NOD-NOT-REO

[Lloyd]

Thanks!

You described a short sale as being painful? Can you describe a little bit more?

Say a home last sold for $3M (zero down) and is now an REO. Can I just offer $1M and let the offer sit there? how do I even make an offer?

Thanks again!

[Lloyd]

Thanks!

We are interested in 92127 which is fairly new.

We really would like to get the best bargin possible now that might protect us from the impending retraction. Any more suggestions on how to go about this?

Thanks again!

We miss San Diego!

[Lloyd]

Thanks!

We are interested in 92127 which is fairly new.

We really would like to get the best bargin possible now that might protect us from the impending retraction. Any more suggestions on how to go about this?

Thanks again!

We miss San Diego!

[Lloyd]

Thanks!

We are interested in 92127 which is fairly new.

We really would like to get the best bargin possible now that might protect us from the impending retraction. Any more suggestions on how to go about this?

Thanks again!

We miss San Diego!

[SD Realtor]

One thing that has been irritating to me is that many homes that have been foreclosed and returned to the lender have been put back on the MLS but not priced to sell quickly. So these homes sat on the market for months, did not sell, then got pulled entirely off the market. Some of these then went to the private auctions. So that is what I mean by some of the auctioned properties already went through an MLS cycle.

Hopefully now as more homes get foreclosed they will be put on the MLS with a more aggressive price strategy.

Short sales are a pain… well the problem is that you have two parties you negotiate with, the seller and the lender. When you purchase a short sale you are at the mercy of the lender. So imagine Joe homeowner who is selling his home for 500k but owes 600k on it. So you submit the 500k offer and Joe says yes but you need to hear back from Joes lender as well. If both do not agree to the sales price then your offer cannot be accepted. Also the lender tends to take their own sweet time. For instance I have a seller who is selling his home short. The lender has already told me it will take 2-3 WEEKS to respond to any offer. Some lenders work faster then others but this is an example that is true to life.

In your example I was a little confused. If the property is an REO then the bank already owns it. You submit your offer directly to whoever is representing the bank. (Banks usually enlist brokers or realtors to sell the home) so you can offer whatever you want to offer. However if the property is an REO there is no outstanding loan on the property.

If the home is still owned by the homeowner and they owe 500k and you offer 400k and the seller CANNOT make up the 100k difference then the seller needs to work with the lender to see if the lender will ACCEPT a short sale. It is not a matter of the seller just saying “hey lender this is a short sale”. The seller must provide documentation and proof that there is a hardship situation. It is a pain in the butt paperwork wise. The entire documentation package includes tax returns, letter of hardship, salary verification, statements of net worth, etc…If the lender believes the documentation then they may grant a short sale if they believe they cannot get a better price through foreclosure and selling it themselves.

Hope this helps.

SD Realtor

[SD Realtor]

One thing that has been irritating to me is that many homes that have been foreclosed and returned to the lender have been put back on the MLS but not priced to sell quickly. So these homes sat on the market for months, did not sell, then got pulled entirely off the market. Some of these then went to the private auctions. So that is what I mean by some of the auctioned properties already went through an MLS cycle.

Hopefully now as more homes get foreclosed they will be put on the MLS with a more aggressive price strategy.

Short sales are a pain… well the problem is that you have two parties you negotiate with, the seller and the lender. When you purchase a short sale you are at the mercy of the lender. So imagine Joe homeowner who is selling his home for 500k but owes 600k on it. So you submit the 500k offer and Joe says yes but you need to hear back from Joes lender as well. If both do not agree to the sales price then your offer cannot be accepted. Also the lender tends to take their own sweet time. For instance I have a seller who is selling his home short. The lender has already told me it will take 2-3 WEEKS to respond to any offer. Some lenders work faster then others but this is an example that is true to life.

In your example I was a little confused. If the property is an REO then the bank already owns it. You submit your offer directly to whoever is representing the bank. (Banks usually enlist brokers or realtors to sell the home) so you can offer whatever you want to offer. However if the property is an REO there is no outstanding loan on the property.

If the home is still owned by the homeowner and they owe 500k and you offer 400k and the seller CANNOT make up the 100k difference then the seller needs to work with the lender to see if the lender will ACCEPT a short sale. It is not a matter of the seller just saying “hey lender this is a short sale”. The seller must provide documentation and proof that there is a hardship situation. It is a pain in the butt paperwork wise. The entire documentation package includes tax returns, letter of hardship, salary verification, statements of net worth, etc…If the lender believes the documentation then they may grant a short sale if they believe they cannot get a better price through foreclosure and selling it themselves.

Hope this helps.

SD Realtor

[SD Realtor]

One thing that has been irritating to me is that many homes that have been foreclosed and returned to the lender have been put back on the MLS but not priced to sell quickly. So these homes sat on the market for months, did not sell, then got pulled entirely off the market. Some of these then went to the private auctions. So that is what I mean by some of the auctioned properties already went through an MLS cycle.

Hopefully now as more homes get foreclosed they will be put on the MLS with a more aggressive price strategy.

Short sales are a pain… well the problem is that you have two parties you negotiate with, the seller and the lender. When you purchase a short sale you are at the mercy of the lender. So imagine Joe homeowner who is selling his home for 500k but owes 600k on it. So you submit the 500k offer and Joe says yes but you need to hear back from Joes lender as well. If both do not agree to the sales price then your offer cannot be accepted. Also the lender tends to take their own sweet time. For instance I have a seller who is selling his home short. The lender has already told me it will take 2-3 WEEKS to respond to any offer. Some lenders work faster then others but this is an example that is true to life.

