We read about Fannie and Freddie coming to the rescue but we’re still rescuing both of them…with Freddie asking for another $10.6 billion the other day.  Sure Freddie, no problem, where should we send the check…and…let us know when you need some more.  We’ll be sending a check to Fannie too.

Perhaps you’ve read some of what I’ve been reading lately…that over 4.6 million homeowners are more than 60 days behind on their mtges.  Oh no, wait, another source says the number is over 6 million.  Maybe it’s worse than we’ve been told…think?  Most of these mortgages are backed by these two giant bunglers…what does that mean…we’ll need to write more checks?  But hey, I’m running short myself…are you?

And get this, in July, a new program will be kicked off by these two - to help homeowners who have to give up their homes in a short-sale, come back to the table in two years and buy again.  Huh…What?  Is anyone checking the checkbook?

Funny story in MoneyNews.com…a big guy at JP Morgan Chase, David Lowman, when at a congressional hearing not long ago, says to the question - who could mortgage borrowers turn to if they felt his bank’s employees were not helping them hold on to their homes - “Come to me!”  Well, 50 borrowers came forward from the audience, at this invitation, presenting him with a document alleging his bank reneged on a pledge to help struggling homeowners.  So what did our hero do?  “He ran like a dog with its tail between its legs,” said Bruce Marks of the Neighborhood Assistance Corporation of America (NACA), which helps homeowners avoid foreclosure.  Didja know about this organization?  I didn’t.  If you know someone who should know about them, please pass this along!

Not all banks are equal though and some are loosening up on the lending side.  The majority are still pretty tight though.  The Fed Reserve’s senior loan officer survey recently showed most banks kept credit tight in the first quarter and residential mortgages saw continued tightening in terms.  This according to an article by Sudeep Reddy in the WSJ.

Now you need a minimum credit score of 640 and 5% down for conventional or 3.5% down for FHA mortgage qualification.  Terms are getting tougher so if you’re in the market to buy a home, get busy before terms get even tougher and rates (rates that are still terrific today) go up.  You do know that rates will definitely go up…?

Where the short-sales and foreclosures will take home prices is still a guess but if you’re putting money on it, I’d go with continued price drops and amazing deals for the next 18 months or so.  If you can buy…buy now!

If you need cash to fix up a short-sale or foreclosure purchase, we have sources and programs that you can use to get it done…roofing, siding, windows, floors, even new appliances!  So call us today and we’ll fill you in.  Take advantage of the greatest buyer’s market in the history of Real Estate!

The amount of inventory leading to outstanding deals is enormous. 

We’ll e-mail a list to you today.  Just tell us where and what you’re looking for.

If you need help selling or buying, call us for more info today!

Can’t hurt to talk ‘eh?

Ed

http://www.dailywealth.com/1338/Another-Way-to-Profit-from-the-Coming-Plague-of-Busted-Banks

Marketing has many connotations to it, depending on who you talk to: those that have spend every dime in their pocket to market a new business to no avail; those that have MBA Degree and can recite the famous 4-P’s of marketing (Product, Price, Place & Promotion); those that have a creative bent and see marketing as an endeavor in communicating through images; and those that have no idea what I am talking about and would like some assistance and direction in how to market their home to sell.

Like Elmer-Fudd, most individuals and real estate agents for that matter, consider marketing an effort to broadcast to the largest possible audience, at the cheapest cost, to try and land a prospective buyer for their property. Real estate agents do this everyday, when they list a home on the MLS - Multiple Listing Service, and wait…in hopes, that a prospective buyer will be hit on the MLS. Did Elmer Fudd ever get “that pesky wabbit”? Need I say more…?

Today, consumers are smarter, wiser and have many more tools at their disposal to search and find a home of their dreams, than to just rely on one single source, the MLS, to find their home of choice. In fact, consumers tend to use tools that are relevant to themselves, in terms of their social status and life stage. For example, a twenty something female may reach out to her social network on Facebook and receive links from friends and family via Twitter. Or, a 50 year old female that falls in the upper 5% income bracket, may reach for her local community magazine, like MSP Magazine or chat about it with her social network at her next Bunco game.

Whatever the marketing medium, tool or tactic, be sure you have a target audience in mind when selling your home. This can be defined in developing a strategy to sell your home. Strategy is the execution of a carefully thought out plan to achieve an ultimate goal. In this case, I am suggesting you put together a marketing strategy to determine what you are going to do to communicate with a targeted audience to achieve that sale of your home.

When you target your message to a particular audience, you have a more focused message that will have a greater impact on the entire social and life stage group. In fact, the communications within these social and life stage groups can be so compelling, that the dependence that consumers once had on a single source, like the MLS, has begun to change the entire real estate industry.

Next time you’re thinking about marketing your home to sell, look us up for a consultation, we’ll give you the straight scoop on marketing your home to sell.

