Glenn's Blog

City of Cerritos considering "Pre-Sale Inspection" on home sales....

Glenn Gaspar (First American Team Realty) — Thu, 27 Aug 2009 00:43:16 -0500

On Thursday, August 27th, 2009, the city council for Cerritos will review and consider the possibility of a "Pre-Sale Inspection" on any home sold with in the city.

A "Pre-Sale Inspection" means that it will require the seller of a home in Cerritos to have the property inspected by a city building inspector, and this is to be done prior to entering into an agreement to sell the home. The city council states that they wish to have this inspection performed in order to "protect the new owner(s) against undisclosed restrictions on the property and illegal construction additions or alterations."

In reality what the city is doing is creating a method in order to generate revenues for itself. Plain and simple.

In the state of California when a Buyer makes an offer for a residential property. The purchase contract will inform the Buyer that it is recommended that they perform a home inspection on the property they wish to purchase. Reason: to discover the same concerns the city mentions.

Further more the "Statewide Buyer and Seller Advisory," which is an additional form when making an offer, will share with the Buyer the 32 total inspections which they could/should consider performing if needed for the property they are considering.

This meeting will be held at 7PM at City Hall (18125 Bloomfield Ave. Cerritos, CA) so should you wish to voice your opion on this matter...Please do. Speak to sellers of homes in Carson or South Gate regarding this inspection. They will share with you what a typical city department can do or not do when they are needed.

Foreclosure Prevention Workshops for struggeling homeowners

Glenn Gaspar (First American Team Realty) — Thu, 20 Aug 2009 10:41:26 -0500

Home owners seeking help in preventing their homes from being foreclosed upon should be aware that many community based organizations are sponsoring, with in the states, workshops to help struggling homeowners seek advice.

This site will provide you with the dates, times and locations where one can attend a workshop. The site is updated weekly with new dates and times.

Just click here for a Foreclosure Prevention Workshop Schedule--Good luck to all!

Short Sales Status: To keep "Active" or not?

Glenn Gaspar (First American Team Realty) — Mon, 13 Jul 2009 15:07:08 -0500

Time after time I have come across Short Sale Listings which read as "Active" though when calling into the listing agent I discover that the seller has accepted an offer, but the listing agent still has the property as "Active." From my perspective this is incorrect and a major change or educational email needs to be sent out to everyone regarding this matter.

Dear listing agent: Once your Seller has accepted an offer, whether a Short Sale or not, you have 48 hours to change the status of your listing from "Active" to "Pending or Backup Offer." Even though the bank still has to agree to the terms of the Short Sale offer, you have an accepted offer agreed to by two parties one being the seller and the other a buyer.

From my conversations with our local MLS department they have informed me that a listing agent who has an accepted offer must make a change to identify the "true" status of the property. They have informed me that if the listing agent wishes to continue generating offers for their Short Sale listing, they then should change the status to a "Backup Offer."

This really does makes sense to me for it will present a true picture as to the status of the property, while informing interested agents of the possibility of their offer being considered.

City of Buena Park (CA) First Time Homebuyer Program.....

Glenn Gaspar (First American Team Realty) — Thu, 02 Jul 2009 18:23:35 -0500

The City of Buena Park is presently (as of July 2, 2009) accepting applications from non-resident and individuals not working within the city of Buena Park for the First Time Homebuyer Program.

The program offers assistance to first time buyers (one who has not owned a home over the past three years) as a deferred second mortgage, simple interest 30 year loan. The maximum amount for this loan is $100,000 which can be used to purchase a single family home, condominium or townhome in the city of Buena Park.

Between the dates of May 1 and July 1 applications were being accepted from Buena Park residents and individuals who do work within the city.

To obtain and review the application for this program just click here: <A HREF="http://www.buenapark.com/Modules/ShowDocument.aspx?documentid=1341"> Buena Park Homebuyer Program Application </A>. Time is of the essence!

City of Bellflower, CA Home Buyer Assistance Program.....

