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The first thing I tell my buyers and sellers is to read about the different kinds of sales on the home page of my website. If you need help please contact me. Regular Sale. Short Sale, REO, Pre Foreclosure, Online Auctions In today's San Francisco Bay Area market there are numerous properties for sale. I have been working with buyers and sellers in this challenging market. For the most part, prices ranging from $200,000 to $400,000 are being sold as Short Sale or REO properties. There are some being sold on Auction websites. Very few homes in the above price range are being sold by homeowners as what we call a Regular sale. Below are a summarized definition of these types of transactions. Regular Sale - A sale where the seller has equity in the property. The buyer and seller will thenegotiate price and terms of the sale. The seller is required to provide Disclosures according to California Law and statute. The transactions in this type of sale are generally much easier to come together as there are timelines in which the seller needs to abide by in the transaction. The seller is motivated to sell and move on in his/her life. Short Sale - A short sale is the sale of real property where the fair market sale price is less than the loan(s) on the property. A short sale means the seller's lender is accepting a less than the existing loans on the property. Just because a property is listed with short "sale terms" does not mean the lender will accept your offer. These properties must be purchased "As Is" without any repairs or warranties. Some are in need of repair. The lender is already taking a 30% to 50% loss on the property. This is why a majority of the time, they will NOT negotiate on the price. In fact, in most cases in our area, there are multiple offers on most properties that are in good condition and the price will higher than the listed price. If the property in encumbered with more than one loan, there could be a problem. All of the lenders must agree to a short sale or a contract can never be ratified. There is no guarantee the lender will approve of the sale. My buyers have waited over 4 months for the lender to respond to their offer. We are still waiting for an acceptance! I have heard of circumstances where it took the lender over 9 months to respond and did not accept the offer. Statistics show over the last six months that only 20 % of these sales have closed. The homeowner should consult their CPA or Tax Attorney before entering into a Short Sale agreement. REO/Bank Owned Property - REO is an acronym for a real estate owned property that has beenforeclosed on or repossessed by banks or lenders. These properties are also sold in "As Is" condition without any repairs or warranties. The seller (lender) is exempt by law from completing any disclosures. The agents involved in the transaction are not exempt from completing their visual inspection as per California's disclosure laws. Prior to these properties going on the market, the lender has had an agent submit a BPO (Broker's Price Opinion). So, just as in a short sale transaction, the lender is already taking a 30% to 50% loss on the property. This is why a majority of the time, they will NOT negotiate on the price. In fact, in most cases in my area, there are multiple offers on most properties that are in good condition and the price will higher than the listed price. Again, some properties are in need of repair. The process for bank approval can be anywhere from 3 - 10 days. Pre-Foreclosure Property - A property where the homeowner has fallen behind in their payments or when a Notice of Default (NOD) has been filed against the property by the lender. May not have much flexibility in negotiating. These properties may be regular sales or potential Short Sales. The homeowner should consult their CPA or Tax Attorney before entering into a Short Sale agreement. Online Auctions - Recently I have found that some of the REOs that have not sold were placed on an online auction website. Do not be fooled in thinking that you can purchase these properties lower than what they were listed for by an agency. The agency still has the listing. The website starts with a minimum bid and the buyer is made to believe that they can purchase this property for this amount if there are no other bidders. Not so, there is a reserve amount that the lender expects to get for the property. This price is usually what the real estate agency has listed the property for in the multiple listing service. There is a 5-10% fee paid to the auction house in addition to the final bid price. These properties are all "As Is" sales without inspections or warranties. |
WOW! The California Association of Realtors has just rolled out another great service for the buyers who work with California Realtors to purchase a home. Through the C.A.R. Housing Affordability Mortgage Protection Program, first-time buyers who lose their jobs due to layoffs may be eligible to receive up to $1500 a month for 6 months to help make their mortgage payments. A co-buyer may be eligible to receive up to $750 a month to help make the payments. This program also includes death benefits and accidental disability insurance for qualified buyers. A first-time homebuyer is anyone who has not owned a home in the last 3 years.
An agent in my office came up with the idea a few months ago and sent it on to C.A.R. She has been very prominent on the Housing Affordability committee at C.A.R.
For all you first-time homebuyers who want to work with a Realtor in the Know, please call me for more details on this great program!
I have been serving buyers and sellers in the Alameda and Contra Costa counties for over 25 years.
Our California Statewide MLS is moving along very fast! Aside from the fact that we will be able to search properties through out the state, I am very exited about the vendor! Concentric is the vendor of choice. The agents will be able to go on directly through Concentrics or if you MLS chooses, they can still use the front end of their existing MLS and the agents will not have a learning curve.
Of course your MLS will have to opt-in and join calREDD or the agents will not have statewide access. Concentric is a new company and it is a fantastic program! They are making presentations to Associations and real estate companies right now. You might want to sit in on a presentation. Go to the calREDD for more info. It is worth it!
The public needs to be aware of this new Multiple Listing Service too. They need to know if their agent will have access to this wonderful service.
The directors of the California Association of Realtors voted on Saturday to fund a line of credit in the amount of 3 million dollars for future development and ongoing operations of our new State MLS. It will be called CAL REDD (Calfornia Real Estate Dynamic Data). Concentric provided a demo of their system. It is great! If MLS' opt in to the statewide MLS they can use their own front end system or go directly to Concetric's system. I do not know why anyone would want to continue with their own front end system when Concentric is so wonderful with a lot of bells and whistles that agents would love to use! Wait and See! I think you will like it.
I have the best State Association. The California Association of Realtors is always helping their members in every way. Everyday I receive helpful information. Not only is the information helpful to me but my association gives us information to pass on to the consumer and our clients. The information below is a help to all, you, me and especially the homeowner.
Mortgage Workout Program
The following information is intended for REALTORS® and homeowners seeking information on existing mortgage workout programs. In general, the loan modification programs on the chart (see link below) and consumer information sheets (see links below) are intended for primary residences only.
For an informational chart on existing mortgage workout programs, click here. 
The chart is a compilation of programs offered by the larger lenders and government entities. If a specific lender or loan servicer is not on the chart, homeowners may wish to contact the lender or loan servicer to determine if a workout program is available.
Consumer information sheets containing detailed information on specific programs I as a REALTOR® can share with you, please click on the appropriate link below.
. Countrywide Financial (Bank of America)
. Federal Government Loan Modification
Mortgage loan modifications typically are handled on a case-by-case basis. Homeowners having difficulty meeting their mortgage obligation or interested in finding out more about a loan modification program should start by contacting their lender. Prior to calling a lender or loan servicer, homeowners should have the following information available:
. Loan number
. Income information and documentation
. Most recent mortgage statement
. Bank statements
. Letter demonstrating financial hardship
Homeowners may go direct to work with a U.S. Dept. of Housing and Urban Development (HUD)-approved counselor. For a list of HUD-approved counselors in California, visit the HUD Web site at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=CA .
For help I am here for you! You may contact me anytime:
800.398.9300
510.908.9002 Cell/Text
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Serving Alameda, Oakland, San Leandro, San Lorenzo, Castro Valley, Pleasanton and San Ramon and most of Contra Costa county. Call/text anytime!! "I Sell Dreams"
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