What if I Want to Buy A Menlo Park House That Should Be a Short Sale But Isn't

What if I Want to Buy A Menlo Park House That Should Be a Short Sale But Isn't 

While much of the Bay Area has seen a large increase in the number of homes being sold as short sales there have not been very many Menlo Park homes or Palo Alto homes that are being sold this way.  However, as long the housing market has not appreciated back to the peak levels, and there are still people who need to sell homes that are worth less than the mortgages on them, short sales will be here, and possibly in increasing numbers.  So what happens when you find a home you really want to buy but it is priced higher than the market value and you can not get the seller to budge?

At this point it is time to get your realtor to do some investigation.  Find out when the home was purchased or refinanced, and for how much.  Add in the transfer taxes, closing costs, and commissions, and if that number is above the list price then what you have is possible ostrich seller. This seller has his/her heard buried in the ground and will not look at the realty of what is going on.  Maybe your agent can help, if your agent is an experienced short sale agent.

If your agent can convince the seller's agent to attempt a short sale you may be able to get the house.  Since it is unrealistic to expect that the seller will make any money on the house, if they have to sell you may be in luck. If they do not have to sell there is nothing you can do about it, but it is worth a try to see if they are in the former category.

It is very likely that if the house is in a more expensive city, like Menlo Park, Palo Alto, Atherton, Los Altos, the listing agent has never done a short sale and may need some coaching. They may not know that many short sales are being approved in 30 days or less, that hardships can include running out of savings or moving away. Ask your agent to have a sit down with the seller's agent and explain how a short sale works and why it might be worth a try.

Maybe you can help turn an ostrich into something more appropriate, like a flamingo.

If you have nay questions about Short Sales, please feel free to ask.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

Inspection Reports On an "As-Is" California Real Estate Contract

Inspection Reports On an "As-Is" California Real Estate Contract 

I recently got a newsletter from a mortgage broker at Princeton Capitol, confirming what I have been telling clients for the last 16 years.  If you are purchasing a home, or accepting an offer to purchase a home and the contract is "As-Is" do not discuss the specific inspection reports in the contract.  The reason for this is that if there is mention of a termite report, property report, etc. Fannie and Freddie are getting very picky about wanting to see those reports, and in the case of termite, they will want to see a clearance.  If you do not mention the report they will not need a termite clearance.  This does not mean that the buyer does not have the right to any inspections, they are just not specified on the contract.  

I know this is not logical. If a contract is "As-Is" then it means the seller is not going to make repairs, but the goal is to come to a mutual agreement and proceed with the sale.  Checking the box buyer will pay for a termite inspection can derail the sale, so just do not check the box, and the buyer can inspect to his or her's heart's content.

This is particularly important in Short Sales and Trust and Probate Sales where the seller under no circumstances can make any repairs before close of escrow.  It would be a shame to derail one of these deals over an issue that the buyer and seller agree on, but the lender for the buyer has a different policy.

If you have any questions about anything having to do with real estate in Santa Clara or San Mateo County, please feel free to ask.

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

Will a Bank Lower the Price of an REO Home after inspections?

Will a Bank Lower the Price of an REO Home after inspections? 

I got a call a few days ago from a buyer of a home in southern California. He made an all cash offer on a foreclosed property which was countered at a higher price because there was a second offer from and FHA buyer for more money. He agreed to the higher price and then did his inspections. there were a number of issues that made this buyer feel like he paid too much and wanted my advice about how to get the bank the lower the price. The FHA buyer was given back up position for the purchase of this home.

After telling this buyer that I would not interfere with someone else's contract and did not represent him, I said I could tell him what I would try if this happened to one of my clients.  FHA loans can have lower down payments than a conventional loan, but they come with conditions.  The home must meet certain conditions in order to qualify for a loan.  If it were my client I would make a list of the items that would most likely cause an FHA loan to be declined and ask the bank to subtract that amount from the accepted price. What the bank would get in return would be a cash offer that can close in a week and not have to deal with repairing the items necessary to get the FHA loan or putting the home back on the market.

