Yo People.
Ray Liotta's character in "Goodfellas" said it best, "F... you, pay me! That's what's going on in the foreclosure and short sale world. You fall on hard times and you can't continue to make your mortgage payments. The bank says "give us 'da money". You say "I can't. I lost my job, I have a sixth grade education and a broken hip". The bank says "we'll take your house you expletive". You say "that sucks, but I understand & you gotta do what you gotta do". So, the bank either forecloses on you or maybe they'll allow you to do a short sale. In either case, you could owe them the deficiency amount. Huh? You could owe the bank what they eventually lost.
If you owe $300K and the bank only gets $200K (just simple math, there are all kinds of fees and expenses but it's all bottom line stuff) you will potentially owe the bank $100K. But you got the house? F... you, pay me. You said I could do a short sale? F... you, pay me.
Here in California there is a situation where you will not owe that deficiency. It's called non-recourse. It means if the money borrowed was used to purchase your home (not money to remodel, send kids to college or fix your broken hip) the banks have no recourse to come after the deficiency. Nice.
If you are in that situation where your mortgage is becoming too unbearable you need to talk to your accountant, your realtor and perhaps a bankruptcy attorney. These people will protect you as much as possible.
Read the article from CNN Money by clicking on the title.
God Bless.
Wednesday, February 3, 2010
Tuesday, February 2, 2010
Legal VS Moral And Your Deposit $
Hi People.
The difference between legal and moral is a very gray line. The law is only man's feeble attempt at justice. That's why there are so many people who get mad at a court's decision to punish too lightly or too severely in any type of legal scenario, from a terrorist to a jaywalker.
Same goes in real estate where the law usually comes down to what's in the contract.
So, first of all, know what's in the contract! Don't let it come down to "but I thought that meant....", it does not matter. What you thought is irrelevant, it's what you signed.
But, there are plenty of situations in real estate where you might have to sign something, even if you don't like it that much, in order to buy or sell a home.
A good example of that is the contingency periods on a contract. If you're a buyer in competition for a house you might accept a shorter or stricter contingency period, leaving your deposit a bit vulnerable. If you're the seller & only one person wants your house and they want certain contingency periods elongated, then you might have to or possibly lose that buyer.
But, either one of the scenarios does not eliminate your right to fight for the deposit if something goes against you when the contingency period is not on your side. I only suggest doing this when you feel that you have been wronged and that you are morally correct. Otherwise you're kind of creepy.
If you are a buyer in escrow and your contingency periods are up and something happens where you can not go through with the purchase, the seller will want to keep your deposit. If you think you're being screwed, fight him. He can't (or at least he's not supposed to) open a new escrow without cancelling (everyone has to sign this cancellation to make it valid) the current escrow. Meaning, he can't resell his house without all parties agreeing on the cancellation.
If you are a seller and the buyer still has his contingency periods you have hardly any leverage. You want to resell your house and the buyer (contractually) is in the right. If you get a new buyer then just sign the cancellation that gives the buyer their deposit. But, if you feel you have been wronged do not sign the cancellation until you get a new buyer. While you're waiting for a new buyer try to negotiate with the old buyer that you keep some of the deposit money.
In either case, the only thing the other party can do is threaten to take you to mediation, arbitration or small claims court. Don't go. Negotiate up to that point and if they don't budge, sign the cancellation because you will lose. When you do lose you will be stuck with the court costs. It does not matter if you are morally right, the courts do not care.
Whatever your situation, go with what your heart says. Trying to jerk someone will come back on you.
God Bless.
The difference between legal and moral is a very gray line. The law is only man's feeble attempt at justice. That's why there are so many people who get mad at a court's decision to punish too lightly or too severely in any type of legal scenario, from a terrorist to a jaywalker.
Same goes in real estate where the law usually comes down to what's in the contract.
So, first of all, know what's in the contract! Don't let it come down to "but I thought that meant....", it does not matter. What you thought is irrelevant, it's what you signed.
But, there are plenty of situations in real estate where you might have to sign something, even if you don't like it that much, in order to buy or sell a home.
A good example of that is the contingency periods on a contract. If you're a buyer in competition for a house you might accept a shorter or stricter contingency period, leaving your deposit a bit vulnerable. If you're the seller & only one person wants your house and they want certain contingency periods elongated, then you might have to or possibly lose that buyer.
But, either one of the scenarios does not eliminate your right to fight for the deposit if something goes against you when the contingency period is not on your side. I only suggest doing this when you feel that you have been wronged and that you are morally correct. Otherwise you're kind of creepy.
