Susan Manning

Just putting this out there...my clients put an offer in on an REO listing TWO WEEKS ago today. We still have yet to get a response back one way or another. The listing agent thinks that the offer is going to be accepted as written and he has not received any other offers on the property either.

We have another counter offer on an alternate REO listing that basically accepted the terms of our offer. We have yet to get a signed contract and addendum back yet. No other offers in on that property either. So basically my buyers are in limbo on both of these properties.

See, it just goes to show, purchasing an REO can be a big pain too. Maybe a short sale isn't such an awful option for a lot of buyers. Haha!

So you realize that your two year adjustable rate is going to reset in a short while and there is no way that your house is going to appraise in order to refinance. Or you bought your home one to two years ago and realize there is no way you're going to be able to sell the house for what you owe even though a job change, divorce, or other financial hardship is inevitable. If you have a definite financial hardship that you can prove in writing to the bank, you have one of six options to consider:

1. Absorb the cost. For most people, this isn't an option. They either can't afford the increase in payments or to pay the difference in cash for what the are going to owe. Even if you could absorb the cost, it may not be a wise choice financially even long term.
2. Modify your loan. The banks these days are working with borrowers in many different and creative ways. Many times this is good news. They are extending low rates after the initial period, they are adding interest and payments on to the end of the loan and principle, they are setting up payment plans with those who are able to get back on track after a loss of income. This may be a viable option for those who may have fallen off track, but are willing to put in the extrawork to get back in good graces with the bank.
3. Offer a deed in lieu of foreclosure. In some cases the bank may consider taking the deed back if you as the seller have not been able to sell the home on your own and you don't owe a huge amount over the current market value. Each case and bank policy is different, so you'll have to find out the answer as this is on a case by case basis. A title insurance policy may be a good idea to offer in order to ensure clear title for the bank if they are skeptical about taking over title.
4. Short Sale. This is when you get the lender to accept less money for the sale than what you owe. It is important to understand the full tax and financial repercussions of a short sale, but generally speaking a short sale is much better than a foreclosure on your credit. It is important to have an experienced full time agent working for you to get this sale through. A short sale is really an oxymoron (!) because it generally takes six to eight weeks to get a short sale through escrow. Although a short sale takes a lot of extra work and patience, generally speaking the seller is able to stay in control of the sale which can give peace of mind to many people. A short sale can be a great option for buyers when interest rates are volatile as they can "lock in" at the lowest rate during the long escrow.
5. Foreclosure. This is the process of Notice of Default, Notice of Trustee's Sale, and then Trustee's Sale. Generally speaking this is the worst option and the borrower loses control over the situation.
6. Bankruptcy. Many people don't realize that bankruptcy can stop the foreclosure process and can even delay or stop the Trustee's Sale. There are many repercussions of a bankruptcy or "BK" as those in the biz refer to it, but it may be the best option for you. It is important again to speak with the proper financial and legal professionals when considering this option.

There are many options available to you if you are facing a financial hardship. As a full time professional real estate agent I am happy to discuss your situation with you personally. Call me to make an appointment today! Susan Manning 951-551-7790 TopProperty4You@aol.com

This Sunday I did an open house on a new listing that I have which also happens to be a short sale. I couldn't believe how many people I had through even though it was raining (which is almost like a national holiday in California by the way.) Anyway, I had eight groups of people through the doors. One was the wife of an agent who really liked the house, but decided that the house was just a little bit too small for her family with four children.

The next group through was a neighbor who had the same floor plan and wanted to know why the price was "so low." She seemed a bit angry and just curious too. It is a sign of the times that many people in our market are just not aware of how dramatically prices have dropped - even within the past couple of months. I understand it must be frustrating that your home may have dropped several hundred thousand dollars in a very short period of time. I feel horrible for past clients of mine who have lost so much equity. But most of them got fixed rate loans that are not due for at least five years so they should be in much better shape in a few years.

Anyway, the next group through was a Realtor named Fran and her clients and what looked like the brother of her client. She was kind of grumpy quite honestly. She didn't seem to have the patience for a short sale and wasn't very optimistic, but her eyes perked up when she saw the flyer for some other listings I had that were in a lower price range. I wondered why she had her clients looking in the $350K range if they couldn't afford it. Maybe she hadn't pre-qualified them. Who knows. Honestly I wouldn't be excited to work with this woman. Ask me how I feel about it if an offer comes through from them.