Will it work? I don't know, but certainly it makes more sense than asking the bank t take less money because of the general condition of the property, especially when they have a back up offer.

What works better, get your inspections before making the offer, make the offer based on what you know if the condition of the property, let the bank know what is wrong with the property, and submitting an offer that is not contingent on a property inspection. It is a risk, but probably worth it when you know there are going to be multiple offers and you want to make a strong offer.

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

Santa Clara Short Sale and the Buyer's Pre-Approval Lette

Santa Clara Short Sale and the Buyer's Pre-Approval Letter 

One of my listings is a short sale in a lovely complex in Santa Clara.  It was only on the market about a week and I got 3 offers on it.  It was priced appropriately, looked good, and I had an open house on Sat and Sun. with plenty of traffic. My sellers signed one of the offers which included a good down-payment, a copy of the earnest money deposit, a pre-approval letter. All of this was sent to the lender by fax and I have been doing my weekly follow up every week. Nothing unusual here. After 3 weeks I was still waiting to hear from a negotiator.

So this morning when I called for my weekly update the service rep read me the notes on the file from the processor. She was asking for some updates, including an updated pre-approval letter from the buyer.  I looked at the date on the pre-approval letter and it was only a month old. this seemed like a new enough pre-approval to me. then I looked at the bottom of the letter which said the pre-approval was only good for 30 days, and guess what, the 30 days is up today. 

One thing I love about short sales is that every day I learn something new. I now know to check the expiration dates on the pre-approval letters. They, like the financial documents of the seller can expire and the lender needs to know that the buyer still qualifies.

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

What Makes a Good (or Bad) Short Sale Buyer in Santa Clara County

What Makes a Good (or Bad) Short Sale Buyer in Santa Clara County 

Not everyone is cut out to be a short sale buyer. It is a long, and sometimes frustrating process. It is not for everyone. so how do you know what makes for a good short sale buyer, one who will stick it out for the duration and be committed to the process. Here are some attributes I think contribute to being a good short sale buyer:

1.  Really want the house, not just make an offer because it is a short sale so probably a "good deal"  It is difficult for the seller and listing agent to really access the buyer's motivation, but if you are a buyer trying to get a good investment property or a home it is a waste of your time and the seller's to make offers on homes you really do not want and are not willing to fight for.

2.  Does not have a problem with authority.  When you are involved in a short sale you have to do what the bank asks you to do. If you don't, the sale will not be completed. If you are a control freak and do not like to be told what to do, do not try to buy a short sale.

3. Is not in  a hurry. If you have a loan rate that is expiring in 30 days and you can not afford or do not want to pay an interest rate that is any higher than the approval rate do not make an offer of a short sale. Even "approved" short sales can take months so if you are in a hurry buy form a traditional seller.

4. Does not expect a house to be in perfect condition. short sales have to be sold "As-Is." the bank is agreeing to take a loss on the loan but will not pay for repairs. Do not expect them to.

5. Be ok with your price. Do not think you can negotiate a lower price once you are in contract, even if you find repairs are needed. The lender or investor may be willing to negotiate, but they often will not.

These are not the only attributes that make for a good short sale buyer, but they certainly are important.

If you have any questions about buying or selling a Santa Clara County or San Mateo County Short Sale 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

Palo Alto Residents, Do a Second Gutter Cleaning

Palo Alto Residents, Do a Second Gutter Cleaning 

I hope all my fellow Midtown Palo Alto residents made it through the storm last night. It was pretty wild out there. Since it looks like we are in for a prolonged period of wetness I hope everyone gives their gutters a second cleaning for the season.  I know most people will get their gutters cleaned in Nov or Dec after the leaves fall and before the big rains.  However, since we are getting so much rain at the end of the season it is a good idea to get them cleaned again this week because there is probably a big accumulation of debri in them by now, and the rain could cause problems with the leaking into the house.

