The Sacramento Short Sale Blog by Elizabeth Weintraub

Some Short Sale Agents Vote PNC the Worst Short Sale Bank

January 20th, 2012 by Elizabeth Weintraub #00697006, Broker Associate, Lyon Real Estate | No Comments | Filed in As Goes California…, First-Time Home Buyers, Takin’ It In The Short Sales, What You Need To Know About Buying and Selling Real Estate

It seems like every time that I list a PNC short sale in Sacramento, buyer’s agents don’t want to deal with it. They tell me to my face they won’t work on a PNC short sale. That’s a little bit disturbing. Because PNC approves short sales. Not all of them, and maybe not even 50% of them, but they do often get approved. Especially non-recourse PNC short sales in California.

See, with a non-recourse short sale, the bank, in second position, gets nothing in the event of foreclosure. Maybe the bank gets some money from the government for a foreclosure but not from the trustee or the first lender. I know that lawyers are concerned it’s possible the FDIC is funding foreclosures for banks with taxpayer monies, but I have no idea if that’s true. I do know that a PSA often make it very profitable for banks to go through foreclosure because PSAs make money either way.

Lately, though, I’ve been getting a very strange message from PNC on non-recourse seconds. I get the same email over and over. This is not a one-time occurrence. PNC wants to know if the sellers, the buyers or the agents would give them more money. PNC says it is not “rejecting” the short sale, even though it is. So, that tells me there are lawyers advising PNC to be careful with the language it uses so the government won’t see that PNC is, indeed, rejecting short sales.

Because agents are broke, buyer’s lenders won’t let buyers contribute and, because of SB 458, it’s against the law for the seller to contribute. Sellers with purchase money loans are not giving PNC any money and PNC knows it. There is always a very small fragmented chance that the first lender might cough up a little bit more than $6,000 or 6%, but it’s not really very likely.

So, what is PNC’s angle? Why is PNC rejecting these non-recourse short sales? Who is paying them?

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Certified HAFA Specialist

My Sacramento Real Estate Listings

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 the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.

The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.

Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.

The views expressed herein are Weintraub’s personal views and do not reflect the views of Lyon Real Estate.

Tags: foreclosure, pnc bank, pnc short sale, psa, purchase money loans, sacramento short sale agent, sb 458, worst short sale bank

Tips for Handling that Out-of-Whack Short Sale BPO

January 16th, 2012 by Elizabeth Weintraub #00697006, Broker Associate, Lyon Real Estate | No Comments | Filed in As Goes California…, Takin’ It In The Short Sales, What You Need To Know About Buying and Selling Real Estate

Whenever I list a short sale in the Sacramento area, I run the comparable sales two different ways. And I often get two different answers. When that happens, I know I might have a problem with the BPO. That’s because it’s tough to say which way of running the comps a BPO agent might use. I can tell you there is not enough money in doing a BPO for a BPO agent to run the comps more than one way.

So, the question is which do they use? You can’t second-guess that. But if I were to guess, I’d say they take the path of least resistance. The easiest way to run the comps is to go to Realist and click on the button that says run the comps. You don’t even have to delete homes if you’re too lazy to remove the ones that don’t belong in the neighborhood. You can just leave them all there and click “generate comps report.”

The program will automatically pull the last 20 sales and average the per-square-foot cost based on the subject property. It’s not the most ideal way to look at comparable sales, but it is one method. It’s also fast. If you’re lucky, you’ll find homes on the same street and maybe even with the same square footage. You can hit pay dirt that way. But if you’re not lucky, this down-and-dirty way to analyze the comps is crap. Or, a BPO agent can search within a 1/4- to 1/2-mile radius of the property, but that method can overlap neighborhoods and boundary lines.

A better way, of course, is to run a map search of the neighborhood and narrow the results. Look only at homes of similar size, condition and configuration. That type of analyzation will tell you how much a buyer is likely to pay. But it is unlikely to be the way the BPO agent will pull the comps. And therein lies the problem. So, what do you do when the BPO is out of whack?

A Sacramento short sale agent can disagree with the BPO agent and submit her own comps, along with an explanation. Sometimes, that’s enough to get the bank to agree to consider the buyer’s offer.

A buyer can increase her price slightly but not all the way to the amount the bank demands. Just so you know, banks don’t always ask for the amount of the BPO. Sometimes, banks ask for more in the event of negotiation, and sometimes they ask for more just for the hell of it, so they can they show the investor they tried.

