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Thousands of homes Foreclosed; Can you afford a Risky Loan?

The adjustable rate mortgage has been around for a number of years and it has helped a number of people afford the purchase of their first home. However, in the late 90’s and early part of the 2000’s some people took advantage of the low rates offered by ARMS and got in over their head. Before buying a home people should really look at all the factors involved with an adjustable rate loan and make sure it is right for them.

Fixed Period Varies

The vast majority of current ARM’s offer a well-defined period in which the interest rate is fixed. The defined period typically lasts from 3 to 7 years and can be as long as 10 years. After this defined period the interest rate will adjust based on the index used to calculate the interest rate.

Some people have well defined plans and can use the fixed period for meeting their goals. For instance, a military couple that has an assignment to a particular area could purchase a home using a 5 year ARM and use the time to live in the home with no worries about a change in interest rate.

However, people that are just looking at the low rates of the ARM’s and “hoping” that their income will rise in future years are taking a big gamble.

Rates Will Rise

Years ago when the ARM was first introduced it was always explained the same way. When the market took a dip the interest rate would lower accordingly and the opposite would happen when the market improved. However, the last few years have seen nothing but historically low rates. Getting an adjustable rate loan now ensures one thing; the interest rate will rise once the fixed period ends. The current rates cannot get much lower.

Thankfully, an adjustable rate mortgage will have some safeguards to protect borrowers. The amount of increase for the rate is usually capped each year as well as a cap for the duration of the loan. For instance, most ARM’s will not adjust more than 1% in one year and no more than 5% or 7% over the course of the loan. However, a 5% increase in rate on a $250,000 loan can increase a loan payment by over $700. Keep in mind that when the interest rate adjusts the new payment is factored over the remaining loan term. This can drive up the payment as well.

Plan Accordingly

All of this information points to one simple fact. People considering an adjustable rate loan need to plan accordingly. You should have some type of exit strategy in mind, whether it is selling or refinancing or paying off the loan in order to avoid some potentially hazardous conditions in the near future.

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Inexpensive Ways to Boost Your Home’s Value

Although mortgage rates are still at an all-time low, there are lots of homes on the market for potential buyers to choose. This makes competition tougher for sellers. If you are in the market to sell a property, it might be wise to take some time and spend a few dollars on simple things that will yield great results.

Choose the Right Agent

Sometimes the most important thing for a home seller is the most overlooked. Get a real estate agent that is good for you. There are numerous agents available, all with various personalities, strengths and weaknesses. Here are some tips for finding an agent that you are comfortable with and can help move your property.

* Visit a few open houses: This will give you a chance to see the agent interact with other interested buyers. You can gauge their professionalism, demeanor and overall knowledge of the market.

* Ask your friends and family members for a referral: This can be an easy way to find a Realtor®, but use a bit of caution. An agent that has lots of experience selling country homes with acreage may not be the best choice to sell your suburban 3 bedroom home. Make sure to check out their other sold listings and see how many are comparable to your place.

* Do an online search: Check out agents online. Look for their website and do a little research. Is their site professional looking? Is it updated with current listings? How well do they explain the homes they are trying to sell now? Are there lots of pictures? Once you have found someone you like, give them a call and do a brief interview over the phone.

Paint

One of the quickest and cheapest ways to alter a room's appearance is by simply adding a fresh coat of paint. Most any able bodied person can work a roller and a brush. Choose a color that is a bit neutral but also bright so that it will make the room livelier.

Clean up and Streamline

Obviously, you want the home as clean as possible. Take extra care to clean the bathrooms and kitchen. Also spend some time organizing and getting rid of clutter. Remove any excess wall hangings. This will make the room feel more open and larger. Making a home inviting and spacious will attract more buyers.

Improve the Curb Appeal

Like painting, this will likely involve more sweat than money. If you have shrubs make sure they are trimmed and neat. Give the lawn a fresh cut. Put a new welcome pad by the front door. Also, include some type of attractive plant near the front door. Since this area will likely be prominent in pictures that are trying to sell the home you want it to look inviting.

