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Where/How/When to use the $8,000 first time buyer tax credit with an FHA loan

Pacita Dimacali — Sun, 07 Jun 2009 20:05:00 GMT

MORE GOOD NEWS FOR FIRST TIME BUYERS!

Where to use your $8,000 Tax Credit with your FHA loanIf you are an eligible for an FHA loan and you are a first time buyer, you can:

Use the $8,000 tax credit for closing costs, escrow charges, higher downpayment, or to "buy down your interest rate so that you can have a lower monthly payment

Eligibility. Here's how you can determine if you qualify:

You must be a first time buyer in the sense that you have not owned a primary residence during the last three years
Your household gross income cannot exceed $95,000 if you are a single taxpayer, or $170,000 if you are a married couple filing jointly
You are submitting an offer on a house you can afford to buy
You are applying for a mortgage through an FHA-approved lender
Your home purcase must close escrow between January 1, 2009 and November 30, 2009.
And you must invest a minimum of 3.5% of purchase, from your own funds (which can be from your savings and gifts from relatives)

What you need to do: Complete your FHA application

Complete the IR form 5405 --- this is your request to the federal government to send you a tax credit check.
You can also file an amendment to your 2008 return to get your tax credit or file it on your 2009 taxes. You can download Form 5405 at www.IRS.gov
Prove that you have no outstanding civil judgments, liens, unpaid taxes and other obligations that may eliminate the tax credit
Prove that you are not subject to having your wage garnished that may affect how much of a tax credit you will receive

Frequently asked questions about the home buyer tax credit For more information, check out the FAQ from http://www.federalhousingtaxcredit.com/2009/faq.php

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

Source:http://www.federalhousingtaxcredit.com/2009/index.html

As a Home Seller's Agent, I ask: How much is your time worth? Here's a glimpse at what I do for my Sellers.

Pacita Dimacali — Sun, 07 Sep 2008 18:02:00 GMT

Before I became a realtor, I also wondered how much work is involved in helping a client buy or sell property. Little did I know!

Here’s a question to all: How much is your time worth? Can you afford not to get paid for service you provide?

Please, folks...we don't just provide transportation. I can only speak for myself, but this is a sampling of the service I provide for my Sellers:

BEFORE MEETING THE CLIENT

I prepare a comparative market analysis and put together a marketing presentation (not a cookie-cutter presentation. There’s a lot of thought, research and effort in this presentation which eventually became a template for my company)

REALTORS will know that putting together a comparative market analysis is not just about looking at what sold, are active or pending. One has to determine other factors to qualify specific properties to be in the comps.

DURING THE MEETING

Because of the mountain of paperwork involved, it is critically important to review and explain the various documents requiring the Seller’s signature.

This is also when we discuss a calendar of action items on what the seller and I should do to prepare the property for sale

ACTION ITEMS. These are the various activities I undertake

Services

√ Scheduling inspections (home inspections, pest inspections, etc)

√ Helping and guiding sellers on staging their house. If they don't have the right stuff, or don't have enough, I augment the staging by using my things. Or, I hire (and pay for) a professional stager to consult with the client. One of the best resources I share with them is a book or DVD on "Stage for Profit"

.

√ Providing resources for sellers, and letting in the service personnel in the house (e.g. wood floor refinishers, painters, plumbers, electricians, housecleaners, landscapers, inspectors)

Marketing Materials Preparation

√ Taking pictures (a lot of pictures!) - selecting, editing, cropping, re-sizing, compressing, photo-stitching like this one

√ Creating visual tours

√ Writing and designing flyers

√ Contracting for advertising in print (newspapers, postcards, flyers)

√ Putting together a Property Binder to include information about the property, copies of inspections, demographics, permit history, etc. that I provide at the house so that agents and prospective buyers can consult this information while they are at the property. Nothing like having info at your fingertips when you want it.

Marketing Activities

√ Holding brokers' tours (during which I serve refreshments to entice more agents to come see the property)

√ Holding open houses as needed

√ Showing the property

Online marketing

√ Sending electronic flyers, or what other people will describe as email blast

√ Uploading the posting on the MLS

o on REALTOR.com, uploading as many as 25, customizing the descriptions and scrolling headline for the showcase. This is critically important since this serves as the primary source of information that other realty websites pick up. So by the time I activate a listing, it is complete with pictures and visual tour.

√ Creating electronic flyers using Postlets, Vflyers

√ Customizing uploads on Zillow, ActiveRain, Trulia

√ Posting regularly on craigslist

√ Uploading and creating website information about the property (this is posted on my website on Point2 which is networked with other Point2 members.

√ Uploading the information on our company website

√ Uploading disclosures online (Sureclose)

INFORMATION

√ Following up with agents and prospective buyers who saw the property -- I send notes, email, and make phone calls

√ Updating my sellers frequently on the activity on their house. I do this by sending them copies of the reports on REALTOR.com on how many times it's been viewed. I include other reports that are available (how many times it's been viewed on Zillow, my website, et). I include a list of all the realtors who have shown the property, provide numbers of people who came to the open house, etc.

√ Having continuous conversations with my Seller on the market, and if we should make some adjustments

OFFER NEGOTIATION

√ When an offer is received, I start negotiating at that moment --- my first question to the other agent is if the offer is the BEST and HIGHEST offer from the buyer. That may give them pause, and then they ask me to counter rather than reject the offer.

