New Port Richey, Florida Real Estate Blog: June 2010

Is there progress among servicers in the short sale world? REO Insider recently reported on how Deutsche Bank ranked top mortgage servicers based on short sale timelines. Here's how the rankings shook out based on mortgage type and average time to complete short sales. We know there's progress in the industry (agent education, new processes, HAFA, etc.), and we'd love to know what you think about this:

Prime:
1. GMAC - 6 months
2. Citigroup's servicing arm CitiMortgage - about 7.5 months
3. Wells Fargo - roughly 8 months

(Countrywide - now owned by Bank of America - had the slowest short sale timeline at an average of more than 13 months)

Subprime:
1. Wells Fargo - more than 15 months
2. HomEq Servicing - 16 months
3. Morgan Stanley's servicing arm Saxon Mortgage Services - at a little more than 17 months

(Equicredit and Ocwen came in last with an average of more than 29 months on their short sale timeline)

Option-ARM:
1. JPMorgan Chase's EMC Mortgage - just over 8 months
2. Aurora Loan Services - 10 months
3. GMAC - just more than 10 months

(Again, Countrywide brought up the rear with a short sale timeline at almost 14 months)

Alt-A:
1. First Horizon - just over 9 months
2. Both Wells Fargo and Aurora - roughly 11 months

(Here's Countrywide again at the bottom at more than 13 months for their short sale timeline)

 

ReBlog via CDPE

Some days I feel like banging my head against the wall.

I heard a friend say recently that she didn't understand why her neighbor's house had not sold. After all, they went with the Realtor who gave them the highest price.  Said just like that.  Never once crossed  her mind how inconsistent with success that was and she had no understanding whatsoever that her neighbor was likely "bought" with a too high price that the agent knew he couldn't bring in.

Thus the head banging.  How do I counter the assumption that people have that we as agents are going to get you more than your house is worth?  The market dynamics are what they are and the true competence any seller should be seeking is to find someone who understands that market with a keen sense of buyer urgency, has a marketing plan that includes many creative ways to get your house in front of buyers and a good grasp of  the current financial climate. 

You are not selling your house to the highest bidding real estate agent.  I'm going to repeat that.  You are not in a bidding war with real estate agents.

But you are in a war with other sellers to compete for the same pool of buyers.  And that is the critical role of a really good listing agent:  to bring the market to you.  The most market possible so a probable buyer will surface and buy your house. That buyer is going to set the final price for your house if you decide to take it.  Not the listing agent!!

I experienced this recently with sellers who interviewed me to sell their home but wouldn't tell me what they thought it was worth or what they were considering selling it for.  They said they really liked me and wanted to go with me "based on the price I gave them."

That head banging thing again...

No matter how many times I said it was like playing Pin the Tail on the Donkey to find the right price at which they'd hire me, they never saw the error of their ways.  Or maybe they did and just thought that if they kept up the search they'd find someone who would do a CMA and come up with the elusive price they were looking for.

Seriously, how can anyone expect a professional to work like this?  And how easy do you think it would have been for me to say  because I have such a good marketing plan, I'm sure I'll be able to get you $1.2M for your home, when I knew it would likely sell for no more than $1M.   They would have signed an exclusive listing agreement with me so fast, but before the ink was dry we'd be talking about how the market wasn't responding and they'd have to think about a price reduction to get sold.

There was an agent in this particular market who very likely would do exactly what they thought they wanted.   They have no way to connect the dots and know the postcard they received from the agent touting her success at selling another home in their neighborhood, did so with 485 days on market and a 20% reduction from the original price to the sold price.  That was a painful process for the seller and one that could have been avoided if they had listened and chosen the agent who could help them:

1) Get the home in the best condition and get excellent photography in place

2) Understand the market pricing and help them price with their motivation and needs in mind but with the fundamental reality that the buyers would set the final pricing

3) Market the house with more than just the local MLS in mind.  The house needs to be marketed all over the Internet so there is widespread coverage that brings in the buyers who are relocating as well as any local buyers.

