Wells Fargo Short Sale Department Wins My Respect!

I thought I was sunk with a short sale listing that I took just 6 days before the trustee sale date on the courthouse steps in San Jose. I had to get this done so that the owner could process a short sale instead of a foreclosure. I listed the property and got an offer in within the day. Signatures, tax returns, pre-approval letter, financial worksheet, hardship letter, listing agreement, purchase agreement, verification of funds, etc - all this took about 24 hours. I faxed the 35+ pages to Wells Fargo's short sale department last night at 6:30pm. Today at 5:45am I am sitting in my living room trying to see who I can contact to get some movement on this file - normal receipt processing time is 72 hours - not time that I have to spare with a weekend looming and a Monday trustee sale date. Luckily I found an email through a business networking site of a manager in the Wells Fargo short sale division - I shoot him an email at 7am, by 10:13am I get a reply with 3 cc'd Wells Fargo employees who are all searching for my file, 10:18am another cc email to THE guy who can stop a trustee sale and by 10:38am a personal call from that wonderful gentleman telling me the foreclosure has been postponed and assigning me a short sale negotiator! This group of people from all different parts of the country made damn sure that this property was not going to slip into foreclosure oblivion. Great job Wells Fargo!

Why Wells Fargo bought Wachovia and not Washington Mutual

Great insight into why Wells Fargo bought Wachovia. I just read this article as I was searching for ways to get my client's Wells Fargo short sale approved. The banking industry of course is very influential to real estate and knowing why banks do certain moves is power. Eric Meyerson's blog Free Rise is outstanding. He is a banking industry insider and San Francisco area resident. Check him out.

Proposition 60 Information 55 and over - Santa Clara County

As per SCCGOV.org site:

Proposition 60 allows homeowners 55 years of age and older to transfer the base year value of their principal residence to a newly purchased residence in the same county, providing that certain requirements are met.

The requirements, in part, for this exclusion include the following:

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The replacement residence must be purchased or newly constructed within two years (before or after) of the sale of the original residence. The purchase or new construction of the replacement dwelling must include the purchase of that portion of land on which the replacement dwelling will be situated.
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The principle claimant or the claimant's spouse who resides with the claimant must be at least 55 years of age at the time the original residence was sold. The claimant must be an owner of record of both the original and replacement residences.
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The sale of the original residence must qualify for reassessment under the provisions of California Revenue and Taxation Code Section 110.1.
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The principle claimant must have been either:
1. Receiving, or eligible for, a Homeowner's Exemption, or
2. Receiving a Disabled Veteran's Exemption on the original and replacement residences.
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The replacement residence must be equal to or lesser in value than the original residence. "Equal to or lesser in value" has been defined as: 100 percent of the market value of the original property as of its date of sale if the replacement dwelling is purchased before the original property is sold; 105 percent of the market value of the original property as of its date of sale if the replacement dwelling is purchased within one year after the original property is sold; or 110 percent of the market value of the original property as of its date of sale if the replacement dwelling is purchased between one and two years after the original property is sold.
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Special rules apply to multi-unit dwellings and mobile homes.
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Relief pursuant to Section 69.5 (Proposition 60 and 90) of the Revenue and Taxation Code can be granted only once, except for certain circumstances regarding severely and permanently disabled persons as defined in Revenue and Taxation Code Section 74.3.
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Claims must be filed within three years of the date the replacement residence is purchased or newly constructed. You must complete the claim form and provide evidence and/or declare under penalty of perjury that you are at least 55 years of age. Application forms may be obtained by contacting the Real Property Division of the Santa Clara County Assessor's Office at the number below.

For More Information Please Contact:
Assessor Real Property - General Questions, Property valuations and Propositions 3, 8, 60, 90
70 West Hedding St., East Wing
5th Floor
San Jose, CA 95110
Phone: 408-299-5300
Email: RP@asr.sccgov.org
Fax: 408-298-9439

Short Sale Townhouse Willow Glen $515,000 San Jose

Best schools - Booksin Elementary, Willow Glen Middle and Willow Glen High. 2 bedrooms, 2.5 baths, two story townhouse in quiet complex off Malone and Bird. 1290 square feet. 1 car attached garage plus one car space in complex. Motivated sellers. Great condition. Come look at a great bargain in perfect Willow Glen area of San Jose.
See virtual tour.