Well, most of these sites direct your inquiry to an agent who has purchased a zip code, city or county, as an ‘exclusive’ arrangement for obtaining leads.  That’s right - the e-mail or call you’ll get will be from the agent who made this deal with the site owner.  No problem…if you’re OK with that but if you thought you we’re not going to be on an agent’s radar, not so good?

Most any Broker will give you a “CMA,” (comparative market analysis) for your home.  Some will require you let them visit your home and they’ll come armed with their ’sign here’ listing agreement.  Others will e-mail it to you and follow up to try to get your listing.  Hardly ever will you get an e-mail with the info you requested and no strings attached.  Now the home visit is important as whatever amenities you might have could add to the value…things like granite counter tops, ceramic baths, new appliances, etc.

I remember years ago, working with one of these sites, and the surprise and alarm the homeowners displayed when I called. (A very watered-down description of their reaction.)  I cancelled the service as I felt it violated the homeowner’s goals.

Many of these sites host tutoring seminars aimed at teaching the agents how to sneak up on these unaware home owners.  Clever stuff, this?

Here’s what we do here but before I get to that, here’s what you should know about this game:  Realtors don’t get paid to do these evaluations…unless you’re willing to pay them?  Realtors often do a lot of work for nothing and they, much like yourself, don’t like to work for nothing…right?  Realtors are concerned that they’ll do this work for you and find you’re really not ready to sell but were just curious about what your home might sell for…if you were going to sell it.  Or, they’re concerned that they will give you the data you need and you’ll then call some other Realtor to sell your home.  Could happen, right?  So, what’s the answer, how do you get what you want without paying for it or being hassled to list your home with a Realtor you don’t even know?

Simple solution, call us…no obligation on your part…straight forward honest ‘CMA’ will be done for you.  And, when we visit your home, we do not have anything for you to sign.  You’ll get the info you asked for within 24 hours.  We feel that if we treat people with dignity and respect, providing this service without a ‘hitch,’ when they’re ready to sell they’ll get back to us.  So, fear not, no funny stuff, just good and accurate service you can depend on!

So if you’re considering the sale of your home, check it out ASAP…most industry sources feel that a lot more foreclosures will come in the next few months, putting  additional downward pressure on home prices.  Also, in this part of the country, home sales are the highest between now and July.  Again, check it out…can’t hurt to be informed?

Buyers have only two weeks to identify the home they want and get a purchase offer in place, in order to get the govt. tax break.  Why pass on a $6,500 (buyers who have not bought a home in the last five years) to $8,000 check or tax credit from the govt.?  This is big…get your share.  You have to have a signed deal before the end of this month and a close date by the end of June.  The clock is ticking and we know we can find the home you want within the next two weeks.  Give us a call and take advantage of our ‘cooperative search’ process, whereby you also get extra cash when you close on your new home.

Any stories you care to share with our readers?  We’d love to hear from you.  Just click on the title of this post and a comment box will open.

Ed (651-770-5000)

  So on 4/30/2010 this Birdie flys away and takes with it the $8k/$6.5k tax or cash benefit. 

  You won’t miss it, will you?  Buyers still have time to find the home they want and nail

  down this huge govt. hand out!

We can find the home you want in less than 30 days, so hang with us and we’ll get you there in time.  The housing inventory is exceptional, you name it and it’s out there for you.  Best part is; the deals are unreal and you’ll probably never see it better in your lifetime!  Add to this, the rates that continue, at least for now, at record lows…and…the FHA203k program to help you with the cash you don’t have…to make repairs and improvments.  That means you can get a short-sale or foreclosure property that needs some fixin and appliances - to look like new before you move in!  Seriously, if you can buy, BUY NOW!   http://money.cnn.com/pf/loan_center/index.html

FHA is still at 3.5% down, and up to 6% for closing cost request from sellers.  Rates are still just over the 5% mark but all indications are, we’ll see a serious rate increase starting soon.  Don’t let it happen to you…Buy Now!

Home ownership declined some in 2009.  With some of the older short-sales and REO’s getting sold, we’re hoping for an uptick in the traditional home sales.  While some markets report slight price increases, this may still be a ’skewed’ result due to the lower priced, distressed stuff going away.

Many pundits see the market prices dropping even further due to the expected glut of homes that were held back from short-sales, as the owners tried to qualify for mtge payment reductions and/or, principal reductions.  So few have been able to qualify and of those that have, over 35% are back in the soup within months, failing to carry out the plan.  These homes will show up next.  How many, is anyone’s guess.

Another move by the FED, that will no doubt have a serious affect on the market, is their decision to stop buying mortgage-backed securities.  This could result in rate increases and diminish the ability of buyers to qualify for loans, or, limit their ability to buy the house they want?

