Archive for the 'Contracts & Negotiations' Category
Open House @ the Ocean in Solana Beach Saturday October 22nd 12:30 to 4p.m.
Posted by Nick Bednorz | Leave A Comment »
Located @ 707 Sierra Ave South in Solana Beach CA 92075 Offering Price $649,500Not a foreclosure or Short Sale.
Real Sellers. Real Motivated
Owners want out of Property Management
Extras and Upgrades Include:
- Travertine Floors throughout
- Stone Countertops in Kitchen & Baths
- Bathrooms have been Upgraded
- 2-master suites
- 2 1/2 bathrooms
- 1 bathroom in each bedroom plus 1/2 bath for guests
- vaulted ceilings
- southerly view from living room,kitchen & Dining Area
- pool
- gated beach access
- small intimate complex with only 30-units
- Short Walk to Del Mar Race Track and County Fairgrounds
- Near Cedros Design District, Restaurants and Entertainment:
- Brigantine restaurant
- Belly Up
- Fletcher Cove
- Schools
- View other homes @ www.nickbednorz.com
- open this link to view MLS sheet Residential Client Full (All Pages)
- Click this link for virtual Tour
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Looking for a way to distinguish your property from others on the market?
Posted by Chad Basinger | Leave A Comment »
Buyers, are you holding off on that next real estate move for fear of getting laid off? Sellers, are you not distinguishing your home from all your competitors? Read on for a program that could very well help buyers and sellers move forward towards reaching their goals.
With the ongoing uncertainty in the overall economy and continued difficulty in getting financing when it comes to buying a home, it is not entirely shocking that some buyers are still sitting on the sidelines. In particular, for someone who is concerned about a potential layoff in the near future, they may decide to hold off on that big purchase. Fortunately, the California Association of Realtors (C.A.R) has a program that pays a home buyer’s mortgage if he or she is laid off. This particular program is called the Home Payment Protection Program (HPPP),
The program covers both first-time and repeat buyers for 12 months from escrow closing and provides up to six mortgage payments up to $1,000 or $1,500, depending on the coverage level the seller chooses. A seller can choose to pay $200 for six mortgage payments up to $1,000 or $275 for six mortgage payments up to $1,500.
The Home Payment Protection Program is offered by REALTORS® to sellers at the time of listing as an added incentive to prospective buyers. The program is paid for by the seller and is completely optional.
While the thought of losing your job is not exactly a comforting thought, at least there are some programs in place to alleviate this concern as a buyer. For those sellers out there wishing to distinguish themselves from other sellers in the marketplace, this could very well be the one thing that makes the difference.
Chad Basinger, REALTOR®, CPA, CFP®
858-997-3704
chad@chadbasinger.com
Related Posts: Buyers, Contracts & Negotiations, Find A Home, Marketing, Motivational, Moving Tips & Advice, New Listings, San Diego
Beware of Forged Grant Deed Scam!
Posted by Karen May | Currently 3 Comments »
You never think a scam could ever happen to you. Well I thought the same thing , until last week! My husband and I have been investing in real estate for the last 3 years, and we purchased a property in Vista last month from another investor who had purchased it from the bank (no Realtors were involved). As a Realtor, I am very cautious and did my due diligence. I looked up tax records and previous MLS information about the property. I even had title run a search on ownership and they came back with a grant deed recorded 3 weeks prior transferring title from the bank to this investor. So we submitted an offer and opened escrow. As an entity purchasing the property, we had to supply title with all of our documentation showing ownership of our entity, just as the seller had to do as well, to verify the entities are not fake. Title verifies the documentation and that the entities are currently registered with the state. Only after that verification process, I was told, will title allow escrow to close. So both entities passed title inspection and we closed escrow.
In the meantime, we contacted the tenants who were still living in the property and they agreed to move out early, after they secured a new place to live. Two weeks later the tenants are served notice to vacate the house due to eviction by the bank, Wachovia. We immediately contacted the attorney who filed the eviction notice and explained we were the new owners. We sent them our recorded grant deed and the one showing Wachovia sold the property to our seller. Several days later we receive a call from the tenant that the sheriff is at their door trying to evict them. I immediately rush over there with all documentation in hand, and was confronted by a Wachovia representative that they still own the house and we have been “scammed”. The bank never sold the house and the grant deed that was recorded is a fake. They have been trying to find the criminals who created a fake grant deed and have documentation on 3 other homes they’ve also created fake deeds on, and involve 2 other banks as well. Needless to say I was speechless! What do you say when someone tells you you have just been scammed out of $250,000.