Glenn Gaspar (First American Team Realty) — Fri, 26 Jun 2009 13:18:46 -0500

The City of Bellflower which is located in the county of Los Angeles has available a First Time Buyer Program at this time which is known as the "Home Buyer's Assistance Program" (HAP) where the buyer can receive up to $40,000.

The goal of the program is to help first time buyers with obtaining funds, as a second deferred loan, for their down payment, non-recurring closing cost and for other cost associated in the purchase of their home.

In order for a buyer to obtain funds for this program they will need to qualify based on the guidelines. The one major challenge which I see here, and why there is still money available in this program is that the buyer will have to come in with at least a 20% down payment. But when you take into consideration that this is a second position simple interest loan, with no monthly payments until the property is sold, refinanced or change of title occurs....Not bad. Now food for thought: After the tenth year the interest on this loan is forgiven, and after 30 years of ownership the principle on the second is forgiven.

For more information on this program I am providing you a link here to the city's web site: City of Bellflower HAP site Good Luck!

Update on the Long Beach, CA "Second Mortgage Assistance Program"....

Glenn Gaspar (First American Team Realty) — Thu, 25 Jun 2009 18:34:01 -0500

Yes it was good while it lasted.

What I am referring to is the First Time Buyer Program which the city of Long Beach, CA had available for buyers titled "Second Mortgage Assistance Program."

How this program worked was that the city of Long Beach would provide a deferred payment second mortgage loan up to $275,000 to qualified buyers purchasing a single family home, townhome or condo within the city's target redevelopment areas.

Now I was informed by a representative of The Long Beach Housing Development Company that they were expecting more funds later this year around the month of October. Plus that they were seeking other sources for additional funds to obtain for this program.

To obtain additional details about this program and/or to discover when the new funds arrive just click here The Long Beach Housing Development Company.

Long Beach "Plaza Area" Home Data Update.....

Glenn Gaspar (First American Team Realty) — Wed, 24 Jun 2009 13:26:04 -0500

For those of you not familiar with the Plaza Area of Long Beach, California. It is located on the east side of this very large city with two zip codes that cover the Plaza Area: 90808 and 90815. For those who like visuals the street parameters are south of Carson Street/east of Woodruff Avenue/north of the 405 Fwy/west of the 605 Fwy.

As of today, June 24th, 2009 there are 17 homes for sale ranging in price from $370,000 to $699,000. There is one particular home listed for $890,000 which would bring our listing total to 19 for the area.

The demand for this neighborhood has been consistent with the average day on market for a listiingrunning right around 40 days. Year to date for the month of May there was a 12.3% decline in price.

The chart below displays a 10 year track for home values for the 90815 zip code:

For zip code 90808: (The price variance between the two zip codes is right around $12,000):

Buyer Beware of Prices on active listings!

Glenn Gaspar (First American Team Realty) — Fri, 19 Jun 2009 02:53:44 -0500

Presently there is a trend out there which I as a professional REALTOR acknowledge as a hurdle. Though the consumer sees it differently, and buyers need to be aware of this miss-leading advertisement. Actually this trend which I am writing about adds more work to my day for I wish to protect all of my clients' emotional stability.

What I am writing about here is the trend of listing agents placing homes on the market for sale at $20,000, $30,000 or even $60,000 below market value. And I am not speaking about REO properties but actually making reference to short sale properties here in the Orange and Los Angeles County area.

What are these agents thinking?

I cannot tell you how often I will receive a call, text message or e-mail from one of my buyers asking about a home they had just found on the internet which they would like to see. I then cross reference it only to discover that it's priced under market, a short sale and that no recent sales have come close to the listed price.

As most of us know in a short sale transaction we not only need the approval of the home owner, but also the approval of the first position lien holder and in some cases a second position lien holder. Now let's think about this for a moment. Do these agents really believe that the bank who is already being shorted on the loan will take an even greater loss to sell the property? NO!

What makes this trend even funnier is that at times in the "Private Remarks" section of the MLS, the same listing agent will state that he/she has an approval for a short sale. But as you continue to read the remarks this dollar figure they are sharing with the reader is higher then the price the home is listed for. Um, did I miss something here?

