Class Today is on Short Sales and Anyone in a Short Sale Knows it’s Anything But Short!
Seems like today anything goes (or not) when it comes to short sales, and no two are the same, however here are some generalities.
Your lender requires your entire application/package be submitted all at the same time. Let’s do it right from the beginning, in the long-run it can save you time and help save your transaction.
Your approval may be determined by a third-party negotiator (an asset manager outside your lending institution) who is most likely over-worked and has more on their plate than they can handle.
Your approval process can be more difficult if there is more than one loan. Even if multiple loans were made by the same lender, you may have two completely different departments (or locations) needed to approve the process.
Your lender may require a new property appraisal or a BPO, aka Broker Price Opinion, usually completed by a local Realtor.
Your second (or 3rd) lender won’t (and isn’t required to) roll over, they will expect some compensation/payoff to sign off the loan, this will be negotiated with the first lender.
Your REALTORS(S) experience obviously is crucial, however (irrespective of what you may have heard from some) your broker does not have control of whether your lender will consent to the short payoff.
Your broker will may not provide legal or tax advice, you are advised to see your own from the proper professional.
Your lender (if approved after waiting months) will want a fast closing and condition the approval on a final last minute review of costs and expenses just days prior to closing.
Your buyer is not required to meet your lenders terms.
Your short sale addendum (to the purchase agreement if you use the CA standard form) states you shall reasonably cooperate with the lender (s) in the short-sale process.
Your buyer’s deposit check may or most like may not be placed into escrow until written approval is received from your lender.
Your buyer may not stick it out, they may withdraw their offer at some point, depending on the length of time it takes to receive a reply from your lender.
You and your buyer may incur some expenses during the escrow, i. e. inspection, appraisal, association documents. etc, etc.
Your lender is likely to move forward with a foreclosure during the short sale process.
Your lender is not likley pay for any house repairs.
Your lender is not likely to pay for back association fees.
Your lender may or may-not postpone a trustees sale during the short sale process.
Your lender may ask for a financial contribution from you to close.
Your lender may make last minute requirements so hold onto your hat until you close.
So when it comes to a short sale, as much as anything else, be prepared to be patient and contact me, Lynda@PreferredHomeBrokers.com.
If you are a senior needing help with selling your home, or a family member looking for help when it comes to a probate or estate sale, work with the right professional.
Work with a “SRES” is a Senior Real Estate Specialist, one who is designated by the National Association of Realtors, one who is trained unerstand the important issues of seniors.
In California you can have a wide variety of issues including a senior who is on, or has received Medical. The sale of a home may possibly trigger unplanned consequences at an already difficult time.
Another probate/estate issue could include a senior with a reverse mortgage on the home. As a broker I’ve experienced one estate that found the property in foreclosure as a misunderstanding of the payoff rules upon the death of a a loved one.
Then there was another time where one of the heirs (of an estate) purchased the family home only to find it was re-assessed when the proposition 58 family transfer was denied. After much work and follow up, the re-assessment was reversed and it saved that family member thousands.
It’s important you know, I am not an attorney and cannot give legal advice, nor am I a tax professional howeverI am a long-time Broker and real estate professional who is also a Senior Specialist and I work with legal and tax professionals in my real estate practice.
Check out CaliforniaSeniorRealEstate.com it’s a website created just for seniors and their families. It’s filled with helpful information and tips for seniors and their families.
We also have an in-house paralegal and serve a four county area of Orange, Los Angeles, San Bernardino and Riverside Counties. If you’re out of our marketing area we can refer you to another well qualified SRES REALTOR.
If you’re a probate/estate/elder/care attorney, you can be assured you can refer us with complete confidence.
You’ve come to the right place for great home selling help. your an old pro at the grad level, no doubt you will learn more here. We hope you re-visit as often as you can.
The rules have changed and with some lenders it seems like they make them up as the go. Real estate today is like the “wild wild west” no two transactions are the same. The reality of short sales have impacted the majority of the market in many ways, even if you’re a traditional seller.
We hope you will stop back from time to time to enroll in a new class session. You will be happy to know, your tuition is FREE, not even the price of your email address.
If you want more personalized info, that’s up to you to move to the head of the class by sending an email to the instructor.
