It's a little bit difficult to figure out if a home is offered for sale as a foreclosure flipper in Sacramento. Because when I examine the tax records to determine transfers and who is in title, it might be a mortgage company that acquired title through a trustee's deed. Such a transfer may lead an agent to believe it was foreclosed upon by the bank, but the opposite may be true. It may have been acquired by an investor.
Do you wonder where some of the shadow foreclosure inventory is hiding? Some of those homes are sold to investors who flip them.
When I find a title transfer on a foreclosure like this, I search the name of the entity that purchased the foreclosure home through the tax records and often discover the purchaser is an investor who is buying a lot of foreclosures, either at auction or through a private deal made by the bank. Agents can also get a clue if the listing notes: no FHA buyers, due to the 90-day seasoning requirement.
The nice thing about buying a Sacramento foreclosure from a flipper is the investor will often pay for a pest report, a home warranty and credit the buyer for closing costs or major repairs. Buying a foreclosure from the bank generally means the buyer is purchasing the home in "as is" condition and doesn't offer those types of benefits.
I ran the comparable sales for a Sacramento buyer who was contemplating making an offer on a foreclosure flipper. The comps clearly showed the listed price was under market value by at least 25%. The buyer made an offer, it was countered and he accepted the countered price, which was less than the list price.
Sure enough, when the appraisal came in, it showed the home was worth 20% more than the buyer paid for it. Appraisers are extremely conservative these days and, if they feel pressed, with no other option for value, most of the time the higher appraisals will come in 2% to 3% over the sales price, even if it's worth a lot more. Why rock the boat?
I was stunned to see the appraisal at 20% over the purchase price. Kinda weird to see my professional opinion of value substantiated for a change. This doesn't happen very often.
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.
The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.
Sacramento Short Sale Agent, Elizabeth Weintraub, has the answers to your Sacramento short sale questions.
Natomas short sale buyers pulled up in front of a home in the Sacramento neighborhood of Natomas Crossing yesterday to do their home inspection. First thing we noticed was a garage sale sign plastered over the listing agent's for sale sign. Another sign was taped to the front door: "All appliances and furniture for sale."
It was bad enough the short sale seller rescheduled the home inspection on the 4th of July. The buyers originally had made an appointment for 9:30 AM so they could finish up before noon and enjoy the rest of the holiday. When I called to confirm, the seller claimed that time was inconvenient and pushed us off until noon. His wife was home during the inspection, too, and the listing agent was out-of-town, taking a holiday.
It would have been nice to have taken this particular Saturday off but that's not always possible when one is a Sacramento short sale agent. We do what it takes to get these short sales closed. Attending a 3-hour home inspection in the middle of the afternoon on the 4th of July is one of those duties. Floating down the Sacramento River in an inner tube is not one of those duties.
The next thing I noticed upon entering the home was the chandelier over the dining area had been removed, plus two light pendants in the family room were gone. I found them on the floor in a spare bedroom near boxes stuffed with cartons of cigarettes.
Enterprising folks, these sellers. Wholesaling cigarettes and birds. In the back yard was a large aviary occupied by more than a 100 tweeting canaries and finches.
The seller's wife appeared stunned after our chat. I explained that they can't remove a fixture. Fixtures stay with the home. Although such a discussion is ordinarily best left to the listing agent, I was concerned that if I didn't say something to her then, she might also sell the front door over the weekend.
The buyers made an offer to buy the refrigerator, washer and dryer for $500. Oh, no, the seller replied, those appliances cost $2,200 when purchased 3 years ago. The seller wanted $1,500. It was clear the seller was clueless, which worried me a little, so I asked if she was aware that we're closing escrow in 10 days.
Mrs. Seller just smiled and said, "I guess the buyers will be moving in next month, then?" Um, no, they will be moving in on the day we close, in the middle of July. Her smile vanished.
Gosh, I hope they don't try to sell the stove and dishwasher.
Elizabeth Weintraub is an author, homebuying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.
The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.