Bridging Outdoor Areas with Inside Areas

Use decorative plants around the patio and deck as well as inside the home. Use comfortable furniture outside that has soft cushions. This makes the home feel bigger with more usable space outside that can be used in a number of situations.

Changes in Popularity of Features in New Homes

The national economy runs through cycles similar to the fashion industry. Things that seem irresistible and trendy this year may be old news by the time next year rolls around. As a result of the economic down turn from the past few years most home builders are turning their attention to items that are practical instead of luxurious.

Sunrooms

As a whole, sunrooms are declining in popularity. According to Rose Quint, a representative of the National Association of Home Builders (NAHB) “Builders are focusing on features that add immediate value and make a home more practical.” For example, most builders are choosing to add linen closets and walk-in closets in place of a sunroom.

Separate Living Room

Most builders feel that a formal living room will not be very prevalent in new construction for the upcoming year. Families would prefer to have one giant open area that encompasses the living room, dining room and kitchen.

Media Room

Along with the living room, the media room will also likely disappear. The extra cost of the equipment, along with heating and cooling another room that is used sparingly, is just not appealing at this time. What is more likely to appear in new homes is a hidden away station that holds all of the DVD players, cable controls and charging stations for cell phones, tablets, and other media devices.

Two Story Family Room and Foyer

Since builders are approaching new homes with more practicality, it makes sense to cut down on unused space. While a family room may be bigger in new homes to include the dining and kitchen areas, it is unlikely to be two stories tall. The same goes for the elegant foyers that stretch toward the sky with large windows. Both of these features of a home may be lovely in appearance, but they each have a lot of space that is not used by a family of four or more.

Whirlpool Bathtubs

A large tub designed for relaxation and luxury is less likely to part of a new construction in the upcoming year. A separate tub laid out in a classic style is more useful and can be used to make a fashion statement while also having an everyday use.

Luxury Bathroom

Large bathrooms that include walk-in showers and multiple shower heads, as well as lots of floor space, will be harder to find in a new house. Instead, the shower will be smaller, with a single head, and the kitchen will likely include a double sink.

Outdoor Kitchen

The outdoor kitchen will probably disappear from lots of new homes. While it can be a nice place to gather with friends or family for a birthday party or to watch a football game, it also requires having an extra appliance or two. Most families would rather prepare the food inside and simply transport it to the patio and save on the cost of the additional appliances.

Number of Foreclosures Showing Signs of Decreasing

The number of foreclosures in July 2012 is 10% lower than the amount from July 2011. Finally, it looks like the real estate market is making solid improvement. In fact, July 2012 is the 22nd month, in a row, to show a decline in foreclosure activity when compared to the same period from the previous year.

Overall, there is a 20%+ decrease in the annual number of homes being taken over by banks. The trends are taking place in at least 38 states as well as Washington, D.C.

As a whole, the nation is seeing that one home out of 686 homes is either in foreclosure or on the verge of repossession.

In comparison, Wisconsin shows one home out of 701 is facing foreclosure. Coupled with the news from last month that housing prices are on a steady rise; it does seem that the real estate market is getting back on the right track.

What does this mean for Buyers and Sellers?

In order to see how this is a good thing for both buyers and sellers, we have to look at the big picture. Fewer homes facing foreclosure would indicate that people who were out of work, or working at below average wages for their skill set, are now finding better paying jobs. The better jobs obviously are resulting in more money, aiding these families to get current on their bills. This would indicate the overall job market is improving. A better job market means more potential buyers that can purchase a home. That is great news for people who are in a position to sell a home.

The same type of facts has an impact on people looking to buy a home. An improving job market is good for those people that were out of work, fresh out of college or working at a job that was enough to pay the bills while they searched for a better option. More employment translates to more income, leading to more savings and an improved ability to pay for a mortgage.