√ If there is more than one offer, I prepare an Excel spreadsheet comparing the terms and the estimated seller proceeds

√ Upon presenting the offer to the Seller, we go through an intensive discussion. Sometimes, we go back and forth, and may even have more than one counteroffer.

√ I call the buyer’s lender and the buyer’s agent to get a more complete sense of the financial wherewithal and motivation of the prospective buyers to close escrow

√ During the escrow period, there is continuing negotiation that may involve request for repairs, credits for closing costs, etc.

√ I coordinate with the buyer’s agent the inspections and appraisal appointments

TRANSACTION COORDINATION

√ When we go into contract, I remain the point of contact among all parties

√ I engage, and pay for a transaction coordinator to make sure our paperwork is in order

√ Through it all, it's follow up, follow up, follow up!

These action items take hours, days, weeks. I don't get paid until I close escrow.

Remember, that I pay for all the advertising and marketing expenses that include membership in the Multiple Listing Service (MLS), REALTOR.com, website and visual tour hosting, newspaper advertising, color flyers and postcards, signage, etc.

If the property doesn't sell, I am not reimbursed for any of my out-of-pocket expenses

So again: How much is your time worth? Can you afford not to get paid for service you provide?

10 Things to do when posting a real estate ad on Craigslist

Pacita Dimacali — Fri, 05 Sep 2008 03:12:00 GMT

Success with craigslist really depends on several factors.

1. Be The One to Blaze the Trail. Is your area's craigslist well known and widely used? I'm in the Bay area where craigslist was born, so it is a given that this will be where it will be most active. If your area isn't often used --- yet ---be the one to use it most often.

2. Repetition, repetition, repetition. How often do you post your listings? 2-3 times a week is a good number, as long as you have 48 hours between postings

3. Catchy headline --- be creative. Use humor. For example, if you're posting a fixer --- you can headline it by saying "What a dump!" or "You can own this dump!"

4. Use VFlyer.com and Postlets.com to create your flyers with multiple pictures. After taking the time to create the flyer once, when posting on craigslist later, it's simply copy/pasting the html.

5. Pictures, pictures, pictures! Post the maximum allowed. When using Postlets, you can post up to 6 pictures, free. With Vflyer I think it's 24. Just like posting on MLS --- your primary photo should be a knock-out. And you should provide as many pictures as possible.

6. Create a craigslist account --- makes posting a breeze. You can log on to your account, edit/change/delete. You can also copy paste using old postings if you're not inclined to log on to Postlets/Vflyer again

7. Specify the City when posting real estate for sale. If you don't, it will drown in a sea of other postings and they'll never find you.

8. Put in KEY words or the buzz words of the moment. For example, "Not an REO!" or "Not a Short Sale!" --- people using keywords to find such listings will find yours, too.

9. Email your database. If you have listings, email the posting to your clients and prospects. This will underscore your being "wired" in other ways, and may even set you apart from others who are not using this medium.

10. Post your open houses. Email an invitation via craigslist to prospects to come see you during your open house. Another way to advertise your listing for free.

Like anything else, it may take time to germinate. But for me, posting on craigslist is part of my marketing plan. My clients and prospects use craigslist --- so wherever they are, there I am!

Oh, joy! Oh, no! A typical day in the life of a REALTOR.

Pacita Dimacali — Fri, 05 Sep 2008 03:08:00 GMT

Mixed bag of emotions --- that's par for the course.

OH, JOY!

Today, I received a call from a prospective seller who told me I got the job of their realtor, beating out two other realtors in bigger local offices. I am thrilled. This is a very good listing in a desirable part of the island. This is a home with very good bones...needs a lot of work, but it is on a great street. A visionary will rejuvenate this home in no time. It should generate a lot of interest.

Keep your eye on this home....it's coming soon!

OH, NO!

Then later, I receive an email from a client whose 10-unit apartment building I had listed and marketed last year. Against my advice, he wanted a higher price than I thought reasonable. Although I generated a lot of interest and had many showings, the numbers just didn't add up for the prospective buyers. So he took it off the market in March. He expressed profound gratitude for everything I've done for him, but he decided to list the property with a big commercial brokerage. How do I combat that?

OH, JOY! I just received a verbal approval for one of my offers on an REO listing. It was a competitive situation so we wrote an offer over list price, following the Do's and Don'ts when writing an REO offer

OH, NO! I just received a verbal rejection for one of my offers on an REO listing. So many bidders, they picked the top 3 out of 8 offers. My client didn't want to write a higher offer even though she knew we would be competing.

So onward, forward. Just another typical day in the life of a REALTOR.

Do's and Don'ts when writing an offer on an REO

Pacita Dimacali — Wed, 03 Sep 2008 15:00:00 GMT

As many times as I've written offers on REOs, it is advisable, and I cannot stress enough the importance of writing the BEST and HIGHEST offer. And just as important is to be aware of a lot of the do's and don'ts that apply to writing offers on REOs.

