10/20/10

HAFA Closing Success!

Well, we just closed our first HAFA short sale last week- woohoo! From start to finish, we got a contract at the end of July, an approval letter in September, and closed in October. The whole thing probably could have gone even more smoothly if Bank of America hadn’t screwed up and kept us in both their traditional short sale system and the HAFA system. Still, that’s the fastest turnaround we’ve ever gotten from BOA, so success all around! The buyer is thrilled, and the seller was able to walk away with $3,000 toward her relocation expenses. Life is good.

Throughout this transaction, I have found BOA to be much more communicative and responsive than usual, which made life much easier on our end. I definitely recommend attempting to get your sellers into HAFA whenever possible.

Another of our short sales is set to close today, which is a huge relief. We listed the property back in September 2009, and we’ve had contract after contract fall through, usually due to BOA’s lack of responsiveness, and more recently due to errors on their end. One of these was that they refused to release the seller from future liability because he supposedly had a home equity line of credit. In reality, the second lien was part of the purchase of the property, and there was no HELOC- but how long did it take the powers that be at BOA to work this out? Anyway, I am very relieved that we are FINALLY closing that sale today!

So, a very successful couple of weeks in short sale closings, at least on our end- stay tuned though, I have a short sale near-disaster story (our buyers!) to share with you soon.

09/23/10

Are You REALLY In HAFA?

As many of you know, Bank of America is not the easiest company to deal with in terms of short sales. This has not improved dramatically with the introduction of Equator, though I do spend a lot less time on hold and faxing documents over and over again than I used to! I have done at least a dozen short sales, and right now I have two that I am actively working on. One was approved for HAFA, we’ll call that one Main Street, and the other was not, we’ll call that West Avenue.

So, with Main Street, the process was pretty straightforward and actually very quick. About a month after submitting all of the paperwork, we received an approval letter from Bank of America. It released the seller from the possibility of future liability, but the settlement date was too close for the buyer’s lender to be able to make it. We started asking around about the letter, and eventually we were told it had been issued in error. How could that happen?

Basically, there are two different Equator systems. They look the same on the agents’ end, but on BOA’s end, they are very different. One is for the traditional short sale, the other is for HAFA. You can tell which one is which by looking at the “My Properties” page on Equator. Under the “Lender” heading, it will list one of two things: BAC SHORT SALES, which indicates a traditional short sale, or BAC_HAFA, which indicates a HAFA short sale. The problem we had was that BOA had us submit all of our paperwork to BAC SHORT SALES when we were in the HAFA program! Luckily we got this sorted out and we are rolling forward. Main Street is set to close at the end of the month- fingers crossed!

If this happens to you, you need to get in touch with BOA immediately to get it sorted out. Before getting a HAFA approval, you should get a letter with a red header that includes information on the seller relocation funds and has space to fill in details about the transaction. Your seller will have to sign this and it must be sent back to the bank before a HAFA approval letter can be issued.

West Avenue, on the other hand, had its own set of problems. Repeated calls to PROMISS (the HAFA investor group handling that property) were hopeless. Eventually we contacted the negotiator’s manager for Main Street and asked him to look into the situation. Apparently BOA had accepted the primary lien on West Avenue for HAFA but NOT the secondary lien. No one at PROMISS was able to tell us this, and we would not have figured it out except that our traditional short sale negotiator called us and said the investors would issue an approval releasing any possibility of future liability if we dropped out of HAFA.

Armed with this knowledge, the seller for West Avenue has elected to push forward with the traditional short sale, in hopes that our negotiator was serious when she promised us a release of liability on both liens. If she wasn’t, he’ll probably have to let them foreclose. I’ll keep you posted, but remember: if you’re doing a HAFA short sale, make sure your lender is listed as BAC_HAFA!

09/10/10

Swimming Pool Woes

When I built my home in 2004, I knew I wanted to add a swimming pool in the backyard. My family and I have always enjoyed swimming, and it’s great to have a pool right there; it’s private, and you don’t have to endure a soaking wet car ride home from the community center or gym. We decided to have Anthony & Sylvan pools do our installation. They had a long record in the business, and they seemed to be a reputable company. Unfortunately, our experience with them has not been in keeping with our expectations.

The problems began at the outset; it took them ten months to build our $100,000 pool. Over the years, we have had several problems requiring repair, and each and every time we needed a repair, we had to fight them. Still, we had been pleased with the pool overall. The latest incident, however, was the last straw.

When we designed the pool, we wanted dyed plaster for the decoration at the bottom. We paid extra for this feature, and recently we’ve noticed that it has faded badly. When I asked them about it, they said the plaster simply fades and needs to be replaced regularly. When we designed it, at NO point did they EVER mention that the dyed plaster would fade. If I had known it would just fade away, I probably wouldn’t have had it in the first place! I’m dealing with this now while trying to sell the property, and while faded plaster might not be a big deal in the grand scheme of things, dealing with Anthony & Sylvan pools has been an absolute nightmare. Not only did they mislead us at the time of the design, they have been jerking us around constantly about fixing it, and I am just over it.

Have you had trouble with this company? Does anyone else have dyed plaster that’s faded? If you did, did your pool company tell you about it prior to installation? Please please let me know if you have any information or advice- I’d love to hear from you!

08/31/10

An Unexpected Surprise

It should come as no surprise to anyone with any experience working short sales with Bank of America that the deal I’ve been working on for about a year is still limping along with no end in sight. To be fair, we did originally get approved, but BOA refused to release the seller from future prosecution, so we had to restart him under HAFA. The saga continues.

However, I do have some significantly more optimistic news. Another short sale of mine, whose contract was submitted at the end of July and sent through the HAFA program, was approved yesterday! A mere month after submission to Equator! Now, this property did go through HAFA, and while I have yet to see any evidence that our seller will get the alleged relocation funds, but she is being fully and explicitly released in the approval letter.

There is one snag, of course, which is that we’re supposed to be closing on September 15, but I don’t think getting an extension to the end of the month to get the FHA loan through will be a problem. I had no idea that BOA was even capable of such alacrity. So, clearly, there is hope for the future, and perhaps HAFA can work.

In other good news, the crisis with the incompetent agent from last week has been averted. The contract’s contingencies have expired, and we’ve gotten a new offer on the property from an agent at a reputable brokerage, so it looks like the good luck is continuing for our clients. Perhaps it’s time to buy a lottery ticket!