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

Belle Haven in East Menlo Park Ca is THE place to invest Right Now

Belle Haven in East Menlo Park Ca is THE place to invest Right Now 

I have to admit that in a toss up for best picture between The Social Network and The King's Speech I was neutral.  I think they were both fantastic, with great scripts and acting for both. However, when it comes to investing in real estate, "The Social; Network" wins hands down.

You are probably thinking I am a little nuts right now, but there is a method to my madness.  Facebook has purchased the east Menlo Park Sun campus.  There are going to be many many young Facebook employess looking for a place to live close by. Facebook encourages their workers to live close, reduce commute time, and lower their carbon footprints.  Belle Haven is going to be the place of choice for many of these Facebookers.  There are a variety of home choices for investors to choose from including small apartment buildings, older, smaller homes that need fixing, occassionally a newer Green Home by Clarum comes up as a short sale, or occasionally older homes already fixed and ready to rent out.

So if you are looking for a place where the cost of housing is lower than in most other Silicon Valley neighborhoods and the potential for rental to well employed young professionals is high, then Belle Haven in east Menlo Park is the place to be.

Please feel free to contact me if you have any questions about real estate in Belle Haven!

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

How Many Cash Buyers In Palo Alto?

I was asked an interesting question recently. What is the percentage of cash buyers in Palo Alto?  It may not be what you think.

Homes under 1 million in the last year: 67 total  Sold with all cash:  9

Homes from 1-2 million:  255     Sold with all cash:  31

Homes from 2-3  million:  64  Sold with all cash:  20

Homes over 3 million:     21   Sold with all cash:    14

So despite what you hear about cash being king and so many buyers being beat out by all cash investors, in Palo Alto, a very high number of buyers are still purchasing homes with loans.

If you have any questions about buying or selling a home in Palo Alto please feel free to contact me.

Marcy Moyer

Kelle Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Catch 22 In a Santa Clara County Wells Fargo Short Sale

Catch 22 In a Santa Clara County Wells Fargo Short Sale

Here's the problem. The buyers on my short sale listing want to close on March 23 because they have a great loan lock.  They make an offer on a one of my short sale listings on Feb 20th. The price had been previously approved but I tell them that I would be surprised if we will be ready on our end that quickly.  However, I have a great relationship with the negotiators for both loans. It was easy to do that. I always assume they are on my side until proven otherwise.  They are hired to move short sales through the system and to work with the investors on the loans to that. It is the investors that I get mad at, but I do not get to deal with them directly so they do not get to hear how mad I get at them sometimes.  In any case, my two negotiators got me a second approval in 3 days on the first loan, and 2 days later on the second. I think that is pretty remarkable! So we are all set on our side. They negotiators tell us that Service Link who is negotiating for the first through Indy Mac needs 48 hours to approve the final HUD1 statement, which specifies who is paying for what , and how much money the lender is getting from the sale.  Wells Fargo has the second, and they need one week.  So one week before the planned close date of March 23 my wonderful title officer, Lee Kocjan at Fidelity Title sends in the final HUD1 for approval with a close date of March 23.  

But of course, the buyer's loan docs are not ready.  The buyer's loan docs are finally ready on March 28th, but guess what the final approval for the second has expired. We have to send in a new HUD1 and get a new final approval.  But guess what, the buyer's loan docs will expire on March 31 and the county recording office isn't even open on March 31 because is is a local holiday.  So the loan docs will have to be re drawn, but by then the 2nd HUD1 approval letter will expire, and you can see the Catch 22 here.  

So the moral, DO NOT ORDER THE FINAL HUD1 APPROVAL FROM WELLS FARGO UNTIL THERE IS ABSOLUTELY NO QUESTION THAT THE LOAN DOCS ARE READY.

I would have done that, but I was trying to accommodate the buyer and their agent and by doing so they have a longer delay.

If you have any questions about short sales in San Mateo or Santa Clara County please feel free to contact me. I LOVE SHORT SALES even with their Catch 22s.

