Menlo Park Distressed Property Sales Watch 2011

It's the end of the year so time for the round-up of distressed property sales in Menlo Park. So here's what happened:

Single family and condo townhomes 2011:

Total sales:  451

Short Sales: 39

REO:           22

Distressed sales as a percentage of total sales: 13.5%

Compare to 2010

Total sales:   431

Short Sales:   28

REO:            29

Distressed sales as a percentage of total sales:  13.2%

My conclusion:

The percentage of distressed properties in Menlo Park are  very similar to 2010 at 13.2%, however, there is one big difference. In 2010 there were 6 distressed property sales in homes in the Menlo Park or Las Lomitas School District, with the remainder in the Redwood City or Ravenswood District. In 2011 there were 18 distressed property sales in homes in the Menlo Park School District. This follows a national trend of the higher priced homes as a growing segment of distressed sales.

If you have any questions about short sales or bank owned homes please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

No It's Not Okay For One Agent to Represent More Than One Buyer in a Menlo Park Short Sale

This is so inherently unethical I can not believe I am actually writing a blog about this, but a buyer asked me this question today and apparently it is happening. 

I have a short sale listing in Menlo Park and offers are due by the end of the day on Tues.  At thus point I have 2. It is in Belle Haven,  a popular area for investors and is close to the the new Facebook Headquarters so the appreciation prospects are good.

Today I got a call from an investor who asked if I would represent him. I told him I do not double end deals as a general rule, and never do it in a multiple offer situation. I gave him the name of an associate who could help him.  He then asked if this person would be representing multiple buyers. I was shocked. If being a dual agent does not seem right to me, representing multiple buyers is beyond all sense of ethical behavior. The investor told me he has bought and sold many homes and this practice has been coming up recently.

All I can say is not on one of my listings, no way, no how.

If you have any questions about buying or selling short sales in San Mateo or Santa Clara Counties please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

Menlo Park Probate Short Sale: Why Bother?

The question of whether to short sell a home in probate used to be rare, but now unfortunately it is not. There are estates where the owner dies, owes more than the house is worth, and a decision needs to be made by the Personal Representative (executor) as to what to do.

My opinion, try it. If it is in the best interest of the bank/investor to short sell rather than foreclose they will do it. If it is not, they won't and will take it to foreclosure.

So who benefits if the home is sold as a short sale?  Well the realtor for sure.  The commission is paid by the bank.

However, if the attorney's fees are put on the HUD1 statement (the statement saying who is paying for what and who is receiving what money) the bank may pay them.  Also, the payment to the personal representative can go on the HUD1. This would make it worthwhile for the Personal Representative to try and do the short sale.  This can be very handy if the representative is a Bank or Professional Fiduciary. 

The heirs do not get anything out of a short sale so it does not matter to them if the property is foreclosed or sold short, but it does matter to the neighborhood.  A vacant foreclosed home brings the other homes around it down, while a short sale is cared for by the realtor and even if vacant is not abandoned.

So should you bother?

I think so.

If you have any questions about probate or short sales, please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Trust and Probate Sales

Menlo Park Condo Short Sale: Get Those HOA Dues Paid

Right now it is estimated that nationally 1 in 4 homeowners owes more on their mortgage than their home is worth. You may be be one of those homeowners.  While not everyone who owes more money than their home is worth is going to sell that home, if they do, it will have to go through the short sale process. If you decide that a short sale is the best option for your circumstances be sure and check with a lawyer and/or accountant to get the best legal and tax advice.  You may find yourself unable to make the payments on the mortgage at all. If you own a condo the situation can get a little more complicated.  

In California the HOA can initiate foreclosure proceedings against a homeowner who does not pay his/her HOA dues.  In addition to that, many banks who are very willing to allow a borrower to do a short sale will not pay any money for back due HOA dues.  

So, if you can not afford your home, if you can not afford your mortgage, if you want to try a short sale, try to find a way to pay the HOA dues. If you do not, you could get to the end of the short sale process and not be able to close because a few thousand dollars are owned to the HOA and since that is a lien against the property the sale will not close.

If you have any questions about short sales, please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Federal Government Disclaimer (MARS): 1. You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us commission as agreed to in listing contract for our services.
2. Marcy Moyer of Keller Williams Realty is not associated with the government, and our service is not approved by the government or your lender; and 
3. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Trust and Probate Sales

Menlo Park Wells Fargo Short Sale Default vs. Eminent Default

I frequently hear the question "Can I short sell my house if I have not stopped making payments."  The answer to this depends on your lender, the investor on the loan, and the phases of the moon.  However, at least right now, if you have a loan with Wells Fargo then at this moment in time they will look at approving a short sale if you have not stopped making your payments.  Wells Fargo has two different review processes, one for currently defaulted and one for eminent defaults.  So if you are currently making your payments, but you have circumstances which will make it impossible for you to make the payments in the future then you are likely to have an eminent default and can potentially qualify for a short sale.  Nothing is for ever, and with short sales there are no guarantees, but it is worth a try.

If you have any questions about short sales in San Mateo or Santa County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Federal Government Disclaimer (MARS): 1. You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us commission as agreed to in listing contract for our services.
2. Marcy Moyer of Keller Williams Realty is not associated with the government, and our service is not approved by the government or your lender; and 
3. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Trust and Probate Sales

Menlo Park Short Sale Approval Today!!!!!