If you are a buyer in escrow and your contingency periods are up and something happens where you can not go through with the purchase, the seller will want to keep your deposit. If you think you're being screwed, fight him. He can't (or at least he's not supposed to) open a new escrow without cancelling (everyone has to sign this cancellation to make it valid) the current escrow. Meaning, he can't resell his house without all parties agreeing on the cancellation.
If you are a seller and the buyer still has his contingency periods you have hardly any leverage. You want to resell your house and the buyer (contractually) is in the right. If you get a new buyer then just sign the cancellation that gives the buyer their deposit. But, if you feel you have been wronged do not sign the cancellation until you get a new buyer. While you're waiting for a new buyer try to negotiate with the old buyer that you keep some of the deposit money.
In either case, the only thing the other party can do is threaten to take you to mediation, arbitration or small claims court. Don't go. Negotiate up to that point and if they don't budge, sign the cancellation because you will lose. When you do lose you will be stuck with the court costs. It does not matter if you are morally right, the courts do not care.
Whatever your situation, go with what your heart says. Trying to jerk someone will come back on you.
God Bless.
Monday, February 1, 2010
I Thought You Was That Other Guy!
Buenos dias People.
Just read an article (from the smarty-smarties at Forbes) saying that we are #1! We San Diegans do it better than anyone. Our home prices fell faster than I fell in love with my wife (aw). "San Diego has seen the greatest three month drop in asking price, falling 7.3% from Oct 09 to Dec 09" said Forbes.
Maybe asking prices falling means that less expensive places are on the market?
Maybe people are holding on 'til after the holidays?
Maybe I sound a little stupid? Stupid like a fox (stolen from Homer Simpson).
Actually, it was a case of mistaken identity. Forbes saw Carlsbad #s and thought San Diego.
The San Diego median home price went up from $325,000 to $330,000 from Oct 09 through Dec 09. Carlsbad, however, did go down 7+% from approx $860,000 to $830,000 during that same period.
Things are not usually as bad (or good) as reported.
Some fact checker is going to be in trouble.....
Read the article (click on the title) and pity those poor people at Forbes. Will they ever amount to anything?
Just read an article (from the smarty-smarties at Forbes) saying that we are #1! We San Diegans do it better than anyone. Our home prices fell faster than I fell in love with my wife (aw). "San Diego has seen the greatest three month drop in asking price, falling 7.3% from Oct 09 to Dec 09" said Forbes.
Maybe asking prices falling means that less expensive places are on the market?
Maybe people are holding on 'til after the holidays?
Maybe I sound a little stupid? Stupid like a fox (stolen from Homer Simpson).
Actually, it was a case of mistaken identity. Forbes saw Carlsbad #s and thought San Diego.
The San Diego median home price went up from $325,000 to $330,000 from Oct 09 through Dec 09. Carlsbad, however, did go down 7+% from approx $860,000 to $830,000 during that same period.
Things are not usually as bad (or good) as reported.
Some fact checker is going to be in trouble.....
Read the article (click on the title) and pity those poor people at Forbes. Will they ever amount to anything?
God Bless.
Saturday, January 30, 2010
Gots to read the whole article....
Greetings People.
I came across an article published by Rismedia (real estate news that claims to be "the leader in real estate news") with a huge title saying "Economic Optimism Reaches it's Highest Level". Sweet! No more recession, everything's honky dory (is honky still racist if it's used in this context?). Well, if you read the article it tells a very sun shiny story of how 335 executives were surveyed and how a gargantuan 1/3 of them thought that the worst of the recession was behind us. Squeeze me? Let's look at it.
First, 1/3 of the executives thought that "the worst of the recession was behind us". Thank goodness we get to keep the good part of the recession.
Second, 1/3? Only 1/3? 2/3s think we are still doomed.
People, do not get me wrong. This ray of light (very skinny ray of light) is good/ great. Things do seem to be happening. But, watch out where you're getting your info and make sure you know if they have an agenda, like trying to blow something up your nether land or trying to get you to drink "the economy's fine" kool-aid.
Read the report and see what you think by clicking the title.
God Bless.
I came across an article published by Rismedia (real estate news that claims to be "the leader in real estate news") with a huge title saying "Economic Optimism Reaches it's Highest Level". Sweet! No more recession, everything's honky dory (is honky still racist if it's used in this context?). Well, if you read the article it tells a very sun shiny story of how 335 executives were surveyed and how a gargantuan 1/3 of them thought that the worst of the recession was behind us. Squeeze me? Let's look at it.