Wouldn't you like to earn double commissions? That's how many of the emails I get from short sale scam artists start out, and some of that spam comes from Active Rain. What these "investors" -- and I use the term loosely -- want to do is flip a Sacramento short sale. Their intent is to play the middleman and pick up extra cash in a short sale transaction.
The short sale flipper schemes work like this:
The short sale seller agrees to sell the home to an investor at a certain price, subject to bank approval.
The investor negotiates that price with the short sale bank.
At the same time, the investor sells the home to an end buyer who pays more for it, with a concurrent closing.
The investor pockets the difference between Sale A and Sale B.
This means a Sacramento short sale agent earns a commission on the first sale to the investor, because the bank pays the commission. The agent also earns a commission on the sale to the investor's buyer. As long as the buyer receives disclosure that the home is being flipped, this scam appears to be legitimate, but I don't want any part of it.
The problem is does the short sale bank have knowledge of this? I don't believe so. Because if the bank knew it was losing money to an investor, it's doubtful the bank would allow such a transaction. In fact, some short sale approval letters say the home can't be sold again within a certain time period. So investors could be committing mortgage fraud.
Moreover, who's really getting the short-end of the stick here? It's the seller. Especially if the seller is liable for taxes after the short sale, either to the federal government -- because the home is non-owner occupied -- or to the state of California, which may tax an owner for mortgage debt relief, subject to certain exclusions.
Sadly, the odds are there are a lot of hungry short sale agents in Sacramento who would jump at the bit to participate in these scams. But I'm not one of them. I wouldn't touch such a deal with a 10-foot pole. In fact, I bet the office of California Attorney General, Jerry Brown, would be very interested in receiving a list of these so-called investors . . .
Elizabeth Weintraub is an author, columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.
The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.
Even though we are moving into what is seasonally a slow-down of the real estate market in Land Park, I'm looking forward to an extremely busy month: 8 of my transactions are scheduled to close in July. One of those should have closed last month but the buyer's agent went on vacation, which tends to deliver delays, so one of my Land Park listings didn't close in June -- it closed yesterday.
You might wonder about the last one home on 6th Avenue, but it sits right next to the railroad tracks, and it also sold for all cash in 1 day.
All together, we have had 13 homes close escrow in June in Land Park. If my listing had closed as scheduled, we would have had 14 homes in Land Park close. The average price-per-square foot was $287, and the average days on market were 77. Based on per-square-foot prices for the same period last year, when 12 homes sold, prices have slightly dipped by 2%. But that's primarily because we had a $1,100,000 sale in June of 2008. That home skewed the square-foot averages for last year in June.
Not surprisingly, there were also 13 homes in Land Park that closed escrow in May of 2009. And the price per-square-foot was identical to the June average.
Also, not surprising, Lyon Real Estate owns the market share of the listings in Land Park. I'm proud to say that Lyon Real Estate sells more homes in Land Park than any other real estate brokerage. We own the lion's share of the listings and we represent almost one out of every two buyers for Land Park.
If you're looking to buy or sell a home in Land Park, you can call me or any other Lyon Real Estate agent and feel assured that you will receive exceptional service from an area specialist.
I sold another listing in Land Park for more than asking price and in less than a week this June. The sellers also have a back-up offer. When I brought 3 offers to the sellers for review, I laughed, "Hey, weren't we sitting at this table just a week ago signing the listing paperwork?" It helps a listing tremendously if photographs are submitted immediately to MLS, and I shot a lot of photos the day I took the listing. I'd like to think it was my photos that sold that Land Park home so quickly, but it was most likely location and marketing, and not my marvelous Nikon that did the trick.
On another note, if you're wondering about whether a prickly pear cactus can survive in a Land Park cactus garden, check out my blooming cactus above. Part of my Land Park garden was converted last year into a cacti / succulent paradise. Remember, because watering times are reduced this year to 15 minutes, a drought-tolerant cactus garden might be attractive to you, too.
I've been experimenting with various varities of cactus, and know which types are likely to survive our winters in Land Park. Whether you'd like to talk about Land Park real estate or Land Park gardening, give me a ring. I always answer my cell: 916.233.6759.
