Short Sale Help Silicon Valley

Why do Short Sales take so long?

realtyrick — Thu, 20 Jan 2011 00:33:05 +0000

Short sales (the name is an oxymoron) seem to take forever to get approved and close. Most of the time, Buyers, sellers and Realtors just blame the bank and throw up their hands. Here is what most of them do not know:

Take a look at Bank of America. They are the largest loan servicer in the world, servicing over $2.5 Trillion Dollars in home loans. Only about 10% of these loans are actually B of A loans, the rest are being serviced for the over 500 investors and lenders who acutally own the Notes.

While B of A can give a reasonably quick response on loans they own, say in 60 to 90 days, the other loans are different. Each investor has different guidelines, each has their own maximum loss point, each has their own formula for determining how the borrower (seller) should be treated in a short sale. On top of that, all communication has to go through B of A, then to the Investor, then back to the seller’s agent. This takes time, and is frustrating. Especially when an investor comes back and says “The lowest pay off amount we will take is $…. ” and all parties know the home is worth way less. The seller’s agent is flabbergasted, cannot believe how dumb the lender is and spouts off on how the whole mess it the lender’s fault.

In reality, the investor calls the shots. Often an investor has a maximum loss they are willing to take, if the payoff to them in the sale results in a bigger loss, they decline the sale. The investor feels they are better off taking the property back, taking control and re selling it.

Also, Mortgage Insurance is involved in most short sales. Insurance companies trying to avoid paying a claim. They factor in the equation also, and sometimes, in order to make a claim, the lender has to suffer a loss. In many instances the insurer says there is no loss if a short payoff (short sale) is agreed to. Now the lender cannot collect on their claim, so what do they do? Raise the amount they are willing to accept, or decline it altogether. that is the smart move for the investors, maximize their return (minimize their net loss).

That is their right, it happens often, and now you know a bit about what really goes on behind the scenes.

In Foreclosure or Default, there is a difference.

realtyrick — Sat, 15 Jan 2011 00:55:44 +0000

About 5 million borrowers are at least two months behind on their mortgages (AP, 01/14/2011). Are all of these people in Foreclosure? In California, these folks would most likely be in default, in other words, they have defaulted on their loan by not making the payments acording to the terms of the Note. Being in default is quite different than foreclosure, however foreclosure is sure to follow if the borrower does nothing. Most lenders are typically not starting the Foreclosure process in California until at least six monthly payments have been missed.

The actual start of a Trust Deed Foreclosure (In California, over 98% of all residential foreclosures are by the Trust Deed Process, instead of the Judicial Process) does not start until the lender records a Notice of Default at the County Recorder’s office. The borrower then has 3 months to make it right with the lender, if not, the lender then records a Notice of Trustee Sale. When that is recorded, the lender then can sell the borrowers home at auction (if the borrower does nothing to save the home) not less than 21 days from the date the NOS is recorded.

Borrwers in trouble are not in Foreclosure in California until the Notice of Default is recorded, until then, they are in default.

High Risk Tenants

realtyrick — Wed, 26 May 2010 08:05:03 +0000

One of the tasks of a property management company is to keep a property continuously rented and earning money for its owner. The company generally conducts a screening test. A good property management company after a time develops a gut feeling for high risk tenants. In most cases such types of tenants are scrupulously avoided. Rejecting an applicant has to be done tactfully because some might fall in the protected class and rejecting them might invite legal issues.

Here is one red flag of a high risk tenant.

A recent change of marital status could mean a potential loss of earnings. This happens when one partner in a freshly separated couple rents a premises, and after a few months of occupation the couple reconciles. This means a potential vacancy which costs money. Another possibility is where the other partner returns to settle differences, which often end in situations where the police are called. Angry neighbors protest and the tenant might have to be evicted. Some state laws allow a woman to move without notice or penalty when she lives in fear of harassment from her husband or boyfriend. This is just one scenario that property managers are wary of.

Rick Smith Knows High Risk Tenants

Rick Smith, a real estate agent for over 25 years in Santa Clara County has managed his own properties and family properties for over 30 years. He recently started a property management company, and with his many years of experience, Rick Smith has a well developed sense for high risk tenants and as a matter of principle follows his gut instincts. Rick Smith may be contacted by calling 480.482.0539 or through email at rick@clickhomerealty.com.

