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If you are just starting your real estate career you would do yourself a favor by joining the best networking group in town-Women's Council of REALTORS®! Besides meeting a lot of great friends you will learn how a network of successful REALTORS® can empower you to exercise your potential as an entrepreneur and industry leader. Check out what we're all about at www.wcr.org . Your local chapter will hold education sessions that have some of the top trainers giving you great information that will help you succeed in your business.
I went to the WCR Summit in Chicago a couple of weeks ago and I came back with some great social media advice I hope to apply soon. We had a great time and meet some awesome ladies.
Watch the video and see what fun we had!
Thought this post was worth sharing. If you need real estate help in Corona, CA or the Inland Empire of Rivierside county call me.
Via Nestor & Katerina Gasset Realtors® Wellington Florida Luxury Homes (International Properties and Investments, Inc.):
Most of the short sale banks have an arm transaction rule. Many of them require the agents, the title company officers, the buyer and the seller to execute an arms length transaction affidavit.
If you are asked to sign this affidavit and you end up NOT having an arms length transaction than that is called fraud.
To clear up the misinformation about arms lengths transactions, here goes-
- Not all short sales have to be arms lengths transactions.
- Each bank has their own rules about arms lengths transactions.
- It is not against the law to sell a short sale that is NOT an arms length transaction if there is full disclosure to all parties.
- Some buyer's lenders will not approve loans in NON arms length mortgage loan applications.
- It is against the law to commit fraud. Fraud is when you lie about the transaction.
We just got a bank who always uses the arms length transaction affidavit to waive that rule for our sellers!
We had to promise to not disclose the name of the bank, but I will say, it was a very big one.
You have to be very good at negotiating and have a very compelling reason for the transaction.
How did we get an approval and successful closing on a grandmother buying the house for her son and grandchildren who owned the house?
A local real estate agent called us. She knows we close our short sales. She does not know how to do short sale negotiations so she asked us to list her son's house. Then she told us that she wanted to buy the house for her son so that his family, her grandchildren, could remain in the home they knew and loved. She was going to be paying cash for the house. The house was only worth 350K when the mortgage owed was over 650K. She did not want to lie or do anything fraudulent and either did we.
Nestor told her that there was a shot, but there was a very big chance that the answer would be no, especially knowing the bank that was involved. She said she still wanted us to try.
What was the reason for this request?
Her son went from making $150K per year to just about $50K. Her son owed over 650K on the house and obviously would be in danger of losing his house to foreclosure one day. Her son and his wife had several children but one of their children is blind. The parents had set up the entire house for the comfort of their blind son. He knew where everything was, he knew the back yard and he knew his school. Moving into a rental would have been traumatic and stressful for the blind son. The grandparents do not want to pay off a huge balance that is NOT market value but she was interested in paying the market value on the home.
By being able to do this, the grandmother would be able to pay the home, the son and his family- her grandchildren would remain in their home with security and stability- then they could pay her back over time.
We started the short sale process and when it got to the negotiator he just flat out rejected the file because he said it was NOT an arms length transaction and therefore he could not go further with the file.
Nestor escalated the file to the executive officers. The first thing they said to us was if they do this for us, then others would also want to do this. But the reason for the approval request was for a blind child to be able to remain in his home. This was not a story of someone trying to flip the property or someone just wanting to game the system. Nestor through very good negotiation skills- moved the executives to approve this transaction.
Then the bank came back with a counter offer a little higher than what grandmother had in cash. When she went to get a loan- she was turned down by the loan officer because on the buying end- guess what- it was not an arm length transaction. This bank would NOT budge. Putting all our heads together we came up with refinancing her house with Jeff Belonger and then using the refi money to pay off the short sale acceptance offer. Thanks to Jeff Belonger who is on Active Rain for being able to pull this off.
We had a successful closing. The parents and the grandparents were SOOO happy. They new we were able to do the impossible. The children never knew what all was going on and the parents were so thankful that they did not need to traumatize them. Their lives go on in the same fashion as they had done before the sale.
We are very thankful that this agent entrusted this heart wrenching short sale to us. We are very thankful that the executives had compassion for this family and exhibited that with their exception to their rule. We are so thankful that this short sale is another happy ending for another Wellington Florida short sale family.
Foreclosure Is NOT An Option! Call Nestor and Katerina Gasset today at 561-753-0135 for a confidential interview regarding your options.
Don't Delay! Don't Wait Until The Sheriff Is Knocking On Your Door! Pick up your phone and call us to see if you can avoid foreclosure.
 
To view Welington Florida Homes For Sale Click here. We know Wellington Florida Real Estate and Wellington Florida Short Sales and will help you get your home Sold if you need to Sell your home and help you buy your home in Palm Beach County Florida: Call us today.