4) Help them get out of their own way so they can successfully sell their home and get on with the next phase of their lives

I fully understand the lure of that high price someone gives you.  It's like the siren song that reels you into the rocks...  As a seller you need to remember that your focus is on hiring someone who can back up the recommended pricing and get your house sold.  Just because you can throw a rock and find someone who will tell you what you want to hear is not reason enough to hire them for one of the most important transactions in your life.

---

If you are looking to buy or sell a home here or in one of the other lovely surrounding Bethesda real estate communities, please start your search by calling me, a Bethesda Realtor. 

Search here for all Bethesda homes for sale with no registration required

Serving the Greater Bethesda, Chevy Chase, Potomac, Kensington area communities and other surrounding areas.

I'm available to help you!

Josette Skilling

Real Estate Professional
Long & Foster Real Estate, Inc.
Cell: 301-385-9213
Email: j.skilling@verizon.net
http://bethesdabuzz.com

Copyright © 2010 by Josette Skilling

Bethesda Real Estate and Bethesda Homes for Sale

A while back Lenn Harley posted a fantastic post on an opportunity she had to meet with an underwriter face-to-face.  It was a great article and Lenn's insight and thought provoking questions prompted me to contact her to see if she would allow me to write about a specific portion of her blog post.   First, I would like thank Lenn for her kindness and generosity in talking with me at great length.  Her wealth and depth of real estate knowledge is considerable and her willingness to share is immense.

I was particularly taken with her series of comments about the relationship between the underwriter and various entities involved in the process of getting a loan through the thing called "underwriting".  The following is Lenn's list:

"WHAT SHALL I ASK?  The meeting had no itinerary, so I decided to simply prepare a list of questions covering the relationship between the

• underwriter and the loan officer
• underwriter and the investors
• underwriter and the loan types offered
• underwriter and MI companies
• underwriter and LTV, income/debt ratios
• underwriter and AMCs
• underwriter and appraisal problems/reviews
• underwriter and title companies
• underwriter and funding resources
• underwriter and contract dates/contingencies "

 

Pulling on my experience in wholesale lending and the graciousness of the talented underwriters I have had the pleasure of working with throughout the years, I wanted to dissect the various relationship components as a way of "pulling back the curtain" in the finance process.  In order to address them thoroughly I am going to segment these posts into various "Parts"

 

Part 1: The Underwriter and the Loan Officer

 

I recently wrote a blog post "Nanny nanny boo boo....The Underwriter does not like you!" that addresses this issue specifically, Briefly, the "relationship" between the underwriter is based upon the quality of workmanship evident in the loan package.  Underwriting is strenuous and stressful...their job is on the line with every signature and they are also under a lot of pressure to "close" loans.  Think of the proverbial "Catch 22"....the lender needs funded loans to stay in business, but doesn't want to have any loans default.  The firm the loan officer works for (as well as the loan officer) is "underwritten" with each loan submission:

 

Let's start with the loan package itself.  Is it complete...all documents and all pages submitted in the correct order?  Are the copies legible?  Has the loan officer/processor followed the lender's submission standards and stacking order?  Has the loan officer read the guidelines to confirm the file meets the minimum standards for the specific mortgage product?  Has the file been delivered in a timely manner to ensure it can progress through the system in an orderly and timely manner?  Is the loan officer only sending crisis and/or rush files?

 

The loan package exemplifies the loan officer's knowledge, as well as the respect for the underwriter's time and obligations.  More often than not, a file is suspended or declined based entirely on the actions (or lack of action) of the loan officer/processor.

 

**Let me digress a moment to state that more than a few loan officers have been ‘thrown under the bus" by lousy processing.  And, many a good loan officer has left a company because the lack of quality processing cost them business and additional stress.  Most good and talented loan officers choose or stay with a company because of the processing, not the rate sheet!