Elizabeth Weintraub is an author, columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.
The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.
Photograph: Elizabeth Weintraub, Prickly Pear Cactus in Land Park, Sacramento
What is your opinion on men who wear "man skirts?" I ask because my husband and I spotted a fellow with a ponytail in row 2 at the 24th Street Theatre (part of the Sierra 2 in Curtis Park) who wore a short denim skirt last night to the Richard Thompson concert. It had plenty of pleats, too. It wasn't a kilt. He paired it with a black, form-fitting shell and walked past us barefoot in the aisle. I didn't notice skirt guy, but my husband did.
He has a right, noted my husband, to be comfortable and wear whatever he wants, but it's too bad that he has to be "that guy," which left me confused about what he was trying to say. The dear love of my life went on to explain. When my husband was fitted for his first suit, he had selected a double-breasted suit. The tailor told him no, if he wore a double breasted suit, he'd always be known as "that guy -- that guy in the double-breasted suit."
Doors opened at the 24th Street Theatre at 6:30. The place holds only 300 people. An usher handed out slips of paper on which we were instructed to write our song requests, one per person. I let my husband select my favorite Richard Thompson song because, quite frankly, standing out there in the hot sun after a full day of dealing with Sacramento short sales left my mind blank. The only song that I could think of off the top of head was his take on "Oops, I did it again."
Once seated, the air conditioning blasted me in the face. I froze during most of the concert, which is what I get for wearing a t-shirt and not bringing a sweater. Then, I felt somebody kicking my chair from behind. You know what it's like to be sitting on a airplane with a 3-year-old behind you who keeps kicking your chair back, right? First couple of kicks don't bother you, but by the time it gets to be repetitive, you may have to curb the desire to climb over the back of your chair and beat the kid to a bloody pulp with your barf bag.
I waited for the kicking to stop. But it didn't. So, I turned around and tapped the knee of the woman behind me. "Excuse me," I smiled, "But I believe you are absentmindedly kicking the back of my chair." She instantly pointed the finger to her husband and blamed him. Yup, he was kicking my chair all right. "Do you want me to continue?" he laughed. Hey, it's irritating. He stopped.
The first act was the Alternative String Band. First and second violin, a guy playing a viola (which he described as a "violin on steroids") and a cello. They were much better than I had anticipated, opening with Eleanor Rigby. Their set consisted of songs by Van Morrison, Led Zeppelin, The Turtles, U2, Annie Lennox and The Cream. Penny Lane, by the Beatles, was an exceptional number.
Richard Thompson appeared on stage about 8:30, wearing his trademark beret. He stood during the entire performance, plucking songs out of a basket that looked like the type of basket a snake charmer would use and playing requests. He opened with The Who's Substitute, played a bunch of requests in between, including 1952 Vincent Black Lightning, and then closed after 3 encores with a Jimi Hendrix tune: Hey Joe.
I was frozen by the time the show ended. I was so cold that I had actually considered ripping the socks off my husband's feet and wrapping them around my arms, that's how desperate I was for warmth. Here's a tip: if you go to the 24th Street Theatre in Curtis Park, bring a jacket or don't sit under the vents near the front.
Elizabeth Weintraub is an author, columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.
The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com. Sacramento Short Sale Agent, Elizabeth Weintraub, has the answers to your Sacramento short sale questions.
As delighted as I was over the announcement a while back that Fannie Mae short sales will pay full commissions on my Sacramento short sale listings, there seems to always be a twist in this business. It comes with the territory of being a Sacramento short sale agent.
Sacramento short sales are always on my mind. But this morning, I am thinking about my home state of Minnesota. Pondering whether Princess Kay of the Milky Way will get her head sculpted in butter for the Minnesota State Fair this year or whether Fair officials may opt to carve a hunk of butter into a likeness of Michael Jackson, like the organizers of the Iowa State Fair are planning.