From my perspective these agents have to take Advertising 101 or maybe a Basic Math course. Oh, actually they should consider reading up on our Code of Ethics for I am sure they are in violation of at least two articles from our Codes of Ethics.

City of Anaheim, Calif. $125,000 Down Payment Assistance Program.

Glenn Gaspar (First American Team Realty) — Wed, 10 Jun 2009 14:41:21 -0500

While attending one of my monthly meetings with fellow real estate agents yesterday I was informed of this great program for First Time Home Buyers who are seeking a home in the city of Anaheim, California.

After reviewing this information I discovered that one of my buyer's can qualify based on the criteria the city has established for this program.

So to keep it simple and direct I have decided to allow the links to the program to do all the talking.

For information on this programs information and guide lines just click on this link Anaheim (CA) $125,000 Down Payment Assistance Program.

For information on this programs Eligible Census Tracts just click on this link Maps.

Is the Multiple Listing Service becoming an eBay?

Glenn Gaspar (First American Team Realty) — Sat, 29 Sep 2007 13:08:12 -0500

Seriously here folks: Agents, why do you not just list your "Short Sale" listing on eBay so not to take away the integrity of the MLS(Multiple Listing Service)?

The agents I am referring to are those who have listings which are actual short sales, but these agents are listing the property between $50,000 to $100,000 under market value. PLEASE, Do not do this! Do you really think that the bank, knowing where the bottom line is, is going to lose even more money on their note?

One problem I am encountering with this technique is that my buyers are calling me to write up an offer on this wonderfully discounted property. Yet days later we receive the counter offer from the owner or bank with a market value price.

Now, do you wonder why the public has issues with the way agents represent or misrepresent their product and self? Buyers at eBay understand what is happening there. Buyers on the Internet using any search engine to find a home are not aware of what you are doing.

I fully understand that marketing your property is key to your success, and that new concepts are needed to draw more attention to your listing with so many homes for sale at this time. But! Are you really doing the general public a favor? At least your car dealerships inform "The Public" that they have one vehicle at this price and the VIN number is ________ .

Are some of our fellow agents violating our Code of Ethics?

Glenn Gaspar (First American Team Realty) — Sun, 16 Sep 2007 14:10:20 -0500

Daily real estate agents are seeking to discover new techniques in advertising their business which will hopefully provide them the advantage in today's tough market. The question here to consider is...Are some agents possibly violating the Code of Ethics by promoting their listing in a specific manner?

Case and point, here in the state of California we are experiencing many Short Sales, and what I am seeing right now is this: Agents are inserting their listing(s) into the MLS, Multiple Listing Service, at a much lower price then what the Seller, which in this case is actually the lender, will accept in the hopes to obtain greater interest in their listing.

Just this week I came across a listing where the agent had listed the property for $399,000, but in the private remarks section of the MLS the agent mentions that the lender, with whom they had already spoken to, would only consider a minimum sale price of $450,000. On another listing, the agent advertised their listing by as much as $80,000 less then what the lender would accept on a short sale. FYI, the "Private Remarks" section of our MLS is only visible to the real estate agents and not visible to the general public.

So is this agent potentially violating Article 12 of the Code of Ethics by misrepresenting the price in his/her advertisement? My concern here is that these agents are already aware of the actual dollar figure which the lender will only accept. So anything less then what they the lender would consider is misrepresenting "known factual information" and misrepresenting the listing in its advertised form to the public.

Do I have a case here? Are agents stepping out of line by promoting in this manner?

>>>>>> Update (09/17/2007)

Thank you all for your views and shared frustration! Just about all of us believe in the same manner which in turn sheds light upon a strong future for our business/industry.

I was informed today from the MLS Dept. that a non-allowed remark was also found in the Private Remarks section for this listing which I had missed. What the agent had writtnen was: "Seller's choice of services." In our Association this is a no no since services are suppose to be negotiated during the offer process, and agreed to between the buyer and the seller. As to the Ethic's matter, speaking to that department today.