We have been helping buyers get outstanding deals and rates throughout this housing mess.  We can help you too.  Give us a call to discuss the possibilities.

If you’re ‘upside down’ in your equity position and wonder whether you should jump on the ‘HAMP’ band wagon, or sell or short sell, give us a call and we’ll fill you in.  There’s a lot to learn and it won’t cost you a dime to get this info.

If you’re interested in selling but question whether this is the time to try, call us…we’ll give you all the market info you need to make a decision that serves your best interest.  No charge here either!

We work with a lot of investors to help them meet their goals, both on the buy and the sell side.  If you’re an investor who could use some help, give us a call…can’t hurt to talk?

 We love to hear from ourt readers.  If you’d like to comment on this or any other post, just click on the headline and a comment box will open for you. 

This mess will end.  Mean time, let’s work together to get you where you want to be!

Our best to all of you!

Ed (651-770-5000)

Picture this…main watering hole for the agents of  a large Brokerage office…”Happy Hour!”   The agents are having a drink and sharing their weekly  war stories.  Let’s listen in:

“So Freddie, didn’t I hear you nailed a ‘hogger’ this week?”  “Yeah baby, you heard right…I’m at the house, a $475,000 listing, putting up a rider on the sign that says ‘Great N’Hood,’ and a couple drives up and wants to see it.  Ms. Homeowner was just leaving to get groceries and told me to go ahead and show it, so I did.  They liked it and said to write up an offer.  I showed the offer to the sellers and they went with it.  So…I didn’t have to split the commission with another agent…got the whole 6%, $28,500 for myself…hogged that one!”

See, in a normal situation, the listing agent lists the house at 6% and when a different agent brings a buyer, the selling agent gets 2.7% ($12,825) and the listing agent gets 3.3% ($15,675). The listing agent is the one that covers the marketing expense of the house.  Only makes sense the listing agent should get more…to offset expenses , right? 

 The listing agent probably took pictures (no cost?), made brochures ($15. ?), provided copies of the disclosure document ($5.?), had a yard sign installed ($40.?), spent a couple hours working with the home sellers, before the listing was secured, showed the home a few times (4 more hours?), took calls from other agents who showed the home (two more total hours?), wrote the offer (another hour and a half?), and will attend the closing (another 2 hours?).  So, a total of 11.5 hours.  But I usually find an agent will spend about 20 hours per deal.  So lets say the agent worked 20 man hours and had total expenses of $60.  Landing the hogger means he made $28,500 - $60 = $28,440 divided by 20 man hours = $1,422 per hour.  Yeah baby, hog it up!

Most buyers don’t understand this whole process.  They’ll sometimes be working with their agent but attend an open house or call to see one from the info on a sign and the listing agent shows them the house, writes the deal and gets a “hogger” on it.  The agent the buyers has been working with, sometimes for months, gets absolutely nothing and the agent that wrote the deal…spent maybe, a couple hours with the buyers, gets the big reward.  Bad deal, this?

Agents are supposed to not only ask a potential buyer if they have an agent, they’re suipposed to defer to the other agent, if there is one.  Then, if there is no other agent, the listing agent is required to disclose to the potential buyers, on an “Agency” document, how the process works…and…have the buyers sign it.  But do they?  The Hoggers are in waiting…c’mon uninformed buyers…line up!

When you start working with an agent, if you’re happy with them, have them set up all showings and situations for you.  That’s the only way they can get paid.  Don’t hand over the pay to some agent you don’t even know, who hasn’t done a thing for you.  And, if you do look at a home while in the search process, if the showing agent does not ask you if you are represented by another agent, let your agent know about it…the showing agent is either derelict in their procedure or unethical or plain stupid?  Would you want to reward someone like that?

One more thing (I’ll bet many readers are wondering about this), If a listing agent was happy with the normal way home sales pay out…and…an unrepresented buyer comes along…and…the offer is less than the sellers want…why wouldn’t the listing agent offer up all or part of the 2.7% he wouldn’t have to pay out to another agent, to help his sellers?  We do here…we do even more…check us out?

Beware…the “Hogger” may come your way?

Next: How to get the best deal when qualifying for a mortgage!

Ed

With over 7 million home owners behind on their mortgages, the already huge inventory of homes will get even bigger.  The choices available are phenomenal!

We’ve recently looked at so many foreclosures and short-sale homes and find a good percentage are not beat up at all.  In addition, many are eligible for the super FHA 203k plan, whereby you can get the fix-up cash you need…and…it gets better, since most of these will be devoid of all appliances, this program will kick in cash for that as well.  Nice! 

One of our “pros” recently put his client in a home that sold in the $230k’s just a few years ago.  Now, our client is in a large 4 bedroom, 2 bath home on a large, fenced lot with landscaping, a very big - new asphalt drive, new interior fixtures, new bath fixtures, new electrical box and some wiring, new plumbing, some new carpet and all new - higher end appliances.  He’s on cloud nine, thanks to our pro being informed.