Follow up to REOTrans soon to be Equator on Short Sales

According to CEO Chris Saitta, as of October 9th, REOTrans had 4,388 short sales in their system. For sure this number will skyrocket. As more and more banks who want to purge the glut of short sales through stream lined technology, will look at companies like REOTrans for help. The industry as a whole will benefit from transactions that are taking months, coming closer in line with traditional sales in the 30 day range. Buyers will also step up easier into that market when the grinding barriers to entry are lifted. Yes - that a bit heavy - but that's what it feels like sometimes!

Home Buyer Strategies 101

Most home buyers jump on the new listings that come on the market. There is a mad rush to the first open house and then a decision whether to offer on that home - typically with fear that others will do the same. For sure, those homes are worth looking at, but a better strategy tends to be looking at homes that have been on the market for a while, have had a price reduction (and if so how long ago), are vacant (typically more motivation there) or are truly overpriced. This last point needs some clarification. An overpriced home does not typically reflect a motivated seller - but there are sellers out there that will not reduce their price yet will cut a market rate deal when an offer is presented. I talk to a lot of listing agents before showing homes to a buyer to evaluate what is possible in each of these situations. Info wins!
By the way, setting up a listing alert specifically for "changes" in the listing is very beneficial - this will highlight price reductions as well as changes in the comments which may reveal a more motivated seller.

Interesting San Jose Condo Complex BPO

Interesting BPO just completed on a 2005 built residential condo complex in San Jose. Of the 13 active and pending in the complex, 11 were short sales and 2 were bank REOs. 12 of them were "in escrow" with the remaining unit taking offers in few days. Prices were in the $450,000 range for new units bought from the developer in 2006, now the base line trading value is between $245,000 - $280,000. The complex has two main issues - even though the units are very luxurious and in a good location - an HOA litigation and a very high rental to owner ratio. These two problems have eliminated most lender financing and relegated buyers to pay all cash. Obviously this then only brings in more investor buyers and keeps the rental/owner percentage the same or even worse. The short sale process seems to be taking hold well and that is a trend that will continue in the overall market as many banks prefer to short sale a property instead of the foreclosure alternative. Sales of approximately 5% of the complex happened this year at these low prices. What is worrisome are the 95% of remaining owners who are significantly under water.

REOtrans now handling short sales

Bank of America and GMAC now using REOtrans to process electronically
their short sale offers. This is very beneficial because the paper
process of faxing short sales to banks had dragged out those deals for
months. I've heard over and over about agents (including me) talking to bank short sale departments to verify that they received faxed contracts - only to be told "it takes 5 business days for them to hit the system" or "we have no record of that submittal, please fax again". Now documents can be uploaded to transaction files with verification of receipt. This should speed up the short sale process immensely.

Sent from my iPhone

Short Sale Fourplex San Jose

There is a very well located fourplex in the Cambrian area of San Jose. Fully occupied, 2 bedroom, 1 bath units, each renting for $1,300. The building is offered at $699,000 and depending on bank short sale approval, may be delivered at a much better price. Contact us for our pricing and analysis guidance.

Sunnyvale Bank Owned REO Fourplex

Very good deal in Sunnyvale for three 2-bedroom units and one 1-bedroom unit on Ayala. FNMA owned building which allows for 10% down non-owner occupied financing. 3,000 square foot property on a 7,840 square foot lot near north Sunnyvale. This is a good deal with very decent upside in a strong rental market. Offered at $725,500.

2 Great East Oakland Apartment Building Deals

18 units, built in 1990 with no rent control in the Golf Links area. 20,742 sqft with gated underground parking. $2,200,000. *** 9.11 GRM***

19 units, built in 1990 also no rent control, virtually next door to the above 18 units. 20,742 square feet, *** 8.96 GRM ***

Excellent way to pick up 18, 19 or 37 units in a strong rental market.

These properties are priced very well and will move fast.

Sold! Fabulous Townhouse in Willow Glen

We just closed escrow today on a wonderful townhouse that we had listed in Willow Glen on Delbarr Court! Offered at $549,000 and sold for $545,000. If you want us to sell yours too, please call.