Pacita's Quick Bytes of Real Estate: March 2009

Not too long ago, I had an online exchange with a local blogger who asked: "Do you specialize in the sob story listings?"

Well, it looks like I have TWO new sob story listings.  There's a possibility of a third coming up. In the interest of brevity, I'll only mention this story.

SOB STORY #1

Yesterday, I received a call from a nurse who was ready to surrender to foreclosure and let the bank take over the condo that she bought for her seriously ill brother and sister. Sadly both siblings died shortly after moving in. Since her resources are limited and without additional income, she couldn't keep up with the payments. She tried to get her realtor (who sold her the condo) to help sell it as a short sale, but she said that realtor seemed disinterested. Even after she called him a few times after they talked about short sale, he didn't call her back.

She called me out of desperation, and I told her I would help. I first put her in touch with someone who does loan modifications, but it was determined that it won't work for her.

I explained to her what the ramifications are between short sale and foreclosure/bankruptcy, and she agreed to try the short sale route.

So I am in the midst of putting together the short sale package, preparing the condo for sale including doing some light staging. It's an uphill battle. No condo has sold in that complex for over a year, and the only other condo actively offered for sale is also a short sale.

It seemed that this nurse was breathing a sigh of relief that she found someone who would help.

"I WOULDN'T DO IT!"

When I mentioned to some folks what I'm doing to prepare these listings for sale, I was told that I'm doing too much for such challenging sales. One realtor even said he woudn't do it. So what does that make me?

He didn't say it in so many words, but he thought I was being sucked into doing things that won't make me any money.

But are we in this only for the money? God, I hope our humanity prevails!

Related blogs:

My heart truly bleeds for...

Another short sale as yet another client falls victim to recession

Our Oakland Association of Realtors sent a notice to our members about a rash of break-ins at some of the most prestigious areas where staging homes is normal when a home is listed for sale. What makes this very disturbing is how brazen the thieves are.

Here's the notice, and what the association recommends as precautionary measures.

Oakland Association has recently received several emails regarding a rash of break-ins in the Oakland Hills area.  In the past week several agents reported break-ins in staged vacant houses in Montclair and Piedmont although other break-ins have occurred throughout Oakland with REO's.  Some of the streets where these thefts occurred are Moraga, Mandana, Scenic, Monte and Estates.   Some lockboxes were removed by bolt cutters and thieves came back with keys attempting to steal contents of the house.  Both the grey and the blue iboxes were taken in this way.

It has been reported in the past that the staging is loaded into the garage and later removed.  In the past a white van was spotted in the neighborhood where the thefts occurred. In some instances a silver vehicle was seen by neighbors.

TAKE EXTRA PRECAUTIONS

• Use the alarm at all times on all properties that have them, but no alarm codes in the lockbox.  
• Have agents call you for the codes.  Although some agents may resort to not having lockboxes on listings, this would be difficult for REO listings. 
• If possible request appointments to show properties and find a less visible place to put the lockbox.
• With houses that are vacant and staged, let the neighbors know.  Visit them personally or drop a note in the mailbox with your card telling them that no one is expected to take away the furniture or fixtures except the stager. This way more people are looking out for your listing and the neighbors need to know for their own safety. 
• Put lights on a timer and a "Do not disturb Occupant" rider on the sign.
• Check out your listings on a regular basis.
• Be aware of who goes through your Sunday open houses. This is one way thieves know of staged vacant homes.  Keep purses and Supra Key card with you at all times. 
• Double check all doors and windows at the end of a open house.  This is one way thieves can enter a house after you have locked up.

Here's a real interesting read: go to this article titled "AIG, Congress, Geithner Target of Bonus Backlash" . More info and polls in the article. Here's a peek.

PRINCETON, NJ -- For the most part, the central players in the AIG bonus controversy have come out looking badly -- with one notable exception. A majority of Americans are dissatisfied with the way AIG management, Congress, and Treasury Secretary Geithner have handled the matter. Only President Obama gets a more positive than negative evaluation.

This is based on a new USA Today/Gallup poll, conducted March 21-22, after a week when the AIG bonuses dominated the news headlines.

Beautiful sunny day in Alameda...and critters are out to play.

Our tenant's newly rescued dog, a fuzzy little thing named Aidan, always comes up the back steps, whining, looking for own adopted German Shepherd named Harmony to go out and play with him.

Harmony weighs around 90 lbs, and I'd be surprised is Aidan is even close to 20 lbs. But these two get along very well. Aidan, younger, quicker and more spry, likes to have Harmony chase him. They go round and round. And it's so much fun to watch. Doing that a few times in the back yard, they get (or at least Harmony) winded.