First, 1/3 of the executives thought that "the worst of the recession was behind us". Thank goodness we get to keep the good part of the recession.
Second, 1/3? Only 1/3? 2/3s think we are still doomed.
People, do not get me wrong. This ray of light (very skinny ray of light) is good/ great. Things do seem to be happening. But, watch out where you're getting your info and make sure you know if they have an agenda, like trying to blow something up your nether land or trying to get you to drink "the economy's fine" kool-aid.
Read the report and see what you think by clicking the title.
God Bless.
Thursday, January 28, 2010
Obama talked for 1 1/2 hours and all I got was....
Hi People.
I haven't wrote (or written?) in a couple of days due to my new concoction of H1N1, swine flu, SARS, whooping cough and the boogey woogey flu. I am such a trail blazer. But, now I am back.
The President threw down his State of the Union speech last night and at the tail end of talking about how much better, and affordable, he's going to make education he said this about the real estate plan "That's why we're working to lift the value of a family's single largest investment -- their home. The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments. This year, we will step up refinancing so that homeowners can move into more affordable mortgages".
Then he immediately went into health reform. Now I know there are plenty of important things to talk about, but maybe he could have took another five minutes and went into it a little more. It's estimated that there will be 3 million plus foreclosures this year. His reply to that, we'll fix it.
Maybe I'm a little sensitive because the real estate world is where I work, eat and live.
He is a lovely speaker.
Click on the title to read the president's entire speech.
God Bless America.
I haven't wrote (or written?) in a couple of days due to my new concoction of H1N1, swine flu, SARS, whooping cough and the boogey woogey flu. I am such a trail blazer. But, now I am back.
The President threw down his State of the Union speech last night and at the tail end of talking about how much better, and affordable, he's going to make education he said this about the real estate plan "That's why we're working to lift the value of a family's single largest investment -- their home. The steps we took last year to shore up the housing market have allowed millions of Americans to take out new loans and save an average of $1,500 on mortgage payments. This year, we will step up refinancing so that homeowners can move into more affordable mortgages".
Then he immediately went into health reform. Now I know there are plenty of important things to talk about, but maybe he could have took another five minutes and went into it a little more. It's estimated that there will be 3 million plus foreclosures this year. His reply to that, we'll fix it.
Maybe I'm a little sensitive because the real estate world is where I work, eat and live.
He is a lovely speaker.
Click on the title to read the president's entire speech.
God Bless America.
Monday, January 25, 2010
Trial Re-Mod & You Being Kicked To The Curb
Hi People.
If you are one of the 450,000 people who are in the President's HAMP (Home Affordable Modification Program) program (redundant) you better make sure that all of your paper work is in. More importantly, you better make sure that your paper work is in and that the bank did not lose it (oh, it happens brother). Also, it wouldn't be a bad idea to make sure all of your payments are straight.
Companies that service the mortgages have until Jan. 31 to review all trial modifications that have been underway for several months. During the review period, servicers must determine whether borrowers have made all their payments and have handed in all the necessary paperwork. Those who haven't will get letters giving them 30 days to comply. The goal is to clean up the backlog. With that much cleaning going on there will undoubtedly be someone who was swept outside when they should have been left inside (couldn't think of a better "cleaning" analogy).
So, stay on your servicer. Make sure they have all of your documentation. Make sure they acknowledge that you have been making your payments on time. Try to get this in writing, or at least an email. These servicers/ banks are overwhelmed with short sales and re-modifications. The person working your file has another 150+ files that look just like yours. He is over worked and under paid and his boss is yelling at him and the home owner is yelling at him and his wife is leaving him and his son is on drugs and his daughter is dating a guy from some band. If he comes across a file that isn't right it goes to the bottom or even the trash. Make it easy on the poor bastard.
To read more about the good times a comin', click on the title.
God Bless.
If you are one of the 450,000 people who are in the President's HAMP (Home Affordable Modification Program) program (redundant) you better make sure that all of your paper work is in. More importantly, you better make sure that your paper work is in and that the bank did not lose it (oh, it happens brother). Also, it wouldn't be a bad idea to make sure all of your payments are straight.
Companies that service the mortgages have until Jan. 31 to review all trial modifications that have been underway for several months. During the review period, servicers must determine whether borrowers have made all their payments and have handed in all the necessary paperwork. Those who haven't will get letters giving them 30 days to comply. The goal is to clean up the backlog. With that much cleaning going on there will undoubtedly be someone who was swept outside when they should have been left inside (couldn't think of a better "cleaning" analogy).
