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No BS Real Estate Indicators and Commentary – January 2010

The media said 2009 ended like a lamb.  The data was contradictory to that opinion.  December was a good month.  The media is also saying 2010 started like a lamb.    On this one, they are relatively correct.  Sales indeed showed a sharp decline in January (Sacramento single family homes; see Indicator #1 below).  As of right now, they are even lower in February.  Since March 2008, the number of closed sales has been consistenly over 1400 per month. 

The supply is limited to contingent short sales and REO fixers.  This is how booms start though.  Everything is quiet in the eye of the storm.  Spring has sprung and buyers are awakening.  If you are thinking of selling, get it on the market soon.  Call me for help.  If you are buying, yes, I can help you too. 

The charts below reflect over 10 years of local data collection, charting and trending.  The commentary is relevant to this information and what the author sees in the trenches.  No single piece of data can tell the whole story nor do these specific indicators predict the future. Remember, the “momentum” of a trend is important in understanding the force and direction of an underlying data element. A commodity trader watches momentum indicators to more accurately (but still with no guarantees) foretell a future data point. These are million-dollar decisions so momentum is important. 

The charting doesn’t end here.  Over 10 years of median sales price data has been collected and charted for over 40 local zip codes (see my Communities web page coming soon).  As you know, real estate is local and it’s hard to find data more granular than a zip code.  

Major Indicator #1 – Sales

Since April 2008 the momentum of Sales has been positive.  In January it crossed back into negative territory.  This would trigger a “SELL” action when a price is being charted.  In the case of this data element, it depicts the typical valley that “should” occur in a real estate cycle.  You can see the “winter dip” occur between December and February each year.  But things are thawing and bears are hungry.

Opinion:  Look for sales to decrease in February and then increase moderately through the spring and summer.  Nobody is sure what the rules will be and my bet is that Congress (should be written with a small “c” in Crayon font) will extend the tax credit for buyers, in some shape or form.  There are always hungry bears.

Major Indicator #2 – REO Sales

These are also known as “bank-owned” and “foreclosed” properties.  When auction demands are not met when offered on the courthouse steps, these homes revert to the owning/servicing bank to sell on the open market.  These have always occurred but not in the numbers we have seen since 2006. 

Since July 2009, REO sales have been less than half the number of Sales. The winter and spring before that, REOs were over 70% of the sales volume.  Banks are simply not foreclosing.  Whether due to accounting practices or “deer in the headlights” syndrome, the movement of product through the pipeline has stalled.  Now the supply is low except for contingent short sales.  And those can be a waste of time.  The momentum is negative.  We hope the REO Sales momentum increases — it would signify the availability of supply. 

Opinion:  Look for REO sales to stay low until the banks understand the new rules.  And then can understand the coming changes to those new rules.  

Major Indicator #3a – Median Sales Price (Sac Cnty)

The median price for all of Sacramento County has shown a slight improvement — but now retreating to the Summer 2001 price levels.  Momentum is serious about getting back to positive territory. 

Opinion:  The area price will decrease slightly while some high-priced areas/zipcodes will see a material reduction in comparable sales. 

Major Indicator #3b – Median Sales Price (ED Cnty)

The choppiness of this El Dorado County chart really just signifies the variation of homes, prices, and supply of sales comparables.  Even the momentum cannot decide which direction to go. 

Opinion:  This general price will decrease slightly due to the high-end which will experience most of the impact in 2010.

Major Indicator #3c – Median Sales Price (PL Cnty)

The slide of prices in Placer has been slower and smoother.  There also may be some corrupting forces at the County and City levels which we don’t see.  For some, the local pride is too sensitive and they won’t accept their just deserts.   Much of Whitney Ranch is entering the “short sale” zone.  This will help supply for some.

Opinion:  The price here will also decline to the squeeze at the higher end of home prices.