If you’re looking for a well-qualified real estate pro in your neck-of-the-woods, raise your hand and email us.
And remember this, there will be no dunce hat wearing here, there are NO stupid questions!
Escrow 101 is like the kindergarten of real estate, yet kindergarten was a place of learning for most of us at one time.
Some feel everything they need to know they learned in kindergarten, so if that analogy works for you grab a warm cookie and glass of milk this will only take a few minutes.
You’ve heard the saying ” the house fell out of escrow” or “we’re waiting for escrow to close”it seems like escrow is something that happens to you, so what does escrow mean to a buyer or seller?
What is an escrow? An Escrow is an arrangement in which an impartial “third party”, called an escrow holder (generally the Escrow Officer), holds legal documents and money on behalf of a buyer and a seller, and distributes them according to the buyer’s and seller’s mutualinstructions.
Only the principals to the transaction are entitled to the information concerning the escrow.
The term “escrow” has come to mean “neutral protection” for the seller, the lender and the buyer.
All parties involved in the transfer of real property are supposed to be impartially protected during the transaction.
Who can do an escrow: The escrow holder may be any disinterested third party, and not all escrow companies are all the same.
Some maybe licensed by the state and others may not.
Depending on the laws of your state, the guidelines/regulations can differ, and some may afford consumers more protection than others.
Escrow officers with established firms generally are experienced and trained in real estate working directly with the buyer’s lender for the new loan if applicable, in addition co-ordinating with the title insurance company for seller payoff compliance, homeowner associations, etc. etc.
It’s also important to note that the escrow company/escrow officer while wanting you to place nice in the payground, they do not make buyer/seller decisions for you, this may be contrary to the belief of consumers.
So kindergarten basics work here,… be nice and don’t throw sand, if something goes wrong… it’s not always the fault of the escrow officer. They do they can for you, while complying with the complexities legal settlement procedures…and thanks for coming to class today at HomeSelling101.com.
If you like what you see, or have learned something here, please leave us a comment.
Class today is on Orange County Probate Home Selling:
Probate or Estate home selling is never easy, selling the family home or retirement condo takes on a different meaning after the loss of a loved one.
If you’re at the time of your life after the loss of a loved one, maybe a family member, it’s important to know there can be a lot of family dynamics and issues impacting the process when it comes settling an estate. It’s more of an emotional issue for some than others, it just happens that way with families and probate home selling.
If you’re an administrator or successor trustee you have a role with added responsibilities, and that feeling at times can feel overwhelming. I know that first-hand, as a long time REALTOR, I’ve also served as a successor trustee myself more than once.
Your choice of the proper real estate professional to represent you can help ease that burden, knowing you’re in good hands with someone knowledgeable in the probate, estate or trust process. Since the laws vary depending on your location, it’s important to work with a SRES, a Senior Real Estate Specialist.
So if you’re looking for knowledgeable real estate help with a probate or trust sale in Southern California contact me. You can also view my California Senior Real Estate website, here it’s filled with senior home selling tips and information on probates. If you’re out of my own marketing area I can refer you to a local Senior Real Estate Specialist who can help in your area.
Thanks for being in my class today on probate sales, and if you need help or settling an estate, remember me for Orange County probate sales.
Welcome to class today on home buying and home selling home warranties!
If you’re a home buyer or selling your home you need to know many sellers offer a “Home Buyer Home Warranty” included in the negotiated purchase of a home. In the event it’s not included, home warranties are also available for purchase from the buying side.
Home buyer home warranties are basically a one-year contract, regardless of who pays, (the buyer or the seller) for a period of time, typically written for one year from the close of escrow. Most policies are usually renewable at the end of the initial period of time at the option of home buyers, I’ve used them and renewed them myself.
Like any contract/policy, it’s important to know what’s covered…and what’s not, because not all policies are the same. Most policies cover the the working components of a home, for example:
Normally included:
Built-in appliances
Plumbing
Heating
Air Conditioning
Optional items include:
Roof coverage
Pool/spa
Refrigerator
Washer & Dryer
Fixtures
The items listed above are just a few things to consider when deciding on a home warranty for your sale/purchase. Your REALTOR can also provide you with information from the different companies that are available. The “customer service” side can also make a difference.
