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The Sky is Falling! Get Your Bucket!! (edit/delete)

The sky is falling, the sky is falling! According to the Chase-shiller index we have entered a double-dip economic recession. Clear Capital reported the same thing for the housing market nearly a month ago. Zillow added that home prices are dropping about 1% per month this year. The headline read, "First Quarter Brings More Dismal News For Housing Market." With that headline you can guess where the article went.

The sky is falling! Well, that's one way to look at it, or it could be the biggest buying opportunity in nearly two decades. A lot of people were priced out of the real estate boom of the early to mid-2000s. The escalating prices of available properties made it impossible for them to buy. So, they settled in and started renting. They have sat back, saved their money and now they have enough money saved to buy the house that alluded them five years ago and they have a nice down payment.

For a lot of these formerly sidelined buyers, this market is ripe for the picking. Many buyers overbought in the mid-2000s, and now the real estate landscape is littered with wonderful upscale short sales and foreclosures. It's a buyers dream.

So, for those Realtors who have been walking around with a sad depressed face, I say, "Take that sad face off, put your 'I'm going to be a top producer' face on and get out there and beat the bushes." First-time buyers and sidelined buyers have the potential to be a major force in this market turnaround.

There is another group evolving in this market. The people who were wiped out in 2008 are stabilizing and coming back into the market. This is a great group to get your investors involved with. If your investors would become short-term mortgage holders that would give this group a hand up. The real risk to the investor is the potential that the buyer may default, but many of these people were swept away by forces other than own fault. They are trying to do everything they can to get back on top of things. The worst case scenario for an investor is that he would have to foreclose. In that case, he would simply have the house he bought anyway. It's a win-win.

So, Realtors, put away that "sky is falling" umbrella, pick up a bucket and catch the rain of re-positioned buyers. The clouds are full of opportunities and it's beginning to sprinkle. We can pull this country out of this hole one buyer at a time. So, everyone, heave-ho!

Are you interested in buy a house? Well, if you are then, here are some pointers that might help you go through the process easily. More and more people are dealing with bad debts these days. This might be a result of over spending and uncontrolled self-discipline. If you are suffering from having bad debt ratings, you probably know that you cannot buy a house if you have a bad debt; they go along together so you cannot buy a house if you have a bad credit rating.

Although there are some instances when people can still apply but this is just under certain circumstances. A lot of homeowners pauses their plan of applying for a mortgage loan because they fear that their debts will prevent them from being approved. This is true at times but there is certain condition that still helps some people to acquire a house. Since you are the bearer of the debts, you are in a better position to tell if you are qualified or not but there are also ways to do that and among those ways is pre-qualifying for it. There is a process one must go through to be able to know if they are qualified or not. This process is called pre-qualification.

Being in this position is not easy. There are some people who go through the same process because they are thinking that they are being prevented from taking a step forward. With all the uncertainties happening everywhere, deciding and asking yourself thousand times will be very helpful in buying a home process. Getting a mortgage loan is not a joke, there are lots of responsibilities accompanied by it so deciding first what will be the best thing you can do to prevent mortgage related trouble will be helpful to you. Here are some helpful tips you can use:

Analyze your debt to income ration –this should be the first on your list to be able to find out what are the risks that are visible. If you are an over spender, you might be using credit cards to shop all the time, chances are you might not be able to pay for your mortgage loan in the long run because of certain debt issues. Checking and noting down the amount of mortgage loan you are seeking and list your income and budget. This way, you will be able to know if you can afford it or not.

Front and back ratio and their difference –analyzing front and back ration is also essential because you will be able to know the right computations regarding your expenses and obligations you must pay regularly. It’s hard to deal with certain issues especially if it is related with money.

Debt income ratio –reducing your debts and being able to qualify for a mortgage is hard to do especially now that there are lots of temptations that are scattered everywhere. Getting another job to fit for your lifestyle is also a solution but you should be able to know that you cannot handle everything so one of the best things to do is to manage your finances appropriately.

"Virginia was here on this day." 

On this Memorial Day weekend, I would like to thank all of the men and women who have defended this country from its inception to the present day. It is not without great sacrifice and dedication that you have put your lives in harm's way for the promise of a peaceful return to a more simple life. Those of us who have benefited from your commitment salute you and humbly thank you for your selfless acts.

One of the greatest conversations transcribed during war came at the battle of Gettysburg between Colonel Arthur Freemantle and Brigadier General Lewis A. Armistead (a notable Virginian). That conversation is played out in the movie, "Gettysburg." Armistead reveals, in this short discourse, the very heart of Virginia. But, this dialog could have played out on a hundred battle fields since the Revolution. One of the reasons America is great is reflected in the great men and women who have sworn to defend her.

Col. Arthur Freemantle: I'm told you're descended from an illustrious military family.

Brigadier General Lewis A. Armistead: Who told you that? Kemper?

Col. Arthur Freemantle: He tells me it was your uncle who defended Fort McHenry during the War of 1812, and that he was therefore the guardian of the original "Star-Spangled Banner." I must say, I do appreciate the irony of it all.

Brigadier General Lewis A. Armistead: Colonel Freemantle... it does not begin or end with my uncle... or myself. We're all sons of Virginia here.

Brigadier General Lewis A. Armistead: That major out there, commanding the cannon... that's James Dearing. First in his class at West Point, before Virgina seceded. And the boy over there with the color guard...

