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Yesterday I got a call from a client I will never forget. She said "I was able to modify my loan, I can keep my Blossom Valley house, and you were the only one who believed I could do this, so thank you." This made me so incredibly happy.

So what happened was this client and her then husband were pregnant with their first child and ready to buy a home together. They found their dream home in Blossom Valley with my help, purchased it in 2006 with 10% down. In 2007 they had enough appreciation to take out a 2nd loan which they did. In 2010 they had just had their second baby, the home was $250,000 under water, and they split up.

My client did not want to leave the house and try to find a home for herself, the two young children, and her 2 large dogs. She was determined to stay put, get her husband off title, and not disrupt her children any more than necessary. Her lawyer said short sell, her ex stopped helping to pay the mortgage, and her efforts to refinance went no where.

I encouraged her to keep trying and not move her children or her border collies from their dream home and lot.

After 2 years she got her principal reduced by 100K (thanks to First Horizon selling the loan to Nation Star who then was very co-operative in modifying her loan.) her ex signed a quick claim deed (don't know why, but he did), and she was able to pay off the second with savings, stock money, and cutting expenses.

So now she has her home, her kids are not disrupted, and with home prices appreciating she probably even has a good investment.

While I always like to help out on Blossom Valley short sales, in this case I am much happier that I did not have to.

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

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

I finally closed a Redwood City short sale that started in Sept of 2011. Yes, one year for a short sale. What was the problem? Let me count down just the top 10.

10. The sellers asked another agent in my office to sell this home as a short sale but this wonderful agent had never listed a short sale before. She asked me to help her, but by the time she did they were 2 weeks from the trustee sale date and the sellers were sitting on a perfectly good offer they thought was too low.

9. There was a first and second loan with Chase as well as a large 3rd loan which was a carry back from the previous owner. The seller wanted me to negotiate with Chase but have her lawyer negotiate with the 3rd lender.

8. The seller refused to give me any of her financial documents and said she would provide them to Chase herself.

7. The first approval came in Dec of 2011 at purchase price with 5K going to the second and 11K going to the 3rd. The seller said the 3rd lender was going to take that offer, but then the lawyer for the seller said the 3rd lender rejected the offer.

6. The buyer offered to give the 3rd lender another 10K. No response from 3rd lender. Chase said the buyer could not pay off third.

5. The approval from Chase expired, the negotiator at Chase left the country, the house was put back on the market asking for a large contribution to the 3rd. Chase said buyer could not pay off 3rd.

4. New buyer came in and offered 30K to the third on top of the old price (515K)

3. New BPO said house is worth 540-560K so Chase said offer is not high enough. Lawyer for seller and seller told me I should start negotiating with the 3rd. He said he wanted 80K from the buyer and 7K from Chase. I get him down to 50K, Chase said submit again.

2.Buyer, Chase, 3rd lender, seller all agreed to purchase price of 562K with 50K going to 3rd from the buyer and no contribution from Chase. Chase inexplicably changed their policy and will now allow the buyer to contribute to the 3rd payoff. Chase said close by Aug 31.

1. Lots of delays getting the loan funded. Aug 29th still no loan docs. Chase said after 10 trustee sale postponements they were done. Close on Aug 31 or they take the house back. Seller was in Europe but managed to come to back last week of Aug to get her things and sign off. Buyers agent got lender to fund without loan docs and we somehow managed to get buyers signed and closed on Aug 31.

This was a tough one. Most short sales are not this hard, but the secret here was believing that no does not mean no. Not a lesson I would want to teach to my children, but in the short sale world it is a great one.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com``

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

Silicon Valley Home Prices are on the rise. Inventory is low, and there are plenty of buyers out there making multiple offers the norm, not the exception. Investors have been a big factor in the market since the crash, but now it may be time for a change if you are an investor.

For the last few years investors were gobbling up foreclosed homes, short sales, and other bargain priced properties. These were often rehabbed and resold quickly. While there was often competition from other investors, it was manageable for many investors.

The landscape has changed. The inventory is so low, and the interest rates are not only low, but loans are a little easier to get than right after the crash. This along with a very high employment rate, and skyrocketing rents, has sent first time home buyers flocking back into the market.

As a result, the chance to buy a home for a low enough price to rehab and resell while making a 30% profit is not working in the investor's favor. It may happen occasionally, but not often.

However, there is still plenty of money to be made investing in real estate. Maybe it is time to look into a buy and hold strategy. It will not make you money overnight, but in the long run will bring in more money than being able to snare the occasional flip.