08/20/10

The Case of the Absent Agent

There are so many things I love about being an agent, and one of them is the flexibility of setting your own schedule. I am my own boss, and if I need a day off, or even an hour to see the dentist or get a haircut, I don’t have to run it past anyone or try to cram it into my lunch hour. It’s wonderful. Of course, there are still tons of demands on my time that I wouldn’t have if I had a more 9-to-5 sort of job. I am always on call, and I frequently need to make myself available at a moment’s notice for my clients. This is occasionally inconvenient, but for the most part, I love what I do and I love being able to be there for my clients whenever they need me.

I travel a lot, but I also have a team. I have two people in my office, Anne and Abby, to handle phone calls and emails, and another agent, Alice, who can take people out when I’m not available. I can also work from wherever I am. I travel with my laptop and phone, and of course I am glued to my blackberry. I get all of the benefits of getting away and my clients are never neglected.

I’ve noticed this week that not all agents seem to feel this way. I have a contract with an agent for a house we’re selling, and the agent didn’t notify anyone that she would be out of the country. I don’t know where she went, or when she’s coming back, all I know is that her client’s home inspection contingency lapsed and I’ve been getting the run around. I finally got a phone number for an agent who’s supposed to be handling her deals in her absence, and he had no idea what property I was even talking about when I called! Her lender won’t update me on where we are with the financing contingency. I finally got a hold of the title company rep, and he told me that this buyer has already missed out on a property once! I’m in a tough spot- I don’t want to send HOA documents for fear that the deal will fall through and we won’t get them back, and I don’t want to put my seller out financially.

Earlier this week, we lost a buyer on a short sale. Once again, the agent left the country without notifying anyone, and has been completely out of touch. When he finally got around to returning our emails and phone calls, he said the buyer couldn’t meet the bank’s new price. Not that it mattered, of course, because the deadline had already more than lapsed on Equator!

The linking thread between these two incidents is the same; neither agent worked with a reputable brokerage. I can’t imagine any agent in my office leaving the country without at the very least notifying the broker of her absence and finding another agent to keep an eye on her clients. There was no one to contact when things went wrong, and of course we had no way of even attempting to get in direct contact with the buyer. What’s really frustrating is that these are the sorts of nightmare stories people spread and give the real estate business a bad name. Those of us who act professionally and make an effort to serve our clients to the best of our ability end up struggling to hold a deal together when the other agent is unprofessional and discourteous, not only to their clients, but to fellow agents.

I suppose the moral of the story is this: investigate your realtor and their brokerage. Find someone with a solid reputation, and preferably someone whose business is built on referrals. Otherwise, it could cost you. Even if the buyer for our traditional sale property comes through, she still missed out on the chance to have a home inspection done and have the seller pay for repairs, which could be costly in the long term, all because her agent essentially skipped town. Do your homework, and you’ll not only be doing yourself a favor, you’ll be helping out the agent on the other end of the transaction.

08/16/10

Dealing With HAFA

Well, obviously I didn’t get right on explaining the HAFA program, and that’s largely because I decided to see how it would actually work. I am now handling two HAFA short sales, and let me tell you, it’s still not easy!

Here’s how it’s supposed to work. Homeowner struggles with payments and is underwater on the loan. Homeowner contacts her bank, submits a ton of financial paperwork, and enrolls in HAMP, the Home Affordable Modification Program, which seeks to bring payments down so that the homeowner can afford them. If the homeowner still can’t make her payments, she is then eligible for a HAFA short sale.

This short sale is different from a traditional short sale in several ways. First of all, the bank is supposed to decide in advance of receiving an offer how much it wants for the property and then give the agent 120 days to market the property at that price. Once a suitable offer is received, it will be processed quickly. Secondly, the homeowner is supposed to receive up to $3000 relocation assistance at closing. Finally, the homeowner is to be released from all future prosecution related to the property.

The program itself is great, but its execution is less so. Part of the problem could be that my HAFA properties are all with Bank of America right now. So far, two of these properties appear to be moving through the process smoothly, though I have yet to get a sales price or any of the properties before listing them. The biggest frustration is trying to talk to BOA about these deals; they rely on Equator to store the Third Party Authorization, but this gets automatically deleted if you don’t upload an offer within X number of days. I waste a lot of time re-uploading paperwork.

The third property is quickly becoming a disaster, mainly because my clients were kicked out of HAFA with no notice! We didn’t find out until we got a counter from the bank asking them to pay $10K cash to get the deal to go through. The sellers are an older couple who were forced to move for health reasons and leave their jobs. They now live with their son in another state, but HAFA is very strict about residency requirements, so if your clients haven’t been living their for 90 days, for any reason, forget about it! The request for money is galling, as these sellers are on a fixed income and blatantly cannot afford payments. It’s ridiculous!

I will keep you updated on my other HAFA sales as they progress, and I’ll be sure to let you know the fate of those unfortunate sellers who were rejected by the program.

08/03/10

Welcome To Short Sale Hell

Today I am at the end of my rope.

I have been trying to complete a short sale on a property in Martinsburg since February, and today it fell through. This is frustrating on so many levels, not least because of how avoidable this disaster was.

The primary lien was with Wells Fargo, and the secondary was with Bank of America. Wells was great, very communicative and easy to deal with. Bank of America was, well, Bank of America. Wells would not negotiate the payment of the secondary lien directly with BOA, so we had to go through Equator. Wells did, however, process the primary on their end and issue an approval letter pending receipt of the approval from the second for a payment of $3,000.

The $3,000 payment to the second lien is standard; I have never processed a short sale in which the second got more than $3,000. In this case, the primary lien was a Freddie Mac loan, and Freddie Mac guidelines state that the secondary lien holder cannot receive more than $3,000 compensation from any source.

Bank of America dragged their heels, and our negotiator claimed that the mortgage insurance company wouldn’t take less than $12,000 to release the lien. Realizing we were at loggerheads, I contacted the mortgage insurance company myself directly. They informed me that no only had they divested themselves of any interest in the loan four months ago, but that they had sent repeated emails to Bank of America, our negotiator and her supervisor informing them of this. Once I told our negotiator, Marianne Ems, that we had contacted the MI company, she ceased responding to phone calls and emails and declined the sale.

Still undeterred, I started over, and resubmitted everything to BOA, with only weeks go on our foreclosure date. Wells told me that they would definitely postpone the foreclosure again, but only if we had an approval letter from Bank of America. The pressure was on.

Bank of America’s short sale department assured me that our case would be expedited. Instead, it languished in Equator limbo. Phone calls and emails to our negotiator and her supervisor when unanswered. I uploaded the foreclosure letter and the letter from Wells stating that all we needed to proceed was an approval from Bank of America. I told them about how our previous negotiator had lied to us, and pleaded with them on the grounds that if this property went to foreclosure, they wouldn’t even get the $3,000.

