forclosure - Blog - REO Pro Network

You CAN buy again after a Short Sale or Forclosure!

Posted by Jan Baron, RDCPro, CSP, BPOR on January 11, 2012 at 3:02pm

My client just bought a new home two years after we did a successful short sale on his previous home. He now has a mortgage at half the interest rate he was paying previously. His new home is approximately half the purchase price of his old home that he purchased in 2004, and his new payments are a third of the old payments. Icing on the cake is that the new home is larger, move in ready, with a two year warranty. More icing? His new payments are $315 a month lower that his small rental. Yes, it really is less expensive to buy than rent.

How did we do this? Of course timing is everything. Prices in this area are 50-60% lower than they were in 2004. There is a good inventory of homes that are reduced accordingly. When we completed the short sale on his first home, I told him to keep the rest of his credit clean, pay the rent on time, and he would be able to buy again. It didn't hurt that he was a V.A. buyer. V.A. buyers can buy a home again two years after a short sale.

Unfortunately, many figure their credit is shot anyway, so they drown their sorrow in their credit card debt. After going through the trauma of losing their home, they may think they will never buy again. But after living in a rental house or worse yet - an apartment, they change their mind. The desire for home ownership is very strong and everyday I am amazed at the lengths buyers will go to in order to have their very own home.

Every situation is different. Did you sale your home or walk away? What is your credit and employment like? What kind of loan are you looking for FHA, VA, or conventional? See a good loan officer who can assess your situation and give you advise on how to find your way back to home ownership again. Don't wait too long; it may take time and who knows where interest rates will be this time next year.

What's Wrong with This Picture

Posted by Jose Rivas (DGRA) CDPE, SFR on July 15, 2011 at 4:11am

There is a vacant house in my neighborhood that is driving all the neighbors crazy, it has been vacant since October of last year, I am sure if it hasn't foreclose yet it is about to. grass is 5 feet tall, weeds are growing very tall, ivy wraps around the house. broken fence etc.

I was driving home last night and I saw a hand written sign on the front lawn, I stop to read it and was very surprised to read " Froclosure $55K Needs work and the phone number"

It makes me wonder if the listing agent ran out of signs and decided to do this sign, forgetting the broker's information, equal housing and realtor logo, or it is one of those investors trying to sell an assignment.

First Call For Help Teleconfrence Workshop Successful?

Posted by Jonathan on June 7, 2011 at 2:58am

This call will also target owners and renters that are occupying homes at risk of foreclosure. More important, it cost almost nothing to educate hundreds if not thousands of people at on time. Our first call was a success and we are looking to partner with agents around the country to do more. Please listen to the audio of the first call, in which 50 people attended. This is better than any workshop I've held or seen when it comes to foreclosure. May 25th, 2011 Audio

"The only way to bring about stabilization to our neighborhoods is to get valuable information out to the people that need it most. Workshops are not working." said Broker and CEO, Jonathan G Burgess. Burgess has overseen the sale of over four hundred foreclosed homes and short-sales over the last 3 years throughout the company’s California offices. Neighborhood property values, cities, counties and utility providers suffer the most when the wrong decisions are made by the occupants of these homes. Code 3 Realty & Mortgage Inc. has made equipping individuals with the necessary information to make the right decision concerning their situations a top priority.

Many real estate companies are hosting workshops for distressed homeowners to get much-needed foreclosure prevention information, however attendance to those events is usually low. “I’m not surprised attendance is low because this is a sensitive topic and can be embarrassing for many” said Burgess. "The majority of home owners struggling to keep their homes would rather not attend an open forum to discuss foreclosure. Telephone conferences are a discrete alternative."

Owners and renters can get valuable, free information about programs and options to assist them by joining these conference calls. This information must get out if we are going to bring about stability to our economy and restore property values in neighborhoods.

The first conference will begin on Wednesday, May 25th, 2011 at 7:00pm -7:30 pm.

Join our Group ON REO PRO Today!!

