Mother & Daughter Blog: May 2008

As some of you know, I have contributed much to the Short Sale search engine.  Then I went off and took up a "new trade".... REOs. 

REOs are very interesting in that they seem to take up more of your time, they have a lot of little "tasks" that must be done on almost a 2 to 3 times a week basis and they require much marketing (of which is the part of the business I love).  Then there's the frustration of jumping to the Asset Manager's music -- and its funny because you don't hear no music playing - most of the time.

Then after what should be "Celebration Time" --- you are attracted several or in the REOs language "Multiple" offers, you think surely a decision will be made.  I mean come on, you can see which offer is best... but no! Now the Asset Manager want to play the "HIGHEST AND BEST" game.  What is that you ask... the answer is, it is really the BEST and Highest segment. 

So even then you can tell the Asset Manager which of the buyers have already stated that was their highest and best, you have to go right back and ask them to counter to the Higest and Best and they look at you real funny... that's if you see them face to face.  Otherwise you get a call from the buyer's agent and he or she will simply say "that was their highest and best" and they are not going any higher.  Or some will slam out at you "the bank is playing games and we don't want to play". 

Why do REOs? Especially on the listing side? the money is less believe me.  I answer this by saying why not if you get the opportunity to do so. 

Here's my thought: REOs are in the lead right now.  I even heard that BANKS sold 1000 homes a day in April.  Now that's big news.  But as the circle comes back around, I believe that short sales are going to get back in the news and become top heavy soon. It may take a few months but soon the lenders are going to learn to appreciate approving a short sale. 

As soon as the banks realize that they are now in the real estate business and we all know that banks don't like that!

But as we all know Money talks.... and what  walks?

• Need a Short Sale Specialist? CLICK
• Want to purchase a REO property? Want to know what properties I have to sell? CLICK
• Need information on the foreclosure process? Ask me for a FREE Pre-Foreclosure Guide CLICK
• For a FREE MARKET EVALUATION of your home CLICK

Check out: Real Estate Terms/Definitions. And take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties. Our consultations are free. Our aggressive marketing plan includes on-line listing advertising. If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin County CA - includes Stockton, Manteca, Tracy, Lathrop) plus Stanislaus County CA - includes Modesto, Salida, Riverbank) & the East Bay (Alameda County CA - includes Hayward, Fremont, Newark, Union City & Oakland) and surrounding areas give us a call. If you would like a FREE Home Seller or Home Buyer Handbook, please call us at 866-750-8282 or email at US.

WEBSITE: http://www.motheranddaughterrealty.com

I was asked this question by a interested buyer.  Was this a drug house or something? This was after spotting yellow stains on the walls, metal fixtures that look rusted, strangely colored stains all over the hosue, some chemicals like storage in the garage, and a very strange ammonia smell throughout the house.  I honestly did not know the answer to that question. 

But I did wonder to myself if this is a valid question that deserves an answer.  I asked myself if I were purchasing this house wouldn't I want to know that?  Then I asked myself but... how would I know that answer or how would I find out if this was a drug house before foreclosure?

Meth poses a serious health risk, for anyone who is exposed to it. Meth labs are extremely dangerous environments for children. Many chemicals used to make meth and other illegal drugs are highly toxic. Some can be explosive or catch on fire easily. It does not have to be "active" to cause health problems.  So if you are moving into a home that you are suspicious of being a drug house (any drug is dangerous) but especially a meth lab... you should reconsider purchasing it --especially if you have children or want to have children.

If you are concerned about purchasing a possible meth lab property ---Here are some of the ways will help in figuring out if the house you are interested in purchasing is a produce of a meth foreclosure:

• Check police records is the most common - check the local police website for known meth labs in area
• Ask neighbors about the neighborhood and get around to asking about the property specific
• Looking around the house for signs?
• Asking the home inspector what (he or she) thought about it?
• You can have it tested by an Industrial Hygenist.

BUYERS NOTE:  As the Buyer you have the right to cancel your contract if the property tests positive for Meth. If you decide to go ahead an purchase the property, keep the costs in mind. The initial testing costs approx $1,500, the following clean up can range from $15,000 for a 1-Bedroom Home to above $45,000 for a 3-Bedroom Home.

 This is one main reason for getting an inspection -- even on the house that appears to be "perfect" for you.  Of course with REOs you probably will not have the full 17 standard California days to inspect, so you will have to move fast -- if not, do it before the offer is submitted.  This is where it gets sticky because there are no guarantees that you will get your offer accepted in this multiple offer (Highest and Best) world that we are in right now -- at least in the San Joaquin Central Valley area (Stockton - especially).

