Are San Mateo County Short Sales Still a Bargain in 2013?

The short answer to the question are San Mateo County short sale single family homes still a bargain in 2013 is NO.

This is a chart of all the single family San Mateo County short sales sold in in 2013. Of the 73 single family short sales the average sales price vs list price was over asking every month this year. This is very similar to the sales of traditional resale homes in San Mateo County.

There were 89 condos/town homes that were San Mateo County short sales and sold in 2013. The average sale price was over list price in every month in 2013. 

This is very similar to traditional resale condos in San Mateo County.

So what happened to the great deals you can get with San Mateo County short sales? I am sorry but those days are gone. The inventory of homes for sale in San Mateo County is so low and the demand so high that almost every listing gets multiple offers, whether it is a traditional resale, San Mateo county short sale, or San Mateo County foreclosure.  Most of the people who could not afford their mortgages lost their homes years ago. Also, since there has been so much appreciation this year the number of people who owe more on their mortgages than the home is worth is very low. If they can not afford to keep the home is is very easy to sell it and pocket some cash. Many homes sales even start out as San Mateo County Short Sales but by the time they get offers over asking they are no longer short. 

So if you are looking for a bargain in a single family home or condo it is not likely you will find it in a San Mateo County Short Sale.

If you have any questions about buying or selling a home in San Mateo County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

http://www.marcymoyer.com

marcy@marcymoyer.com

Cal BRE 01191194

650-619-9285

San Mateo County short Sale/ Foreclosure Update 2013 First Quarter

Looking for a distressed property in San Mateo County? Don't hold your breath. San Mateo County has very few short sales or bank owned properties this year. Here are the numbers:
Number of San Mateo County homes for sale (single family and condos):  589
Active San Mateo County Short Sales:  19
Percentage of San Mateo County homes for sale that are short sales: 3.2%
Active San Mateo County foreclosures: 16
Percentage of San Mateo County homes for sale that are foreclosures: 2.7%
Percentage of total San Mateo County distressed sales: 5.9%
This is not enough to have any effect on total home values. Many cities in San Mateo County have no short sales as home values have reached and exceeded the peak in 2007-2008.


Closed sales in San Mateo County in 2013: 1170

Number of closed San Mateo County short sales in 2013: 138

Percentage closed San Mateo County short sales in 2013: 5.5%

Number of closed San Mateo County foreclosures in 2013: 68

Percentage of closed San Mateo County foreclosures in 2013: 11.8%

The percentage of closed San Mateo County short sales and foreclosures is more a reflection of the past, not what is going on in the market now. San Mateo County short sales can take up to a year to close, and foreclosures can be in the works for years before they hit the market.

The bottom line is, if you are looking for a deal in San Mateo County, you will not likely find it in a short sale or foreclosure, because there are not enough of them and the total inventory is so low the 90% of all homes on the market get multiple offers.

If you have any questions about buying or selling a home in San Mateo County please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

DRE 01191194

San Mateo County: 2012 Short Sale and Foreclosure Roundup

As the year comes to a close you may be wondering what the foreclosure and short sale market looks like in San Mateo Clara County. In a word, things are pretty quiet. The numbers of sales are down. Here is what it looks like:

Closed sales from June 1,2012 to Dec 26, 2012:  

Bank owned: 259

Short Sales: 509

Compared to the first 6 months of 2012:

Bank owned: 387

Short sales: 462

Current Active Sales:

Bank Owned:  17

Short Sales: 22

Current Pending Sales:

Bank Owned: 44

Short Sales: 310

As you can see there has been a large drop off in REO sales with a slight increase in short sales.

I expect a decrease in both short sales and foreclosures as San Mateo County home values increase, loan modifications increase, and the Homeoner's Bill of Rights takes effect in 2013. As prices increase fewer homeowners are underwater, and the need for short sales and foreclosures decrease. Also, the tax exemption of the debt forgiveness on short sales and foreclosures expires at the end of 2012. This will be a big incentive for homeowners to try to hold on until they are no longer underwater.

If you have any questions about San Mateo County Short Sales or Foreclosures please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

D.R.E. 01191194

650-619-9285

Redwood City Short Sale Closed, Most Challenging I Ever Had

I finally closed a Redwood City short sale that started in Sept of 2011. Yes, one year for a short sale. What was the problem? Let me count down just the top 10.

10. The sellers asked another agent in my office to sell this home as a short sale but this wonderful agent had never listed a short sale before. She asked me to help her, but by the time she did they were 2 weeks from the trustee sale date and the sellers were sitting on a perfectly good offer they thought was too low.

9. There was a first and second loan with Chase as well as a large 3rd loan which was a carry back from the previous owner. The seller wanted me to negotiate with Chase but have her lawyer negotiate with the 3rd lender.