Brigadier General Lewis A. Armistead: ... that's Private Robert Tyler Jones. His grandfather was President of the United States. The colonel behind me... that's Colonel William Aylett. Now, his great-grandfather was the Virginian, Patrick Henry. It was Patrick Henry who said to your King George III, "Give me liberty, or give me death." There are boys here from Norfolk... Portsmouth... small hamlets along the James River. From Charlottesville and Fredericksburg... and the Shenandoah Valley. Mostly, they're all veteran soldiers now; the cowards and shirkers are long gone. Every man here knows his duty. They would make this charge, even without an officer to lead them. They know the gravity of the situation, and the mettle of their foe. They know that this day's work will be desperate and deadly. They know, that for many of them, this will be their last charge. But not one of them needs to be told what is expected of him. They're all willing to make the supreme sacrifice... to achieve victory, here... the crowning victory... and the end of this war. We are all here, Colonel. You may tell them, when you return to your country... that all Virginia was here on this day.

By: MARYANN HAGGERTY

FORECLOSED homes don’t show very well — financially strained borrowers may ignore maintenance; lenders turn off the water and power to cut the cost of letting the place sit. A poor appearance can complicate financing, but it doesn’t prevent sales.

Most of what people call foreclosed homes are being sold by lenders saddled with a property because there were no other takers at the foreclosure auction. The borrower on such a house owes more on it than the house is worth. These are known as R.E.O. houses, short for “real estate owned” on a bank’s balance sheet.

Distressed properties — those sold at a discount — made up 40 percent of resales in March, up from 35 percent a year earlier, according to the National Association of Realtors. (That includes not only R.E.O. but also short sales, in which a buyer pays less than the loanbalance, once it gets the bank’s blessing.) Though not a record, it is a huge portion of sales compared with what used to be considered normal.

Where the money comes from depends on the buyer and the property. If a house was in relatively good physical shape — with water and power turned on — it could be eligible for standard financing.

Otherwise, right now, all-cash sales are at their highest level ever — 35 percent of total sales, according to the Realtors. Cash buyers, often investors who don’t plan to live in the home, “are a major player in the R.E.O. market,” said Tom McGiveron of Realty Connect in Hauppauge, N.Y., a real estate agent who specializes in foreclosures on Long Island. “Asset managers want to move their portfolios as fast as possible,” he added.

For would-be owner-occupants without cash, the federally insured 203(k) loan is key, said Mark Yecies, the president of SunQuest Funding in Cranford, N.J. Borrowers can roll projected rehab costs into the loan.

As Mr. McGiveron put it, “Since most R.E.O.’s are as is, and the heat, plumbing and electric are turned off frequently, a 203(k) loan is necessary to cover the borrower and the lender — a lender will not lend money on a home where the major heating and electrical systems are not operable.”

Buyers generally hire an independent consultant certified by the Federal Housing Administration to review contractor cost estimates and architectural plans for things like whether the work will bring the property up to minimum standards while not going overboard on improvements.

“In other words,” Mr. Yecies said, “if you’re buying a home in Newark and you want to put in a Viking range, it’s not going to happen.”

Yet in a higher-priced neighborhood like Short Hills, N.J., he added, you probably would be able to borrow for more upscale appliances. The F.H.A. appraiser takes the consultant’s report into account when reviewing a property and determining how big the loan can be.

Not all R.E.O. properties are eligible, Mr. Yecies pointed out. For instance, a partially built house that has never had a certificate of occupancy requires a construction loan of the kind that a commercial developer would use.

Mr. Yecies estimated that an F.H.A-certified consultant would cost $500 to $1,200, depending on the extent of the repairs and the number of units in a property.

The interest rate on a 203(k) loan is about a quarter of a percentage point higher than on a standard F.H.A.-insured loan, and a buyer also can expect to pay 1 or 2 points, he said. (A point is an upfront charge equivalent to 1 percent of the loan amount.)

As with other F.H.A.-backed loans, down payments may be as low as 3.5 percent, and loan limits apply. Currently, most F.H.A. loans in the area are capped at $729,750. (Energy-efficient rehabs may be eligible for more.)

Despite the extra steps, these loans work, Mr. Yecies said. “We’re doing a half dozen a month here,” he said. “They can be done in a normal period of time, as long as everyone cooperates.”

I loved Debe Maxwell's post "The Longer the Shelf Life, The Less Chance You Have of Selling Your Home".  I wish I could send it to a couple of my sellers (previous and present).  In that post she demonstrated how a seller can inadvertently derail his own sale by trying to stick to an unrealistic price.  I have that same client today. 

Last year I listed a house that was what I call, "Basic Vanilla."  There wasn't anything special about the house.  It was in an average neighborhood.  It had basic features and no pizazz, but that's OK because there are a lot of people out there that can only afford a basic vanilla house.  No problem.

I receive a very generous offer in  the first 5 days, and I was elated!  The seller countered with a higher price and the buyer countered that with a slightly lower price.  At this point, I'm yelling, "Take the money and run!"  My seller, for some unknown reason, decided he wanted an extra $500.  Deal over!

He called over the weekend asking me to go to the buyer and coach him back into the deal.  The buyer would have nothing to do with it.  He was so aggravated the just wanted to move on.  Deal over, dead, blah! 