Today, Sam White’s office called, and they have foreclosed on the property.

What really makes me angry about the whole thing is not that all of these months of work have come to nothing and we are not getting paid, it’s how badly Bank of America screwed our sellers. There’s no nice way to put it. These folks tried to do the decent thing and do a short sale to save their creditors money. This means that they have many more months of unpaid mortgage notes on their credit score, and since Bank of America wouldn’t cooperate, it’s for nothing. They should have just let Wells foreclose outright, and saved some shred of their credit score. For all of Bank of America’s talk about doing the right thing and making the process work, it doesn’t really seem like they are committed to doing right by anyone in the short sale process, least of all the homeowners and agents who have so much invested.

04/14/10

Short Sale Changes and Launch of The Giving Post

A lot has changed in the short sale market since we posted our FAQ in December! In February, I completed the Short Sale and Foreclosure Resource Certification, which offered a few new tools for dealing with the short sale process more efficient. Since then, however, one of the biggest changes has been the transition to Equator by Bank of America and GMAC. This is an online system that coordinates our efforts with the bank; the bank assigns us tasks like uploading the contract, and we can send messages to our negotiator and closer. It tracks our messages, and seems to have reduced the response time for inquiries. Because we’re able to upload our documents directly, we no longer have to fax hundreds of pages and wait for the bank to scan it into their system.

It was confusing at first, as the system is not very user-friendly and the technical support is nonexistent, but since then it’s been effective. We are preparing to close our first two sales using the new system, one with Bank of America, the other with GMAC, and so far it’s been a lot less painful than the months of phone calls and lies about progress.

The short sale process itself may also be getting easier. The Treasury's new guidelines on short sale transactions through Making Home Affordable went into effect on April 5, though they have yet to update their website. I’ll be sure to update you once they do, but of course, as always, if you are in trouble with your mortgage, CALL ME! The bank doesn’t want to foreclose on your property any more than you want them to.

I am also excited to announce the launch of my nonprofit, TheGivingPost.org. The Giving Post is a website where individuals can donate money directly to individuals and families in need; people who have suffered catastrophic financial disasters related to the prolonged illness of a child or breadwinner, or who find themselves struggling to get by for reasons beyond their control. Rather than giving to an organization where only a fraction of each donation goes to the person in need, 100% of every donation to The Giving Post goes directly and instantly to the recipient.

This project has been a long time coming; most of you have been hearing about it for years, and I can't tell you how excited I am to have it up and running at last! I hope that you will visit our website and consider making a donation to these very worthy individuals, or even toward the expenses of the organization itself.

12/1/09

Short Sale FAQ

What is a “short sale”?

A short sale is a sale in which the bank that owns the mortgage agrees to allow the owners to sell the property for less than the current value of the mortgage- an amount “short” of the total amount due. The seller is then released from his or her obligation to pay the balance on the loan.

Why are short sales so common?

As you have likely heard in the media, home prices have been dropping away from the tremendous highs they reached over the past few years. Part of what drove prices up was the availability of adjustable-rate mortgages and interest-only loans that allowed people purchase homes they likely could not afford. These types of loans offered buyers low payments for a fixed term, usually of two years. After two years, the payments increased, either because the interest rate on the mortgage increased or because the buyer was now required to pay on the principal amount of the loan, rather than just the interest on the loan. The increased payment left many borrowers struggling to pay their mortgages. When combined with the effects of the slump in the job market, which left many homeowners unemployed or underemployed, the effects were catastrophic for the housing market. Large numbers of borrowers got behind on their payments, most ending up “upside down” on their mortgages, meaning that they owed more on the mortgage than the home was actually worth, thus many defaulted on their loans.

When someone defaults on a home mortgage, the bank has the right to foreclose on that property, meaning that the bank takes ownership, evicts the former owners, and usually attempts to sell the property to recuperate their losses. However, since banks are not in the real estate business, this process is time consuming and inefficient, especially because these homes have often suffered neglect due to the poor financial situation of their former owners. A short sale is often the preferred alternative to foreclosure, because the bank likely gets a better price than they would get on a foreclosed property with less hassle on their end. The former owner is able to stay in the home until it is sold, giving him or her time to make new arrangements. The buyer has a chance to get a great deal on a property, provided they have the patience to wait on the paperwork.

There are exceptions to this, of course; not everyone selling their home as a short sale is in financial straits. For example, if you purchased a home at the height of the market, intending to stay for some time, and ended up being transferred by work to another city, you might need to sell your home when values are down. If you would not have the resources to make up the balance on the mortgage after the sale, a short sale might be a wise choice.

How will a short sale affect my credit and my ability to get another mortgage?

This is one of the major benefits to a short sale over a foreclosure. A short sale is bad for your credit, but not as detrimental as a foreclosure. A strong credit score is important, because whether you lose your home in a short sale or a foreclosure, you will be unable to get a new mortgage for about three years; in that time you will most likely be renting, and you will want to bring the best possible credit score to your potential landlords. In the long run, a short sale is far easier to recover from than a foreclosure.

If you are having trouble making mortgage payments, it is best to talk to someone sooner rather than later. Kathy and her team are not just there to sell your home; because she believes creating a long-term relationship with her clients, Kathy is more than willing to work with you to find a solution, whether she sells your home or not.

Should I consider buying a property listed for short sale?

If you are looking to purchase a home listed as a short sale, prepare to wait. The entire process can take months. It can take 2-3 weeks for the lender to even indicate that they have received the initial offer and begin to decide how much they are willing to accept for a particular property. Once the bank responds positively, the real work begins. The next step is a home inspection, though foreclosure and short sales are sold as-is, since the current owners are not in a financial position to do repairs and the bank will not pay for improvements. This can be particularly tricky for customers with FHA loans, which have stringent requirements for the condition of the home purchased. The neglected state of many short sale properties is an obstacle requiring patience, dedication and the expertise of a seasoned realtor.

Kathy and her team have worked extensively on both ends of short sales, and she knows what works and what doesn’t.

Can I sell my property as a short sale?

Only your mortgage lender can decide whether your home qualifies for short sale, however, there are a few basic guidelines that can let you know whether this avenue is worth pursuing. The most fundamental requirement is being upside down on your mortgage; i.e., the amount of your mortgage is greater than the home’s current value. Beyond this, the requirements become a bit more stringent. The bank will not discuss options unless you are behind on your payments, and they may want a valid reason for leaving the home, such as a work transfer to a new city or state. You will need to provide financial documentation and letters describing financial hardship. Banks also often prefer that you have made an attempt to renegotiate your loan prior to applying for short sale.