What remains to be seen is the impact these improvements will have on the lending industry. One of the main problems that led to the real estate crash is the loose requirements that were in place allowing almost anybody access to a home mortgage. It is doubtful that mortgage lenders will return to those kinds of practices. However, it is a good assumption that lending rules will ease a bit in the coming months to help borrowers take advantage of the unprecedented rates that we have experienced for the last 3 years.

Thanks for the short sale lead capture ideas. My husband & I are on track to complete 8 short sale sides this year, last year we did 4 sides.

ShortSales are definately a bear. However, one Seller told us that he loved us. That made us feel good.  He's had a bad time of it. Still we did not give up on him (like his parents, x wife, kids and previous employer). We invited him into our kitchen and just listened, numerous times. This sale is scheduled to close next week after being on the market 13 months, through 3 contracts and a foreclosure filing. 

Is it worth it?  Seems like everyone in this situation needs someone that they can trust.  The emotional toll taxes us. We ignore our house, our lawn, our needs, to be available for the lenders who wanted every form yesterday, perfectly uploaded; for the broker who still needs to make a profit on homes that are in inventory one to two years;  to remind the Buyers that a short sale isn't going to close before school starts or that being holed up in their parents basement while they wait on a short sale bargain, probably will not work out.

The jury is out. Currently we are working with a Seller who has received a foreclosure notice. Finally a Buyer came along who was willing to accept the property in it's present condition. He made his offer and waited.  2 months into the escrow the would be Buyer called to say that he was taking a trip into the desert mountains of New Mexico where he would get no phone reception.  He called again, before he climbed into the mountain, to see if there was any news and to tell us that he would be out of touch for 3 days. That afternoon the short sale lender emailed us and gave us 72 hours to respond to their counter offer.  After the Short Sale Buyer did not respond within the alloted 72 hours, the contract was cancelled and kicked out by the Short Sale Lender.  Hopefully the Buyer will submit another offer. Meanwhile, the Sellers wring their hands as the foreclosure timer continues to tick. How frustrating is that?

We are hoping that one day this rollar coaster real estate market will all be part of the past. But not likely very soon.  For now,  we are trying to enjoy the ride.

In Sunnyvale from Jan 1, 2012 until June 30, 2012 there were:

58 closed short sales

32 closed bank owned homes

Total sales during this time period were 447

Total % Short Sales: 12.9%

Total % REO Sales: 7.1%

Total Percentage  Sunnyvale Distressed Properties: 20%

20% of all Redwood City sales being distressed is enough to still have some 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.

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

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

DRE  01191194

Today NAWRB announces the appointment of Elizabeth Goodchild to the national trade group's board of directors. "We're excited to announce Elizabeth's new role with the organization. We went through a rigorous vetting process to fill this vacancy, and Elizabeth has all the skills and passion we were looking for in a new Director. Her business's specialized real estate services, relocation, distressed asset disposition, and short sales, plus her experience in publishing and education makes Elizabeth a natural fit for our board," said Patno. 

Goodchild will serve in her new role until bi-annual elections scheduled to be held in early 2013. NAWRB, a trade group representing women-owned businesses in the housing economy, is one of the most visible trade groups in mortgage default media and generates over $200,000 a year in media attention on behalf of its member businesses. 

To read the full press release click here: NAWRB Board member Elizabeth Goodchild.

Here is today's market listings update for Active foreclosure single family homes located in Rock County Wisconsin. This information was pulled from the South Central Wisconsin MLS on 3/7/2012 at 8:30 A.M.

• 59 total Foreclosure|Bank Owned|REO homes are currently listed in Rock County, WI
• Low listing price: $10,000
• High listing price: $369,900
• Average listing price: $85,857
• Median listing price: $60,000
• Average days on the market: 63

Of course these numbers change on a daily basis, so to obtain the most up to date information on current foreclosure/bank owned homes for sale, please contact us directly at 608-921-8536. We would be happy to customize the search further for you to find the home that is just right for you.