Now, 18 months later, he has another  opportunity.  This offer is 20% below the last one.  What will the end result be?  A year and a half has past with no offers.  Will history repeat itself, or will he realize that his rigid attempt to stick with his unrealistic asking price could derail another deal?  I'll let you know, but this time I'm going to be a little more emphatic about the deal. 

Will The New "Point of Contact" Plan Fix The Mortgage Mess?

Washington is at it again.  If you've ever worked with HAMP or HAFA, you already know that sometimes the cure may be worse than the disease.  Now, the U.S. Treasury is pushing a "single contact" initiative to the largest mortgage lenders using the HAMP,  HAFA and Up programs.  On the surface, it sounds like a good idea.  Once a borrower is in the process with the lender he is handled off to one person who handles his file throughout the process.  Borrowers are assigned to one person, one point of contact.  That point of contact makes sure the borrower has two methods of contact for him.  He explains all of the possibilities available to the borrower, and they work together to solve the borrowers mortgage issue.

At first glance, I thought, "This is great.  It will make things so much easier for both borrower and lender."  And then, reality settled in.  Wait a minute.  This is the same lender that loses your short sale file on 3 out of 4 attempts to submit.   It's the same lender that pays the current contact $10 an hour to answer the phone, answer your questions from a script and transfer your call to the next person who is going to hear your story.  What could go wrong?

Think about it.  This point of contact will need to understand the mortgage process from loan commitment through loss mitigation.  He will need to know state laws concerning bankruptcy, foreclosure, short sales and deed in lieu of foreclosure.  Most of the current asset managers I deal with handle up to 300 files at one time.  This person will need to handle an insurmountable number of borrower files, as well as, be the one "expert" dealing each one of those borrowers.  He will need to be available throughout the business day to any and all borrowers on his current file list.  Call centers will need to be divided to accommodate this new division for these consenting lenders.  Most mortgage providers don't consolidate bankruptcy, loan modification, short sales, foreclosure or even delinquent borrowers in the same department. That will mean more hires, more equipment, more locations and more overhead. 

I certainly don't want to pour cold water on an attempt to help with the mortgage mess we're in, but I'm not sure going back to the same people who already make problem loan issues miserable is a good fix.  I definitely agree that somewhere along the line a more streamlined process must be initiated, but is this it?  Beyond the challenges we already face with lenders, is their partner, the US government, who is on the verge of their own bankruptcy the best formulator of a sophisticated mortgage banking shift?  If they can't pay their own bills maybe they need a single point of contact in China.  I guess time will tell.

How is a Mountain View Probate Sale Different From a Regular Sale

A probate sale is not the same as a regular sale,  but unless court confirmation is required the differences are not that great. It is a world away from a short sale or foreclosure.

In a probate sale, the owner of a property has passed away and the home is being sold to settle an estate.  The owner may have had a will, or may not have had a will, but definitely did not put the house in personal or family trust.  The seller of the house is the personal representative of the deceased and is charged with disposing of the assets of the estate to be distributed to the heirs.  The personal representative can be anyone the owner requested if their was a will, a child or other relative, a trust department from a bank, a professional like a lawyer or accountant, or  a Public Administrator. This person must be appointed by the court and will get his or her authority from the probate court. 

The personal representative can request full authority to sell the estate, meaning they do not have to get the offer confirmed by the probate court or in certain circumstances they do not have full authority and must have any offer confirmed by the probate court and leave open the possibility of over bids to the original offer.

Certain rules apply:

1. The house is sold “As Is”
2. Disclosures are limited.  You will not be given a transfer disclosure statement, a seller’s supplemental disclosure, an earthquake hazard report, or a signed Natural Hazard Disclosure. You will be given the report, but the successor trustee does not have to sign it.
3. The water heater needs to be strapped but there is no smoke detector requirement for a trust house.
4. If the Personal Representative has information about the house they have to give it to you, but they may not know much.  For example, if the Personal Representative is a child of the owner and was involved in repairs on the house they will need to disclose that.
5. All heirs to the estate are given a Notice of Proposed Action to sell the home.  If this is not done until after an offer is accepted by the successor trustee then they have 45 days to return the notice or any objections, so escrow can not close before then. 
6. If the offer needs court confirmation then things can get tricky.  After an offer is accepted the court sets a confirmation date and a minimum over bid amount.  On that day another potential buyer can purchase the house if they offer the amount of the overbid or higher and the first buyer does not want to offer more.  At that point the subsequent buyer can not have any contingencies and must accept the house the way it is.

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

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

How is a Palo Alto Short Sale Different From a Regular Sale

A short sale is not the same as a regular sale and the differences are very significant. It is not a simple process and if you are buying or selling a short sale you should be working with an agent who knows what her or she is doing.

In a short sale the seller owes more on the home than it is worth. The seller needs to ask the lien holders if they will accept less than the amount owed to them.  There can be one or more lenders, and there can also be liens from other places, tax liens, personal loan liens, etc.  Every lien holder has to agree to agree to take less, and the first lien holder gets to say how much they are willing to give to the other lien holders. If everyone can come to an agreement then the sale can proceed.