Major Indicator #3 – Median Sales Price (All)

This chart shows the comparison of the 3 counties.   It doesn’t include the momentum indicators but it’s interesting to see the responsiveness of Sacramento’s price changes compared to the other 2 counties.

Major Indicator #4 – Notices of Default (NODs)

Notices of Default have hit a major stoppage in the pipeline.  The indicator that is missing is “borrowers in distress”.  That would be a difficult piece of information to collect.

Opinion:  The number of NODs will increase as will Auctions and foreclosures.

Major Indicator #5 – New Home Permits

If they are still building, the homes are smaller and more sensibly designed.  Gone (temporarily?) are the massive walk-in closets and master bathrooms.  Gone are the 4-car garages and bonus rooms.  We have entered and exited the “McMansion Era”.  Some builders died before they could exit.

Opinion:  Population increases generally require more housing.  It only seems we have enough. 

Major Indicator #6 – Mortgage Rate

Free money!!!  If you can get a loan, don’t miss this window of opportunity.  But rules have changed so you better know your buying power and options.

Opinion:  Rates will increase slightly over the year although other lending restrictions will corrupt the market making the rate change less important.  This cannot last for much longer.  China will inevitably call us on it.

Major Indicator #7 – Inventory

I’ve added another piece of information to this chart:  “Active Short Contingent” properties are akin to a Pending status with regard to how Realtors treat them.   If it’s “contingent”, Realtors and buyers know the home has a soft deal with a prospective purchaser.  I think MetroList should make it a “Pending Contingent” status.  It will make the numbers stop lying. 

Opinion:  Inventory will increase but so will Active Short Contingent listings.  So who knows!

Major Indicator #8 – Months’ Inventory

The Inventory is over-stated so the true turn-over rate (Months’ Inventory) is a little different than depicted below.  Since this depicts the months required to sell all inventory (at the average Days on Market), this too is over-stated.  Mitigating that variance is the fact that many of these “active” listings are actually “pending contingent” and can remain on the market for many months without a bank approval or change in status.  In other words, this indicator is low but not necessarily 3.3 months.

Opinion:  See opinion on “7 – Inventory” above.

Major Indicator #9 – Short Sales

This is a new indicator showing how many Short Sales were successfully closed.  The momentum cannot be charted until at least 12 months of raw data have been collected. 

Opinion:  This number will stay relatively flat, with a slight increase.  Many banks have already concluded they will not entertain short sale offers.  Some borrowers purchased mortgage insurance with their loans which means the lender doesn’t care if they foreclose (insurance pays them about 80% of loan value). 

Major Indicator #10 – Swing Indicator

This is my favorite indicator since it shows the oscillation of the market — much like a EKG machine.  Let’s hope the market doesn’t flatline.  Except for January ‘09, Up-Ticks outpaced Down-Ticks.  For this last month, 41 zipcodes had a momentum up-tick. 

Opinion:  The up-ticks will retreat to a lower level.  This is a cycle that we cannot and should not fight.

These charts depict the momentum of changes in the underlying raw data to help forecast direction. These are not a guarantee of future direction but aid in the prediction of cause/affect in the various market forces. No single indicator tells the whole story. Also charted is the raw data itself. For an explanation or for a monthly subscription to this periodic report, call or email Jay Emerson (916-517-9606, Jay@JayEmerson.com). The data is deemed reliable but not guaranteed. Sources include DataQuick, CBIA, Sac MetroList, and other public information.

Contact me for more details and to get an edge in real estate!

Jay Emerson, DRE Broker #01788488
Realty Executives Galster Group
5006 Sunrise Blvd, Ste 202
Fair Oaks, CA 95628
(916) 517-9606
Fax (916) 966-8706

Turn on any financial news program and at some point you’ll hear the experts extolling the virtues of diversification. Real estate, even through the market downturn, has long been considered a conservative, long-term strategy to growing wealth.