So they sort of crash together and chill for a while. One time that they did, I whipped out my iPhone and took this picture.

Not bad for an iPhone!

Yesterday, I showed a truly adorable cottage to my client.

The seller is not (yet) underwater on her mortgage, but could be if she receives an offer less than what she owes at which point, it could be a short sale. The property's current market value isn't worth what the seller is asking for. It's already gone through two agents, has had the price adjusted more than once. And it's still over-priced.

I talked with the listing agent to get the full story.

• And she told me the seller is applying for a loan modification, and that she should get an answer by April.
• So...what if her loan is modified? The agent said the seller will keep the house.
• But what if there's an offer and it's accepted before the seller gets an answer to her loan modification aplication? The agent said it will have to be at the listed price for the seller to accept the offer.
• What if the buyer spends the money for the appraisal, after which the modification is approved? The seller will back out of the agreement (and the buyer is out of luck and won't recover the cost of the appraisal unless the seller reimburses the buyer)
• But what if there isn't an offer forthcoming? Will they reduce the price then? If they do, it will become a short sale.

Seems to me they should first try to get an answer to the loan modification. And if it's turned down, then that's the time they should list the property for sale.

I think the fact that the seller is applying for loan modification while listing her house for sale is material fact and must be disclosed up front. It may turn off some buyers and agents, but this is critically important information that will determine whether a buyer would want to write an offer.

The only thing agent shares in the confidential remarks is that it's not an REO, not a short sale, and to call the agent for more info.

We in the picturesque and lovely island of Alameda were probably lulled into thinking we are not going to be as adversely affected by the economic downturn. After all, this is a desirable place to live. It may not be in the same league as posh neighborhoods like Piedmont, but it certainly has its fans among people looking for a good place to live in the East Bay and within a fairly short commute to San Francisco.

FOR SALE

As of this writing, Alameda has 143 residential properties, actively listed as for sale on our local MLS. Of these, 21.6% are distressed sales. Last year, it was at 11%. And the year ago was less than that.

• 24 are short sales
• 8 are bank owned

....AND NOW, FOR THE REST OF THE STORY...

But upon checking with ForeclosureRadar.com ---check out the link on our company website at www.GLRealtor.com, the picture is surprisingly sad. We are soon going to see a few more short sales and bank-owned listings.

Since November, 2008:

• 25 are scheduled for auction
• 23 are bank-owned
• 58 are at pre-foreclosure stage (Notice of Default)
• $232,784 is the lowest estimated value property (condo scheduled for auction)
• $1,252,054 is the highest (detached single family home close to downtown, also scheduled for auction)

Fasten your seat belts, folks. It's going to be a long and bumpy ride.

>SIGH<

 

 

 

 

 

Let's see...

AIG top executives claim it's a matter of contractual law and so they should get the bonuses because these were negotiated before the bailout. We're supposed to honor those contracts because we're a government of laws.

What a convenient thing for these crooks to say! Don't the American taxpayers now have 80% stake in this organization? Then we should be able to have a say so in such matters.

Here's a simple solution. Don't give it to them. And if they complain, tell them, SUE ME! Then see them try to explain why they deserve the bonuses.

Who are these incompetent managers? Why should we want to keep them? Why should we want to give them a bonus? They're the people who maneuvered this company on the brink of collapse, and nearly toppled our economy, and the international markets as well. Fire them! Better yet, put them in jail for dereliction of duty, for the business version of malfeasance, for mishandling of funds.

The current CEO was placed at AIG to put this company together. He should develop some balls to go against the old-time AIG managers who think they deserve the levels of executive compensation.

I am mad as hell and I won't take it anymore!

 

Related posts:

Let's put Madoff, AIG criminals, corrupt politicians in Sheriff Joe's Tent City in Arizona

AIG's $165 MILLION bonus to incompetent managers CAN'T BE STOPPED? Are they freaking serious? 

"If you don't like it, don't come back" says Sheriff Joe Arpaio who was just re-elected IN 2008.

”And quit your complaining. Our military men and women fighting for you in Iraq and Afghanistan live in tents hotter than these….so shut your mouths.”

Here are the conditions these criminals would face:

* TENTS where they will stay during their incarceration. No walls. No jail bars.
* Pink underwear, pink handcuffs
* Cable TV (when they get it) only shows the Disney Channel and the Weather Channel
* Chain gang (hey, a good way to build teamwork, and be seen doing good work when they're out performing community service)
* No cigarettes, no porn magazine
* Patriotic songs begin the day and end the night: God Bless America, and the National Anthem
*And a real kick in the pants, Newt Gingrich's lectures are piped in the tents

There's no over-crowding in Sheriff Joe's jail. He merely puts up another tent.