Certain rules apply:

1.     The house is sold “As Is”

2.     Disclosures are the same as in a regular sale.

3.     The water heater needs to be strapped and smoke detectors are required.

4.     The home goes on the market and one or more people can make offers on the property.  The seller accepts one offer, and that offer is sent to the first lien holder for approval.  All other offers and any subsequent offers can be back up offers, but they are not supposed to be sent to the bank unless the accepted offer drops out.

5.     The buyer must include a proof of funds for the down payment, a pre-approval letter, and if the first lien holder requests it, their social security number.  They must not have any relationship to the seller.

6.     The first lien holder will look at the seller’s financial information and the strength of the buyer’s offer and determine if they will accept, reject, or counter the offer.  They also determine how much money they are willing to give to any other lien holders to settle the debt. This can take anywhere from a few weeks to a few months.

7.     Once the first lien holder has made a decision they put it in writing and the seller and buyer have to accept the terms of what the first lien holder is offering.  If everyone agrees and there are no other liens then the sale can proceed.

8.     The buyer has their contingency period, gets a loan, and closes escrows.

9.     If there are other liens the same process occurs for those loans.

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

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Federal Government Disclaimer (MARS): 1. You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us commission as agreed to in listing contract for our services.
2. Marcy Moyer of Keller Williams Realty is not associated with the government, and our service is not approved by the government or your lender; and 
3. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Things Your Mother Said . . .

Most of us have a list of things our mothers said to us when we were kids.  Some of those things came to pass and some didn't.  Here's a short list of the ones I've heard from my mother and the mothers of my childhood friends.

• Don't go outside without your coat on.  You'll catch your death of cold.  Mom 0 / Kids 1  (Shivered a few times, but no death.)
• Don't climb that tree you'll fall and break your neck.  Mom 0 / Kids 1
  
• If you fall out of that tree and break your leg don't come running to me.  Mom 0 / Kids 1
• Don't run in the street, you'll get run over!  Mom 0 / Kids 1
• Don't go outside with wet hair.  You'll catch pneumonia.  Mom 0 / Kids 1
• Put that BB gun down.  You won't be happy until you shoot somebody's eye out.  (Well, I never shot anybody's eye out, but I was never really happy either.  Just kidding.)  Mom 0 / Kids 1
• Don't make that face.  It'll freeze that way.  Mom 0 / Kid 1
• If all your friends were jumping off a cliff, would you jump off a cliff?  (And bungee jumping was born.  Thanks, Mom) Mom 0 / Kids 1
• Wait till your father gets home.  Mom 0 / Kids 1 (Whew!)
• You've got enough dirt behind those ears to grow potatos. Mom 0 / Kids 1  (Not a single spud.)
  
• When you grow up I hope you have kids just like you.  Mom .5 / Kids .5   (At least they've been entertaining.)
  
• Close that door.  Were you born in a barn?  Mom 0 / Kids 1 (Weren't you there?)
• If you swallow that watermelon seed you'll grow watermelons in your stomach.  Mom 0 / Kids 1   (And I thought I was just fat.)
• If you keep playing with it, it will fall off!  Mom 0 / Kids 1 (I'm not really sure what "it" was, but I'm glad to report that I still have all my parts.)
• Don't ever let me catch you doing that again!  Mom 0 / Kids 1 (Change in venue.)
  
• You should go into Real Estate.  I think you would be good at it.  Mom 100 / Kids 0  Thanks, Mom!

Language Makes All The Difference 

I recently worked with a foreign couple, and we had moments where the language barrier between us brought everything to a crawl. It wasn't that we  were having problems with each other, but the differences in language and customs  caused us to have to take a much slower pace when communicating.

Language is important in real estate. Actually, language is important in all affairs in life, but I wonder if we take our language for granted when speaking to people from other countries.  Let me give you a simple example.   Let's take the word "Time."

We all know that we have limited time, but then again we say, "Don't worry, we have all the time in the world!" How much is that?  What about when your time is up?  Does that mean you're suspended in time?  Can time stand still?  If time stops, how can it speed up?  Or does time really fly? But, I've heard that time can slow to a crawl.  Is something really "only for a time?"  Or does it stand the test of time?  If so, who is doing the grading?  Is it possible for it to sit the test of time?  If we save time, can we use it later?  What about when we make up time?  Is that like 26 o'clock?

When we play sports we have time outs, but when that's over it's time in. We have time on the clock, but where else would it be?  Sports have time keepers.  Does that mean they get to take it home with them, and if so, do they get to keep it for a time?  Or do they have to give it back?  If they keep it, do they store it in a time capsule for a later date?  Or do they save time in a bottle?

We have daytime, but we also have nighttime. Somehow we have figured out how to have daylight savings time, but we haven't figured out how to have nightlight savings time.  Maybe that's because there is no light at night, and you need light to save time.  Is one time more important than another?  Because we have prime time.  Is that daytime or nighttime, or is it neither?  If it's neither, what is it? And, what about when we punch a time clock? Is that some sort of numerical schism between people and time.  I've also heard that time is money.  I thought time was time.  So, which is it?

It's easy to figure out what Summertime, Wintertime and Springtime are, but why don't we call the fourth season Fall-time? Is it because it sounds like an injury?  We all know when it's Christmas time, because it always follows the beginning of Wintertime.  But, Spring break doesn't always follow Springtime. There are time zones.  Does that mean there are zones without time, and if there is no time in some zones does that mean they have no time for you?  Is that a bad time?  Or is it a good time?