In fact, that very downturn has created a historic buying opportunity for potential homebuyers and investors alike. The combination of lower home prices across America and historically low mortgage rates, two essential factors that usually don’t trend in the same direction, have triggered a buyer’s market in many areas of the country. For real estate investors who want to rent their properties, this can make the difference in achieving positive cash flow sooner or right off the bat.

While some seasoned real estate investors make it look easy, to be successful, beginners should follow some basic principles.

Learn all you can. Before committing your cash, you should have a fundamental understanding of real estate. For example, be aware that, in general, investment properties are not liquid investments. Barring exceptional circumstances, real estate does not sell at a moment’s notice. It could take days or months to sell a property, depending on the strength of the market in a particular region.

Consider cash flow. You’ll need to have enough capital on hand to cover any short-term losses due to vacancies between tenants.

Start small. Look into buying a condominium, single-family home or a duplex. Leave large apartment buildings and commercial properties to the pros.

Inquire at the local Chamber of Commerce about companies relocating into or out of the area. Company movement is one indicator of demand for rental and/or office space.

Find a property that will be in demand. Look for a moderately priced home with three or four bedrooms, two bathrooms, and a garage that sits on a quiet street.

Research the property. The most common way first-time investors lose is by failing to investigate a property thoroughly. Look beyond the front door. Investigate the reputation of the school district, the crime rate, and plans for expanding a nearby highway or developing vacant land. Ask a local real estate professional about the area, its history, and how fast (or slow) properties are moving.

Inspect the home you’re considering for signs of water damage, such as stains on the ceiling and crinkling or gathering wallpaper; open and close every door and window; and check all electrical sockets by plugging in an appliance. Get an independent home inspection, roof inspection and termite inspection. Unexpected repair costs can eat away your cash flow. Because even the best inspection can’t always predict problems, try to set aside some of the rental income for unexpected repairs.

Spend time driving the streets of the neighborhood noting the condition of other properties. Are lawns maintained? Are roofs in good shape? Are homes kept up?
Be ready to make fixes quickly and respond to the renter’s needs. If you’re not prepared to be a hands-on landlord, consider hiring a property management firm.

See your tax advisor for related planning and laws that can affect your investment decisions.

Remember, investing in a property is much different than living in one, and while emotion and attachment can be prime motivators when it comes to homes, it is return on investment that counts when investing in real estate.

clear skies,

_doug reynolds

When a homeowner sells their property “short,”  that amount of money that was forgiven by the lender is considered income and typically taxed.   Well, currently the Federal Government is not taxing that money to the short seller but the state of California is.  On Monday, Legislation to prevent the state from taxing forgiven mortgage debt cleared the state Assembly.  The legislation could potentially offer tax relief to thousands of Californians who sold their home through short sale in 2009.  The measure passed 47-27 and is now being sent to Governor Schwarzenegger.

Schwarzenegger’s office signaled later that he may veto the measure. 

Currently, the fed’s tax relief is in place through 2012.  California was forgiving the “income” in 2007 and 2008 but since falling on major budget deficits, the state has since been taxing the amount of money the seller/homeowner was forgiven.

Doug’s take: I can definitely see both sides of this one.  It is a huge help for struggling homeowners that have to sell short to get the tax break.  I know, i have many short sale clients currently and in the past.  They all tell me how tough it is going to be to pay that tax on the forgiven amount.  It would be a much needed break for those in the difficult position of losing their home and have to do a short sale.

On the other hand, the state is in financial ruin as well.  The state needs all the tax money it can get.  We’ve all been effected by the deficit.

My suggestion is meeting in the middle and only taxing half as much as would normally be taxed.  It would be a win-win in my opinion but then again politics are not that easy.  We’ll just have to wait and see how it plays out.  I know my past short sale clients will be anxiously waiting.