After fuming about AIG awarding $165 Million in bonuses to their managers after the $173 Billion bailout, I went on line looking for things to amuse me, to make me laugh, to fascinate me.

And I remembered this beautiful video of women in art. The fascinating thing about this is the beautiful way the art morphs.

It's just beautiful!

This boggles the mind.

AIG's CEO Edward Liddy defends the "need" to hand out MILLIONS of dollars to their managers because it is critically important to keep top people on board...

...and that "If we don't do that, we will not be able to pay back the federal government."

WHAT?

This is the same AIG who receivd a $173 BILLION taxpayer bailout?

...and they're now paying $165 MILLION in employee bonuses?

Bonus for what? For driving the company to the ground. For performing so dismally that the federal government has to bail them out?

And they want to keep the same incompetents? And worse, to reward them for such incompetence?

Does this make sense to anyone?

AND NO ONE CAN STOP THIS?

From the Huffington Post, Larry Summers, chairman of the White house National Economic Council says, "We are a country of law. there are contracts. The government cannot just abrogate contracts. Every LEGAL step possible to limit those bonuses is being taken by Secretary Geithner and by the Federal Reserve System."

And in the news tonight, in spite of the outrage, the news reports say that there's nothing anyone can do because such bonuses are part of their contracts, and that contractual law applies?

Is there anything anyone can do besides express our outrage. demand the managers renounce the bonuses, and change our insurance company?

STOP the $165M bonuses. If the AIG managers don't like it, LET THEM SUE!

Here is a woman burning with desire to buy a house. For years, she worked towards saving money, cleaning up her credit rating, all the while pining for a house.

Because of the language barrier, she has to rely on both her son and her daughter to help her in the process. So they go to the bank. She gets preapproved. She's ready.

Step by step

• The first time that we met, I walked them through the process. I even gave them a Home Buyer's Guide and asked that they read it so that they know what to expect.
• I asked them to get prequalified. They said they already did, and handed me their preapproval letter.
• I call the lender, he confirms they can afford to buy a house.
• Then I gave them ideas on where we can look for homes in their budget.
• We find her a house, a really nice bank-owned, in San Leandro, CA
• We write a contract. Every step of the way, I explain the terms, the conditions, the timelines, the rationale. They seemed to understand.
• I give them a printout of the estimated costs and the monthly payments. They said okay.
• We submit an offer.
• We get a verbal acceptance, pending some changes on the terms and their acknowledgement. I immediately call them to come back to the office so that I can explain the next step.

I truly wish I delved deeper and made sure everyone was clear on what to expect.

Does this buyer really understand?

So I call...and then I call...and I call again to both mother and daughter. Finally, after two days of repeated calls, the mother calls me back, wailing!

...She says she thought she should have  gone through government financing (she must mean FHA). Before writing the offer, I asked them what type of financing they wanted to do. They said conventional. Guess they didn't really know the difference, or their lender didn't offer that option.

....she didn't really want to go to the bank (she calls "private funding.") Guess she didn't understand that the bank could also do FHA loans.

....she didn't know she needed money for closing costs. Both the lender and I explained that there would be closing costs. I even printed a summary of the estimated closing costs, and reviewed each item. Guess that also went over her head.

...she only had so much for a downpayment. Before looking at houses and before writing an offer, I asked her if she had enough for the downpayment and the closing costs. Both she and her children said yes.

...she thought she had 17 days to think about it.  Before we wrote the offer, I tried to explain the loan approval/appraisal and buyer investigation process, and that they will need to pay for the appraisal and the inspections)

...she doesn't seem to sense the urgency to respond. I had left messages for them that I needed to see them so that I can walk them through the process again, and each time, I said it is urgent that we have a face-to-face meeting.

Changing the terms and conditions

I will ask the mortgage consultant if they qualify for an FHA loan. That would mean changing the terms of the contract --- amount of downpayment, and length of escrow. If the seller (this is bank-owned) agrees, then we can move forward.

Otherwise, it's back to square one. And I hope that the next one sticks.

 

Last night, Gary and I "graduated" from our dance class taught by The Realtors in Motion, Active Rainers and competitive ballroom dancers from San Leandro CA, Alexia and Antonio Cardenas who were gracious enough to invite us to join their class.

Now, when Gary and I attend some dance parties, maybe we won't end up being such wallflowers. I truly expect to be dancing in my late, late, late years.