As an extra benefit to Rock Realty home buyers, we offer a 1% broker commission rebate after closing. This could mean $1,500 back on a home purchase of $150,000. We love to hear how these rebates help our clients. Some use them for home improvements, while others simply put it in savings for future needs. It is a great option that we are happy to offer. Contact us for further details and limitations.

At Rock Realty, we currently have great single family homes listed for sale in Rock County. Feel free to visit our listings page linked below:

Rock County Wisconsin Home Listings 

Additional Foreclosure|Bank Owned Home Purchase Information

• Tips for Purchasing a Foreclosure
• Using FHA 203K Loan to Purchase a Fixer-Upper
• Getting Approved for an FHA Mortgage
• Buying a Wisconsin home after a Short Sale or Foreclosure
• Avoiding Problems with Your Escrow Account
• Half of Homeowners Underwater on their Mortgage

Here is today's market listings update for Active foreclosure single family homes located in Dane County Wisconsin. This information was pulled from the South Central Wisconsin MLS on 3/7/2012 at 8:15 A.M.

• 130 total Foreclosure|Bank Owned|REO homes are currently listed in Dane County, WI
• Low listing price: $39,900
• High listing price: $430,000
• Average listing price: $169,812
• Median listing price: $154,400
• Average days on the market: 67

Of course these numbers change on a daily basis, so to obtain the most up to date information on current foreclosure/bank owned homes for sale, please contact us directly at 608-921-8536. We would be happy to customize the search further for you to find the home that is just right for you.

As an extra benefit to Rock Realty home buyers, we offer a 1% broker commission rebate after closing. This could mean $1,500 back on a home purchase of $150,000. We love to hear how these rebates help our clients. Some use them for home improvements, while others simply put it in savings for future needs. It is a great option that we are happy to offer. Contact us for further details and limitations.

At Rock Realty, we currently have great single family homes listed for sale in Dane County. Feel free to visit our listings page linked below:

Dane County Wisconsin Home Listings 

Additional Foreclosure|Bank Owned Home Purchase Information

• Tips for Purchasing a Foreclosure
• Using FHA 203K Loan to Purchase a Fixer-Upper
• Getting Approved for an FHA Mortgage
• Buying a Wisconsin home after a Short Sale or Foreclosure
• Avoiding Problems with Your Escrow Account
• Half of Homeowners Underwater on their Mortgage

Here is today's market update for Active single family foreclosure and bank owned home MLS listings located in Madison Wisconsin. This information was pulled from the South Central Wisconsin MLS on 2/15/2012 at 10:45 A.M.

• 42 total Foreclosure|REO|Bank-Owned home listings in Madison, WI
• Low listing price: $58,000
• High listing price: $340,000
• Average listing price: $152,235
• Median listing price: $149,500
• Average days on the market: 57

There are some fantastic deals available right now! Of the 42 foreclosure listings in Madison, 21 of them are listed for under $150,000. These numbers change on a daily basis, so to obtain the most up to date information, please contact us directly at 877-774-7625 or email us at Info@RockRealtyWI.com. If you are looking to buy a discounted home in Madison Wisconsin, we would be happy to customize the search further for you to find the home that is just right for you.

As an extra benefit to Rock Realty home buyers, we offer a 1% broker commission rebate after closing. This could mean $2,000 back on a home purchase of $200,000. We love to hear how these rebates help our clients. Some use them for home improvements, while others simply put it in savings for future needs. It is a great option that we are happy to offer. Contact us for further details and limitations.

Original Post - Foreclosures in Madison Wisconsin

Here is today's market update for Active foreclosure and bank owned home MLS listings located in Janesville Wisconsin. This information was pulled from the South Central Wisconsin MLS on 2/14/2012 at 2:50 P.M.

• 26 total Foreclosure|REO|Bank-Owned home listings in Janesville, WI
• Low listing price: $45,500
• High listing price: $679,900
• Average listing price: $118,167
• Median listing price: $84,000
• Average days on the market: 82

There are some fantastic deals available right now! Of the 26 foreclosure listings in Janesville, 19 of them are listed for under $100,000. These numbers change on a daily basis, so to obtain the most up to date information, please contact us directly at 877-774-7625 or email us at Info@RockRealtyWI.com. If you are looking to buy a discounted home in Janesville Wisconsin, we would be happy to customize the search further for you to find the home that is just right for you.