If you have any questions about selling your home as a short sale, i’m here to help.  Give me a call or email and i’ll put my short sale experience to work for you.

clear skies,

doug reynolds

One of my Sacramento short sales is on the market after previously selling as a short sale, meaning this is the second time around for that home. (It wasn’t my previous sale, in case you’re curious.) That’s because we’ve had two big downturn waves in Sacramento. There was the beginning, in August of 2005, when the phones stopped ringing. But the second wave of price declines, which nobody is talking about, hit again at the end of 2007, when people figured the market was finished falling — i.e., because prices could not go any lower — yet, prices continued to fall.

I was wondering why none of the sellers I helped to do a short sale in 2006 or 2007 was buying again after a short sale in 2008 or 2009. I imagine this is why. They’re a little gun shy to enter the marketplace. These are people who were probably promised they could refinance or sell at a huge profit, and it didn’t work out. They had the rug pulled out from under them.

To confirm my suspicions, I turned to Trendgraphix to see if the data mirrored my thoughts. Sure enough, you can see it in the square-foot prices. The chart above shows the average square-foot-price in Sacramento from February of 2005 through February of 2010.

Laid out below is the data table from the above chart. The square-foot-price in July of 2005 was $230. By the end of 2007, it appeared to level a bit. Then wham, the rollercoaster plunged. The square-foot price fell from $210 in August of 2007 to $162 in January of 2008. As of last month, that price per-square-foot has dipped to $120.

Just from my own experiences as a Sacramento short sale agent, I could feel the market beginning to recover about this time last year. It’s still a little wobbily, but it remains fairly constant. Still, if I’m expecting my former short sale sellers to buy another home shortly, I don’t think it’s going to happen for a while. I suspect they are sitting out this perfect storm.

—

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. DRE License # 00697006.

The Short Sale Savior, by Elizabeth Weintraub, available through bookstores everywhere and 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.

Those short sale flipper investors are really getting active now. As a Sacramento short sale agent, I have been receiving a lot of calls lately from investors and their agents asking if they can lowball some of my short sale listings. It’s not that I have anything against a guy trying to make a buck. Buy low, sell high is the name of the game in real estate. But I do object when those offers affect my sellers’ chances of closing escrow.

My sellers don’t hire me to make money for investors. They hire me to protect their interests, get them the highest price possible and to close the short sale in a timely manner.

A new twist that seems to be developing among short sale flippers is to submit an offer at list price with the buyer paying all of the closing costs. It is customary for the seller / short sale bank to pay those fees.  One might, at first glance, wonder what’s wrong with that; full-price offer and the short sale bank pays no closing costs except commission. I’ll tell you. When the buyer pays title and escrow fees, the buyer chooses the title and escrow company. Generally, the escrow officer is a person the buyer knows, and this person may or may not share certain information about the transaction with the listing agent. It means the buyer controls the transaction.

Why would a buyer need to control a transaction? Because there might be something going on that the buyer doesn’t want the listing agent to know. It could be anything. It could be the buyer is planning to do a double escrow, that is, turn around and resell the property to an end buyer, and close both escrows concurrently without disclosing this plan to the seller. Many short sale banks prohibit resale within a certain number of days, and they try to hold the parties accountable. If a buyer agrees not to sell the property within a particular time period and instead immediately sells it, that action might be considered mortgage fraud.

It could also mean the buyer has signed an all-cash offer but is actually borrowing the funds from a private source, which may or may not be qualified to make such a loan. If the loan doesn’t fund, the escrow doesn’t close. Or, the buyer may be counting on transferring funds from escrow #2 to close escrow #1. So, if escrow #2 falls out, so does escrow #1. The seller has a right to know if the purchase is contingent upon resale, but often those intentions are not disclosed.

The title companies I work with in Sacramento typically will not open a short sale escrow on behalf of strangers. The liability is too great. The potential for fraud is too high. They work with me because they trust that I am ethical and are assured that I won’t any allow hanky-panky to go on in my transactions if I can help it. I advise my sellers to just say no to those short sale flippers.

