New Short Sale Guidelines in Summary

The following article was created by David Romero, CEO, Century 21 Award, on March 10, 2010.

"The new Short Sale Process will be crucially important in 2010. We believe that having timely information on this issue is vital to our community. Scroll down to find the latest updates and information on the new Short Sale process.

The Treasury department has released new rules to help simplify the ’short sale’ process. For months, we have been preparing our followers for this great announcement. It should mean we will have less foreclosures in 2010. The sellers will be able to leave the property with dignity and on a timetable. Our neighborhoods will have less vacant houses. The negative impact on real estate values will not be as severe.

As of now, these seem to be the key points:

Mortgage servicers have 10 days to accept or deny a short sale request. After a sale is completed, the borrower could be completely released from debt.
Borrowers are eligible to receive a $1,500 moving allowance, if they sell their home through a short sale.
Mortgage servicers will receive $1,000 for each completed short sale.
Investors who hold first mortgages can get as much as $1,000 for allowing second lienholders to release their liens.
Second lienholders can get only as much as $3,000 in proceeds from short sale to release their liens.
The property must be the homeowner’s principal residence.
The homeowner is delinquent on the mortgage or default looks likely.
The loan was made before Jan. 1 this year and is less than $729,750
The borrowers’ total monthly mortgage payment exceeds 31 percent of their before-tax income."

If you would like to consider a short sale, or simply have a straight conversation about the options available to you, please call me today. I'm here to help.

A Buyer's Agent Can Sabotage A Buyer's Offer!

Buyer's real estate agents are a necessity to ensure the buyer is represented well, legally, fairly, competitively and successfully in their home buying transaction. A buyer's agent is typically paid by the seller so it is really foolish for a buyer not to have their own agent from the beginning of the home buying process. After all, would you go into the court room and use the other party's lawyer? Of course not. So get your own representation and let the seller pay for it!

This all sounds simple...but here's the tough part. If a buyer selects an unskilled, part-time, agent, the agent may acutually sabotage the deal. One of the main reasons a buyer's offer is not selected by the bank is that the buyer's agent was sloppy in their submission of the offer. The bank's real estate agent, the listing agent, is typically inundated with offers on well priced foreclosure properties. Those listing agents need and demand precision and accuracy with the multitude of offers they receive. If the offer is missing back up documents, a copy of the deposit check, signatures or is simply filled out wrong, the listing agent is instructed by the bank to "clean it up" before the bank will review it. The listing agent will send an email to the buyer's agent, wait for a response and a correction, and then finally submit it to the bank. Meanwhile, other offers have been considered (and possibly have been accepted) by the bank.

Buyers need to select well and give careful consideration to their agent. Here's a list to guide you:

1. Look for a Realtor designation. That assures that the agent is held to a higher standard of ethics.


2. Ask for referrals from friends and co-workers.


3. Check out the online presence of the agent. Is their website current? Are you able to search easily for properties at your leisure? Google the agent. Do they come up easily on the internet. Since statistics show that the over 90% of homebuyers search for their home on the internet, your agent should be prominently represented on the web. Their Facebook, Twitter and YouTube sites show that they stay ahead of the trends and take advantage of the technology you need to beat the competition to that great deal.


4. Ask how many homes they have listed and sold and how many buyers they have represented. The San Diego County average for real estate agents is less that 2 deals per year! And don't be afraid to ask for testimonials from previous clients.

Your agent will be your greatest weapon....or your worst enemy. Select well and go get that fabulous deal you've been dreaming about!!

Buyers Should Consider Jumping in Now... the Bottom is Here!

Housing prices have bottomed out; and in fact, they have risen approximately 8 % since January. In North San Diego County homes, it is typical for the sales price to exceed the list price. In homes listed for $300k or under, there are usually multiple offers in the first 48 hours. Many desperate buyers, especially FHA and VA buyers, are tempted to offer way up over the asking price in an effort to beat out other offers. However, this negotiating tactic is backfiring on those same buyers. More and more banks are requiring that the buyer show proof of funds that they can and will be able to pay the difference between the appraised value and their offer amount. Your agent should know how to strengthen your offer to give you an advantage over the other buyers that won't backfire on you.

