Jeremy Garcia

I have an agent that is using top producer 81 with market snapshot and has had a few people register for the market snapshot. Does anyone have any recommendations on what to do next with those leads?

There is currently a 2.7 month supply of inventory for Tulare County's resale market. The moratorium placed on foreclosures at the begging of the year has really helped stabilize prices, almost too dramatically. We are seeing almost every home on the market sell with multiple offers. If your a buyer in the market for a home you probably know the frustration of trying to find the right homeand making multiple offers only to get beat out by $5,000 to $10,000. There is so much competition for a home from $100,000-$175,000. But there is hope you'll just have to be patientthere is another wave of foreclosure that will start to hit the market at the beginning of May threw the end of the month and pretty much through out the summer. Here is a little hint the new home sub-divisions are offering some really great deals right now. Be sure and take your REALTOR with you, as we know how to negotiate with the builders so that you get the best deal they have to offer.

After finishing our REO panel last Friday morning there was a lot of great information flying everywhere, there was one thing that stuck out in my mind. Eric Silva Tulare County's top REO agent said "If you want to compete with the cash buyers that the FHA 203K program is probably the best way to do that". He said that the asset managers along with the selling banks really like these programs because they know that the repairs will be done after the close of escrow and there isn't going to be any surprise repair request from that buyer. With that knowledge, it was time to figure out what the guidlines are for these streamlined FHA 203K loans. Below you will find all the info you will need to navigate one of these loans. Good Luck!

•· A Streamlined 203K loan is figured into the original loan balance, resulting in one loan.

•· It can be an adjustable-rate or fixed-rate mortgage .

•· The mortgage balance can exceed the purchase price of the property.

•· Borrowers are not required to hire professional consultants, licensed engineers or architects.

•· The appraiser or home inspector can put together a list of recommended repairs / improvements.

Eligible Repairs & Improvements

The Streamlined 203K loan allows for simple repairs that can be easily estimated and completed. Many are considered light cosmetic repairs, but some will require hiring a licensed contractor if it falls out of the borrower's area of expertise. Here is an approved list of repairs / improvements from HUD:

•· Roofs, gutters and downspouts

•· HVAC systems (heating, venting and air conditioning)

•· Plumbing and electrical

•· Minor kitchen and bath remodels

•· Flooring: carpet, tile, wood, etc.

•· Interior and exterior painting

•· New windows and doors

•· Weather stripping & insulation

•· Improvements for persons with disabilities

•· Energy efficient improvements

•· Stabilizing or removing lead-based paint

•· Decks, patios, porches

•· Basement completion and waterproofing

•· Septic or well systems

•· Purchase of new kitchen appliances or washer / dryer

Special Conditions & Terms

•· No minimum loan balance required.

•· Borrowers must occupy the property.

•· Property cannot be vacant for more than 30 days.

•· Work must be completed within six months.

•· Work must be professional.

•· If job requires a permit, borrowers must get a permit and a sign-off.

•· Work must commence within 30 days from closing.

Repairs Not Permitted

•· Landscaping or yard work

•· Major remodeling

•· Moving a load-bearing wall

•· Room additions or add-ons to the home

•· Fixing structural damage

Requirements to Perform the Work

•· Borrowers can select among licensed contractors.

•· The lender will review the contractor's experience, background and referrals.

•· The lender will want a copy of the contractor's estimate and the agreement between the contractor and borrower.

•· Borrowers can also arrange to do some or all of the work under a "self help" arrangement.

•· Do-it-yourself projects require providing the lender with documentation supporting the borrower's knowledge, experience and ability to perform the necessary work.

Disbursement of Payments

•· Maximum of two payments to each contractor, including the borrower, providing the borrower works under a "self help" plan.

•· No more than a 50% advance is allowed.

•· Do-it-yourself allowances do not include labor; only materials costs are allowed.

•· Final payment is paid after submission of evidence of payment to sub-contractors / suppliers or other possible lien claimants.

Reasons to Apply For a Loan Below $15,000

•· The lender is not required to inspect the completed work.

•· The lender is not required to authorize a third party to inspect the completed work.

•· A letter from the borrower or copies of contractor receipts will suffice as notice of completion, providing the lender has no reason to determine a third-party inspection is necessary.

This Friday April the 24th the Tulare County Associations of REALTORS is hosting a REO mastermind panel where they will be discussing how to navigate an REO transaction successfully. Six of the top REO listing agents along with one of the areas top REO escrow officer will be on the guest panel. The event is open to all REALTORS that are members of either the Tulare County Association of REALTORS or the Orange Belt Association of Realtors. The evet will be held at the Lamp Liter Inn in Visalia from 9:00a-11:00a. I beleive that this will be one of the most important educational events of this year. See you there.

I just finished an REO mastermind this afternoon in my office with 4 of our REO agents. The discusion was all about being an REO agent and what the pros and cons of the business are and how to optimize that business for the most profit possible while still maintaining a balanced life. The undertone of the meeting was even thou it is a lot of work dealing with asset managers and banks that they still felt very fortunate that they had the REO business. I believe a lot of real estate agents would love the opportunity to be a listing agent of REO properties. The one thing I learned today is that there is no secret of how to obtain REO listings it just takes a lot of hard work and you have to prove to the asset manager that your willing to work extremely hard for the business. Being a listing agent is and always will be a big part of being a real estate agent. So in this market there are really only 2 choices to list properties and that is short sales or REO's. One of our agents hasclosed 4 transaction in the last 45 days all from sign calls from there REO listing's, these listings have also sold. Bank owned property is just to big apart of the real estate business to ignore right now.