Orange County Short Sale Lenders Can Be Very Unrealistic

March 23, 2011 By 1 Comment
Orange County Short Sale

Orange County Short Sale Lenders Can Be Very Unrealistic

MH900127674 Orange County Short Sale Lenders Can Be Very Unrealistic

I work Orange County Short Sale Listings quite a bit. More than I would have ever thought, actually. I have a wonderful team which helps me manage the process and paperwork and we are very successful. But sometimes I just wonder what the Asset Managers are thinking.

I find more and more the approval price seems to depend less on the value of the home and more on the amount of loss the short sale lender is willing to take.

This number does not matter to the buyer!

One of my Orange County Short Sale Listings just went into escrow after 8 months of trying to sell it. I don’t know why. It’s in decent shape, vacant (easy to show), priced very competitively (there are several recent sales of the same floor plan in the complex to compare to) and nicely located. So I really don’t understand why I’ve needed to do as many price reductions as I have.

Problem is that the Orange County Short Sale Lender has a trustee sale date and won’t postpone without a buyer, offer and proof of funds. I have been steadily dropping the price in our MLS while making sure in the agent comments that I disclose the sales price which has been approved. I just can’t get an offer at that price. So…..what do they want me to do?

Obviously we all know that if I can’t sell the home for what the Orange County Short Sale Lender wants, neither can they after a foreclosure. But the Asset Manager simply says “we aren’t willing to take that large of a loss on the mortgage.” Ok…..then I guess it is what it is!

Filed Under: Short Sale, short sale listings Tagged With: , , , , ,

A Question From a Possible Referral…..And The Answer

January 3, 2011 By 1 Comment

A Question From a Possible Referral.....And The Answer

The Challenge by Bob about answers to questions has really had me watching my email and monitoring my phone conversations.

Yesterday I received a call from an Active Rain agent in Texas with a possible referral (thank you Ed). One of the first questions he asked me was “how do you work with relocation buyers”?

Great question….and very important to realize that relocation clients are different from the average buyer. Relocation buyers normally do not have a built-in knowledge of the area, and if they do have a city preference it’s often based on preconceived impressions….or opinions of co-workers, family or Internet.

Sometimes these impressions are correct….sometimes not.

In this situation, the buyers were out here visiting family for the week, and this was my main opportunity to meet with the wife. After this, I will be taking the husband out to see homes. This time with the wife is critical!!! This might sound sexist…..but let’s face it, the wife will have definite opinions about homes, streets, kitchens, bathrooms….and I want to make the most of our time together to understand what she does and doesn’t like. In this way, I can offer opinions later to the husband.

The first thing I do with relocation clients is take them on a tour of our area. Show them some different options for homes, neighborhoods, cities. Show them locations of schools and sports parks (if they have children). Give them a basic orientation. I also like to show them a variety of homes. Newer vs older, big lots vs nice views, upgraded vs fixers. Some of everything. The more diverse the selection the more information they and I can gather from our limited time together.

Then when they go home, we can continue to work from the Internet….but with a basis. “Remember this tract was near the huge park” or “Yes, but the power lines are going to be right behind the house, you didn’t like that”?

Hopefully, this approach helps the absent spouse (see how my sexism went away?:D) can feel more a part of the process and we find a home that fits both their requirements.

Filed Under: Beach Homes, buyer's agent, Buying a Home, Orange County Real Estate, Real Estate Tagged With: , , , , ,

Can You Offer Less On An “Approved” Short Sale? Maybe, Maybe Not

December 22, 2010 By 2 Comments
Can You Offer Less On An Approved Short Sale? Maybe, Maybe Not

Writing offers on Approved Short Sales

 Approved Short Sales

 My buyers ask me this all the time. Just today I was out with a buyer who wanted to know about the two homes we saw, if they could offer less than asking price on an Approved Short Sale. So the simple answer is 1) NO and 2) YES. What? this doesn’t make sense to you…..let me help.