A buyer can pay for her own appraisal and submit it to the short sale bank. She might end up paying for two appraisals because her own bank will probably use a different appraiser.

Or, a buyer can agree to the bank’s demands, wait for the short sale approval letter, and then take her chances with her own bank’s appraiser. If that bank appraises the home for less, then the buyer can petition the short sale bank for a price reduction. The bank will agree because if it disagrees, and the home is sold to somebody else, that next buyer will probably get the same appraisal.

If you choose the last option to fight that over-inflated BPO, here’s a tip: Study the pending sales. Those pending sales will become your comps. And remember, the old comps will go away if they sold more than 3 months ago. If you are near the end of the month when this happens, that time can be in your favor.

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Certified HAFA Specialist

My Sacramento Real Estate Listings

The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.

The views expressed herein are Weintraub’s personal views and do not reflect the views of Lyon Real Estate.

Tags: bpo, comparable sales, sacramento short sale agent, sacramento short sales, short sale, too high bpo

This is the Real Reason that Sacramento Short Sales Are on the Market for So Long

January 13th, 2012 by Elizabeth Weintraub #00697006, Broker Associate, Lyon Real Estate | No Comments | Filed in As Goes California…, First-Time Home Buyers, Takin’ It In The Short Sales, What You Need To Know About Buying and Selling Real Estate

I woke up late this morning, thinking about what I will say tomorrow when I tape a TV show. It’s a community outreach program on cable. The producer wants me to talk about short sales. I told him I will lay it on the line. I might say things that go against the norm. There is no sugar coating from me. I’m very opinionated. I’d also like to believe I am informed, especially since I closed almost 100 deals last year.

As a Sacramento short sale agent, I see people make mistakes over and over. Such as loan modifications. With very few exceptions, a loan modification is just about the dumbest idea ever. It makes little sense. It prevents homeowners from looking beyond the end of their nose. They get a lower payment, in most cases (sometimes it is higher), but they still owe all of that money!

In a short sale, they could sell and buy another home in 2 years at half the mortgage. An identical home. Half the mortgage. Because the market is not going up, and I don’t care what you read. The market is depressed, it’s declining, and it’s only gonna get worse.

People think the problem with short sales is the bank. Banks are slower to approve a short sale than you might like, but the fact is they approve short sales. Average short sale approval time is 2 to 4 months, providing a complete package is submitted to the lender upon inception. It’s not the banks who cause all the delays.

It’s the buyers.

It’s the buyers who continue to look at other homes while under contract to buy a short sale.

It’s the buyers who change their financial situation while under contract to buy a short sale.

It’s the buyers who quite possibly were not fully qualified in the first place to buy a short sale or any property.

It’s the buyers who refuse to understand that a short sale is sold AS IS with no repairs.

It’s the buyers who think they can renegotiate with a short sale bank after short sale approval.

They cancel. The home changes status from active short contingent to back on the market. Other buyers then stigmatize the home and believe something is wrong with it because it’s now been on the market for so long.

So, if buyer’s agents hear that I am tough on buyers — they would be right. I want that buyer to put their earnest money deposit into escrow. My Sacramento short sellers want that buyer’s agent to promise in writing they won’t go around us. We want the buyer committed. Because we are in the business of closing short sales, not changing status in MLS from active short contingent back to active short sale. That latter is not productive for anybody.

ar12997948843488 This is the Real Reason that Sacramento Short Sales Are on the Market for So Long

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Certified HAFA Specialist

My Sacramento Real Estate Listings

The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.

The views expressed herein are Weintraub’s personal views and do not reflect the views of Lyon Real Estate.

Tags: active short contingent, buy a short sale, loan modifications, sacramento short sale agent, sacramento short sales, short sale

Why Bank of America Should Change its Short Sale Addendum to the Purchase Contract

December 16th, 2011 by Elizabeth Weintraub #00697006, Broker Associate, Lyon Real Estate | No Comments | Filed in As Goes California…, First-Time Home Buyers, Takin’ It In The Short Sales, What You Need To Know About Buying and Selling Real Estate

I’ve been receiving an inordinate number of short sale approval letters lately. It’s really odd for this time of year. For some reason, lenders must be wanting to move into the new year with a big bang. I could see a bank pushing for a closing by year end, but pushing to close next year is peculiar. This is the first year in a long time during which I’ve received so many approval letters in December for my short sales.

