Israel Barden

As we all know, loans are harder and harder to get these days. If you have a buyer with great credit and 20% down, things are still peachy keen. However, if you have buyers that are purchasing for the first time or don't possess sterling credit, odds are you will have to deal with some sort of government program. By government program, I mean things like FHA, CalHfa, VA, CalVet, County Down Payment Assistance Programs, etc.

While these programs are great in giving buyers options they might not otherwise have, they present their own particular set of difficulties. Over the past year I have had numerous dealings with these programs and I can tell you from experience, they are never easy. Just when it seems like everything is smooth sailing, whamo, a new condition or hurdle pops up that threatens to derail the whole process. We all know how bureaucracies function and that's what these programs are mired in. Red tape and confusion abound. If you can find someone who can give you a straight answer instead of a maybe, consider yourself lucky.

For instance, I had a couple buying their first home using a CalHfa loan earlier this year. I couldn't believe the hoops they made these people jump through. The wife has a job that allows her to work from home and the husband is a computer genius who designs websites and can work remotely from his home office. The people made the wife get letters from her boss, HR Department, and others stating that yes, indeed, she was really able to work remotely. Not such a big deal, except they made her do it unexpectedly smack dab in the middle of the process. Then, the couple had a nice car that they were leasing. The people doing the loan decided the car payment was to high and told them they had to get rid of the car. So, my clients had to pay 1,000's of dollars to get out of their contract and give back the car. Guess what? Then they told my client's that even though they had gotten rid of the car, they would need another one at some point and so they were going to leave the cost of the car they had gotten rid of on their negative balances. What? So they were being penalized for a car they no longer owned. My clients actually had to go and purchase a cheap car they didn't want to get the higher phantom payment off their record. A 30 day escrow rapidly turned into a 60 day escrow. Luckily for us, the seller had a child support lien come up that he had to satisfy or else my clients would have been paying the seller for every day the house went over the 30 day escrow period.

I am dealing with a couple now who are on a Down Payment Assistance program with the County. Same thing. Nothing but red tape and numerous conditions to deal with. Nobody at the County can ever give us a straight answer on anything. My clients received a call from their lender one night and were informed that they were required to attend a County class on buying a house as a condition of getting the money. One catch, the class was 100 miles away and if they didn't show up in the morning, it would be another month before it was offered again. The County keeps losing the paperwork or demanding more things they forgot to ask for. We are faxing them papers over on a daily basis. They sent us a letter three weeks ago stating that they have decided they have to inspect the house themselves before they will give us approval to draw docs. They still have not done the inspection and nobody can tell us what is going on. Now it sounds like they probably aren't even going to do the inspection and we should be able to draw docs early next week. Headaches galore.

If I have learned one thing from all of this, it is to ask for a longer escrow period anytime you are dealing with one of these loans. An extra two weeks may be the difference between a smooth transaction and a huge mess. Be aware that your clients are going to have to jump through more hoops than a circus pony and make sure they are aware of this fact. Loans that are approved one day can be snatched away without warning the next. Never expect a straight answer and even if you get one, be suspicious. The DMV has nothing on these guys.

Originally Posted On www.bigbearilluminated.com

I just wanted to let everybody know that we are going to be sponsoring a tour of the best bank owned homes in Big Bear. The first tour is going to be on July 12th at 1:00 pm. We are going to be meeting at the Coldwell Banker office at 42153 Big Bear Blvd. The tour will take anywhere between two to three hours. We will be providing refreshments and snacks at no charge to anybody who wants to come along. If you want to sign up, just follow this link http://www.bigbearreo.com/big-bear-bank-owned-prope.html . Space is limited, so the sooner you reserve your spot, the better.

We will be doing the tour every Saturday after the 12th. So, if you can't make it then, don't despair. Just contact us and we will put you on the next one. Also, we can show property any day of the week if you can't make it upon the weekend. My personal email is izzy@bigbeargallery.com .

This bank owned property just closed escrow today. I am posting it to shed a little light on how the market is dealing with bank owned properties at this time.

The home is located at 332 Downey, in a nice area in east Big Bear City. The home itself is 2,760 square feet and sits on a 10,539 square foot lot. It was built in 1973 and is in fair condition. It last sold in 2006 for $425,000.00. After it went into foreclosure, the current listing price was $249,900.00. It sold for $265,000.00, $15,100.00 more than it was listed for.

It just goes to show you, the market on bank owned properties is really heating up. The properties that are good deals are receiving multiple offers and are selling at or above list price. If you see a bank owned home that you want to purchase, be aware of this fact. If it is a good deal, be prepared to write a good offer. Many of the banks are just turning down low ball offers without even bothering to counter. If you are trying to make a low offer, at least make it as strong as you possibly can in every other facet. If you want a list of bank owned properties in The Big Bear Valley, please contact me and I'll get it too you ASAP.

Originally posted at www.bigbearilluminated.com

Hi Everybody,

I just wanted to tell everybody who read's my blog and is interested in Big Bear real estate that we are going to be planning a great opportunity to view the best bank owned properties in Big Bear. We are still in the planning stages at the moment, but we are trying to put together a tour of Big Bear Bank Owned Homes. Depending on the amount of interest and reservations, we may even rent a bus to accomodate everybody. We want to get our most knowledgable agents as guides and show prospective buyers the best deals available today. We are going to have a catered lunch and refreshments free of charge. It is going to be a good time and an easy way to see all of the bank owned homes in the valley.

Originally posted at www.bigbearilluminated.com

This is a bank owned property I just closed escrow on this Friday. This home had suffered around 80k in fire damage last year. I did the comps and determined that this home would probably sell between 480k and 520k, if it was rehabbed. The home was priced at $229,000. My client started out at $200k with no contingencies, a 10 day escrow, and all cash. It turns out several other buyers liked it as well. The bank countered back with best and final on all offers. I told my client if he really wanted this home than he needed to figure out how high he could afford to go and then make a maximum bid. So, we bid $253,000, all cash and we got it. We were lucky due to an even higher offer coming in right after ours was accepted.

This just goes to prove a point I have been telling my clients all along. The good bank owned properties are going to sell quickly for either full price or above. If you try to low ball the good ones, you are only going to waste everybodies time and miss out on the property. If you really want it, make a good offer and be prepared to go even higher if you have too. If it is an undesirable home that has been on the market for months, that is a good candidate for a low offer. You are either going to get a great house for a fair price or you are going to get a fair house for a great price.