So if you have $500,000 to spend, why not look for 2-3 homes you can purchase, get a positive cash flow, and sell in 5 years for a great profit if the market has appreciated, or keep holding until your profits are at an acceptable level. With a buy and hold strategy the investor should be looking more at appreciation potential than getting the best price or not buying. It is still number crunching, but the set of numbers being crunched is different.

If you have any questions about buyer or selling investment properties in San Mateo or Santa Clara counties please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

DRE 01191194

Blossom Valley is a hot bed of short sales. It is one of the neighborhoods in the Silicon Valley that has not gone back to the values of 2007-2008. So many of the homes for sale right now are being sold as short sales since the owners have negative equity in their homes.

There are currently 196 pending homes listed as short sales.

There are 286 pending sales of all types.

The percentage of total pending sales which are short sales is 68%.

This is pretty impressive, but the big question is how did this happen?

I have a few theories.

Blossom Valley had some remarkable levels of appreciation early in the century, especially between 2005-2007. There are a number of reasons.

1. Easy money

2. Easy access to downtown San Jose which had ambitious plans for redevelopment

3. Good schools. At one point there were sections of Blossom Valley where you could get a home in a school district with a high API for less than any other neighborhood in Silicon Valley.

4. High tech companies close by including IBM right in the neighborhood.

Then the market crashed, credit tightened, San Jose gave up their redevelopment plans, major employment areas kept moving north to Mountain View, Palo Alto, and San Francisco, and Blossom Valley values plummeted in 2008-2009.

We are on the way up again, but many homeowners are still underwater. The inventory is now quite low. There are only 61 homes for sale right now, and 13 are short sales, or 21%.

If you are a seller, your home will sell, and quickly. If you are a buyer, there is a lot of competition, but the values are there.

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

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

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.

Working with Non-Profits to Generate Short Sale Leads.

After my last two blogs.... (See Links Below)....

http://reopro.ning.com/profiles/blogs/the-liability-of-a-preferred-short-sale-agent

http://reopro.ning.com/profiles/blogs/the-short-sale-tsunami

I had a couple request for some more information on just how I work with non-profits to actually generate a short sale lead. So, this blog will do just that. It will be a longer blog than what my readers are accustomed to but, it's going to be full of good information.

First off, I have to admit, this idea really isn't unique to me. In fact, this method was manifested between myself and a friend of mine who was already working with a home crisis center here in Tennessee. You see, they were having a problem  with helping their homeowners who didn't qualify for any modification or home rescue program they had. Most of these people just ended up going into foreclosure and as many of you know, that wasn't what this non-profit wanted to see happen. In fact, their methodology, ideology and general operating standard was to move non-qualifying persons into short sale. They, themselves saw the benefit of short sale vs foreclosure and as such, elected to move these non-qualifying persons that route. The specific problem they were having was they couldn't find competent Realtors. In fact, it had gotten so bad and they had lost so many homeowners to foreclosure, they almost gave up the entire non-profit or at the very least, was debating to just dramatically reduce the number of people they were willing to help. This is where I came into the picture. To make a long story short, we turned it around and now, it's working very well for us all and in fact, we will be dramatically expanding with the help of a local bank.

So, based on my experience, you have two schools of thought. You can either start your own 501c3 based on rescuing people from foreclosure or, you can partner with a non-profit who is already doing just that. Now, the problem you will run into is, many of these non-profits will tell you that they can't have a preferred agent list or that they can't solely recommend you and that is for the most part, true however, not in all situations.

You see, many Realtors come to these non-profits with their hands out, like little birds waiting to be feed "free" leads and as such, these non-profits get nothing back in return. In essence, they are not willing to enter into an exclusive relationship because they have no benefit ...monetarily speaking. What I ended up doing was figuring out how these people got paid and from everything I saw, the grants they got were based on the actual number of people helped so, instead of coming to them asking for a lead handout and came to them giving them a lead handout. That's right, I flipped the script, which by the way, I am told I am good at.

What I mean by flipping the scrip is, I brought them leads. What I would do is, send out post card direct mailing to at risk neighborhoods...about 1000 - 2000 post cards at a time, so I was spreading a large net and out of those leads I captured, I referred them directly to my partner non-profit. This was great for them because, it ended up bumping up the number of people they helped and in return, increased their grant money. The deal was, every lead I send you....you must send back. Now, granted, I stayed in touch with my lead...I worked it, I emailed them, I called them, asked them how the loan modification was going or how the housing counselor was working with them so, they really didn't have to "send" anything back to me but, none the less, they knew if it was a Jesse G. lead, whenever the question came up about Realtor or real estate matter, the name Jesse G. flowed from their lips like milk and honey. In their mind, they weren't referring a Realtor, because the homeowner was already working with a Realtor (ME) when they sought out their assistance to save their home. So all they were doing was stating the fact back to the client, "Your Realtor, Jesse G. can help you with that." or "We will call your Realtor Jesse G. and let him know you are ready for short sale." etc...etc.... The best part was, they were happy to do that.