 

Now, consider the loan officer and the firm that he/she works for:  This area is almost 100% professional reputation and experience.  How long have they been submitting loans/files to the underwriter?  How many files have been submitted in the past month, quarter, year?  How many of the files that were submitted were:  Approved?  Declined?  Suspended?  A good loan officer at a poor brokerage (and vice versa) can be tainted by the actions of the other.  Has the broker ever had a "first payment default" on ANY file they have submitted in the past? (NOTE:  This is the "kiss of death" for any investor or lender.......the broker would likely be put on notice for a buy back of the loan).

 

Ask your loan officer about their relationship with the underwriter.  Do they know them?  (by name, reputation, experience)?  Do they respect underwriters in general?  Beware the "all underwriter's are tough, bad, etc....you are ultimately working with someone who like to play the "blame game". 

 

The "SECRET":  Your loan officer has little prayer of getting an exception or a rush if they are not "known" to the underwriter.  More than once, my underwriter's (both retail and wholesale) have bailed my tail out of the fire on a file.  They are, and have always been, my "Best Friend's" in lending.

Deborah Garvin

loanmonarch@yahoo.com

(619) 787-8212

"contact me when you need knowledge, experience and ethics in the financing process."

Can I buy a home immediately after a short sale? The answer is yes.

  The other day I received a call with this exact question from a Woodbridge, VA short seller. I answered, "Yes you can with FHA, if you meet the following qualifications":

• Home short sold cannot be a FHA loan
• Must have been current on mortgage at time of sell
• Sold home must not require deficiency payment for the difference
• 620 minimum credit score
• 3.5% down payment
• Short sale caused by extenuating circumstances and not just a person trying to take advantage of the market (by selling short and buying same type home at half the price)
  

The last requirement of extenuating circumstances is where it gets cloudy. An extenuating circumstance, according to FHA is one of the following:

• Job loss or loss of income
• Sickness or illness of the borrower
• Death of a wage earner
• Circumstances beyond your control
  

If you don't meet the above criteria; here are the time frames you have to wait before purchasing again:

-Fannie Mae Conventional 2 years with 20 percent down payment
-FHA- 3 years from time of sell

As we continue to be in this market of short sales and foreclosures look for more lending guidance to come with hopefully shorter time frames. Buyers should not be punished or kept out of the market for situations beyond their control.

    

Need an FHA loan in Woodbridge, Va,   have a question, or did the post tickle your curiosity... now feel comfortable giving me a call (703-497-3936), or shoot me an email (I have Blackberry).

Markita Aldridge-Woods of WestStar Mortgage, Inc. Contact me via email or call me direct at 703-497-3936 for answers to your questions about mortgage financing.  Or get pre-approved today to purchase your home.

I service Woodbridge, Lake Ridge, Dale City, Fairfax, Stafford, Fredericksburg, Manassas, Manassas Park, Quantico, Ft. Belvoir, and the Virginia surrounding areas.

We offer FHA, VA, VHDA,USDA, and Conventional financing.

(WestStar Mortgage Inc. is licensed by the Virginia State Corporation Commission and License No. MC-1875)

 

This is a brave story of a young lady in Yorba Linda and I am calling all Caring People because Brielle is a  woman of faith that needs our strength in the form of this prayer request.

I hope to show her this posting, at the end of the week, with dozens of get well comments, dozens of re-posts, and many good wishes that will make her day!

Brielle Murray is 12 1/2 years old.  She is the big sister to two younger siblings.  In January of 2008, she was diagnozed with Rhabdomyosarcoma, a cancer that attacks soft tissue.  The baseball-sized tumor in her right ear canal was so large that it was deemed inoperable.  Brielle went through eleven months of Chemotherapy and Proton Beam radiation so you know she is one tough cookie!  On November 17th, 2008, the cancer was not evident on her MRI and PT Scans.

Brielle had a standard 3-month check-up on February 25th, 2009 and was still cancer free, but on April 21st, 2009 a new tumor had grown in the same location.  This one was operable, so Brielle had surgery to remove the tumor and underwent extensive chemotherapy and a Stem Cell Transplant over the next eleven months.

