Susan Manning

I'm not sure what your market is like, but my market here in SW Riverside County/Inland Empire is primarily short sales taking up about 80% of the listings. Another 10% are bank owned properties with the rest being "standard" sales many of which are corporate flips from trustee's sales.

With that being said, the competition for buyers to be able to land a bank owned property are slim. We are seeing 20+ offers on good properties. The pecking order starts with cash offers (and there are a LOT of cash buyers in our market right now) then conventional, then FHA and VA buyers. Many agents are still leary of getting into a short sale even though that is a majority of our market.

So when a client is able to open the escrow on the bank owned property it seems it is cause for celebration. Well, maybe not. Wait a minute.

Unfortunately we agents know, the name of the game is its my way or the highway with the bank, hurry up and wait for the bank, and pay up or shut up with the bank. Its a bit like wheeling and dealing with the mafia in my opinion.

Its my way or the highway: Bank owned assets are sold with little regard to our state laws and forms. Every bank owned property that is sold has their own "addendum" that basically superscedes any other contract and voids many of the terms that is generally accepted. One of the terms that is generally changed is the amount of time a buyer has to do inspections which is shortened from 17days to 10 days or less. Sometimes a bank refuses to pay for items that are reasonable and customary in our market such as termite or appraisal repairs. Another issue is that the bank expects their escrow company to be used in order to get an offer accepted. We as agents know that many times the escrow company that gets the bank's business bid may not be the ideal company with which to work. Just because they are cheaper for the bank (the seller) does not mean they are efficient and have time to help you with your file.

Hurry up and wait: So you send the offer in, the listing agent tells you the bank is responding to you offer. You get their addendum signed and back to the agent, and finally the property goes into pending when the you get the addendum signed by the asset manager. You open escrow, the buyer sends their funds in, and ..... guess what? You can't close. Why? Because the bank is taking their time approving the final HUD 1 estimate of proceeds from the sale.

Pay up or shut up: In our current lending climate we have many FHA and VA buyers. This also translates into having many last minute conditions and verifications by the lending underwriters. What many buyers may not be aware of is that an extension of time may end up costing them. In the bank's addendum, a per diem is agreed to be paid if an extension is needed. Sometimes a bank's closing asset manager may balk at an extension even if it isn't the buyer's fault. Its important to clarify the reason for the need for the extension and keep your fingers crossed that there will not be any additional charges.

Purchasing a bank owned listing may seem like an opportunity for many buyers in our market. Its important to know that a bank owned transaction is not like a typical arm's length transaction with a real person for a seller. Make sure you have an agent who knows the rules and will explain them to you during your transaction. Otherwise you could find yourself taking a long walk on a short bank plank with some cement shoes on. Look out!

This week I had a new client tell me about his horrific experience waiting for a short sale that he thought he had an offer on only to see that the property was a pending sale with no communication or returned phone calls from the listing agent or broker after waiting for about five months for a response.

Unbelieveable. But is it?

Most buyers in our market here in SW Riverside County who have been looking for a house for any length of time realize that it's tough getting an offer accepted and into escrow. But wait, isn't it a buyer's market? Well, not really. This is a conversation that many of us agents have. What kind of market is it? Well of course it depends on if you are a buyer, seller, investor, or looking for a place to rent. But in any case its super important that you have an experienced agent who knows what is going on the market, can represent you in the best light possible, but most importantly who doesn't waste anyone's time.

So what am I getting at? Well, my point is this: A buyer's agent should be prequalifying the listings before you even start to look. Especially when it comes to short sales.

What questions should they be asking? Well, why don't you start with a few of these: Do you have the complete package from the seller ready to be presented to the bank? What banks are they? How many banks/loans/liens are on the property? Do you have offers on the property? How many offers will you be presenting to the bank? If the seller accepts our offer, will they be willing to take the property off as an Active listing and put it into Backup status? Has the property had a bank approval previously? Has a termite inspection or any other inspections been done on the property? Is the seller currently paying on their HOA dues?