Now, the benefits to working with a non-profit that is already established seems pretty obvious to me but, let's go over some of those just to make sure you and I are on the same page.

Benefit # 1: No Cost

I had absolutely no out of pocket expense to get the full benefit of a certified, designated, industry respected home rescue non-profit to help my homeowners.  This was by far the biggest benefit, it cost me nothing.

Benefit # 2: Risk Management

Honestly, short sales will always have risk to the Realtor doing them however, because I am not involved in any of the Loan Modification aspect and hence, the realization on the homeowners part that a short sale is their best option, my risk is dramatically reduced. You see, I don't find myself having conversation with homeowners as to why a short sale is the best option and that is because, they have already exhausted all their other options through the non-profit. In other words, I don't get into sticky conversations or strange situations where the homeowner may feel that I am out to just short sale and make a quick buck. This way, my risk is managed through the use of the non-profit.

Benefit # 3: Ready, Willing and Able to Short Sale

By the time the non-profit is done working with the homeowner and it's come to the fact that they will have to short sale, by this time, the homeowner is ready, willing and able to list the home. In fact, when working with a non-profit, my short sale listing average is about 97%. Yeah, that's right, 97%. This is because the homeowner is much more ready, willing and able once they have spoken to someone who doesn't have a financial interest in the sale of their home and still end up being told, you need to short sale. At this point, many homeowners see it as a no brainer. Now, granted, some just don't get it, about 5% are simply going to stay in the home, not cooperate, get foreclosed on, get an eviction notice and about 3 months later, the Sheriff and the REO Agent move all their stuff to the lawn and lock them out. This is rare but, not so rare that I haven't seen it happen. None the less, 97% of the time, I get the listing.

Benefit # 4: Banks Cooperate

Because the non-profit has already worked through the banks home rescue programs and because most of these banks have policies and procedures that benefit homeowners who work with non-profits to save their homes, these banks cooperate. In fact, most of the time, my homeowners who have worked with the non-profit almost seem to get preferred treatment from these banks in the short sale process. Now, I haven't figured out completely why but, I really think it has a lot to do with the fact that these banks are regulated to "help" homeowners and if the homeowner works with a nationally recognized non-profit, like the one I work with, all of a sudden, they look good. So, when it comes time to short sale, they have all the necessary documents, they have crossed all T's and dotted all the I's. This was by far the biggest surprise to working with a non-profit, banks cooperate with them better than they did me on my own.

Benefit #5: No Additional Commission Splits or Referral Fees or Membership Fees

Because I am generating these leads myself, through my own marketing, I don't pay anyone for being a member of this network or that network, I don't payout a referral fee, I don't additionally split my commission.....all that I make is all mine.

Benefit # 6: Additional Leads Direct from the Non-profit

After a while, the non-profit and I had lunch and we talked about helping out the leads that I didn't bring in but they end up getting on their own marketing. Now, granted, for these leads, I couldn't be their exclusive agent, they had me on a list of 2 other agents but, guess whose name was at the top of that list.......yep, it was mine. Now, granted, I had to go out and win the lead but, it wasn't hard. Now, I can't say that the non-profit talked my up because, I really don't know, I am not a part of those conversations with the homeowner but, that 97% listing ratio includes ALL leads, mine and those exclusive to the non-profit....you following me?

So, that's the jest of how I work with an existing non-profit in my area. Keep in mind, your success still depends on you and the marketing you do. Granted, my marketing is something I keep close to my chest but, if you want to learn a little more about what I use for marketing...and yes, I only use one marketing strategy right now and yes, it works well, email me directly and I will talk to you about it. No, this isn't a solicitation by the way, I will share my strategies for free, if you can do the same.

The Short Sale Tsunami.

If you have been waiting for the REO Tsunami since 2008 - 2009 but have been a little down that no "Tsunami" ever surfaced...well, you're not alone. In fact, many of us (Experienced REO Agents) would say it's not a Tsunami we are waiting for, it's the end of the REO Drought that we are hoping for.

Well, I wrote a blog yesterday about some chatter I have been hearing about banks wanting to create a preferred short sale agent list and don't exactly know how to go about it and this blog is a follow up to the one yesterday.