• Need a Short Sale Specialist?  CLICK
• Want to purchase a REO property? Want to know what properties I have to sell? CLICK
• Need information on the foreclosure process? Ask me for a FREE Pre-Foreclosure Guide CLICK 
• For a FREE MARKET EVALUATION of your home   CLICK

Check out: Real Estate Terms/Definitions.  And take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties.  Our consultations are free.  Our aggressive marketing plan includes on-line listing advertising.  If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin County CA - includes Stockton, Manteca, Tracy, Lathrop) plus Stanislaus County CA - includes Modesto, Salida, Riverbank) & the East Bay (Alameda County CA - includes Hayward, Fremont, Newark, Union City & Oakland) and surrounding areas give us a call.  If you would like a FREE Home Seller or Home Buyer Handbook, please call us at 866-750-8282 or email at US.

WEBSITE: http://www.motheranddaughterrealty.com

All mothers are special is a true statement.  All mothers should be shown appreciation just for wearing that name - Mother.  A mother is so many things at all times.  The job is never done and in some cases not matter what you do it is never done right to some.  But regardless, Mothers are special.  The pain that is associated with birth is no joke.  The pain that is associated with worry is no joke.  The Mothers that are cab drivers, fortune tellers and heart givers deserve a day of recognition and a special shout out.

The day is just about up and if you are a Mother and was not told that you are SPECIAL -- let me be the one to tell you.  Wearing the name Mother is special.  Whether you are birth giving mother or a care giver or a grandmother that is now a Mother or an auntie that is now a Mother or a Dad that is both a Mother and Dad.  Here's my shout, from one Mother to all others....

HAPPY MOTHERS DAY TO YOU ALL

And here a rose for you!

OK, you're an agent.  Why call the REO agent these questions?

1. How many offers are there on the table? 
2. Why ask what is the highest and best offer on the table?
3. Why ask is the bank flexible?
4. Is the bank easy to deal with?
5. Who is the bank?
6. What's wrong with the property? ... remember the bank does not know about

These are the most common questions that every agent call and ask.  These questions are not easy to answer without stepping over the boundaries of what we are allowed to answer in the state of California and from our seller.  So please don't ask them.  Just take your buyer to the property and submit their offers.  

It does not matter in the REO business:

How many offers are out there?  They are looking for the highest and best offer.  If you suggest to your buyers to make the highest and best offer, they will have a better chance at getting the property -- rather than low balling and trying to get a bargain for less.

What is the highest and best offer on the table?  We cannot tell you what the highest and best offer is on table, but we can tell you to make your highest and best offer.

Is the bank flexible?  We cannot tell you if the bank is flexible because we have no clue what the bank is thinking or what sealing is high enough for them.  If we say we know, it is only a guess.

Is the bank easy to deal with? Same goes with the question is the bank easy to deal with... sometimes, some days yes and some times and days not.  It is only a guess, if we answer this one too.

Who is the bank?  What difference does it make what bank it is?  Unless your buyer want to go to that bank and get a loan in an effort to get noticed on the offer... the bank doesn't matter. Does it?

Whats wrong with the property??? We only know what we see, we do not know all about the property because remember the bank did not live in it and is not required to figure out what is going on with the property and disclose it.  So why put an agent in a situation of having to figure out what to tell you?

REOs can be bargain, the process can be easy but you will need to do your homework on what flies and what does not fly in a REO transaction.

• Need a Short Sale Specialist?  CLICK
• Want to purchase a REO property? Want to know what properties I have to sell? CLICK
• Need information on the foreclosure process? Ask me for a FREE Pre-Foreclosure Guide CLICK 
• For a FREE MARKET EVALUATION of your home   CLICK

Check out: Real Estate Terms/Definitions.  And take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties.  Our consultations are free.  Our aggressive marketing plan includes on-line listing advertising.  If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin County CA - includes Stockton, Manteca, Tracy, Lathrop) plus Stanislaus County CA - includes Modesto, Salida, Riverbank) & the East Bay (Alameda County CA - includes Hayward, Fremont, Newark, Union City & Oakland) and surrounding areas give us a call.  If you would like a FREE Home Seller or Home Buyer Handbook, please call us at 866-750-8282 or email at US.