Brielle had a routine 3-month check-up and she was well enough to come home on December 7th, 2009. Brielle was so thankful to be home for Christmas, and her Mom and Dad planned many fun activities and learned to appreciate living one-day-at-a-time. Brielle was able to celebrate her 11th birthday at home in January, and again there were no signs of cancer in her body. Brielle's 3-month check-up in February showed she was cancer-free, but her next check-up on May 21st showed that new tumor growth had occurred in the same location as before, and in the lining of the brain, and another which is wrapped around a facial nerve in the ear canal on the right side.

Brielle had her second surgery on June 9th, 2010 at UCI in an attempt to remove these tumors. Dr. Djililian was able to remove a considerable amount of tumor, but because of the complexity of removing the remaining tumors, Dr. Djililian decided to stop, and give opportunity for Brielle's parents to consult with him and the neurosurgeons at UCI about the risks and benefits of proceeding with further surgery.

To show you what kind of spirit Brielle has, when she woke up in the recovery room, she looked at her Mom and Dad, and said "Big Eyes" and made a funny face. She did this because the day before, her little sister Jaden was goofing-off and being funny, and made the "Big Eyes." The very next thing Brielle asked was, "Did they get all the tumor?" Jim and Lisa were honest with her, and said that they did not. Brielle knew exactly what this meant, and said, "What do we do next?" This little trooper is a fighter, and she is determined to win this battle with her cancer. Upon further evaluation and consultation with Brielle's parents, with the neurosurgeons at UCI Medical Center, where the recent surgery was performed, with City of Hope head of oncology, where Brielle has been treated over this past year, and with the head of Oncology at CHOC Hospital where she was treated during her first year, it has been decided that Brielle will have yet another surgery on Wednesday, June 16th. The surgery will begin early in the morning and is expected to take at least 20 hours, as three different surgeons with different areas of expertise will be coordinating their efforts.

More details can be found here.  In the meantime; help me by calling all Caring People to this prayer request.

A referral is sending someone you care about to someone you trust! 

Vic Steele, Broker, CA DRE License No. 01349863
Valet Real Estate Services
571 N. Poplar, Suite H, Orange, CA  92868

Vic@SteeleGroup.net

SOMETIMES EVENTS SIMPLY DEFY DESCRIPTION!

At RainCamp in DC last Wednesday, while having a lovely conversation with a friendly agent I've known "remotely" from ActiveRain for a few years, we were interrupted by a person who introduced himself to me.

I held out my hand to give him a friendly hand shake, which he ignored.   Oops!  After a morning of hugs and handshakes from ActiveRain members, this cold stare said to me that something was different.

ALERT!  . . .  ALERT!   UNFRIENDLY AURA NEAR?

He introduced himself and I immediately recognized the name of his company.

"I'm "so and so" with "such and such real estate".  I had to pay you $10,000 for copyright . . . . ."

WHAT WOULD YOU SAY??  I now knew that he didn't intend a friendly conversation.  Fernando was politely standing by.  So I just said. . . .

"THANKS FOR THE CONTRIBUTION."

Not satisfied, he continued with something like"Everybody else is satisfied to have their XXXXX removed, but not you . . . . . . ." 

At which time, I just turned away and Fernando, always the gentleman, and I continued our conversation.  The angry man left.

HOWEVER, WHAT HE SAID WAS MEMORABLE. "Everybody else is satisfied to have their XXXXX removed"

BINGO!

When a competitor is caught red handed with my copyright protected property included in the content of their web site, my procedure is NOT to ask them to "TAKE IT DOWN".  My procedure is to send the "evidence" to my attorney and he does what he does very well.  He collects damages for copyright infringement.

HERE'S THE QUESTION.  If the angry man was at ActiveRain camp, it would appear that he is a member.  Wouldn't it follow that, before using my map images on his web pages, he'd read my ActiveRain content of which there are almost 40 posts about copyright.  One thing that is consistent, when an infringement is discovered, there is no request to "take it down", as he said others do. 