We're familiar with Father Time, but I've never heard of Mother Time. Is time sexist?  I know there is a delivery time which would correspond with Father Time, so there must be a mother who doesn't know what time a baby is going to arrive, but she's happy just as long as the doctor is on time and not taking time off.

Well, you see the dilemma I sometimes face when dealing with foreign clients who don't understand our use of language.  It can be real challenge.  I guess I'll stop wasting your time with this blog.  But, I hope you had a good time reading it. Hopefully, it has been time well spent, because time management is important!

Have you ever gotten a Save the Date invitation for an upcoming event? They are great because they help you plan for the future, and bring excitement for the future into the mix. I got a lovely e-mail today from my negotiator on a Santa Clara Short Sale Listing.  He said that he was just waiting for management to approve his approval and he should have something in writing to me in a few days.  This was very nice for a number of reasons:

1. Everyone involved is looking forward to getting approval and moving forward. The buyer and seller need to know things are moving forward.

2. After short sale approval there is a lot that needs to be done. The buyer's loan gets initiated, appraisal is ordered, and the property inspections are completed. The HOA docs also need to be ordered if the home is a condo and they have not already been ordered.

Knowing that approval should be coming in a few days (baring any management hiccups) means we all have a heads up to get ready to roll.

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

Federal Government Disclaimer (MARS): 1. You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us commission as agreed to in listing contract for our services.
2. Marcy Moyer of Keller Williams Realty is not associated with the government, and our service is not approved by the government or your lender; and 
3. Even if you accept this offer and use our service, your lender may not agree to change your loan.

What Do You Do To Keep Your Agents Motivated? 

During the early part of the roaring 2000s our office was a selling machine.  Of course, most offices were like that, but when the market began to slide into recession things slowed down.  Our broker, who was a great guy, was managing two offices.  He spent the majority of his time at the other office in a large metropolitan city (approximately 29 out of 30 days).  As the recession became more and more severe our office began to drop sales and agents.

The worse things got with the economy the worse sales got with the office.  Our broker was seldom around to encourage and inspire the office, and the agents found little enthusiasm and motivation to overcome the economic struggle the country was entering into.  Finally, a year ago that office closed.  It really was the right thing to do.  Most agents were doing little to nothing by that time.  In our former broker's defense a dozen or more offices have closed in the area.  So, it wasn't specific to our location.

There were a few of us who were highly self-motivated who simply moved on.  I actually joined that company because I was very self-motivated, and I didn't need the broker looking over my shoulder all the time.  I also didn't need weekly pep rallies to keep listing and selling homes.  I love the job.  When the office closed I started my own company and it's doing well, but my questions for you are,

"What do you, or what does your office do during hard times to keep your agents motivated and on track?  What keeps the agents excited when it becomes a real challenge to succeed in their profession?  How do you deal with the agents who need that extra boost to stay steady during slow time?"

Small Things to Help With Short Sales

A lot of agents avoid short sales because of the horror stories they hear from other agents, and I really can't blame them.  Lenders don't always make it easy to navigate the short sale process, but there are things an agent, negotiating team and the homeowner can do to keep the lenders honest and on track.

One of the great frustrations I had on my early short sales was the lender's constant insistence that they had no record of our communication.  On one particular short sale I received bank approval to proceed in a short sale, received an offer and submitted it to the bank.  When I followed up to check on the progress the representative informed me that they had no record of their approval for me to speak on behalf of the owner.   The owner and I sent the paperwork in again.  A few days later I called.  Same response.  No record of the paperwork or approval.  That went on for about 6-8 weeks.  I sent the paperwork in twelve times, and each time they said they had no record of the paperwork.  I had FedEx receipts, call logs, etc., but to no avail.

Finally, I realized that I needed a way to confirm that I had spoken to a bank representative in order to stop the constant insistence that they had no record of my calls or confirmations.  So, I started a different approach with the lender.  Once I established a contact with a lender rep on the phone I requested their first and last name, call center location, and their employee badge number or employee ID number.  If they refused to give the information I went up the chain until I found a manager or department head who would surrender the information.  I recorded the date and time down for each call, contact name and ID and the call center location.

That was the end of the constant run around about "no contact" records.  There was no way I could have an employee ID number without the employee surrendering it to me.  That confirmed that I had spoken with a lender representative.  I encourage all of my short sale homeowners to at least get that employee ID information to confirm the contact, and everyone has done that without a single complaint. 

Real Estate is Like a Box of Chocolates . . . 

You know how Forrest Gump always said, "Life is like a box of chocolates"?  Well, it dawned on me today that real estate clients are like a box of chocolates.  You know, you've got that sweet couple who you just love to see over and over.  You can't get enough of them, and when the deal is done you continue your relationship as friends.

Then you've got that one client who is like that one chocolate that no matter how many times you try it you just can't develop a taste for it.  Of course, there is always that box of chocolates that is a mystery.  Nothing is labeled, so every bite is a surprise.  You get that nutty chocolate that delights the palette, and then there is that gel thing that nobody can define.

You have your favorites, and you have the ones you like to leave in the box in the event somebody visits.  You know, those chocolates you wouldn't eat on a dare.  There are those that look yummy, but after the first bite you find that undefinable gel stuff.  Blah!  What is that?  There is always that one that brings back childhood memories of your favorite candy, and there is that one that bring memories of your crazy aunt.  

