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When making an offer on a San Jose Short Sale it is common for the buyer's agent to ask the listing agent about his or her experience with short sales. They want to know if the seller's agent knows what he or she is doing because that is essential for a successful short sale completion. So when I am asked those questions I can honestly say that I am certified (CDPE), experienced, and successful.

But enough about me, what about you buyer's agent.  How many buyers have you ushered through the sometimes long and tedious process of a short sale? How many of your buyers have dropped out because they got tired of waiting or found something better? How many of your buyers really understand what "As-Is" means? How much do you understand about the process.

When I represent the buyer on a short sale I make sure they understand what is going to happen, how long it could take, and what will be expected of them.  I also make sure the buyer really wants that particular house, and is not just making lots of offers and willing to take the first one that gets approved.  

So if you are selling a San Jose Short Sale, ask your agent to talk to the buyer about their short sale experience and expectations before you sign that offer.

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

Marcy Moyer CDPE

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

The Five Star REO Expo was a huge success for everyone!  Thank you all who attended. 

Our next event will be September 17-22 at the NAHREP National Conference in Los Angeles, CA.  NAWRB will be holding a Power Breakfast.  Stay tuned for more info.

Just an FYI.

The site PropertyTransactor.com has been updated to allow vendors and field reps to list their companies as available resources for REO Property Preservation.  The site also allows new agents and brokers to submit maintenance requests free for a year.  As an added value, vendors who register with PropertyTransactor.com will receive a listing in the Vendor List that is search engine friendly!

This is a new and emerging site, so its growth will be measured by the prefessionals who join the network as new members sign on.  I believe this will be a great resource for Real Estate Agents, Real Estate Brokers, Contractors, Sub-Contractors, Service Providers, Sourcers, Field Service Agents/Reps, Field Service Companies, Foreclosure Cleanup Companies and Real Estate Vendors.

I would love to know how this resource can work for you!

Today in the Mercury News there was a story about how first time home buyers who need to purchase with loans are getting beaten out by investor cash buyers who often offer less than traditional buyers for foreclosures. www.mercurynews.com-www.mercurynews.com">http://www.mercurynews.com/business/ci_18853804?IADID=Search-www.mercurynews.com-www.mercurynews.com

Has this happened to you? If so, I may have the answer, buy a short sale!

In a short sale the seller owes more than the property is worth and has to have the bank forgive the difference between what is owed and what the house is worth.  The seller decides who has given the best offer, signs it, and sends it to the bank for approval.  THE BANK DOES NOT DECIDE WHICH OF SEVERAL OFFERS IS THE ONE THEY WANT, JUST WHETHER OR NOT THEY WILL ACCEPT THE OFFER THAT IS PRESENTED TO THEM.

Most banks have said very specifically they want the highest offer, and do not think cash offers are more attractive than ones with loans. This is in direct conflict with what they seem to prefer on foreclosures.

Since most investors try to pay significantly below market value if you make a higher offer, which is closer to market value then your offer will have a much better chance of being accepted, especially if there are not issues which would make the house unlendable.

Sure you have to wait longer for an answer from the bank, and some will not close, but lenders re speeding up the process and you can be happily ensconced in your home usually in 2-6 months instead of still looking 18 months and 15 offers later.

So if you are looking for good deal (though probably not a steal) on a home and are tires of losing to all cash offers find a short sale and enjoy home ownership.

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

Marcy Moyer CDPE

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

Doing another SS this time through Litton. I am fat dumb and happy until close day.

We received approval/release from Litton for close anytime up to 10-13-2011. Had it schelduled for sept 2. On sept 1 Litton who had been purchased by Ocwen transfered all or most servicing rights to Ocwen. So not big deal right we have a signed approval and release and a letter sent to my client saying Ocwen will honor any "Litton" short sale approvals.

Well sort of anyway. Try to close as funding instructions are for Litton Loans who will tell you they no longer have the rights and cannot take the Buyers money. Instead fax you approval letter to Ocwen and wait. As  I write the its 09-10-2011 and not a word. Did have one guy from Ocwen call and I gave him everything about the file except I did not have my clients Social. Called back with social so far so good. Another guy looked to see if I, the guy whom they called, was authorized on the file. Nope he says so I can not tell you any information, but you guys called me I said?

