Today we got a Short Sale Approval Letter!!!!!  I never believed this would happen but I persisted anyway and it was worth it.

So now my Redwood City Short Sale has Chase Approval, my sellers can get on with their life, the buyer has the home of his dreams, the third lender who is a human, not a big bank has at least a good portion of his money back, and Chase can get a bad performing asset of their books as well as market value for the home. We all won on this one.

If you have any questions about buying or selling a short sale in San Mateo or Santa Clara County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

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Rock Realty Client Testimonials

"Mike Collins helped us sell our home, he was a very nice guy and always there when we had any questions or concerns! Mike went above and beyond and even helped paint the house when there was a time crunch for the inspection. We appreciated all that Mike did!"

Katy K.(Janesville, WI)
Rock Realty Client

Rock Realty Client Testimonials

"My first listing contract (with another agency) expired without a single showing. I contacted Mike Collins hoping to get some straight advice about whether he thought the property would ever sell versus letting the lender foreclose on the property and save my mortgage payments for legal counsel. He was upfront from day one. He told me that it would take a while and that I'd probably have to hold it through the winter (I called him in September) but it would probably sell in the spring. His honesty made me immediately willing to hire him. He found a buyer in May and worked with my lender to close the sale in record time."

Drew V.(Marshall, WI)
Rock Realty Client

It's time for the short sale/vs REO round-up for the first half of 2012. Today I will do the entire county, and then will break down the numbers by city.

So, in San Mateo County from Jan 1, 2012 until June 30, 2012 there were:

517 closed short sales

430 closed bank owned home

Total sales during this time period were 2520

Total % Short Sales: 20%

Total % REO Sales: 17%

Total Percentage San Mateo County Distressed Properties: 37%

This is still a significant number in terms of percentages and at this percentage they are bound to have an effect on the overall market.

If you have any questions about short sales or foreclosures in San Mateo County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

DRE  01191194

As a Menlo Park Short Sale Agent I get asked this a lot. My answer is a definitive sort of, especially if it is a Chase short sale. 

Here is how it may make a difference.

Some homeowners owe more on their homes than the home is worth, the definition of being underwater. The home is not going to sell for what it is worth, it will sell at or around market value. The bank generally understands that. The bank as representative for the investor on the loan wants to lose as little money as possible, but knows there is going to be some loss.

The banks have procedures in place to approve short sales. At Chase they have the number of people who have to approve a short sale broken down by the amount of loss, not by the value of the house. 

So if the loss is $250,000 or less, only one lowest level of negotiator needs to approve. If the loss is $250,000 to $350,000 the offer goes to the 1st negotiator and then a negotiator one level up. At $350,000-$450,000 it goes to the first 2 plus one level up in management. And so forth.

So the greater the loss the more people have to approve before it even gets to the investor and/or mortgage insurance company. Each person who needs to approve can ask for more documentation or just ok the file. All of this takes time.

The bottom line, the bigger the loss, the more time you should expect for approval and the more doumentation you may need to provide.

So knowing that, don't try to keep up with the Joneses. Just because your best friend's short sale was approved in 3 weeks, and you are still waiting at 8 weeks, it does not mean you got the B team looking at your file. You just may have more managers that have to approve that are gumming up the process.

If you have any questions about short sales in San Mateo or Santa Clara County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Many homeowners who are having trouble paying their mortgages will stop opening their mail from the lender. It is understandable to feel, what is the point? I can't pay and nothing they say to me will change that. However, if your lender is Chase you may want to open that letter.

Chase is giving relocation assistance to some homeowners who are in default if they agree to short sell their home. The incentives can be anywhere from $2500 to $45,000. Not everyone will get this incentive, and there is no uniform way that these incentives will be offered. In other words, Chase is not saying why one borrower gets an incentive and another does not.

So if you get a letter from Chase, open it up. It may say you have won the lottery. You will need to find an experienced Sunnyvale short sale agent to help you sell your home, or Chase will give you the names of some who can help you. You then list your home as a short sale, accept an offer, have it approved by Chase, and at closing you get your relocation assistance.

It is a pretty good deal if you ask me, an experienced Sunnyvale Short Sale Agent.

If you have any questions about short sales in Santa Clara or San Mateo County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

It is no secret Mountain View as well as most of the Silicon Valley is experiencing multiple offers on homes for sale. While this is great for sellers, it can be extremely frustrating for buyers, and their agents. After losing 5-10 homes a buyer will unquestionalbly start to doubt their agent. They may feel that their agent is doing something wrong and maybe it is time to find someone else.

Will this work? Maybe, but there are limits to what a Mountain View real estate agent can do. A lot of winning an offer is up to the buyer, so maybe you need to look in the mirror first, before changing your agent.