REMEMBER

Seller/Lender calls all the shots
Seller/Lender may require getting Buyer preapproved by a lender they specify, or provide proof of funds to close escrow. Buyer may not be required to use that Lender.
Offer is negotiated with an asset manager
Some terms may be deleted from the formal contracts mandated/sanctioned/prepared by the State Association of REALTORS
Conversely, some terms may be added by the Lender that may not be familiar to the Agents
Review these guidelines with the Buyer
Seller/Lender likely has two or more Broker Price Opinions (BPO) and appraisals so they have a clear idea of what the property is worth
Seller/Lender are not interested in even looking at seriously low ball offers
Seller/Lender may prefer using Title or Escrow Company of their choice. In some cases, Seller/Lender may pay some escrow and closing fees.
Seller/Lender is exempt from providing real estate transfer disclosure statements and may not sign any or all disclosures. Seller/Lender relies on selling and listing agents to provide visual inspections.

DO:

Submit offers with the following:
- Pre-approval letter. If you are required to get an additional pre-approval letter by the Seller's Banks, DO submit a pre-approval letter from the Lender you are planning to use as well
- Verification of Funds. Don't wait for the Seller to request it. Just go ahead and include it.
- Good faith deposit check. Include photo copy. If Seller requires using their own title company, your buyer can write another check payable to the selected title company.
- Other documents that the Listing Agent/Seller specifies should be included with the offer. Some Seller/Lender require Addendum specific to REOs. Read carefully as there is often a per diem late fee assessed for late closings and terms on that addendum that will supersede contract terms.
Be aggressive with your time contingencies. 0-10 days for inspections is preferable. 7 days is becoming the norm
Note that usual turn around time for contract to be returned from Seller/Lender may be 3-10 days. Upon receipt of the formal and written acceptance from Seller/Lender, the Listing Agent will change status of property from "Active" to "Pending"
Start the loan process and order inspections upon verbal acceptance from Seller/Lender in order to meet your contingency periods for loan approval and buyer investigation.
Provide agent visual inspection/observation
Always check with listing agent regarding commissions. Posted commission is based on net of seller concessions if any, from gross sales price.

DON'Ts

Avoid writing significantly low offers. Everyone wants a good deal, but unless the Buyer can document why Seller should take significantly less than asking price (i.e., contractors provide estimates of repairs, etc), don't submit this type of offer
Don't change lenders, loan terms or programs during escrow. No surprises. Changes could delay process and subject Buyer to per diem penalty or even lose initial deposit/earnest/binder money.
Don't enter name(s) of Seller on any documents. Tax records do not always reflect the current seller on record.
Don't ask for credits or repairs. Normally, property is sold AS IS. If there is a health and safety concern, this may be an exception.

Downey Savings + Deutsch Bank = No short sales

Pacita Dimacali — Tue, 19 Aug 2008 22:10:00 GMT

ince my seller's plea for a short sale was rejected by Downey Savings who holds the first loan, I've been trying to understand why Downey would refuse. Turns out that Downey sold the note to Deutsch Bank. Negative news and forums abound about both,

The point to this is......if you're talking with clients who are either trying to sell or buy a short sale but the loan is with Downey Savings, DON'T. Downey Savings won't approve short sales at this time. Save your energy and find something else.

Rules to remember when writing anything, especially an ad. Refer to Strunk and White!

Pacita Dimacali — Tue, 19 Aug 2008 22:08:00 GMT

Lately, I've found myself following the comments by a local Alameda CA blogger. I have bristled more than once about his comments on the Alameda listings he chooses to critique. Agree or disagree with his blog and opinions, from his tell-it-like-it-is-and-more school of writing, he reminded me to think carefully when posting an ad for a listing. So here are some things to remember:

First, assume that prospective buyers and their agents will check Zillow.com for sales history of and comps for the property you're listing. So it helps to either address and pre-empt questions that may be asked if there is serious disparity.
It may be worth it to review the elements of style by Strunk and White who offer two simple ways to add emphasis:
1. edit out the unimportant words and/or
2. use typographical devices like bold face, underline, or italics (even if you should avoid underlines on the Web, that's still two devices to make your text stand out)
Don't just Capitalize words Whenever you Feel Like it
Avoid irritating clichés and abbreviations (like OBO)
Avoid sales fluff. Observe truth in advertising. Like this one. :)

"Dogs attack gator!"

As a review, here's A Summary of Rules from The Elements of Style (Source: Found on the internet, no name with the post, but appears to be a reference for a college thesis by a student at the College of New Jersey)

A Summary of Rules from The Elements of Style

Strunk's rules:

Form the possessive singular of nouns by adding 's.
In a series of three or more terms with a single conjunction, use a comma after each term except the last.
Enclose parenthetic expressions between commas.
Place a comma before a conjunction introducing an independent clause.
Do not join independent clauses by a comma.
Do not break sentences in two.
Use a colon after an independent clause to introduce a list of particulars, an appositive, an amplification, or an illustrative quotation.
Use a dash to set off an abrupt break or interruption, and to announce a long appositive or summary.
The number of the subject determines the number of the verb.
Use the proper case of pronoun.
A participial phrase at the beginning of a sentence must refer to the grammatical subject.
Choose a suitable design and hold to it.
Make the paragraph the unit of composition.
Use the active voice.
Put statements in positive form.
Use definite, specific, concrete language.
Omit needless words. Omit needless words. Omit needless words.
Avoid a succession of loose sentences.
Express coordinate ideas in similar form.
Keep related words together.
In summaries, keep to one tense.
Place the emphatic words of a sentence at the end.

