Aaron Kelly - North Orange County Realtor

My client's offer was accepted on a condominium in Fullerton. It's an all cash offer, so I thought the bank would be impressed. Boy was I wrong. We got the call that our offer was accepted on Friday evening around 5:30 on Memorial Day weekend. They refused to send it via fax, email or FedEx, so they demanded that I drive up to the listing office in Chino from Fullerton (where the property and my office are located). My client was out of town for the weekend, but that didn't stop the listing agent from informing us that the seller may cancel if the original addendum signed by the buyer wasn't submitted by 5:00 on Tuesday! What? Monday was a holiday? Not to mention we waited over a week with no response at all. I thought the transaction coordinator got it wrong, but she wouldn't even let me talk with the listing agent on the phone. After driving all the way up there, I was able to speak with the broker. According to the listing broker, this is the new bank policy. He even showed me a fax he received cancelling another deal because there was no response over the long weekend. Maybe if they would take the time to fax the contract with the addendum on Friday I would have a better chance to get things signed over the weekend. It's clear that some of the REO listing agents don't have anyone's best interest (even their own client) but their own. If my client knew the way the listing office is acting and making unreasonable threats, I think she would just walk away. It's this type of behavior that is driving down prices. Many REO's are sitting in disrepair because of a communications gap between the agents out in the field and the asset managers calling the shots. I'm getting it signed tonight and I'll drive it back up there with the original signatures tomorrow morning. I'm sure it won't get cancelled, but why are they turning the screws on a potential buyer who is paying all cash?

For more real estate info: www.HomeRealtyManual.com

Earth Day Celebration 2009 at Garden Grove Park

8701 Westminster Blvd., Garden Grove, CA on Saturday April 25 from 12-3 PM.

Come enjoy international music and dance performances. Earth Day is everyday.

Bring a picnic. Earth Day in Orange County.

We will be volunteering at a display table for people interested in signing up for the Adopt-A-Park program with the Orange County Regional Parks. We'll also be doing face paiting for kids.

For more info: www.PeaceCenteredEducation.org

Some of my clients have been asking about the new $8000 buyer credit, so here's some info I got from Countrywide:

The American Recovery and Reinvestment Act of 2009 authorized a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Highlights of the program are provided below:

*First-time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009.

*The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

*The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.

*The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

*This home buyer tax credit different from the tax credit that Congress enacted in July of 2008 because this tax credit does not have to be repaid. The previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount.

*Participating in the tax credit program is made easy. The tax credit is claimed one one's federal income tax return. Specifically, home buyers complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary.

www.homerealtymanual.com

I closed a deal on a bank owned foreclosure in Anaheim, Orange County California today. It took the lender more than 45 days to close this deal. I was surprised to discover that even after my clients signed the loan docs, it still took two weeks to fund. Should we prepare all FHA buyers for the scrutiny of numerous lender conditions both before and after underwriter approval? Many things we had to send two or three times while waiting for the loan to fund. Have the banks laid-off all the productive workers? Are they really backed up so much that we need to ask for three extensions before closing?

I'm wondering if other first time home buyers are having the same trouble closing FHA deals these days. Do you think the stimulus bill will change any of this?

For more real estate info:

www.homerealtymanual.com

Almost all of the offers that I have been writing these days are for bank owned foreclosures (REO). I've noticed that one of the ways the listing agents are sifting out some of the multiple offers (that sentence alone indicates how hot the market is right now) is by making the potential buyers jump through a lot of hoops. I still remember the look on the face of one of my colleagues when I discussed the fact that there were 70 offers on a property and the highest bids were about $70,000 above the listing price. I had a buyer that was interested in making an offer but he backed away when he heard how many offers were on the table. My colleague (and the 68 other agents) on the other hand had to go back and tell their client that the listing agent was just wasting everyone's time by pricing the property so low.

Recently more and more of the REO listings are requiring buyers to get cross pre-qualified with a representative from the bank that owns the property. Is it really fair to the buyers to have to go through the pre-qualification again and again? I even had one bank tell me they will actually run my buyer's credit again even though I already provided them with the credit report and the 5 page loan application! I had another one recently tell me they will not provide loan qualification until we have an approved offer, but the listing agency wouldn't even submit the offer without a pre-qualification letter from that bank??? The listing agent and the bank are still trying to figure that one out. Meanwhile my client's offer is still sitting on the desk of their transaction coordinator and it still hasn't been submitted. Don't these banks want to sell the property? Sometimes I feel they just want an agent who is willing to put together the most complete package rather than the one with the highest offer. Luckily for my clients, they have an agent who has been through this process several times recently and I can attest to the fact that acting quickly and providing a complete package when submitting the offer seems to increase the chances of getting our offer accepted dramatically. And good luck getting a response. The agents are not available by phone for an update and I'm still waiting for any kind of response for more than a week sometimes. That's being said, I still have several clients enjoying their first home at prices they never thought they would see in North Orange County.

for more real estate info: www.homerealtymanual.com