Finally He said to fax a new authorization form with the Ocwen Loan number on it. What's the new number I asked? He says I can not tell you!!!!!! Later my client who has received a letter has the new number. The letter states Ocwen will honor the previous approval, that is if you can get to someone who can give you wiring instructions for Ocwen.

If I ever do get someone to give me a contact or wiring instructions I am afraid over time the buyer will get tired of waint and walk.

I can not help but wonder how many people will be affected by the poor handling of all this. Can anyone provide any feedback, contacts etc.

Thanks

Larry Hollingsworth

Realtor

Youtube can be one of the most powerful tools for both showing asset managers your marketing abilities and generating leads for yourself from around the world. With the correct use of Property Addresses through Google Maps your YouTube Channel can be a showplace for both you and your properties. Take a look at this example www.youtube.com/RealtorVincent

Call me if you want to learn more Dominic (EMS) 239-200-8141. 

If you are a RE/MAX Agent your in luck!!! Ask me why. . .

Leading Ladies A #WOMENBIZOWNERS Working Event.

Keep the Five Star kick-off going with an exclusive NAWRB #WomenBizOwners Working Event at the Hilton Anatole. NAWRB #WomenBizOwners and Women with Access will be sitting down for a working session on HUD contracting and offering an exclusive opportunity to contribute to NAWRB's response to the HUD/FHFA Request for Information (RFI) on how to reshape REO disposition. If you're interested in government contracts and looking for an opportunity to engage directly, join us on September 11 after the Five Star kick-off at the Hilton Anatole. To RSVP or get more details, please e-mail info@nawrb.com.

Obama's 9th Mandate, Directive, Initiative, i.e. suggestion to save the Real Estate Collapse

The Refinance Program

Didn't I blog about this one year ago?  Yes, check out my link:

http://www.trulia.com/blog/JanBaron/2010/08/fha_short_re-finance_program

I suppose being a realtor, I am bias to some extent but I believe the collaspe of this economy began with the collaspe of the real estate market.  So when I heard the president's speach and his only comment regarding the real estate market - making re-finances available at 4%, I thought "Here we go again."

Obama first presented this solution to the housing crisis during his campaign - Get your mortgage refinanced to 4% fixed.  Remember that?  I remember the outcry  "What about me?  I pay my mortgage, live within my means, and I'm going to be punished while those who over extend themselves with be rewarded?"

After six other housing proposals, the FHA Short Re-Fi was introduced with little fanfare.  With up-side down mortgages of 50%+ almost no one fit into the restricted guidelines.  With only 15 re-finances completed in the entire country, the House Financial Service Committee voted to kill it in March. 

This latest re-fi proposal too will fail.  Why?  It is unclear, for example, whether people who are delinquent on their mortgages would be eligible or whether lenders would administer it. Remember, the banks don't have to do anything they don't want to.  Investors in government backed mortgage bonds could oppose it along with Fannie and Freddie regulators.

To spur more refinancing, the government would have to  encourage Fannie and Freddie to lift restrictions. Encourage?  is that kind of like mandate, directive, initiative, or suggestion?

Then there is this problem, same problem,  does anyone in Washington ever get this?

Many homeowners have been unable to refinance their loans because they owe more than their houses are worth, they have no income, or their credit is tarnished. Why would the banks give these people more money?  They are not in the business of losing money.

 Ok, so here is the growing list of plans to save the housing collapse:

Forebearance Program

Home Affordable Mortgage Plan (HAMP)

Second Lien Modification Program  (2MP)

Home Affordable Modification Program (HAMP)

Principal Reduction Alternative (PRA)

Home Affordable Unemployment Program (HAUP)

FHA SHORT RE-FI

Extended Forebearance Plan

But wait!  There's more.  We are going to hear about a Rental Program that the Obama administration is seeking advice on from the private sector.  But that's another blog.

