Thursday, October 29, 2009
Wednesday, October 28, 2009
Top Reasons Short Sales Fail
When the listing agent and the seller start the process of a short sale, there is no guarantee that the bank will accept the short sale. Simply because the property is listed on the MLS does not mean the bank is willing to do a short sale or that the offer will be accepted. So what are the reasons short sales do not go through?
First you need to know what a short sale is. A short sale is when the lender (bank) who holds the mortgage agrees to accept less than what is owed. Complicating matters more is that there may both a 1st and 2nd mortgage, in which both lenders must agree to the short sale. While they are called short sales because banks are agreeing to accept something "short" of the full amount, they are not short in terms of time. The process can be very lengthy.
Why Banks Reject Short Sales
Offer Price is Too Low
The price at which a property is listed in no way indicates what the bank will accept. Many agents list the property very low in order to get multiple offers, quickly. Once the offer is under review by the bank they will do their own appraisal or BPO to determine the value of the property. If they feel the offer price is too far off the mark, they will reject the short sale offer.
Even if the offer price is close to the appraised value, if the bank feels it would make more by foreclosing on the property they will reject the offer.
Incomplete Packet
When doing a short sale, the seller will be required to submit a financial packet. Typical items included are W-2 and tax returns for last 2 years, paystubs for last couple of months, bank statement for last 2-3 months, and a financial worksheet showing income versus expenses. The banks will not review incomplete packets and they are notorious for losing paperwork. It must be complete with the account numbers on all items. If the packet is not complete, the short sale could be rejected.
There is NO Hardship
To be included in the packet mentioned above is the hardship letter. The banks require a reason for considering a short sale. They will not just write off the debt because the seller decides they don't want to live there anymore. There needs to be a hardship and a letter explaining why the seller is requesting a short sale. If there is no hardship for the seller, the short sale can be rejected.
Seller Has Assets
Even if there is a hardship such as a job loss or other factor, if the seller has other assets the bank may want those sold or money brought in by the seller. If the seller does not agree the lender can reject the short sale.
Lender Sold the Loan
Short sales can take a long time and often times one department of the bank doesn't know what the other is doing. There are often times when you are in negoitations with the bank's short sale department and suddenly find out the loan has been sold and they no longer hold the asset or have the authority to approve the short sale. Since they do not own it anymore, they can not approve a short sale on it.
And finally, sometimes there is no reason why. All we hear is that "investors did not approve".
First you need to know what a short sale is. A short sale is when the lender (bank) who holds the mortgage agrees to accept less than what is owed. Complicating matters more is that there may both a 1st and 2nd mortgage, in which both lenders must agree to the short sale. While they are called short sales because banks are agreeing to accept something "short" of the full amount, they are not short in terms of time. The process can be very lengthy.
Why Banks Reject Short Sales
Offer Price is Too Low
The price at which a property is listed in no way indicates what the bank will accept. Many agents list the property very low in order to get multiple offers, quickly. Once the offer is under review by the bank they will do their own appraisal or BPO to determine the value of the property. If they feel the offer price is too far off the mark, they will reject the short sale offer.
Even if the offer price is close to the appraised value, if the bank feels it would make more by foreclosing on the property they will reject the offer.
Incomplete Packet
When doing a short sale, the seller will be required to submit a financial packet. Typical items included are W-2 and tax returns for last 2 years, paystubs for last couple of months, bank statement for last 2-3 months, and a financial worksheet showing income versus expenses. The banks will not review incomplete packets and they are notorious for losing paperwork. It must be complete with the account numbers on all items. If the packet is not complete, the short sale could be rejected.
There is NO Hardship
To be included in the packet mentioned above is the hardship letter. The banks require a reason for considering a short sale. They will not just write off the debt because the seller decides they don't want to live there anymore. There needs to be a hardship and a letter explaining why the seller is requesting a short sale. If there is no hardship for the seller, the short sale can be rejected.
Seller Has Assets
Even if there is a hardship such as a job loss or other factor, if the seller has other assets the bank may want those sold or money brought in by the seller. If the seller does not agree the lender can reject the short sale.
Lender Sold the Loan
Short sales can take a long time and often times one department of the bank doesn't know what the other is doing. There are often times when you are in negoitations with the bank's short sale department and suddenly find out the loan has been sold and they no longer hold the asset or have the authority to approve the short sale. Since they do not own it anymore, they can not approve a short sale on it.
And finally, sometimes there is no reason why. All we hear is that "investors did not approve".
Friday, October 23, 2009
Huge Yard Sale (Jamul)
Huge Yard Sale (Jamul)
Reply to: sale-caraj-1433069309@craigslist.org [Errors when replying to ads?]