White's rules:

Place yourself in the background.
Write in a way that comes naturally.
Work from a suitable design.
Write with nouns and verbs.
Revise and rewrite.
Do not overwrite.
Do not overstate.
Avoid the use of qualifiers.
Do not affect a breezy manner.
Use orthodox spelling.
Do not explain too much.
Do not construct awkward adverbs.
Make sure the reader knows who is speaking.
Avoid fancy words.
Do not use dialect unless your ear is good.
Be clear.
Do not inject opinion.
Use figures of speech sparingly.
Do not take shortcuts at the cost of clarity.
Avoid foreign languages.
Prefer the standard to the offbeat.
You may use they, them, their as the indefinite singular pronoun.
Avoid the indefinite singular pronoun.

Would you like wine and a hug with your blog?

Pacita Dimacali — Tue, 19 Aug 2008 22:05:00 GMT

When Alameda Wine Company opened its doors to Alameda CA next to the historic and newly restored Alameda theater, my friends and I started going there for the wine, the cheese and the company.

Because Karen, the proprietor, was so good and so knowledgeable, I blogged about her store and posted it on Localism.

Next time I went there, she was so effusive with her thanks that she gave me a huge hug a complimentary glass of wine, and a contant flow of thanks. :)

All in a day's work as a REALTOR and blogger.

With a greeting like that, what do you think it would do to my incentive to keep going there? Don't you think I would apply that kind of greeting and thanks for clients? You betcha!

Buyers: Please listen to your realtors who guide you to make informed decisions

Pacita Dimacali — Mon, 11 Aug 2008 07:37:00 GMT

To all buyers out there....

Please listen to your realtors who make a living pricing, selling, researching values of real estate property. We do have your interests at heart. We're not in it just to sell you something. We want you to be happy because we are counting on you to tell your friends, your associates to look us up when it comes time for them to buy or sell real estate, too. That's what enables us to grow our business --- referrals from satisfied clients.

So when we tell you that your offer may be too low, when we tell you what the market comps are for the property you're interested in, when we give you information on how much the property sold for last, and what the appreciation (or depreciation) rate is, please believe us.

We tell you this so to guide you and to give you the proper tools to make an informed decision.

Thus, if a property is listed at $299K --- and the comps say that this is a fair value --- just because it's a short sale or REO doesn't mean you should offer $199K!

We want you to win, to invest wisely. We don't want you to waste your time looking everywhere, finding properties you want to write an offer on, and then losing out because your offer is too low, or your terms unrealistic. When you have a number of rejected offers on properties you wish you won, then maybe it's time to re-assess.

Thanks.

Welcome to Alameda Wine Company next door to Alameda Theater

Pacita Dimacali — Mon, 11 Aug 2008 07:31:00 GMT

Welcome, Alameda Wine Company!

Alameda, we have arrived!

For all oenophiles in Alameda, this is wonderful news indeed!

It was a guilty pleasure to go to the Ferry Plaza Wine Merchant at the Ferry Terminal in San Francisco, but we now have our own wine bar next to the Alameda Theater.

Today, a friend and I wanted to take a break after hours so we walked to Alameda Wine Company. That's one of the benefits of being downtown --- we walk everywhere. We were greeted by the very friendly Sal Lirosi and owner Karen Ulrich with whom we chatted up a storm. Although the Alameda Wine Company has been open only for about 18 days, they said they have a very steady stream of people who come before going to the movies, and end up skipping the movies and staying at the wine place instead.

Tonight, I picked the Malbec (this particular vintner is from Argentina). Fabulous!

Oh yes, did I mention that there are several choices of snacks to complement your wine? Pick the cheese....

Karen was opening several wheels of cheese most of which will be served by tonight. There are so many selections that this is as much a cheese tasting as it is wine tasting. As Karen was cutting the wheels, she would slice a piece for the three of us who were lucky enough to be sitting at the bar. There was one particular cheese with mustard seed that was incredibly yummy.

Note their latest newsletter

Saturday Tastings of the latest and greatest in stock. $6 buys six one-ounce tastes and "stalwart and savory nibbles". 11:00 am - 5:00 pm.
Sunday Tastings. According to their newsletter. Karen pairs the best tunes of that most introspective, moody juazz artist, Miles Davis, with the favorite, philosophical grape of Mile of "Sideways" movie fame, Pinot Noir. Karen is offering three unique examples of the variety from different parts of the globe, and she will give a 15% discount on her usual by the glass price that day.

Because we came early, there were only a few of us there....but gosh, it felt like a party because we were all talking with each other, raving about the wines and the cheese that we were enjoying. Alameda Wine Company is going to be a favorite destination.

Falling in love with a city --- Alameda

Pacita Dimacali — Tue, 05 Aug 2008 07:35:00 GMT

I am not an "original" or native born Alamedan. Nor do I know everything there is to know about Alameda. But I am making an effort to get to know more about this beautiful island.

Having lived in New York, New Jersey, Florida and Texas, and having sampled living in San Francisco apartment by the marina, a virtual warehouse loft by the Oakland Estuary before it was gentrified, and in a cozy cottage in downtown Mountain View, I can say without reservation that Alameda is my favorite of all.

My quick and easy resource for what life was and is like in Alameda is our own Alameda Magazine.