Obviously, I've spent way too much time with chocolates, but when you head off to the office today keep in mind that "Real estate is like a box of chocolates.  You never know what you're going to get!" 

I frequently hear the question "Can I short sell my house if I have not stopped making payments."  The answer to this depends on your lender, the investor on the loan, and the phases of the moon.  However, at least right now, if you have a loan with Wells Fargo then at this moment in time they will look at approving a short sale if you have not stopped making your payments.  Wells Fargo has two different review processes, one for currently defaulted and one for eminent defaults.  So if you are currently making your payments, but you have circumstances which will make it impossible for you to make the payments in the future then you are likely to have an eminent default and can potentially qualify for a short sale.  Nothing is for ever, and with short sales there are no guarantees, but it is worth a try.

If you have any questions about short sales in San Mateo or Santa 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

Federal Government Disclaimer (MARS): 1. You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us commission as agreed to in listing contract for our services.
2. Marcy Moyer of Keller Williams Realty is not associated with the government, and our service is not approved by the government or your lender; and 
3. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Feel Alive MY Friends, Feel Alive! 

Have you ever driven through one of those automatic car washes?  You know, you drive up, pay for your wash, you're immediately signaled to drive in and at the appointed place you're signaled to stop.  Once you stop all kinds of things happen.  Water sprays, soap flies, funny looking noodle creatures rub all over your car and then the process repeats in reverse.  If all goes well, you drive out the other side with a clean car.

Well, that's the way it's supposed to happen.  One day my wife and I were working on one of our rentals and we decided to take a break.  During our break we went to the carwash.  We were third in line, so we settled in to a good conversation and waited our turn.

When the first car pulled out, the second car started up and began the process of pulling into position for the wash.  We pulled forward to second position and waited our turn.  Just about then we noticed that the car pulling forward missed the appointed spot and the lights went from red to green and a buzzer sounded.  She overshot her stopping place.  The car wash momentarily spit soap all over her car and then stopped.

She realized she had overshot the stopping place so she put the car in reverse and began to back up.  When she got to the appointed stopping place the buzzer sounded, the light went red and the car wash began spitting soap all over her car.  Did she stop?  Oh, nooooooo, she kept coming back until the buzzer sounded, the lights turned green, the sign flashed "Pull forward" and she stopped.  Now her car is covered with foaming white soap, and she realizes she has gone to far and begin to pull forward. 

This went on for about 5 mintues.  My poor wife and I are in our car laughing so hard we're crying.  By now, the lady has got her car completely covered with soap, but no water.  She hasn't landed in the right place long enough to start the car wash.  Buzzers are buzzing, lights are flashing and customers are crying,  It was quite a scene.  She finally pulled out and drove way.  She looked like a soapy kid fleeing a bubble bath. 

When she pulled away, I suddently felt a little pressure to hit the car wash just right so the car behind us wouldn't be blogging one day about the goofy guy who couldn't line up his car in the car wash.  Well, I'm glad to report that I landed in the zone and had a nice car wash. 

Life is a lot like that lady in the car wash.  Some days you drive in, stop in the right place, get your car washed and drive away like nothing happened.  It's a vanilla day, and vanilla is good.  Other days you're covered in soapy water driving down the street and you have no idea what just happened.  It's just a blur.  Ironically, it's those moments of craziness that wake you up, shake you real good and say, "Hey!"  You wake out of your routine, laugh at yourself and move on.  And, while you drive your soapy car down the street I hope you find the humor in the whole thing (even though you'd like to be invisible right then).   It's a Tutti Frutti kind of day.  They are so necessary in our lives.  They remind us to feel alive when we've fallen into a life of routine.  Feel alive my friends, feel alive!

Keeping Up With The Small Stuff (edit/delete)

When two people get married a lot of negotiating comes in to play from the moment they say, "I do."  And, it's not always the big stuff you might think that couples negotiate over.  Sometimes it's very small but important stuff.  Such as, which way does the toilet paper roll off the hanger?  Does the paper roll off the top, or does the paper roll off the bottom or does it matter?  What about toothpaste?  Is it OK to squeeze it from the middle, or is it absolutely essential to squeeze it from the bottom to top? 

What about unloading the dishwasher?  My wife has often offered to hold a family class on how to open the dishwasher door.  It appears that the males in the family (1 old one, 2 young ones, and 1 male dog) don't seem to have that process figured out yet.  But, it's not just loading it, what about unloading it?  Whose responsible for unloading it?  And then there's laundry.  Who is responsible for putting the laundry away?  Is it always mom, or should other more testosterone laiden types get involved too?

Little things.  It's the little things that make a marriage work along with the big things.  It's also the little things that make a business work.  I don't remember how many times I've called a business colleague only to leave a message that is never returned.  Sometimes, it's a little thing, but like a marriage, it is often the little things that cause so much stress.  It's irritating to call, email and text colleagues only to have them ignore or not respond.  So, what's the solution?  Well, you could leave the clothes piled up in the laundry room until you have nothing left in your closets or drawers, or you could actually call again, email or send a text.  How do we deal with little things?

