Pacita's Quick Bytes of Real Estate: September 2009

A fellow REALTOR is trying to get her offer accepted on a property fo a client who is using an FHA loan. We discussed several things to help this first time buyer. As I went through a list, I thought that perhaps this is another opportunity to inform our clients that help is on the way!

First Time Home Buyer Tax Credit -

The qualified home buyer can receive credit UP TO 10% of the list price of the property (maximum of $8,000). However, this program expires Dece,ber 1, 2009, which means the property must close escrow by that time. There is a bill proposing an extension. So keep an eye on this development.

FHA

• How to use the tax credit toward downpayment - REALTOR.org article about potential first-time buyers have yet another reason to consider purchasing a home: the monetization of the tax credit. Here are four ways to get access to those funds for upfront costs.
  • NOTE: This is not available in all states. Go to National Council of State Housing Agencies website to see if this applies to your respective states, or click HERE
  • California Association of REALTORS has been informed that no lenders in California are offering the monetization of the tax credit. C.A.R. will continue to follow this issue and work to convince lenders to make these products available to borrowers.
• Why ask for an FHA Loan? May be a recourse for buyers with limited funds for a down payment. However, some bank-owned property listings have stated that they will not accept offers from buyers using FHA loans. Most of the time, the reasons are because the properties were so trashed or looted that these won't pass FHA guidelines
• Common Questions from First Time Home Buyers
• Local Homebuying programs by state
• Descriptions of Single Family Housing Programs
• Minimum Property Standards FHA borrowers and their agents need to know what properties can be approved following FHA's strict guidelines
• 203(K) Rehab Mortgage Insurance - some buyers may need another resource to rehabilitate a property. This is another resource to look into.

 CALHFA - A Mortgage Protection Insurance Program (California)

According to this program, "HomeOpeners is designed to make up to six monthly mortgage payments if the borrower becomes involuntarily unemployed, is receiving California Employment Development Department unemployment benefits, and is seeking re-employment. The borrower does not have to repay this money. Most conventional loans that are mortgage insured by CalHFA Mortgage Insurance Services automatically include HomeOpeners. This is offered as part of primary mortgage insurance at no additional cost to the borrower or lender."

Federal Tax Credits for Energy Efficiency - if the property needs a new furnace, looking into this program may entitle the homeowner to recoup up to 30% of the cost of materials.

 

 

 

 

 

 

RELATED POST: "Can I use the first time buyer tax credit as my down payment?"

Whether you're taking a new listing or getting ready to write an offer on a new short sale, it may help to set expectations on what you're up against.

ForeclosureRadar posted its take on the best (FIVE STARS) and the worst lenders to work with, according to Mortgage Resolutions Services who provides regular updates. And YOU can add your own rating and comments. Here's their Short Sale Report.

And here's an excerpt

HSBC  - Five Stars

Time to Acknowledge	Time to Approve	Commissions	Full Release Available	Comments
over 5 days	60+ days	5%	tough	Comments: 0

1sts - You can usually get someone to talk to. Experiences seem to be uneven - some o.k., many not so o.k. Not fast movers, budget over two months for an approval.

2nds - For some reason HSBC uses Century Credit to collect documents on junior liens - then Century Credit starts calling for file updates. Go figure. Watch out for the HSBC recovery department after a "charge off." Not very nice overall on 2nds. Frequently takes the position that if the homeowner doesn't give a pound of flesh they are going to punish them with a foreclosure.

 

HOW DO THEY STACK UP?

FIVE STARS

• Wells Fargo
• Wachovia
• First Horizon
• HSBC
• Litton
• Ocwen
• Option One
• Radian Mortgage Insuance
• Saxon
• Wilshire

FOUR STARS

• Citi Mortgage - 4 stars
• Specialized Loan Servicing

THREE STARS

• Bank of America - 3.4 stars
• Chase - 3.3 stars
• American Home Mortgage - 3 stars
• Washington Mutual - 3 stars
• First Franklin - 3 stars
• Countrywide - 3 stars
• Greenpoint - 3 stars
• Old Republic - 3 stars

TWO STARS (And the worst!)