All this was financed through this terrific FHA product and the client has nearly a new home.  He’s in it for the $164,900 he paid, plus the $25k he didn’t have but the FHA plan provided.

If you care to know how this plan could work for you, give us a call and we’ll give you the details.  We have so many first time buyers that know they can get a good deal but just don’t have the money to make repairs.  Find out how this plan can get you in the home you want and put the cash in your hand that you need.

And by the way, for those of you that would like to stay in your home, vs. a short sale or letting it go into foreclosure, give us a call, we’ll help you get the info you need.  No worries, you don’t have to be selling or buying, this one’s on the house!

We come across so many people that don’t understand how the “HAMP” program works…or…they’ve called their mortgage company and get nowhere on the phone with them.  You have to know how to work with these birds and what the rules are because half the time, they don’t know themselves.  Let me share a success story with you:

another of our “pro’s” is talking with one of our clients; a single mom with a serious financial crisis…less hours and very reduced pay, no where near the child support money she needs and…increased mortgage payments from an adjusted rate mortgage plan.  What to do?  She calls her lender and is told they will have to see if she’s qualified to adjust her payment…they’ll get back to her.  Weeks go by, no call back. 

She calls again and gets the same story.  (Enter our guy.)  She tells him what’s going on and he tells her she is qualified and asks her to give him an authorization letter, where he will be allowed to talk with her lender on her behalf.  He called the lender and told them she was absolutely qualified, to read the mandates and get busy helping this lady.  Within days…new ball game.  The lender is cooperating and the mortgage will be adjusted to a comfort level for her.  The family can stay put!

                                                                   Dontchaloveit!

And don’t be embarrassed if you paid too much, have no equity and the bank is on your case. (Cute story,see theWSJ /2/8/2010 by JamesHagerty.)  

My interpretation: the MBA (mortgage bankers association), movers  and shakers…right(?)…paid $79 million for their newer headquarters in 2007.  They thought they might be better off to sell it now.  They have an offer and it looks like they’re going to take it.  They owe the bank $75 million but the offer is for less, only $41.3 million.  Oh shucks…looks like they’ll have to come to the close with the balance…right?  Oh, but some good luck, they may not have drawn the whole amount because the bldg. was under construction.  They’ve refused to be interviewed about their intentions.  Smell fishy to you too?  But wait..there’s more!

Their chief executive, John Courson, in an interview last year, said that people that were “under water” -borrowers owing more on their home than it was worth- should keep paying their loans if they could.  He went on to say defaults hurt by lowering property values and sent the wrong message to their kids.  Well guess what?  He refused to be interviewed about what his Association was going to do about the balance owed.  Can we guess what that means?  Funny stuff, this?  You should feel bad about your situation?

                        Call us, we’d be happy to help you end the financial pain!

Back to the “buy” side; rates we thought were going up are still in the 5% range and jumbo rates are still in the 5.5% range…hey…the time to buy is right now…remember…you make money in real estate “on the buy.”  Also, if you’re buying to occupy, there’s the $6.5k to $8.5k govt. tax credit, or, cash if you don’t owe taxes. But that will blow away if you aren’t under contract by the end of April and scheduled to close by June 29th of this year.  Doesn’t look like they’ll extend it either…so…latch on if you can! 

Next time: “The Hogger.”  (Don’t miss it, it’s pretty funny…pathetic…but funny.)

Ed

You’re probably not old enough to have known a better time to be investing in Real Estate.? For Home Sellers, they’ve probably never seen a worse time to be for sale?   It’s not only a “buyer’s market,” its as hot as it can get for Investors!  You make money in Real Estate on the buy! Buy now, don’t wait, let’s look at why.

The bank bail-out deal did not work according to plan.  The banks got to borrow at 1/4% and lend out at 4.75%+.  Who wouldn’t jump on that arrangement!  Trouble is…few loans are being made, except to highly qualified buyers.  Not only are the Banks messing up the housing market, the PMI insurers are fighting with the Banks, refusing to pay according to their original agreements.   In some cases, the PMI Insurers don’t have the reserves they need to pay up. Case in point, a sad story…

I’m helping a young couple try to short-sell their home.  Both have been laid off, she has cancer and couldn’t return to work even if she wanted to.  They have a young son, have moved in to less than desirable quarters but it’s all they can afford,  they are both under 30 years old, they owe $270k on their mortgage and they’re 5 months behind on their payments.

