Categories: Foreclosure Information, Library Square, MidVale Estates, Neighborhoods, Selling a Home, Short Sale Information, The Escrow Process, VNSO Park July 14th, 2010

In these difficult times there is a very good chance that you are either in trouble with your mortgage or that you know someone who is.  There are many ways to escape a troubled mortgage, and they all have distinctive downsides and upsides.  In helping people, I found this guide which summarizes some of the implications.  This is a “must read” primer, even if you think you are past the primer stage. 

The Guide to credit after foreclosures, bankruptcy and short sales

CLICK on this link for a Detailed, printable PDF

Categories: Buying a Home, Foreclosure Information, Short Sale Information, The Escrow Process June 10th, 2009

Check this List before searching for your home

So you have navigated finding your dream house, now it comes time to enter the negotiations.  This time period is certainly fraught with anxiety and stress even in the best situation.  Laws vary from state to state and traditions vary from region to region on how negotiations are to be carried out so this info is based on California Law and Southern California practice, particularly Sherman Oaks and the San Fernando Valley. 

1) banks, distressed properties, short pays, and any other non-conventional sales follow their own rules  

 -you may never understand their reasoning and it may make absolutely no sense.  The unpredictable nature of these sales wreaks havoc on the orderly process an experienced agent prefers to use.  Even though it seems as if the buyer should have an advantage over the entities that want to sell these assets, the truth is the “seller” is completely unemotional, completely detached from the sale and is just as interested in protecting themselves as getting the property sold. 

2)  Sellers don’t always base their decisions on market influences or sound reasoning 

-they often put more value on their needs than what the realities of the market are.  If this is the approach they are taking you as the buyer may never convince them that their house is worth less than the much superior house down the street.  This leaves you 2 choices, walk away from the property, or compromise with them for some combination of market value and their needs.  If you like the house enough, it may be worth it.  And that really is the definition of market value after all

3) Escrow period and occupancy are sometimes the most difficult terms to reconcile

-most of the other factors in a contract are fundamentally financial based.  This deals with the roof over the sellers head and they have objectives you may not know about.  It is difficult to compromise when the 2 sides have conflicting needs.  Often one party simply needs to swallow their pride and give in.

4) Time Frames are important

 -good agents, both buyers and sellers agents, understand the importance of keeping a deal moving. Each offer and counter offer (as well as contingencies) has an “expiration date and time”.  Not responding in a timely way or responding too quickly can send a message to the seller.  Your experienced agent needs to carefully strategize your response and you need to follow that advice. 

5) A deal is not done until it is signed by everyone

– in California oral agreements are worthless in real estate transactions.  Your agent may go thru complicated acrobatic moves to get a “fully executed purchase contract”.  Cooperate with them and realize it only takes the blink of an eye for a seller to change their mind or for another offer to get submitted.  It is a shame when all parties have worked hard to come to an agreement just to have the whole ball game changed by delaying or just plain lack of attention to this detail.

Understanding some of these pitfalls can help make the process much easier on all parties involved.  Select your agent carefully and follow their advice.  Be prompt and conscientious in doing what they suggest.

Categories: Buying a Home, Foreclosure Information, Short Sale Information, The Escrow Process June 10th, 2009

Despite the joyful outcome buying a home can be a very arduous task with many bends and obstacles in the road.

Some are predictable, some are not.  It is always better to anticipate and address the potential problems before a contract is signed and escrow is opened.  These are just some of the things which should be considered when getting ready to buy a home.

1) I thought my credit was excellent

 when you are considering buying a house, it is a good idea to sign up with a service to see you current credit report to fix any blemishes and maintain a monitoring service up to the time a loan is funded to prevent any surprises

2) I thought my spouse and I agreed on our priorities

 I have seen several marriages dissolve before my eyes when different priorities emerged.  This article is not about marriage counseling, but a clear understanding of a couples goals are imperative, when under the gun to make a purchase is not a good time to reconcile these types of differences

3) This agent does not care about me 

 Like any other industry there are good agents and bad.  A good personal referral to an agent who has been in the business for many years is imperative to insure dedication and honesty. The advice your agent will give you is imperative and often hard to verify.  If there is a “community” of clients you are more likely to receive top notch care as the agent has a vested interest in keeping you happy so their reputation remains intact.

4) “My” bank does not value my business –

Lenders are a dime a dozen and the bank around the corner does not necessarily have the best deal for you, much less offer the best if they have it.  Mortgage Brokers, Mortgage Bankers, Direct Lenders, and Credit Unions all have different bags of tools to use.  Make sure you hook up with the best source for your specific needs, this will take some research and hard questions

5)  I can’t afford to buy the home I want

I guess this is not a surprise!  Finding a home should not be considered making compromises but trying to get the best package. The correct combination of Size, rooms, location, amenities, condition, neighborhood, view, etc will balance your desires to get you the best house for you.  After all many desireable features can be mutually exclusive, for example, in Sherman Oaks, it can be difficult to find a house that is easy to access, that is quiet and yet has a spectacular view.  One of these features will need to be less than ideal to find the house for you!.

Examining these factors is very important in preparing to buy a home if it is your first one or the last one in a long line of home purchases.  This understanding can be instrumental in a successful close and move in.  This article is just one of a series written by an agent in the field who helps people buy and sell and move for a living. Check out all the other articles for practical sense advice on the process of home ownership.