I think the best response for us is to not let the little things get us down.  That can be a battle though. This morning I was talking to a good friend who is a physician.  She was telling me she would like to get out of the business.  Why?  She said the real joy she has in her work is in the patient's room.  That's where she wants to spend all of her time.  She is a wonderful physician, and it would be awful to lose her, but I do understand her dilemma. She went on to say that when she leaves the patient and closes the door behind her there is all of this stuff that hits her right in the face.  She doesn't like the little stuff.  She doesn't want to look at the books, or coordinate cleaning crews or repairmen and she frets over the people that work with her who are depending on her for their livlihood.  That may not sound like little stuff, but it's a bunch of little stuff combined to seem like big stuff.

Little stuff.  It follows us around everyday.  A tail light is out.  A kid forgets his lunch.  The car is low on gas.  The dog throws up just as you're about to walk out the door, and you're already late for a meeting.  Your computer locks up when you're dazzling a potential client with a presentation.  How do we deal with the little stuff?  Do we return phone calls?  Do we send notes, call past clients, keep our files in order and follow up with vendors and contractors? 

My life is full of little stuff.  I do pretty good with it for the most part, but sometimes it gets away from me, and that's when I find my self scrambling to catch up.  Like my physician friend, I don't like that side of business.  I like flowing along on a sea of glass with everything falling into place, all meetings kept, and kept on time and every detail complete.  When I snap out of my dream I'm reminded that this is real life, and stuff happens.

So, here's a short list of things I do (or like to do when I remember) to keep up with the little stuff:

• Make lists of tasks for the day ( I love to check things off)
• Make lists of things that are going to need to be done over the next week, month, year, etc.  Make sure dates and times are included.  I love Outlook for that feature.
• Keep a journal of every phone call, email and text.  Note what needs to be responded to right away, and note what can wait until later and make a notation to remind you to follow-up.
• Keep your files filed.
• Establish a file system that works foryou.  Mine may not work for you and visa versa.  Find a file system that makes you efficient.
• Move dead files to an out of the way place where you can get to them, but they're not in the way.
• Stay in touch with your clients; email, text, phone call, whatever.
• Educate yourself on your profession.  Are there better more efficient ways to do business (absolutely, always).
• Look for ways to cut down on tasks.  For instance, some software will do things for you on an automated schedule.  Use every tool you can find to help you cut down on little stuff.
• Keep an eye on that co-worker who annoys you with her stunning efficieny.  She may have a thing or two you can learn.  Ask her how she makes work looks so easy.  She would probably love to tell you.  People love to talk about themselves.
  
• Subscribe to forums like, well, Active Rain, where you can learn from some of the best brainiacs in the business. 
  
• Get enough food for energy, and get enough sleep to restore you body and mind for each day.
• Relax.  Kick off your shoes, watch a movie, take the dog for a walk, take a bike ride or a swim, call an old friend, read a book, look at photo albums, you get the idea - get away from work.
• And most of all, put that toilet paper roll on so the paper comes off the top!

Keeping Up With The Small Stuff (edit/delete)

When two people get married a lot of negotiating comes in to play from the moment they say, "I do."  And, it's not always the big stuff you might think that couples negotiate over.  Sometimes it's very small but important stuff.  Such as, which way does the toilet paper roll off the hanger?  Does the paper roll off the top, or does the paper roll off the bottom or does it matter?  What about toothpaste?  Is it OK to squeeze it from the middle, or is it absolutely essential to squeeze it from the bottom to top? 

What about unloading the dishwasher?  My wife has often offered to hold a family class on how to open the dishwasher door.  It appears that the males in the family (1 old one, 2 young ones, and 1 male dog) don't seem to have that process figured out yet.  But, it's not just loading it, what about unloading it?  Whose responsible for unloading it?  And then there's laundry.  Who is responsible for putting the laundry away?  Is it always mom, or should other more testosterone laiden types get involved too?

Little things.  It's the little things that make a marriage work along with the big things.  It's also the little things that make a business work.  I don't remember how many times I've called a business colleague only to leave a message that is never returned.  Sometimes, it's a little thing, but like a marriage, it is often the little things that cause so much stress.  It's irritating to call, email and text colleagues only to have them ignore or not respond.  So, what's the solution?  Well, you could leave the clothes piled up in the laundry room until you have nothing left in your closets or drawers, or you could actually call again, email or send a text.  How do we deal with little things?

I think the best response for us is to not let the little things get us down.  That can be a battle though. This morning I was talking to a good friend who is a physician.  She was telling me she would like to get out of the business.  Why?  She said the real joy she has in her work is in the patient's room.  That's where she wants to spend all of her time.  She is a wonderful physician, and it would be awful to lose her, but I do understand her dilemma. She went on to say that when she leaves the patient and closes the door behind her there is all of this stuff that hits her right in the face.  She doesn't like the little stuff.  She doesn't want to look at the books, or coordinate cleaning crews or repairmen and she frets over the people that work with her who are depending on her for their livlihood.  That may not sound like little stuff, but it's a bunch of little stuff combined to seem like big stuff.

Little stuff.  It follows us around everyday.  A tail light is out.  A kid forgets his lunch.  The car is low on gas.  The dog throws up just as you're about to walk out the door, and you're already late for a meeting.  Your computer locks up when you're dazzling a potential client with a presentation.  How do we deal with the little stuff?  Do we return phone calls?  Do we send notes, call past clients, keep our files in order and follow up with vendors and contractors? 

