“In a real estate man’s eye”

“In a real estate man’s eye, the most valuable part of the city is where he has a house to sell… I find this quote to be very true.. if you have a good agent.  The purpose of your agent is to get your house sold so you can move on with your life.  Therefore the agent must make your home and your needs the number one priority. Finding a good agent is like finding a needle in a haystack… they all say the same thing. “I am educated, I have skills, I can help” but that is not always the case. Choosing an agent can be a grueling task. Who is qualified, who has your best interest at heart, who can make your life easier. Not many agents I know pose those qualities. Here are a few questions to ask when searching for your agent.

1. How can you make my short sale as painless as possible?
2. How can you help me?
3. What are your goals for my short sale?
4. What makes you a better agent then the rest?
5. What is your track record?

Those 5 basic questions will weed out the good from the bad.  When in doubt always trust your inner voice and that gut instinct.

Insite from Nicole Pitman of www.kjhomefinder.com

nicole@kjhomefinder.com

Why some short sales do not close

Why some short sales do not close

I think the main reason that some short sales do not close is that the price evaluations are somewhat skewed when the short selling lender hires a third party vendor to do their evaluations.  Most of the evaluations are done by a BPO (Broker Price Opinion) agent and not an actual appraiser.  This can cause some devastating consequences to a seller in terms of getting the short sale approved and the end result of their exit strategy.

In 2009 I went out to meet a BPO agent at a property that I had listed.  Normally I do not meet BPO agents at properties because I am a BPO agent myself and do not care to be influenced by another agent.  I felt it was important to meet the agent on this particular property because it was a “knock down” property and the property was literally falling down.  When I arrived at the property I was met by a 16 year old kid with a camera and not the actual BPO agent. I explained to the kid that he needed to inform the evaluating realtor of all the defects and let them know the property really needed to be valued as a “land value” sale. When we got the BPO evaluation back the property was valued $100k over market and the house ultimately when into foreclosure.  Most sellers after being in this situation will blame their agent.  I have many more stories just like this one and it really is a shame.

It is my hopes that we will be able to see some kind of quality control measures on BPO’s.  Keeping up with the trends in the short sale market place I found that Bank of America will be adding a “Valuation Dispute Tool” in Equator. This new tool is expected to release in April of 2012. I am looking forward to seeing how it works.

For more information call Brian Kaley at 720-276-2553 or visit www.kjhomefinder.com

Short Sale Colorado

Short Sales and The Condo Bubble

The Trouble with Townhomes and Condos in Today’s Market

 

We all know that today’s real estate market is struggling, as the correction of values after the bubble burst plods onward, the market sheds value, and the banks take their losses. Many homes can be tough to sell, as buyer demand is not as strong as in years past.

 

Townhomes and Condominiums can be even harder to sell than regular houses.

 

Why?

 

They are still great homes, to be sure, and there is still a demand for them from people in the marketplace that want a lower-maintenance lifestyle. There are, however, a few reasons why they are struggling in the marketplace-

 

1) Homeowners Association Dues- While real estate prices have dropped across the board, HOA fees have not. They have escalated as the cost of services inflate without regard to the real estate market. This means that if a townhome was worth $100,000 and the HOA was $200 a month, in today’s market the value may have dropped to $60,000, yet the HOA dues are still $200 a month. It’s true that the home is now more affordable than it was at 100K, but the HOA dues seem disproportionately high, and act as a deterrent for buyers who are watching every penny, and are very sensitive to monthly expenses.

 

2) Owner Occupancy- When a complex has more renters than homeowners living in the units, it changes the outlook for the complex. FHA, VA, and many conventional loans will NOT make or insure loans in a complex with too many renters. The reason, it would seem, is that the loans could be more likely to become losses, because an abundance of renters can cause significant decline in the quality of the complex. Unfortunately, once it crosses this 50/50 mark, it rarely comes back, because so many buyers, especially first time buyers, rely on FHA and VA loans to buy their first home (often a nice affordable condo) and these buyers are not able to get financing to buy in these complexes, meaning that for the most part, only investors will be able to buy the units, and of course, they would become more and more rentals. This can cause values to decline, as demand declines, and conditions worsen.

