The past 8 months has brought thousands of visitors to our site searching
foreclosures and short sales and we've been successfullly getting Investors
great value. Many customers cannot believe how dramatic the price swing here in
Sarasota, Fl. and in general Southwest Fl. has been, and how the Banks/Lenders
are accepting losses above 35% commonly. Although, the last 2 months
we've seen mulitple offers being presented simultaneuosly; which may
indicate confidence is coming back to the real estate market. Is the
pendulum starting to swing?
As I posted yesterday, I'm reporting back on the closing costs
charge to my buyer after the bank had agreed to pick and pay for title
and closing costs services. After we review the HUD settlement statement
and notice those bogus charges, we referred the matter to our customers
attorney. Unfortunately, my customers attorney was weak and didn't
understand the written contract and allowed the Title company to
charge his clients $350.00; the attoneys feelings: "it was a compromise".
There is a $325.00 savings over the $775.00 the Title company tried
to charge. So, we feel somewhat satisfied.
We have sent this to The State Licensing and regulatory Dept. for review and hope they
look at the possibility of action to be taken against these predatory practices.
This should not be a situation of compromise but rather a contract
to be adhered to.
This is a follow up to my excessive Title closing costs blog. Today,
we received the final closing statement from the Banks choosen
Title company, per the contract (foreclosed REO) the Bank choose to pay for closing
and therefore was able to choose the Title company. But to our dismay;
we have the Title company charging our customer the Buyer a $550.00 closing fee,
scanned storage fee of $50.00, and a $175.00 lenders policy
( lenders policy typically in Sarasota, Florida are $25.00 )
I'll update tommorrow; how much we were able to negociate off.
Brooke O'Malley Real Estate Broker/ Mortgage Broker
Licensed Real Estate/ Charity Auctioneer
Club Realty/ MyClubRealtycom
2033 Wood St #210
Sarasota,Fl.
Many buyers have been disinchanted to make offers on Short Sales
because of several factors. The first is the reponse time of which
I'll address in this paper. The response time has been the biggest
factor with both the buyers and agents, waiting 30-45 days is
ridicules but currently thats the scenario because each party
must agree to the final outcome at this stage in the foreclosure
process. Primarily the lenders/Banks response
time is the problem and if two banks/lenders are involved there is a compounding
factor due to the fact both must analyize their position and decide
how to proceed. In addition many Licensees have no experience
and getting a conclusion is like re-aligning the stars. This said,
we suggest that a realistic approach be taken, and if you are looking
to purchase for yourself as a primary or second home vs. investment
property, during this foreclosure process ( Short Sale ) vs waiting until the Bank
completes the foreclosure process and is Deeded the property
back. At this time the property becomes known as an REO(real estate owned)
in the financial world. look at previous sales and do a comparable
analysis of properties that have sold in the area or similar properties
adjacent or near the subject property. Compile this info coupling it with
an offer approximately 20% below the comps and if you deduce
that its a great deal; then you'll see a better response because you
haven't started so far off that the lender doesn't even respond. We have
Buyers' that have purchased successfully and reduced their tension
with a sound and measured Offer using this model stategy.
As an Investor you should use the shotgun method and just
work the numbers to secure a sound investment.
With the primary activity of sales in our area being Short Sales and REO'S
we are finding that lenders are picking the Title companies and say they are
paying closing costs and what in fact is happening; is many of these
Title companies may be charging the buyers also with higher than customary
fees. One example is the lenders policy which is added to the buyers
costs. Normally in our area; Sarasota Fl. the lenders policy is an additional
cost of only $25.00, but we are seeing Title Companies try to charge 10 Times
that to buyers. Buyers should contact several Title companies and ask for quotes
on a closing within their Price range. This will insure that you get competitive
prices for equal services and are not victim to these additional junk fees.
Licensed since 1998 as a Real Estate and Mortgage Professional; Brooke O'Malley PA., Broker of CLUB REALTY & MYCLUBREALTY.COM serves Sarasota, Bradenton, Venice, Lakewood Ranch, Siesta Key.FL.
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