As an extra benefit to Rock Realty home buyers, we offer a 1% broker commission rebate after closing. This could mean $2,000 back on a home purchase of $200,000. We love to hear how these rebates help our clients. Some use them for home improvements, while others simply put it in savings for future needs. It is a great option that we are happy to offer. Contact us for further details and limitations.

Original Post - Foreclosure Listings - Janesville, WI

Well for those of you who don't know, REO stands for Real Estate Owned, or bank owned properties. As an REO Listing agent I have seen my inventory shrink during 2011, I used to receive several houses to list every month from different clients and now they are down to a handful and I have more houses waiting for foreclosures to be ratified in the courts and evictions than the ones I have actively listed.

It is easy to understand that it might work better this way, because it keeps the demand and supply balanced. My listings are moving quicker and selling to relative higher prices than they were last year. I believe that banks are controlling the inventory so the prices don't drop so much, etc. 

Also everybody knows the popular term from last year robosigning, some states have created more obstacles for banks to foreclose on properties and even evict tenants, etc. I know in Maryland the banks have to contact the homeowner and offer the opportunity to apply for modifications, etc. I know some banks hired third party companies to make sure that usually real estate agents visit the homes and deliver documents, call the bank and put the homeowner on the phone, etc.

Today I read a good article that explains in more details why banks are doing this inventory control, not just to avoid property values to drop so much, put to make their books stronger and to manipulate data to their advantage.

Here is a link to the article  

It is hard to understand how a borrower can stay at a house for several years without paying mortgage, and getting away with that. Also banks are trying to sell their portfolio to investors rather than retail. And another idea that keeps resurfacing is the rental options.

FOR IMMEDIATE RELEASE

PRLog (Press Release) – Apr 28, 2011 – Michael Collins Completes Prestigious RSD Designation to Specialize in Bank Owned Homes



April 1, 2011 Michael Collins, Broker of Rock Realty in Janesville, has earned the prestigious Harris Real Estate University Certified Real Estate Owned Specialist Designation (RSD), having completed extensive training in the techniques necessary to secure, negotiate and sell Bank Owned Properties (REOs). This REO training is invaluable during the current recession, especially in housing markets where foreclosure rates continue to climb.

A property becomes an REO if the original owner fails to pay their mortgage and the lending bank is forced to repossess it. The bank then reaches out to qualified REO designated brokers and agents to sell the home and recover their investment. Without access to experienced REO Listing agents, lending authorities must continue to hold onto the foreclosed property as an investment loss.

“The Harris Real Estate University RSD designation has been invaluable as I work with banks and lenders on complicated BPO & REO assignments. In Janesville Wisconsin, an increasing number of homes are in some stage of foreclosure. And it is happening with homes of every price range,” said Michael Collins, “It is so rewarding to be able to help banks rehabilitate these homes, get them back on the market, and find eager homebuyers so we can improve the condition of our neighborhoods. My RSD training through HREU has enabled me to work with more lenders, move more properties and get some of these vacant homes sold!”

Tim and Julie Harris, founders of the Harris Real Estate University in Las Vegas, NV, said “Realtors such as Michael Collins with the HREU RSD designation have valuable training in REO properties and can help banks find qualified buyers using our extensive techniques. Through our in-depth training and continuous education programs, these agents better understand market conditions that will help lenders appraise their properties through a BPO and eventually sell their REO inventory.”

The Harris Real Estate University opened in 1998 and provides REO agent training through webinars, teleseminars and teleconferencing. Agents can earn their HREU REO Listing Designation remotely from their offices all across the nation. The RSD is the premier designation for Realtors who develop an expertise in Bank Owned properties.

“Our goal is to prepare our enrolled agents for the increasingly competitive REO market. It’s becoming more difficult for uncertified agents to out-sell our graduates. Our comprehensive RSD Designation gives them everything they need to gain an edge over other agents in their communities,” Harris said.