 

3) HOA Delinquencies- If too many units are in arrears on their HOA payments, it can cause the whole complex to disqualify for almost all normal financing, including FHA, VA, and Conventional products. Understandably, the lenders don’t want to make loans in a complex where the HOA is in serious financial distress… but it is difficult to remedy in a recessed economy, as people struggle to make ends meet. Of course, the HOA may even have to raise overall dues to cover their losses, accelerating the problem.

 

SOLUTIONS-

 

The premier solution I have always hoped for is that FHA and VA, instead of refusing to make or insure loans in these complexes… would instead give INCENTIVES to people who would buy the homes to personally live in, to encourage them to buy! This would bring many complexes “back from the dead” so to speak, and would improve the owner-occupancy rate and the overall value of the complex, thereby improving the risk factor for the lenders as well!!  I have attempted contact with the Federal Housing Association, to implore them to consider my logic, but have yet to have a breakthrough there.

 

Homeowner Associations would do well to fight hard to keep the dues current with the residents, and the costs down! If the homeowners could even agree to pitch in around the complex, it could keep maintenance costs down, and prevent fee increases, which directly diminish property values.

 

 

What this means for people who own townhomes and condos that paid higher prices during the bubble, is that there are many who are ‘underwater’, and need our help. We are well-versed in the art of short-selling these properties, and we offer a high level of service for those who need to get out from under a too-high mortgage. We are especially good at problem solving the different issues that can become obstacles in successfully selling and closing short-sale condos and townhomes.

 

 

What this means for people who are considering buying a condo or townhome- whether to live in or rent- is that there are some AMAZING deals out there to be had. Many properties are so inexpensive in these complexes that the combination of a low price and awesome interest rates means that paying the HOA won’t hurt so bad… and that many of them are so affordable, you have a much better shot and paying them off! It’s a lot easier to pay off a $40,000 condo than it is a $200,000 house. These will be excellent rentals in future years, and we expect to see a strong rebound in their values, as the price cycle of real estate swings back upward, as it historically does.

 

Condos and Townhomes are EXCELLENT bargains right now!

 

We consistently have a strong inventory of listings available for condos and townhomes, because we are darn good at getting people out, that need out… and getting new buyers in at great prices… and the losses get stuck with the bank, not the consumer. Their loss is your gain!

 

Call us today and get the answers you need!!

 

Sam Solomon of: 

KEY CONCEPTS LLC

 (303) 995-5440

 

Short Sales and Winterization

Winter is in the air and for many agents it means its that time again… Winterization time! Now for many, this word is a forbidden scary situation due to the many things that could possibly happen, your cute little love nest for sale can become an ice palace perfect for an Eskimo. Your castle in the mountains will become the house that mold built. However there is hope with ensuring these three  easy steps are taken you too can become a winterization expert!

Step one: Protecting you and your company from the big bad bank! Photos required for your protection

1. Wint sticker on front door of the property and on all fixtures
2. Pink Glycol being poured down all drains and toilets in house blue tape across sinks
3. Picture of water being turned off
4. Pressure gage holding 35 psi in pipes
5. Picture of boiler or hot water heater being drained
6. Pipes being blown out
7. Water meter being removed (except in states where law prohibits)

Step two: Hobos and homeless are a national problem!

1. Check your properties on a weekly basis, as homelessness spreads, vacant homes become targets. If your unwelcomed house guest has used the toilets your wint has been compromised.. time to start all over.
2. If your home gets an unwelcomed guest several states enforce squatters rights (see http://definitions.uslegal.com/s/squatters-rights/)  this then requires eviction.
3. If your property has been vandalized or corrupted in any way contact your local law enforcement immediately so the bank does not hold you responsible.
4. Usually if you have squatters your going to have vandalism, alert the bank and owners immediately the most common vandalism is the stripping of the copper from the piping for money. Holes in walls, feces on floor etc vacant homes can become a nightmare. Keep your property safe by keeping electric on, make sure it looks like someone lives there.. pick up papers and old mail. Those are a few tell tell signs a home is vacant.