Banks and other default real estate portfolio holders are burdened with so much government regulation that they are almost completely abandoning REO. Now, I am not saying REO is dead, let's face it, it will always be with us but, it isn't going to look like anything any of us will be able to recognize in early 2013. This is because these banks are being told that if they don't "save" more homes or at least give the impression that they are truly trying to "save" more homes from foreclosure, they can expect more stress testing, more political demonization and possibly a closer look from the FDIC. Now, this may sound like something straight out of cold war Russia or Eastern Germany but, it's a fact and scary enough, it's backed up by law. Now, I won't go much into that at the moment because this blog isn't focused on that but, look it up yourself, study the Community Reinvestment Act and you will get the point.

What we end up with is a stressed, overwhelmed banking industry who is settling multi-million dollar lawsuits, from all over this country, trying to bow to political regulation (Note I didn't say government regulation) while trying to make a profit.

One of the biggest contributors to why REO has dried up is because of the moral hazard this country has been playing with since the housing bubble burst and that is, "how do we save people from foreclosure?" Yes, I called it as I see it and that is a moral hazard. The truth is, you can't "save" someone from foreclosure unless you plan on paying their mortgage for them. Otherwise, the mortgage holder is going to have to have an income, prioritize his debts and start paying them off. If he can't do that because of whatever reason......then foreclosure is the hard, stark reality.

Granted, in a normal market place, foreclosure would be fine, in fact, here in Tennessee, we have laws that specifically protect former owner occupant equity in foreclosure action however, we aren't in a "normal" market in the fact many of us are upside down and thus, no money to be had in foreclosure...only expenses. This is what brings banks to the bargaining table because now they are forced into loss mitigation regardless if they want to or not. Hence, short sales.

What many people just don't get is that a short sale is simply the most cost effective disposition of a non-performing asset in a negative equity market place. For this reason,  and others previously discussed banks are holding back REO.

Now I have painted the picture, you should understand that the REO drought is from...

1. Political Pressure

2. Government Regulation

3. High Unemployment

4. High Cost of Foreclosure

5. Negative Equity Marketplace

6. Loss Mitigation Strategies Implemented by Banks (keeping people in their homes even though they haven't made a payment in 12+ months or better yet, putting them on temporary loan modifications that are supposed to be only 3 months but end up being 24+ months or better yet, holding onto vacant abandoned properties and not proceeding to foreclosure.)

So, what is the solution, how do we get banks and agents together to dispose of these homes? Well, it seems no one really knows...

 (Refer to my earlier blog: http://reopro.ning.com/profiles/blogs/the-liability-of-a-preferred-short-sale-agent?commentId=2122473%3AComment%3A252605&xg_source=msg_com_blogpost)

Now, I do have a suggestion and that is because it's working for me here in my service area.

I work very closely with local non-profit housing crisis centers who sole responsibility is to "save" people's homes. These non-profits are contacted daily by ready, willing and able defaulted owner occupants who need help. These non-profits do all they can to help but, about 73-76% of the time, the people they work with either default off their programs or just can't qualify for help due to lack of income and as such, are sent to me for short sale.

Granted, my cooperating non-profits can't come out and just say, we recommend Jesse but, they do give the struggling homeowner about 3 preferred Realtors and on that sheet of paper, we provide our service areas and then the homeowner gives us a call accordingly. After that, it's on us to make the best impression and win the listing.

From that point, we work very closely with the housing counselor over at the non-profit because most of the time, they have collected all the necessary paperwork I need for the short sale and in fact, have already contacted the bank telling them that the homeowner will be short selling. This way, the bank is informed, knows exactly what is going on, expect to hear from me and by the time I call, it's all good.

Using a non-profit is a great way to reduce agent liability, manage risk, educate the defaulted homeowner and keep in the good graces of the bank. Yes, we have some unique challenges in the area of risk and liability in our cooperation but, nothing we were able to conquer or reduce by disclosing in writing and getting all appropriate signatures.

None the less, this industry does have very specific needs and I truly feel that some companies out there who specialize in default customer contact (if you don't understand what I am hinting at, let me know, I will be more clear in a reply) will likely lead the way but, even these procedures can be umbrellaed under a legitimate non-profit.

All in all, my point is, I really think we are going to start seeing the development of non-profits to truly reach out and initiate short sales. This will be a strange but, positive movement for our industry and I think it will really have a great impact on homeowners. Now, I know some of you are already doing this in your local areas and are seeing a lot of success. In fact, some of you have even created very robust networks of professionals, much like I have done here locally so, when this industry shifts, we are ready. For those of you who didn't see this coming or even now, can't imagine this every happening....I challenge you to keep a very open mind because, it's a great business plan, with or without bank participation, you still end up making really good money, helping out your community and offering a free market solution to a crisis that already has too much government / political regulation.