1) No

When a short sale lender receives an offer for a given price, they order an appraisal (called a BPO),this is the first step in a property becoming an Approved Short Sale.  This is different from a normal appraisal and it’s done by real estate agents. It takes into account the actives/back-ups and the general direction of the market, in addition to recent sold comparables. This is the value that the lender uses to evaluate the short sale purchase offer. It’s not to say they won’t take less than that BPO value, but it will need to be close, reasonable. Then they approve an offer price and you have an Approved Short Sale.

So….if the approval is a recent approval. Then the short sale lender is going to expect to get that approved price. In this case, the listing agent/seller is likely to say NO to an offer which does not meet the terms of the original approval. Normally the listing will make clear that the property is an Approved Short Sale and price and terms have been set.

2) Yes

When the buyer walks away from a short sale after there is an approval of terms, then there is an opportunity for a new buyer. When the Approved Short Sale has been back on the market for a long period of time (normally over a month) then the listing agent/seller might be willing to accept a lower priced offer and send it to the lenders for approval. Maybe the market has slowed, or a new comparable closed at a lower price…maybe a new listing came on at a higher price. The change in the market might justify a lower price.

Understanding The Approved Short Sale

Another thing which might compel the short sale lender negotiator to accept a lower price on an Approved Short Sale is the time of the year. If they can close before the end of the year, or sometimes the month…they might take a lower price, especially if it’s all cash.

So when the approval is old…the answer is Yes, we can offer less and see what happens.

Remember…..even in an Approved Short Sale, we are still writing the offer to the seller, the current owner. It’s up to them whether they would like to take a lower offer and try and make it work. Even if an approval is old, they can say “no” and try and find an offer which meets the terms of approval.

When I get this question….I always answer “let me talk to the agent, and I’ll let you know”! This way, I have an informed answer to the question, and I can put my buyer in the best possible position to have their offer approved…my both the seller and the lender(s).

Here is a sample of homes for sale in Mission Viejo that are short sales. To find out if these are Approved Short Sales, please just ask us. You can also use our main Home Search to search in all of Southern California for Approved Short Sales. For more information on Short Sales see Short Sale FAQ.

Approved Short Sales Sample Search

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Filed Under: Buying a Home, Short Sale, short sale listings Tagged With: , , , , , ,

San Clemente Real Estate, Search Affordable Beach Homes, Find A Second Home By The Beach

March 27, 2010 By Leave a Comment

San Clemente Real Estate, Search Affordable Beach Homes, Find A Second Home By The Beach

San Clemente is one of best beach town values remaining in Southern California. Where else can you buy a single family ocean view home for $515,000? And that is not a short sale/bank owned price. A MLS Home Search finds many other options for you to choose from From the sunny cottages near the beach, to the spacious villas on the hill, all of San Clemente mixes old time beach charm with a revitalized community. There is even a Starbucks!

San Clemente offers both the part time and full time resident a never ending variety of activities. Take a morning walk along the famous T-Street Beach and watch the sea gulls and the surfers. On the first Sunday of every month, head down town to Del Mar Street for the Village Art Fair. Local business and restaurants offer an assortment of food and specials and you can stroll through the booths of arts and crafts. Then head down to the pier to enjoy a seafood dinner at the Fisherman’s Restaurant and enjoy the sunset over the ocean. If you’ve wondered about affording an ocean view home, the short sales and foreclosures might give you this opportunity.

San Clemente is a diverse community.There are the young renters who surf in the morning and party at night. There are the young families who gather at the pools in Talega and watch their children play soccer in the parks on weekend, and then there are the older couples who enjoy their ocean views on the deck. with the range of pricing, San Clemente can be a retirement reward, a family lifestyle or a second home for weekends.

Filed Under: Beach Homes, Real Estate, San Clemente Real Estate, Uncategorized Tagged With: , , , , ,