The one saving grace is that we had just opened escrow a few days prior on a second property in Vista with the same seller, since we thought we had such a great first transaction. We were scheduled to close this week. We contacted the Police Dept to file a report. They were able to use this opportunity of another escrow transaction to catch the criminals in the act of a second fraud while signing escrow documents on the second property. The seller and his two cohorts were immediately arrested! We are now working with police, title/escrow and Wachovia to sort out the details. On another happy note, thank goodness for title insurance! Without title insurance, we would owe $250,000 to the lender on a house we don’t own.
We have researched how this happened, what we could have done to prevent this, and have been told by numerous people that there was no way of our foreseeing this fraud. The criminals created a realistic looking grant deed, forged the bank officials signatures and the notary signature and seal, and it all looked real. They recorded it and when the title company researched the ownership, they found the recorded deed verifying the suspects owned the property. We’ve asked and been asked what could be done differently next time to catch this type of fraud and prevent it from happening again. No one can seem to answer that question for us. If you have any ideas, or information that could help, please post a response. We would love to hear from you.
2011 will still be a great year for us! This experience will only make us stronger and more cautious on whom we do business with in the future. I can definitely say that if this same scenario ever presents itself again on a purchase, I will be calling the bank next time to verify they truly did sell the property. What’s that saying…….. “fool me once, shame on you, fool me twice, shame on me.”
Our only words of advice - know who you’re doing business with and purchase title insurance!
Karen May karen@karenmay.com
Related Posts: Agent Services, Contracts & Negotiations, Escrow, Exclusive Properties Agents, Industry Updates, Insurance Services, Real Estate News, San Diego
6 Tips For Buyers of Short Sales
Posted by Jennifer Burroughs | Leave A Comment »
What it means to be the buyer of a short sale
As we have said many times before, Short Sales are not fun and they are not easy, but they are the new reality! They can not and should not be avoided, but as a buyer you need to understand what you should expect and what the benefit to you will be. Following are a few things to consider.
1. The closing date is NOT set in stone ~ We have even heard of them as being referred to as a “fantasy”, we prefer to refer to them as “fluid” – This means that you should not get tied into the closing date. You have to know that the closing date is a real date that all parties are working towards. Remember, there are a lot of parties involved in making these transactions come together. If one party misses a deadline, it effects everyone. Do Not hire movers and settle in on a date until you are very close to the date. Your Realtor should be able to help guide to a more realistic date as you approach the closing.
2. The average time to obtain lender approval is 60-120 days and can even be longer. Some lenders have been able to streamline this process but not all have.
3. It is true that the condition of a short sale property typically is better than a foreclosed home. You must keep in mind that there will be deferred maintenance and some important repairs that will need to be made. Make sure you have some money set aside to address some of the more serious issues. Keep in mind, these are not “new” homes, they have been lived in and will require some repairs.
4. Closing Costs and Past HOA Dues ~ Not all lenders are approving closing costs. Some will allow closing costs to be covered and others will not. Most lenders are not covering past HOA dues. It is imperative that your agent ask the listing agent if the seller is delinquent on their HOA dues and if so how delinquent are they. As a buyer it would be helpful if you were prepared to cover the late HOA dues, just in case the lender does not approve it.
5. Inspections ~ Most lenders are requesting that inspection periods be reduced from the typical 17 days, sometimes down to as little as 5 days. As a buyer, you need to be prepared to have your inspections done quickly.
6. Investors ~ Buyers of short sales are often competing with investors. It is not uncommon to find out that you are bidding against 2 or 3 other buyers and that they are investors, with cash to close the transaction. If this is the case, consult with your agent on how to make your offer more appealing to the lender.
Again, there is no “silver bullet” to successfully buying a short sale, but these tips will help to better prepare you for what to expect. In a short sale situation patience and flexibility are key! You are probably getting a fantastic deal on a home that in years past you could not have afforded, but you are going to have put some money in and understand that nothing about buying a short sale is “typical”.
If you are considering buying and you want more information on how to be a successful buyer in this market, contact Jennifer and Susi today. We will meet with you and give you a step by step plan on how to be a successful buyer!
Jennifer Teti-Burroughs Susi Vickery
858-229-2965 619-922-2801
JennBurroughs@gmail.com Susi@SusiVickery.com
WWW.REontheMove.com
Related Posts: Condos & Townhomes, Contracts & Negotiations, Education, Escrow, Homeowners Associations, Market Trends, San Diego, Short Sales
Thinking of Renting Your Place? Follow These Steps and Save Lots of Headaches!
Posted by Chad Basinger | Leave A Comment »
Perhaps you are a homeowner who is unsuccessfully trying to sell your home and have decided that renting it out may be the better (or only) option. Or, you may be one of the more fortunate homeowners’ out there who do not have to sell, but simply rents out your property as a source of additional income. I realize the past few years have been tough on homeowners, but I do know that any of my clients in my previous life as a financial planner who were really well off had accumulated their wealth through real estate. However, real estate as an investment is a whole other discussion that will be left for another article. The focus here is on the prudent steps to take if you are going to rent out your property.