Manuevering through this maze of changing rules and face paced real estate transactions can be daunting. You NEED and DESERVE a professional, full time, Realtor who will be your guide.

If you're hearing that giant clock ticking, it's marking the end of the First Time Homebuyer Tax Credit. One other note of urgency, the buzz is that lending is tightening once more. There's talk that FHA buyers will soon need 5% down payment instead of the current 3.5%. That will price many more homebuyers out of the market.

While I normally don't want to push anyone into the huge decision of home purchase, it does seem as if NOW is the time to jump in to take full advantage of all this great real estate market offers you! Call me today if you would like to talk further.

Follow me on Twitter for the fastest foreclosure updates

The quickest way to view my newest Foreclosures is to follow me on Twitter. You can click the link on the right side of my blog. That's usually where I post the videos first and the teasers of any properties getting ready to be listed.

Speaking of "teasers"...this is your last chance to check out my latest foreclosure in Valley Center. I posted the video on this 5 bed 5 bath beauty and today I received the listing agreement. It will be on the MLS within 48 hours so this is your last chance to beat the crowds. Call for a personal viewing today!

Psst...Bank Owned Home-Not Yet Listed! Beat the Crowds!

Wow, a bank owned home that's in great condition! Located in a gated golfing community. Built in 2005, 4,600+ sq. ft., 5 bed/5 bath with gourmet kitchen, 2 living rooms, loft, and family room. This half acre property is an entertainer's dream complete with pool, gazebo, firepit and BBQ area.

Join my "Inner Circle" today and be the first to see this incredible home....before it is listed!

Are You in the "Inner Circle" of a Top Foreclosure Specialist?

oreIf you're constantly running "a day late & a dollar short" with bank owned properties, you need to change your strategy. Instead of long nights on inaccurate websites that are just "fishing" for your business, you really need to bite the bullet and realize you DON'T know all there is to know about buying a foreclosed property and you need a guide. A map. A specialist. An REO agent who has an "Inner Circle" that may be a little tougher to get into, but ultimately, you get a great house at an unbelievably great price for a fraction of the effort.

Why would an agent with REAL information about great deals give it away to the dozens of investors who call each week. Well, they don't. They have a special group of investors and home buyers who are loyal to them...and the agent is loyal right back. Most hot deal hunters are afraid of missing out on any foreclosure or insider info, so they don't commit to an agent. These are typically the same people who will end up at a cocktail party in 5 years saying, "Wow, the deals I could have had in 2010." Wouldn't you rather be the one at the party talking about the deals you did get?

I hope I don't offend anyone too much with the following statements, but the truth really needs to come out. You don't go to your doctor, pick his/her brain about how to do a surgery, and then try to do it yourself to save money. Change the scenario and insert lawyer, CPA, etc. Top professionals in any industry deserve respect and loyalty. Contrary to popular belief, there are, in fact, top professionals in the real estate industry even in light of the black eye the industry has received in the last few years. Your job? Find one. Get referrals. Check them out online. Ask for references.

But don't call me, ask for my hottest deals, and then tell me you don't want to commit. I am loyal to my clients. I have an "Inner Circle". Those are the buyers that get inside my foreclosed properties BEFORE they are listed. Those same buyers know market trends before they become the "buzz" and then old news. I network with other foreclosure agents as well looking for specific properties for my buyers. I save my buyers time, huge money, and they always end up with a property in a fraction of the time they spent searching endlessly on the internet. I bring the deals to them. That's what you should expect from your agent. But commit to your agent. Find a full time professional with up to the minute market expertise and an exhaustive knowledge of social media.

My 'Inner Circle" clients are prepared to discuss their financial needs, get preapproved from a respected lender who performs, are motivated, understand the market or want to learn, don't "low ball" deals and they are a joy to work with. If this fits your buying personality, and you are excited about this real estate market, call me. Let's see if we're a match.

After all, don't you really want to BUY a foreclosed home and not just look for them??????

One more thing, if you get my voicemail, send me a text. Do whatever it takes to get my attention. You've wasted enough time running in circles. Let's get your home today!

San Diego's Holy Grail of REOs - 1/8/2010