I'm wondering how Senator Franken feels after his 8-month battle to take over Senator Coleman's seat. If victory tastes sweet or somewhat bitter after the long struggle. Will Franken make a difference as the 60th Democratic senator in Washington, giving Democrats the majority vote?
But reality snaps me back to the present. I've been working on one of my Sacramento short sales for 2 months when suddenly the lender announced it was outsourcing the file. The loan is held by Fannie Mae. It also is insured through PMI, which ordinarily isn't a problem. Typically, it just takes longer.
In this instance, a third-party vendor called yesterday to cheerfully announce that Fannie Mae will approve a full commission. In the same breath, she said her agreement with the short sale bank allows her to collect 1% of the sales price as a commission, on top of a $250 administration fee. This is like an REO lender hiring an asset manager to handle foreclosures. Both dip into the listing agent's commission.
The main difference is foreclosure agents handle a huge volume to absorb the hit while short sale agents typically do not.
It's bad enough that short sale banks try to cut agent commissions, but this development removes all incentive to treat Fannie Mae loans in a preferred status, plus it dings short sale agents' pockets even further. Pretty soon we Sacramento short sale agents may be paying the bank for the privilege of producing a short sale buyer.
Oh, wait, we already are.
Elizabeth Weintraub is an author, columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.
The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.
I don't know if I would go so far as to call myself the top short sale agent in Sacramento, but then I don't have to because the Sacramento Press said it for me. OK, I'm laughing a little over this because I never claimed that title in our interview but I must haven given that impression to the reporter.
I'm not one of those massively large companies that handle short sale intakes by the hundreds, hand-over-fist. I provide personal service to my short sale sellers and negotiate those short sales in-house.
But reporters call me almost every week as a source for their real estate articles. Probably because with my About.com gig, I'm plastered all over the internet. Even though I'm pretty much swamped with business right now, I still take time to answer questions from the media. After all, my husband is a career journalist (although, I should point out, unemployed since November), and I know how hard that job can be.
I turned down a Sacramento short sale listing yesterday. The Tahoe Park seller had been in negotiations with Bank of America for months, trying to do a loan modification. When she offered the bank a deed-in-lieu of foreclosure, Bank of America told her "it was the law" that she attempt for 3 months to do a short sale. Oh, please. Her home value fell from 2007 to present from the upper $200's to less than $50,000. Her original loan was held by Countrywide.
From my short sale experience, even if we found a buyer who was willing to wait the 4 to 8 months it may take to get this Bank of America short sale approved, this particular seller's circumstances are such that she may not qualify for a short sale.
I told the seller,"Look, I'm in the business of selling short sales in Sacramento; it's in my best interest (not necessarily yours) to accept your listing. If I thought this would work, I'd take it. So what does that tell you?" If handling Countrywide's old loans through Bank of America weren't such a nightmare and Countrywide didn't have such a lousy reputation among Sacramento short sale agents, this poor seller would stand a better chance. And I suggested she tell Bank of America that.
Elizabeth Weintraub is an author, columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.
The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.
The temperature in Sacramento hit 108 on June 28th, the hottest it's ever been on that day (my birthday) since Sacramento record-keeping began in 1900. Now, for those of you who have never had the pleasure of visiting Sacramento, a temperature of 108 might seem abnormally high, but it's really not as bad as it may sound. Yes, it's true we have 2 or 3 weeks during July / August when the temperatures soar into the 100s, but I'll trade that any day to avoid the 4 months or longer of winter that living in Minnesota offers.
When it's 90 degrees in Sacramento, it feels more like 75 would in Minnesota. That's because we Sacramentans enjoy a dry heat, and the absence of excess moisture in the air makes it seem a bit cooler than it actually is. Also, it doesn't generally stay muggy all night. When the Delta breezes kick in early evening, the temperatures drop.
You can find yourself peeling off clothing during the day but putting on a sweater at night. I love living in Sacramento.
What I don't love is attending home inspections at homes without central air conditioning, and I've got a couple of those coming up this week. OK, one of those homes does have central air, but I can't figure out how to turn it on. There doesn't seem to be a manual override to the program.