• National City - 2.5
• Downey Savings - 2.3

 

A San Francisco agent referred a couple to me who are first time buyers looking to buy their first home in the east bay. Yesterday, I invited them to come into the office to discuss their wants and needs and their resources. I gave them a Home Buyer Guide that could be their "bible" as they traverse the way to home ownership.

 

Wish List: Naturally, they are looking for a 3 bedroom/2 bath home with a garage and a yard. And they'd like to buy in Alameda, east of San Francisco.

 

Financials:   They've saved $4,000. They are pre-approved for $310,000. They want to keep their mortgage payments to $1700 per month. And they're counting on getting $8,000 for the First Time Home Buyer Tax Credit.

And there's the first opportunity to educate: that the first time home buyer tax credit is 10% of purchase price, up to $8,000. And that this program expires Dec 1, 2009 so they need to close escrow by that time.

 Reality Check: We went through some scenarios if they use FHA or Conventional Loans.

Type of loan, down payment and interest rate	FHA Loan 3.5% down 5.5% interest	Conventional 5% down 5% interest
Sales Price	$235,000	$235,000
Down payment	$8,250	$11,750
Closing Costs	$8,490	$8,971
Cash needed for down payment and closing costs	$16,740	$20,721
P.I.T.I. (principal, interest, taxes and insurance	$1,724	$1,659

Upon seeing these comparisons, they are better informed about what they will need for a down payment and for closing costs. And so their first order of business is to get their finances in order.

Setting expectation: This was a good way to introduce them to other cities where we can find suitable homes within their budget range (Alameda isn't one of them).

We browsed through the MLS for properties in their budget range, and discussed several that appealed to them. They know now that their plan to buy a 3 BR/2 BA house with $4,000 down is, simply put, not realistic nor achievable. At least not where they want to live.

Readiness to buy: This morning, they informed me that after sleeping on it, they decided to "put the house hunting on hold until we can confirm our down payment."

 

Straight Talk: A bit of time spent educating the clients was a good way to get them focused on what they need to do. They may not be ready to buy now, but the straight talk left an impression. When they're ready to buy, they know whom to call.

It's been discussed, blogged, taught...and it doesn't hurt to revisit it again.

If it appears that the only available option to the seller is to sell the property as a short sale, it is extremely helpful to prepare him on what to expect: what is a short sale, how to qualify for a short sale, what is the process, timelines, how to prepare his property for sale, and forms he needs to complete.

The seller is already in distress and will not be in the best frame of mind. So it helps when a listing agent walks him through the various pieces of information we need to submit to the lenders, and why it is important to provide a complete short sale package.

 

What constitutes a short sale package?

• Letter of Authorization - signed by the seller that authorizes the lender to convey information to the lisitng agent or the agent's designate reagrding the loan
  
• Loan Information - signed by the seller that provides the name of the lender, contact numbers, address, loan number, balance of the loan, and if a notice of default was already filed. A separate form is required for each lender 
• Loan payment coupon --- one for each lender, showing most current mortgage statement or current balance
• Hardship letter -- the more detailed the better. Indicate the reason(s) for the default, when the hardship started
• Seller's personal financials -- this will take time, but this is necessary to provide background info on the seller's finances, current obligations, and ability to meet those obligations. Required are: 
  • Financial statement showing income and expenses  --- include everything that seller pays for (household expenses for food, utilities, car payments, insurance, child care if applicable, etc) and sources of income (salary, etc)
  • Two months' most recent statements for all bank accounts and brokerage accounts EXCEPT information on retirement accounts
  • Two months most recent pay stubs or other forms signifying sources of income
  • Two years most recent income tax returns

