Kjhomefinder's Blog

Short Sales and The Condo Bubble

kjhomefinder — Wed, 17 Nov 2010 20:06:13 +0000

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

kjhomefinder — Tue, 16 Nov 2010 23:19:59 +0000

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

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

Step two: Hobos and homeless are a national problem!

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.
If your home gets an unwelcomed guest several states enforce squatters rights (see http://definitions.uslegal.com/s/squatters-rights/) this then requires eviction.
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.
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

Denver Short Sales Buyer’s Agent

kjhomefinder — Tue, 15 Jun 2010 14:02:49 +0000

We understand what it takes when looking for a new home.

In almost every transaction, the seller of the home pays the commissions for both Brokers. This means that, as a buyer, you can enlist professional representation to assist with your search, negotiations, and contracts, without paying out-of-pocket expenses for those services.

Also worth mentioning is that Key Concepts works with a lot of short sales. There are a lot of these types of listings on the market these days, and they require specialized knowledge to negotiate successfully to the closing table. If you’re not already working with a Buyer’s Broker, please consider one with short sale experience.

Please call me at your convenience. I look forward to talking with you about your future home.

www.kjhomefinder.com

Another Year Another Short Sale Program

kjhomefinder — Mon, 24 May 2010 20:42:02 +0000

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?

Short Sales Call Centers

kjhomefinder — Wed, 28 Apr 2010 17:48:03 +0000

Countrywide	Short Sale Support	866-880-1232
Countrywide	Short Sale 1st mortgage	866-709-1116
Countrywide	Short Sale 2nd mortgage	866-413-3757
Countrywide	Home retention	800-669-6650
Countrywide	REO Trans	800-669-0102 866-677-2516
Countrywide	Re-open files	800-669-6087
Countrywide appraisal	Schedule appraisal	877-572-5673
Countrywide	Property preservation	888-554-4690
Countrywide Fax	Short sale packages	888-491-4947
Countrywide Fax	Fax authorizations	805-520-5019
Countrywide fax	Alternate fax	800-658-0395
Countrywide	Deed-in-lieu	800-846-2222

Chase 1st	Short sale 1st mortgage	800-446-8939
Chase Bank	Short Sale	866-307-8268
Chase	Executive Resolutions	866-605-9253
Chase	Resolutions	888-310-7995
Chase	Recovery Dept	800-834-9218

Wells Fargo	Short Sales	866-903-1053
Wells Fargo Fax	Short sale fax	866-969-0103
Wells Fargo Home Equity	Short Sales	866-970-7821
WF Home Equity Fax	Short sales fax	866-834-7949

Aurora Loan Services	Short sales	866-521-3828
ALS Fax	Authorization fax	303-728-7648
ALS Fax	Short Sale package fax	866-517-7976
ALS Fax	Missing docs fax	866-581-4503

Provided by: www.kjhomefinder.com

Colorado Springs Short Sale Expert

kjhomefinder — Tue, 23 Feb 2010 18:18:01 +0000

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

kjhomefinder — Wed, 10 Feb 2010 02:09:24 +0000

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

Top 5 worst short sale banks of 2009

kjhomefinder — Mon, 14 Dec 2009 18:55:54 +0000

Top 5 worst short sale banks of 2009

Indy Mac- Yikes… who are these people that they hire? Indy Mac will postpone a foreclosure for 2 years, but take it into foreclosure just because they “feel like it”.
Washington Mutual- Not much improvement since 2006. Will take 12 months to process a short sale.
Wells Fargo Home Equity- Still does not short sale and will take 6 months to process even though they are on second.
Chase Home Equity- When in second position they want full deficiency and 54% up front. Who has this kind of money when they are losing their home?
Bank of America- I know there is a lot of talk about their short sale process and there are many agents not taking these short sales in general. I put them in # 5 because sometimes you get a good person on the file and miracles happen. 85% of the time this is not true. If there is PMI then forget it.

Looking forward to 2010 and it is my hopes that these banks will improve. Remember HSBC in 2008? Now they are the best to work with.

When trouble happens in the short sale world may sellers will blame the listing agent, but there are several factors affecting the short sales of today. Title companies are overloaded and working overtime on all files, so they slip every now and then. If a bank takes forever the seller will sometimes take it out on the agent, but short sales move at their own speed.

The main key for sellers is to be patient with the process. Short sales will take a long time and look out for these 5 banks. They certainly are not making things easy.

Blog by: www.kjhomefinder.com

Key Concepts – Short Sale Expert

kjhomefinder — Wed, 02 Dec 2009 20:38:03 +0000

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

kjhomefinder — Wed, 25 Nov 2009 22:04:27 +0000

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.