The Liability of a Preferred Short Sale Agent.

I had a conversation with a friend and colleague today that I want to share with you. As always, all of my conversations are confidential so, the names and vital details will be changed in order to protect the identity of everyone involved....except myself, of course.

So, she calls me up to tell me that she has been speaking with executives from the top banks, GSE's and largest default real estate portfolios holders in the country and as a result of those conversations, she had some questions for me. Flattered of course, I obliged and let her know I would answer any questions she had to the best of my knowledge and experience.

She starts by telling me what she was doing and why she was talking with these executives and as I am following along, I begin to understand why she is calling and realize, flattery is far from her mind and she needs real answers. She begins telling me that out of these conversations she was having, she has gotten the impression that many banks, GSE's and holders of default real estate portfolios are not only have trepidations about developing a "preferred short sale agent" list, much like how they have a "preferred or REO agent" list....they have outright hostility to the idea.

In order to further my understanding and get a better sense of the fear they have, I asked some probing questions and fortunately, I got some good answers...of which, I want to share with you. In no specific order, here is what I go....

Question 1: Why wouldn't the bank want a preferred short sale agent they can recommend to their default occupants / homeowners?

Answer 1: Liability.....too much liability.

Well, as you can imagine this answer wasn't good enough for me so, I had to break it down a little. Now, our conversation was nearly 2 hours long and I didn't record it so, I am going to summarize here for you.

The banks issues of liability revolves around some key problems that they can't seem to correct, fix or better yet, feel that they want to even be involved in fixing, those are...

1. Lack of Quality Agent Training:

From what I took away, I was impressed that many banks (let's use the word "bank" to refer to all of them....banks, GSE's and Default Real estate Holders, alike) know our industry has developed good education however, they have a few problems and they are...

                A. OUTDATED: Current education always seems to be outdated or not updated timely enough to positively impact the quality of the actual work completed by the agents.

                B. NO RETENTION: Even though the education may be good on paper, the retention of the agent is poor and by the time they need to use what they learned...they lost it.

                C. NO QUALITY ASSURANCE: You may have an agent who took the course, passed the exam but, has such poor operating processes and procedures that they fail to implement the best practices they were taught.

2. Severe Inexperience:

Now, for many of us who do short sales regularly, this was a bit of a surprise but, after I really thought about I came to accept that sure, a lot of agents out there just don't know how to do a short sale. What got me thinking was how this breaks down from a banks point of view.

                A. INCREASED PROCESSINGTIME: Due to lack of experience errors like, documents that aren't fully executed or not doing a preliminary title report, it ends up creating increased processing times, waiting for corrections.

                B. UNECESSARY ESCALATIONS: Because the agent hasn't completed enough short sales, they haven't worked through the common practices, procedures and processes of the bank or the short sale in general and end up getting frustrated and escalating which creates a back log for the bank.

                C. LACK OF PROMPT AND OR ACCURATE COMMUNICATION: Agents who don't understand the jargon or worse, set unrealistic expectations due to simply not communicating or not knowing how to effectively communicate cause delays and end up resulting in lost deals.

3. Fraud - Nepotism:

Sometimes it's not what you know or how well you work but, who you know and what they can do for you. Sad but, its true and yes, the banks see this as a problem they want to conquer however, not as easy as you may think.

                A. SAME DAY / SHORT SALE FLIPS: Regardless of how you come down on the same day short sale flip, the reality is the bank know this is happening and consider this a fraudulent act. I am not going to get into the details just why this is fraud however, its a problem for the banks and they are afraid that having a preferred agent list, they may open themselves up to this happening more often.

                B. UNQUALIFIED AGENTS: Have you ever wondered how that agent got that REO when you now beyond a shadow of a doubt they never worked a REO in their life? Well, it's likely because they made a great connection through a friend or at a conference and BAM, fast tracked to becoming a REO agent. This wouldn't be allowed but, not exactly sure how to stop it or prevent it seems to be the issue.

4. Severe Incompetence:

You can be the most trained and you can even be experienced but, we have all met those agents who just simply don't get it, completely, utterly incompetent and we are left scratching our heads and asking ourselves, "Who did they pay off?"

                A. BEST INTERSEST OF THE CLIENT: The banks have found that many agents just don't know what is truly in the best interest of the client or better yet, they don't know the law requirement or risk management strategy that will protect their client from any future liability.