It’s also critical to know policies WILLNOT cover pre-existing conditions! Meaning if an item is identified in the property inspection report as being in-operable/defective, do not expect coverage from the policy contract. It’s similar to applying for health insurance with a “pre-existing” health issue.
While you’re here check out some of my other 2-Minute Real Estate Videos!
So if you’re looking for home buying or selling help, contact me Lynda@PreferredHomeBrokers.com & be sure to subscribe to my blog and share it with a friend!
Welcome to class today, once again on the topic of short sales, whether you are a buyer of seller they’re are plenty of Do’s & Don’ts to go around when it comes to a short sale. Here are just a few!
Short Sale ~ Do’s
Be sure you understand your commitments and expenses contained within your contract.
Are you required to submit your initital deposit to the escrow or title company even if your offer hasn’t been accepted by the seller’s lender(s)?
Are you required (by contract) to proceed with the appraisal at this point?
Will you be required to complete the property physical inspection?
Short Sale Don’ts
Don’t open any new credit or make any large purchases during the home buying process.
Don’t change jobs while buying a home.
Don’t make any unusual or large deposits while in escrow.
Don’t co-sign for anyone else.
Don’t pay of any debts/close accounts during the home buying process
These are just a few do’s and don’ts while in escrow! Bottom line DON’T DO ANYTHING WITHOUT FIRST SPEAKING WITH YOUR LOAN PROFESSIONAL, your loan originator or lender, because what may seem like a good idea to you could make the difference between a failure vs. a successful closing.
Welcome again to class, this one is on home buying in Southern California
SoCal home buying can be confusing at best, here’s a quick look at the CA Statewide Buyer/Seller Advisory from the California Assoc. of REALTORS, it helps identify the process and your role in home buying.
The CA Statewide Advisory can be helpful whether your a home buyer or home seller in the State of CA. If you’re buying or selling through a REALTOR, it’s likely (yet not mandatory) you will be presented the 10 page disclosure form during your buying or selling process. It’s become the standard of the industry for most of us, yet not required by law. Buyer and seller responsibilities are spelled out on page one along with the dutities of your REALTOR right on that first page.
As a REALTOR myself I work with with both buyers and sellers in the Southern CA market (for decades) I like to provide my clients with a copy of this in advance, that way it can be your blueprint to a successful home buying and selling experience. Having a full undertanding of the process will help you minimize suprises that all to often happen when buying a home.
So if you’re looking to buy or sell as your REALTOR of a copy of the Statewide Buyer/Seller Disclosure and READ IT thoroughly, you will be glad you did!
Thanks for stopping by HomeSelling101 today and visiting our class. If you like what you’ve learned SUBSCRIBE to future classes, you will be glad you did.
Lynda Eisenman, The Dean of Education at HomeSelling101!
Welcome to class today on Probate Home Selling in Orange County CA.
We all know for some people, there are times when home selling can be challenging and selling the family home in Orange County as a probate sale (or anywhere) after a loss of a family member or loved one can be trying at best.
If you’re selling a home after the loss of a loved one it’s essential you work with the proper professional, one who can guide your through the process, one who knows the guidelines and mandated requirements in our state when it comes to probate real estate.
As a long time Broker myself I’m able to guide families through the process, in particular my immediate market area of Orange Co. and surrounding communities. While I’m an experienced broker in the field of probate and trust home sales, my specialty is just that, real estate and we have a full-time paralegal who is also a REALTOR within our office. If you need a CPA or legal referrals we have other professionals available to meet you needs.
It’s also important to know in CA we have a special PROBATE SALES AGREEMENT, far different from the one we use with traditional sales. Plus it’s essential the agent you hire knows the different DISCLOSURE REQUIREMENTS mandated with probate/estate sales vs. the traditional home sale. We understand the role and responsibilities of a successor trustee, and worked with executors and/or personal representatives along with beneficiaries when it comes to settling an estate in Orange Co.
So when you’re looking for knowledgeable competent help with a probate or trust sale, contact me, Lynda@PreferredHomeBrokers.com. YOU can call me directly at (714) 595-1494, and yes I do answer my phone…if I’m available at that moment you will receive an immediate message, my voice mail is updated 7 days a week. I’d love to hear from you!