>>>>> Update (09/24/2007)

Instead of filing a report, we spoke directly to the agent regarding this matter. The person was unaware as to what they had done and was very apologetic about the mistake. Their tone of voice and mannerism shared with us they were upset and willing to correct the problem. I took this road due to the fact this agent was very new to our business and I wanted to take the teaching road instead of the paddle method. A very good ending to this story.

Home Buyers, Stay Away from Web Sites Which Charge You for Foreclosure Lists

Glenn Gaspar (First American Team Realty) — Mon, 27 Aug 2007 02:05:38 -0500

With all of the media hype surrounding the number of homes going into Foreclosure, many home buyers search the Internet for web sites which would provide them lists of foreclosed properties.

Unfortunately the majority of these buyers are unaware that this information is FREE!

Many of the web sites buyers find will tease you with a "Free Trial Period." The catch here is that you will be asked to provide them with a credit card. Then at the end of the trial period, if you have not cancelled your temporary subscription, you will begin to be charged their monthly service fee up until the time you cancel their service.

Then there are those web sites which provide you with data on homes which are in "Notice of Default," and these homes are not actual REO's or Foreclosures as of yet. This type of site in my eyes performs the old bait and switch tactic which is not fair to the average consumer.

So how can you the consumer obtain this information for FREE? Your best avenue is to contact your local REALTOR or lender. These professionals have access to just about all foreclosures which are being sold by banks such as Countrywide, BofA, Fannie Mae, HUD and so on.

Now, so that I can avoid being called a teaser myself, listed below are a few links for you to visit which will display properties which are foreclosures and the bank is selling. Just click on the links below and you will be on your way to visit two free foreclosure sites:

FannieMae: http://www.mortgagecontent.net/reoSearchApplication/fanniemae/reoSearch.jsp

Countrywide: http://www.countrywide.com/purchase/f_reo.asp

The information you will obtain is free though don't settle for just any real estate agent. Remember to always interview the agent(s) you speak with so that you can obtain a true professional to represent you.

Good luck!

Has this lender not learned anything?

Glenn Gaspar (First American Team Realty) — Sat, 25 Aug 2007 02:41:01 -0500

Am I missing something here or what?

On Thursday night I finally had the chance to open an e-mail which had been sent to me from one of our mortgage brokers who does business with our in house loan department.

Now this is what it said:

"Old Concept might bring relief to market! How would you like to offer a 4.875% rate to your customer? How would you like to qualify your borrower at 4.875%?

This program is available and has been for many years it's called a temporary rate buy down. For those of you that are newer to the industry, this is achieved by taking a fixed rate loan and paying upfront for a 1%, 2% or 3% reduction in rate from the note rate. You can buy the rate down for as many as three years and the best thing is you can qualify your borrower on the bought down rate."

Did I read this correctly? You can qualify your borrower on the bought down rate?

What? Was this not part of the problem which has led our market to the meltdown it is facing? Have we not learned from our mistakes? Are we that desperate that we are willing to get divorced again from our clients?

What are you thoughts regarding the message they, the mortgage broker, are sending out? Am I just too old fashion, or do I not want to touch the hot iron again for it had burned me the first time?

How do you answer the following Buyer question?

Glenn Gaspar (First American Team Realty) — Tue, 21 Aug 2007 02:57:07 -0500

"Should I buy now or should I wait?"

Everyday real estate agents are asked questions regarding buying and selling homes, and often we are also asked questions about home loan programs. But due to the market climate which we are in at this time, what is a "Proper" response to the buyer's question "Should I buy now or should I wait?"

I myself respond in this manner: If you can see yourself living in this home for at least 5 to 7 years, it will be safe for you to buy today.

I then continue to share with the buyer more reasoning for my answer almost sounding like Suzie Orman, but I wish not to bore you here with to many paragraphs with details.

My goal with my clients has always been to put aside the commission aspect of the deal, and provide straight forward honest answers so that I can keep them for life, and by gosh it works! Even though I have lost money over the years because of this belief system, I have gained many loyal clients over the years.

So, how do you personally respond to this question?

How do you answer the following Buyer question?