In a real estate offer the buyer has some control over what happens. Here are some things you should do:

1. Are you making realistic offers? If a home is listed for $475,000, you know there are 10 offers, and you offer $470,000, what do you think is going to happen?

2. You have been pre-approved for $800,000 with 20% down. You only have down payment for 20% of $800,000, so you need to only offer a price that will make it through an appraisal. However, most homes are selling for prices higher than they can appraise for, so what do you do? You will need to find a less expensive home so that you have a 5-10% reserve of cash over the price where you think the home will appriase, i.e., you need to find a home where you can put down 25-30%, not 20%, so that when it does not appraise you have the cash to cover it.

3. The seller has completed a a full disclosure package, including a property inspection, termite, roof, chimney inspection, and you ask for a 17 day property contingency period. I am not saying you should not have your own inspection, but keep the time to a minimum.

4. You have a pre-approval letter from Happy Birthday Mortgage with nothing from an underwriter, and nothing from a direct lender. I don't care if the mortgage broker from Happby Birthday Mortgage is your mother, it is not going to fly. Get a full approval from a direct lender. It is hard enough to compete against a cash offer, but to try to compete with a pre-approval letter that may not be worth the paper it is written on is no way to act in a competitive market.

5. You are making an offer on a short sale and don't offer to open escrow until after bank approval. While that may be ok in a buyer's market, when there are so few homes for sale, and so many hopeful buyers, it is not going to work anymore.

So look at your self first. Tomorrow I will talk about what your agent can do to help your offer win.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

D.R.E. 01191194

The landscape for short sales is changing. As the inventory of homes for sale stays at historically low levels all over Silicon Valley, short sales are gaining in popularity for buyers. Added to that is the fact that short sales, while not a sure thing, are getting approved at increasingly higher rates.

Short sales can still be time consuming and frustrating, but when there are so few choices for buyers they begin to look better. So if you are thinking of selling your home as a short sale here are some tips to make things smoother.

1. PICK AN EXPERIENCED SHORT SALE AGENT TO LIST YOUR HOME. IF YOU ALREADY HAVE A RELATIONSHIP WITH A REALTOR WHO IS NOT EXPERIENCED WITH SHORT SALES ASK THAT AGENT TO CO LIST WITH AN AGENT WHO KNOWS HOW TO PROCESS AND NEGOTIATE A SHORT SALE.

2. Price your home realistically, not at a rock bottom price. The market is already hot and and appreciating. Banks are not stupid. If the home is worth $600,000 and you list it for $400,000 and get an offer for $500,000 it is unlikely to get approved.

3. Have the buyer put the deposit in escrow upon acceptance by you, not at acceptance by the bank.

4. If possible get inspections before you put the home on the market. It will make the transaction go much smoother.

5. Talk to your lender before putting the house on the market. find out what they need for the short sale and get it ready to send as soon as you get the accepted offer.

6. Enjoy your short burst of popularity. In this market everyone loves a seller, even a seller of a short sale, so enjoy.

7. Hopefully in 2-4 months you will hear the words from your agent, "Congratulations, you are off the hook."

If you have any questions about buying or selling a short sale in San Mateo or Santa Clara county please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

I am helping out on a short sale in Redwood City where Chase is servicing the first and second loan. What this means is that the owner has first and second mortgages that were originally gotten from Chase. These loans were then sold to investors and Chase maintained the servicing. This means that ultimately Chase no longer makes the decision about whether or not to approve a short sale. The problem is there is also a third lender, and the third lender wants a lot of money to approve the short sale. The buyer agreed to pay the third what he wants, but the investor for Chase's first loan said no way. I guess from that investor's perspective if they foreclose they do not have to pay off the second or third and they get to keep all the money. Maybe they will make more if they foreclose. 

But maybe they won't. And in any case foreclosures are complicated and costly, and we have a ready willing and able buyer. Chase seems to have tried to convince the investor to take the offer. The Short Sale Department at Chase has even told us to submit another offer in an attempt to change the investor's mind.

I do not know if the new offer will make any difference, but I am immensely impressed with Chase's efforts on our behalf. I obviously am not privy to all of the number crunching as to who gets what if there is a short sale vs a foreclosure, but I do know at least Chase is really trying to help the borrower avoid foreclosure. That makes me feel pretty warm and fuzzy about them today.

If you have any questions about short sales in San Mateo or Santa Clara County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

It is no secret that the market in Silicon Valley is crazy. The inventory has never been lower so the competition for homes is  fierce. For example, Taylor Morrison is opening up a new town home development in Sunnyvale in May and they already have 300 people on the waiting list. Homes in Palo Alto are sometimes getting over 10 offers. 