Photo: Big Stock Photo

As the saying goes, real estate is all about location, location, location. And it really is true. Real Estate in the East Bay area of San Francisco has changed quite a bit in the last few months and the perception and reality of the current real estate market do not always coincide.

There is still a perception that this is a buyers market and buyers are holding all the cards. What I am finding is this is not totally true. Granted prices are down still. But inventory has taken a precipitous downturn and right now the months of inventory in Alameda County is a about 2.9 months worth. Typically 3 months of inventory indicates a sellers market. That’s right a seller market. Who would have thought?

Now I am not saying that we are going back to multiple offers with buyers offering $100,000 over asking. This is not the current reality in terms of lending practices. But we are back in multiple offers and buyers are offering over asking. And this I can tell you from my own experience and from what I am seeing in my local market. In fact I am working with buyers who have been consistently out-bid with multiple offers.

Why is this happening?

Well if you look at the graph above you will see the massive reduction in the number of active listings. A lot of this has to do with foreclosures. In 2008 when the number of foreclosures on the market reached their height, the amount of inventory was staggering. This was the time to buy when inventory was high and most buyers not willing to take the plunge. Now with a reduction in the number of foreclosures, this has helped to cap the volume of homes on the market.

Will this trend continue?

I personally believe yes. Banks deep down are looking at their bottom line and are in the business of making money. If you are seeing contracts coming in with better terms and now even see multiple offers with offer prices over the asking price, would you want to flood the market with inventory and re live the times when you were thankful for a buyer to come to the table?

Also although the Obama Administration’s idea to encourage short sales is flawed, banks again are determining that short sales can help off load properties for the most money possible. With a short sale, the properties tend to not have the same level of deferred maintenance. And because the home owners are often still living there, things like the plumbing, wiring and kitchens tend to stay intact which helps to keep the pricing of the property more favorable in the banks favor.

The reality is there is still quite a bit of uncertainty out there regarding the economy and employment. This coupled with a lot of hurdles confronting home owners who bought at the height of the market means that yes there will still be foreclosures. But just like when the market started its downturn and those out there insisted that it wasn’t happening there are those out there that also say now that things are not getting any better.

Its not all good out there now, but at least for the San Francisco East Bay, its not all bad either.

IRS issues new guidelines on obtaining home buyer tax credits
The Internal Revenue Service (IRS) recently issued new guidelines and clarified documentation that taxpayers must submit to successfully obtain the federal tax credit for home buyers.

MAKING SENSE OF THE STORY FOR CONSUMERS

• The federal tax credit for home buyers was extended and expanded late last year.  Qualified first-time buyers may be eligible to receive a tax credit of up to $8,000 on homes purchased before April 30, 2010.  Repeat buyers may be eligible for a tax credit of up to $6,500.
• To receive the tax credit, home buyers must comply with the IRS’s documentation requirements, including a fully executed IRS Form 5405.  On the form, which is available on the IRS’s Web site, taxpayers provide information supporting their claim of eligibility, such as income and home purchase date.
• The IRS also requires home buyers to submit a copy of the closing or settlement statement that proves the transaction took place.  The IRS previously said that the statement should show “all parties’ names and signatures, property address, sales price, and date of purchase.”  However, since closing or settlement statements vary by state, and in some cases the form does not include both the seller’s and buyer’s signatures, the IRS has revised this requirement.  As long as the closing or settlement statement conforms to prevailing local practices, the IRS will accept it.
• One stipulation for repeat buyers is they must provide documentation they lived in their former property for a consecutive five years out of the previous eight years.  Accepted documentation may include property tax records, hazard insurance records, or copies of annual mortgage interest statements filed with their federal taxes.

clear skies,

doug reynolds

The last time I won a third-place prize, I was probably about eight. Somewhere, I have an old newspaper. My mother was an editor in the 1950s at the Circulating Pines, which was a local newspaper in a suburb of Minneapolis. She put a story and a photo of my brother and me on the front page. I am holding in my lap a long-haired black cat named Spittsboo, sitting on the front steps of our childhood home in Circle Pines, Minnesota, next to my brother. He is holding a salamander on his shoulder.