So I get a ridiculous offer…$167k and the buyer wants $10k back for closing costs.  (I really don’t think the bank will get more than $185k for this house.) The bank does an appraisal and turns down the offer.  Not surprising?  Next, I get an offer for $190k and this buyer only wants $6k for closing costs.  The bank will look at it.  Weeks go by and no answer.  I have to work through a couple different Reps at this bank, to get the proposed deal looked at.  Meanwhile, the buyer wants an answer soon - they don’t want to miss out on the second choice.  We get an answer; the bank will go with the deal but the PMI Insurer wants the young couple to sign a $25k promissory note.  I’ve already sent the bank tax records, closed bank account records, a hardship letter, monthly budget and “comps.”  This young couple couldn’t sign a note for $25 bucks, let alone $25k?  The bank won’t allow me to negotiate with the Insurer.  When I informed the prospective buyer’s agent, she came back to us with a $200k offer and I informed the bank.  They said they would take another look.

Several days later, the agent withdrew the offer and I informed the bank that the deal was dead.  Several days  after that, the bank notified me they would accept the offer - they hadn’t even read my e-mail to them from days earlier.  Who’s in charge at this bank?

We now work with an attorney and a staff totally dedicated to doing short-sales.  This strengthens our marketing efforts and reduces the time necessary to get these done.

This whole mess adds value for the Realty Investor. The stumbling and bumbling of these banks has put a huge number of homes in front of Investors that have good financing sources.  If you can close fast and have savvy lenders, you’re in the drivers seat!  What we’re finding though, is that too many Investors are sitting on the fence, hoping for even more price reductions, before they snap the trigger.  More and more realty tracking firms are projecting a slide in prices for up to another 18 months.  There’s more to consider though…an increase in rates is inevitable and those rate increases may eat up the dollars saved on the buy, within a few years.  The time to buy is right now, especially since the banks, Fannie and Freddie are going to make it harder for buyers to get financing.  Look at these guys…struggling with depleted reserves.  Last week, a WSJ article pointed out that these reserves were supposed to be at 2% but were only at less than .6%

Fan/Fred put the ‘touch’ on the FED to the tune of $111 billion so far.  FHA requires lenders to have cash reserves of $250,000.  But now they’re considering to raise this reserve amount to $2.5 million.  You can guess how many Lenders will no longer be offering their services for FHA deals if this goes through.  They’re in trouble folks - and the loan game is going to tighten up like nothing we’ve seen.  The time to buy…if you can…is now!  Rates will go up, they always have.  When this will start is hard to say but when it does, it will be swift and severe!  Don’t get trapped, buy now while there’s plenty of choices and some money still available!

Now, where to go for the deals? We always look at the areas that offer the best potential for rental and resale.  If you’re not working with a proactive, ambitious Realtor that’s taking their time to do previews for you and pulling ‘comps’ to find the very best deals for you, give us a call…we can find you what you want in less than 30 days.  And…December is one of the best months for an Investor to be busy in the market.

But wait, there’s more!  Sound familiar? There really is more though, here’s how we work with you:

We get together to set up a strategy to find you what you want.  We nail down the best areas to search in.  We set you up with a search program that gets all new listings to you, the same day all Realtors get them…you’ll be at the front of the line so you don’t miss anything.

If you’re too busy to see the homes you have the greatest interest in, we’ll preview these for you and give you a report on them.  That will save you time  - we’ll only set up showings for the homes at the top of your list.  Make sense?

Once we find what you want and close on it, you’ll get 25% of the commission paid by the sellers.  This is to compensate you for your work in the search process.

There are over 1,525 homes for sale at prices less than $150k right now, in just 4 counties! Many of these were purchased and renovated or updated within the last few years.  This means you may have only minor items to repair or just cosmetic work to do in order to rent them out or re-sell them.
Time is money…don’t get caught in a rate increase and lose out on some of the hottest deals ever!  We just put a deal together for an Investor at 5.25%.  If that same deal ($150k) was 7%, it would require an additional $170/month.  Get in while you can ‘cash flow!’

Ed

 Is the “DOW” any help?  Up about $200 one day and down about $250 the next…obvious hype effect created within the ranks of the WS players.  The great bank bailout program - any help there?

What a joke!  You should be in this business (real estate) where transparency reins…the banks are helping themselves but not home sellers and buyers.

Uptick in home sales is touted by the media and govt.  Well, I suppose…drive the prices down as far as you can and buyers will show up.  Short-sales, foreclosures, first time buyers after the $8k deal, most sales under $200k, heck ya, we’re cruisin now baby!

Working short-sales recently, for both buyers and sellers, I find the banks willing to sit on their toxic loans and drag out the process.  After all, while these loans are sitting there, not yet written off, they represent a value far past what they’re worth…right?  When you’re at the bank filling out your net worth statement, they let you put your car down for what you paid for it, right?  I mean, you can play too…no?

Care to go along with me today on a short-sale deal, just for the ride?  Hop on, here we go, hope you don’t have a full stomach for this one.