8. The seller refused to give me any of her financial documents and said she would provide them to Chase herself.

7. The first approval came in Dec of 2011 at purchase price with 5K going to the second and 11K going to the 3rd. The seller said the 3rd lender was going to take that offer, but then the lawyer for the seller said the 3rd lender rejected the offer.

6. The buyer offered to give the 3rd lender another 10K. No response from 3rd lender. Chase said the buyer could not pay off third.

5. The approval from Chase expired, the negotiator at Chase left the country, the house was put back on the market asking for a large contribution to the 3rd. Chase said buyer could not pay off 3rd.

4. New buyer came in and offered 30K to the third on top of the old price (515K).

3. New BPO said house is worth 540-560K so Chase said offer is not high enough. Lawyer for seller and seller told me I should start negotiating with the 3rd. He said he wanted 80K from the buyer and 7K from Chase. I get him down to 50K, Chase said submit again.

2.Buyer, Chase, 3rd lender, seller all agreed to purchase price of 562K with 50K going to 3rd from the buyer and no contribution from Chase. Chase inexplicably changed their policy and will now allow the buyer to contribute to the 3rd payoff. Chase said close by Aug 31.

1. Lots of delays getting the loan funded. Aug 29th still no loan docs. Chase said after 10 trustee sale postponements they were done. Close on Aug 31 or they take the house back. Seller was in Europe but managed to come to back last week of Aug to get her things and sign off. Buyers agent got lender to fund without loan docs and we somehow managed to get buyers signed and closed on Aug 31.

This was a tough one. Most short sales are not this hard, but the secret here was believing that no does not mean no. Not a lesson I would want to teach to my children, but in the short sale world it is a great one.

Marcy Moyer
Keller Williams Realty
www.marcymoyer.com``
marcy@marcymoyer.com
650-619-9285
D.R.E. 01191194

Can A Bank REally Change The Locks On My Mountain View Short Sale?

Seems like a bizarre question doesn't it? Well guess what, it is not.  If you are selling your home as short sale the bank may have the right to send a property preservation company to the house and "secure it" if they feel the house is vacant and abandoned. But it is still my house, right?

Yes, it is still your house, even if you have stopped making payments, but here is the catch. Many loans contain clauses that say if you abandon your home the bank has a right to secure the property to preserve their interest in the home while they are waiting to re-posses it.

So here is the typical situation.  Owner has a home that they need to short sell.  They have already left the home, often to take a job somewhere else, but maybe for some other reason.  The short sale is initiated and the bank finds out the property is vacant. They do not want any damage to the property so they send out a property preservation company to secure the house.  The company changes the locks and may even board up windows. There are even some instances where the property preservation company employees help themselves to some things that were "abandoned" in the home that do not belong to them. The realtor listing the property may not be given the key and other agents may not be able to get in until the mess is straightened out.

What is the solution?  There is no fool proof solution but there are some things you can try.  If you are selling an empty home for what ever reason the best thing to do is to hire a realtor who can stage it for you. (I do this for all my listings) Once the home is staged, or even if that is not possible, take pictures. Show the bank the house is being cared for by the realtor, that the windows are not broken, and that there are locks on the door.  Take pictures of all the fixtures to show what is in the house.  Send these pictures to the bank along with the initial short sale authorization and then again with the short sale package to show that the home is not abandoned and in case there is any question about things going missing.

This may not stop the the bank every time from "securing" an un-abandoned house, but it should help.

If you have nay questions about 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

My Contribution to Shoring Up The Values of Foreclosed/ Short Sale Homes In The Bay Area Distressed Property House Sitters

( This post is only partially in jest and partially serious )

While places in the Bay area  like Palo Alto and Menlo Park only have a few foreclosures, other cities like San Jose or Daly City can have up to 10% of the homes for sale foreclosed, and 30% can be short sales at any given time.  The foreclosed homes are generally vacant, and some of the short sales are also.  The problem with this is that the longer a home is vacant and not maintained because either the owner is a bank or has no money, as in a short sale owner, the less valuable the home becomes. Now with the problem of foreclosure moratoriums in some states the vacant home problem will get worse.

My solution?  Distressed Property House Sitters

I think that the banks who own the properties, or who hold the notes should hire house sitters for these vacant properties.  They could be like home stagers, but live there instead of just leaving their furniture.  This could provide employment and homes for many people who now have neither, and help protect the bank’s assets.

Of course there would need to be rules, like the home can be shown at any time, and any changing of clothes needs to be done in a room with a closed door. Also, as much as I love dogs, it would probably be better to have a no pet policy, but I think this could be a win- win situation for both parties. 

This could also help the busy listing agent by taking some of the burden of maintaining a vacant property off their shoulders.

Anyone agree with me?

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285