There is a new law that mandates Carbon Monoxide monitors be installed in all residential properties in California. Lenders are taking this seriously! I had a buyer purchasing ashort sale in Sunnyvale that was scheduled to close last Friday, after several extensions. (The first lender kept asking for closings that were not physically possible to adhere to due to a second loan.) We managed to get to loan docs being drawn within 3 weeks of the approval on the second, a miracle in itself. This was on Wed., 2 days before drop dead close date.  Loan docs were signed and sent by currier (for a cost of $180) back to the lender. Thurs morning, when they were supposed to fund, the lender said they wanted to see a picture of the required carbon monoxide detectors before they would fund. The picture was taken and sent back to the lender after a little hysteria on everyone's part and we closed on Fri.

Lesson learned. Plug in the little devise before the inspection before the appraisal, and save yourself a lot of last minute drama.

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

Marcy Moyer CDPE

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

Last week Jesse announced that www.bankownedhomelistings.com was number 8 on google. We can do better than that! If everyone clicks on +1 on the google home search I bet we can get to number one in a week or 2. Let's be the most popular kids in the internet lunch room.

I've done it. Anyone else willing?

Quick Summary

We have been and are currently experiencing flattening to downward pressure on inventory coupled with close to average sales activity. Positive appreciation experienced 2nd qtr over 1stthis year could very well be repeated if current trends continue and some or all of historic trends occur again (see first chart).

The disposition of current and future bank owned assets however, remain a mystery to most of us, creating a lot of uncertainty. Even so, a doubling of bank owned inventory today wouldn’t result in much of an inventory increase and would more than likely sell quickly as has been the case.

View charts at the bottom of the webpage in PDF format at:

http://www.centralorproperty.com/Central,ORTrends.html

First page

List to sold ratios for 2011 remain the lowest yet since beginning this project in 2007 with a typical August drop. If the typical downward trend experienced the past 3 years repeats, we will see a significant reduction in the average list to sold ratios from 2010 to 2011.

Second page

The past 14 months list to sold ratios trend in Central Oregon held close to flat.

Third Page

The past 3 months show a steady, typical decline in list to sold ratios.

Fourth Page

• · New listings trends continue to move down.
• · Sold property trends are moving up which is typical. September is a strong sales month.
• · The Back on market property trend is down.
• · Pending property count trend rose very slightly.
• · Expired, terminated/withdrawn properties trended up slightly. While remaining the largest source of inventory reduction, the gap has narrowed significantly with sold properties. Most expirations occur at the end of the year, quarter and month, creating wide trend swings.

Fifth Page

Average sales per business day YTD is right at average since beginning this project in Jan of 2010.

View charts at the bottom of the webpage in PDF format at:

As a REO agent, we learn very quickly how important a good BPO is. Not only because we have to do them...along with MMR (Month Marketing Reports) but because our AMs rely on 3rd party BPOs to help them determine our list prices. Yes, you heard me correctly, I as the REO agent rarely get to list the property for the price I want. In fact, most to the time, I have to list the property at the 3rd party BPO price. So, I am trying to sell a property at a price I had no control over, my AM has no control over and yet we are held to that standard.

So, does this policy work......um, not really but sort of kind of. Figure that one out?

I understand that the 3rd party BPO prevents the AM and Realtor from fire selling the property but, guess what it also does, it prevents properties from selling. What....did I say that? Yes....oh hell yes I did. You see, some of these people doing these BPOs are working under the misconception that they have a chance to get the REO, if the price the property high. They think a high BPO suggested list price means the am looking at the BPO is going to give them a call and that AM is going to say....those two magic words, "You're hired!"

In reality, it sticks me with a list price, 10-50% above FMV because it's the AMPs policy to take the 3rd party BPO, add that to my BPO, average the two and add 5%...whiz, boom, bang, you got you a list price good buddy. SERIOUSLY!?!?!?