I’ve heard real estate managers say that the reason agents should work harder in December is because sometimes they close more business in December than any other time of the year. On the surface that sounds like they’re saying: forget holiday shopping, decorating the tree or baking cookies, go out and show homes. But that’s not really true. Because if an agent is closing a lot of business in December, it’s because she has worked her tail off in October and November.

Of course, for me, being a Sacramento short sale agent, it’s different. The reason I am closing a lot of business in December is because I’ve worked my tail off all summer long. Some of my Sacramento closings right now were listed in June, July or August. I have a handful of 90-day listings but some are longer. It’s the nature of short sales.

I’m in no rush to close. Ever. I do whatever it takes to make my sellers happy. Not every agent can do that. Some agents need to pay their mortgage or buy groceries from that escrow closing, and it’s very important to them to close transactions immediately. But I figured out a long time ago that if an agent is going to sell short sales in Sacramento, the only problem with erratic pay periods is in the beginning. As long as one has closings in the pipeline and continually adds to them, an agent never worries about closings.

Focus on putting them in on the front end, and the back end takes care of itself. Simple recipe for success.

Plus, it leaves an agent room to micromanage some of the more difficult transactions. There are always those. I have a short sale right now at Bank of America, like many, that is in foreclosure. The auction date was set for November. The seller does not want to close until, let’s say, January 15th. For reasons we won’t go into. I explained that Bank of America does not issue short sale approval for more than 60 days out. In fact, the approval letters are for 45 days from issuance to closing.

Once we postpone the auction, the trustee’s sale will move out 30 days. So, the way to get a January 15th closing is to extend the closing twice and postpone the auction twice. That’s a little risky because the bank doesn’t have to extend nor postpone. But the other choice was foreclosure. Ya gotta have faith, people, that the system works. Sure enough, we postponed the auction, and I just postponed it again. We got an extension, just got another one.

The only problem is the seller can’t move until, say, January 15 and the closing is scheduled for, say, January 14th. The auction is January 15. Fortunately, I had a little foresight. I think I’ll high-five myself. When I filled out the Short Sale Addendum to the Purchase Contract for Bank of America, I wrote in 1 day to move. I’ve always disliked that spot in the SSPCA because typically in Sacramento sellers move on the day escrow closes. The SSPCA doesn’t provide for moving out on the day it closes, which is sorta stupid. You gotta pick either one day before or one day after.

Sellers dislike one day before. Buyers dislike one day after. Get with the program Bank of America, and change that form!!

Because I represent the seller, I try to choose one day after. Sure enough, in this situation, it came in handy. We will close on say, January 14th, and then the seller has one more day to move. Keeps everybody happy. And keeping all parties happy in a short sale is my primary objective. But man . . . the number of short sale approvals coming my way right now. If I were some other Sacramento short sale agent, I might want to say, stop, stop sending me all these approval letters. But not me. Receiving approval on a short sale is my highlight of any given day.

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Certified HAFA Specialist

My Sacramento Real Estate Listings

The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.

The views expressed herein are Weintraub’s personal views and do not reflect the views of Lyon Real Estate.

Tags: bank of america short sale, bank of america short sale addendum to purchase contract, elizabeth weintraub, postone auction, sacramento short sale agent, short sale approval letters, Short Sales, sspca

One of the Advantages of Being a Sacramento Short Sale Agent

December 11th, 2011 by Elizabeth Weintraub #00697006, Broker Associate, Lyon Real Estate | No Comments | Filed in As Goes California…, Sacramento Short Sale Listings, Takin’ It In The Short Sales

As long as it’s not further than 90 minutes away, I can sell that short sale for you. The question is whether I will drive wherever you are, and I might not. I have sold short sales for sellers I have never met. I have sold short sale homes I have never seen, although I did send another agent to inspect. But for the most part, I prefer to sell a short sale when I have personally inspected the property and met with the seller. But if not, that’s OK. The important things are the home gets sold and the seller gets released.

When this particular short sale in Marin County was referred to me, I was a little hesitant at first. Ordinarily, I prefer to service the four-county area in Sacramento. That’s my stompin’ grounds. But then short sales are a specialty and few agents specialize in them. Those who do sell short sales probably do not sell anywhere near the number of short sales that I close. I have almost 100 short sales on the books for 2011, but a few will roll into January. That’s a lot of short sales, yowza.