My life is full of little stuff.  I do pretty good with it for the most part, but sometimes it gets away from me, and that's when I find my self scrambling to catch up.  Like my physician friend, I don't like that side of business.  I like flowing along on a sea of glass with everything falling into place, all meetings kept, and kept on time and every detail complete.  When I snap out of my dream I'm reminded that this is real life, and stuff happens.

So, here's a short list of things I do (or like to do when I remember) to keep up with the little stuff:

• Make lists of tasks for the day ( I love to check things off)
• Make lists of things that are going to need to be done over the next week, month, year, etc.  Make sure dates and times are included.  I love Outlook for that feature.
• Keep a journal of every phone call, email and text.  Note what needs to be responded to right away, and note what can wait until later and make a notation to remind you to follow-up.
• Keep your files filed.
• Establish a file system that works foryou.  Mine may not work for you and visa versa.  Find a file system that makes you efficient.
• Move dead files to an out of the way place where you can get to them, but they're not in the way.
• Stay in touch with your clients; email, text, phone call, whatever.
• Educate yourself on your profession.  Are there better more efficient ways to do business (absolutely, always).
• Look for ways to cut down on tasks.  For instance, some software will do things for you on an automated schedule.  Use every tool you can find to help you cut down on little stuff.
• Keep an eye on that co-worker who annoys you with her stunning efficieny.  She may have a thing or two you can learn.  Ask her how she makes work looks so easy.  She would probably love to tell you.  People love to talk about themselves.
  
• Subscribe to forums like, well, Active Rain, where you can learn from some of the best brainiacs in the business. 
  
• Get enough food for energy, and get enough sleep to restore you body and mind for each day.
• Relax.  Kick off your shoes, watch a movie, take the dog for a walk, take a bike ride or a swim, call an old friend, read a book, look at photo albums, you get the idea - get away from work.
• And most of all, put that toilet paper roll on so the paper comes off the top!

The Short Sale Boomerang! 

I'm starting to see a boomerang affect from the high volume of short sales in our area.  I recently had a client who wanted to buy a property.  I met with him and his wife, and I had them get prequalified with their lender and they qualified for a nice property.  Off we went in our search, and after a couple weeks we found a great house.

The only issue with this house was that it was an REO and required a certain lender do the pre-qual before the seller would consider a contract.  So, I sent my buyers off to a friend who worked at that lender with the expectation that they would be back shortly with another prequalification letter.  It would be easy since they had already been prequalified, right?  That's what I thought, anyway.

After the interview, the lender called and asked how much my clients had shared with me about their financial history.  They had only discussed what their bank said in their original pre-qual letter.  The lender couldn't share their personal information because of confidentiality, but with their approval, she told me that they had a short sale last year.  In the days that followed, I confirmed that my buyers had done a short sale the year before.  When asked what led to the short sale they explained that they didn't like their neighborhood or the trend it was following, and they wanted to move out of it so their children wouldn't grow up there

Wow!  That was information that needed to be shared up front in the beginning of our interview process.  Later, I emailed them to get the name and number of the lender that had prequalified them prior to our visit with the second lender.  I'm still waiting on that info three weeks later.  That experience has made me a little more cautious about taking someone at his/her word.  I know it's necessary to trust, but I believe I will need to start a "trust, but verify" policy with new clients. 

"Short sales for convenience" are going to catch a lot of people off guard when they start their next property search.  There are ways to buy when you've had a short sale recently, but it will likely be with investor tactics and not through FHA.  People who are contemplating a short sale should be advised that short sales are not a "get out of jail free" card.  When a seller is trying to balance the options and a short sale is considered we need to be completely honest with them if it's not a true hardship situation.  Choices have consequences. A short sale may be the only route some sellers can take, but it should never be used to blow off a mortgage commitment that is not a hardship situation.  IMHO.

Someday, Your Kids Will Think . . .

No matter how successful and accomplished you are, or how many degrees you earn, or how widely respected in the community you are, at some point in your life your kids will think you're a goober.  I remember growing up watching my mom as technology began to make very rapid advances, and she was totally unaware of them.  So, whenever conversation turned to the latest technological advances her contributions to conversation were often classic. 

But, it doesn't have to be technology that gets us parents that broad smile from our children.  It can be something very simple.  This week I was grocery shopping.  I love cookies, and my favorite cookies were on sale.  Each pack was $1.00.  Wow!  One dollar seemed like a steal for the extra yummy cookies.  So, I loaded up a few packages of cookies, and then I noticed a little sale sign that said 5/$5.  Wow!  Another great deal!  I can buy one for $1 or I can buy 5 for $5. 

In my totally unconsious state, I loaded five into my cart and headed to the checkout.  About two isles over I had an "ah ha" experience.  Wait!  One for $1 is the same as 5 for $5.  Ding!  A goober moment.  I could have taken them back and only purchased what I really wanted, but I really wanted all of them.  So, I checked out and headed home. 

Of course my lovely wife couldn't wait to tell my sons about the great deal I got on cookies.  And, in that brief moment, I was no longer the brilliant accomplished business owner.  I was the "goober" dad they have come to love.  It was OK.  Actually, I laughed first and thought the same thing about me.

If this has happened to you don't fret.  It's a stage of life I call "Mental Pause."  All of us go through it at some point.  It's not terminal, it will pass and you'll be back to normal.  At least until the next moment when you have a bout of "Mental Pause."