So, stay on your servicer. Make sure they have all of your documentation. Make sure they acknowledge that you have been making your payments on time. Try to get this in writing, or at least an email. These servicers/ banks are overwhelmed with short sales and re-modifications. The person working your file has another 150+ files that look just like yours. He is over worked and under paid and his boss is yelling at him and the home owner is yelling at him and his wife is leaving him and his son is on drugs and his daughter is dating a guy from some band. If he comes across a file that isn't right it goes to the bottom or even the trash. Make it easy on the poor bastard.
To read more about the good times a comin', click on the title.
God Bless.
Friday, January 22, 2010
I'm not calling you "STUPID"
What up, People?
Today's message is really just some advice on how I would go about buying a home. Not telling anyone this is the only way or that you and your realtor are stupid if you don't think like me.
Write offers. No duh, right? The thing is, I come across so many buyers who want to check on the area or the schools or perform a seance before they put in an offer and end up losing out. Put the offer in first! You have a contingency period (usually between 10 & 17 days but not set in stone so it is negotiable) to check all of that out, it's called your "inspection contingency period" (catchy). This contingency allows you to perform inspections on the physical conditions of the house, the zoning for natural disasters (mainly earthquakes zones, fire zones, flood zones and any other biblical plague or curse), any permits on the property, rental restrictions (important if you're ever going to rent it out), any safety issues, area nuisances (ranges from airport noise to a next door neighbor who might be a little too nazi like), and anything else you can think of (anything without actually damaging the property. You can't open up a wall to make sure you like the way the wiring looks).
What about your deposit? It's safe as long as you cancel escrow (cancel on your offer to purchase the property) before your contingencies expire. Yes, that means if you do what is contractually correct and cancel before the contingency is up you will get your full deposit back. You don't even have to shake hands with the seller.
When do contingencies expire? When the contingency period is over AND you release your contingencies in writing. (?) You sign a form stating that you release your contingencies. Once that happens you either buy the property or forfeit your deposit.
The reason that i'm so hot on making offers first before you investigate anything (except that the price is acceptable) is you might lose out. If you like a property rest assured that someone else likes it too. That is the law of.... I don't know what it is the law of. But, I've seen it over and over and over again (no matter what the market is like) that when a buyer becomes interested in a home then at least someone else is interested in the home. If you do not move quickly two ugly things can happen: First, the property could be tied up by someone who wrote an offer sooner. And, unlike buyers, the seller does not have the luxury of cancelling if he recieves a beeter offer. Second, you could end up in a bidding war and either get beat out or paying more than you wanted. Both scenarios suck.
Once again, I'm not telling you how to do it, just how I would do it.
God Bless.
Today's message is really just some advice on how I would go about buying a home. Not telling anyone this is the only way or that you and your realtor are stupid if you don't think like me.
Write offers. No duh, right? The thing is, I come across so many buyers who want to check on the area or the schools or perform a seance before they put in an offer and end up losing out. Put the offer in first! You have a contingency period (usually between 10 & 17 days but not set in stone so it is negotiable) to check all of that out, it's called your "inspection contingency period" (catchy). This contingency allows you to perform inspections on the physical conditions of the house, the zoning for natural disasters (mainly earthquakes zones, fire zones, flood zones and any other biblical plague or curse), any permits on the property, rental restrictions (important if you're ever going to rent it out), any safety issues, area nuisances (ranges from airport noise to a next door neighbor who might be a little too nazi like), and anything else you can think of (anything without actually damaging the property. You can't open up a wall to make sure you like the way the wiring looks).
What about your deposit? It's safe as long as you cancel escrow (cancel on your offer to purchase the property) before your contingencies expire. Yes, that means if you do what is contractually correct and cancel before the contingency is up you will get your full deposit back. You don't even have to shake hands with the seller.
When do contingencies expire? When the contingency period is over AND you release your contingencies in writing. (?) You sign a form stating that you release your contingencies. Once that happens you either buy the property or forfeit your deposit.
The reason that i'm so hot on making offers first before you investigate anything (except that the price is acceptable) is you might lose out. If you like a property rest assured that someone else likes it too. That is the law of.... I don't know what it is the law of. But, I've seen it over and over and over again (no matter what the market is like) that when a buyer becomes interested in a home then at least someone else is interested in the home. If you do not move quickly two ugly things can happen: First, the property could be tied up by someone who wrote an offer sooner. And, unlike buyers, the seller does not have the luxury of cancelling if he recieves a beeter offer. Second, you could end up in a bidding war and either get beat out or paying more than you wanted. Both scenarios suck.
Once again, I'm not telling you how to do it, just how I would do it.
God Bless.
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