You should also know that a short sale may not fully release you from all financial obligations; if the bank stands to lose a substantial amount of money, they may require you to sign a promissory note for a portion of the outstanding balance.

Please note that you cannot apply for a short sale without an active offer on your property. Lenders do not deal in hypothetical situations, but an experienced realtor can guide you through this complicated process. Kathy and her team have considerable experience working with banks to arrange short sales and marketing homes for short sale. Whether you are leaving the area or struggling to make payments, her expertise can help make the process as painless as possible.

I’m behind on my payments- when should I seek help?

Yesterday! The sooner you seek help the better. Kathy is not just there to sell your home; she and her team believe in developing long-term relationships with their clients. She will work hard to find solutions that keep you in your home, and she has experience working with a variety of lenders. If you have no choice but to sell, she can help you stay in your home as long as possible to give you the opportunity to get back on your feet and find a new place to live. The sooner you seek help, the more options you will have, so don’t wait until two weeks before your home is to be auctioned on the courthouse steps.

How long does a short sale take?

Short sales can take weeks and months to process, so patience is key. The name of the game is “hurry up and wait.” Most banks are heavily backlogged, so there is little that can be done to expedite the process, aside from making sure that the proper documentation is sent in a timely manner. This process can be frustrating for both the buyer and the seller; it can seem as though nothing is happening for weeks, and then suddenly a property is ready to close. A good realtor will keep you apprised of the situation. Kathy and her team know through experience when to push, and when pressure will only hinder progress.

If you are selling your home as a short sale, it is imperative that you bear in mind at all times that your home is for sale; delaying moving preparations will only cause you greater anxiety when the closing date finally materializes.

If you are considering purchasing a short sale property, make sure you have the patience to wait out the process; it is not a good option for buyers looking to move into a new home as quickly as possible.

What about bank-owned properties?

A bank-owned property is a property the bank has foreclosed on, evicting the previous owner for failure to pay his or her mortgage. These properties are not always in very good condition and are sold as-is; they may require serious work to bring up to a reasonable standard. Despite these difficulties, they are an excellent option if you are willing to put in some work to get a bargain. The state of these properties is due to the financial straits of the previous owner and his or her reaction to being evicted from his or her home. Banks are rarely inspired to do a great deal of maintenance on these homes, and so they also suffer from the neglect of being unoccupied. With a bit of patience and care, however, they can be restored into lovely homes full of personal touches.

Purchasing a bank-owned property is also time consuming, as again, banks are backlogged dealing with these properties, and FHA loans can complicate matters due to stringent requirements regarding the condition of the home, particularly in regard to environmental conditions like mold.

2/25/09

Back from the Brink!

Recovery from knee replacement surgery has been an interesting and exhausting experience. It all started last June, and I have been �hobbling� around on this injured knee since then. Canes, Crutches, Surgery, Rehab; all now integral parts of my life. BUT I am BACK! Stiff, rocky, and fighting thru. And boy, what a market I stepped back into. Rates are now firmly in the 4�s, (with the investor rates in the high 5�s), mortgage companies are loosening up the restrictions, and inventory is out there. Now really is a great time to buy.

If you�ve ever thought that adding investment properties to your portfolio is important, there couldn�t be a better time to be considering that purchase. Although, economic indicators suggest that prices will continue to fall thru next year, the interest rates today compensate greatly for that. That is not to say however, that getting some of these great deals on foreclosures is easy, because, as you have read my earlier blogs, short sales and foreclosures have their own set of complications. But the deals are out there and can be found if you are willing to be persistent and dedicated. Banks are finally responding quicker on the short sale contracts being offered on homes, and we are able to finally get them to close. That opens a world of choices for the wise investor.

The deals are also out there for the owner-occupant buyer. With rates as low as they are, and prices where they are, it is almost less expensive to buy in today�s market then it would be to rent. And even when you are selling in a down market, the purchase in a down market offsets that loss. It is all in what you are looking to do. So, like my knee and recovery, I think we are heading �Back from the Brink�.

Kathy

9/17/08

Why Can�t We All Get Along?

For the past few months, I have been working with some of my very best past clients. This couple does not have a mean bone in their body so you can imagine what I was thinking when I got a crying phone call from them. I knew something was wrong. They started telling me the story about some nasty neighbors that they have been dealing with. These clients of mine have lived in their home about 5 years and finally decided to put in the pool they had always wanted so their kids could enjoy their huge backyard. Well, saying that the neighbors were not happy about this pool would be an understatement. First, these neighbors did everything in their power to block my clients� attempts to put the pool in. When that failed, they took action that was more aggressive. After the pool was complete last summer, any time the children were out in the pool the neighbors would call the police for �noise violations� �even during the day! By the way, you should know that their property is located on 2.7 acres so it is not directly next door to the neighbors. They often yelled across the fence at the children every time they were in the yard, on the swing set, or in the pool. The police were called on numerous occasions. They taped the sounds from my client�s yard, and took them to court. My clients were forced to obtain legal council to defend their right to play in their own yard. The harassment went on and on, until finally I got the weepy phone call. They just couldn�t stand the stress anymore and wanted to move out of the neighborhood, away from their neighbors. Well given that the market is what it is, and that they just took out another loan on their home to put the pool in, we could not sell their current home. We decided to rent the home and find them another home, in a nearby neighborhood. That is just what we did. Then, you would think the harassment would stop. The neighbors were getting what they wanted; they forced my clients to move their �noisy� kids away. But did that stop them from continuing to insert themselves in my client�s lives and cause trouble? NO. First it started with an �anonymous� phone call to the lender doing their new loan. The call told the lender that my clients were committing loan fraud and the loan should be stopped. When that didn�t quite work they way they hoped, they called the listing agent of the home my clients were trying to buy and left a nasty message, threatening her, that my clients were committing loan fraud, and that if she sold them the home, she would be in big trouble. How they could have known the details of what my client�s were doing is still a mystery. I can only say that perhaps they had listening devices to be able to eavesdrop on my client�s. I have to say, in 23 years of real estate, I have never seen anything like it. We were astounded to say the least. The good news is that with everyone working together, we were able to move my clients to their new home. We lost the tenant for their current home because of the delays that the neighbors caused, so now we are scrambling to find a new tenant. We hope the tenants we find will be more acceptable to the neighbors. Now here is my question to all of you: why can�t we all just get along? Why would someone take that much time and energy out of their life to annoy and harass a neighbor? Life is short, and that kind of negativity is terrible for your health. Sure, there are EXTREME situations where a neighbor is loud and obnoxious, but wouldn�t it be better to attempt to just TALK to your neighbor rather than scream, yell, call the police, and take them to court? If you have a neighbor who just isn�t getting along with you, try a block BBQ or take them cookies instead of legal action. Your life will be happier and so will theirs. Just my opinion of course!