INCLUDE Property information

• Listing Agreement showing the proposed listing price
• CMA of recent sales in the neighborhood. If there's a chart showing the declining prices, include that witn your CMA to justify the price
• Summary of repairs. If inspections were done that can validate a lower price, such as pest report that shows a high $$ estimate for repairs, include the estimate
• Copy of the MLS posting to show how it appears on the MLS. if you have it posted on other sites, include the list and the links, and copies of the posts, provide those too, to show how aggressively you're marketing the property.
• Your own BPO (broker's price opinion) --- don't wait for a BPO done by someone else. Position yourself as the subject matter expert. It's your listing, after all. Submit your version. It will be good for comparison when the lenders order the BP

 

When to submit the short sale package?

Although most lenders say they won't open a file until there is an offer, lenders differ in their policies. I've submitted packages BEFORE receiving an offer, and received the name/number of someone I can follow up with. The seller can also call the lender(s) and provide the short sale package once contact is made.

 

What to include when an offer is received

Most lenders will want the best and highest offer, and may only want to see the top two offers. Be sure to include:

• Complete offer with all the necessary signatures
• Preapproval letter for the buyer
• Proof that the buyer can complete the transaction
• HUD statement showing buyer and seller estimates

 

Remember that most lenders will approve a short sale only as a last resort to foreclosure for one or more of the following reasons: 

• Borrower’s insolvency
  
• The proposed purchase price is more than the lender would be able to sell the property after foreclosing on the loan
• The value of the property has decreased to an amount that is below the loan balance due to local and national economic conditions
• The property was refinanced at a higher value based on an inflated property appraisal report
• The property is in such a physical condition that it is not financially feasible for the lender to put it into a marketable condition.

 

And throughout this process, do everything you can to market the property. The objective is to get the best possible offer to make it possible for the lender to accept the offer and approve the short sale. Keep the distressed property owner infomed. Brace him for a long wait.

Short Sale packages may be different from bank to bank, negotiator to negotiator. Having completed short sale seminars, listed and sold short sales, worked with two separate short sale negotiation companies, it appeared evident that

HARDSHIP conditions include, but are not limited to:

• Unemployment
• Reduced income
• Divorce
• Separation
• Medical bills
• Too much debt
• Death of spouse
• Mortgage payment increases
• Business failure
• Job relocation
• Illness
• Damage to property
• Military service
• Incarceration

BANK OF AMERICA --- difficult if not impossible

Bank of America is getting, or probably already has the reputation of being one of the slowest and most difficult banks to deal with when it comes to short sales. On Active Rain alone, there have been enough angst and anguish documented about this challenge. Realty Times says:

Bank of America had been among the least cooperative of all banks in agreeing to short sale payoff terms, according to industry critics....

Now the bank has adopted what spokesman Terry Francisco told Realty Times is "a less arbitrary, more rational" policy. "What we're saying (to short sale proposals) is -- give us an opportunity to participate and gain at least some of the savings" that will go to the first lien holder -- the primary lender on the property -- by avoiding the high expenses and losses of a foreclosure, according to Francisco...

But not all short sale market experts are convinced that's the case. Raffi Tal, CEO of Los Angeles-based I-Short Sale, Inc., one of the largest players in the field, says Bank of America's new policy "will still jeopardize" many short sales that involve its second liens.

 

In spite of constant follow ups that included an email to the CEO, we didn't get a response for two months.  But they can't wait a few days for us gather the new information they requested without threatening that they will close the file?

It is incredulous that after having submitted a package in June, they didn't open the file until September, and then they requeted new documentation since the seller's financials (bank statements, pay stubs) are now outdated information. Then the negotiator gives unreasonable deadlines. Two or three times, the negotiator writes or calls Friday morning, and then expects a response by 3 pm that same day or they will close the file.

My seller is in severe financial straits. She bought a condo for members of her family, who, by a series of extremely bad luck, died one after the other within the two years immediately after she bought it.

