SHORT SALES, FAIR OR FOWL?
Posted by Ellen Jaffe | Leave A Comment »
One fine San Diego Day, Chicken Little was strolling along enjoying the weather. The sky was a crisp, clear blue and the sun was a huge bright globe. He didn’t much care for rain, which was why he liked San Diego. He wasn’t into getting his feathers wet. So this was a perfect place for him.
Suddenly, a large shadow was over him and as he looked up, his chicken smile quickly faded. He ran for his life as he was almost hit by a falling Condo and then another and another and then some houses crashed to the ground. Now chicken Little really wasn’t chicken, but he thought, “what a way to start the day”. I’m going to call my Realtor, Ellen!
She told him that what he just experienced was a lot of Short Sales and REOs 
falling to the ground. He was told to continue looking up and he would see Bankers with their arms folded laughing and watching the crashing homes. Ellen said, “it’s really a wonder that I have any hair left at all; just a few little blond wisps”. Chicken Little said, “wow, I’m really glad I don’t own the coop. Rocky rooster is my landlord. He crows all day and all night. He hasn’t gotten the message. Let him deal with all of it.”
“In Oh Five, the coop went condo. We all got so eggcited, all we could do was cluck. Day and night, night and day, cluck, cluck, cluck. By Oh Six, some of us got chicken, but others decided to buy in. Boy did they lay an egg. There are feathers flying because they have to do a Short Sale. Now Ellen, they all want your help! ”
So Ellen plunged right in to see what she could do. After months of calling and submitting and faxing and begging and pleading she was now at square one. So much for progress. Chicken Little said, “Wow, you Realtors are really something. All the hens are saying we thought sitting on our eggs until they hatch was really difficult and time consuming, but the result was worth the effort.” Sometimes Short Sales don’t close, so the results may not be as positive. ” I give you an awful lot of credit, he said”.
As in the example of Michael Jordan (Chicken Little said he couldn’t reach those heights), propelled by extraordinary talent to the stratosphere of basketball achievement; persistence and perseverance will result in exceptional service and accomplishment.
……..More from inside the coop to come!!
Related Posts: Lifestyle, Market Trends, Poway, Rancho Bernardo, Rancho Santa Fe, Real Estate News, San Diego, Sellers, Short Sales, Summer, Tourism, Windermere, Windermere Agents, Windermere Offices, WindermereSanDiego.com, World News
The Benefits Of Knowing A Good REO Agent in San Diego County
Posted by Jeff Cole | Leave A Comment »
There is plenty of benefit in knowing a good REO agent when shopping for Bank-owned or foreclosed homes in San Diego County. Like many parts of the country, where investors are gathering to scoop up Bank owned and Foreclosed homes at below market pricing, California, and particularly in San Diego County are very competitive. The coastal homes below $1,000,000 and especially below $500,000 are less available than some think. With Banks reluctant to Foreclose and sales data improving in both average sales price and units sold, the competition for the relatively few bank owned homes on the market has heated up.
Knowing a good REO agent that has relationships with multiple banks and outsourcers is key. Without a strong agent on your side guiding you along the way, you can count on writing offer after offer and being constantly outbid, not responded to or on the other side of the coin, paying thousands too much.
When looking for a REO agent,
- Start with identifying an agent who represents more than one Bank or Outsourcer. Agents with multiple bank relationships usually carry larger Bank owned inventory and may have a property in pre listing status that they can guide you to ahead of the pack. They usually are in constant communication with asset managers and have multiple loan officers that frequent their office, which helps them, stay more up to date on current government programs, lending issues and interest rates.
- Second look for an agent that has multiple designations such as CRS, SRS, e-PRO etc. These agents tend to value continued education and pride themselves on staying ahead of the pack as well as being on top of the latest technologies and marketing strategies. I prefer agents that have established systems and team members that can support them in the tasks that are better delegated as to help them focus more on you and your needs. That is assuming they are not too big they pass you off to their team and never are available to you again.
Now is not the time to be working with an unseasoned agent or one working part time in the industry to help you find a home. Frankly, they just are not equipped to do the research and be on top of everything that you need of your agent in this market.
Timing is critical; this may be the best time in our lifetime to invest in real estate, even if the market continues to deteriorate. There is plenty of money to be made in a down market. There are more homes that cash flow in San Diego County than there has been in the twenty years I have been watching this market. There are also many homes right now that can be purchased and flipped for a healthy profit. That is why you need the right professional in your corner.
If you are an agent tired of getting your offers rejected or not responded to and want to save your reputation with your buyer or you are just a buyer looking to capitalize in this foreclosure cycle, now is the perfect time to establish a good REO agent relationship.