The next group was another Realtor and her client. This Realtor was a 180 from the last one. Carole seemed like a very nice, normal type of agent I would really like to biz with. Her client had already put an offer in on another short sale property and was waiting to hear back from the bank. She didn't seem convinced that the listing agent was as "in the know" as what he had implied. She said they were told that they had "an in" at the bank and that they would be able to get an answer back very quickly. After a week in escrow, she didn't seem so sure. She even questioned about the listing agent taking other offers on the listing. Interesting. This relates to the whole "And More" I have in the title. There are so many people out there claiming to know this or that about short sales it makes me nervous. Especially if an agent tells you that you have to be "short sale certified" like one just told my brother in law this weekend. There are so many people out there that don't know what they are doing, it is scarey!!

A couple of Japanese men walked in while Carole and her client were chatting with me. They seemed to walk around the house and speak to each other, but had little to say to me. Lost in translation perhaps?

There was a couple from the neighborhood who had a similar house and had lots of criticism for my listing although it is in near perfect condition. I wasn't thrilled at the thought of working with nit-pickers. Next!

Nancy was a really nice Asian lady from the area looking for an investment. She wouldn't give me her contact info, but I hope she calls me about another listing I have in the area. She seemed really nice and serious.

The final group was a nice family who were coming through at the last minute when I was closing up shop. It always happens that way. You get ready to shut the windows and lights off and someone walks in when your hands are full and the flyers are put away. The house wasn't exactly what they were looking for, but I had a killer deal I had just seen when previewing earlier in the week. The house was all about the view. It was a definite fixer. So on my way out, I grabbed a couple of the open house signs and locked up to take them to go see the other listing. It wasn't a good one, but I'll stay in touch with this family.

All in all, it was a very successful open house on a rainy day. I would do it again in a heartbeat!

I've got several short sale listings right now and I'm pumped up!! I feel like I am really helping people stay in control of their choices in this market, and I'm also selling some GREAT deals!

One thing I've decided is that I am getting the work out package together with or without an offer. If the banks ask where the offer is, I'll tell them its coming!! Heck yeah! Why not? I've got some GREAT homes listed that surely will garner some interest, definite hardships on the part of the sellers, and I'm ready to rock and roll.

I understand that short sales are a special kind of beast. Just because you are talking to Mr. Joe Countrywide today on the phone doesn't mean that he gives a diddly if this deal goes through for the bank or not. He is still getting his $12.50/hour regardless. And you as the agent are working night and day and you actually care about your CLIENT! In case people didn't realize, real estate agents work on commission and don't recieve an hourly pay!! Its our job to get these deals done!

Lots of buyers and buyers agents shy away from the shorts sales, but I am finding more and more of us brave agents who are willing to go the extra mile to get these deals through. Agents, you need to remember this too! If you expect other agents to show your short sale listings, you need to let your buyers see the short sale listings that pop up too!! We all need to work together! And I really believe it can be done.

Wow, its amazing how many bank owned listings are available in our area. I've been working with a buyer for the past two weeks and we've written six offers. The first one we wrote had another offer just accepted right before we faxed over our offer. We learned our lesson and made sure to call on the others before we spent the time and did all the paperwork. The back up choices had three and five offers on the table already. We kept looking. I thought we were ahead of the game since we were writing the offers in the afternoon on Monday. Then again, that is the same as writing an offer on Sunday if the banks are closed. Monday is still "retail price" for the bank owned properties.

I think we've seen every available home in Temecula that is up to the $250K price range. It makes sense. That is affordable housing for California. The total on the payments with three percent down comes to about $1800 a month.

All I can say is thank God for hand sanitizer. Some of these houses are ridic! Its amazing to know that people actually lived in these places. The carpets sometimes are, my lord, horrible! And the kitchens. Yick! And mind you, how many freekin' random stoves and dishwashers are going to be available for sale in flea markets and the like. C'mon people, what were you thinking taking all that stuff out? Is it the banks fault you didn't pay your bills? That's just weird, inconsiderate, and a true show of character. Its sad.

I am hoping an offer we put in today will go through. Its a four bedroom house/three bath house with one bed/one bath downstairs. Perfect for grandma and grandpa who will be visiting and can't make it up the stairs. The kids will each have their own room as well. Good schools, good location for commuting. Of course one of the other four offers may be accepted too. It would be nice if we could get an answer back from someone! Of course I did offer to pay to have the property cleaned before they move in. It was embarrassing how yucky the house was! Good thing I know a great cleaning lady!

I've been calling each of the listing agents every day, staying in touch, but still no answer. I'm sure I'm getting on their nerves, but I wouldn't feel right if I didn't call to check. Hopefully one of the filthy fixers will be accepted and we'll be opening escrow soon!