 

DEATH AND FUNERALS  --- not a hardship

We explained in a hardship letter that not only can't the seller rent out the condo (HOA rules), but she also had to pay for four funerals in a row.

To which the BOA negotiator named Delaney said "the funeral expense isn't a long term hardship and shouldn't be the reason why the customer can no longer afford to pay the mortgage." Geez! The funeral expenses which average to $6,000 each, or $24,000 total, were charged on a credit card that the seller  is still paying for.

 

Too stunned to think. Looking for compassion and understanding from this loan negotiator. No wonder the sculpture in front of the former Bank of America headquarters in San Francisco is known as the banker's heart --- it's black, cold and hard as stone!

 

If you're having a crummy day, you're going to end up smiling, rolling on the floor laughing after you see these babies dancing to Beyonce's Single Ladies. These babies have the rhythm and the moves!










At least these babies are the "real" thing. But the Evian babies are quite entertaining, too.




<br ENJOY!

Is bankruptcy the only way out?

If someone files for bankruptcy, are her assets protected? Or if the lenders foreclose, is she still subject to a judgment against her by the non-purchase money lien holder?

 

In 2006, a woman bought a condo for $450K for members of her property to use. It turned into a hellish experience shortly after.

Tragedy struck in the two years that she's owned it, when one by one, four members of the extended family died, leaving no one to maintain the condo.

She can't afford to keep the condo, and she can't rent it out because current condo rules prohibit non-owner occupancy (since the rental quota is full).

The one time she tried to rent it out, the Homeowners Association slapped her with hefty fines and legal fees.

Help! She came to me for help and I listed the property as a short sale 

There are two loans, both with Bank of America. BOA will agree to the short sale, but won't pay HOA fees and dues and fines.

After extensive marketing, we produced a buyer and a back-up buyer

 

Will HOA negotiate? 

HOA produced document signed by owner a year ago where the owner agreed to pay $9K to settle the fines/fees, out of escrow after she sells --- but she thought she could sell the condo and have money left to pay.

HOA not inclined to negotiate, and instead filed a notice to foreclose

HOA attorney says even if they don't foreclose, the HOA can go after owner's personal assets including her checking and saving accounts, garnish her wages, and file a lien against her current home (not the condo).

Condo buyer willing to pay some, but not all of the condo HOA fees, but HOA won't agree to reduced fees.

 

HOA will pursue condo owner --- whether it's the bank or a new buyer

 

Market values have plummeted and this condo is worth only about $315K, more than a $100K loss.

But since this is going to be a short sale, the seller won't have any money to pay HOA.

 

Is she better off filing for bankruptcy?  She says she will just let the banks and the HOA foreclose. I suggested that she see an attorney to represent her and protect her interests. She's not convinced that she will be subjected to any kind of judgment.

 

Straight from the NAR:  A call to action!

From Money Morning, Associate Editor bob Blandeburgo writes, "Home Sales Will Struggle to Rebound Without Tax Credit Extension "

 

If you haven't seen this yet, please watch it now. Tell your friends, your associates, your congressmen. Send this to as many people as you can!





Tell Congress: Extend and Expand the Homebuyer Tax Credit

We have all seen first-hand the positive impact the first-time homebuyer tax credit is having on the real estate market recovery. As the expiration date for this successful program looms, we ALL need to make sure that Congress hears from us about the positive impact this program has had and ask them to extend it, and expand it, so that we can continue to see our markets fully recover.

What's At Stake:
The $8,000 first-time homebuyer tax credit expires December 1st. The usefulness of the credit diminishes daily if the credit is not extended well before that date. A homebuyer is eligible for the tax credit only if the home is “purchased” before December 1st. Buyers have to find a house, complete a contract, satisfy any contingencies, secure financing and go to closing by November 30th.

Without Congressional action NOW, the market may freeze again – possibly as soon as October

Here's the link that you can share, embed in your blogs, email to your associates. GO!

http://takeaction.realtoractioncenter.com/campaign/hbtc/w6n58ek4yj3ne86b?