You can also check out a few of my other real estate videos here:
•Home Selling 101
•CA Real Estate Purchase Agreement
•So Cal Home Buying
•CA Home Buying & Selling Disclosures
Welcome to class today on selling your So Cal home!
As a home seller, when it comes to selling your home you need to know know the 5 important componets of your home sale…and, that you’re in control 4 out 5 of these.
It’s normally about:
Price ~ You establish the price based on your home and market conditions.
Terms ~ You have a preference on length of escrow & assistance (if any) with closing costs and/or seller financing.
Condition ~ Yes, it’s all up to YOU when it comes to condition
Location ~ Done, you’re toast…your location is your location so you need to live with it and price accordingly.
Agent Selection ~ Yes, it’s your decision, and DO your homework on this one!
So if you’re a home seller, follow teacher’s instructions on this one. When you interview a prospective REALTOR(R) interview fiercely, ask questions, a lot of questions. Do this well and you will be moved to the head of the class!
To reach me directly (714) 595-1494. Until then come back for another class sometime soon!
Welcome to HomeSelling101.com, class today is (once again) on the topic of short sales, yet with a different twist.
Recently I had a conversation with a long time friend and client who mentioned a program which involves a homeowner short sale to a third party/investor (with lender approval) along with a provision allowing the home owner to potentially rent the home back after the sale takes place. In addition the plan provided for the former homeowner to possibly buy the home back at a later date, probably a period of a few years at a reduced price.
Presumably this would benefit the former homeowner by eliminating/reducing the loan on an over encumbered property, and benefit the third party investor who purchased the property at a reduced price who also has a built-in renter. Then somewhere later down the line, the homeowner could re-purchase the property at a lower price (than the former loan balance) but high enough presumably pay a return to the third-party who negotiated the short sale, who also became the owner/landlord and eventually the home seller. Oh and did I mention the homeowner also paid an upfront/out-of-pocket fee to the third party to negotiate the transaction?
For me personally there are so many red flags here I almost don’t know where to begin, but here goes: First red flag, paying anyone an upfront fee to anyone to negotiate your short sale. I’ve personally known troubled homeowners being taken advantaged of by paying up front fees who received absolutely nothing…zip, zilch, nada…nothing at all in return (I hope you get the picture here). The last couple that contacted me (after the fact) saying they paid $5,000 to a Southern Cal law office only to find out they lost their family home to foreclosure. Even worse…they lost almost $100,000 in equity, because they weren’t upside down on value vs. loan, but experienced employment cutbacks and couldn’t make the newly adjusted increased payments.
However let’s assume the third-party investor is successful negotiating a reduced payoff on the short sale, red flag #2 did anyone bother to advise the sellers they would be required to sign an Affadavidt of “Arm’s Legnth Transfer” maybe, or maybe not?
Arm’s Legnth Transfer or Arm’s Legnth Transaction = A transaction that has been negotiated by non-related parties (among other things) no family members to the seller (s) seller’s agent or company and the SELLER (S) CANNOT REMAIN IN POSSESSION AS TENANTS.
Anyone bother to explain to the sellers this is now a Freddie Mac requirement and that the majority of residential loans today are Freddie or Fannie loans? And even if it’s not a Freddie/Fannie loan it normal to expect to see the same requirment of other lenders in a short sale situation.
Recently from Freddie: Short sale fraud has become the top priority for Freddie Mac’s fraud investigation unit… ” These affidavits not only deter individual participation but also give us a stronger legal path to enforce our rights,” according to a Freddie Mac representative.
And yet if you get that far, (another red flag) what’s to stop the investor/owner from selling the home at a later date to the highest bidder after you’ve lovingly taken care of the home through those years?
Bottom line…don’t even think about it! If you need to do a short sale just do it. Or if you can negotiate a loan modification…then do it yourself even if you get turned down the first or second time.
Welcome to our video class today at Home Selling 101, on the topic of home buying (or selling) in a home owner’s association.
If you’re a home buyer in an association, or a home seller selling your home in a homeowner’s association it’s crucial you understand the process, guidelines and laws within your state. And of course the laws can and do vary depending on your state. This class and quick video today is based on the state of CA yet many of the principles can be helpful to anyone buying or selling a home in an association anywhere.