If you feel you are in need of more information about REO properties, or if you are a lender looking for a certified Bank Owned Property Realtor, call Rock Realty for more information at 608-921-8536. We also offer in depth BPO (Broker Price Opinion) services.

Specializing in the sale of REO homes and commercial properties in the Madison, Beloit, Evansville & Janesville areas, Rock Realty lists homes for sale in Dane and Rock County. Contact Michael Collins at 608-921-8536 for more information, or visit www.rockrealtywi.com

Original Blog

Wisconsin Short Sales
Madison Wisconsin Short Sale Realtor®
Janesville Wisconsin Short Sale Realtor®
Beloit Wisconsin Short Sale Realtor®

Yes, after one agent tries, unsuccessfully, to sell this home 97 days, posting ONE front photo, a 2nd agent tried for another 137 days until finally they sold it for $66,000 LESS than asking price. After I Staged it and relisted for more than $55,000 of what was paid for, we have 4 offers in ONE day, all over asking price!

Here are a few more photos http://www.postlets.com/res/4332472

(link will only be available up to 30 days from this post)

FULL POST BELOW, AFTER PHOTOS

This is JUST ONE example of why sellers should HIRE a STAGER and/or a STAGING REALTOR when selling!

BEFORE & AFTER

The story of this listing goes something like this...

Previous seller & agent, who should remain unnamed to protect their "innocence", try to sell this home for 137 days without any success! And prior to that, another seller/agent tried selling for another 97 days! But that agent could only muster taking ONE photo of the front. Not unusual to see that, right?  I mean, after all it is so difficult to take digital photos because than you have to download, upload…exhausting! Boggles the mind! Anyway, the home looked pretty much the same except it was missing a chandelier and the hood over the stove.

It appears that no one had any ideas as to how to make it look better in order to find a buyer, NOR (may I add) any buyer had the VISION to picture it a little dressed up! Why not?? So, this seller finally sells for over $66,000 LESS.  New, SMART owner enters, hires me (BECAUSE I am a Staging Realtor….see, I told you he was smart!) to relist, at over $55,000 of what he paid for it, and gets even more in ONE day!

This post doesn’t only show (known fact) sellers that the smallest effort in “Staging” their product can make and pay big, BUT also that buyers need to be able to spot potential BEFORE someone comes in and stages it, THEN they’re willing to pay much more, for something that’s not even staying with the property!! Buyer need to keep an open mind when it comes to seeing the potential in homes they’re buying. This staging did not include any heavy furniture or anything. The heaviest thing is the folding patio set!!

The interesting thing is that many agents, like myself, offer our Staging services FREE of charge as part of our service, but in spite of the clear benefit many sellers, especially REO owners, are either not grasping the concept, or their reps simply don’t care. Not sure which is it - maybe someone can comment/clarify. If you, as a seller/AM, are giving 100s of listings to one agent, you clearly aren't interested or focused on maximizing returns for yourself or your clients. This may not be your fault, I know that so don’t get mad!  Maybe your hands are “tied” as to what you can do or who you hire to list your assets, but the fact remains the same - maximizing returns through QUALITY marketing is not at the forefront of how you/your employer does business. Can you change that?  If so, you should at least try! The difference in the quality of service you receive will astound you.

The consequence of doing business based on quantity (as if it needs reinterating), devalues all our homes and hurts communities all across our country, where values are already affecting many people’s lives!

To summarize just this example: No staging =no offers! Staging =4 offers the first day, including cash offers for NO LESS than asking, and others for much more over asking!

Where ever you are, whatever your local market, seek the services of listing agents who offer Staging as part of their service, when possible. If you have a boss, you WILL impress them!!

If you like this post, visit http://stagingrealtors.ning.com/ for other related posts, and to join the group!