I know this because I was lucky enough to snag a lunch date with Sylvia Barry. Sylvia is an ActiveRainer and an agent at the number-one selling office in Marin County, Frank Howard Allen. She asked me how many short sales I close, and I hadn’t counted. I rarely count. I just sell short sales. She is not the agent who referred the listing but she is a great agent in Marin County. I would not be surprised if she finds a buyer for me. If you live in Marin County and need a fabulous agent, give Sylvia a ring.

See, somebody reading this would probably wonder why a Sacramento short sale agent would drive all the way to Marin County to take a listing. They might think it’s a million-dollar-plus listing but it is not. People who know me know that I am not that motivated by money. This short sale is a small 3-bedroom. The sellers are special people, though. The person who referred the listing is a good friend and associate in Sacramento. I owed him one. When I owe, I pay up.

But the drive across 37 West is spectacular. It’s breathtakingly beautiful. You can catch 37 West by the Fairgrounds in Vallejo off of Interstate 80. If you’ve never taken the drive around San Pablo Bay, let me tell you, it’s incredible; you won’t regret going. There is the San Pablo Bay National Wildlife Refuge located there. Miles and miles of waterfowl and shorebirds. The view is of open water in the bay, tide pools, marshes, drainage ditches and streams and mudflats.

I drove in early morning. The waters were still, reflective of golden yellows, burnt oranges and brilliant blue color mirrored upside down in the stream along the road. Not a ripple in the water. Quiet. You could bounce a dime off it. Flocks of birds suddenly swooped and dived, then abruptly changed direction to dive again. My only regret was I did not have enough time built into my schedule to pull off the road to shoot photos. Out in the middle of the water, ducks formed entire islands all by themselves. Bobbing white splotches. And it goes on forever. One section of the road is just like a roller-coaster — too bad there were cars on it.

This is worth a drive from Sacramento. Especially this time of the year because it’s located in the Pacific Flyway. Lots of migrating birds. Another reason why I love being a Sacramento short sale agent. I get to go to the most cool places.

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Certified HAFA Specialist

My Sacramento Real Estate Listings

The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.

The views expressed herein are Weintraub’s personal views and do not reflect the views of Lyon Real Estate.

Tags: elizabeth weintraub, marin short sale, pacific flyway, sacramento short sale agent, san pablo national wildlife refuge, short sale

The Top Agent at Lyon Real Estate for November 2011 is Your Sacramento Short Sale Agent

December 5th, 2011 by Elizabeth Weintraub #00697006, Broker Associate, Lyon Real Estate | No Comments | Filed in As Goes California…, Takin’ It In The Short Sales, What You Need To Know About Buying and Selling Real Estate

I was sitting at a client’s dining room table in Elk Grove yesterday when the news hit. I had just handed the seller his MARS document and had explained the seller’s right to cancel the short sale listing at any time — which seems to reassure sellers and make them feel more comfortable — and I also gave him time to read it. I don’t rush anybody. During this time period, I pulled out my cell to check if there were any emergencies.

Holy toledo, Batman, I spotted an email congratulating me for being the number one agent at Lyon Real Estate for the month of November. Not just the number one Sacramento short sale agent at Lyon Real Estate — but the number one agent in the whole company. Numero uno. That was pretty shocking. I’ve never been the number one agent in the entire company. Lyon Real Estate has, I dunno, 900-some agents.

My client looked at me with my jaw dropped and asked what happened. Did I get a short sale approved? He is so cute. Getting short sale approval is not a jaw-dropping event because that happens all the time, I told him. But this has never happened. Totally blew my mind.

I just keep my nose to the grindstone and work. After I listed that short sale home in Elk Grove, I drove to Natomas and listed another short sale as the sun was going down. Came home to a ton of emails, a new listing inputted into MLS to which I uploaded photos just before dinner (as my patient husband waited), and an offer for a short sale in Carmichael.

Even though I had inserted into the confidential agent remarks that the bank was firm on the price, an agent saw fit to submit an offer at 80% of listing price. What part of firm on price is unclear to this guy? He got his knickers in a twist when I told him the seller will find his offer to be unacceptable and I would advise the seller not to sign it. But if he had bothered to call me before writing the offer, he would have found out the bank had already rejected two other offers much higher than his.