All in all, my conversation was a good one however, it seemed to me to be a little late because for those of us who have been doing short sales for at least 4-5 years now, we have had these issues ourselves dealing with other Realtors or the banks themselves.

I don't really know what has spurred the action by many of these banks to finally look a little closer however, I am all for it. The reality is, this business is all about change and the moment you can't or don't change, you die. Truth is, I thrive in the changing environment because I have built my business around conservative fundamentals that have kept me nimble and flexible while others have retired early or simply gone bankrupt. Granted, I do believe competition is good and in a free market necessary but, I also believe a free market competitive environment gets rid of the wasteful, lazy, and propels the hungry and innovative to the top.....so, let's bring it.

Not sure what the result of my conversation will be but, I have a feeling you may end up seeing a survey from me shortly and if that is the case...please respond, let's us know your thoughts because, we may be able to effect some change.

Call Carl SanFilippo (888) 445-8880 for a FREE AND CONFIDENTIAL phone consultation.

Short Sale Versus Foreclosure – which should I do?

Getting fired from your job usually means the power source of income is cut off, and being of the first things to get sidelined when this occurs are mortgage payments. Paying for a house to live in might come off to be a little costly especially if you can just opt to rent an apartment. While it is easier to just walk away from your monthly mortgage payments and let the bank take your home, you might want to consider the route of a short sale. So, what is the dissimilarity in the advantages of a short sale VS a foreclosure?

Benefits of a Short-sale – doing something about it

A short sale home specialist describes a short-sale as the lesser of the two evils. If you are concerned on how to Short Sale a home, then the first thing you need to be informed of is that it enables you tons of options that foreclosure doesn’t provide you, such as

• Leave when you want to leave – opting a short sale grants you the ability to stay in your home longer, as the bank will give you notice when the short sale deal is approved for close. A short sale waiting period can go on for up to 2 to 3 months.

• A clean slate –generally while your personal credit and bank records are your own responsibility, a short sale does not impact your credit in the same way as a foreclosure. That means you can do a lot of things that you wouldn’t have the ability to do if you had a foreclosure showing up on your credit. Not only mentioning a clean slate, but on top of this and upon a successful completion of your short sale you may qualify for the HAFA Program. A program that could offer up to $ 3,000.00 CASH BACK towards your relocation! A borrower can be worthy of purchasing a property in only two years after a foreclosure.

• Control over the price – in opposition to foreclosures, short-sales give you the ability to control the price of the sale due to the fact that you still altogether own your home as the bank has not seized ownership of it yet. Granted, short-sale prices are still a lot lower at market value than the property value, but you’d much rather be selling at a loss than letting the bank do all the selling for you. Even though the bank must have the final say so in a short sale offer, prices generally are higher than foreclosed homes. This will do your neighbors a favor by helping to preserve community property values.

Benefits of a Foreclosure – the art of walking away

Foreclosure is the easy way out. Basically, foreclosure is simply turning your back on your property until the bank decides to foreclose on it. This is a little known fact, but foreclosure potentially could be the worst thing that you can do. Contemplate it – after the bank forces you to turn over your property, they get to clean it up, put it on sale for a reduced price and whoever gets the property will either: (a) renovate it and try to sell it at a very high premium; (b) sell it as being and the seller can still get a respectable profit out of it or; (c) whomever gets the property can just live in it, still getting the better end of the deal because of the bargain price that he or she bought it for.

Foreclosed properties can sell pretty rapidly as compared to a short sale. While this sounds pretty good on paper, remember that it is the bank that already owns the foreclosed property, they are the ones who profit the most from a fast transaction, so please, take this time to read further into abstaining or preventing foreclosure.

Also, while it may seem really easy to just walk away from your property and let the bank acquire it, you may want to acknowledge the following consequences:

• Waiting period before you can buy – records of foreclosure can affect even the period when you can purchase your next home. Generally speaking, banks select more responsible and trustworthy people without any sort of negative records to approve a home loan application. The current waiting timeframe for anybody to be granted by a bank or an institution to mortgage a home again is 5 years most likely. In addition, do you think a bank will let you purchase a home if records show that you already failed in maintaining a previous mortgage?

• A foreclosure record can leave a lasting impression – records of a previously foreclosed property may appear on your personal credit for up to 7 years. That is a lot of time to consider especially if you want to apply for something that is bank or credit related in the upcoming seven years. While most people will believe that they wouldn’t mind this kind of record because they are not planning on doing anything bank related, consider this: any type of foreclosed property records can severely affect your job applications. Why? Some employers look at your credit background to see if you are responsible in your credit, and a foreclosure blemish may cause them to conclude that you are delinquent if you have a foreclosure on your record.

