Having just completed two sales involving bank-owned property sales in the last week, from the buyer’s agent side the two transactions could not have been more different.
The first sale involved 2X the paperwork, threats by the listing agent such as “perform on time or else”, also reminders on each page do not ask for an extension they will not be granted, if you are late it will cost you $100 per diem (per the original documentation), however, when we got the final addendum it read you will be charged the per diem rate by the week or $700!
Our problem was the gas was shut off at the property due to the listing office missing this point. It slowed up our inspections and ultimately slowed up the closing as the appraiser had to come out AGAIN to check the gas was on. Add to that the new borrower disclosure timelines are slowing down loan approval times. You’d think since the seller is a bank they would take that into consideration. I realize I am ranting at this point but has common sense gone out the window?
Somewhere along the line I recognized it was not necessarily the seller but the listing agent “team” pushing the militant ways. “Do it by this time or else no deal – We don’t care what your buyer has spent on inspections and appraisal.” This point became crystal clear when I asked for an few more days for PMI (private mortgage insurance) approval and the “team” person said NO way and then cut and pasted something from a week before that the seller/bank had sent. I could not believe the seller/bank would throw away our contract 2 days before we got formal loan approval and 10 days before close just to go back on the market in this crappy sales environment.
I doubted they presented my formal request (with full details for the reasons for the delay and why it was in their interest to stick with us) to the seller/bank. The listing agent “team” said “send over the cancellation”. I decided to add a sentence to my cancellation form stating – buyer is 2 days away from PMI approval and the seller refused to extend the contingency. What do you know the next day the seller/bank was willing to remain in contract and let us close. My suspicions were correct – the listing agent team was the militant stopper of the transaction.
The other bank-owned transaction was just about the same as a regular sale. We needed an extension and it was granted. Of course, I was always on the ball, quick to supply any requested documents and I kept in close communication with the listing agent. No problems here!
But I ask you WHY all the stress? Getting a sale complete is a team effort. We all want the same outcome. I will consider long and hard before I forward any future offer to this listing agent “team”.
If you want good client representation give me a call.
Last week we were taking offers on a short sale of a triplex in Richmond. The amazing point was not really that there were 19 offers after 1 week or that it sold for way above what it listed for but that almost 2/3 of all the listings were coming from CASH buyers.
Needless to say we accepted the cash offer.
I really want to commend those buyers with cash! It is not an easy feat to amasse cash to the tune of hundreds of thousands of dollars. That saving style is a successful action.
Recently FannieMae announced it would cut the waiting period for a new mortgage after a Deed-in-lieu of Foreclosure to just 2 years! One of the guidelines states the borrower must put 20% down. The new change will go into effect June 30, 2010.
This is great news for those people sucked into the economic slide that affected so many. Sometimes an isolated event can be devastating and if borrowers rebuild their credit, have sufficient down payment and wait the 2 years they can then look to get a mortgage once again.
After seeing headlines – Ten states account for more than 70% of nation’s first quarter total
Highest was California which accounted for 23% of the foreclosure filings at 216,263 properties and 2nd was Florida at 153,540. Arizona came in 3rd with 55,686.
This got me thinking about what percentage of each state’s population was hit with new foreclosure filings for the 1st quarter of this year. See the table – each was surprisingly under 1% of its population – wouldn’t you have thought it was WAY more? Secondly, by population, California has considerably fewer filings.
% of pop.
It just goes to show you there is a need to check behind the figures that are forwarded.
That depends. If you read my last blog you will see it is correct in the single family homes under $300K for Santa Clara County. However, the percentage changes dramatically as the price of the home increases.
Type of Sale
So if you are a buyer not wanting to hassle the long wait for the short sale process you will probably need to get in the $500K+ range.
Working with a couple of buyers in the lower price range, I decided to see how many ACTIVE homes were short sale properties, bank owned (REO) and regular homes in homes listed under $300K. I decided not to check the condo/townhome group – this group has significantly higher overall numbers of available properties, however, there are more restricted loan products to this group which will affect the ability to sell.
In Santa Clara County, the number of homes less than $300K was very few compared to the number of buyers out there. There are 78 short sales (“for sale” hopefuls), 21 bank owned properties and 13 regular sales. So less than 10% are regular sales and 15% are bank owned. The whopping majority are short sales. I call them “for sale” hopefuls. The lender has not yet approved the sales price and the owners hope they will. While a percentage might close some never will. I have seen properties in escrow since last summer! Some of those have closed recently though. So a buyer in this market might get a decent home at the decent price through the short sale process – You just need patience.
We will see if things change next month when a proposed program to speed up the short sale process comes into being. I will be back with you when I see how this is really affecting homes in our area.
Prosecutors are now going after individuals who decide to strip their soon-to-be former homes during the foreclosure process.
Per the note that is signed by the borrower (the agreement with the bank) the fixtures are part of the property and not removable. There is now a movement and well there should be to stop such actions as home stripping.
I’m just back from the National Association of Realtors Convention in San Diego. There were lots of timely break-out sessions (and others that could put you to sleep- I walked out of one). I could tell the Realtors that showed up were we interested in learning and improving their capabilities. I have personally found that training helped me and the clients I represent tremendously. I decided to take advantage of the class for the newest certification → SFR = Short Sale and Foreclosure Resource Certification. With so many companies springing up, I thought it was time to take the class offered by our National Association of Realtors. Just as I predicted I did get a LOT out of it. One of the newest offerings by FannieMae that just came out was discussed – The Deed for Lease Program. It is to help “minimize family displacement, deterioration of neighborhoods caused by vandalism and theft to vacant homes, and the effect these have on families, communities and home price stabilization. This progream allows qualifying borrowers of properties transferred through deed-in-lieu of foreclosure (DIL) to remain in their home and community by executing a lease of up to 12 months.” Obviously, this would be a possible last resort. For example, the kids could remain in their school and have a stable home to come to. Sure the family has gone through the loss of their home but they do not also need to pull up roots and leave the home and neighborhood as well. It was also comforting to hear the lenders are getting more engaged in the short sale process rather than just foreclosing. With training comes knowledge and with knowledge you can be more causative in life. I like that. Count me in! Have you have training that benefitted yourself and others? By going to the seminars/training you get the in the trenches battles that have taken place so you can strive to avoid them.