 

Last Sunday, I had just one appointment to show property to a family, and ended up with THREE NEW LEADS!

CHANCE MEETING #1   During my open houses, I always give a ton of information --- copies of the local magazine, local map, school district map, latest Realty Times newsletter, list of open houses that day, etc. So when I was previewing an open house, a woman and her husband stopped me to say they met me at my own open house weeks ago. After chatting for a while, I told them about a property that may meet their needs. Since it was vacant, we were able to look at it right away, and saw another house afterwards. YEAH!

CHANCE MEETING #2     Just as I opened the door to a vacant REO, a woman and her mother stopped and asked if they can see the house too. Normally, I'd lock the door behind me (but it was a warm day, and I wanted to let in fresh air). With my client's permission, I allowed them to come in for a peek. I gave them as much information as I could, handed them my card, and told them that if they want to see the house later, I will be  happy to show it to them.

Today, I received a call from the husband of the younger woman. His wife really liked the house, and wanted him to see it. After showing him the house, he wanted to know what his monthly payments would be. So I whipped out my iphone with Fidelity Agent, and lickety split, I gave him estimates if he bought a house for $750K, $725K and $700K. I followed up with an email later. He said he likes the quality of information I provided. YEAH!

CHANCE MEETING #3   As I was locking up a house I just showed, a couple came up and asked if they can see it too. I told them that I am finshing up with my clients but that I would be happy to show it to them at another time. I did give them some information about the house to pique their interest. Later that afternoon, they called me up to show them the house where I met them.

After meeting with them, and determining what they were looking for, I offered to show them other possibilities in the development. Later, I asked why they called me. They said they liked that I stopped long enough to give them information, and that "you were very sincere." I emailed them with additional information --- and they're deciding which house they would like to go after. YEAH!

What this tells me is that it helps to be nice and helpful, even for a very short time, and to hand out that business card and print copies of Realty Times as a handout during open houses.

 

RELATED POSTS

Fidelity Agent: A WOW tool for quick answers for real estate calculations --- for your computer and your PDA!

Don't know how to estimate PITI? Closing Costs? Copping out by deferring estimates to escrow officer?

"The bank won't accept electronic signatures."

Twice in the last week, REO agents called to say that the REO banks they're working with will not accept electronic signatures. The problem is, they heard from the asset manager in the morning, and expect that the offers will be revised and have "wet" signatures by close of that same day.

It is literally impossible for me to get wet signatures in time since both my clients work, and one of them is a mailman on his route. Even if I got hold of them it was a logistical impossibility to get them to sign the document and send this by 5 pm to the listing agent today.

The listing agent said they did not know the bank would not, or no longer accept electronic signatures. As a matter of fact, they had to scramble, too, sending emails and making phone calls to the agents who sent offers with electronic signatures.

They also scrambled to change the remarks on the listing that electronic signatures are not accepted by the specific lender.

What to do now that this is happening...

• Before posting a listing, REO agents should immediately ask their asset manager if they will accept electronic signatures
• REO agents should make sure this instruction is included in the MLS 
• And companies like DocuSign, AssureSign should work on getting the REO banks to accept or continue to accept these signatures.

Wet signatures in this technology age?

Hard to believe that we still need wet signatures when we can bank online, pay bills online, buy stuff online, sign digitally when paying with credit cards at retail stores, etc.

Sept. 20, 2009. A new listing came up: a foreclosure that took everyone by surprise.

It was not previously offered for sale as a short sale. It sold less than three years ago...and now it's bank-owned?

What happened to the people who lived there? Did they even know about financial resolutions to their distress? Why didn't they try to sell the house as a short sale to salvage their credit? Why didn't they call their realtor?

WHAT YOU DON'T KNOW CAN HURT YOU

A previous homeowner (who wasn't my client) called me for help. Unfortunately, by the time she did, her house was just days from being foreclosed. And when we called the bank, we were told it was too late. I asked her why she didn't try to get help sooner.