If you are a seller you may be trying to acomplish a short sale, and life becomes complicated with all of the details of supplying documents, giving the bank what they want, when they want it, and living by their timelines.

Maybe you are trying to buy an reo and you have to sign documents that make you do everything short of giving up your first born.

So the big question is "Do you want to buy a sell a house right now?" If then answer is yes then you need to listen to the person saying "because I said so." Whether that person is the listing agent for a home you want to buy, the bank who needs to approve your short sale, or the bank who owns the foreclosed property you want.

Follow directions, exactly. If the directions say fill out the disclosure package completely, fill it out. If Bank of America says they want the first 5 numbers of your social if you are trying to buy a short sale then give it.

This is not an environment for everyone, and it will not last forever, nothing does. But if you want to buy right now it is best not to have issues with authority, just do what is asked of you. This is not to say that you should go into this blindly or give up your inspection rights, but it does mean you need to follow directions and do what is asked of you.

If you are selling short, do what the bank wants. You have the right to accept or reject their their conditions but you do not get to tell them what they need to do.

If you are selling in a hot market and it is a sale with equity, don't be a bully. Give clear directions and be grateful for the people who want to buy your home.

If you have any questions about buying or selling a home in Silicon Valley please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

I just closed a Wells Fargo Short Sale that is not typical. It was a nice 3 bedroom townhome in North San Jose, close to Santa Clara. The owners were divorcing and neither could afford to buy the other one out or afford the property alone. This constitutes a hardship in most lender's minds. I have closed other Wells Fargo short sales with similar circumstances. The current owners had been able to pay the mortgage but they will not be able to in the near future because of an impending change of circumstance. These owners were current on their payments, and were hoping to sell short and then finalize their divorce.

So last fall I put the town home on the market, got a good offer, and submitted it to Wells Fargo. It was promptly denied. I was told that while this was not Wells Fargo policy, the particular investor on the loan (the person on entity who purchased the loan from Wells Fargo, and hired Wells to keep servicing the loan) had a policy of not allowing short sales unless the borrower was behind in their payments.

So, my clients stopped making payments for a few months and we put the home back on the market. We got another offer for the same price and 2 months later got an approval and closed escrow in 30 days. 

So here is what happened to the investor: They lost 5 months of payments of about $4000 a month, so $20,000 of missed payments for the same price of the home. Call me crazy, but that make no sense to me. Let me re-iterate:

THIS IS NOT THE GENERAL POLICY OF WELLS FARGO SHORT SALES.

So, if someone owed me money and I had the chance of recovering 70% of it, or 70% minus $20,000 I would go for the straight 70%. But maybe I am greedier than that investor.

If you have any questions about short sales in Santa Clara or San Mateo Counties please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Inventory is down in all segments of the market in the Silicon Valley and multiple offers are driving prices up. However, there are still short sales, and in some areas they make up a good percentage of the homes for sale. Here are the numbers:

Palo Alto: Single Family Homes and Condos for Sale: 48 Short Sales: 0 Percentage: 0

Mountain View Single Family Homes and Condos For Sale: 39 Short Sales: 2 Percentage Short Sales: 5.1 %

Sunnyvale: Single Family Homes and Condos: 62 Short Sales: 10  Percentage Short Sales: 16%

Cupertino: Single Family Homes and Condos:  39  Short Sales: 1  Percentage Short Sales  2.5%

Santa Clara Single Family Homes and Condos: 58  Short Sales: 19 Percentage Short Sales: 32.8%

Milpitas Single Family Homes and Condos : 56 Short Sales: 23 Percentage Short Sales: 41%

San Jose Single Family Homes and Condos: 981 Short Sales: 237 Percetnage Short Sales: 24%

Morgan Hill: Single Family Homes and Condos:  119  Short Sales: 17 Percengtage of Short Sales: 14.2%

Gilroy Single Family Homes and Condos: 123  Short Sales: 38 Percentage Short Sales: 30.9%

So the ciites with the highest percentage of short sales are Milpitas with 41%, Santa Clara with 32.8%, and Gilroy with 30.9%.

If you have any questions about buying or selling short sales in Santa Clara or San Mateo County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

The real estate market in the Silicon Valley is very heated up this days, but there are still plenty of short sales being offered. Many of these short sales are in higher price ranges that have previously not seen a lot of short sale activity. What that means is that agents who do not have a lot of experience with short sales are making offers. Because the inventory is so low, most of these short sales are getting multiple offers. So if you are an experienced agent but not with short sales, or a buyer here are some things you need to know:

1. Don't low ball. The bank won't accept it and you will have plenty of competition from buyers wanting to pay market value.