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

Bank Of America Loan for Menlo Park Short Sale Buyer: Is it Really Approved

Bank Of America Loan for Menlo Park Short Sale Buyer: Is it Really Approved 

I just had the strangest conversation with a B of A Lender for a Menlo Park Short Sale one of my buyer's is purchasing.  First I must say this is not the broker I normally deal with at Bank of America, but someone who came highly recommended to my buyer.  Two weeks ago this broker told me the buyer was approved and we just needed the appraisal.  Yesterday he tells me the appraisal came in fine.  So I ask the logical question, "Can my client remove his financing contingency or are there still conditions that concern you. The answer I get is "The loan is approved and we can close on time."  I ask again, can we remove the financing contingency and I get the same answer. After the third time I give up and ask the buyer to ask the broker.  

He gets the conditional approval back from broker and while most condiitons are no problem, there is one item on the credit report that was a mistake and could cause the loan to be denied.

It takes a lot to get me mad, but this did it.  The credit report was run 3 weeks ago. It takes time to fix problems. Whey did they wait 3 weeks to tell us? 

The moral here, the buyer needs to ask to see the conditional approval up front as well as the credit report.  Just because someone comes highly recommended, that does not mean they can not make mistakes. We all do, and if there are more than one set of eyes looking at documents there is a much greater chance that transactions will go smoothly.

If you have any questions about Short Sales, or any other real estate related issues 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

Open Sun April 10 2-4

Are you looking for a large home with 4 bedrooms, a dining room, gas kitchen, family room, wood floors, air-conditioning, a first floor bedroom, private back yard, quiet street, not too old, in a convenient location, and under $700,000? It is possible to have it all, at this lovely home in the heart of Santa Clara. Just 20 years young and nicely dressed, this is beauty may be just what you are looking for. Come take a look! It is waiting for a new owner to enjoy all these creature comforts for the next 20 years.

Offered for $685,000

Open Sat 2/5/11

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

Santa Clara Open House This Sunday! 1 - 4!

Are you looking for a large home with 4 bedrooms, a dining room, gas kitchen, family room, wood floors, air-conditioning, a first floor bedroom, private back yard, quiet street, not too old, in a convenient location, and under $700,000? It is possible to have it all, at this lovely home in the heart of Santa Clara. Just 20 years young and nicely dressed, this is beauty may be just what you are looking for. Come take a look! It is waiting for a new owner to enjoy all these creature comforts for the next 20 years.

Offered for $685,000

Open Sat 2/5/11

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

Open House This Sun feb 20! 1 - 4!

DREAM HOME ON THE GOLF COURSE...

Gorgeous 10 year old home with a huge gourmet kitchen, extensive use of granite, slate, marble, and hardwood.  

4 bedrooms plus an office that can be used as a 5th bedroom. Beautiful views of the hills and golf course. Downstairs bedroom and bath. Extraordinary opportunity to live in Eagleridge

Take a Visual Tour...

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

Step out of the rain and into this lovely open house...

THIS SUNDAY 1 - 4!

Are you looking for a large home with 4 bedrooms, a dining room, gas kitchen, family room, wood floors, air-conditioning, a first floor bedroom, private back yard, quiet street, not too old, in a convenient location, and under $700,000? It is possible to have it all, at this lovely home in the heart of Santa Clara. Just 20 years young and nicely dressed, this is beauty may be just what you are looking for. Come take a look! It is waiting for a new owner to enjoy all these creature comforts for the next 20 years.

Offered for $685,000

Open Sat 2/5/11

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

Open House This Saturday 1 - 4!

Are you looking for a large home with 4 bedrooms, a dining room, gas kitchen, family room, wood floors, air-conditioning, a first floor bedroom, private back yard, quiet street, not too old, in a convenient location, and under $700,000? It is possible to have it all, at this lovely home in the heart of Santa Clara. Just 20 years young and nicely dressed, this is beauty may be just what you are looking for. Come take a look! It is waiting for a new owner to enjoy all these creature comforts for the next 20 years.

Offered for $685,000

Open Sat 2/5/11

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

Can I Buy a Home in Sunnyvale Ca at an Auction?

Buying a Foreclosure

Question: The house next door to me has a notice of trustee sale on the door. Can I go to the auction and buy it?