Kathy

8/19/08

JAIME AND MARY, THIS ONE�S FOR YOU!

Is 666 really all that bad?

I met Jaime and Mary when they registered on our RE EXPERT site. They were relocating from California and were looking to find a unique, contemporary home here in Northern Virginia. After extensive emailing back and forth, they flew in to town to check out the area. At first, they were very disappointed at what the contemporary houses around here looked like. The houses were older and less �modern� then they were hoping for. Although we saw a few that they could live with if they totally renovated them, they were definitely NOT finding their dream home. They went back home and we continued our email search.

They came back into town a couple more times and still no match. Then 666 29th Road in Arlington came on the market. (Yes, the address really is 666!) It seemed perfect online, so I dashed off to see it in person to let them know if it was something they would like before they made another trip out here. I thought it was the first home we had seen that was close to what they were looking for. It was one of the most unique homes I had ever seen.

They could not come out to see it for a few weeks so we anxiously watched to see if it would still be on the market. When that day finally arrived, they had found a few other homes they also wanted to see, so we made our plan and went out to see them all. Low and behold, they loved the Arlington home, but they also liked another one as well. They went off to think about both, and called me to ask if they could come back out after dark to see both again with all the lights on. They were torn; do they choose the one in Arlington that was in a more urban location, had great views and was so close to DC? Or do they choose the one in suburbia, with lots of land and trees and nature? They spent the next day driving around both homes to see which one felt �just right�. When they made the call to me, they said that they really thought the one at 666 29th Road was the right choice for them.

Now starts the �interesting� part. This particular home was going to be sold through a relocation company. I have sold many homes like this so I explained the process to them and what we were going to have to go through to get this home and they were real troopers; they jumped right in and took it on. Little did we know, that it wasn�t going to be the Relocation Company that would be the challenge, it would be the Listing Agent, the Owner, the Mold Tester, and lastly the Appraiser.

Jaime and Mary had just one concern when they were negotiating, and that was that the deck appeared to be sloping and might need to be replaced. We were told by the Sellers that the deck was inspected before they put the home on the market. The only problem was that no one could figure out how to get us a copy of that report. So after many days of vigorous negotiating, we finally agreed on a price with a credit to take care of the deck.

Jaime and Mary hired one of the best home inspectors in the area, as well as a separate mold inspector. When the mold results came back, there were indications of toxic mold evident in the master bedroom and attic air. When I asked the mold inspector about how that result was determined, all he could do is refer us to the lab that did the testing on the air. He WAS however available to come over and give us a quote on �remediating� the mold. When he came back to do that, he again expressed how there was no visual evidence of mold, so the only thing that could be done is to take down walls and look behind the walls. Needless to say, it was going to be several thousand dollars to do that. Still, we could get not answers on the testing, accuracy from the lab. Jaime and Mary decided to contact the home inspector, and ask his opinion. It was his opinion, if they just had the air ducts cleaned, which were filthy, that might be the real issue. They decided to ask for the ducts to be cleaned which only cost approx $475 dollars.

When we presented this to the listing agent and the seller a whirlwind was unleashed. The Seller and Listing agent kept insisting on talking with the mold inspector, the lab, and demanding �proof� of this toxic mold. We kept insisting that we couldn�t get that information for ourselves, let alone them, and ALL we wanted done concerning the mold was to have the air ducts cleaned. They argued and argued. The mold inspector refused to take any of their calls since they were so unreasonable on the first call. This made the Seller and Agent more and more agitated. Hours on the phone and nasty emails with both the seller and agent, we could not get them into the mindset that all Jaime and Mary were requesting were to have the air ducts cleaned. Finally, they relented and agreed to clean the ducts.

Three other issues on the home inspection needed to be fixed: a missing section of siding that blew off the back of the house, cracks in some of the foundation walls, and there were several broken windows and broken window hardware. Again, the sellers wanted to argue and Demanded pictures of the items broken. The listing agent would not even go over to look at the problems herself. She kept insisting that I drive back over and get her pictures for the seller. I told her it would do no good for us to provide the pictures if the sellers were already questioning the repairs. They should go over with a contractor of their choice and get estimates themselves on whether they repairs were necessary or not. Several more hours on the phone and email, they finally agreed to handle those themselves. Anything that a listing agent usually handles was being constantly pushed off on us. She often called and told my assistant, Anne, to handle her details since she didn�t have an assistant and was too busy to do her part. It was an ordeal.

Then the lender ordered an appraiser that came from the Richmond area, which was a big concern for me. I was worried that he didn�t know the area, nor did he understand the difference in an architecturally custom designed home and a regular home. I mentioned this to the listing agent and asked her to be sure to have the appraisals her seller had when she let him into the house. She knew the area well, and to protect the seller and the value they wanted, she should have made sure the appraiser had what he needed. Well, she didn�t. First she argued with him on timing and wanting him to drive to her first to get the key. Finally she arranged to meet him, but actually just left the key for him under the mat. So he ended up using all old and small comps, and wrong information. Naturally, the appraisal came in low�100,000 dollars low! The sellers were furious, as were the buyers. We were all wondering why the agent didn�t get him the proper comps. The sellers were certainly not going to lower the price 100,000 with a faulty appraisal, and the buyers couldn�t get a loan with that appraisal. Not to mention, the appraiser charged Jaime and Mary $450 dollars! The sellers had 3 appraisals done for the relocation company, and the value was way above the actual contract price. The Sellers agreed to pay and have another appraisal, with a local licensed appraiser. Of course the value then came in above sales price. When we questioned the other appraiser, he refused to refund the money to the buyers, and insisted on standing by his appraisal. We were able eventually to get the money refunded to Jaime and Mary by the lender.

Whew. Finally, we could go to settlement. We were able to get through the settlement without any further issues, with only one thing outstanding. The sellers had repaired several of the windows that were broken, and one had been on order for several weeks. It had arrived but was the wrong size. They didn�t have that window done at settlement, but showed us that it would be done in the next week. It was. Until it rained. And rained hard. I get a call from Jaime saying all the windows were leaking! We were able to get the window people back out to fix the leaks and so far the home is dry. Mary and Jaime are moved in and seem to really love their home. They even applied to the post office to get the address changed from 666!

5/14/08

FORECLOSURE, FORECLOSURE, FORECLOSURE!