What FHA Buyers & Their Agents Should Know When writing offers on Fannie REO

Posted by Jonathan on May 7, 2009 at 4:30pm

I've prepared this blog with the hope that it will educate and streamline the process for First Time FHA Buyers and their agents when writing offers on Fannie Mae REO's; of which we should see a large supply in the near future.Our market has changed and is not a traditional market any longer. As Realtors/Brokers & buyer's we all must adjust. Adjust to the fact that FANNIE Mae’s reo RPA supercedes all State RPAs (Residential Purchase Agreements). Fannie is also exempt from normal closing cost that a seller would be required to pay, Such as Title, Escrow, City/County X-Fer Taxes.1). So what does this mean to you as the buyer or buyers agent? It means you cannot assume that Fannie is going to pay for it even if you put it in your state RPA. You have to ask for it to be paid, and expect that total amount to be included as a portion of the total max of closing cost that the seller, Fannie will pay.It's an art to writing the perfect offer; however what is more of an art and much needed in this market, is educating your buyers. Sellers normally take the best offer, and Fannie Mae is no different. The best offer may not always be the highest offer and I have seen a lot of this lately. Buyers and their agents often question or wonder why their higher priced offer are rejected and lower offers accepted by the banks. The pecking order is CASH (We all know is King), Conventional, FHA, and Then VA. Why? It doesn't take rocket scientist to figure this out. We all know cash offers can usually close in 15 days and they are less likely to fall out. Conventional buyers usually have more money to put down and the lender guidelines/requirements for financing aren't deal breakers. FHA, less money down, and lender required repairs could be deal a breaker for a seller selling a property AS IS. VA, will just multiply FHA x 2 or 3 with no money down... If you were selling your property, what would your pecking order be in a declining, unstable market? Time is money, and if a property is tied up for 30-60, 90 days and falls out of escrow, a lot of money is loss. These days the banks are currently in the business of minimizing losses. We may see this change in an appreciating market, but not in a declining unstable market.2) So does this mean that FHA buyers won't get a chance to buy Fannie REO's at or near Rock Bottom Prices?No absolutely not. It means that buyers agents have to put together solid offers. Writing a contract 10 to 15K over list price on a Fannie Mae REO so that closing cost can be paid by the seller is an example of a poor offer, (Agents are u looking at comps when u do this, is this really in the best interest for your buyers?) Every Fannie Mae REO property has an extensive Broker Price Opinion (BPO) also know as a CMA, completed the listing agent as well as an appraisal. When the price is set, they are well aware of the value a property will appraise. Fannie Mae is also provided a monthly marketing update in which they are given statics to support lowing, increasing or mainting list price of the property. Writing an offer over the appraised value means the FHA deal is more likely to fall out should the appraisal come in low.When you see HomePath Financing! That’s a good thing it means the property will not have to be appraised (Fannie Has an Appraisal On File) and can be sold at list / offer price should you come to terms; however you have to use an approved Home Path Lender. A good way to go should this opportunity present itself.3) How do I present my best offer the First Time?Buyer's make sure you are Pre-Approved (preferably an institutional lender) Not Pre qualified. It’s also a good idea to show good faith by putting down a healthy Earnest Money Deposit (EMD). $1000.00 deposit with 3.5% down on a 150K is a poor example. I would recommend $2,500 to $5,000 if you want your offer to appear strong. When you read a RPA you can tell a lot about a buyer by their EMD. Cash offers are required to put 10% down as a EMD. As an REO listing agent I can only present to my client what you give me.If your a buyer or buyers agent that is doing FHA financing because you don't want to exhaust your savings account, show me!! Along with your offer and EMD your agent should be also including POF in your accounts. If you don’t tell me this I have no way of expressing or showing my client why your offer is just as strong as the next or maybe even better!! By doing this you increase your chances of direct competition with conventional offers, and you make it easy to select the best FHA offer.In closing I have just a few words of advice for agents writing offers.If listing agent instructions say preferred method to submit an offer is via Email. DO IT (In the subject line Enter Property Street & Buyers last name)Stack your Fannie offer as follows prior to emailing1) PRE APPROVAL LETTER2) EMD OR POF3) STATE CONRTACT4) FANNIE RPA (Signed/Initialed)If there is a Bank Addendum Attached in MLS. Have your buyer initial and sign it. Should your offer be excepted with the counter the terms can be written in and this streamlines the time it takes.Know that any lender required repairs after an agreement has been reached will be added to the top of the purchase price. Therefore do a complete initial walk through with your client before writing an offer, and ask for know repairs credits up-front if your comps don’t reflect the asking price with needed repairs. Remember the first offer received is not always the best offer so don't think you have to be first. Never write an offer without seeing the property, I actually check MLS and will request agents update their Dis Key's if an offer comes in too fast.This article is exclusive to Fannie Mae REO's; however the principals are universal and can be applied to all fields. Agents and buyers do your home work , comparable sales don't lie, so use them. My team of agents are trained to complete a CMA for buyer clients whenever their writing an offer. I would encourage others to do the same.Jonathan Burgess Broker/OwnerCode 3 Real EstateBroker/SAR/ IVAR/NARNFSTI Reo CertifedRes Net CertifiedReo Trans Certifiedwww.code3realty.comCode 3 Realty & Mortgage Inc.777 Campus Commons Drive Ste 200Sacramento CA. 95825Branch Offices In Tracey CA & Riverside CA.

forclosure (4)

You CAN buy again after a Short Sale or Forclosure!

What's Wrong with This Picture

First Call For Help Teleconfrence Workshop Successful?

What FHA Buyers & Their Agents Should Know When writing offers on Fannie REO

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