Answer: That depends. If the owners of the house pay off what they owe before the trustee sale or if they declare bankruptcy there will not be a sale. However if they do not do anything then the home will go to public auction. In order to purchase at auction you would have to pay all cash, you do not get contingencies, and the title is not insured.  The first loan has to be paid off and if the house is worth less than the loan balance you would have to pay more for the home than it is worth.  If the home is being foreclosed by someone who has a junior lien, that is a second loan, or a lien against the home then the first lien holder needs to be paid off before any of the junior lien holders can have the property.  

It is generally a very risky proposition to purchase a home at public auction since there is no way to guarantee that you will have clear title. Even if you pay off the first lien holder there may be other liens against the property that you would become responsible for. The best thing to do is to wait until the bank repossesses a home, and then lists it with a realtor or sells it an auction with an auction company that allows a buyer to use a lender. There are not many auctions like this in Santa Clara County, but they do happen occasionally. It is more common for a foreclosed home to be listed on the MLS after the bank takes it back.

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

Santa Clara County Short Sale: Wells Fargo is OK!

I have a listing for a beautiful home in Gilroy as a short sale. Indymac approved the short sell off of the first through their 3rd party negotiator Service Link.  Wells Fargo has had the file for 3 1/2 weeks now and the negotiator has said it looks fine with him and will recommend the upper management approve the short payoff with the 10% of the loan balance the first has offered.  He is not asking for a seller contribution or a deficiency judgment.  The upper management still needs to approve but he said it is incredibly unlikely they will go against his recommendation. So why do I think I was successful so far on this one.

It is not rocket science but there is a method to my madness:

1. First and foremost it is in the best interests of the banks/investors right now to approve this short sale.  If it wasn't I really do not believe there is much I could do to make it happen. i also believe it is often in their best interests so it is a great idea to try and not just let a house go to foreclosure.

2. I read the instructions, many times.  The banks and servicers tell me what they want to have submitted and I provide what they need.  When they lose it I re-submit and do not make a stink.  I check 24 hours after submittal to make sure they received everything. Wells Fargo will even check the file when you call and stay on hold while they check.

3. I am nice to people. It does not help the process in my opinion, if I yell and huff and puff. We are all trying to do a job here, and that is for me to help people in a bad situation and for the banks or servicers to get as much money re-couped for the bank.  In the case of a short sale those goals are usually in sync with each other. so if we take the attitude that I can help them and they can help me it is much easier and more fun to negotiate.

4. Wells Fargo kept this home equity line in house and did not sell it to an investor. My experience has been that dealing directly with a bank is easier than dealing with a third party investor.

So if you have a home in Santa Santa Clara or San Mateo Counties that you need to short sell, call, e-mail, or text and let mw show you how I can help.

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

Why Hasn't My Offer For menlo Park Short Sale Been Submitted Yet?

Question: We wrote our offer over a week ago. Why hasn't the listing agent presented it yet? The offer has expired. Should we withdraw? Are they playing games and using this to get a better offer?

Answer: Good question. In our area if a seller or agent believes there are going to be multiple offers or wants to have multiple offers they will often set a date for offers and either not present any offers until that date, or keep presenting offers as they come in until that time.  In this case the short sale was listed right at market value, not below market in order to stimulate multiple offers, and the agent said offers will be presented as they are received.  The agent told me he had the flu and was not able to get together with the client. I spoke to him on the phone and he does sound very sick. He is not faking the illness. He is an independent broker with no agents working for him who could meet with the sellers. While this is not particularly convenient for us, I believe he is telling the truth.

Real estate transaction involve trust and are not always predictable. Sometimes you trust one of the parties is doing the right thing and they are not, but many times they are. This agent knows you wrote a great offer and are very likely to stick it out for the short sale process. 

So the bottom line is if you want the house you should hang in there and if you do not want the house withdraw the offer. But you have no control over what the agent does, what the lender does, or what the seller does. You need to do what you want and what is best for you and hope the other parties in acting in their best interests coincide with your best interests.

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