WARNING: INEFFICIENCY AND GREED AHEAD!

Here’s how it works:  The home owners know they can’t keep up with their inflated mortgage payment.  Besides, the home is worth far less than it was when they bought it.  They want to see if their bank will accept a short-sale; take less for the home than what they owe.  They heard they can save some of their credit vs letting the home go into foreclosure.  They call the bank to see if the bank will allow this.  Bank says…’if you get an offer send it in and we’ll decide at that point.’

Our home owners put it on the market and the listing agent puts the price as high as he thinks it can go.  Now, they have to compete with other sellers who are in the same financial mess…sellers who have been out there a long time, with no results and who have continually been dropping their price.

But our home sellers are  lucky, an offer comes in.  Aw shucks…it’s 20% below their listed price.   Their agent tells them that “this is not unusual…let’s send it to the bank.”  They’ll need to add some documents to the offer and send in a whole package.  They need to send two years tax statements, the latest two months of their bank statements, last two pay stubs, a hardship letter (the bank wants to know why they can’t continue paying), and their present home budget.  The whole package is submitted to the bank. 

Now, why would the bank consider something like this?  Well, the bank knows that if this home goes into foreclosure, they may lose even more money than they would with the offer submitted.  Maybe not though?  The bank has an ‘Asset Manager’ that will make this decision.  So the package goes to the Asset Manager…right?  You’re right,of course not.  It goes though a screening process first.  Probably goes through two or more people assigned to make sure all the info is there for the Asset Manager to make a decision.  (Are you thinking what I’m thinking?  Will this be an expedient process?  Will all that are involved know this is a time-sensitive matter, that both the sellers and the buyers want an answer ASAP? I dunno hey, sure hope so!)

So the package arrives at the bank fax room and is sorted to go to the ’short-sale’ dept.  In a day or two, it goes to screen person #1.  Aw shucks! (my substitute word here.)  The listing agent didn’t send a HUD statement in with the package. (The HUD statement is what both sellers and buyers get at the close.  It has all the financial data regarding the deal and is required by law.  The bank needs to see it now, so they know all costs involved and what their net will be.)

So, does #1 one call the agent to let him know the package wasn’t complete?  This is a test question gang…whatcha got?  You’re right, no call to the agent, the file goes to the incomplete dept., awaiting the missing document. 

The agent was told, when he called to submit the offer, that it would take from 5 to 7 days for the fax to get to the right dept.  He was told to call in about a week to get the status of the offer.  A week’s gone by and the agent calls, sits on hold ’bout 20 minutes…hey…a live voice!  He learns that he forgot to send a HUD with the package and to do so now.  He calls his Title company to get a HUD and within a day or two has faxed it to the bank. Progress!  When will the right dept. get it?  Good for you!  That’s right…in about 5 to 7 days.

Let’s get out of the bank now and turn to the buyer, a buyer who’s been waiting 3 - 4 weeks now for an answer.  What if the banks says no?  Will that other home the buyer was also interested in still be available?  Maybe the buyer should cancel and go with the other one…it was a normal sale and they’d know in a day or two if the deal was going to fly. Their agent tells them to “give it a day or two before they cancel the offer, and move on to another home.”

Back to the bank.  The HUD was received and the whole package is now in the hands of screen person #2.  #2 will often have the package from a few to as many as 15 days before it goes to the Asset Manager.  Everyone is lucky on this one though…#2 passed it on in just two days. (Thanks #2, we know that no one else is appreciative for your wok ethic but we sure are.)

Asset Manager to his assistant: “yeah, this deal stinks.  I noticed the listing agent sent us comparable listings but he just wants to get his commission, can’t trust those birds!  We’re required to do a BPO (brokers price opinion), so get to that dept. and get it set up.”  Notice; he didn’t say when.

Here’s the deal; a BPO is ordered from another broker - other than the one who listed the property, to see if the BPO comes it close to what the offer is.  If the BPO is lower…no problem, we’re in the game.  But if it’s higher, the deal will probably get shot down?  I have some very disturbing news folks, you can guess who they send out to do these, in most cases, not the top hitters in the house.  It’s the agents willing to run around for very little money, the bank does not pay well!

Let’s put a time line on this part, your call here; how long from the time the bank gets everything, to the order for the BPO…and…how long before the bank receives it…and…how long before the Asset Manager gets it?  You say _________. (Days, hours, minutes?)

The sellers, the buyers, the agents…all sittin on nins and peedles, awaiting the good news.  Oh no, oh no!  The bank ordered a ‘drive-by’ BPO but now needs an interior BPO.  It’s ordered though, should hear any day from the BPO assignee about getting into the house to do this.

Ok, so if you’re still with me, we’ll jump off here, nuffs ‘n nuff!  Quite the deal ‘eh?  Think I’m full of hot air?  Many are far worse than this example.