• It shows up on your credit records – managing your credit rating and record should by far be more critical than anything else you should contemplate before taking the easy way out. It is noted that your credit rating can plunge as low as 160 to 105 points depending on the manner of foreclosure or on your credit history. This is especially important to consider if you have an active business or you are looking into bank loans for business or other concerns. A foreclosure can at times be read as a severe negligence on the part of the person. It is important to note that banks do not consider any type of personal issues that is on your plate during the time of foreclosure: it’s either your payments are made on time or they are not.

• It affects your loan applications – similar to most of the reasons above: why would you think any bank will give you a loan if your records reveal that you had trouble paying for one before? Even if the intention might be very different from that of a home purchase, like a school loan, car loan or business loan, it is still the same thing.

• You get evicted immediately – unlike if you put your home up for a short sale; eviction usually is very quick if your property is being foreclosed on. Generally, a notice period of 30 days is given to the person with a foreclosed property, but any other extensions might not be considered by the lending institution, person with a foreclosed property, but any other extensions might not be considered by the lending institution.

So, which is the better option? A short sale or a foreclosure?

Deciding a short sale over foreclosure may be the best option by far. The mere fact that you have control over the price and the time when you can sell your home is a better alternative than being forced to hand over your house and being ordered to leave the premises as soon as possible.

While it is ultimately up to the person to choose either a short sale or a foreclosure, what is substantial is that options are weighed first and think of how it may affect your ability to buy a home in the future and affect your credit rating. Researching is a job well done. Now, your next step is to contact one of our highly trained Short Sale Specialists, so they can get your short sale on started and successfully completed!

Carl SanFilippo

Nj Short Sale Agent

www.njshortsalesspecialist.com

In Los Altos Hills from Jan 1, 2012 until June 30, 2012 there were:

1 closed short sales

0 closed bank owned homes

Total sales during this time period were 45

Total % Short Sales: 2.2%

Total % REO Sales: 0%

Total Percentage  Los Altos Hills Distressed Properties: 2.2%

The low number of distressed property sales in Los Altos Hills is consistant with the other high prices neighborhoods in Silicon Valley. These areas are showing strong sales, good appreciation, and plenty of buyers with enough cash and income to purchase. Compared to the same time period in 2011 there were 2 closed short sales and 5 foreclosures with 52 sales for a total of 13.5% sales being distressed. 2012 is definatley different.

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

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

DRE  01191194

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

3 closed short sales

4 closed bank owned homes

Total sales during this time period were 51

Total % Short Sales: 5.8%

Total % REO Sales: 7.8%

Total Percentage  Woodside Distressed Properties: 13.6%

These numbers do not tell the whole story. 3 of the 4 foreslosures and 2 of the 3 short sales were in the Skyline area which is always a harder sell than closer to town, so given that information again, there are almost no distressed property sales in Woodside. There are currently 47 active listings in Woodside, about the same number as in Palo Alto, but without the incredible competition for homes like in the Palo Alto market. Maybe it is worth giving Woodside a look if you are having trouble finding what you want in Palo Alto.

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

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

DRE  01191194

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

0 closed short sales

1 closed bank owned homes

Total sales during this time period were 32

Total % Short Sales: 0%

Total % REO Sales: 3.2%

Total Percentage  Portola Valley Distressed Properties: 3.2%

Obviously Portola Valley is not a hotbed of distressed property activity. The one foreclosure was on a small house on Aliso in Ladera which sold for $1,075,000, a great price for that neighborhood. It is however a fabulous place to look for a home if you want a large lot, an incredible community feel, and plenty of local services as well as recreational activities.

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

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

DRE  01191194

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Short Sales and Trust and Probate Sales

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

1 closed short sales

3 closed bank owned homes

Total sales during this time period were 284

Total % Short Sales: .3%

Total % REO Sales: .9%

Total Percentage  Palo Alto Distressed Properties: 1.2%

1.2% of all Palo Alto sales being distressed properties is not enough to even comment on. The price of homes have in Palo Alto is now up to pre 2008 prices in the $2,500,000 price range and the homes over $2,500,000 usually do not have loans that are a very high percentage of their value so anyone who is having financial problems can generally sell and be made whole. So if you are looking for a bargain, look outside of Palo Alto.