A Diamond in the Rough and a Labor of Love (edit/delete)

Every once in a while you find a diamond in the rough.  Last summer a good friend called to see if I would help him bring an old distressed Victorian back to life.  I'm always up for a challenge, so we met up and surveyed the property.  Whew!  Distressed was an understatement.  He had already cut all of the overgrowth away from the house so you could actually see it, and I'm not 100% sure why he didn't leave right then.

Removing all the trees around the house gave an amazing view of a house that had been idle for 12+ years.  Windows were broken out, the porches were falling down on both front and back sides of the house, the roof leaked, birds lived in the attic, and that was just the beginning.

Inside wasn't any better.  The first floor bathroom was missing its floor.  Rain, snow and birds had been passing through the second story windows for years, and they had left their mark.  The walls and ceilings were crumbling throughout, and those were the good features.  But, there was something about that house that had us intrigued.

Strother Adams is a craftsman.  Strother and his brother Davey have rescued more than one structure, and this was surely to be a test beyond most.  For months after that, Davey scraped paint, fixed windows, repaired doors, repaired plaster, built bathrooms with floors, sealed up leaks and did a hundred things I never saw him do.  Strother coordinated plumbers, HVAC contractors, insulators, roofers and others.  My electrical company went in and made the old wiring safe while replacing the majority of it with new 21st century circuitry. 

The kitchen was completely replaced, one bathroom was restored, one more was added and one was cleaned up.  The floors were sanded, plaster finished and walls painted, new trim installed or old trim repaired.  New plumbing and a heating/cooling system was installed, and finally it was finished. 

This ugly duckling had become a beautiful swan.  We had more fun with this property than most we work with.  It had nooks and crannies that most houses don't have.  You could sense little children hiding in the voids between the walls, and you could see a level of 19th century craftsmanship that rivals the best craftsmen of our day.

I love the whole process of buying and selling real estate, but every once in a while a house comes along that begs for a second chance.  I know as realtors, we are in the market to help others buy or sell homes, and that is exciting.  But, I also have the good fortune to be an electrical contractor.  When a diamond in the rough comes along like this one, I often get to be a part of its rebirth.  Then, the buying and selling becomes a second thought, an end result. 

The real joy in finding a house like this is seeing it rise from the dust of blight and decay to become a fully restored home where a family will live and kids will grow, songs will be sung and meals will be shared.  People will fall in love with all of its vintage 1800s features while enjoying the comforts of our upgrades, and they won't be inconvenienced by outdated wiring, plumbing, heating and cooling systems.  No, they will be free to enjoy a piece of history.  They can absorb its strength that helped it survive the ravages of time, and they will sense the families that once walked through its hallways.  It is a diamond in the rough, and what a diamond it is!

Reconveyance Deed & why it might be important to make sure it happened!!!

I should explain what a reconveyance deed is to help make some more sense of this.  Anytime there is a loan on a property (at least in California), there is a deed recorded on the property.  Then when a loan is paid off against a property, another deed gets filed (reconveyance deed).  That type of deed shows that that lender no longer has interest in the property.
 
In my real estate world, I normally don't watch for that type of activity.  It's a behind the scenes thing that gets done after we close escrow, which makes sense because I am making sure my seller gets their home sold or that my buyer gets in the property they purchased. 

The loan against a property is what the title company handles, they send money (full payoff or agreed short payoff in a short sale) to those lenders & then either that lender will file a reconveyance deed with their own "prefered" title connection (which will then end up at the county) or they will send that reconveyance deed to the title company that closed the escrow & have them file it thru the county.  Either way, I don't follow up with these lenders to make sure they did their reconveyance deed. 

It seems like realtors might want to start doing that or maybe at least following up with the title company to make sure it's done.  It sure can cause a lot of issues down the road if it wasn't done properly.
 
I recently had a buyer (15 months ago) purchase a short sale in Tracy CA & the bank forgot to do their "reconveyance deed".  Not sure how you forget, but I guess there are humans at Chase Bank that didn't get it done.  About 6 months ago, my buyers started getting foreclosure notices addressed to the prior owner.  Of course she didn't live there & my client kept sending the mail back as "return to sender". 

