Short Sales
Articles and information on short sales, predominantly focused on California transactions.
Bank of America Restructuring Short Sale Process
If you think that you can put your house up for sale in a short sale and then have the opportunity to stay in it for another six months, Bank of America has news for you. If your mortgage is with them, those days are gone. The bank has announced that it is restructuring its approval process and the new procedures will be in full force and effect by next week. That’s good news for buyers, real estate agents and for sellers who want to unload their home. But for those who have been gaming the system to say in their homes for months… or in some cases, years… the party is over.
Bank of America is going to be overhauling its system this coming weekend. According to a Read the rest of this entry »
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More Strange Short Sale Stories
Nobody ever said that short sales were going to be easy. But there is now a story making the rounds about a bank that has denied a short sale due to “lack of marketing.” Apparently the bank was unhappy because they couldn’t find the listing on Zillow.com. If the banks are going to go down this path, it spells real trouble for both agents and sellers.
Short sales are an odd type of sale. When an agent lists a short sale, the listing agreement is signed between the agent and the seller. The bank is not involved at this stage. That means that the agent’s fiduciary duty is to Read the rest of this entry »
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Chinese Drywall Strikes Again!
Do you remember the stories about Chinese drywall? They started to crop up a couple of years ago. Some drywall made in China wasn’t exactly made to US standards. According to Wikipedia,
Laboratory tests of samples for volatile chemicals have identified emissions of the sulfurous gases carbon disulfide, carbonyl sulfide, and hydrogen sulfide. These emissions, which have the odor of rotten eggs, worsen as temperature and humidity rise and cause copper surfaces to turn black and powdery, a chemical process indicative of reaction with hydrogen sulfide. Copper pipes, wiring, and air conditioner coils are affected, as well as silver jewelry. Homeowners have reported a variety of symptoms, including respiratory problems such as asthma attacks, chronic coughing and difficulty breathing, as well as chronic headaches and sinus issues.
As if all of this isn’t bad enough, now there is another reason to get rid of any Chinese drywall that may be lurking in Read the rest of this entry »
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Foreclosures Likely to Rise as Direct Result of State Settlement with Banks
It is no small irony that this past week’s announcement of a settlement between the nation’s five largest lenders and 49 states is actually expected to cause a spike in foreclosure activity. The settlement negotiations directly involved the procedures that banks use when foreclosing. But now that those talks are done, and an agreement has been reached, these same banks now feel that they are on firm legal footing to proceed with many foreclosures that they had held off on. The end result is likely to be a big increase in the number of foreclosures in California in the coming few months.
The banks involved in the negotiations had been reluctant to foreclose on properties because any increase in foreclosure activity was likely to bring added Read the rest of this entry »
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The Worst Kept House I’ve Ever Seen
Anyone who works in real estate can tell you that when it comes to short sales and bank owned properties, you get to see a lot of houses in very tough shape. I’ve been in houses with broken water pipes… with the water still turned on, with all of the electrical wiring pulled out, with all of the appliances having been stolen, and the list goes on and on. But the worst houses are often the ones that people are still living in. The sad thing is, that at least in some of these cases, if the owners would just clean up their homes a little, they might not have to do a short sale at all.
You never know what you will find when you go to a house that people are still living in. I’m betting that some of the agents who read this blog will have walked into a few homes where the junk is piled to the ceiling and there are pathways through the junk to walk on. Or worse, junk piled to the ceiling and no pathway through it.
Last week, I was showing a client a home and it was the worst that I’ve ever been in. And that is saying a lot. Fortunately, I had warned my client that the exterior of the home was in bad shape and there was some junk in the front yard. But it did have a very nice rose garden.
When I stepped through the front door though, I was completely unprepared for what I found. Not only were there pathways through the junk, but there were bird cages everywhere. Some of them were huge. And they were all full of very live, chirping and squawking birds.
They were in the dining room. The living room. The bedrooms. But that wasn’t the half of it. We then stepped out into a back yard that covered around 11,000 square feet. That’s where the real fun began.
About half of the yard was covered in junk. That’s what the first picture above is. The other half was covered in more bird cages. Actually, these cages were the size of a small house and there were three or four of them. There were pigeons, chickens and parrots. One cage was full of gray parrots. I don’t have any idea what these are worth, but I’m betting that it was a pretty penny.
The sad thing about this is that the house itself wasn’t a bad layout. In fact, the interior wasn’t in horrible shape. Even the kitchen was large and functional. Clear out the junk, throw up some new paint and water the lawn and the owners may have been in the black on the house. Sell some of the birds, and they may have been able to pay down their loan enough to refinance.
When you see this sort of thing, it’s very sad.
Needless to say, my client decided to move on to another property.



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