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

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

DRE  01191194

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Short Sales and Trust and Probate Sales

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

97 closed short sales

47 closed bank owned homes

Total sales during this time period were 491

Total % Short Sales: 19.8%

Total % REO Sales: 9.6%

Total Percentage  Santa Clara Distressed Properties: 29.4%

29.4% of all Santa Clara sales being distressed is enough to have an 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, most homes will not sell for much less than fair market value. There are twice as many short sales as foreclosures in this time period which is what we are seeing in many other cities. 

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

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

DRE  01191194

Call Carl SanFiliipo toll FREE (888) 445-8880 for a FREE phone consultation!!!

New Jersey has been facing one of the most challenging economies in its history. The housing market has been decreasing at such a rapid pace that one out of three homeowners owe more on their mortgage then their home is worth. Some parts of the country one out of every five homeowners are behind on their mortgage payments. You might be in a similar position that you need to sell but owe more on your home then its worth. You might have a ARM mortgage which is due to change and change your payment making it unaffordable. You do have options to avoid foreclosure in New Jersey.

I have been in real estate with Century21 Worden and Green since 2006. As i came into the business the market started to change. Home values started to decrease slowly while by 2008 prices began rapidly dropping. I have been dealing with foreclosure homes since 2006 and have closed hundreds of foreclosure properties and have educated homeowners regarding their options. As a New Jersey Short Sale Specialist I strive to help as many homeowners who need my service as possible.

Why Should I Short Sale My Home in New Jersey?

Doing a short sale in New Jersey could save your credit long term. A short sale is better for your credit then a foreclosure and has numerous other benefits. See the comparison of a SHORT SALE VS FORECLOSURE. and check out the Wall Street Journalarticle explaining why a short sale in New Jersey can be the right answer for you.

Why do I need a New Jersey Realtor to Short Sale My Home?

Most lenders will not consider a short sale in New Jersey unless your home has been on the MLS and is being marketed through a Realtor. A New Jersey short sale specialist can also help navigate the short sale process, letting you know what forms the lender will require for the sale. If you are eligible for the HAFA program in New Jersey, CLICK HEREto see if you might be eligible, you will be required to work with a Realtor.

How much does it cost to Short Sale my Home in New Jersey?

Absolutely NOTHING! My services are 100% completely FREE!!! I can refer you attorneys who will also provide service to you for FREE!!! Sound to good to be true? The lender will pay all commissions as well as legal fee. Contact mefor more details and for a FREE phone consultation.

The New Jersey Short Sale Process!

Step 1: Call me toll free (888) 445-8880 we will discuss your current situation and all your options. If it appears you have all the qualifications needed for a short sale in New Jersey there will be forms you need to fill out and documents you must provide before we begin marketing your home.

Step 2: Marketing, I will come to your home take pictures and begin aggressively marketing your home in order to get offers.

Step 3: Get an offer to be submitted to the lender. This part can be the most lengthy part of the transactionwaiting for an answer from the lender. However, recently this process has sped up.

Step 4: Approval and closing! We obtain approval from the lender and have all the legal fees and commissions paid by the lender. We also fight hard with the lender to to ensure you are forgiven of all past debt, and you have avoided foreclosure in NJ and can move on with the rest of your life.

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

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

46 closed short sales

22 closed bank owned homes

Total sales during this time period were 363

Total % Short Sales: 12.6%

Total % REO Sales: 6%

Total Percentage  Redwood City Distressed Properties: 18.6%

18.6% of all Redwood City sales being distressed is enough to still haves 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 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

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

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

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

Buyer and seller said no. Buyer walked.

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

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

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

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

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

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

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

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

Anyone with experience in short sales and REO's know the bank requires proof in writing that the buyer has the necessary funds for the purchase of the property. If the buyer is paying cash I have always advised them to obtain a letter from their bank stating they have the necessary funds for the transaction.

In a recent short sale where I had the listing, the buyer submitted a letter from his bank signed by the Vice President of Banking which included his contact number and email.

The negotiator with the bank would not accept the letter as proof of funds and asked for a copy of the buyer's account statment. His reason was the wording "access to cash currently on deposit". He said the buyer could move these funds from this account into another account at any time. I responded by saying the buyer could still move funds from an account after he gets a copy of the bank statement. He simply said "A bank statement would be different".

I understand an actual copy of the bank statement is a harder proof of funds, but if there is any issue, the negotiator could call the Vice President and get clarification. If the letter was truly a fraud then what would be the end game? Not closing? I don't understand why banks are making the process more difficult than it has to be. In this case, it ended up being an acceptable offer and went to closing.

Rock Realty Client Testimonials

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

Katy K.(Janesville, WI)
Rock Realty Client