In your example I was a little confused. If the property is an REO then the bank already owns it. You submit your offer directly to whoever is representing the bank. (Banks usually enlist brokers or realtors to sell the home) so you can offer whatever you want to offer. However if the property is an REO there is no outstanding loan on the property.

If the home is still owned by the homeowner and they owe 500k and you offer 400k and the seller CANNOT make up the 100k difference then the seller needs to work with the lender to see if the lender will ACCEPT a short sale. It is not a matter of the seller just saying “hey lender this is a short sale”. The seller must provide documentation and proof that there is a hardship situation. It is a pain in the butt paperwork wise. The entire documentation package includes tax returns, letter of hardship, salary verification, statements of net worth, etc…If the lender believes the documentation then they may grant a short sale if they believe they cannot get a better price through foreclosure and selling it themselves.

Hope this helps.

SD Realtor

[SD Realtor]

You described a short sale as being painful? Can you describe a little bit more?

– I think I did in my previous post. If you have more questions I will post another example.

Say a home last sold for $3M (zero down) and is now an REO. Can I just offer $1M and let the offer sit there? how do I even make an offer?

– Yes you can make an offer. Any qualified realtor can work with you to do this. Or you can find who is listing the home and call them up. Most REO properties (bank owned) have realtors/brokers representing them. Lenders do not sell directly for liability purposes.

SD Realtor

[SD Realtor]

You described a short sale as being painful? Can you describe a little bit more?

– I think I did in my previous post. If you have more questions I will post another example.

Say a home last sold for $3M (zero down) and is now an REO. Can I just offer $1M and let the offer sit there? how do I even make an offer?

– Yes you can make an offer. Any qualified realtor can work with you to do this. Or you can find who is listing the home and call them up. Most REO properties (bank owned) have realtors/brokers representing them. Lenders do not sell directly for liability purposes.

SD Realtor

[SD Realtor]

You described a short sale as being painful? Can you describe a little bit more?

– I think I did in my previous post. If you have more questions I will post another example.

Say a home last sold for $3M (zero down) and is now an REO. Can I just offer $1M and let the offer sit there? how do I even make an offer?

– Yes you can make an offer. Any qualified realtor can work with you to do this. Or you can find who is listing the home and call them up. Most REO properties (bank owned) have realtors/brokers representing them. Lenders do not sell directly for liability purposes.

SD Realtor

[SD Realtor]

The retraction is not impending. It is here so I would use the term current retraction. It will continue for a few more years.

Financially the best way to protect against it would be to not purchase if you can hold off. Even holding off another year or two may save you a good chunk of change. Many on this board forecast a large drop in the median in the next 12-18 months. I think there is a possibility of that to happen but real estate moves slow… really slow. However you never know. Alot of data seems to support a chunk downwards… I think certain segments can and will chunk down but I am not so sure more desireable ones will chunk down in a 10-20% manner but ya never know! I am more of a longer protracted downtrend kind of guy. In the end we all are of the same opinion for where we will end up.

I know many people purchase homes other then for financial reasons. If this is the case then the best protection is to get the best deal you can. Lowball people, be very selective, do not overextend yourself…. etc. I believe condos will continue to depreciate at a higher rate then detached homes but on the whole everything will move down. You may want to think about value as well. Recurring fees such as Mello Roos and HOA are something you can choose to avoid but if you have your heart set on a new home, then these fees will be inherent in your purchase.

SD Realtor

[SD Realtor]

The retraction is not impending. It is here so I would use the term current retraction. It will continue for a few more years.

Financially the best way to protect against it would be to not purchase if you can hold off. Even holding off another year or two may save you a good chunk of change. Many on this board forecast a large drop in the median in the next 12-18 months. I think there is a possibility of that to happen but real estate moves slow… really slow. However you never know. Alot of data seems to support a chunk downwards… I think certain segments can and will chunk down but I am not so sure more desireable ones will chunk down in a 10-20% manner but ya never know! I am more of a longer protracted downtrend kind of guy. In the end we all are of the same opinion for where we will end up.

I know many people purchase homes other then for financial reasons. If this is the case then the best protection is to get the best deal you can. Lowball people, be very selective, do not overextend yourself…. etc. I believe condos will continue to depreciate at a higher rate then detached homes but on the whole everything will move down. You may want to think about value as well. Recurring fees such as Mello Roos and HOA are something you can choose to avoid but if you have your heart set on a new home, then these fees will be inherent in your purchase.

SD Realtor

[SD Realtor]

The retraction is not impending. It is here so I would use the term current retraction. It will continue for a few more years.

Financially the best way to protect against it would be to not purchase if you can hold off. Even holding off another year or two may save you a good chunk of change. Many on this board forecast a large drop in the median in the next 12-18 months. I think there is a possibility of that to happen but real estate moves slow… really slow. However you never know. Alot of data seems to support a chunk downwards… I think certain segments can and will chunk down but I am not so sure more desireable ones will chunk down in a 10-20% manner but ya never know! I am more of a longer protracted downtrend kind of guy. In the end we all are of the same opinion for where we will end up.

I know many people purchase homes other then for financial reasons. If this is the case then the best protection is to get the best deal you can. Lowball people, be very selective, do not overextend yourself…. etc. I believe condos will continue to depreciate at a higher rate then detached homes but on the whole everything will move down. You may want to think about value as well. Recurring fees such as Mello Roos and HOA are something you can choose to avoid but if you have your heart set on a new home, then these fees will be inherent in your purchase.

SD Realtor

[Lloyd]

I understand now.. great job.. thanks so much!

[Lloyd]

I understand now.. great job.. thanks so much!

[Author]

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