Saturday 10/24/09 only, 8 to 2. Years of accumulation! Here a a few of the items:
Kenmore Ultra-wash dishwasher model 665 series purchased new from Sears 1/03 for 469.99; white; rarely used
GE gas range model JGBP40WEC4WW XL44 self-cleaning; set up for propane; purchase new from Sears 1/03 fro 699.99; white
GE over the range microwave oven/vent model JVM1860WF001; purchased new from Sear 1/03 for 399.99
Maytag Dryer set up for propane but easily adaptable to gas; good condition, off-white
Stereo Speakers and equipment
LV lights
Landscape tools, hand tools, power tools
Baby stuff
Children’s party goods new in packages
Household items
Furniture: 2 oak dressers, one antique
Color TVs (Magnavox) working
Picture frames and pictures
VW Thing parts: hard-top, seats, disc brakes, odds and ends
Christmas stuff
ETC.
Location:
3123 Peg Leg Mine Rd. Jamul.
Directions:
Take 94 to Lyons Valley Road, turn right, go approximately 1 mile to Peg Leg Mine Rd., turn right. We are at the end of the road. Come out and see beautiful Jamul!
Location: Jamul
3123 Peg Leg Mine Rd
Jamul, CA
Post date: 10/22 01:13 PM
Sale date: 10/24/09
Source: Craigslist
Reply to: sale-caraj-1433069309@craigslist.org [Errors when replying to ads?]
Saturday 10/24/09 only, 8 to 2. Years of accumulation! Here a a few of the items:
Kenmore Ultra-wash dishwasher model 665 series purchased new from Sears 1/03 for 469.99; white; rarely used
GE gas range model JGBP40WEC4WW XL44 self-cleaning; set up for propane; purchase new from Sears 1/03 fro 699.99; white
GE over the range microwave oven/vent model JVM1860WF001; purchased new from Sear 1/03 for 399.99
Maytag Dryer set up for propane but easily adaptable to gas; good condition, off-white
Stereo Speakers and equipment
LV lights
Landscape tools, hand tools, power tools
Baby stuff
Children’s party goods new in packages
Household items
Furniture: 2 oak dressers, one antique
Color TVs (Magnavox) working
Picture frames and pictures
VW Thing parts: hard-top, seats, disc brakes, odds and ends
Christmas stuff
ETC.
Location:
3123 Peg Leg Mine Rd. Jamul.
Directions:
Take 94 to Lyons Valley Road, turn right, go approximately 1 mile to Peg Leg Mine Rd., turn right. We are at the end of the road. Come out and see beautiful Jamul!
Location: Jamul
3123 Peg Leg Mine Rd
Jamul, CA
Post date: 10/22 01:13 PM
Sale date: 10/24/09
Source: Craigslist
Thursday, October 22, 2009
Twitter Tool For Real Estate Listings
I found this tool that can help real estate agents post their real estate listings to twitter. I thought I would share. Go to http://www.tweetlister.com/ and let me know what you think!
Wednesday, October 21, 2009
VA Buyers and Tax Bill
Anyone who recently purchased a house using VA may have received or will receive shortly a tax bill. This usually causes some concern especially for first-timers. See, VA requires an impound account for taxes and insurance so to receive a bill makes one think something has gone wrong. Well, you can breathe a sigh of relief. If you look closely at the bill it should say "copy" on it and if you read the insert it will explain that payment from the buyer is not expected. This is simply a copy for your records. Now if there is no indication that the "bill" you received is a copy, your best bet is to call your mortgage company and confirm they have received the bill.
If you receive a supplemental tax bill, this you will have to pay. In escrow taxes are prorated and paid at the seller's tax rate; if you purchased the home at a higher rate you will owe the difference for the months you owned the property.
I hope this helps with some of the confusion, if you are still unsure, please feel free to give me a call.
If you receive a supplemental tax bill, this you will have to pay. In escrow taxes are prorated and paid at the seller's tax rate; if you purchased the home at a higher rate you will owe the difference for the months you owned the property.
I hope this helps with some of the confusion, if you are still unsure, please feel free to give me a call.
Monday, October 12, 2009
Ghost Tours at the Whaley House
The Whaley House is one spooky place that is known as "the most haunted house in America". It is open for tours Thursday-Monday 6:30-8:30pm. For more information visit their website (www.whaleyhouse.org) or call (619) 297-7511.
Haunted Trail of Balboa Park
The "Haunted Trail of Balboa Park" is open Wednesdays-Sundays in October. the cost is $14.99, for more infor visit their website (www.hauntedtrail.net) or call (619) 231-0131.
Thursday, October 8, 2009
In My Car or Yours
When I work with buyers some want to ride with me in my car while others prefer to take their own car and follow me when we go to look at property. I sometimes try to guess which option a client will select before I ask them what they prefer. Some are easy, if they have small children they will want to ride in their own due to the carseats. If we are looking at homes right after they get off work, they will typically meet me there. But I would like to understand what people think so I am asking the experts: YOU! Which would you prefer and why?
Kimberlee Quarles 619-987-5143
Kimberlee Quarles 619-987-5143
Wednesday, October 7, 2009
Great Feature For your Blog or Website
Here is a great gadget you can add to your blog or website. It allows readers to easily share the information they find interesting. Check it out. I just added it to my blog so now you can easily share my blog with your friends.
www.addthis.com/features
www.addthis.com/features
Tuesday, October 6, 2009
Banks are Crazy!