 
         
Copyright © By Katerina Gasset 2010 * All Rights Reserved* Arms Length Short Sales Transactions- These Are Exceptions To The Rules
I have just finished the week from hell. It wouldn't be so bad but it appears this is the new norm. I am writing more offers than in past year but many of my buyers are not getting their dream home because they are being bid out of the race by cash buyers. I feel so sorry for these lovely people because they too want the American dream of owning a home. These are people with good income and good credit but they just have 5 or 10% to put down on their first home. With all the short sales on the market I find it hard to believe that there are this many cash buyers. I am now wondering if the agents are just not accepting our offers because we are using an FHA loan. For many of my buyers this is their best option. These are strange times but I'll keep trying and the market will correct itself someday. Keep smiling!
Just received this data from Realist and it looks like we are heading in the right direction at last. Riverside County has been hit hard with foreclosures which has made our sale prices fall over the last few months. It will be good news to all that we are seeing increase sale price closer to our 2008 numbers. We might have a ways to go but we are smiling.
Sales Statistics for RIVERSIDE County CA
Realist's most recent sale date for this county is 02/12/2010
Single Family Residence
Time Period Number of Sales Median Sale Price
Dec 2009 3,704 $200,000
Dec 2008 3,940 $210,000
Nov 2009 3,176 $205,000
Nov 2008 3,318 $220,000
2009 YTD 42,818 $193,000
2008 39,955 $260,000
Condominium
Time Period Number of Sales Median Sale Price
Dec 2009 378 $181,000
Dec 2008 288 $180,000
Nov 2009 344 $180,000
Nov 2008 217 $185,000
2009 YTD 4,037 $164,500
2008 3,710 $240,000
Mortgage Rates
30-Year Fixed-Rate Mortgage Dips Below 5 Percent Again
McLean, VA Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.97 percent with an average 0.7 point for the week ending February 11, 2010, down from last week when it averaged 5.01 percent. Last year at this time, the 30-year FRM averaged 5.16 percent.
The 15-year FRM this week averaged 4.34 percent with an average 0.6 point, down from last week when it averaged 4.40 percent. A year ago at this time, the 15-year FRM averaged 4.81 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.19 percent this week, with an average 0.6 point, down from last week when it averaged 4.27 percent. A year ago, the 5-year ARM averaged 5.23 percent.
The 1-year Treasury-indexed ARM averaged 4.33 percent this week with an average 0.6 point, up from last week when it averaged 4.22 percent. At this time last year, the 1-year ARM averaged 4.94 percent.
It appears the banks are finally realizing that it is better to help in a short sale process before the homeowner is behind in mortgage payments. Many banks are now telling borrowers to call them before they fall behind and try to work out a short sale process that is easier on them and the bank. This is truly a step in the right direction. Until now many banks wouldn't even talk to a borrow until they were 2 to 3 months behind in their mortgage payments. Even FHA is stepping up effort to help homeowners before they lose their home. According to the HUD website "Homeowners with FHA-insured mortgage loans who are experiencing financial hardship are now eligible for loss mitigation assistance before they fall behind on their mortgage payments. Previously, these homeowners were not eligible for such assistance until after they had missed payments. The Helping Families Save Their Home Act of 2009 signed into law by President Obama expanded FHA's authority to use its loss mitigation tools to assist FHA borrowers avoid foreclosure to include those facing "imminent default" as defined by the Secretary. FHA today issued guidance to FHA-approved loan servicers on how to assist these FHA borrowers."
MORE HOUSING NEWS:
The pending home sales index increased to 96.6% in December from a level of 95.6% in November. The index plunged in November in conjunction with the original expiration of the homebuyer tax credit and has not yet rebounded significantly. Now that the tax credit has been extended and expanded, the pending home sales index and thus existing home sales are expected to increase over the next several months.
The MBA mortgage applications index surged 21.0% to 620.7% for the week ending January 29. The purchase index increased 10.3% on the week as the refinance index rose 26.3%. Refinancing activity accounted for slightly less than 70% of new mortgage application activity. Despite this week's gains, the level of mortgage activity remains quite low indicating stagnation in the housing recovery.
 It has been a couple a weeks since we read of the disaster that occurred in Haiti. We all rushed to help but now that the memory is fading we have other activities that take up our days. That is why I am reminding us all that the people of Haiti need our attention daily. Please ask yourself and your customers to contribute to the cause. We can be proud of our fellow REALTORS and NAR for the help they have given but lets keep our eye on the goal. The REALTORS® Relief Foundation of the National Association of REALTORS® has contributed $550,000 to help the victims of the Haiti earthquake but it is calling on the over million members to keep the dream alive.