Some Common Functions of Property Management

realtyrick — Mon, 24 May 2010 10:25:15 +0000

Most people in the United States live in rented properties. Since at some point most homeowners would also have lived in a rented home, most Americans would have dealt with property management companies and landlords. Hiring a property management company takes an immense burden off a landlord, especially in matters related to property maintenance and repair. A property management company will also be a huge relief to many renters as the management company not only takes care of maintenance of the home, but also often looks after the lawn and garden. Management companies deal with all sorts of property related issues. Here are some of the most commonplace tasks they perform.

A property management company looks after appliances like dishwashers, fridges, ovens and disposal systems. Should any of these stop working or not work properly, a quick call to the property management company should take care of it. The service extends to general plumbing, water heaters, furnaces and air conditioners. Other areas of service are attending to broken furniture, cracked windows and broken doors. One of the most common maintenance issues that a property management company is called for is carpeting and carpet replacement. Often a part of the renter’s deposit is earmarked for cleaning of carpets when the renter leaves, especially if the renter had pets. The management company takes care of it. So a property management company benefits not merely the owner but the renter as well.

Rick Smith Diversifies

Rick Smith a Santa Clara Real Estate Broker, has recently diversified into property management. Having been in the real estate industry for over 25 years, he knows the ins and outs of property management and also the legal aspects of what it entails. Rick Smith can be contacted on 408.482.0539 or through email at rick@clickhomerealty.com. Currently his area of operation for management is for single family homes and multi unit properties up to 10 units in Santa Clara and San Mateo Counties.

The Scope of Property Management

realtyrick — Wed, 28 Apr 2010 07:16:01 +0000

Property Management is the administration of a property by an appointed third party for a fee, on behalf of the owner of the property. For this the manager handles the day-to-day running of the property as the legal representative of the owner. At time of appointment the owner and manager enter into a written contract which details the duties expected of the manager and the compensation the owner will pay in return.

Why property management

There are a variety of reasons why property managers are appointed. The property owner might live far away and find it inconvenient to manage the property, or the owner might own several properties which makes managing all of them unfeasible. In some cases the owner might be strapped for time to become personally involved, while some owners prefer to divorce themselves from the duties of day-to-day management.

Property management includes property maintenance, overseeing building repairs and taking care of outgoing expenses. Sometimes a rental property management company is retained where the properties are rented to tenants. Rental property management companies offer services like securing tenants, negotiating rental lease agreements and marketing rental properties.

Rick Smith is a leading Bay Area realtor who has managed rental properties for over 26 years. He offers the complete gamut of services from finding tenants, dealing with day-to-day management including tenant related issues, property maintenance and preparation of monthly statements. For further details please call 408.482.0539 or email at rick@clickhomerealty.com.

The Essentials of a Good Property Manager

realtyrick — Mon, 26 Apr 2010 16:57:44 +0000

Choosing the best management company to look after your property is critical. After all, you entrust your property to someone so that it is well maintained and meets all mandatory requirements without leaving you vulnerable to actions from tenants and other bodies. In addition you expect that the management company would tenant the property with the right kind of tenants and send you detailed monthly statements along with the remuneration.

What to look for in a property manager

A good starting point is to visit some of the properties being maintained by the company you are considering, and see how well they are maintained. If possible meet some of the tenants and enquire whether their issues are being addressed satisfactorily and in a timely manner.

A management company’s fees should be reasonable for what it contracts to do, but one shouldn’t be swayed by the lowest fees or discard a company for this reason. Meeting with the Better Business Bureau is a good idea to check the credentials of the proposed company.

Rick Smith is a Bay Area realtor with 26 years of experience in property management. He has recently formed RCS Property Management, LLC to manage properties in Santa Clara and San Mateo Counties. At present he restricts himself to single family homes and multi unit properties of up to 10 units. With the wealth of experience backing him, Rick Smith has the tools for the job. He may be contacted at 408.482.0539 or emailed at rick@clickhomerealty.com.

Short Sales Are Under The Lender’s Control

realtyrick — Thu, 22 Apr 2010 05:35:54 +0000

A short sale is so called because it falls short of the amount of the mortgage. This happens when a seller cannot raise the cash to meet the shortfall. The deal can be completed only when the lender consents to accept the shortened payoff. Short sales are the recourse of desperate sellers to avoid a foreclosure which would be disastrous to their credit history. Lenders don’t readily agree to settle for less than what they are owed. A lender reluctantly consents to a short sale when he is convinced that the homeowner simply cannot raise the cash. The lender has two options – either agree to the short sale and write off the unpaid debt or foreclose on the home and re-sell it. The choice is the lenders, not the sellers. An approval for a short sale is a slow, frustrating, arduous task fraught with roadblocks and is often, when a professional negotiator is not involved, denied by the lender.