I just have to share what many already know...Banks are crazy.
When they are lending on a property they want a recently sold comp to be higher than the subject property. This creates a perpetual declining market which in and of itself is crazy when there are buyers getting into bidding wars for the property.
When the bank is the seller, in the case of this REO, they want a price that is way out of line with the market and will therefore never appraise by the current lending standards.
Figure it out banks...you can't have it both ways!
When they are lending on a property they want a recently sold comp to be higher than the subject property. This creates a perpetual declining market which in and of itself is crazy when there are buyers getting into bidding wars for the property.
When the bank is the seller, in the case of this REO, they want a price that is way out of line with the market and will therefore never appraise by the current lending standards.
Figure it out banks...you can't have it both ways!
El Cajon Real Estate Stats-Sept 09
Happy October everyone. Here are the real estate statistics for El Cajon for September 2009. These are the active, pending and sold listings for single family detached homes in the 3 zip codes of El Cajon.
92019 zip
69 Active listings from $169,900-$2,999,999
58 Pending Sales
37 Sold in September from $236,000-$847,000
92020 zip
57 Active listings from $189,000-$2,400,000
60 Pending Sales
25 Sold in September from $165,000-$607,500
92021 zip
72 Active listings from $90,000-$1,795,000
82 Pending Sales
22 Sold is September from $164,000-$995,000
If you have any questions or would like me to provide stats for another area, please feel free to give me a call. Have a great month!
92019 zip
69 Active listings from $169,900-$2,999,999
58 Pending Sales
37 Sold in September from $236,000-$847,000
92020 zip
57 Active listings from $189,000-$2,400,000
60 Pending Sales
25 Sold in September from $165,000-$607,500
92021 zip
72 Active listings from $90,000-$1,795,000
82 Pending Sales
22 Sold is September from $164,000-$995,000
If you have any questions or would like me to provide stats for another area, please feel free to give me a call. Have a great month!
Friday, October 2, 2009
Rancho Jamul Auto
Two weeks or so ago my daughters car began to ask funny. It was making a weird noise and losing power. Well, I know how to check fluids and change a tire but that is about it. Normally Leon handles the car issues but with him gone, we were on our own. I had heard that Dave at Rancho Jamul Auto had done a good job for some of my clients so I decided to give him a try. They are located on 94/Campo Rd in Jamul, just past the post office. Well I have to say I am impressed. Dave was very easy to work with. He ran a diagnostic and told me what he thought was wrong. We discussed options and he was very honest with me. He ordered the part and kept me informed every step of the way. I could not believe how easy it was and get this, it did not cost an arm and a leg! So if you are in Jamul and need a mechanic give Dave a call, (619) 669-2848.
Thursday, October 1, 2009
Paramedic saves mother of friend and colleague
When Ryan Lopez went to paramedic school and struck up a friendship with classmate Brian Borland, he hardly envisioned the role his new friend would play in his life.
Lopez's mom, 51, collapsed at her University Heights home the other day. When paramedics and firefighters arrived seven minutes later, she had no pulse. Their emergency measures kept her alive while she remained in cardiac arrest for 45 minutes.
Lopez soon learned that Borland, 26, now his colleague at San Diego Medical Services Enterprise, and his co-worker Anthony Sablan, responded. He credits their work, along with firefighters and emergency room doctors, with saving his mother against great odds.
When he called to thank Borland, who had no idea his patient was Lopez's mother, Borland downplayed his role, saying he was just doing his job.
“He didn't give just 50 percent, he gave 110 percent,” said Lopez, who nominated the respondents for an award. “I am proud to say I work alongside them.”
Meanwhile, Jeannie Lopez, a former principal of Oak Grove Middle School in Jamul, has fully recovered and recently returned home from the hospital.
By Diane Bell
Union-Tribune Columnist
2:00 a.m. October 1, 2009
Lopez's mom, 51, collapsed at her University Heights home the other day. When paramedics and firefighters arrived seven minutes later, she had no pulse. Their emergency measures kept her alive while she remained in cardiac arrest for 45 minutes.
Lopez soon learned that Borland, 26, now his colleague at San Diego Medical Services Enterprise, and his co-worker Anthony Sablan, responded. He credits their work, along with firefighters and emergency room doctors, with saving his mother against great odds.
When he called to thank Borland, who had no idea his patient was Lopez's mother, Borland downplayed his role, saying he was just doing his job.
“He didn't give just 50 percent, he gave 110 percent,” said Lopez, who nominated the respondents for an award. “I am proud to say I work alongside them.”
Meanwhile, Jeannie Lopez, a former principal of Oak Grove Middle School in Jamul, has fully recovered and recently returned home from the hospital.
By Diane Bell
Union-Tribune Columnist
2:00 a.m. October 1, 2009
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