Why Do Banks Hate Short Sales?
Or do they? This question can often arise when buyer & seller alike are faced with short sale situations, as it sometimes feels like the short sale lenders are “dragging their feet” in approving a short sale. I recently attended the Asian Real Estate Association of America (AREAA) National Convention in San Francisco and heard from top executives at Chase, Wells Fargo and Citibank regarding short sales. All three of them stated that their organizations are actively seeking ways to improve the short sale process and that they definitely prefer short sales as an alternative to foreclosure. The numbers show that banks can lose between 10-45% in a short sale but that loss becomes 50-75% in a foreclosure situation. I also heard a broadcast from Bank of America just this week, stating that they are planning to “increase their short sales next year by 60-70%” and now have over 3000 people in their short sale division.
So if banks want to do short sales, why does it seem so long and difficult to get an approval? That’s a subject for another blog…
Jean Joh
Short Sales & Foreclosure Resource (SFR) Certified – National Association of Realtors
www.jeanjoh.com
Some Bank Websites re: Short Sales
Bank of America: http://tinyurl.com/ssbofa
Wells Fargo: http://tinyurl.com/sswellsfargo
Citibank: http://tinyurl.com/ssciti
Chase: http://tinyurl.com/sschase
The Future of Police Services in Millbrae
Important Town Hall Meetings are being held this week to discuss the future of police services in Millbrae. The City of Millbrae has reduced the size of its police force by an estimated 26% over the past ten years, and staffing resources are apparently at a minimum, “non-sustainable” level and currently does not even have a full-time Police Chief. The City Council has been exploring several options, and the current proposal involves outsourcing to the San Mateo County’s Sheriff, which is projected to save about $167K in personnel costs when compared to the current police budget. On the other hand, it will take an additional estimated cost of $410K to fund the recommended Police Department staffing.
Personally, at a time when the economy is doing poorly and I’ve been hearing of more incidents of burglary and theft, this seems like the wrong time to cut back on safety and security resources. Both as a homeowner and as a real estate agent in Millbrae, I know one of the big attractions is the “small-town” feel where people can feel relatively safe, and parents don’t have to feel nervous about letting their children go trick-or-treating, and I’d hate to see that go away. Read more
All You Need is … Patience!
I recently celebrated the close of an escrow for my clients’ purchase of a beautiful home in South San Francisco. This transaction was one of the more meaningful ones for me due to the nature of my relationship with these clients. We actually met back in July 2008 at my company’s kiosk at the Serramonte Mall in Daly City. At the time, this couple was just looking into the possibility of purchasing their first home, and weren’t quite sure if they were ready to purchase a home just yet. Still, we kept in touch occasionally over the years, going out to see homes of interest and even submitting a couple offers that didn’t go through.
To Fumigate or Not to Fumigate…
Within the past few months, I had two separate situations where we’ve gotten vastly differing estimates from a termite inspection. For one home, we actually ended up getting three reports – one reported beetles with an estimate of over $10,000 to fix all Section 1 items including a recommendation to fumigate, another reported termites with estimate of $5000 with local treatment only, and the third didn’t even mention beetles or termites but had an estimate of almost $6000 for dryrot repairs. In the second situation, termites were noted with a recommendation for fumigation with an estimate of almost $8000, while the second recommended local treatment, which would cost a fifth of the cost. What to do?
Since I’m a real estate agent and not a licensed contractor or certified inspector, I don’t have the qualifications to determine which report my clients should believe. Added to that, it’s interesting to note that general home inspectors aren’t allowed to give bids on the work that needs to be done (due to possible conflict of interest), termite inspectors are not subject to the same restriction and almost always include bids in their reports. So, is there a slight possibility of some conflict of interest? Read more
“Highest and Best” – Words to Live By or Words to Dread?
Growing up, we’ve often been encouraged to give our very best in whatever we do, be it our studies, athletics, our jobs, etc. But there are times in real estate when I’ve come to almost resent the words “highest and best.” If you’ve tried to purchase real estate or represented potential home buyers, you’ll know what I mean. You too may have come across these words as an unofficial counter from a seller, especially when dealing with bank-owned properties in a multiple offer situation: “Give us your highest and best offer.” In a traditional sale with negotiations between a buyer and seller, the seller will usually counter the buyer’s offer with a certain price or terms. Read more
Pumpkin Patch, Cabbage Patch…Millbrae Patch?
photo credit: Patrick Hoesly
photo credit: Patrick Hoesly
Just a couple examples of what you’ll find on the Patch for Millbrae, where I live:
- A list of events in the area to celebrate the Lunar New Year throughout the month of February: http://millbrae.patch.com/articles/chinese-new-year-events
- A list of the ten best restaurants opened in 2010: http://millbrae.patch.com/articles/10-best-millbrae-restaurants-opened-in-2010
Or how about in San Bruno, where my office is located?
- Mastick Avenue Residents Vow to Keep Neighborhood Safe After Shooting: http://sanbruno.patch.com/articles/mastick-avenue-residents-vow-to-keep-neighborhood-safe-after-shooting
- San Bruno Real Estate Enjoys Growth for Third Month in a Row: http://sanbruno.patch.com/articles/san-bruno-real-estate-enjoys-growth-for-third-month-in-a-row
There’s a patch.com site for almost every city in the Peninsula: South San Francisco, Burlingame, Pacifica, Belmont, Foster City, San Carlos. What a great way to keep on top of what’s happening in your area or if you’re thinking about moving, to get another taste of the city you’re considering.
Jean Joh: Visit my website at www.jeanjoh.com or follow me on twitter as jeanjoh.
Things to Consider When Buying a Flipped Property
Lately, I’ve been seeing an increasing number of homes that have been purchased by investors, fixed up a bit and then put on the market, i.e. the “flip.” This is to be expected with the onslaught of foreclosures that has taken place over the last few years, coupled with insightful investors (many of whom are real estate agents) who’ve seen golden opportunities in real estate and have taken advantage of the low interest rates and low home prices. I’ve actually had two clients purchase such homes in the past six months, and have shown many more. The most attractive part about buying these homes is that the investors usually have done some basic work to make them move-in ready. Fresh paint, fresh carpet, new fixtures, even new landscaping – all of these help to make the home more attractive and appealing. But here are a few things to keep in mind:
1) Even though sellers are still required to fill out disclosure forms, the information will often be limited b/c the sellers have never lived in the property. In this sense, it’s almost like purchasing a bank-owned property.
Remembering Victims of the San Bruno Explosion
Last Friday, October 24th, I attended a memorial for three members of the one family – Lavonne Bullis, Gregory Bullis, and William James Bullis – who were killed in the San Bruno explosion and fire on September 9th. This tragedy also claimed the life of five other people: Jacqueline and Janessa Greig; Elizabeth Torres, 81; James Franco, 58; and 20-year-old Jessica Morales. Although I didn’t know the Bullis family personally, I attended the memorial to show my sympathy and support, especially as William was a senior at Mills High School in Millbrae, where my older daughter recently graduated from and my younger one currently attends.
I’ve been pondering for awhile what to write in this blog, as putting anything into words would be inadequate and just sound cliché. Still, I can’t blog about anything else until I get this out of the way, and it seems right to at least mention a few thoughts on such a momentous event. Read more
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