The bank bail out designed to help us all…?

Here’s the good news; there are many ways to bust up this disorganized system and get things done faster.  Weknowwhatandwhentodowhathastobedone! So if you’re in a short-sale state of mind or wonder what your options are, call us!  We understand your pain and we’ll walk you through the process so you can make an intelligent and informed decision about - how to get your pain relieved!  No obligation, we’ll meet, we’ll talk, you’ll get the info you need and then - you can call us, if and when you’d like us to help.  Fair’n nuff?

See you again soon.  Next up: Residential Investors

Ed

             Ever wonder where your precious, hard earned equity goes when you sell your home?

Let’s take a look. Real Estate agents work for brokers and receive a split of the commission when a property is bought or sold.  The broker needs their cut, to support a variety of amenities: the building, furnishings, equipment, office staff payroll, administration payroll, advertising, dues, etc., etc.  So, who pays?  You do, if you’re the seller.

Generally, most brokers take from 10% to as much as 50% of the selling agent’s commission.  That’s considered payment, for the agent operating out of the broker’s bldg. and all the support services.  So, when a Realtor brings a buyer for the listing agent’s seller, the total commission (usually 6%) gets split like this:  (Say, the sale is for a $250k home) - selling agent that brought the buyer sees 2.7% go to their broker, and the listing agent’s broker gets 3.3%.  Then, the listing agent’s broker pays the agent from $ 4,125 to $ 7,425.  The agent that brought the seller, will usually get from $ 3,375. to $ 6,075 from their broker. (Total paid by the home seller was $ 15,000.)  This is how it goes in most transactions today.

There are brokers today who recruit agents on a 100% commission basis.  They pay the agents almost all of the commission but the agent then operates out of their home…no big building and conference room, no phone answering service, no fax, just a place to park their license.

By the way, national statistics show that listing agents only sell about 2 of every 10 listings they have.  The majority are sold by other agents.

When an agent starts a search for a home buyer, they should have learned exactly what the buyer wants in a home.  The agent should know how many bedrooms, baths, finished sq. feet, style of home, what size lot the buyer wants and whether they want a fenced lot, the #1 and #2 n’hoods the buyer wants to live in and the most important rooms in the house…like; open kitchen floor plan…or…huge master bedroom with large walk-in closets and spacious bathroom.  Trouble is, too many agents ignore this procedure.  They tell their customer; "well, when you see one you like, let me know and I’ll getcha in!"  Not good, this!  Some of the websites folks search, don’t give them enough info about the home and the agent doesn’t do his homework, so - they go out to look at homes they have no interest in.  Waste of time and irritating at a minimum!

I’ve talked with agents that tell me they’ve shown their customer 50 homes or more.  How’s that possible?  Those agents don’t get it!  We can find the buyer a home in less than 30 days.  How?  By asking questions and taking them to see only the homes that line up with their interests.  Easy, fast and fun.  We also reward our buyers with cash back at the closing for the effort they put into a search.  So many buyers have told me that when they worked with other agents, they would go to open houses or search the Internet and feed their agent the addresses.  The agent would then set up showings and they would hit the road. In a situation like this, does the agent deserve all of the commission paid by the sellers?  Your call!  When I say we can find a buyer a home in less than 30 days, I’m talking about calendar days.  The total ‘man hours,’ is less than 20 hours, spread out over the 30 days.  We might be out there only a few days and a couple week ends.

Recently, a lovely lady told me that she called an agent from a yard sign message.  She wanted to see the home she was in front of. The Agent directed her to her office and when they met, the lady was told she’d have to pay $ 1,000. up-front, if she wanted to hire the realtor to find a house.  She passed on the offer - you would too, right?  Then, this lovely lady contacts a second realtor and meets with her at the broker’s office.  No talk of any fees, so, she’s all right so far.  She tells the realtor she’s looking for a very small house (she’s near retirement, doesn’t want stairs, a big house nor a big yard to take care of…two bedrooms and 1 bath will do it.  Even a home with less than 1,000 finished sq. feet will work), they hit the road.  The agent takes her to a split level with four bedrooms,  two baths and over 2,000 finished sq. feet.  Whaaaa?  They head back to the agent’s office.  She then learns, that to continue the search, she’ll have to pay $400. up-front.  The lovely lady passes on this offer as well.  (Applause please!)   Cute stuff, these "up-front-fee realtors"

Here’s something else you should know; agents can share their commissions with the parties to a transaction.  For example: The selling agent and the buyer’s agent can negotiate to receive less commission to get a deal done.  Could help both the seller and the buyer?  But many big brokers won’t allow their agents to do this.  Too bad…nice to have the option available, it’s helped us help both parties many times over.  Independent brokers might also offer a lessor fee if they sell your home.  They may reduce the fee to 3% or 4% if they sell your home.  (We’ll do that for just 1.5%!)