All of these questions are important to find out either before the property is shown or before an offer is written. Something you as a buyer must consider is whether or not you want to waste your time on a property that the listing agent is going to keep open as an active listing and treat it like an auction or rather move on to a property where you know that after waiting for approval from the bank, your offer will be the one that is being considered. Honestly I feel the listing agent is working for themselves and the bank rather than the seller which is the party they have the contract with when they auction the property in this manner. Who's interest are they serving when they do this?

Its unclear to me where our MLS board stands on this issue and its a debate that is a hot topic in our market here in Temecula Valley. I would love to hear your feedback and comments on your short sale experiences as a buyer out there. Thank you for stopping to read my blog, I appreciate it!

Have you ever tried doing something nice just "because"? What was the reaction you received? Don't most people want something in return for good deeds?

Well, in my real estate business this happens a lot. Sometimes I will try helping someone not expecting a return at that moment. Like sharing information on loan modifications (I don't get paid a dime for helping clients with this), or sharing information on how to deal with creditors while going through a short sale. Sometimes it is just spending time with someone and listening to the situation they are going through with a sympathetic ear.

This is a really tough lesson in life. To give without expecting anything back. Give because that is who you are. Give because that is a part of your purpose here on the planet.

I truly do believe we live in a global community and each action we take (or don't take) does have an effect on our lives, our community, and the world around us.

Today, take a moment and think about what action you can contribute to the purpose of your life. Give and don't expect a darn thing back. Don't tell a soul. What happens? Maybe nothing. But maybe something unexpected might happen too. Maybe you will be able to connect not only with your inner self but greater self as well. You might just find it in the face of a stranger or a very close friend or family member. None the less you are creating a world that strives to be just a little bit happier and better for that one moment. And isn't that what its all about anyway?

I have been telling all kinds of people, customers, fellow agents, you name it about this incredible nursery. You have to make an appointment to purchase so be sure to call ahead and make sure someone is going to be there. I love this lady's motto, "If we don't have it, you don't need it." Honestly this is so true. They have 30 acres of organic plants and their son apparently has another 30 adjacent. Make sure you have good shoes on and plan to spend a good couple of hours making your way through the fields. You cannot beat the deals here though. Fruit, flowers, ground cover, you name it. Have fun!! Thanks!! Susan Manning, Realty Executives

I was excited to get a call from Mark to Market to do one of their rush BPO orders. Normally by the time I log in to see one of their orders, someone has already logged in a picked up the bid.

Well, guess what? The reason why the original agent couldn't do the job was because they had car troubles. Hmmm...

Cut to me in my little Ford Escape. Yes, I've got 4x4. Thank God. I'm listening to the GPS tell me I have two miles to drive to the landmark intersection. A previous listing tells the reader to head south from Arcola and Powerline until you can see Vail Lake. Take the first dirt road and parcel is on the left.

About a mile and a half into the trek on the dirt road, I began to have a panic attack. The sweet little dirt road suddenly turned into an obstacle course that went up and down and over corners where I couldn't see around. I was scared to death.

I'm coming down a very steep hill probably about the length of a football field, AND THEN I see another car coming up toward me! What? I can't stop!?! What is this guy going to do????

So finally I come close, very close to my destination. I come to a road where I cannot see over the road and I cannot see the road after that drop off. I'm super close.

Guess what, I'm tenacious, but not stupid. I got out of the car, snapped my shots and decided to call it quits. Besides, I have to drive all the way back to get to solid ground.

On my drive back, I'm wondering....hmmm....I wonder how many Realtor's cars are at the bottom of that hill???I mean, come on! There's no way that 9 out of 10 agents would have even considered going that far to do a bpo order. The photo embedded is only a reinactment of what I felt like I was doing today, but seriously, its pretty close! Not kidding!!!