Her answers floored me: 

• She thought that because she was late on her payments, that it would automatically close.
• She didn't think about calling her previous realtor because she didn't know anything could be done.
• She "heard of" loan modification, but didn't know how it works
• She doesn't know what short sale means
• She talked to her friends....all their proposed "solutions" are things that "they heard of"
• She was too embarrassed to ask
• She didn't want people to know (but they found out anyway after she lost her house!)

ASK THE REAL ESTATE PROFESSIONALS

If you're sick, don't you see a doctor? If you're having legal troubles, don't you consult an attorney?

Well if your problems involve your real estate property, why not ask a real estate professional? We've run into all kinds of real estate dilemma....and we will have knowledge, experience and resources to help guide you towards the right course of action.

 

BE PROACTIVE

Because of my subscription to ForeclosureRadar.com, I saw one property belonging to one of my clients as having received a Notice of Default. I immediately called them up and talked with them about loan modification. I outlined the steps they needed to take. Also explained that if loan modification won't work, that we can try selling the house as a short sale so that they can at least protect their credit.

I gave them a matrix of the effects of a short sale versus a foreclosure. That alone was enough to convince them to take action. Fortunately, their lender (Wells Fargo) agreed to a loan modification. So they get to stay in their home, with reduced payments (albeit longer loan term period). THIS is a good outcome for a situation that could have gotten bad.

THERE IS HELP

There are people who can help and provide guidance. Start with www.HopeNow.com.

As REALTORs, w can also provide assistance and guidance. We sold you your home --- and we'll do our best to help you keep it.

 

We can help. Please, just ask.

 

Sept, 19, 2009. Unless the short sale property owner gets a buyer, the property will be foreclosed.

Selling short sales is challenging enough. Getting a buyer, and having that buyer stick around through the short sale process is a big IF.  Time is ticking....notice of default is filed...then notice of trustee sale. So why aren't there any buyers?

It happens so often that this is almost a public service announcement to caution sellers that if they're trying to sell a property as a short sale, that they may think twice about renting out the property.

Going through the MLS for REO properties, I was not surprised to see that many of these properties were ones that were offered as short sales. Reviewing the listings when they were short sales, a common denominator of failed short sales: TENANTS!

Yes, we know the sellers are short on funds and are trying to get some income from their distressed properties....but they should also understand that tenants are absolutely not motivated to move.

WHAT TENANTS DO TO DERAIL A SHORT SALE:

• Refuse to have a lock box installed at the property so agents can't show the property even when the tenants are not at home.
• Give all kinds of excuses why they can't show the property when the agent requests an appointment
• Refuse to take and return phone calls for appointments
• Do not maintain the property --- so it's a mess, it stinks
• Refuse to leave the property while potential buyers are there (some turn on the TV and radio even louder)
• Trash talk the property and make all kinds of statements about the "bad" condition, location, neighbors, etc. of the property
• Loot the place (they remove fixtures, appliances)
• Damage the place (holes in the wall, cigarette burns and heavy stains in the carpet)

And...once the tenants know that the property may be in pre-foreclosure, they stop paying rent anyway! So sellers, why put yourself through this mess? Aren't you stressed enough?

 

My partner is dance-challenged. Two left feet. Although he has rhythm (he can tap his feet to the music), he has a problem connecting the dots.

Today, I saw these dance instruction videos posted on MSNBC. Definitely worth bookmarking!

Step by step instruction on how to dance the Argentine tango, salsa, quick step...even Michael Jackson's Thriller and moon walk steps. So much fun!

So forget your troubles, c'mon get happy, and learn to dance!


Argentine Tango: Basic Step For The Leader

 

Here are some of the dance instruction videos you'll find here

Someone once told me, that when it comes to your job, "If you're not having fun, you're paying too high a price."