If Richard Dawson (from the grave) were to survey 100 people the key to having a successful rental unit, unequivocally the top answer would be……..
1. Find a Quality Tenant/LesseeYes, it may seem obvious, but how many times has this come back to bite you? Naturally, you’d like to think that friends, relatives, coworkers, or other members of your network would be the best choice. However, we often have to expand our search to include people we don’t know through advertising in the paper or online through sites such as Craigslist. Whether it is someone you know or not, you still must do your due diligence.
Make sure any potential tenant fills out an application form that provides the following: name, employer, salary, previous landlords and references (don’t just make this a formality…actually contact the references!) You’ll also need their Social Security number and signed authorization to check credit reports and criminal history. If you hire an online agency to provide background checks, make sure it is accredited by the Better Business Bureau
You will want to conduct a thorough background check on the potential tenant by:
- Running credit reports. You can conduct your own research through the three big credit reporting agencies — Equifax, Experian or Transunion — as long as you follow the guidelines of the Fair Credit Reporting Act.
- Checking criminal history. Search state and local records online or find an agency.
- Checking references, contacting employers and talking to previous landlords. Don’t overlook this important step!
2. Protect Your Rights with a Lease You will want to have a written lease which clearly states each party’s rights and obligations. Given that laws vary among areas, you will want to make sure that your lease is applicable to where your property resides. It is strongly encouraged that you have a local lawyer draft and/or review your lease to help avoid legal problems down the road.
While the lease may be tailored to your situation, at a minimum it should include the following:
- Lease term: month to month if you want flexibility, annual for stability.
- Security deposit: one month minimum- also pet policies and related deposits
- Rental due date and late penalties
- Responsibility for repairs
- Routine upkeep, maintenance, and repair responsibilities-make it clear who is responsible
- Names of all tenants and any special rules related to behavior
- HOA matters: 1) dues-who is responsible 2) any special rules that must be followed
- Arrangements for showings, if you plan to put your home on the market while it’s being rented. This is where you will really want to have a tenant who is tidy!
- Eviction terms, such as not paying the rent or damaging the property
3. Determine How Much Rent to Charge Your place is only worth what a willing party will pay for it. Check local newspapers, online resources or neighborhood rental signs for value comparison. Be realistic about rent levels. The rent may be lower than your mortgage payment, but if you want to find a tenant, the rent must be comparable to what’s in the market. Every month you go without a tenant is cash flow lost.
4. Protect Your Property with Insurance For your primary residence, you have a homeowner’s policy, which covers the structure, damages and your belongings in the house. As a landlord, you’ll need rental home insurance, also known as fire insurance. This policy covers your home’s structure, legal costs, medical expenses and loss of rental income, if repairs are needed. Since you are not responsible for the tenant’s belongings, you should encourage tenants to buy renters insurance. Contact your insurer to let them know you will have a rental and to discuss the options which make sense for you.
5. Hire a Management Company Fees are charged primarily for two services: 1) finding a tenant: includes advertising and background checks and 2) managing the property. Monthly management includes collecting the rent, charging late fees, handling repairs, and dealing with early vacancies and evictions. The fee charged by the management company may be a percentage of rent or a flat rate.
As far as finding a property manager, you may ask friends or a real estate agent for recommendations. Either way, you may want to make sure they are part of the National Association of Residential Property Managers. Whomever you decide to go with, make sure you understand fully what services they will provide.
6. EvictionsHopefully, you have followed the above steps, but this may not be enough to preclude a possible eviction situation. You’ll need an attorney to evict a tenant. Provided the tenant does not move out willingly, you’ll have to go to court, and the sheriff needs to come out and physically removes the person.
Summary
I’m sure you have all heard of a horror story involving a tenant. In fact, I just played golf with a friend the other day and he had a lease agreement in which the tenant was to buy the property at the end of the lease. Lo and behold, the value of the property was not what it was once worth by the time the lease was up, so the tenant took his frustrations out on the property itself and basically destroyed it. Needless to say, a lawsuit has ensued. There is no surefire way to guarantee a smooth rental situation, but you can definitely stack the cards in your favor if you follow the steps outlined above. Do your due diligence up front to prevent headaches on the back end (speaking of back ends….I’ll end by saying to make sure to CYA…Cover Your A..!
Chad Basinger, REALTOR®, CPA, CFP®
858-997-3704
chad@chadbasinger.com
Related Posts: Contracts & Negotiations, Investment Properties, Moving Tips & Advice, Rentals