But this is what my days are like. It comes with the territory. This Number One Agent thing reminds me of an agent in my office who pushed my back up against the wall in the hallway a few years ago. He demanded to know why I was wasting my time selling short sales. He could not fathom why a real estate agent would choose to specialize in short sales, especially in Sacramento. He probably doesn’t work for the company anymore because I haven’t seen him around. In fact, he probably doesn’t work in real estate anymore.

ar12997948843488 The Top Agent at Lyon Real Estate for November 2011 is Your Sacramento Short Sale Agent

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Certified HAFA Specialist

My Sacramento Real Estate Listings

The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.

The views expressed herein are Weintraub’s personal views and do not reflect the views of Lyon Real Estate.

Tags: #1 sacramento short sale agent, elizabeth weintraub, sacramento short sale agent, sacramento short sales, top agent lyon real estate, top producer lyon real estate

Bank of America No Longer Outsourcing All HAFA Short Sales

December 2nd, 2011 by Elizabeth Weintraub #00697006, Broker Associate, Lyon Real Estate | No Comments | Filed in As Goes California…, First-Time Home Buyers, Takin’ It In The Short Sales, What You Need To Know About Buying and Selling Real Estate

Be still my heart. I can barely stand it. I just received the news from Bank of America, and I need smelling salts. I almost passed out on my desk. All of my prayers have been answered. OK, I haven’t really been praying to anybody, but I have been yelping a lot about how horrible the HAFA short sales have been with Bank of America third-party vendors.

Now, Bank of America has made a change. Effective December 1, which is today, Bank of America will no longer outsource its HAFA short sales when they are opened in Equator with an offer. I’m stoked. Jazzed. Especially since the only kind of HAFAs I have been doing lately are the HAFAs submitted with an offer. The preapproved HAFAs take too long. There is no reason to get preapproved people — and now, with Bank of America’s new policy, there is even less of a reason.

The second thing Bank of America is doing is implementing a procedure it announced it was implementing a month ago, yet had not actually taken place. This procedure involves not putting the short sale on hold while reaching out to the borrower to confirm that the borrower does not want HAFA.

Now, short sales will begin moving through the Equator system immediately. If the seller wants to do a HAFA, it is up to the agent to submit the required paperwork within 14 days. If Bank of America does not receive the paperwork within 14 days, then the HAFA will not be open, and the file will continue to be processed as a traditional short sale.

How smart is that?

Knock me over with a feather!

No longer will I need to hear that the homeowner has not called in to reject HAFA, and then have to listen to the homeowner rant and rave about the fact she DID call in. This new process is so much easier.

Thank you, Bank of America!

ar12997948843488 Bank of America No Longer Outsourcing All HAFA Short Sales

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Certified HAFA Specialist

My Sacramento Real Estate Listings

The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.

The views expressed herein are Weintraub’s personal views and do not reflect the views of Lyon Real Estate.

Tags: bank of america ams hafa short sale, bank of america hafa short sale, bank of america short sale, bank of america third party vendor, hafa short sale, sacramento short sale agent, sacramento short sales

How to Work Within SB 458 for a Sacramento Short Sale Without Violating 580e

November 25th, 2011 by Elizabeth Weintraub #00697006, Broker Associate, Lyon Real Estate | No Comments | Filed in As Goes California…, Takin’ It In The Short Sales, What You Need To Know About Buying and Selling Real Estate

Before I tell you how to work within SB 458 in a Sacramento short sale, let’s first talk about Thanksgiving. I pride myself as a person who pays attention to detail. I would never, for example, just presume that simply because a restaurant advertises it features a Thanksgiving meal that you’re gonna get turkey. There is no guarantee that T-Day equals a bird. You might get turkey loaf, like my sister did when she went to the Nicollet Island Inn in Minneapolis. Or roasted turkey breast, for those who went to the Firehouse Restaurant in Old Sacramento.

But if you’re like me, and you prefer turkey thigh or drumsticks, there is a great place to go in Sacramento. A place where they serve diners by carving from a complete roasted turkey. So, you can have your choice: dark meat or white meat. That place is The Hyatt. My advice is if you’re going out to a restaurant for Thanksgiving, read the menu before you go. That way you won’t be disappointed. There are plenty of people who don’t care — people who prefer a little diversity and creativity at Thanksgiving — but let’s just say I am not one of those.

Some things you just don’t mess with.