I am now unofficially �the foreclosure specialist�! That said; let me tell you first what a toll purchasing a foreclosure takes on you, the buyer. Once again, my clients were the selected buyers for a foreclosure property in Bristow, and it took no less than 4 weeks to actually get a proper ratified contract from the seller (the bank). The first and second attempts at sending us the contract, the asset manager, who for all extensive purposes is �the seller�, failed to initial and sign the contract in all the proper places. For those of you who do not know how that affects the deal, let me explain. Basically, in Virginia, real estate contracts are not enforceable unless they are in writing. Which, in layman�s terms, means that the seller or buyer can change their mind at anytime before the entire contract is fully signed and ratified. If we had waited for the legal contract to get back to us we would not have been able to even start the process for 4 weeks AFTER the seller had accepted our offer. That really delays our settlement and the entire process to get to closing. So, we did what was expected of us; completed the home inspection, appraisal, and title work, in anticipation of getting the proper paperwork from the seller. The listing agent in this case, at least was available to chat with us on the phone, but frequently just repeated how he could not really do anything to help, that the bank would do what the bank would do, and we would get the contract when he got it. (It never ceases to amaze me, how little the bank�s agents are willing to do to get these foreclosures to closing. I wonder if the banks know how they are being represented in the field).

So, after we finally got the contract, the loan was approved, and we were ready for settlement, we got �the call�. Our settlement company informed us that Sam White�s Office (the attorney that represents the bank) had not gotten them the deed or other paperwork they needed for our settlement. Sam White is one of two or three attorneys that represent ALL the banks in our area. You can not imagine how difficult it is to get the paperwork you need from them, let alone in a timely manner. I have yet to have a closing with them that went on time or without issues. I understand that they are extremely busy, but it is completely irresponsible to not attempt to get these deals to close as per the accepted contract. Their frequent response is. �We will get to it when we get to it�� Meanwhile movers, utilities, etc must be canceled and set up over and over, when Sam White�s office can not, or will not return calls, answer email, or let the buyers know when they can expect paperwork. In our case, the deed had not been prepared. I called and called, relentlessly, and finally got the person that handles deeds at Sam White�s office on the phone, and her response was, �You aren�t closing until Friday, it�s only Wednesday, you will have it on time�. I guess little did she know, or understand, that once SHE was done with the deed it had to go to the processor at the same office, who told me she takes 24 to 48 hours to review the deed before she sends it on to the bank for signature. That then takes 3 to 5 days to get back to our settlement company for the closing. Our �contact� person at Sam White�s office, who is the processor where the deed had to go, would not give us any reasonable time frame for setting up a NEW settlement time or date, since we were obviously NOT going to make our Friday timeframe. My clients had to cancel their closing, movers, washer and dryer delivery etc. with about 24 hours notice, with no assurance on when they could reschedule. Once again the listing agent was of little use. He was amazed that I was able to get as far as I did on getting information from Sam White�s office. He did offer that once the deed got to the bank, he MIGHT be able to speed the 3 to 5 day process up, but would not offer any guarantee that he could do anything. I had to continue to call and call, and insist that we get this closed as my clients loan lock was expiring on Monday.

Finally, a ray of hope! Rosalie, an attorney at Sam White�s office got involved. She was our angel. She helped facilitate the process, hustle it along, interacted with our processor at the office, and made things happen. Although we did not get to settle on Friday, we did get the closing done on Monday. She was truly the only person for the bank who had any urgency at all. I send out my sincerest thanks to her, both for myself and my clients.

The lesson learned here is when you are considering buying a foreclosure, having an agent who can and will pursue every avenue to get you to closing on time is critical. Waiting for the bank and the bank�s attorney to do their jobs will result in nothing but delays and disasters. I am here to help and have the experience to get things happening.

Kathy

2/27/08

Okay, enough education for the week! Thought I would just blog some idle chit-chat about my February in Real Estate. Wow, what a month! I have been dealing with a few foreclosures and short sales for the past month. So much work, with little return. Lot's of frustration on me and of course for the buyers who were excited about the homes they thought they had a chance to get.

The first issue involved a short sale to which the agent assured us, the bank would respond quickly. The townhome is in the Broadlands subdivision of Ashburn, and was in nice shape at a good price. Sure enough, when we put our offer in, the bank came back in less than 7 days with a counter offer we could accept. We signed off on the contract, and so did the seller. We only needed the bank's final commitment to the seller that they would indeed take the short sale. Well, fast forward 2 weeks later. Nothing from the bank, and nothing on the near horizon that indicates we will see anything from the bank. The listing agent has been told there is a "glitch" and is not sure when, if ever, we will get a commitment that the bank will accept and allow us to purchase this home. So the buyer and I are off again this weekend to find a town home that is neither a short sale nor foreclosure that might actually be available to purchase.

The second was a foreclosure in Sterling; Sugarland to be exact. We submitted an offer on the home after having spoken to the listing agent. We checked to make sure their office received our fax and that they were sending the offer to the bank. They confirmed that they had. We checked back in two days later to inquire when we might expect an answer from the bank. We were told we would have an answer by Tuesday the following week (it was Thursday). Tuesday came and went, and no response. When I called the agent's office again, I was told that not only did they NOT have our offer, they didn't even have the listing anymore. The bank had pulled the listing from them 2 WEEKS PRIOR to us submitting our offer. The Listing agent had so many listings they weren't even aware that they didn't have the one we were writing on anymore. Now, keep in mind, it was still in the computer as their listing when we wrote the offer. As of today, their sign and lockbox is still on the door of the home. They have no idea who the bank has assigned the listing to. I have no idea how a real estate office can be so incompetent that they do not even know which homes they have or don't have for sale. Not to mention that they would confirm with an agent the receipt of an offer without even verifying the property was still for sale. Unfortunately, this is what reputable agents are dealing with out here. There are so many foreclosures and short sales, that it is becoming increasingly more difficult to actually get an offer through. There are just so few "owner" owned properties in comparison.

So, all of you who are thinking of waiting to sell your home because of all the foreclosures on the market in your neighborhood, keep in mind that now might be the perfect time to sell. Agents are desperate for homes that they can bring offers to, can get answers to in a timely manner, and to go to settlement on once an offer has been accepted. Buyers are becoming increasingly frustrated with all of the bank's nonsense and are prepared to purchase "regular" homes in decent shape; ready and available to sell NOW.

So, if you've been thinking of waiting till the market improves ... DON'T! Give us a call. Let me come by and chat with you about what Kathy Colville and Associates can do to get your home sold. You'll be glad you did.