I especially like it when they feature stories about the history of the city.

The January-February 2008 issue was by far the best! The cover was a picture of a lady getting ready to dive in a pool in Alameda's version of Coney Island: Neptune Beach.

· Five City Landmarks story is about five historic buildings. You can't just drive by and not wonder about the history of these beautiful structures.

· Riding the Rails when streetcars criss-crossed the city

· Alameda theater --- its rebirth. Although not as ornate as some other theaters like the Grand Lake Theater in Oakland or as exciting as the Castro Theater in San Francisco, it's a wonderful theater in the heart of downtown. Because it's just a block away from Alameda's Kofman Auditorium, are we now to see future kleig lights at our own Alameda's Theater District? It's worth noting that the Alameda Theater is one of 12, and the last one, designed by renowned San Francisco architect Timothy Pflueger. Of the twelve, only four others besides Alameda Theater remain open.

Another recent story was From Bayfront to Lagoons which tells the fight to retain Alameda's waterfront the way it was, to its eventual result of a landfill that has since developed into several residential communities, zig-zag patterns for a lagoon to give people their waterfront views, and the shopping area now known today as the Alameda Town Centre.

First Time Buyer Tax Credit ---- homes bought on/after April 9 2008-July 1, 2009 are eligible

Pacita Dimacali — Mon, 04 Aug 2008 08:13:00 GMT

Just wanted to share this with you regarding the new First Time Home Buyer Tax Credit. If you’re looking for reasons and benefits to share you’re your first time home buyers, this may help. http://www.federalhousingtaxcredit.com

Opportunity of a Lifetime for First-Time Buyers For aspiring home owners who find their goal stubbornly elusive, newly enacted legislation providing a tax credit of as much as $7,500 for first-time home buyers might just be the opportunity of a lifetime. But like so many of the good things in life, time is of the essence for buyers who want to take advantage of this outstanding opportunity. Only homes purchased on or after April 9, 2008 and before July 1, 2009 are eligible.

Use these links to learn more about the tax credit.

First time buyers: Here's a perspective --- a history of interest rates since 1973 Imagine 18% !

Pacita Dimacali — Mon, 04 Aug 2008 07:51:00 GMT

Working with first time buyers today, as we must already know, is very different from what it was like just 2-3 years ago.

Yesterday, they were afraid they'll lose out by not buying a house --- any house at any rate.

Today, they're afraid they may over pay for a house if the market continues to slide, or the interest rates are too high.

For those who are concerned that the interest rates are "too high" I like to share with them this history of the 30-year mortgage. Perhaps some of us still remember when they were 18%. People literally camped overnight in front of a bank where lines snaked around the block while they were waiting to get whatever mortgage loans were available at a time. That's when people were afraid they couldn't get a mortgage because money was tight. Is this a case of "Remember when....?"

A delicate dance....telling sellers what their house is worth today

Pacita Dimacali — Mon, 04 Aug 2008 06:29:00 GMT

Getting Sellers to accept declining market value

One of the most difficult and sensitive things to do during a listing presentation is to get the sellers to see and understand the proposed list price. Try as I might, it's still a careful dance especially when there are other realtors competing for the listing. We've all heard of some realtors "buying" the listing by proposing a higher list price to get the listing.

It helps to augment a marketing plan with statistics. One of the best and local resources for me is DQNews.com's report on Bay Area Home Sale Activity. Instead of generalizing figures that one reads about, this chart provides a zip code view, and thus more believable at the local level. However, it still requires a comprehensive comparable market analysis to come up with a proposed list price.

In Alameda's 94502 zip code, it shows that the median price has actually increased by 1.4% over a year ago. This won't be true for one of my clients who bought a duet for $775K two years ago, made several improvements, but whose house, if I were to list it today, would be valued at $699K --- and that's no guarantee it will sell at that price!

My broker, Michael Studebaker, uses Broker Metrics by Terradatum to get a really good grasp of the market. Here's a June 2008 report on the 2-year review of sold properties and the median price in Alameda, CA. I've included such reports in my presentations. But I am a bit hesitant to put too many statistical data in the presentation and concerned that too much market analysis results in paralysis.

There's got to be a balance between marketing panache and statistical justification. And yes, it's still a very delicate dance.

Pacific Avenue and Littlejohn Park in Alameda --- such a happy place!

Pacita Dimacali — Mon, 04 Aug 2008 06:02:00 GMT

Going on line is the life....whether one is shopping or looking for specific information. This is the way to go. As a REALTOR, I rely on the internet to get my listings the maximum exposure in different venues.

Today, in the real estate section of San Francisco Chronicle, the cover story is about "Real Property, Virtually" and that "Internet's growing influences and an MLS backlash are key topics at Real Estate Connect".

Reading through the articles, it mentioned StreetAdvisor.com. So I got on, and "claimed" my street when I joined. Here's what I wrote:

Pacific Avenue runs parallel to, and is between the main streets of Lincoln and Buena Vista, yet it feels totally different. This street is reminiscent of Disney-ania's vision of a neighborhood of enchanting Victorians, dogs peeking out through the slats of picket fences, parents riding alongside their young kids on bicycles.