And one can relate passion with love, devotion, happiness.

PASSION

Friends and I talked about what drives people to succeed and why others struggle. Although we are all in different professions, throughout our discussion, we zeroed in on a critical ingredient: PASSION.

When one has passion about what he does, there is dedication.

When dedication reaps rewards, there is joy.

And joy generates a desire to do even better.

This pursuit leads to applying principles and disciplines to achieve even more.

An example of how passion led to success....

If you don't know the story of Chris Gardner as beautifully told in the movie The Pursuit of Happy-ness", then you should hurry and watch this inspiring movie. 

I guess one can apply passion in just about any situation. In courtship. In education. In your job. This is what distinguishes a profession from just a job.

In your own office, what distinguishes winners? 

• High energy
• Positive can-do attitude
• Eager to try something new
• Applies and continues to apply key learnings
• Always looks for ways to do things better, to accomplish goals sooner
• Self-motivated
• Desire to learn new disciplines by taking courses, getting more designations and certifications
• Searches out other positive influences
  
• Interacts with everyone to hone people skills
• Willingness to help others --- believes in paying it forward
• Looks for a solution and not just complains about a problem

ENTHUSIASM --- it shows!

One of my former clients came back into town, so we went for a leisurely brunch today. While I was telling her about what's new in Alameda since she left, she stopped me and said, "Wow, you really are sold on Alameda,"

Then she told me that when they were getting ready to sell their parents' house, she and her siblings scouted realtors by going to open houses. They interviewed several realtors, and chose me. She told me that what stood out is "how enthusiastic you are about what you do, and how you will market"....And that enthusiasm is still there  :)

 

 

 

 

Every now and then, we need to re-group and fill our tanks. Brian Buffini of Working by Referral always refers to his annual Mastermind events as a time to renew, refresh, rejuvenate our goal of balance in our five circles of life: personal, spiritual, family. financial and business.

And he always gives us wonderful guests who inspire.

This year, he urged us to dream the impossible dream. And amazingly, he pointed to someone we weren't expecting: Gomer Pyle!





And then he caps it off by bringing Wintley Phipps back. And we are reminded that we never walk alone. So uplifting! Each time I am having doubts and anxiety, I turn to these men who sing from their hearts.

And bless him, Brian keeps telling us his story of when he first came to the U.S., working three jobs, and then getting hit by a car. His injuries were so severe that he was out of work for months, and emerged nearly half a million dollars in medical bills. As he persevered, he never once forgot to acknowledge how wonderful this country is.

Being an immigrant myself, who chose to be an American citizen, this song has such deep meaning for me, and it never fails to remind me how great our country is. THIS is my inspiration. During this event, you can see how many people were so touched. I literally cried BUCKETS! God bless America!

Not once has any listing agent, seller, title company, lender refused to acknowledge or accept use of electronic signatures on offers that my clients have signed via DocuSign. The only time anyone insisted on a "wet" signature was on a one-page FHA document.

Until today.

Sunday. Submitted offer. Shortly after, the agent acknowledged receipt.

Tuesday. Deadline to submit offer. Agent emails me at 6:45 am saying that electronic signatures are not accepted. She didn't say by whom.

When I protested to tell her the Elecrtronic Signatures was signed into law in 2000, she said "it's legal but not law." 

ISSUES

1. Some sellers will not accept digital signatures. I have not run into this problem before, and I'm flabbergasted that any bank would refuse. After all, their form letters are all digitally signed!
2. Listing agent should disclose this critical information in the confidential remarks, or in the offer instructions. We can follow instructons --- but make sure it's there!

 PUBLIC LAW

Just to be clear, PUBLIC LAW NOl 106-229, the Electronic Signatures Act  was signed by President Clinton into law in June 2000.

WHY USE ELECTRONIC SIGNATURES?