Jeff Cole CRS, SRS, e-PRO
Broker Associate, Premier Property Director
The Jeff Cole Group
Windermere Exclusive Properties
#1 Top agent in production
760-525-7787
jeff@JeffColeGroup.com
www.JeffColeGroup.com
Related Posts: San Diego
More Foreclosures Coming? How Long Do We Have to Wait?
Posted by Ashley Stuart Puetz | Leave A Comment »
Step back in time with us to the summer of 2008, where consumer confidence was shaky, but solid activity was still occurring in the market place. Short sales were increasing because of risky loans that were given to buyers who had low credit scores and no down payment, and foreclosures started to consume the market place. Foreclosures were overwhelming asset managers and banks were taking back homes in record numbers. We could see the writing on the wall, but we had no idea it would be this serious. In preparation for the tsunami of foreclosures that were sure to come, we joined a financial network that specializes in the REO (bank owned) system to gain as much knowledge as possible to assist our clients in navigating this segment of the market.
Since then, a bustling entry-level market has opened up for first time home buyers, who had been shut out of the market due to higher interest rates and unaffordable property values. In January of 2009, first-time home buyers began to see hope in homeownership. The $8,000 home buyer tax credit gave them a reason to jump off the fence. As more foreclosures and short sales hit the market and property values continued to fall with interest rates as low as 4.5%, first-time homebuyers had a new found confidence around February of 2009. We began working with FHA approved first-time homebuyers for the first time in years. Little did we know what the lending industry had in store in the months to come.
Since the government mandated moratorium on foreclosures was lifted, banks began taking back properties in record numbers. The inventory has been absorbed by cash investors and some lucky first-time home buyers, but many now are waiting for the next round of foreclosures. An asset manager at Fannie Mae said he now has 4 files on his desk, which is down from 285 files five months ago. Many of the banks are saying their inventory is down. So what’s next and how long do we have to wait? All we can say is, “if we had a crystal ball, we’d be millionaires by now!”
Below is an excerpt from a letter written by the director of training with Lionsgate Financial Network, of which we are members. We think this letter paints a clear picture of how the face of real estate has changed over the last year and what lies ahead.
“Dear Members-I have gotten quite a few questions lately concerning the fact that you are signing up, and not getting any response. This time, right now, reminds me of two distinct times in my career. I have been selling Real Estate since 1987, and every December I went to work everyday, and prepared myself for the spring. I worked getting my mailing lists together, and got my marketing pieces prepared, and got ready for the inevitable rush that came in the spring. My office was empty, I was almost always the only one working. Everyone else in my office took the entire month of December off.
The other time, was between August of 2007, and April of 2008. I went to work everyday, and spent all day signing up on registries, with VERY little results, no listings, and only a smattering of BPO’s. It was, to say the least, frustrating, but I knew that if I continued on, I would succeed. I have always believed, that if you have a course of action, and it’s the right course of action, that your best alternative if to put your head down, and continue.
That being said, we are in a season of almost NO activity in the REO world. I get 1/4, of the BPO’s I was getting 3 months ago, and in my MLS, REO listings are down 85%.
I talked to my asset manager, at Fannie Mae, and he said he has 4 files on his desk, down from 285, just 5 months ago. My asset managers, at Chase, IAS, Old Republic, all say the same thing…..they don’t have anything on their desks. Another good contact I have, David Parrish from Default School, told me last week, all his banks inventories, are way down as well.
The Obama administration has created artificial moratoriums, by their actions…The banks literally don’t know what to do with there current inventory.
Now where does that leave us?
In the perfect position, I believe…My asset manager at Fannie Mae, said this week, they are getting ready for the inevitable flood of REO’s that they will be receiving. David Parrish said that his banks, are gearing up for a rush between Oct and Jan. IAS (Integerated Asset Services) told me to “get ready”. Bank One, formerly Indy Mac, has begun to hire 4,000 NEW agents. Another company that I can’t mention yet, wants LionsGate to help with the disposition of 2,000 assets a month, starting in as soon as 90 days. Exciting things are about to happen to those that prepare.”
-Larry McKenzie, Director of training, LionsGate Financial
It remains to be seen how long we will have to wait for the next round of foreclosures, but we do know more are on the way. All we can do is stay informed and be prepared for our clients. For more information or questions contact us at our website www.stuartandstuart.com.
Related Posts: San Diego
When Can I Buy A Home Again After Foreclosure or Short Sale?
Posted by Pam & Joanna | Leave A Comment »
When Can I Buy A Home Again After Foreclosure or Short Sale?
The answer to this question has been very vague until now. Finally here are some answers to questions so many Californians are asking.
This article expands on an earlier post we wrote “Short Sale? Foreclosure? What should I do? and helps to clarify what the differences are and where your credit stands after you have experienced one of these situations.
This information comes directly from the California Association of Realtors legal department.