Website: http://www.motheranddaughterrealty.com

If you made an offer that was rejected in the first round, within a day! Yet you felt it was a good offer.  You are asking what did you do wrong.  The house is not worth very much more in your opinion.  So you feel down and out that you did not get to purchase this home.  DON'T GIVE UP!!!

Because lets just say for the sake of this post that you drive by the property it is still for sale-- You can try again! There is no rule that says you cannot resubmit.  This time I suggest you do some research on how to do a successful offer or at least enough to get the attention of the bank.  Here are some suggestions that I have ran up on that might be of help to you.

Example: A new listing for $200,000, you view it, like it and made an $180,000 offer on it, asking for a help with the closing cost and using the Nehemiah Down Payment assistance program to get another 3% down payment help, 17 days to inspect, termite & home warranty fees, even asked for a survey, home warranty, property Questionnaire Disclosure -- all on one offer! I think you forgot this was a REO "as is" property!!! Anyway, the offer to say the least was rejected.

What to do next?

Check the listing price to see if it is has been reduced (since it has been just about 60 days -- it probably has been reduced by 6%) And the seller may be a little more anxious to sell at this point.

If you want this property, make your highest and best offer.  In this example I'd suggest it be somewhere aroung this amount and terms:  $$186,950 with a 3% Nehemiah down payment assistance.  Leaving out the request for the bank to pay your closing cost. 

Do not ask for any of the following:

• Termite inspection fee
• Termite - Section 1 repairs/clearance
• Home Inspection fees
• Inspection time - nothing over 10 days.  NOTE: Remember home inspections in the eyes of the bank are for your information only - not as a bargaining tool to get more credit to you for the estimated repairs.
• Closing cost credit - Let this go!  The bank is usually not willing to pay your closing costs.  NOTE: If you want this ... the bank will counter back that % over the asking price and then they will be willing to credit it back.  But really that's you paying you, right?
• Home Warranty costs - come on .. most properties are missing the range, some don't have central heating or any of the big ticket items -- so why ask?
• Survey fee
• Property questionnaire disclosure (California has this form) NOTE: the bank is not required to fill this out.
• DO NOT PUT on your offer that you have several offers in with other properties and would require a speedy response.  Leave this out.  The banks are getting back in record time nowadays.  Don't tick them off with this one.
• Fireplace certification/clearance
• And so on.....

If you keep in mind that you are purchasing a REO (bank owned property), it is sold "as is" and the bank is not looking to impress you with a great deal.  If you keep in mind that the bank has put together a chart of numbers that they expect to get from this property within a 30 day timeframe or if need be a 60 to 90 day timeframe and if you are not within that frame, you will be rejected.

It is nothing personal and it is nothing the agent can do -- if your offer does not fall within the numbers that are set forth by the bank.  That's the hard bone truth.  Agents are just doing what they are paid to do: List, Maintain, Market and Sell that property (by taking the offer .... to the bank)!

Some will not follow these suggestions and will their offers rejected and yet some will ask for a few and will get maybe one.  There is no hard fast rule that the banks follow, these are just some of my observations in handling REOs.

• Need a Short Sale Specialist?  CLICK
• Want to purchase a REO property? Want to know what properties I have to sell? CLICK
• Need information on the foreclosure process? Ask me for a FREE Pre-Foreclosure Guide CLICK 
• For a FREE MARKET EVALUATION of your home   CLICK

Check out: Real Estate Terms/Definitions.  And take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties.  Our consultations are free.  Our aggressive marketing plan includes on-line listing advertising.  If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin County CA - includes Stockton, Manteca, Tracy, Lathrop) plus Stanislaus County CA - includes Modesto, Salida, Riverbank) & the East Bay (Alameda County CA - includes Hayward, Fremont, Newark, Union City & Oakland) and surrounding areas give us a call.  If you would like a FREE Home Seller or Home Buyer Handbook, please call us at 866-750-8282 or email at US.

Website:: http://www.motheranddaughterrealty.com

It appears that the lenders are taking their sweet time in deciding to either approve or deny a Short Sale request.  So the question here is:  Does this affect the market comps in some way?

Example:  You write an offer for say 450,000 on a property (market value at time of offer) the agent submit the offer to the lender with all the required documents --- HOWEVER, the lender then take the 21 to 30 days to respond (which just may involve a counter that can take another 30 days of deciding) and another 30 days to close in a declining market. It is most likely that you have just taken probably a 5 to 10 percent hit from them taking your offer as the market has gone down.  That same property is probably going to be decreased in market value to at least 15% - 20% (in worst case), possibly a little less than that.