Littlejohn Park is one of the happiest places to be. Early mornings, you'll see several people strolling around the park for exercise. Some days, you'll find young men, presumably from the nearby Coast Guard Island, playing soccer. After hours, parents are throwing, catching and hitting softballs with their children for practice. Weekends, there are always picnics where kids are running through the fields. And occasionally, you'll see some folks training their dogs, or taking them for a walk. The activity room for children and the playground are popular destination for parents and their young children.

It's truly a happy place.

This is one of the few streets in Alameda where there are so many stop signs, so that there is less chance of reckless drivers speeding. And residents don't have to worry about moving ther cars from one side to the other due to scheduled street cleaning (hence, no parking tickets).

What is so delightful about this street is the variety of architectural styles --- from stately Victorians to charming bungalows.

It's a block from the bus route on Buena Vista, and two blocks to the main bus rounte on Santa Clara. And it's a short walk to the fabulous waterfront park by Fortman and Grand Marina, a little longer walk to Marina Village. Head the other direction, and voila!, one is in the historic and picturesque Gold Coast area, and enclave of Alameda's version of grand homes on tree lined streets on the island.

Happily, Alameda is a wonderful place to live. It's a small island that is close enough to San Francisco (via ferry, express bus), Oakland or the major highways just across the bridges for easy commute to other parts of the Bay area. Picturesque and historic, it boasts a wonderful selection of restaurants of different cuisine. The Alameda Town Centre is right on the beach, and is continuing to grow the number of fine shops like Bed Bath and Beyond, Old Navy, TJMaxx and soon, Kohl;s. Recently, the newly restored Alameda Theater opened its 8-cineplex.

There are always all kinds of fun events like outdoor summer concerts, art and wine street festivals, etc. all of which evoke pleasant memories of happy events that people enjoy.

Short Sales for Downey Savings are NOT doable, per Mortgage Resolutions Services

Pacita Dimacali — Thu, 31 Jul 2008 23:10:00 GMT

LAST RESORT

In a last ditch effort to help my sellers who are upside down on their loans and can't pay their mortgages with Downey Savings and National City, I contacted Mortgage Resolutions to see if they can help my clients.

Mortgage Resolutions offers, according to them "as full complement of services designed to assist homeowners, agents, brokers and mortgage lender/services in working through delinquent and At Risk mortgages." For a fee of 1/3 the agent's sales commissions, they would have handled all the nitty-gritty details, contacting the lenders, processing the paperwork, etc.

DOWNEY SAVINGS: Foreclosure preferable over short sale?

Upon mentioning that the first lender is Downey Savings, and that Downey sold the note to private investor, I was told that this is NOT DO-ABLE. Downey Savings won't approve short sale. Sadly, they promote themselves as "The Friendlier, Easier Place to Bank". HA!

The second lender, National City said they will accept 15% of the value of the loan, provided that the homeowners pay the difference. Another case of misrepresentation since this bank's motto is "Banking Made Simple."

SHORT SALE IS NOT APPROVEDIt's heart-breaking to have to tell my sellers that I can't help them. All I could do at this point is to give them referrals to bankruptcy attorneys. Because at this point, the end seems to be foreclosure and bankruptcy.

San Francisco Chronicle Headline today: Foreclosures Hit A 20-year High

Pacita Dimacali — Wed, 23 Jul 2008 19:58:00 GMT

We know the foreclosure activity picked up. We also know that we have brisk activity when writing offers, many times, at a multiple-offer situation.

So it wasn't a shock to see this headline that talked about repossessions in the Bay area soaring. Read the story

In the Bay Area, mortgage companies recorded 18,516 notices of default, up more than 140 percent from a year ago. Foreclosures rose nearly 315 percent to 9,206.
Notices of default, the first step in foreclosure proceedings, rose nearly 125 percent from a year ago during the second quarter, and trustee deeds recorded, which reflect the actual homes repossessed, soared more than 260 percent, according to research firm DataQuick Information Systems.
There were 63,061 foreclosures statewide during the second three months of the year compared to 17,458 during the same period a year ago.
Foreclosures will continue to climb until at least the third quarter of 2009 due to: rising unemployment rates that will apply pressure even to homeowners who secured prime loans, and the expectation that many borrowers soon will face higher payments on option adjustable-rate mortgages.
Lenders are overwhelmed with paperwork and taking longer to issue default notices. Or lenders could be more willing to allow short sales - unloading distressed properties for less than the amount owed on the loan - instead of initiating the foreclosure process.
Among homeowners who fall into default, an estimated 22 percent now escape foreclosure by catching up on their payments, refinancing or selling, DataQuick said. That's down from 52 percent a year ago

They included a link to see what's happening by zip code

What Lenders require when submitting a short sale package

Pacita Dimacali — Wed, 23 Jul 2008 19:48:00 GMT

Lenders appear to be standardizing on what they want the property owners and their realtors to provide when submitting a short sale package for consideration.

Here's the latest list of requirements I received from a lender. What's different about this from the other packages is that this requires information on activities realtors use(d) to market the property. The other lenders didn't ask for this type of activity -- but I have heard this as being required for REOs (real estate or bank-owned).

