Archive for the 'Sacramento Sellers' Category

How long until Sacramento Short Sales become more successfull?

We dread it.  Yet We still do it… Showing the shortsale listing to clients, and then explaining reason why they should “Just Walk Away”…

Like the web site that offers a ”customized” plan to homeowners in default, I find myself many times giving the same advice to buyers in this market to just ignore most short sales. We still go look, to compare pricing and make sure we are not missing the deal of a lifetime, on the home of their dreams, but most of the time, we just look…

If the home is perfect for the buyer, we do write, but we always coach our buyers to keep looking. Most of the time, after weeks of no communication from the listing agent and/or no word form the bank, a comparable home will come on the market that we can actually close on.

In our Sacramento area, Less than five percent of short sales that go pending are actually closing and transferring ownership.  Most of the nine transactions I have closed successfully have taken over 90 days to complete; one took 7 months.

We have been successful on the buyers side only twice, the listings I have closed are usually closed with the third, fourth, fifth buyer contract.

We just lost another listing to the foreclosure sale, it was with Wells Fargo, who for OVER FOUR MONTHS complained that we had never faxed in our sellers package, that they had technical problems, that the fax machine was broken, that the original fax number was no longer a good number (even though our transmission reports indicated ok)… we heard that the account manager assigned had quit and had to re-start the entire process, not once but twice! We heard that the sale date had been extended and that the bpo had finally been ordered…

Then one day an agent called to say she had been assigned the property and wanted our lock box off.  During this five month process, we had seven offers submitted to the bank with completed packages, pre-approval letters, our own BPO, and showing reports… hours upon hours of work…

We tell this and other horror stories of the fifteen or twenty listings we have lost to the forclosure sale at the courthouse steps to  our buyers and usually  get them to concede that it would be far more appealing to get into a transaction on a listing where we could actually plan on closing.

However, in the cases where buyers have parents who live on the same street, or where kids can walk to an important school or buyers who grew up next door and played in the backyard as a child, we will write a strong offer on a shortsale; as long as the listing agent has had shortsale experience or is using a professional  negotiator, that they have a full package submitted to the lender and as long as there is only one bank involed (not a fist and a second) and it is not Wells Fargo!

Authored by Forth Hoyt | Discussion: 1 Comment »

Newest Sacramento Foreclosure News:

 According to the newest research I have done, Sacramento County is ranked 6Th out of 55 in the state for population per foreclosure sale.  Currently there are approximately 1,426 people for each trustee sale here in Sacramento… Right now Sacramento County Has 22,273 Foreclosures; according to Default Research (www.defaultresearch.com), that’s 4.22 percent of the households in Sacramento. Wow.

 “The impact of the credit crisis that began in August is now clearly starting to show its impact,” said ForeclosureRadar… which is the only web site that tracks every California foreclosure with daily updates on foreclosure auctions.  It also has a mapping feature that shows foreclosure activity from a Birdseye view and I use it frequently on listing appointments to show the number of homes in a particular area that are about to become bank owned and add to our inventory;  A great way to get sellers to either throw in the towel right now or to price their home aggressively and stop the bleeding right now.

 The latest foreclosure numbers and transaction reports are showing that finally we are seeing an increase in the number of real estate deals here in the Sacramento area. 

 Numbers for the rest of the state seem just as scary: DataQuick Information Systems of La Jolla reported that lenders sent81,550 default notices in the last three months of 2007. 

 At dinner the other night, I ran into a guy that told me about his own foreclosure ‘plight’: He is a displaced lender; he was in the mortgage business for over ten years and is now doing construction…  He owns four income properties here in the Sacramento area; one in Folsom, Two in Elk Grove and one in Carmichael.  After taking out all the equity on these homes, he put adjustable rate and neg-am mortgages on all of them (negative amortization; a type of mortgage where the monthly payment doesn’t even cover the interest, so the principle actually increases over the length of the loan).  Then he took the cash to put down on a huge house overlooking Folsom lake.  Now his mortgages are all in default and he is not making the payments.  His tenants have no Idea. He is pocketing the rent.

I wonder how many similar stories there are out there…

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Sacramento Homebuyers: Hurry; Real Estate is on Sale!! How long can these great deals last?

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Sacramento Housing Inventory nearly triples compared to last year!

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It just gets worse; More Bad news for Sacramento homesellers…

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Three More Good Reasons for Sacramento Real Estate Sellers to Get Out Now!

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Good news, bad news about Sacramento Real Estate and Our Local Economy…

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Sacramento Real Estate Buyers’ outlook…

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Just like many Sacramento sellers, this Bank won’t “give this house away…”

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What Will Happen In Sacramento?