Well, it has taken a lot of months, and 4 buyers, but I finally got approval today from Chase for a short sale in the Belle Haven neighborhood of Menlo Park.  So far everyone is delighted, and hopefully we will make it through the loan and property contingencies. 

Short sales are sold "As-Is", period. Banks do not allow any credits, repairs, or other consessions for things that are wrong.  That is why I try to get inspections on all my short sale listings before they go on the market. That way there are fewer surprises at the end.

Nothing is a done deal until it is done, but we have come a long way, and my record is still 100% on getting an approval, and hopefully will stay at 100% on closing.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Federal Government Disclaimer (MARS):
1. You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us commission as agreed to in listing contract for our services.
2. Marcy Moyer of Keller Williams Realty is not associated with the government, and our service is not approved by the government or your lender; and
3. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Trust and Probate Sales

WHAT IS A B.P.O?

Question: My lender said that the offer of $360,000 on my house was too low because the realor hired by the bank to perform a BPO said it was worth $380,000. What is a BPO?

Answer: A BPO stands for Broker's Price Opinion. When a lender wants to know the market value of a home for that moment in time they will often hire a realtor ( or a company who hires realtors) to give them their opinion of what the current market will bear for the property in question. This is not a full appraisal but there are certain parameters that must be followed by the realtor. In general the parameters are:

3 active listings and 3 recently sold comps that are:

1. Within 1 mile of an urban property, 2 miles of a suburban property,and 20 miles of a rural property

2. Within 20% of the gross living area and lot size of the subject property

3. Within 10 years of the age of the property

4. Not a foreclosed or short sale property unless a lot of the neighborhood sales are distressed properties

These comps should bracket the subject property, that is they should be a little above and a little below in all parameters and ultimately in value.

By sticking to these parameters a value can be placed on the home.

Problems can arise when there are not enough active listings or sales in the previous 6 months of similar homes to make comparisons. When this happens the realtor needs to go outside the required parameters and then make adjustments. Most problems BPO's happen during this adjustment time.

If your BPO comes in at a price that seems off the wall, the listing realtor can do his/her own or hire an appraiser to justify what they think is market value. Of course, it is ultimately the bank or their investor's decision, so they can listen to reason or not.

If you have any other questions about short sales please ask!

Marcy Moyer

Keller Williams Realty

650-619-9285

www.marcymoyer.com

marcy@marcymoyer.com

D.R.E,  01191194

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Trust and Probate Sales

Menlo Park Ca Distressed Property Update 12 /3 / 10

Menlo Park, Ca. Distressed Property Update

Are you waiting for a distressed property for sale in Menlo Park so you can snatch a bargain, or are just curious about them? Well, there are a few of these types of sales, but not many. Short sales, as in other places, are more common than foreclosures. Most banks are at least giving homeowners the option to try to do a loan modification or short sale before foreclosing. These options do not always work, but they are worth a try.

Active Short Sale Listings:  8 

Pending short sale listings:  14

They break down neighborhood wise into:

west MP: 1

Central MP: 1

East of El Camino and west of 101: 5

Avenues: 2

Belle Haven: 14

Closed Short Sales since Jan 1, 2010:  17

West MP: 2

Central MP: 0

East of El Camino/West of 101: 1

Avenues: 3

Belle Haven: 11

Foreclosures:

Active listings:  6

Pending:   5

Breakdown by neighborhood:

West Menlo Park: 0

Central: 2

East of El Camino/West of 101: 2

Avenues: 3

Belle Haven: 3

Closed since 1/1/10:  19

Breakdown by neighborhood:

West Menlo Park: 0

Central:0

East of El Camino/West of 101: 2

Avenues: 2

Belle Haven:15

There have been 369 sales of homes and condos in Menlo Park  since Jan 1, 2010 so the percentage of distressed home sales is not enough to have much influence on the market yet, except in Belle Haven.

However, I think that there more may be coming in the next few years.  If you need to sell and owe more than your home is worth I would be happy to have a confidential discussion with you about your options. I am an experienced short sale realtor.  If you are interested in purchasing a short sale or reo property I would be happy to speak with you about what you need to do to successfully purchase one.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Trust and Probate Sales

Menlo Park Ca Short Sale Green Home at a Great Price!

Welcome to this beautiful Green Home in a friendly enclave of 37 3 year old homes. It features solar panels that produce more electricity than the home uses, an on demand water heater, extensive insulation, granite counters in the kitchen and bathrooms, solid surface bathroom surrounds, wood and tile floors as well as high quality carpets, an attached two car garage, and fenced back yard. All this at a very affordable price and a short sale with an experienced short sale agent and only one loan.  Disclosures available at www.marcymoyer.com

Menlo Park Ca Short Sale Green Home at a Great Price!

Welcome to this beautiful Green Home in a friendly enclave of 37 3 year old homes. It features solar panels that produce more electricity than the home uses, an on demand water heater, extensive insulation, granite counters in the kitchen and bathrooms, solid surface bathroom surrounds, wood and tile floors as well as high quality carpets, an attached two car garage, and fenced back yard. All this at a very affordable price and a short sale with an experienced short sale agent and only one loan.  Disclosures available at www.marcymoyer.com