What lenders want:

Please send ALL required documents in one packet at the same time or it will not be reviewed.
Bank will not contact you if a required document is omitted.
Turnaround time is subject to the Real Estate Department’s current volume, completion of due diligence and subsequent review and approval.
Upon receipt of a completed short sale packet, turnaround time will be at least 10 business days (probably more like 45 days or more if the package is not complete). **Calls prior to that date for status will not be returned.**

REQUIRED DOCUMENTS:

Copy of the Contingency Sales Contract or Purchase Offer Contract -This form will demonstrate that a prospective buyer has made a purchase offer. It is not necessary to provide credit information about the proposed buyer, please do not include buyer’s financials.

Pro forma or pre- HUD Statement reflecting that there is $0 funds going to seller, must include payment and commission amount(s) to all parties. NCB must be receiving funds for the offer to be reviewed. -This form shows the breakdown of funds from the sales price. The bank requires an actual federal HUD-1 form, not a title agent’s Estimated Closing Expense Form.

Copy of the Realtor’s Listing Agreement. Agreement must be signed -This is the contract between the Bank’s Customer and the Realtor giving the realty company permission to place the property on the market.

A copy of the listing activity -This would be a listing of all sales activity regarding the subject property including showings, open houses, and advertising efforts. This is the Realtor’s opportunity to provide relevant information regarding marketplace challenges, including obstacles to sale as well as demonstrative scaled reductions in offering price and marketing fees.

Authorization to release information to the Realtor. Form must be signed. -This letter will be written by and signed by the Bank’s Customer allowing the Bank to discuss and/or release any info to the Realtor pertaining to the subject property.

Letter of written authorization to perform and interior/exterior bpo. Must be signed. -In order to perform an interior/exterior appraisal the Bank will need a written ok with a signature by the Bank’s Customer to perform the inspection. There must be a telephone number provided with a contact name so that an appointment to access the property can be scheduled. The letter must specifically state that the Bank’s Customer gives his/her permission to complete an interior/exterior appraisal of the subject property.

Hardship letter from our customer -This will be a letter drafted and signed by the Bank’s Customer stating the reasons and/or hardships that led to the need for a Short Sale or Settlement.

Financial Statements/Asset Information -This includes, but is not limited to, six months of bank statements, W-2 forms or 1099 (or any tax forms), last two pay stubs, 401K statements, and IRA statements for all signers. If self-employed please highlight on bank statements when deposits have been made.

Reality check: 2 % of homes are foreclosing/foreclosed. Should we panic?

Pacita Dimacali — Fri, 30 May 2008 21:49:00 GMT

Doom and gloom news are always sensationalized. So from time to time, it helps to have a reality check.

Kudos to First American Title Company who shares with us the Market Watch newsletter by a dynamo of a woman, Carole Rodoni. Carole is a sought-after speaker (and the much-revered ray of hope for the battered northern California market). We share this info with our clients, and everyone appreciates it!

She points out the following:

There may be close to 2 million homes going into foreclosure, but there are 110 million homes in this county. And 46% of those homes are owned free and clear.
Sales, compared to last year, were still down 14.2%, and median prices are still declining, down 26.4% to $530K.
GOOD NEWS: Sales in the San Francisco area show an increase in Aparil 2008 over March 2008. Sales were actually up 33.3%. This is the first increase we have seen in 6 months for the area.

She writes: "There are two sides to every transaction --- one selling, one buying. And right now, the market favors the buying side. So while many will avoid the market, sme will realize the timing is right. Why? Get in; get all the tax benefits; give it time to appreciate (at 3-5 years) and you'll do fine. Others will look bacn and say, 'If only we had bought back then.' "

Thanks, First American Title, for giving us Carole!

Twice today: Agents tried to discourage me from submitting offers on short sale and trustee sale listings

Pacita Dimacali — Sat, 10 May 2008 06:21:00 GMT

I'm incensed!

Twice today, I was nearly rebuffed by two agents whom I called when I tried to submit my offers.

The first one was an REO. She said she already received an offer last night, and another one this morning --- as if two was enough. She tried to discourage me from submitting an offer since she thought the ones she had were good enough. I insisted that she present my offer since there isn't an accepted offer at this time. To make sure she submitted my offer, I asked that the bank acknowledge receipt.

The second was a listing already scheduled for a trustee sale next month. The agent did everything he could to discourage me, saying the seller has already received six offers and that they were forwarded to the lender. I stood my ground that if my offer turns out to be best of the bunch, that the lender would want to know. Turns out that the agent thinks he'll have a hard time getting hold of the seller and getting him to review my offer. So it's all about HIM! I reminded him that as long as there is no accepted offer, that it is his responsibility to submit/present all offers.

But geez.....why do I even have to nearly beg to submit my offers?

I know that several REOs are getting multiple offers. But it still shouldn't be the agent who decides when to stop presenting offers. Or am I wrong?

New restaurants in Alameda bring a taste of Italy, Cuba and Vietnam

Pacita Dimacali — Sun, 04 May 2008 19:29:00 GMT

Alameda, in spite of being a small island, has its share of restaurants that tickle the palate. Whenever we want to go out and get something to eat, we fight the urge to go off the island because there are so many to choose from. When I meet new clients who don't know much about Alameda, I take them to different restaurants so that they will see and taste for themselves what Alameda has to offer.

Here are the three newest restaurants in town. Life is good!