Just to give you an idea of what dancing can do to and for you...take a look at this 80 plus years old grandma dancing an energetic salsa! Just keep watching. It gets really fast and furious later. It's almost unbelievable.





Now...doesn't that make you want to get up from that couch and start dancing?

Tonight, on my way home, I decided to stop by the Alameda Wine Company to pick up a bottle of 'wine to drop off at my clients' home where they just moved in last weekend.

Yes, I know...it was unannounced, but I was comfortable enough to stop by with what Brian Buffini calls a "pop by".

HUGS!

Am I glad I did. Tony opened the door...and he was genuinely delighted to see me. Hugs! Carla who just finished her class (she's teaching her students how to speak Italian) came out. More hugs.

What was intended to be a very short visit, turned into an hour, as we shared a bottle of wine, some cheese and truffles, and many stories. They told me over and over again how happy they are to be in their home.

THEIR CASTLE

Carla hooked up with her family in Italy via Skype, and using her computer's web cam, she took them on  tour of their new home. Every one was delighted at how nice the home looks (it's beautifully updated), and there was hardly anything to repair.

This is not a large home ---- but to Tony and Carla, it's their castle in this beautiful city they love so much. 

WHEN THEY'RE HAPPY, I'M HAPPY

I left their place feeling like I'm on Cloud 9. Wow! Am I glad I stopped by. Their happiness is infectious. And this is just the lift I needed after a very long day!

Note to self: Do this again!

 

My heart truly bleeds for people who

 

 

....truly believed and hoped they can achieve the American dream of home ownership

....reached out for the brass ring

....saved and saved and saved to put a decent down payment on a home

....loved living in a home they call their own

....paid their taxes.

....kept up with their monthly payments

....supported the local economy by buying goods and services relating to maintenance and enhancement of their home and lifestyle

....when the economy started going south, did what they could to stay afloat as long as they could keep their home.

And when the job market dealt them a powerful blow, they lost their jobs.  And in spite of their efforts to be responsible homeowners and still feed their families, they lost their homes.

How could I not grieve with them?

Not all people who are losing their homes are greedy flippers, unwise buyers, poor speculators. or gamers. Those who were responsible homeowners and members of the community deserve our sympathy, not our scorn.

How many of us have not gone through life's upheavals? Ever been laid off from a job? Ever lose an important client? Ever gotten seriously ill where you can't work?

In Time Magazine's issue last week, there's a story on House of Cards: The Faces Behind Foreclosures.

Come on people...have a heart!

Local market update: As I wrote this, there are 131 homes actively offered for sale in my island city of Alameda, CA. Of these, 22 are short sales, and 7 are bank-owned. All in all, 29 homes or 22% of total. And more are coming up.

Today, I spent the afternoon taking my clients to see several REO listings, and compare them to short sale and regular listings.

Using the polygon feature of our MLS,we delineated areas where my clients like, and we chose 16 properties to look at.

Since this is my clients' first foray into viewing REOs, they were surprised at how different the agents took care of, and promoted their listings.

THE BAD

• No pictures
• Only one picture
• Fuzzy pictures
• Trash/garbage cans in front of the property
• Keys that don't work --- or missing keys, or wrong combination
• No lights
• No water --- and when people use the bathrooms without having water to flush the toilets, watch out!
• Incomplete descriptions, or no descriptions at all in the public or confidential remarks
• No indication on whether the locks are Supra or combination locks
• Trashed places with no attempt to clean them out

THE INCONVENIENT

• If combination lockbox, the agents require email requests to get the combination codes
• And when we call or email, we don't get the answers promptly. Sometimes, we don't even hear back from them at all!

THE GOOD

• Multiple and CLEAR pictures on the MLS
• Explicit instructions on where/when/how to submit offers
• Detailed descriptions on public and confidential remarks
• Thoroughly cleaned properties --- even if the previous owners have vandalized the property or removed the appliances, the properties manage to look neat and/or clean
• Info on what type of lock is at the property
• Easy to open locks,
• Instructions to call a dedicated number that provide an update on the status of the property (accepted offer? Pending? Still available?)
• Prompt responses to calls, voicemails, emails

What happened to REO agent's clean up crew?

I was under the impression that one of the reasons REO agents are selected is because they have teams of people that include those who replace locks, clean out the properties and make them halfway presentable.

Today, we got a taste of the good, the bad and the ugly. It was a rare breath of fresh air when we saw a group of people actually working to clean out a place (they were shampooing the carpet, washing down walls, cutting the yard, hauling away junk). They even told us to use booties as we entered the place.