Some agents don't go with their buyers to the home inspection, but I do. I feel it is important to be available to ask questions about the home. Questions that my buyers may not think to ask. Plus, it gives me a few hours to thoroughly explain the closing process and prepare my buyers, especially my first-time home buyers, for home ownership.
I also use that time to conduct my own visual inspection of the home. I give buyers a complete agent inspection but I don't crawl under the house nor go up on the roof. That's what a home inspector does.
What surprises me sometimes is that I always tend to learn something new. There was a time in my life when I spent 10 years remodeling homes and doing all the work myself. It's what I call my buy, fix-up and sell decade. Far as I'm concerned, you can never gain too much knowledge about the structural integrity of homes and their systems.
At the hottest point of the day today, that's where I will be. At a home inspection, sitting under a ceiling fan, drinking water and making notes.
Elizabeth Weintraub is an author, columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.
The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.
One of the coolest birthday presents I have ever received was a wind chime made out of tiny, ceramic, hand-painted houses. Because my friends know that real estate is my passion.
I met a buyer last week who is the same age as me. Let's say her name is Patricia. She called to say she was looking at Lyon Real Estate's website and I was the first agent she called. Joking around I replied, "And lucky for you, I'll be the last agent you call."
Patricia had found a specific home that caught her eye and called the listing agent. He was rude, she said, and refused to show the home unless Patricia was prequalified through a lender. We talked about her search for a new home, the Sacramento neighborhood she wanted, why this particular home met her needs, and I referred her to a mortgage broker for loan preapproval.
The following day we met at the property, with preapproval in hand. Patricia is a bird lover, just like me, except I don't have birds tattooed on my legs. The home she wanted to buy was a flipper, bought by an investor either at auction or through a bulk REO purchase. I had researched this property for her because it's tough to pick a purchase price on flippers.
I ran the seller's name through the tax rolls and discovered this seller had purchased over the last year 37 foreclosure homes. Then, I printed out a report from MLS showing every home the listing agent had sold over the past 6 months for this seller, which were 9. Of the 9 sales, 7 were at 100% of list price. One sold at 102% and 9th at 97.8%. From those numbers I concluded that Patricia could most likely buy that home at 2% less than list price.
But to reach that price, I suggested that she offer 5% under list price. We were in a multiple-offer situation, too, because other buyers wanted that home as well. Sacramento home buyers don't always have to offer more than the listed sale price to win the home. Acceptance depends much on the seller's motivation and other factors.
The home had been recently updated, but it wasn't completely finished. There were minor things that still needed to be completed. Stuff like installing an exhaust fan, replacing a window sill, caulking around the tub, trimming out a window, reviving a dead lawn and attaching receptacle plate covers over outlets.
We sat on the living room floor under a ceiling fan to sign the offer. I showed Patricia the comparable sales, which were 15% more than the price I hoped she would get. I showed her the print-out of the seller's sold homes, too, so she could see the ratios of list prices to sold prices. But we also talked about a bunch of other stuff.
Patricia made the comment that I obviously was a lot younger than she. I laughed. She is 56. So am I. Until today, that is, because her birthday isn't until winter, which makes me older than Patricia.
She also said that she really did not like the listing agent because of his attitude. Hey, I pointed out, I told her the same thing, that she needed to be preapproved, but I must have conveyed that message in a different tone.
"This home needs so much work," she lamented, as we walked around the home for a final inspection. Patricia had not seen other homes in that price range, nor the horrible conditions of those homes. In comparison, this home was turnkey. She asked if it's unusual for a buyer to buy the first home a buyer sees.
Actually, it's not unusual at all. It's also not unusual to ask that question. I'd say about 1/3 of my Sacramento home buyers pick one home to see and that's the home they buy. Probably because buyers are smarter these days and do a lot of their homework upfront. They pour over MLS listings online and know exactly what they want. Sometimes, they don't give themselves enough credit.