Step 3:  Always prepare for the worst and hope for the best. Winter doesn’t have to be a bad if you follow the 2 easy steps above you can rise above the chaos, sit back enjoy some hot chocolate and know your properties are safe and sound.

By Nicole Rickardson- Key Concepts

Another Year Another Short Sale Program

Who gets involved when it comes to solving the housing crisis?  ANSWER: people who do not know how to solve it!  I have been doing short sales as long as I can remember, but now it seems like everyone is the expert.  Yikes.

So, the government gets involved, but the banks are still not getting it, right.  Let’s face it every year we get another proposed solution to a continuing problem, but this solution is only available for the few who qualify.  So the truth is that the government cannot force banks to lose money and take short sales and the government programs only apply to 5-10% of the homeowners in distress.  

I think the banks should higher real estate agents to process real estate short sales instead of hiring people with no real estate background and possibly not even have a mortgage (Loss mitigation dept).

I also think that agents who practice short sales should have held a license for 2 or more years or work under someone has been doing short sales for 2 or more years.  There are some little changes that will make huge differences going forward.  By shooting in the dark we are bound to hit something, but turn the light on the situation and we won’t shoot ourselves in the foot.

Thoughts?

Colorado Springs Short Sale Expert

Diane Frey of Colorado Springs

I am a Colorado native and have lived in the Colorado Springs area since 1969, so I know the area real well.  I attended the University of Colorado at Colorado Springs.   I have worked for 20+ years as a financial advisor for a large fortune 500 financial company here in Colorado Springs.  I worked in the wealth preservation, trust law and elder law for the Freeman Law firm here in Colorado Springs.  My background in these areas along with my real estate knowledge has helped many residents in the Colorado Springs overcome foreclosure.  Whatever your real estate situation, I am just a phone call away.

Colorado Springs Short Sale Expert. She has a background in sales, finance, and legal office.

Associate Broker- Real Estate Agent
Falcon, Colorado Springs Short Sales Specialist
Serving Colorado Springs, Pueblo, and Pikes Peak Region

www.kjhomefinder.com

Bank of America Short Sales Colorado

In November of 2009 Bank of America launched a new platform called Equator.  It is still only about 3-4 months old and they are working the bugs out as short sales are being processed almost like test dummies.  Their goal is to move from a 71% approval rate to an 85% approval rate.  I am not sure they are even at a 71% approval rate, but that is what their records indicate.

Bank of America has 59,000,000 million customers which would mean that 1 in 3 loans are Countrywide/Bank of America home loans.  One might wonder why they have been so rough and tough on short sale process, but I guess we have to cut them a little slack based on volume.  We short sale experts refer the BOA short sale as the devil, but I have a feeling this is about to change for the better.  It was in May of 2009 that BOA short sales started to became the most difficult task in the history of short sales to date.

 I have heard from several agents and title companies that declare they will not do BOA short sales whatsoever.  We at Key Concepts never shrink from a challenge.  This debacle came from the fall of the market combined with the amount of companies that came out of the woodwork to “LEARN”, do, process, or negotiate short sales. The amount of people learning as they go has contributed to the problem overtime.  As I quote a Bank of America employee, “If only I could wave my magic want and make the real estate agents who don’t know how to work short sales go away. “

I am currently working 7 files on Equator. My experience with Equator has been favorable as far as timing goes, but they are asking for 105% of fair market value on almost every short sale in the pipeline. This creates a whole new problem.  Now more companies are coming out of the woodwork to plug BPO business for agents who are sitting on the benches.  These agents are going around and evaluating properties for shorts sales and these agents have absolutely no experience in doing BPO or they really do not have a working knowledge of how different properties need different evaluations.  This is now creating the need for deed in lieu because a seller cannot short sale a property for over market value. It just does not make sense. Could this be a long sell?  