On January 22, 2010 we read that "a $500,000 donation will go to the Clinton Bush Haiti Fund, headed up by former U.S. Presidents Bill Clinton and George W. Bush, to provide immediate relief and long-term support to survivors. Another $50,000 has also been donated to The Harvest of Haiti, a humanitarian outreach program founded by the 2007 winner of REALTOR® magazine's Good Neighbor Award. The program supports Haitian orphans, delivers clean water and provides medical care for more than 3,500 Haitian people each year.
The Foundation is also calling on REALTORS® nationwide to help Haitian victims through the REALTORS® Relief Fund. NAR members can donate using the Foundation's online contribution form."
Please keep this campaign in the minds of everyone you contact. God Bless!
Have you ever visited a great website or blog and wish you could be updated when a new entry is made.
The easiest way to accomplish this task is by using RSS feed. You will see a icon like this which allows you to subscribe to recieve this sites feed.  Just click on the symbol and follow the directions.
Really Simple Syndication (RSS) is a way for writers to make news, blogs, audio, video, and other content available to subscribers at no charge. RSS provides a convenient way to receive news updates and articles from the many Web site automatically.
An RSS "document" (which is called a feed, Web feed or channel) includes at least a headline and a summary. RSS feeds can be read using software called an "RSS reader" or "aggregator", which can either be Web based or desktop based. The RSS reader checks the your subscribed feeds regularly for new posts, downloads any new updates, and provides an interface to read the feed. The user subscribes to a feed by entering into the reader the feed's URI or by clicking an RSS icon in a web browser that initiates the subscription process.
The best part of signing up to great RSS feeds is that once you found something of interest you can share it to friends or websites you might have. Try it today! If you need a reader try signing up for googles free reader at www.google.com/reader or explore another format on your iTune account.
The government announced new Short Sales guidelines early in November. After talking to many of my fellow agents it appears that very little has changed in the minds of the borrowers. They still can't talk to their bank, they get different answers to the same question depending on who they are speaking to. Many homeowners have upon learning that their mortgage does not qualify because they took out the loan over a year ago shake their heads and say " I'm upside down and need help just like the fellow who took out his loan a few months later".
It seems funny to me that we have home values that have fallen to 2005 values but only those homes sold in 2009 can do a short sale! What is the logic in this? If you haven't read the new guidelines here they are:
"To qualify under these new guidelines:
- The property must be the home owner's principal residence.
- The home owner must be delinquent on the mortgage or close to defaulting.
- The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
- The borrowers' total monthly mortgage payment must exceed 31 percent of their before-tax income.
Under the plan, borrowers will receive $1,500 from the government for selling homes for less than the amount of their mortgages. Mortgage-servicing companies will get $1,000 for each completed short sale. Second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgage can collect up to $1,000 from the government for allowing the payments.
Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines."
Source: Associated Press, J.W. Elphinstone (11/01/2009) and The Wall Street Journal, Ruth Simon (11/01/2009)
Mortgage Rates
30-Year Rates Match All Time Low This Week
15-Year FRM Drops to Set Another New Low in Freddie Mac Survey History
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.78 percent with an average 0.7 point for the week ending November 25, 2009, down from last week when it averaged 4.83 percent. Last year at this time, the 30-year FRM averaged 5.97 percent. The 30-year has not been this low since the week ending April 30, 2009, when it averaged 4.78 percent.
The 15-year FRM this week averaged 4.29 percent with an average 0.6 point, down from last week when it averaged 4.32 percent. A year ago at this time, the 15-year FRM averaged 5.74 percent. The 15-year FRM has never been this low since Freddie Mac started tracking it in 1991.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.18 percent this week, with an average 0.6 point, down from last week when it averaged 4.25 percent. A year ago, the 5-year ARM averaged 5.86 percent. The 5-year ARM has never been this low since Freddie Mac started tracking it in 2005.
The 1-year Treasury-indexed ARM averaged 4.35 percent this week with an average 0.7 point, unchanged from last week when it averaged 4.35 percent. At this time last year, the 1-year ARM averaged 5.18 percent. The 1-year ARM has not been this low since the week ending July 7, 2005, when it averaged 4.33 percent.
**As seen in the Washington REALTORS Friday Facts
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Sharon Koziel
Corona,
CA
More about me…
IBC Real Estate-Corona
Address: 1655 E. Sixth St, Suite A-1, Corona, CA, 92879
Office Phone: (800) 394-3444
Cell Phone: (951) 751-6011
Email Me
Living on a golf course or in a golf community might be your ideal home setting. Let's find that perfect home!
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