Mr & Mrs Buyer got concerned a month ago because Fed Ex packages started being dropped off on their door step in Tracy.  A process server came to their door & wanted to speak to the old owner.  Now that's when it got serious.  Thankfully my buyer went to the local Chase bank, title company, county recorder's office & started pokeing around to get to the bottom of it.  They received an "investigation" fax number to Chase to send their documentation to show they owned it & to leave them alone.  

It must have worked because a week after they faxed to this "investigation" number, a RECONVEYANCE DEED was miraculously filed with the county recorder's office & the phone calls have stopped.  Now I think I should probably follow up on all my closed escrows to make sure this happens to alleviate any of my future buyers dealing with this sort of shenanigans. 

Buying Foreclosures - How Foreclosures Work
What Is a Foreclosure and How to Profit From Foreclosures
By Elizabeth Weintraub, About.com Guide
.See More About:foreclosuresbuying short salesdistressed homesreal estate investors

Buyers should hire a real estate agent who specializes in foreclosures.
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Birmingham Foreclosures
Birmingham Alabama Short Sales Don't Lose Your Home to Foreclosure
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Home buyers who want a good deal in real estate invariably think first about pursuing foreclosures. Buyers have this picture in their mind of a cute little house, surrounded by a white picket fence that is owned by a widowed mom who fell on hard times, but that scenario is generally far from reality.
Why Do Sellers Go Into Foreclosure?

Sellers stop making payments for a host of reasons. Few choose to go into foreclosure voluntarily. It's often an unpredictable result from one of the following:

•Laid-off, fired or quit job
•Inability to continue working due to medical conditions
•Excessive debt and mounting bill obligations
•Squabbles with co-owner, divorce
•Job transfer to another state
Negotiating Directly with Sellers in Foreclosure
Investors who specialize in buying foreclosures often prefer to purchase these homes before the foreclosure proceedings are final. Before approaching a seller in distress, consider:


1.Foreclosure proceedings vary from state to state. In states where mortgages are used, home owners can end up staying in the property for almost a year; whereas, in states where trust deeds are used, a seller has less than four months before the trustee's sale.

2.Almost every state provides for some period of redemption. This means the seller has an irrevocable right during a certain length of time to cure the default, including paying all foreclosure costs, back interest and missed principal payments, to regain control of the property. For more information, consult a real estate lawyer.

3.Many states also require that buyers give to sellers certain disclosures regarding equity purchases. Failure to provide those notices and to prepare offers on the required paperwork can result in fines, lawsuits or even revocation of sale.

4.Determine whether you're the type of person who can easily take advantage of a seller's misfortune under these circumstances and / or put a family out on the street. Oh, critics will argue it's just business and sellers deserve what they get, even if it's five cents on the dollar. Others will feign compassion and trick themselves into believing they are "helping" the home owners avoid further embarrassment, but deep inside yourself, you know that's not true.

http://baltimorelowpricedhomes.com/gold_distress.asp

www.baltimoremdforeclosures.com

Costs Will Increase For Buyers Regardless Of Credit Worthiness

Banks Get Conservative
Risk vs. Reward

New home buyers shopping for mortgages will face these fee increases

1. Someone buying a home with credit OVER 740 with 25% or lower down payment will now pay approx .125% more in rate.
2. A borrower with a credit score over 740 refinancing to 80% of the value of their home and taking out additional cash can expect to pay an additional .25% higher in rate.
3. Anyone buying or refinancing a condominium (excluding detached condos) with less than 25% down payment (or equity) can expect an increase in rate of almost .5%
4. Borrowers without larger down payments will see slightly higher rates.
5. Buyers with lower credit scores, they can expect much higher rates.

Fannie and Freddie have learned their lesson. The politics of housing has changed from a congressional mandate to make home ownership more accessable, even to the unquaalified, to a rational and more profitable system. They/we lost a bundle and they are looking at another bad year with foreclosures expected to rise again in 2011.

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