Kathy

2/27/08 Foreclosures

Okay, if I didn't lose you over the "SHORT SALE" process, let me share some information about buying one of the numerous foreclosures out there. Unlike the SHORT SALE, the foreclosure homes are readily available to purchase. The bank has already completed the foreclosure process and now has possession of the home. They have placed it on the market with a local Realtor and it is available to potential buyers. Foreclosed homes are usually priced tens of thousands of dollars less than what comparable homes in the neighborhood are selling for. So what's the problem?

First, buyers (even those that are very handy) need to understand that these homes are usually in terrible condition. They typically need a lot more than just paint and carpet. I have been in some that have no heating or air conditioning systems. Some have no appliances. Bathrooms and kitchens can be completely trashed. Exterior items like windows, roof, gutters, and trim have often been neglected for years. One even had cockroaches scattering everywhere when I opened the door. Most of these foreclosures are not for the faint at heart as they often need upwards of $20,000 worth of repairs to make them livable. Most buyers of foreclosures ask how they can get funding for repairs included in their offer, or mortgage, and the answer to that is, "You can't". As of right now, there are no mortgage programs out there that will allow you to have cash back at closing for repairs. (Well, there is one that I know of, but I've yet to be able to get the details from any bank on how to actually obtain the loan). As a buyer, you need to have funding available to make the repairs after you pay for the purchase.

Now for the selection process. It can be a wild ride! As I mentioned above, be prepared for what you will find. You'll also need to dress appropriately. Many of these homes have been winterized, meaning all the utilities have been turned off. Without gas or electric there's no heat. If you're not dressed warmly, it may be difficult to stay in a home long enough to see what repair work will be needed. Also, it's smart to bring along a flashlight. Without electricity, there are also no lights. Basements can be really dark and scary. It is very important that you are able to really assess the home, and determine what might be needed to repair it. These homes are ALWAYS sold AS-IS, and banks WILL NOT fix anything. Buyers are permitted to complete a home inspection, but it is almost always up to you as the buyer to pay to de-winterize the home, put the utilities on in your name, and to re-winterize the home when the inspection is complete. Also, the bank will not arrange for or bear the cost of termite inspections or treatment. It's important that these inspections be done quickly after the bank accepts your offer (usually within 10 days) thereby allowing you to void the contract should you find out there is too much repair work to be done. Rarely will the bank give you a credit at closing to make repairs, and your mortgage company will not let you have any cash back at settlement for repairs above what it actually costs to close. The bank will also not pay to correct any homeowner association violations. Everything is up to you as the buyer.

The process to view these homes is a treat as well. Instead of the usual lockbox that is used to allow agents to access homes on the market, listing agents with foreclosures often put a combination lockbox on the door. That means that our electronic key will not work like it universally does for the typical box. As such, it is up to the selling agent to obtain the combination code from the listing agent for each and every home you want to see in order for us to be able to open the door. That is of course, if you can actually reach the listing agent or that they return your call. Often agents with foreclosure listings are getting hundreds of calls a day regarding these properties and as such, may not get around to calling back with the code. Or they may use a centralized showing center to give out the code. I can't tell you how many times I have called the service only to be given the wrong code for the house. Unfortunately, it's not always easy to get in touch with the agent to determine the correct code. Therefore, be prepared in advance knowing that even though we plan to see a long list of foreclosures there may be many homes we aren't going to be able to get into.

When you finally find a home you like, I then have to find out from the listing agent if it is still available. Even though it is showing available online or on our MLS, many times a foreclosure will already have numerous offers on it that the bank is reviewing, or they may have an offer that they have verbally accepted or that they haven't finished the paperwork on it yet. If we can reach the listing agent, their phone messages aren't full, and they finally call you back, we can then get the contract to them. The next step is to wait for the bank to respond. Some respond in a couple of days, others take a week or two. Meanwhile, additional offers can be coming in. Once the bank reviews the offer, makes any counter offer, and you as the buyer agree (all this is done verbally), then the bank will send out their addendum which must be reviewed and signed by both parties. Again, keep in mind that additional offers can still be coming in. Once the buyer signs all of the changes and the addendum, it goes back to the bank. The bank may take another week or two to sign their end of the paperwork. If you manage to get through this whole bank process being the only contract, and the bank ratifies it, you're off to settlement.

The bank often needs at least 30 days to get a home to settlement. At the last minute there can still be issues regarding the recordation of the foreclosure or various other title issues. Settlements can, and often will be delayed by the bank for days or weeks. When you finally get to the settlement table, and the paperwork is correct, you can close.

Although there are really good foreclosure deals out there, BE PREPARED. As you can see, the buying process can be difficult and exasperating. Having an experienced Realtor by your side, to answer questions, and to deal with the bank and listing agent on your behalf, is a great perk. I'm here to help!

Kathy

2/5/08 Short Sales

Lately I've been receiving calls almost daily from past clients, friends, and new clients asking me to explain a "short sale", and how they go about getting one. I am going to attempt to try and explain what it is and it works (at least my understanding of the process).

A short sale is needed when the owner of a home is in financial distress, having difficulty making their mortgage payments, and unable to sell the home for what they owe. The owner usually has to be a few months behind on their payments already, and the mortgage amount more than what the home will sell or appraise for. As such, the owner would not be able to sell the home at such a huge loss, nor could they refinance it, since it would not appraise. In these instances, the owner would then contact their mortgage company and begin a process called a "short sale". The owner of the property is basically asking the mortgage company to allow them to sell the home for whatever they can get for it, and the mortgage company agrees to take what the sellers can get for the home, rather than what is really owed. The seller nets zero, and the mortgage company agrees to takes a loss instead of foreclosing on the home. A foreclosure can be more expensive and cost the mortgage company more in the long run, and this is why they often agree to work with the owner instead. It has been my experience that the owner has to be in legitimate financial distress, and not just wanting to get out of their mortgage obligation, for the mortgage company to consider them as a candidate for a short sale. The mortgage company usually requires the owner to fill out and disclose their entire financial picture to them before they will be considered.

The process usually goes like this: The owner gets into financial trouble and stops making their mortgage payments. They know the home will not sell for what they owe. They then contact the mortgage company and request the financial package to be considered for a short sale. The mortgage company provides the owner with forms requesting detailed financial information, and records on the account that they are working on doing a short sale. Part of that process is the owner getting in touch with a Realtor who will do a competitive market analysis, advise the Owner on what price they can get for the home, and put the home on the market at that price. The Realtor will continue to adjust the price until they finally get an offer on the home. That offer has to be contingent on the bank agreeing to the short sale. The language you will see in listings states, "subject to third party approval". That means that the owners may be agreeing to sell the home at that price, but the bank is ultimately the one who has to say yes to take that loss and to allow it to close.