I placed third in a pet contest. Well, it was actually my cat, not me, who placed third in a division for longest-haired cat. My cat didn’t have to do anything except sit there to win. My brother’s salamander won first place in the reptile division. That lizard didn’t have to do back flips or jump through a flaming hoop of fire to win, either. I’m pretty sure the thing just sat on my brother’s shoulder.

I mention this because yesterday I was given an office award at my office meeting for ranking among the top 3 agents in sales for 2009. My office in Midtown Sacramento has 80 or 90-some real estate agents. I didn’t enter this contest. It’s something that Lyon Real Estate does. It recognizes its top producers every year. My sales production generally ranks among the top 15 agents in my office — some kind of benchmark Lyon uses — but since I don’t rate myself by comparing myself to other agents, I never really paid much attention to which agent wins what award.

So, it was a surprise when my name was announced and I was handed the award. I considered not writing about it because lots of agents in my office and elsewhere in Sacramento did not fare very well last year. It was a down year for many real estate agents. The market in 2009, like the past 4 years, was dominated by foreclosures, short sales, investors and first-time home buyers, which left a lot of agents out in the cold. The Internet also pushed some agents out of the business because they refused to embrace online technology.

While it is painful to see agents who are suffering, I’ve decided that my empathy for them should not overshadow the fact I enjoyed an outstanding year in 2009. It’s quite an honor to receive such an award. On the other hand, I didn’t compete for it or enter a contest. I just did my job, which is primarily selling homes in Land Park and representing sellers of Sacramento short sales.

This afternoon, Lyon Real Estate is hosting its Annual Awards Ceremony at the Radisson. The theme is . . . dum, dum, dum . . . The Winter Olympics. My office is supposed to represent Cross Country Skiing. I guess I could wear a mink hat and go as a spectator. No, on second thought, I should probably wear a wool hat and some sort of spandexy outfit, which I don’t have in my wardrobe. I’m likely to win something at this awards ceremony, but it’s been hush-hush, like our office awards. I don’t want to appear ungrateful, but I am not planning to dress up like an Olympic athlete. But hey, it doesn’t mean that I don’t support those who do or that I am not a team player.

Hmmm, on reflection . . . maybe it does.

Oh, well. Rebels make good real estate agents, don’t you think? We buck the system. Write our own rules. We’re independent and don’t blend well into the shadows.

After the awards ceremony, I am meeting a buyer who is closing on a home in Land Park. We’re going to sign loan docs at my office and complete our final walk-through. At least my hair won’t be messed up from wearing a wool hat.

Photo: Adam Weintraub

—

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. DRE License # 00697006.

The Short Sale Savior, by Elizabeth Weintraub, available through bookstores everywhere and 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.

Much of my work as a Sacramento short sale agent is handled through email. So, I almost had a heart attack when I turned on my computer this morning. My start-up programs loaded and I didn’t have any emails. For a brief second, my heart about exploded. My immediate thought was my computer had malfunctioned, maybe my hard drive had been erased. Of course, nothing of the sort happened. I simply had too many emails coming in for the computer to immediately bring them up. I wasn’t patient enough.

Many of those emails are one-liners that say: Thank you. Or will do. While it’s nice to receive acknowledgments, they aren’t always necessary, and those emails certainly don’t require a response; yet, I am guilty of doing the same thing. It depends on, though, whom the email is from. If it’s from clients, I do want them to know that I have received their documents. But I don’t try to clog up my associates’ or vendors’ email in-boxes. I imagine they get as much email as I do.

I talk all day with my short sale negotiator via email. If it’s a particularly difficult short sale, and which ones aren’t, these days, I’ll call her, or she’ll stop what she’s doing and pick up the phone to call me. This woman is a law school graduate and a real estate agent. A darn fine real estate agent, too. She started negotiating short sales a few years ago and has become an expert negotiator. Due to the volume of Sacramento short sales that I handle, I share some of my short sales with this agent and pay her half of my commission, too. She’s worth every penny.