• Current market conditions are spurring us to be fleet of foot, i.e., once an REO becomes available, and is in the preferred location, configuration and price range my clients want, we write an offer immediately.
• Offer deadlines. Time is almost always an issue. We've written offers on listings --- regular sales, short sales and REOs ---- and did not run into any problems.
• Schedule conflicts. Availability to meet is a challenge. But my clients and I can communicat via emails
• Email offers. Many agents prefer emails
• Go GREEN!

Getting electronic signatures is efficient, productive and innovative. This is a call to action for REO lenders to get with the times. GO DIGITAL! 

 

This is so entertaining. If you liked the Budweiser commercial of horses playing football, you'll surely like another kind of football/soccer: CARS!

My brother sent me a link to this video. And for the life of me, I didn't know why because I don't have a VW, I don't know what an Aygo is, and I am not exactly a sports fan.

I'm glad he did. This is fun to watch, and I couldn't resist sharing it if you haven't already seen it. So much fun! ENJOY!

Short sale agent didn't do what a short sale listing agent should do.

My buyers finally found a property they like. I begged the agent to present our offer to the seller even after the cut-off period. Yes, we know it's a short sale. Yes, we know the drill. And GREAT, the seller liked our offer the best and accepted it. So we were prepared to wait for the short sale approval.

When I requested an update, I didn't expect what the listing agent told me:

• The seller is out of town (turns out he is out of the country) and is not able to sign documents. The lenders are requesting more documents. Ever heard of DocuSign?
• Seller is working on getting the documents the short sale lender needs. Did you not have a checklist of what is required in order to submit a short sale package?
• The seller spoke with the lender....AHA! The seller, not you?
• The agent is waiting for the seller to give her the update. Shouldn't the agent be the one updating her seller on the progress of getting the short sale approval?

Turns out the agent has not done a short sale before. But doesn't her broker make sure she knows how?

With the near-tsunami of short sales, here's an agent who took a short sale listing, presented offers, and then left it to the seller to handle the short sale negotiation with the lender. She more or less stepped back, and waited....and waited...and waited.

At this point in time, with the seller already in distress, we can help in the most profound way by tackling the nitty-gritty details and action items to process a short sale.

Still shaking my head in disbelief. I offered to help her by sending her a copy of my short sale package, including a checklist of what the seller needs to provide, samples of hardship letters, blank letter of authorization, financial profit/loss statement, etc.

But the bottom line is, she should have been a lot more resourceful in understanding what it takes to process a short sale so that she can help her seller....and in turn, help us buyers and buyers agents.

Ai, ai, ai, ai!

Just discovered this site of REALTOR.org. It's a wonderful collection of quizzes. Besides being entertaining, it's also a great way to refresh our knowledge on various topics. So go ahead and bookmark this link, and have fun!

http://www.realtor.org/rmoquiz2.nsf/QuizHomePage?OpenForm

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Year in Review: 2006 Trivia

Checking various cities in the East Bay CA, to see market activity --- Alameda, Oakland, San Leandro, Hayward. And thus far, the cities I've looked into all have low inventories of homes for sale. And this partially explains why we're in multiple offers/over-bidding situations.

Here's what's happening in Hayward where we've seen 60-80 offers on bank-owned properties, and where cash is definitely king. Some buyers are actually consortiums of buyers who pooled their resources to buy properties.

Time and time again, we have found ourselves in multiple offer situations. It's almost unbelievable to conceive of this kind of buying frenzy. It's like the early 2000s all over again, albeit at lower prices.

Offer dates are set. Contingencies are being waived. Offers are for significantly over list price. Not only is preapproval letter required, but proof of funds and FICO scores are also mandated in many cases.

Buyers are stunned....they had expected a buyer's market. They expected prices to go even lower. They expected to be able to write offers for much less than the listed price.

Some local market analysts have said: the bottom of the market was three months ago. Take a close look at the chart showing the median sold price ---- the upward movement started in June 2009.

These charts tell quite story. Brace yourself for the next wave of foreclosures.