2. Follow all of the instructions the agent gives on the MLS. If they say email instead of call, SEND AN EMAIL. Do not pester the agent with multiple calls a day. Your pre offer behavior is a sign of how you will act during the long short sale process.

3. Fill out the short sale addendum carefully. The addendum allows for the deposit and contingency period to start after bank acceptance unless you change it. CHANGE IT!!!!  At a minimum you should put the deposit in escrow immediately. If you really want the home I would also recommend offering to do the inspections right away instead of waiting for bank approval. It is a risk to the buyer in case the bank does not approve, but it is better than waiting 1-3 months for an approval and then finding out the home has more repairs needed than the buyer is willing to make.

4. The home is being sold "As-Is" Don't ask for repairs.

5. Don't ask for buyer credits unless it is an FHA loan. Banks are most likely going to reject the request for credit and if your buyer needs to have it or they walk it does not put you in a good position.

6. Don't change the title and escrtow company. The seller's company has already done a lot of work and has a relationship with the listing agent.

7. Give at least 90 days for approval on the short sale addendum.

8. Present a great case on why your client is able to wait for short sale approval.

If you have any questions about short sales in San Mateo or Santa Clara Counties please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

I just got approval on a Wells Fargo Short sale in San Jose. It was both a long and short road.

The long road first:

Town home put on the market in October of 2011 at $575,000. After one week we received an offer for which the seller accepted and it was sent to the bank.

Sellers were not behind on payments but are getting divorced and neither one can afford the home alone or afford to buy out the spouse.

Bank orders BPO which comes in a little under accepted price. I do not under price my short sales because I want them to get accepted by the bank. Also I knew this would be a popular property.

Negotiator immediately rejects the short sale saying the investor will not approve short sales where the seller is not behind in payments. Keep in mind this is not a Wells Fargo policy, it is the investor who bought the loan's policy.

Seller stops making payments and we plan on going back on the market in Jan of 2012.

Before we go back on the market a buyer makes an offer which is accepted by the sellers on Jan 16th.

Offer goes to Wells Fargo and this time is accepted on Feb 29th, 6 weeks after submission. 

On March 2, 2 days later the approval from the second which is a Wells Fargo HELOC arrives.

We are all happy with the results!

If you have any questions about short sales in Santa Clara or San Mateo County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

It's the beginning of the year so time for the round-up of last year's distressed property sales in the Blossom Valley Neighborhood of San Jose. So here's what happened:

Single family and condo townhomes :

Total sales:  1141

Short Sales: 412

REO:            271

Distressed sales as a percentage of total sales: 59.8%

Compare to 2010

Total sales:   1125

Short Sales:   366

REO:            271

Distressed sales as a percentage of total sales:  56.6%

My conclusion:

The percentage of distressed properties in Blossom Valley is a little higher in 2011 over 2010. A   59% distressed property sale percentage is enough to affect values significantly.  This may be one of the reasons home prices in San Jose are predicted to fall a little in 2012 while other parts of the Silicon Valley are appreciating.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

It's the beginning of the year so time for the round-up of last year's distressed property sales in the Almaden Neighborhood of San Jose. So here's what happened:

Single family and condo townhomes :

Total sales:  355

Short Sales: 39

REO:            20

Distressed sales as a percentage of total sales: 16.6%

Compare to 2010

Total sales:   384

Short Sales:   28

REO:            14

Distressed sales as a percentage of total sales:  10.9%

My conclusion:

The percentage of distressed properties in Almaden is higher in 2011 over 2010. While a 16.6% distressed property sale percentage is probably not enough to affect values, i think the increase may be indicative of a nationwide trend of higher priced homes being the fastest growing distressed segment. Many of these higher priced homes were purchased with no down payment and interest only loans. When the interest only loan period is up the payments can double. With no equity refinancing is not possible, and some of these home owners are in trouble.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

It's the beginning of the year so time for the round-up of last year's distressed property sales in the Cambrian Neighborhood of San Jose. So here's what happened:

Single family and condo townhomes :

Total sales:  656

Short Sales: 130

REO:            89

Distressed sales as a percentage of total sales: 33.45

Compare to 2010

Total sales:   750

Short Sales:   114

REO:            104

Distressed sales as a percentage of total sales:  29%

My conclusion:

The percentage of distressed properties in Cambrian is higher in 2011 over 2010. Also a 34% distressed property sale percentage is absolutely probably not enough to affect values. What is interesting is the the number of short sales in 2011 went up as the number of REOs went down from 2010 as banks have been more wiiling to approve short sales. This is being seen all over the bay area.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194