Is this fair? 

If not, what can be done about it?

• Need a Short Sale Specialist?  CLICK
• Want to purchase a REO property? Want to know what properties I have to sell? CLICK
• Need information on the foreclosure process? Ask me for a FREE Pre-Foreclosure Guide CLICK 
• For a FREE MARKET EVALUATION of your home   CLICK

Check out: Real Estate Terms/Definitions.  And take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties.  Our consultations are free.  Our aggressive marketing plan includes on-line listing advertising.  If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin County CA - includes Stockton, Manteca, Tracy, Lathrop) plus Stanislaus County CA - includes Modesto, Salida, Riverbank) & the East Bay (Alameda County CA - includes Hayward, Fremont, Newark, Union City & Oakland) and surrounding areas give us a call.  If you would like a FREE Home Seller or Home Buyer Handbook, please call us at 866-750-8282 or email at US.

Website: http://www.motheranddaughterrealty.com

Rosemary Brooks & D'Adrea Davie - The Mother & Daughter Realty Team | Family Realty Group | P:866-543-0461 /F:209-879-4601 414 Saint Francis, Stockton, CA This home can yours! Short Sale Deal 3 Bdrm Single Family House offered at $175,000 Year Built 2006 Sq Footage 1,388 Bedrooms 3 Bathrooms 3 full, 0 partial Floors 2 Parking 2 Car garage Lot Size 3,049 sqft HOA/Maint $0 per month DESCRIPTION Short sale and ready for offers! This 2-story, 3 bed/2 bath (1388 sq ft)/lot 3049, with 2-car garage built in 2006 and ready for you and your family. Located in a great neighborhood, close to freeway. Best property in the area! Short sale & subject to lender approval. Submit offers with pre-approval letter, proof of funds and copy of earnest deposit check. See our website: http://www.motheranddaughterrealty.net see additional photos below PROPERTY FEATURES Central A/C Central heat Tile floor Family room Living room Dishwasher Granite countertop Laundry area - garage Yard OTHER SPECIAL FEATURES Great Neighborhood ADDITIONAL PHOTOS Seller contact info: Rosemary Brooks & D'Adrea Davie - The Mother & Daughter Realty Team Family Realty Group P:866-543-0461 /F:209-879-4601 For sale by agent/broker Equal Opportunity Housing Posted: May 5, 2008, 10:23pm PDT

• Need a Short Sale Specialist?  CLICK
• Want to purchase a REO property? Want to know what properties I have to sell? CLICK
• Need information on the foreclosure process? Ask me for a FREE Pre-Foreclosure Guide CLICK 
• For a FREE MARKET EVALUATION of your home   CLICK

Check out: Real Estate Terms/Definitions.  And take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties.  Our consultations are free.  Our aggressive marketing plan includes on-line listing advertising.  If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin County CA - includes Stockton, Manteca, Tracy, Lathrop) plus Stanislaus County CA - includes Modesto, Salida, Riverbank) & the East Bay (Alameda County CA - includes Hayward, Fremont, Newark, Union City & Oakland) and surrounding areas give us a call.  If you would like a FREE Home Seller or Home Buyer Handbook, please call us at 866-750-8282 or email at US.

Check us out on website: http://www.motheranddaughterrealty.com

Rosemary Brooks | Family Realty Group | 866-543-0461 2633 7th Avenue, Merced, CA Want Instant Equity? ** REDUCED TO SELL! 3 Bdrm Single Family House offered at $99,900 Year Built 1957 Sq Footage 1,040 Bedrooms 3 Bathrooms 1 full, 0 partial Floors 1 Parking 2 Car garage Lot Size 7,070 sqft HOA/Maint $0 per month DESCRIPTION Reduced to sell! Want instant equity? Excellent opportunity to purchase this Merced, CA 3 bed/ 1 bath, 1040 sq ft/7057 lot, 2-car garage home is located in a nice neighborhood! Perfect for 1st time home buyer or investor looking for turn key investment. Seller says fax your serious offer. See our website: http://www.motheranddaughterrealty.com If you need an agent, give us a call! Bank Owned. Fax offers to: efax: 209-879-4601 submit with pre-approval letter, proof of funds and copy of earnest deposit check. Call listing agent for information @ 866-543-0461. see additional photos below PROPERTY FEATURES Central heat Fireplace OTHER SPECIAL FEATURES Perfect for 1st Time Homebuyers / Investors ADDITIONAL PHOTOS Seller contact info: Rosemary Brooks Family Realty Group 866-543-0461 For sale by agent/broker Equal Opportunity Housing Posted: May 3, 2008, 8:30pm PDT