It is evident that short sales are here to stay and we will press along in 2010 to protect homeowners with every tool in our short sale arsenal. We will have to do this with great optimism and the hopes that there will soon be regulation in the BPO industry as well.  In case you are a victim of this over-evaluation (long sale) problem that is on the rise I have listed the BOA deed-in-lieu department link below which will save you about 10 phone calls.

Thank you! www.kjhomefinder.com

http://homeloanhelp.bankofamerica.com/en/deed-in-lieu.html

Key Concepts – Short Sale Expert

I have been working as an investor in the Colorado real estate market since 2005.  My primary focus has been in the foreclosure, REO and short sale niches.  My short sale company has worked with over 200 homeowners to help them avoid foreclosure.   I teach short sale classes to realtors so they are better prepared to deal with short sale listings.  I’ve worked with Kelli and Key Concepts on several short sale and investment properties over the past year and a half.  I recently decided to get my Colorado Brokers license and had the opportunity to join the team at Key Concepts.  I’m proud to be working at one of Colorado’s top real estate companies which are dedicated to helping homeowners facing foreclosure.

To find out more about log on to www.kjhomefinder.com

How to Qualify a Short Sale Agent

There are a lot of real estate companies and real estate agents in Colorado claiming to know short sales, but they are really just learning the “how-to’s” of short sales.  Now even national short sale companies are claiming to know how to process short sales in all states, but do they?  Short sales are certainly a process that needs a lot of experience and finesse. Processing, negotiating, and listing short sales are not for the novice. Key Concepts has been a leader in processing and negotiating short sales in Colorado since 2005. It has come to our attention that many of these so-called “short sale” experts do not know anything about the short sale process or about short sales in general. I have listed a few questions that I feel will qualify a real expert from a novice. I would also advise a homeowner to not use an agent who has not performed more than 10 short sales in the last calendar year or who has less than a 90% success rate. Here are a few questions I would suggest a homeowner ask before selecting a short sale agent.

 1. How many short sales have you completed in the last 6 months to 1 year?

2. How long have you been performing short sales? 3. How many short sales have you completed for (your mortgage company here)?

 4. What has been your experience with my mortgage company?

5. Do you process your own short sales or do you sub out? If the answer is: no they do not process their own short sales then ask who handles the short sale after it is submitted? Be cautious if the agent uses a national short sale processing center or title company to process the short sale.

6. How long do you think my short sale will take? Be cautious of agents who propose “quick”, less than 60 days, or we get them done the fastest.

7. Make sure to note if your short sale is a conventional loan, FHA pre-foreclosure sale, or VA short sale. Ask the agent if he or she is knowledgeable in the type of loan product that you have. All loans are not treated the same.

For more information on short sales call Key Concepts at 720-276-2553 or visti www.kjhomefinder.com . We understand short sales and we can help.

Why should a homeowner short sale?

There is an alarming number of homeowners who are in need of financial assistance and there is an increasing number of homeowners that are delinquent on their mortgage payments. 50% of the homeowner that are going into foreclosure do not even know that they have options.  Bankruptcy attorneys push for bankruptcy and the word short sale is still a a term not known by many. Approaching 2010 there is a lot more talk on short selling homes, but what are the real reasons a homeowner should short sale? well, most importantly to avoid having a foreclosure on their record, but there are even more reasons a homeowner should not walk away from their home.  A short sale will help with almost everything including; car insurance rates, employability (some companies and professions will not hire an individual with a foreclosure on their record), credit card and loan interest rates, the ability to have credit, the length of time they can purchase a home again, to prevent the bank(s) from coming back afterthe homeowner for a deficiency (mortgage companies have 6 years), avoid bankruptcy, to settle your accounts up front with no surprises, and more.   Most home owners do not know they have options and many scam companies are telling them to walk away.  Please log on to www.kjhomefinder.com for more info.