Once an offer is received, the Realtor and Owner will submit the offer to the Mortgage Company, along with all the financial paperwork the bank has requested from the Owner, and an approximate net sheet showing how much of a loss the owners are asking the bank to take. The bank will then take the package under advisement, and will then usually order an appraisal to see how close or far off the offer is to the market value. A decision by the bank can take up to 8 weeks. During this time the home stays active on the market, and can receive multiple offers. All will be submitted to the bank for consideration. The Listing Agent, will usually not disclose to the Selling Agent(s) the offer amounts they have on the property, so the prospective buyers really have no idea if their offer is the top offer or not. Then, even if they are the top offer, they have no guarantee that the bank will agree to accept it. For whatever reason, banks sometimes decide not to consider the short sale at all, and begin foreclosure instead.

So, what does that mean when you are trying to buy one of these homes? Well, it means that they can be very difficult and time consuming, and in the end, you may not be able to purchase the home. Many of my clients feel the price advantage is worth waiting for. and that's great, since you can, in certain instances, get a very good deal. The problem here is that you have no way of knowing if you're going to get the home after that 4 to 8 week waiting period. You cannot lock your loan, nor can you make any certain plans about moving. Meanwhile you could be losing out on other good deals that are available to buy.

Now having said that, there are some "short sales" that are more readily available to purchase. They are the ones that state, "short sale approved at this price". This means that the bank/mortgage company has probably reviewed the financial papers of the owner, and has received at least one offer. They have gone through the entire process I detailed above, and approved the amount of loss for the contract they have received, but the original buyers from that contract are no longer interested. The good news is that now the listing agent has a baseline on the loss the bank will consider. The next contract that comes in will usually get a response in 2 weeks rather than 2 months.

Another statement you may see in a listing is "short sale approved". This usually results when the bank has looked at the financial papers of the owner ahead of time, and has already assigned a contact person from the bank to handle the transaction from sale to closing. The Owner and Realtor are then in contact with that person and can get much quicker responses. As such the whole process is shortened by several weeks.

Even in these two instances there is really no guarantee that the buyers will get a response in a timely manner. You have to be extremely patient.

"Short sale" homes also often have to be sold completely AS-IS. Once the bank approves an amount to lose, they will not cover anything else that may come up. Usually the seller is not in a position to fix or repair anything either, so the buyer must be sure that whatever repairs the home needs, they can afford to make themselves. Also, the process to closing can be more complicated and in that take a longer time. Many times, settlements are delayed over and over by the bank in order to get the paperwork straight or approve it, and for the Title Company /Attorney to convey good and marketable title. Flexibility from the buyer is the key.

I am sharing this with you all, not only so you can be somewhat educated about this process, but to understand that we as your "buyer agents" have little or no control over this process. It is completely out of our hands. We can only keep you informed as the process progresses. Should you have more detailed questions about this, or need to find out how to begin a short sale, do not hesitate to call me. I would be happy to help.

1/28/08 Finding your perfect home!

Okay! Here I am Blogging. What the heck is that? I am not sure that I even know, but here is my best try at this, and hope that I don't offend anyone or get fired. LOL.

First of all, the market has finally picked up! We still have boatloads of inventory though, so if you are a seller, it is still taking time to get a buyer through your home, one who is ready and will actually make an offer, but at least we have some "tire kickers" out there. The market has been through a couple of months of having so few buyers out there even looking, that some Sellers haven't had even one showing in weeks. Finally we are seeing some relief in that area!

Now for the bad news. There are hundreds of foreclosures and short sale listings for sale out in the market, making our inventory very inflated. It has become incredibly difficult for buyers and Realtors to find the "Owner Sellers", those who have homes in good condition and ready and available for sale. We as Realtors have to sort through, sometimes hundreds of listings, to find the handful of homes that are actually readily available for sale. When I have a buyer, it is extremely difficult these days to screen the homes on the market, because most of the homes are foreclosures and short sales and they have limited, if any, pictures online to look at. They dominate the market. This weekend I showed no less than 40 homes, and maybe 5 were in decent enough condition for my first time buyers to consider. They were frustrated and so was I. Many of the foreclosures we could not even get into, because instead of the normal lockbox, they would have a combination box, and the only person with the combination was the listing agent, whom many times get thousands of calls a day on their listings, and may or may not get back to you with the code to get in. Not to mention, no heat and nasty nasty condition. My buyers this weekend do not have the money or time to make these homes habitable for them, and trying to find the few "owner homes" takes individually reading through hundreds of listings. An almost impossible task. Then there are the numerous listings on the market as "short sales" which are in good condition, but not really available to purchase. (I will address what a short sale condition is and why they are often not truly available to purchase, in my next blog) whew! It was truly a challenge.

This market is going to take the dedicated, experienced agent to wade through this inventory, to find the home with the features you really want. Yet, it is truly a great time to buy, if you can patient. The few "owner sellers" have had to compete with the foreclosure price, and with the huge inventory. This makes them, when you find one, a great deal. And of course, if you are looking for that foreclosure, and have vision and the money to fix them up, WOW, the deals are really out there. They are extremely more complicated to actually purchase, and are usually in extremely rough shape, so keeping that in mind when you are looking will keep expectations in line. I will address how and why that is in a future blog. So stay tuned.

Kathy

Loudoun Bank Foreclosures

Loudoun Bank foreclosure listings are quite the norm right now, but showing and selling them are a completely different story.

Every day as a leading listing agent, I get calls about whether my listings are bank foreclosures, or short sales. Seems that more and more selling agents have been burned trying to actually sell any of the numerous listings out there. This often leaves their buyers with long waiting periods and unknown competition, before they know whether their contract was accepted. In the meantime, rates continue to be volatile, and planning a move becomes next to impossible. Last night at 9:30pm was no exception. A selling agent called me on my cell, asking if one of my town-homes was a foreclosure or short sale. When I replied, no, he was very excited. Seems he was told his client had a deal on a similar town-home that was owned by a bank, but he could never get the ratified contract back. His client moved out of his apartment into a hotel, his stuff in storage, thinking his settlement would be eminent. They found out late yesterday, that in fact the bank had accepted a different contract. Now they were scrambling to find another home for the client. So although, bank foreclosures seem like a good deal, often there are unknown issues, and long, long waiting times. Sometimes, finding the right resale, priced aggressively and in good condition can be the better choice.

08/11/2007 at 10:47 AM

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