To follow up, it’s not uncommon in today’s real estate market to find home owner associations who are experiencing financial difficulty, some are tanking far more than others. If you’re a home buyer and you’ve been provided with financials of the association and copies of the meeting minutes of the association take the time to real them and don’t be afraid to ask questions!
So if you’re looking for home buying or home selling help, check out my other 2-Minute Real Estate videos and contact me Lynda@PreferredHomeBrokers.com, text or direct (714) 595-1494…and thanks for coming to class today and stop back by again!
Welcome to class today on surviving your short sale.
Anyone in a short sale situation knows, it’s anything but short, and it’s anything but predictable. No two short sales are the same, however there are some general guidelines.
Here are a few of the basics once you have an offer:
1. Your lender requires your entire application/package be submitted all at the same time. Be sure to do it right from the beginning, in the long-run it will save you time and help save your transaction. Most lenders today use a “platform” online system where everything is uploaded at one time by your REALTOR.
2. Using the platform as the borrower you upload (through your own portal) your financial and hardship situation.
3. Your approval could be determined by a third-party negotiator (an asset manager outside your lending institution) who is most likely over-worked and has more on their plate than they can handle.
4. Your approval process will normally be more difficult if there is more than one loan. Even if multiple loans were made by the same lender, you may have two completely different departments (or locations) needed to approve the process.
5. Your second (or 3rd) lender won’t (and isn’t required to) roll over, they will expect some compensation/payoff to sign off the loan (it also depends on the laws of your state) this will be negotiated with the first lender. Your broker is not the appropriate person to provide legal or tax advice, (unless your REALTOR or is also an attorney or tax professional) you are advised to see your own from the proper professional.
7. Your lender (if approved after waiting months) will want a fast closing and condition the approval on a final last minute review of costs/expenses just days prior to closing.
8. Your buyer is not required to meet your lenders terms and could walk at that point, or bail when they’re tired of waiting. However buyers who are properly counseled on what to expect will usually hang in with you…at least to a point.
9. Your short sale addendum in CA (for example) to the purchase agreement states you shall reasonably cooperate with the lender (s) in the short-sale process.
10. Your buyer’s initial deposit check may or most like may not be placed into escrow until written approval is received from your lender. Depending on your contract, your buyers timeline for inspections and investigations begin once you have written approval from your lender.
11. You and your buyer may incur some expenses during the escrow, i. e. inspections, appraisal, association documents. etc, etc. even though there is no assurance it will close.
12. Your REALTOR does not have control of whether or not your lender will approve the sale, yet working with an agent experienced in short sale can be crucial to your success. Most asset managers have little time and patience to work with an uninformed short sale agent.
Welcome to Home Selling 101, Our Class Today on a “Buyer’s Final Walk Though” When Selling Your Home!
If you’re selling a home (or if you’re the home buyer) most contracts including the California Residential Purchase Agreement provides for a buyers final walk through called VERIFICATION OF CONDITION to verify the condition just prior to closing.
Earlier in the home selling and buying process buyers normally have a contract provision allowing for the ”buyers investigation” time period, meaning the appropriate time in the process for the third-party physical inspection among other things which is different than the final walk through taking place later.
It’s important for consumers to know in the CA purchase agreement the final walk though is not a contingency of the agreement, especially since the buyers had the opportunity of due diligence of inspections earlier in the contract.
The purpose of the final walk though is to confirm the condition was the same as the time of the acceptance of the offer and to verify any of the requested repairs have been completed by the seller of the seller’s professionals. Our contract also states the sellers are to provide receipts if work or repairs were completed by someone other than the owner. If receipts, work orders and invoices have not been provided in advance, they’re normally furnished to the buyers at the walk through. In the event work was completed by the owner has agreed to (in the CA purchase agreement) to provide a list of repairs completed by the seller.
It’s also a good time to double check on the transfer of utilities, lawn service, pool service, mail delivery, confirm trash day pick-up and anything else that could be helpful to the buyers.
Oh and when possible I’ll ask (my clients if I’m representing the sellers) whether or not they know if the next door neighbors might be avail after wards to meet the new homeowners!
So if/when you’re looking for home selling or home buying help contact me, Lynda@PreferredHomeBrokers.com. Also direct or text (714) 595-1494.
no two are the same, however here are some generalities.
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