In fact, without naming names, without disclosing the address, I got a listing right now, it's 100% overpriced. Now, I am not saying that as a figure of speech or as an exaggeration to make a point, I literally do mean it's 100% over FMV (Fair Market Value). Now, here is the sad part...I know it's 100% over priced, my AM knows it's 100% over priced yet, neither one of us can do a damn thing about but ask for price reductions every 30 days while we both kill our stats.

So, here we are, 202 days later, it's now listed at $44,900.00 and yes, in 2 days I had 5 offers. MOF (Multiple Offer Forms) have been sent out and yes, it looks like we are going to have a deal.

Now, just a thought....but, it's a good thought, I promise. Why punish me and my AM? Why not ask yourself, "why didn't this property sell when it was listed at 95,000? We marketed this property no different than the others, in fact, we did much more.....multiple open houses, broker tours, neighborhood farm post card, email blast...etc, yet...not a single offer till we got down to $44,900.00.....maybe that's because the FMV is $44,900? Which is actually amazing considering my BPO...202 days ago suggested a list price of 49,900.

I am truly sorry to say but, I strongly feel the BPO and Appraisal industries are sham...truly a sham. Especially BPOs. Let's be clear, I understand why they are used, I understand what makes them important but, I don't believe it's any different than going down to my friend local psychic Esmeralda and asking her, how much should my house sale for.

Better yet, why don't we let AMs and Realtors determine value? I know, it's a novel idea..truly it is but, why the hell not try it, it might just work.

Here lately, I have noticed a lot of AMP binding the hands of their AM's with policies that come down from upon high. One policy in particular just absolutely amazes me and that is, always counter first with the list price.

Believe it or not, I have been told, witnessed and experienced some AMPs that are telling their AM that their first counter must be at list price. I know....you are taken back because, as experienced agents, we know that this policy is in many instances an immediate reject by the buyer. There in is the problem.

You see, I have had several AMs tell me, we can and will negotiate but, we can't do that till we have satisfied the policy that we must first counter with list price. Ok...so, does that mean I can tell the buyer's agent to ignore the first counter?

People expect to haggle and when you counter at list....on the first counter....or any counter for that matter, it appears you aren't going to haggle so, instead of staying in the fight, the buyer walks. The reality is, competition for homes isn't happening and if it is, the property is well priced or highly desirable and with as much inventory on the market...I would say it's likely well priced. None the less, the days of a seller playing hard ball for the sake of playing are over.

For the AMP policy makers, let me give you some good advice..........STOP RESTRICTING YOUR AMs. If your AM team isn't good enough to haggle on their own without you making some silly policy, then fire them and get you some new ones.

Yeah...yeah, I am sure the hate mail is going to flow on this post but, the reality is, between the experienced Realtor and the experienced AM, you should be able to get FMV (FAIR MARKET VALUE) and if you are not.....stop and ask yourself why. If you think the answer is that you need to add policies to tell direct your AMs reaction or to show them how they should be doing their job, then I have to ask....are you sure you got the right AM? Are you sure you got the right Realtor? Better yet, are you sure you got the right BPO / Appraisal?

Let's start having an honest discussion on why you can't get an offer at your list price before you start thinking you need to tie the hands of your liquidation team.

Just a thought.

So you have to sell. Here is what you should do.

FIND A REALTOR

1.  You can not do this on your own. The banks will want the home to be extensively marketed and you can not do that as a FSBO. Since the lender will pay the real estate commissions that should not be a concern.

2.  Gather your financial information. You will need 2 years tax returns, 2 months bank statements form all accounts, 2 months statements from all investment accounts, profit and loss for 2 years from any self employment.

3. Fill out a financial statement which shows all your income and expenses

4. Write a hardship letter which explains why you need to do a short sale

5. Make your home available for showings and open houses

6. Keep your financials updated every month and give the bank everything they ask for

7. Accept the best offer you can get on the property

8. Be PATIENT

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

Just took a listing from a client who purchased a property from me back at the height of the market in late 2005. Needless to say, they are at 35% VTL (Value to loan!) and have finally grown tired of making $2400 payments on a home now worth $125000 in a neighborhood where their neighbors are making $1000 payments.