So, if you’re a home buyer, make sure your agent is doing the majority of the work, they get paid handsomely for what they do.  If you’re a home seller, ask for a break on the listing fee.  If you can’t get to a win-win solution, call us…you don’t have to fight for it here, we’re on the same team, your team!

Always looking for stories about buying or selling real estate…got anything you’re willing to share?  Get in the comment box and let ‘er rip, we’d love to hear from you!

Ed

Job losses continue to push people out of their homes.  On the other hand, buyers are in a rush to find their home and get the deal closed before the 11/30 deadline for the govt gift of $8k.  Some buyers continue to sit on the fence…waiting for prices to bottom even more.  Rates are great, as most always when we’re in a weak economic phase.  However, with any real positive shift in the economy, you’ll see rates go up.  Rate increases can eat-up any profit gained by waiting any longer…don’t wait…if you can buy, buy now…the market is the best for buyers that its’ ever been!  By the way, if you live in the T/C area of MN, take in our "Buyer’s Seminar," held on 9/22 at the Maplewood Caribou coffee location on White Bear ave. and 694.   Our presentation is short (45 mins.), sweet (you’ll learn how we can get you into a home for discounts as high as $50k to $100k or more in savings) and you’ll come away with a game plan and a strategy to win and to win big!  It’s free but it is RSVP.  So, call us today to reserve your seat…you’ll be glad  you did!

      Call 651-770-5000 and say "RVP for 9/22" (Leave us your phone # and we’ll confirm.)

Investors are sitting on the fence waiting for many of the builders who will be losing their homes in foreclosure.  As soon as they’re out of redemption, these strategists will buy 5-10-30-50 homes at huge discounts, rent them out and wait for the market to turn before selling at considerable profits.  You may be able to get in line ahead of them, we’ll show you how.

Christopher Snobeck wrote in the St. Paul Pioneer Press (8/’09), that Minnesota had 11,089 bank foreclosures in the first 6 months of 2009.  The inventory for these properties is huge and buyers can profit if they act now!

Do you know what banks are willing to take for their short-sale and other distressed homes?  You really can save from $50k to over $100k if you know how to work with them and most of all…how to negotiate with them.  It’s happening every day…don’t miss out, this is your opportunity to start building a huge equity position.  Remember, you make money in the Real Estate world on the buy!  If you don’t buy right, you’ll never sell right!

Have you read recently, where the banks have found another way to haul in the cash and stimulate the economy…by offering "payday advances"?  Wow, how enterprising, give the grunts a 50% advance on their next paycheck and make ‘em pay it back with exorbitant % tacked on.  They’ll stimulate ‘cha!

And Wall Street is posing to compete in the business of buying out Life Insurance policies…give you, say…40% of the face value of your policy now…right now…before you die.  Generous to the max, these lovely fellows.  Feeling stimulated?

I haven’t seen anything any bank is doing to get this housing mess fixed. And, if you haven’t noticed, now that the sub-prime defaults have started to slow up, the high end homes and prime mortgages are starting to  hit the market…great time to buy, tough time to sell.  The homeowner who knows they’re headed for some serious trouble needs to talk with us now…right now.  The sooner you get your home on the market the better your chances are to sell.  Homes that aren’t yet headed for the court house steps are selling.  But it has to be done right, priced right and marketed on thousands of websites…we’ll get that done for you!

Lenders are setting up myriad roadblocks to lending and you have to be working with ‘pro’s’ in the mortgage business.  We work with ‘pro’s’ that get-er-done!  There are some terrific deals, outstanding rates and ways to get financed…if you work with the right people.  Call us, we’ll introduce you to people who will help you help yourself to a brighter future, in a home of your own with a mortgage you can afford!

If you’re contemplating the sale of your home, call us to get a price-point range.  You need to know if you can exit with cash or whether the market condition will prevent you from breaking even.  You need the truth, not some song ‘n dance just to get your listing.  We find that many folks today can’t handle the truth, they’d rather be told they can get a price they want, even if it’s not realistic.  Then, they continue to discount the price, to get to a sale, only to find out they’ll have to come to the close with cash of their own…or…barely break even. Try the truth.  You’ll have less stress and have a better chance of selling.  Remember, when we stop to see your home and visit with you about your options, we have nothing to sign.  You get the information you need and all our contact numbers so you can get back to us, if you want us to help you market your home and get it sold fast!

Buyers, don’t forget…spend 45 minutes with us on Tuesday eve. 9/22 - 7:15PM, at the Caribou Coffee Shop on the corner of 694 and White bear Ave., Maplewood.  It’s free, informative and you could save yourself thousands of dollars by using our methods! RSVP to 651-770-5000.

See you again soon!

Ed