Later that afternoon, I emailed and faxed Patricia's offer to the listing agent. I included a note that pointed out the benefits of accepting Patricia's offer and mentioned that my buyer would take care of all the little unfinished items. I reasoned that other buyers would demand the finish work. And it was so minor. It could mean the difference between irritating the seller or getting the offer accepted. I explained my rationale to Patricia. She agreed.
We received a multiple-counter offer the following day. A multiple-counter offer means the seller has countered more than one buyer. The counter offers can be completely different from one another and, even if each buyer accepts the counter terms, the seller still reserves the right to select which offer will be accepted.
Sure enough, the multiple-counter offer was at 2% under list price. I tried to temper Patricia's excitement because it ain't over until the fat lady sings (meaning the seller accepts it). There was no guarantee that she would get this home, and I didn't want her to be overly disappointed.
I am happy to report, however, that Patricia got the home! The listing agent called to say that Patricia's offer was accepted, and he emailed the accepted multiple-counter offer and contract to me. I called Patricia to share the good news, who is still talking about "all the work." But she's thrilled.
And that's my birthday present to myself today. To win a home for a deserving home buyer that's priced 15% under the comparable sales, in excellent condition and to beat out other buyers in a multiple-offer situation.
It's funny, after all my years of selling real estate, I still get excited for my buyers. That's probably why I am still in this business.
Elizabeth Weintraub is an author, columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent
The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.
Sacramento Short Sale Agent, Elizabeth Weintraub, has the answers to your Sacramento short sale questions. who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.
Photo: Elizabeth Weintraub, 35 years ago on June 28, 1974.
If you're thinking about buying a Sacramento short sale, find out if the lender is Countrywide before you pursue it. If you discover the original loan or loans are held by Countrywide, you may want to cross your forefingers, hiss and walk backwards. Countrywide, which is now owned by Bank of America, is a vampire.
The first inkling I had that something was amiss happened last week. Countrywide informed us that one of my Sacramento short sales was placed on hiatus because the borrower had applied for a loan modification. What the? That seller doesn't have a job. I called the seller. No, he had not applied for a loan modification, but he did call Countrywide in response to a letter he had received.
Yesterday, we discovered that Countrywide / Bank of America began mailing letters June 18 to a vast database of pending short sale sellers. If you haven't received your letter yet, it's probably on its way. That letter allegedly informs borrowers that they are eligible for a loan modification and, effective immediately, their Countrywide short sale is deactivated!
As if it's not bad enough that Countrywide emptied its queue of certain short sales due to a backlog in India a while back -- so most of my short sales required faxing paperwork 3 or 4 times before a new file was opened -- now Countrywide is deactivating its current inventory of short sales.
Countrywide just offered another Sacramento short sale seller a payment of $1,700 a month for three months if that seller would agree to a loan modification. This seller hasn't lived in the home for a year nor made a payment for 18 months, plus she owes $500,000. What happens after the three-month period? The letter doesn't say.
But I'm betting at that point the loan modification may be over. Countrywide has milked some of my other clients and then dropped their loan modification. It's the main reason these sellers began a search for a Sacramento short sale agent and found me. I've heard this story over and over.
You've got to ask yourself if the 3-month loan modification is a coincydink since it coincides with the 3-month foreclosure moratorium in California, which began June 15. And the only way lenders are exempt from the moratorium is if banks demonstrate they have a loan modification system in place. Sounds like a brilliant blood-sucking plan to me, if it's true: Stop the short sales. Pick up additional income. Foreclose on everybody else.
If you are a Sacramento short sale seller with a Countrywide loan who does not want a 3-month loan modification, you may wish to call Countrywide to say you want your file reactivated as a short sale. At this point, I don't know if Countrywide will start over from the beginning with a new file or simply pick up where it left off, but this deactivation situation is a nightmare. Oh, and go hang some garlic over your front door.
Elizabeth Weintraub is an author, columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you.
The Short Sale Savior, by Elizabeth Weintraub, available in bookstores everywhere and at Amazon.com.
Sacramento Short Sale Agent, Elizabeth Weintraub, has the answers to your Sacramento short sale questions.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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