The agent's description and pictures were so good that there was a constant number of agents and their buyers coming and going to that property. There is a published offer date --- and you can bet there will be several offers.

PERCEPTION IS REALITY!

We know enough to lower our expectations when it comes to REOs. The buyers are inclined to offer much less on properties that look, but may not really need, as much work as they seem. On the other hand, a property that is clean may not only attract more attention, but may also bring multiple AND higher offers.

Related posts

REO Agents: PLEASE give us buyers' agents some respect! (Rant)

To the REO Agents: What's with the attitude?

Two appraisals, same REO property. Significant difference!

Include material info in the MLS

My company just partnered with www.ForeclosureRadar.com where we feature a link to give our website guests a way to find pre and foreclosures in our areas.

See http://www.glrealtor.com/foreclosures/ 

Find Foreclosures Fast on our ForeclosureRadar

Our ForeclosureRadar tool empowers you to search for Bank Owned, Auction or Foreclosure properties. 

Some of you may already know that you can try this free for 7 days by going to http://www.ForeclosureRadar.com/CAR/ (no promo code needed) to find information on pre-foreclosure, auctions, and bank-owned.

OMG! I have clients and friends on that list!

So tonight I logged on and checked to see what is going on in my city, and was surprised to see one of my clients on the list as having received a Notice of Default.

Let me try to help

I was so shocked that I immediately contacted them to let me try to  help them by providing guidance on what options they can explore and where they can go for professional advice in their situation.

• Forbearance?
• Reinstatement?
• Repayment plan?
• Loan Modification?
• And if none of that works....
• Short sale?
• Deed in lieu of foreclosure?
• Maybe even bankruptcy (they will need to see a bankruptcy attorney)

They're going to evict an 80-year old widow!

There is another name on the list --- my mother's friend, a widow in her 80's who had refinanced her home of 40 years to buy a four-plex and a duplex. Although I was not part of these transactions, I knew she was in trouble when I asked her why her house is listed as a short sale. She didn't know nor does she remember signing a short sale listing agreement (she now has Alzheimer's).

Non-payment, especially at an incredibly high mortgage of 8.5% (!!!!!), has led to foreclosure at an auction later this month.

A helping hand, tears, and prayers

So in one case, I may still be able to help...and on the other, all I can offer are prayers for her well-being.

 

A friend sent me this. Read and weep!

THE TAX POEM  
At first I thought this was funny...then I realized the
awful truth of it. Be sure to read all the way to the end.

Tax his land,
Tax his bed,
Tax the table At which he's fed.

Tax his tractor,
Tax his mule,
Teach him taxes Are the rule.

Tax his work,
Tax his pay,
He works for peanuts Anyway!

Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.
Tax his ties,
Tax his shirt,
Tax his work,
Tax his dirt.

Tax his tobacco,
Tax his drink,
Tax him if he
Tries to think.

Tax his cigars,
Tax his beers,
If he cries
Tax his tears.

Tax his car,
Tax his gas,
Find other ways
To tax his ass.

Tax all he has
Th en let him know
That you won't be done
Till he has no dough.

When he screams and hollers;
Then tax him some more,
Tax him till He's good and sore.

Then tax his coffin,
Tax his grave,
Tax the sod in
Which he's laid.

Put these words
Upon his tomb,
'Taxes drove me
to my doom...'

When he's gone,
Do not relax,
Its time to apply
The inheritance tax.

Accounts Receivable Tax
Building Permit Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (currently 44.75 cents per gallon)
Gross Receipts Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate Tax
Service Charge T ax
Social Security Tax
Road Usage Tax
Sales Tax
Recreational Vehicle Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Non-recurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax

STILL THINK THIS IS FUNNY?

Not one of these taxes existed 100 years ago, and our
nation was the most prosperous in the world.

We had absolutely no national debt, had the largest
middleclass in the world, and Mom stayed home to raise the kids..

What in the hell happened?  Can you spell 'politicians?'

And I still have to 'press 1' for English!?

I hope this goes around THE USA at least 100 times!!!  YOU
can help it get there!!!

GO AHEAD - - - BE AN AMERICAN!!!

A woman friend (natch) sent me this, and I just have to share.

Quote of the day:

"Whatever you give a woman, she will make GREATER.

If you give her sperm, she'll give you a baby.

If you give her a house, she'll give you a home.

If you give her groceries, she'll give you a meal.

If you give her a smile, she'll give you her heart.

She multiplies and enlarges what is given to her.

So, if you give her any crap, be ready to receive a ton of S__T!