Glenn Gaspar (First American Team Realty) — Tue, 21 Aug 2007 02:56:56 -0500

"Should I buy now or should I wait?"

I myself respond in this manner: If you can see yourself living in this home for at least 5 to 7 years, it will be safe for you to buy today.

I then continue to share with the buyer more reasoning for my answer almost sounding like Suzie Orman, but I wish not to bore you here with to many paragraphs with details.

So, how do you personally respond to this question?

100% Financing is still available for the First Time Home Buyer!

Glenn Gaspar (First American Team Realty) — Wed, 01 Aug 2007 03:22:34 -0500

With all of the negative media hype about a bad real estate market, one wonders if there is still life within the minds and hearts of the first time buyer.

Well I am here to share with you that there should be and one should get excited...With caution of course!

In the State of California we have what is known as CalHFA, California Housing Finance Agency, which provides loan programs through approved lenders to First Time Home Buyers who are seeking favorable interest rates and options. Now the definition of a first time buyer for CalHFA is: "a person(s) who has not had ownership in their primary residence during the previous three years."

Now let me share with you some of the programs they offer:

Interest only Plus: 100% Financing! Interest only payments for the first five years, then your remaining 30 years are fully amortized at a fixed rate so you have a 35 year term for this loan.
30 Year Fixed: 100% Financing! Fixed interest rate for the entire life of the loan.
40 Year Fixed: 100% Financing! Fixed interest rate for the entire life of the loan.
And much more!

Did you know that all CalHFA subordinate loan programs, not including CalHFA-CHAP, qualify to be used with the mentioned above programs. Examples of these are the Extra Credit Teacher Program (ECTP), Homeownership In Revitalization Areas Program (HIRAP), Affordable Housing Partnership Program (AHPP) and more.

By the way CalHFA does partner with local government so that you as a buyer can utilize funds from cities which provide financial assistance for closing cost and /or down payment assistance (seconds/silent seconds).

In reality there is so much more to mention about CalHFA and how the nuts and bolts all work, but I wish not to bore you with to many details. My goal here is to inform you on what the main stream media is not telling you!

Lack of Flexibility!

Glenn Gaspar (First American Team Realty) — Tue, 24 Jul 2007 18:27:16 -0500

I was saddened this past week by a lender who displayed a lack of flexibility regarding the delay of a Trustee Sale on a listing I had. The lender's representative came across as very mechanical and only existing in a black and white environment. On the other hand I was taking into consideration three other parties who were involved...The Seller, Buyer, and Secondary lender.

When speaking with this lending institution I had in my hands:

Fully executed CAR Purchase Contract
Signed escrow instructions
Pre Lim Title Report
Verification of FICO Scores (above 720)
A desk top underwriting pre-approval
HUD 1 showing this lender to be paid in full
Buyer able to place 10% down

After providing all of these documents she still stated that one other item was needed in order for her to delay the Trustee Sale for us. The other item she was speaking about was a formal Approval letter from the buyer's lender which would also state that the contingencies of Title and Appraisal be removed.

Everything listed above was in her possession by mid Friday afternoon with the exception of the appraisal. Now food for thought...The Trustee Sale was scheduled for the following Tuesday at 1 PM.

At times I believe that the Buyers agent may have dropped the ball, and let's say that she did, but my question here is why could the lender not delay the sale just for another ten (10) days? Here in California a delayed Trustee Sale can be rescheduled to occur in ten (10) days instead of the customary 21 day period for an initial Trustee Sale.

End result: My Sellers lost out on selling their home and now will have a black mark on their credit history for many years to come. A solid Buyer lost out on a home they fell in love with. The secondary lender was wiped out at the Trustee Sale where if the property were to have been sold to the Buyers, this second place lender would have received at least a 70% payout.

All of this could or should have been avoided with the stroke of a pen and one phone call, but it did not because of a "Lack of Flexibility."

Final note here: What did happen to the property at the Trustee Sale? A real estate agent purchased the home for $110,000 under market value. Can we say "Ouch!" three times or do we say it 110,000 times?