The lender is OCWEN and until now, I've not had the pleasure of working with them on anything but REO listings.

If anyone on REOPRO has some guidelines, website links and insight to their shortsale process, the information would be most welcomed.

The sellers are a young married couple and I kinda feel obligated to provide the best possible service to them since they trusted me enough to help them buy a home and now when they are struggling to stay afloat, they asked for my assistance in listing their home as a shortsale.

Oh yes, one more thing; Since meeting with them and taking the listing, they have provided THREE referrals, all of which listed their shortsales with me.

So you can see why I want to do a good job.

Looking forward to hearing from those in REOPRO.

So I happened to be visiting a friend's real estate brokerage a few months back  and was absolutely amazed at how quiet, dead, and BORING this place was.   This office had a HUGE bullpin with over a hundred cubicles, at least 50 people working, and I swear you really could have heard a pin drop.  I started to tell my buddy a funny story about a recent client and 15 seconds into story the unthinkable happened!!! SSSHHUUUUSH!!

WTF??My voice wasn't loud or overly animated, in fact I'd been keeping it down since this brokerage felt more like a church  or library than a real estate office, but sure enough I got shushed.  After we left, this got me to thinking is this office just boring as hell, or is my office just the anomaly?? In my office it's the norm to hear people yelling back and forth down the hallway, music on, people laughing, an occasional curse word or two, chair races, loud phone calls going on, and tons of deals being done.

For me the more casual environment makes work interesting and fun to come into.  Not sure why "Professional" is often defined as suits, stuffy, quiet,....and boring.  If that definition is true....I'll be the first to admit, our office is NOT professional.

How is your brokerage? Loud and bustling ...or quiet? Is your office's idea of getting crazy having a potluck on Wednesday instead of Friday? What environment do you thrive in?

I just received a phone call from this company wanting to get money from me.

Promising some future listings in my neighborhood.  As I was talking to this person

I can feel that this company may only be after my money.  I asked him so many questions

regarding his company and how many banks they work with and etc.  He could not give me

a straight answer and just hang up on my face.  So, BE AWARE OF THIS COMPANY!!!

IF BANKERREO.COM calls you don't just give him your credit card for $349.00/yr.  They

more likely the same company as Absolute REO.  Take your money and never give you any

assets.

Before you submit a reo reimbursement to the reo bank or asset management company, there are five items you need to double check.

1. Vendor Correct Contact Information. The vendor contact information must be correct at all times. Make sure you have accurate information such as the full and correct vendor name, complete address, phone number, and business license number.

2. W-9 Forms - A completed and accurate W-9 form is very important. It doesn't matter if you are paying the vendor or if the bank/asset management company is paying the vendor. Inaccurate social security numbers or tax ID will often delay and/or result in payment rejection in invalid 1099s at the end of the year.

3. Certificate of Insurance - All vendors that perform repairs, install gas, electric, HVAC, pool,  and plumbing systems should have a Certificate of Liability. These are high dollar items and if the work is not performed correctly; resulting in damage to the property, should be held accountable. Additionally, many of the asset management and reo banks are now requiring the certificate.

4. Certifications - When work is perform on wells, septic/sewer, hvac, foundation, roof, etc., the  vendor is required to provide certification showing that the work has been completed and is working. If the vendor is unable to provide a certification, the vendor is not qualified.

5. Completed Invoice - All invoices should be complete and itemized. If not monitored correctly, vendors and agents will submit incomplete invoices to the asset management company and reo bank.  All invoices must have the following items to justify payments and/or to help ensure reimbursements.

• Complete vendor contact information
• Full Property Address
• Invoice number for easy tracking
• Loan number or property ID listed on each page
• Service dates, from and to
• Itemized list of services provided with the price listed for each line item
• Before and After photos for ALL repairs

6. Invoice Submissions - All invoices should be submitted within 48 hours of work completion and must include the asset management company/reo bank required documentation and follow the correct process. 

Following the correct procedures ensures that you will get paid and get paid on time. Trying to alter the required process will make it harder for you to get reimbursed in a timely manner.