There are other short sale negotiators whom I could hire in Sacramento — many who charge way less — but many of those so-called third party negotiators do not have a real estate license. Therefore, they are breaking the law when they negotiate short sales. I would never in a million years want to place my short sale sellers in that position. I don’t even go there. Besides, I want to provide my clients with superior service. I’ve heard too many horror stories from other Sacramento short sale agents who have hired these vendors.

For certain types of short sales, I tackle a handful myself. Especially some Bank of America short sales, because I’ve been working with Bank of America for years and understand its goofy systems. Since they’ve switched to Equator, the short sale process has been easier and faster. I also love, love, love a Wachovia short sale because they are so straight forward and simple, which few short sales are lately. Wachovia also gives my sellers cash bonuses.

Moreover, I also work with Litchney Law Firm on short sales. Particularly those that involve hard-money loans and cash-out refinances. The lawyers who work for Litchney Law Firm are methodical strategists and expert negotiators. Those lawyers are known for removing further collection rights verbiage from short sale approval letters and, in many ways, are miracle workers. They do things I can’t. Sellers pay for Litchney Law Firm’s services separately, and there are no referral fees passing between us, even when Litchney Law Firm refers clients to me. It’s a clean association.

A lawyer doesn’t need a real estate license to negotiate a short sale. And dare I say, a lawyer never clogs up my inbox with an email that says, “thank you.” They’re much wordier with their thanks than that.

So, if your short sale isn’t moving forward, I suggest you take a look at who is negotiating your sale. Is it a third-party vendor that runs a short sale mill by volume, without personal attention to each file? Is it an agent without any experience? An agent who is too swamped with business to do the job right? Has your short sale dropped into a black hole never again to see the light of day? Because my Sacramento short sales tend to close, regardless of whether I personally do them, my associate does or Litchney. I’ve got a great team. I mean, am I lucky or what?

Photo: Big Stock Photo

—

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. DRE License # 00697006.

The Short Sale Savior, by Elizabeth Weintraub, available through bookstores everywhere and 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.

It’s great to wake up in the morning and realize all of your hard work really does pay off!
Yesterday we received 3 short sale approvals…of course, we had been working on all of these listings for over 3 months! And a lot of hard work, persistance and patience finally has paid off. Two of these short sales were with Bank of America and on the new Equator system and one is with Aurora. Of course, the Aurora short sale took the least amount of time. The great thing was we still have buyers! This is huge, as so many times the buyers have walked by the time a short sale has been negotiated with the bank. The key to keeping the buyers engaged in the process seems to be great communication with the selling agent. We keep the buyer’s agents updated each and every week while we are negotiating with the banks, even if we have to tell them there has been no change. A conversation with the agent asking them to pass along the information to their buyers seems to keep everyone on te same page and it’s critical.

Is the Bank of America Equator system helping? It seems to me that it is. Although it’s still a process, Bank of America is now not losing everything we send to them as it is uploaded onto the system. We can see on the system what is going on. Once we had a negotiator assigned to the property instead of the general negotiator it took approximately 25 days to get an answer back…that’s not bad considering Bank of America was taking about 3 months for this process before.

Now we move on to the closing process on all 3 of these transactions….our work is not done. Now we need to get through the inspections, appraisals, buyer’s loan process and then close. Still work to be done, but I can breathe a sigh of relief now that we have our short sale approvals!

For more information on Short Sales

If you are a seller and wish to contact us for a FREE consultation regarding your options or a possible short sale on your home, please call us at (916) 230-0371 or send email to Lori@ModeandDurhaM.com.

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Lori Mode of Keller Williams Realty, Elk Grove
Certified Distressed Property Expert
DRE License #00935148
www.AllElkGroveHomes.com
(916) 230-0371