• Need a Short Sale Specialist?  CLICK
• Want to purchase a REO property? Want to know what properties I have to sell? CLICK
• Need information on the foreclosure process? Ask me for a FREE Pre-Foreclosure Guide CLICK 
• For a FREE MARKET EVALUATION of your home   CLICK

Check out: Real Estate Terms/Definitions.  And take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties.  Our consultations are free.  Our aggressive marketing plan includes on-line listing advertising.  If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin County CA - includes Stockton, Manteca, Tracy, Lathrop) plus Stanislaus County CA - includes Modesto, Salida, Riverbank) & the East Bay (Alameda County CA - includes Hayward, Fremont, Newark, Union City & Oakland) and surrounding areas give us a call.  If you would like a FREE Home Seller or Home Buyer Handbook, please call us at 866-750-8282 or email at US.

website: http://www.motheranddaughterrealty.com

Cities are starting to frown on properties that are not maintained and up to code.  The reason for this concern is that the foreclosed homes are not being taken care of and is bringing down the neighborhoods.  Of course there are some question as to who to go after.  People are not cleaning up the property before they leave, instead most are leaving trash, personal items, unfinished home improvement projects, dogs, feas, cats, in some cases unsafe structures and don't even mention a yard that is not maintained and haven't been for a long while. This is a concern for neighborhoods that have that "owner pride" and are concerned about their property value going down -- right alone with the neighborhood value.

California has one of the highest foreclosure rates in the nation. Many communities, particularly in the Central Valley, are riddled with homes that have been abandoned by buyers who could not afford their mortgage payments when they reset to higher rates. This problem is not just a California problem, however, Stockton is one of the hardest-hit communities and is developing an ordinance that would require property owners to provide a local contact and pay a minimal fee for each vacant home. But... this is not just a Stockton problem.  Take a look at Sacramento, Oakland and other cities -- nationwide!

In many cases, the vacant properties are overgrown with weeds and shrubs and have become magnets for squatters and vandals. Swimming pools often become stagnant, turning into breeding grounds for mosquitoes.

Most cities will issue default judgments for code violations and imposing the maximum fine, which varies from state to state, city to city.  These cities can and will put a lien on the property.  In some cities this could impede the bank's ability to buy or sell other properties in the area.

Other jurisdictions have explicitly required upkeep on foreclosed properties. The Manteca, CA city council approved foreclosure upkeep rules that require homeowners to keep up foreclosed properties after tenants have moved out. Homeowners that neglect their homes would be fined up to $1,000 a day. Also, homeowners are required to maintain yards outside homes built after 1993. If they don't, the city can hire contractors for the upkeep and pass the bill onto the owners. 

In Oakland, CA the city is working on a rule that will allow them to fine the bank and put a lien on the property due to violation of the code to keep up your property - even in these foreclosure times.

There is a bill SB 926 -  That in summary would enact several changes to the procedures that must be followed 

before the holder of a mortgage may issue a notice of default or a notice of trustee sale, require the holder of 

a mortgage to mail a specified notice to the tenant(s) of a property on which foreclosure proceedings have 

begun, and impose penalties on property owners who fail to adequately maintain foreclosed properties, as 

specified.  Banks and mortgage companies face fines of $1,000 a day if they allow foreclosed homes to 

become run down and a source of neighborhood blight under a bill that passed the state Senate.           

What is your city doing about foreclosures that are not kept up?

• Want to purchase a REO property? Want to know what properties I have to sell? CLICK
• Need a Short Sale Specialist?  CLICK
• Need information on the foreclosure process? Ask me for a FREE Pre-Foreclosure Guide CLICK 
• For a FREE MARKET EVALUATION of your home   CLICK

Check out: Real Estate Terms/Definitions.  And take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties.  Our consultations are free.  Our aggressive marketing plan includes on-line listing advertising.  If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin County CA - includes Stockton, Manteca, Tracy, Lathrop) plus Stanislaus County CA - includes Modesto, Salida, Riverbank) & the East Bay (Alameda County CA - includes Hayward, Fremont, Newark, Union City & Oakland) and surrounding areas give us a call.  If you would like a FREE Home Seller or Home Buyer Handbook, please call us at 866-750-8282 or email at US.

Website: http://www.motheranddaughterrealty.com