My posts about copyright on ActiveRain is "notice" to folks that I proceed when copyright infringement is detected.  

 

                 

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.

_______________________________________________________________________________________________________


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You hear about Curb Appeal when selling or buying a house, but what is it and how do you get it?
Does it means the house has nice curbs?  Well, that's a good start  but Curb Appeal to the buyer means that when they see a picture of your exterior on the MLS, a mental "check mark" is placed by your listing.  
 
Curb Appeal means that when  a Buyer drives by your house, they want to schedule a viewing appointment through their Realtor.

Curb Appeal means that when Your Buyer pulls up for their appointment, they want to go in and they are eager to see the rest of the house. 

Curb Appeal sets the tone for the rest of the viewing.  Your Buyer is now predisposed to want to like the house.  They are hoping the interior will match what they just saw.                                                                                                                                  

So, how do you get it?  Here are  10 points to consider:

1. Take a Walk!  It's not just a healthy thing to do, but sometimes we're complacent with our surroundings.  So, take a walk (or slow drive ) around your neighborhood and look at the curb appeal of your neighbors.   You might see that your lawn is not really green but yellow/brown/green when compared with your neighbors.    Make note of the houses that appeal to you and  what stands out.  

                                                                    

2. Pay Your House a Visit!   Most of us enter our homes through the garage or back door.  When is the last time you "called on" your own home?  What you see is what your Buyers will see.  Don't be shy.  Start at the driveway or by the curb and pretend you're  looking at your home through a buyer's eyes.  Take a critical look.  
     Cracks in the sidewalk?  Are you dodging overhanging limbs?  And what does your Welcome Mat say??  One of my favorite mats was at a friend's back door.  It said "Go Away" .  I love it, but.... not for welcoming your buyers.  
     If you have planters and pots who have been waiting to host a new, healthy plant for a few years now, then ditch them.

                  
     
3.  Off with their heads (or legs).  Take a look at your poor neglected flowers.  Time to "dead head" them.  Remove the flowers that have seen their best days.  And particularly here in Florida where plants can grow several feet overnight, it's important to take a look at some of those plants that have gotten too leggy .  You know the ones I mean.... you start to see more stem and branch then green leaves.  Trust me, those stems are just going to get leggier and the green will be at the very top of the bush.  
     Why is this so important?  Neglected landscaping says to your Buyer that there are probably other areas of or in the house that have also been neglected.

                                                                                                                   

4.  Color My World!  Like your interior paint scheme, adding "pops" of color in your landscaping takes it from being all green and bland to exciting.  
     You can take a large clay pot and fill it with whatever colorful flower is in season.  Caution: Do not plant anything that will take daily watering and care if your schedule will not permit that.
     
5.  Cover it Up!!   It's amazing what a layer of fresh mulch does for dirt.  Think of a 3 layer chocolate cake with raspberry filling.  Without the ganache frosting, though, it's just cake.  Add the frosting and now you have a beautiful dessert. Same thing with mulch.
                                                                                           

6.  Get a Handle on it!   Your buyer walks up to your front door with her Realtor.  More than likely they will spend some time their as the Realtor has to fidget with the lock box or whatever and then fiddle with the keys to open the door.  
     What are the Buyers doing???  They're eying the place!  They have plenty of time here to notice that your once beautiful door handle is now rusted or tarnished.    Or they may see your former beautiful wood door is discolored and fading.  
     Time to hit Home Depot or Lowes.  It's a very small investment for the return you'll get.

7.  Oh what a Tangled Web We Weave.... As mentioned in #6, your buyers will have plenty of time as they're waiting to enter your home to size it up.  If they have to walk through spider webs to even make it to your front door, then unless they're into long nature walks, this is not a good feature.   Also look up by your door and garage.  Check out the corners for those pesky webs.  

                                                  

                                                              

8.  Heads UP:  What takes up a large part of a buyer's visual space when they approach your home?  Your roof!  It has to pass inspections anyway so take care of whatever needs to be done BEFORE you list it.  Can it be cleaned?  Re-shingled?  
      What you don't want it to say to the Buyer is:   "That's another $30,000 we have to put into the house if we buy it."

