Help for Unemployed Homeowners

Fannie and Freddie are looking to give some assistance with delayed foreclosure for distressed homeowners, among other help.

For more info: http://www.nytimes.com/2012/01/22/realestate/mortgages-a-reprieve-for-unemployed-borrowers.html?_r=2&ref=realestate

New Short Sale Website

The California Association of Realtors has launched a new short sale website for consumers and Realtors. This site has a fantastic amount of information to help clear up the confusion associated with short sales. Information such as the foreclosure process, timely new topics, tools, the HAFA program. The site is easy to use and not overwhelming.


For more info, visit: http://www.shortsalescalifornia.org/

Great Resource for Homeowners in Trouble

The Neighbor Works Home Ownership Center in Sacramento provides a wealth of information via workshops for home owners in preforeclosure and foreclosure. They also offer help to first-time home buyers just navigating the process of home ownership.

For more info:
http://www.nwsac.org/workshops/

Foreclosures are Now the Normal Market

I believe that the foreclosure crisis will continue through 2015 and maybe even beyond. This is our now normal market. I think the so called normal market of the past is gone for many years to come, unfortunately.  And now the FHA loans with their low 3.5% down payments are the new 100% financing loans where buyers have little stake in the property. Watch for these buyers to start defaulting. The very sad part of all this is that many of these foreclosures (REOs) represent a family who has lost their home.

New Year, New Market?

Not bloody likely. The banks are still trickling in their foreclosed properties, plenty of home owners are still short selling and equity owners are still staying put. However, our median resale home prices have been inching up every so slightly, but still up. A definite positive sign. And with the extension of the first time buyer tax credit, which is also including move-up buyers, we still have plenty of buyers out there fighting for homes. Considering this has been our market for the last few years, this may be the new "normal" market.

Despite all this, it's still fun, exciting and rewarding to be part of this craziness.

Where's the "wave" of Foreclosures

The "experts" have been predicting for some time now that there is a huge wave of foreclosed homes yet to hit the market. Each month, there is still no wave. It looks as if the banks are trickling in their properties slowly, which is keeping this a seller's market and buyers scrambling for homes.

Despite this trickle, I do know there are a lot foreclosed homes out there still needing to be sold. Two of my own short sale listings have crashed and burned and are now both owned by Bank of America. I Love B of A, the best real estate brokerage in the country. I'm really looking forward to the day when all banks do is take our money and lend it. Let's get them out of the business of real estate.

Finally Got an REO account

We have joined the ranks of REO listing agents. I guess now we have to stop bashing them...well maybe not all of them. The best part about this is that we do NOT have to evict anyone. They are former apartments converted to condos and the people who are currently renting the foreclosed units will continue renting through their leases.

These condos are more proof that this whole foreclosure thing is not over. Our listing includes 39 units, which are being phased in 12 units at a time. We may be bouncing at the bottom of the market, but I think we'll be here until 2012. It will coincide with the Mayans "end of the world" prediction. Though hopefully, it will instead be the end of this crazy market.

Wanna buy a condo?

New Homes are Flying Off the Shelf

Yesterday I went new home shopping with clients. The atmosphere at the new homes has changed 100% since this time last year. A year ago, agents in the offices were just happy to see a human. Now, thanks to the new home buyer credit of $10K and the potential $8K for first time buyers, all standing inventory in Elk Grove is sold and the agents are getting their high self-esteem attitudes back -- good for them, it's about time.

Some new home builder prices are still ridiculously high and they shall remain unnamed; however, many others are offering incredible deals with prices competitive to resale homes in the same neighborhood -- mainly foreclosed homes of those who bought in 2005 when lots were first sold.

Shoppers interested in the new home tax credit better hurry. It's expected to run out by mid-July. Nearly 75% of the money allocated for the credit has already been applied for in just 13 weeks of it being available. However, with very little standing inventory left and it taking approximately 5-6 months to build a home, buyers may have already missed the boat on the $10K tax credit.

Escrows are Taking Forever

The days of the 30-day escrow are disappearing in my world. I just had an escrow go 62 days, the following a VA loan, went 52 days, and a current escrow is no where near closing at 30 days, which is this Friday. Loan docs anyone?

I used to take the 30-day escrow for granted. Now the rules for loans are changing on a daily basis making it very hard for even the most qualified buyers to close a loan in a timely manner. To top all this off, the very companies that make these loan are the same ones who have no tolerance for an escrow that goes over 30 days. Foreclosed homes owned by the banks start charging $100+ per day for an escrow going over its closing date. Short sale approvals will dock the Realtors' total commission a point if it goes over escrow. Yet, try asking these same banks to hurry up an escrow. Surely, you jest!

You think there would be a little empathy here. But no, banks are ruthless entities that don't care about Joe Home Buyer. You're just a FICO score to them. I'm pretty sure there's a special little Karmic Hell for the mean* ones when this is over.

Banks as a whole are mean; however, many loan officers are very, very nice and are not included in any of my lashing.

If the Price is Too Good, it's a Short Sale

On a weekly, sometimes daily, basis, I will have a client forward me an email listing of a beautiful home with an incredible, way below market value price. I know immediately that it's a short sale. The short sale speech is one I've gotten quite good at, but it still takes a few times of explaining it or actually living it, for it to sink in.

A way below market price on a short sale home is likely not approved by the bank. It's deceptive marketing just to get buyers in the door and offers to the bank. I'm not saying all agents of short sales do this. Many agents actually do price them competitively within market value. I understand where an agent is coming from in pricing a home low and I truly feel sympathetic for the sellers who are in the predicament of a short sale, but it's still unfair to deceive the public.

If a client is brave enough to make an offer on a short sale, then I have to sound like Ms. doom and gloom explaining in realistic terms that they will not hear back from the bank for at least two months. I have clients who have personally experienced this wait and now believe me. One couple who put on offer on a short sale last December, got impatient and are now living in a home they bought in March, and have still not heard back from the bank.

However, I'm now hearing from agents who are doing short sales that supposedly banks are being more cooperative now that their books are getting inundated with foreclosures. I hope that's true. I have another offer on a short sale for a client. We have been waiting since May 15 for an answer. This client really, really wants this house, so we are holding tight. His is the only offer on the house and there is a true hardship for the sellers, so I'm hopeful.

If a client wants to pursue a short sale, I will do everything I can to get them in contract with the bank. But I will do it only after discussing all the necessary pitfalls and patience needed as well as the potential opportunity to get a great deal on a home and save a seller from foreclosure. I will always hope for the latter.

The REO Adventure

REO (real estate owned) homes, also known as foreclosures, are an adventure in home showings like no other. When I'm touring or previewing homes that are REO I never know what I'm going to find. Sometimes it's an absolutely beautiful home and other times, well, not so much.

This past week I have toured over 20 REO properties and while I will have to say that agents of these homes are really starting to clean them up, there are still 20% or so that are quite the adventure. When opening the door of an REO, I'm always a little hesitant as to what I will find, what smells I'll encounter and how quickly I will feel the need to take a shower afterward.

For instance, one such property had a dead bird at the back window and ants in the process of having a very nice dinner. Another home, had a pungent unknown smell that made it hard to breathe. While another, had piles and piles of garbage all over the home. I practically ran out of that one. And lastly, another had no windows, flooring or inside walls. While I laughingly joked to my client about finding the lock box, I noticed the sign said "By Appointment Only."

Since the Sacramento area's REO properties are predicted to quadruple by the end of 2007, my adventures will continue...never a dull day in real estate!