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