But a Sacramento short sale is a whole different story. Here we’ve had a bill signed and passed last summer that prohibits a seller contribution in a short sale. Or does it? I think if you read the bill, you will see that it prohibits a lender from requiring a seller contribution in a short sale as a condition of approval. It doesn’t prohibit a seller from offering it upfront. That’s just not my interpretation, that’s what lawyers say. Read California Civil Code 580e.

Obligatory disclaimer: This is not legal advice, as I do not give legal advice. I am a Sacramento short sale agent who negotiates and sells short sales throughout a four-county area in Sacramento. I am not licensed to give legal advice, and you can’t count on anything I have to say as remotely resembling legal advice. If you want legal advice, talk to a lawyer.

I did prove that it works, though. It’s not just a theory. The trick is it needs to be offered to the bank upfront, on the HUD when submitted with the buyer’s offer and listing agreement. Or, you can let the bank close the file and then reopen it. The amount that you offer needs to make sense, and this where an experienced Sacramento short sale agent can help you. I am used to negotiating payoffs with banks.

If you don’t have a hardship, and you want to do a strategic short sale in Sacramento, there is hope for you — as long as you’re willing to pay for the privilege. Where does the money come from, you might ask? From the payments you aren’t making. Although, I would never tell a client to stop making mortgage payments. No, sirree. Ask a lawyer that question, not me.

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Certified HAFA Specialist

My Sacramento Real Estate Listings

The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.

The views expressed herein are Weintraub’s personal views and do not reflect the views of Lyon Real Estate.

Tags: california civil code 580e, elizabeth weintraub, firehouse restaurant, nicollet island inn, sacramento short sale agent, sacramento short sales, sb 458, seller contribution, senate bill 458, the hyatt sacramento

Why This Elk Grove Short Sale Took a Year to Close

November 21st, 2011 by Elizabeth Weintraub #00697006, Broker Associate, Lyon Real Estate | No Comments | Filed in As Goes California…, First-Time Home Buyers, Takin’ It In The Short Sales, What You Need To Know About Buying and Selling Real Estate

Real stories about real Sacramento short sales brought to you by your Sacramento short sale agent, Elizabeth Weintraub. For every dragged out, convoluted, problem-child short sale in Sacramento, there are typically 2 or 3 that close with very few delays. For obvious reasons, though, those stories are not as interesting as the short sales that cause anxiety and pain.

Two Elk Grove short sales that closed the week before last went off without a hitch. We didn’t have any problems with the sales price, which is generally because we have priced the short sale correctly. Of the four that closed last week, two were smooth sailing as well. The short sale closing process generally moves along at a brisk pace because buyers are eager to get into their new home, and their agents are eager to help them.

I think if given a choice, a buyer’s agent would prefer to not work on a Sacramento short sale. That’s because they take too long to close, and therefore it takes too long for the agents to get paid. There is also a bit of uncertainty as to whether the short sale will get approved. Although, buyer’s agents who work on my short sales tend not to face that dilemma.

One of my closings, another Elk Grove short sale, was a real nail biter. First, the seller had hired a lawyer about a year ago to negotiate her short sale. Do you need a lawyer for a short sale? Sometimes. Depends on the situation. All sellers should get legal and tax advice, but not every seller needs a lawyer to negotiate. Many short sale agents make an excellent short sale negotiator, providing they have experience and a hands-on willingness to tackle the job.

This short sale went on the market in October of last year. We received multiple offers and the home quickly sold. We sent the offer to the lawyer. The lawyer obtained a release of liability for the seller, and we went into escrow. A couple weeks later, the buyers decided they would like to renegotiate the sales price with the bank. I had told the buyers no re-negotiation. No price concessions. No repairs. But that was their excuse. It was a case of cold feet, not price. They canceled.

Second set of buyers promised the moon and the stars as well. Swore up and down they would wait for short sale approval. Put their earnest money deposit into escrow. Their agent agreed to not write any more offers. The sellers decided to bypass the lawyer this time because it would cost them another fee. So, I offered to get an approval letter for them.

For no particular reason, the second set of buyers canceled. The sellers were heartbroken. There is no explaining why buyers cancel. Some receive news that their jobs are in jeopardy. Others find another home they like better. Some probably get divorced, remarried and raise 3 children during the time they wait for short sale approval.