What Derails a Short Sale

A number of factors could derail a short sale, like the payout from mortgage insurance which could mitigate the loss sufficiently to convince the lender in favor of foreclosure. The sale could also be spiked by lenders holding second mortgages such as home equity lines of credit. Though second mortgages are at the back of the queue in loan payoffs, a lien release must be received by them in order to transfer Title to the new buyer. If the second does not agree, there can be no sale.

Rick Smith is a Santa Clara realtor who has specialized in short sales of Bay Area homes. He has been long enough in the industry to have established an excellent rapport with most lenders which has helped him to succeed in most short sales he has negotiated. Check out the testimonials on his website www.ricksmithrealtor.com or contact him at 408.452.0539.

A Case to Walk Away from your Mortgage

realtyrick — Wed, 21 Apr 2010 05:46:28 +0000

With no let up in the mortgage crisis and the mounting numbers of foreclosures, homeowners are resorting to desperate measures to free themselves from the yoke of mortgage payments and rid themselves of their houses. An incendiary message is abroad exhorting homeowners to stop making payments if the house is worth less than the mortgage owed. Reports are coming in of homeowners who have simply abandoned their homes, mailed the keys to the mortgage lender and stopped making mortgage payments. The result is inevitably a foreclosure which will impact a credit score and appear on a credit report for 7 years. Under California non-recourse law a lender cannot pursue a homeowner for a shortfall of money, if a foreclosed home is sold for less than the mortgage amount. California law allows this only if it is the first mortgage that has not been refinanced. Some remedial measures designed to restructure the loan in place to permit the homeowner to retain the home and avoid foreclosure. These mitigating measures are restricted to homeowners who still reside in their home. Before walking away or agreeing to the lender’s demands, seek counsel from a competent Real Estate Agent and an Attorney.

A Better Alternative

However, a more judicious approach for a beleaguered homeowner is to make a concerted effort to communicate with the lender to explore the possibility of an alternative before walking away from a home.

Should all avenues fail and a Bay Area homeowner be forced to consider abandoning his/her home and face foreclosure, the homeowner could still approach Rick Smith to negotiate a short sale. Rick Smith has vast experience in short sale negotiations which he has conducted with remarkable success. He is a seasoned realtor who knows the thought process of a lender.

Rick Smith Diversifies

realtyrick — Tue, 20 Apr 2010 09:39:38 +0000

Rick Smith a renowned Bay Area realtor has been in the Real Estate industry for over 24 years. He has also had considerable experience in Marketing, Advertising and Sales. Over the years he has won several coveted sales awards including being nominated ‘Listing Agent of the Year’. Rick Smith resides in Los Gatos and has been associated with Bay Area properties all his life through which he has acquired an in-depth knowledge of the Bay Area real estate market. In the last few years, especially since the start of the economic downturn, he has had his hands full helping distressed homeowners avoid foreclosure through a short sale. Since he knows many key lenders and bankers, Rick Smith has been able to promote and expedite short sale negotiations.

Property Management

Rick Smith has recently diversified into property management. His company, RCS Property Management, LLC manages single family homes and multi unit properties up to 10 units in Santa Clara and San Mateo Counties. Rick has 26+ years of Property Management experience to back him up. To contact Rick about Property Management services, call him at 480.482.0539 or by email at rick@clickhomerealty.com.

Property Management in the Bay Area

realtyrick — Mon, 19 Apr 2010 12:31:43 +0000

Rick Smith a Bay Area Real Estate Broker has recently begun offering his clients property management services through RCS Property Management, LLC.. At present its operations are confined to management of single family homes, and multi unit properties up to 10 units in Santa Clara and San Mateo Counties. Rick Smith is better known in the Bay Area as a real estate agent and skilled short sale negotiator. What many are unaware of is that he also has 26 years of experience in property management. His experience in real estate buying and selling and marketing and advertising complements his new venture. Rick Smith offers a full-service, completely taking the load from the property owners who never come in contact with the tenants.

Rick Smith will:

a) Find tenants for the property,

b) Manage the cash flow, pay mortgage, taxes, HOA fees, repair bills etc.

c) Handle all tenant related issues,

d) Deal with all repairs.

In effect his company will handle everything related to the property and send the owner the net proceeds on a monthly basis. Rick Smith may be contacted at 408.482.0539 or emailed at rick@clickhomerealty.com.