One of the concerns a consumer has after experiencing a bankruptcy, foreclosure, or short sale (referred to as a “preforeclosure sale” by Fannie Mae) is the ability to obtain credit to purchase another home. Fannie Mae has updated its credit guidelines. This legal article summarizes those guidelines.
Q 1. How long is the time period after a foreclosure before a consumer can be eligible to obtain credit to purchase a home?
A Five years from the date the foreclosure sale was completed.
Additional requirements that apply after 5 years and up to 7 years following the completion date are as follows:
. The purchase of a principal residence is permitted with a minimum 10 percent down payment and minimum representataive credit score of 680.
. Purchase of a second home or investment property is not permitted.
. Limited cash-out refinances are permitted for all occupancy types pursuant to the eligibility requirements in effect at that time.
. Cash-out refinances are not permitted for any occupancy type.
(Source: FNMA Announcement 08-16, 6-25-08 )
Q 2. Why do the additional requirements for foreclosures in Question 1 only apply from 5 to 7 years following the foreclosure completion date?
A According to Fannie Mae policy in Part X, Section 103 of the Selling Guide, Fannie Mae requires only a 7-year history to be reviewed for all credit and public record information. The 7-year timeframe also aligns with the information provided by the borrower on the loan application relative to disclosure of a past foreclosure action. (Source: FNMA Selling Guide, 4-1-09. )
Q 3. Does a shorter time period apply if the borrower has “extenuating circumstances” that led to the foreclosure?
A Yes. Three years from the date the foreclosure sale was completed. The same additional requirements apply as listed in Question 1 except the minimum credit score of 680 is not required. (Source: FNMA Announcement 08-16, 6-25-08. )
Q 4. What are”extenuating circumstances” ?
Related Posts: Financial news, Foreclosures, Home Loans, Mortgage News
Great Questions to Ask to Prevent Becoming a Foreclosure Scam Victim
Posted by Rachel LaMar, J.D. | Leave A Comment »
We all know they are out there–people who feed off the desperation of others. The current housing market is no different. In fact, it is a perfect environment for the birth of new schemes to take your money from you, no matter that you are just trying to save your home from reverting to the bank.
In my last post I discussed some of the latest scams that are out there and how to beware of them. The Obama administration has been looking into this and just a few days ago the Treasury Department and Department of Housing and Urban Development (HUD) announced that they will be instituting policies to crack down on people who are perpetrating such scams by attempting to charge victims for foreclosure counseling.
I read a great article that provided some simple questions you can ask any organization or person who is attempting to help you avoid foreclosure by counseling. I think these are great questions to ask and although not foolproof they will hopefully give you a feel for whether the organization is legitimate. Here are the questions:
1. How much does your service cost? Remember, as I pointed out in my last post on foreclosure scams, there is a range of free counseling out there. NEVER pay someone to counsel you, unless it is your attorney or your accountant. HopeNow (1-888-995-HOPE), HUD (www.hud.gov/foreclosure) and Acorn (http://acornhousing.org) are the top three free counseling services in my opinion.
2. How long has your company been in the business of foreclosure prevention counseling? You can use your judgment here. Although length of time in business is not always better it allows time for relationships to be created that can help you (see below).
3. Do your counselors have a “direct pipeline” to the mortgage modification department of your lender or service provider? Some counselors dealing in mortgage modification and other foreclosure prevention counseling have long established relationships with loss mitigation departments of various lenders. These relationships go a long way in helping you, as they provide the counselors a direct line to the right people. This can obviously speed the process along and prevent long periods of waiting to hear back, only to find that you needed to contact someone else.
The article mentions that the firm may tell you that they DO have such a relationship, and advises you to get specific by asking if they have such agreements in writing, and also if they work with a specific person from YOUR lender’s office who has authority to make decisions regarding your account.
4. Does the company have a direct connection with someone who is a decision maker or who can override decisions made by the loss mitigation department? Again, the relationship established between the counselors and the “right” people can make all the difference between getting a work out and getting closer to being kicked out of your home.
5. Will the counselor stay with you throughout the entire process? This is important because the counselor will know your case and all the details that are involved. If you are tossed around to various counselors obviously the benefit is not the same. Having dealt with lenders on short sales as a Realtor I KNOW first-hand how frustrating it can be to have to explain your point every time you call to a different person, oftentimes getting completely different answers (or feeling like you are in the Twilight Zone because you know you went over this before).
Keep in mind that if you are unemployed and will be unable to make payments on a newly modified mortgage, speaking with a counselor may not offer you any consolation. You need to still be able to show that you will be able to afford the new loan. If you are in this position than you need to pick up the phone and get help. Don’t wait until it is too late and your lender sends you a notice of sale.
For more information on options to help avoid foreclosure and links to helpful programs and information, you can read my book, Mortgage Walkaway Options. Visit http://MortgageWalkawayOptions.com.
Related Posts: Foreclosures, Mortgage News
