Short Sale Resource for Consumers

With all the confusion surrounding short sales, here is a great resource sponsored by the California Association of Realtors:

http://www.shortsalescalifornia.org/

Buyers Walking on a Short Sale -- Back on the Market Previously Approved

Chances are if you're a buyer, you've put at least one offer on a short sale. It's not a fun offer. The process is long, tedious and seems like you will never have an answer. Except when you do. We just had the buyer walk after 90 days of waiting for a bank to give an approval. The buyers, to their credit, stuck in there nearly to the bitter end, but couldn't wait any longer due to their circumstances. Also, to their credit, they weren't making offers on other homes, then ended up renting.

Because of that, this great house at 9713 Tundra Swan Circle in Elk Grove's Stonelake neighborhood is now back on the market, having been approved at the list price of $235K just yesterday. Take a look. We -- fingers cross -- hope the next approval will be quicker. Banks are getting faster, more efficient, and more willing to help distressed sellers. An offer on a short sale is not as bad as it once was, especially for FHA buyers.

http://www.postlets.com/res/3385783

FHA Buyers Forget the Tax Credit, Go for this Short Sale

I know all you FHA buyers out there are ignoring the short sales so that you can get the tax credit. However, I also know you are getting beat out by multiple offers, and those doing conventional loans or paying cash. Forget the credit and wait it out for a fabulous house. Here's your opportunity to own a home in the established neighborhood of Foulks Ranch in Elk Grove. A neighborhood of award winning schools, a greenbelt, multiple parks and amenities galore.

This home's layout cannot be beat -- it's open, airy and just waiting for your touches. It has 4 bedrooms, 3 full baths and 2291 square feet, with one bedroom/bathroom downstairs. Also, recently upgraded with a roof, air conditioner, heater, water heater and kitchen appliances.

Don't miss this house:
http://www.postlets.com/res/3551719

New Listing 5430 Jacinto Ave, Sacramento

New short sale listing -- ONE LOAN -- the best kind of short sale to put an offer in on.

Well maintained home in desirable neighborhood near the greenbelt, trails and schools. Home features lots of natural light, spacious and open living areas, vaulted ceilings, kitchen island, backyard patio cover and much more. Home has 3 bedrooms, 2.5 baths and 1435 square feet.

For details and photos, click link below:
http://www.postlets.com/res/3518482

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.

Top Ten REO Agents in Sac Region

Today's front page of the Bee lists the Top Ten REO Agents in the Sacramento Region. With the exception of a couple of these agents, I HATE, I repeat HATE showing these agents' listings. It is near impossible to get someone on their "Team" to call you back. It's hard to even find out if your offer was ever received, until 5 days later when you get an email that says, "multiple offers, highest and best requested." At which point you give your highest and best, only to be beat out by the other 42 cash offers. Poor first-time buyers with FHA loans are delegated to short sales.

Okay, now I'm being a bit sarcastic and melodramatic, but all you non-REO agents representing buyers know exactly what I'm talking about. And all buyers, have heard all this repeatedly with each offer you put in by your Realtor.

Someday, the banks will no longer control every aspect of our market except to make loans. That will be a sweet day.

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.