9.  Mail Call!  In front of some of our houses here in South Florida  stand manatees with mailboxes for their mouths.   Now I love manatees but in reality, they're not a pretty animal.  I've also seen mailboxes that finally got tired of being straightened after being endlessly hit and have now given up and have a defeated look to them.  
     Get my drift?  Sellers, your mailbox is one of the first things your buyer will see.  Make it count.

                                                                                

10.  Valet please!  Everyone in the family has a car now.  There's probably one waiting for your 10 year old when he or she comes of age.  Unless you have a super-sized driveway and front yard, filling your driveway with all of your cars thus making your buyer have to walk a maze to get to your front door detracts from the experience.  
      When showing your house, arrange to have your cars either in the garage or elsewhere.  Let your Buyer see the house!

What all of this boils down to is that you want the viewing experience for the buyer to be a positive one and that will start with the curb appeal of your house.   The investment you make can pay off with a quick sale.
 
For more information enlist the services of your local professional home stager.

 

Room Service! Home Staging
561-914-6224

Kathy@MrsHomeStaging.com
http://www.MrsHomeStaging.com

 

 

          

What was your first reaction when seeing this property?

Assuming that you’ve been there in person before writing an offer, the initial price must have been within your reasonable range, or you would have skipped it altogether. Was there something objectionable about the property supporting a lower price?

Is the home price overpriced or in step with the current market?

How does the price per square foot compare with others of equal size, location and condition? Is there a surplus of properties, or are inventory levels below average?

What kind of seller is in the equation?

If this is a foreclosed property it is likely priced below market value. The bank’s strategy is to get it off their books, and fast. Most times the house has been vacant for a substantial period of time and its condition can be less than ideal. If it’s seller owned, but a short sale, the listing agent may have priced it far below market to attract a quick sale to stave off foreclosure. That doesn’t mean that this low list price will actually be accepted by the short-selling bank. It’s simply a starting place to entice offers. If the home is an equity sale it may not be a distressed sale.

Are there many distressed properties comparable to this one?

One foreclosed property or short sale does not set a new price level for an entire neighborhood, although it may have altered buyer’s perceptions of such. If there are other regular sales in the vicinity, or a low percentage of distressed properties in the surrounding areas, that will carry more weight.

Consider the appraisal.

Let’s just say that you make a grossly below-asking-price offer and the seller accepts it. If the appraisal comes in higher, how likely is it that the deal will go through? If you’ve made a low offer that is supported by the appraisal, then you’re likely to have more bargaining power when returning to the seller for a price adjustment.

Is some recent home buying/selling experience influence your judgment?

If you recently sold a home and got beat up on price, you may feel justified in doing the same. If it was recently and in the same market, it may make perfect sense. But if this was a year or two ago, or in a completely different location, you may not be comparing apples to apples.

Do you love the house, and really hope you can buy it?

If your offer is deemed ridiculous, you take the chance of setting the tone with the seller, be it bank or otherwise, that you are not a serious buyer about this property, but just looking for a deal.

If your home was on the market and you received this offer, what would be your first impression?

Would you be angry, disappointed, insulted? Those are very often a seller’s first reactions. I’ve heard more than one state – I’d rather take it off the market than sell to these people. Perhaps you think it’s worth giving it a try and it very well may be. But…..

What do you imagine the seller’s response will be?

Accept it, counter it, or reject it outright? You may be expecting the seller to counter you, no matter how low the offer starts.  However, it’s always good to play the what if scenarios, and determine what your reactions to each possible outcome would be.

How will you feel if you don’t get it?

Is this the house you want the most of all you’ve seen? How long do you expect to live there? It’s a good exercise to run numbers through your mind. “If I get it for $10,000 less, I’ll love it even more!” “If I paid $20,000 more over the next 5 years that I live here, would I be ok with that?” Just some food for thought…….