By the time we hit our 5th set of first-time home buyers, the agents who represented these people were from out-of-area. Call me jaded, but there always seems to be an extra set of problems when the agents handling the buyers are not from around these parts. Much of the time it’s because the agents are related to the buyer or they have some other really weird reason why they are not selling in their own community — such as maybe they don’t really sell real estate full-time.

In this transaction, we had 2 agents working together — I don’t know why. One of them was a mortgage broker, though, and that in itself is a big red flag. It’s hard enough to specialize in mortgages — I wouldn’t in a million years expect a mortgage broker to also be proficient at selling real estate. That would be like me trying to do a mortgage. Not gonna happen. We all have our specialties, and we should stick with what we know and do best. But California law allows anybody with proper licensing to do both. Go figure.

The file was too complicated, said the second mortgage broker who took it over. Escrow told me after it closed that it was a good idea I didn’t hear everything that had gone on. Well, I suspected we had the blind-leading-the-blind and a buyer who didn’t have two 2 nickels to rub together, but I had faith this would close by the hair of its chinny-chin-chin. And it did. I got short sale extension. Twice from Wells Fargo. 15 months later and 5 buyers down the tubes, but by golly, we closed.

Tags: elk grove short sales, sacramento short sale agent, sacramento short sales, short sale, short sale approval, short sale closing, short sale extension, short sale negotiator

The Cowboys and Cowgirls of Real Estate are Short Sale Agents

November 19th, 2011 by Elizabeth Weintraub #00697006, Broker Associate, Lyon Real Estate | No Comments | Filed in As Goes California…, Takin’ It In The Short Sales, What You Need To Know About Buying and Selling Real Estate

I just received a fan-email from an agent in her 70s. I think she’s from New York. Said she had been spending the day yesterday reading my stuff on short sales on About.com, because she now needs to service these types of listings. She offered me a play on words: deed-in-lieu of foreclosure or Elizabeth Weintraub in-lieu of CRS course. I think what she meant was in-lieu-of CDPE.

Agents should get training from a multitude of sources, but the most important place to get training, it turns out, is sometimes from yourself. From experience. I learn from myself all of the time. I learn from writing about what I do. From sharing my experiences with other people, so it’s not a totally selfless act when I write about short sales.

The thing about teaching other people is sometimes people think you are fabulous because you are telling them something they did not know. That doesn’t make you fabulous. Because they can teach you as well. The thing about seminar companies is they are in the business of making money by offering a product. This product did not exist before they decided to offer it. So, they write the rules and make up the program. There is no degree and no test. Take some of this training with a grain of salt. I say to other agents: go earn those notches in your belt.

Then share what you know, and you’ll have it all come back ten-fold. Sellers and buyers want information, and they look for it online.

I’ll tell you one of the most important benefits I have picked up by selling short sales is how to be a better Sacramento real estate agent. Eventually the market will rebound. Maybe not for another 5 to 7 years, but it will come back. When it does, I am poised.

One of the things I’ve learned as a Sacramento short sale agent is to sell listings that nobody else wants. Homes that the bulk of the buying public passes by. It’s easy to sell a home everybody wants to buy. It’s hard to sell a home few buyers want and even fewer agents want to show. Not only do I have to sell that home which nobody wants, but I might have to sell that short sale over and over. And I do.

Try selling a home nobody wants a second time, why doncha? Then try selling that home for a third time and a fourth time or a seventh time. Agents have been known to say, whoa, this home has been on the market for more than a year, there must be something wrong with it. Buyers hold out their arms, with crossed forefingers, hissing, and then throw garlic at it.

If you’re a seller looking for a good real estate agent, consider a short sale agent. Even if you don’t have a short sale home to sell. Because we have skills other agents may never have had the opportunity to hone. Skills that can benefit you no matter what type of home you have to sell. We are the cowboys and cowgirls of real estate. It’s a new frontier.

ar12997948843488 The Cowboys and Cowgirls of Real Estate are Short Sale Agents

—

Certified HAFA Specialist

My Sacramento Real Estate Listings

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. Broker-Associate at Lyon Real Estate. DRE License # 00697006.

The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.

The views expressed herein are Weintraub’s personal views and do not reflect the views of Lyon Real Estate.

Tags: cowboys and cowgirls, elizabeth weintraub, sacramento short sale agent, sacramento short sales, seminar companies, short sale, short sale agents, Short Sales, short sales about.com

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