ITALIAN - Acquacotta

The newest addition is AcquaCotta http://www.acquacotta.net/ on Webster Street. They don't take reservations, so we ventured on a Saturday night at 7 pm and waited for a table. It was packed and noisy (concrete floors). But we didn't mind the wait because the bartender was such a joy. She kept us all entertained. When we couldn't make up our minds which wine to order, she let us taste two of our choices before we settled on what we wanted.

As delightful as the bartender was, we can't say the same for the waiter who may either be inattentive, inexperienced, or simply not good. He let our food get cold before he brought it out. As good as the food was, it was hard to overcome the fact that it had to be re-heated.

CUBAN - Havana

Havana's is presented to us as a fusion Cuban restaurant http://www.havanarestaurant.net/alameda-contact.html on Park Street. The first Havana is in Walnut Creek. Because we're from Florida, we are always looking and craving for good Cuban food. What we have is "sort of" Cuban. The nearest that came to what I remember as good Cuban food is their Ropa Vieja. This place is always rocking. We like the retro feel of the coctail bar, the pitchers of mojitos, the colorful pictures of life in Cuba. Some of the appetizers were tasty, and our personal favorite is the crab cakes.

VIETNAM - Dragon Rouge

People will likely disagree, but I thought the food at the Dragon Rouge http://dragonrougerestaurant.com/ on Encinal Avenue is better than Le Colonial in Oakland, and the people are less pretentious. I like the fact that three cousins started this restaurant to showcase their mothers' culinary skills. It's a family focused labor of love.

We thoroughly enjoy their signature Phantastic roll, anything curry, anything lemon grass....as a matter of fact, we've enjoyed everything we've ordered. There is a good selection. It isn't the usual Vietnamese fare of long lista and variations of the Pho, but if Pho is what your crave, it is great here, too. Since Dragon Rouge opened, I haven't ventured to Oakland for Vietnamese food anymore. Why bother? We have a terrific one right here.

Antiques Faire by the Bay --- first Sunday of every month

Pacita Dimacali — Sun, 04 May 2008 19:25:00 GMT

Folks who haven't yet discovered Alameda may want to come to one of the most fun events in the island -- the monthly Antiques Faire by the Bay http://www.antiquesbythebay.net/. It's billed as Northern California's largest antiques and collectibles show with over 800 dealers. According to theri website, everything sold at the show must be at least 20 years old, and no reproductions are allowed.

Whether you're a serious shopper or just want to hang out, this is a good place to be, especially with the City of San Francisco and the Bay as the backdrop, and with the wonderful climate. It's also a good excuse for people to get on their bikes and ride to Alameda Point (some folks from San Franciscos bring their bikes aboard the ferry for this event).

Here's what San Francisco Chronicle said about this faire: "Come early, Antiques Faiare is a buyer's market"

It's a bargain shopper's, home stagers' dream...all these wonderful stuff in one place!

And after you're all shopped out, go to Rosenblum's Cellars next to the ferry, for their wine-tasting until 6 pm.

This doesn't seem right....Short sale listing agent sent all offers directly to lender, bypassed seller.

Pacita Dimacali — Thu, 01 May 2008 04:53:00 GMT

I submitted an offer on a short sale listing last week. I thought it was a strong offer --- full price, 10% down payment, 1% initial deposit, AS IS, standard contingency periods.

When I followed up with the listing agent to find out what the seller would like to do --- accept, counter offer or reject --- it appears she bypassed the seller. She told me she received four offers. So she decided to send all offers directly to the lender.

The seller still owns the property and still plays an important part in this process. Furthermore, the seller is her client, so her initial fiduciary responsibility is to the seller. She could have advised the seller to accept/counter/reject the offer. And after there is an accepted offer and back up offers, then and only then should she forward the offers to the Lender.

We recognize that the lender makes the ultimate decision, regardless of first or back up position, but the Seller still has a stake in this process. And again....it's still his property.

24% of listing are short sales, and 22% are foreclosures in Alameda and Contra Costa counties

Pacita Dimacali — Sun, 27 Apr 2008 07:55:00 GMT

As of today, in our local MLS. there are 12,041 active listings of which 2636 are REO (bank-owned) or 22%, and 2852 are short sales or 24%.

Siince January 1, 2008, 1151 REOs closed, compared to 102 short sales.

Because of the painfully slow process of getting an acceptance, rejection or counteroffer to a short sale offer, I am more inclined to look for REOs for my clients who are interested in such properties. However, seeing that there are more properties that are on the short sale list, I don't want them to miss out on these either. As long as we set expectations that this type of transaction will involve a long waiting period, and that other buyers may submit offers that are better than ours, my clients are fine with continuing to look while they wait.

Along the way, I consulted with the California Associate of Realtors legal department about back up positions, etc. According to her, even if my client is the first accepted offer on a short sale and other offers are in back up positions, the rankings don't matter to the lender. The lender will make the selection and final decision on the best financial outcome for them regardless of whose offer was accepted first.

So the advice when writing an offer on a short sale property is to give it your best shot...unless you want to keep playing the waiting game or risk being out of the game entirely.

Writing an offer on a short sale is not for the faint of heart. Patience, patience, patience!

Pacita Dimacali — Sun, 06 Apr 2008 04:16:00 GMT

No matter how many times you try to explain what a short sale is and what is involved, it is always a good idea to set expectations at the very beginning. Then follow up with a written explanation -- be it an outline, an email, a question and answer ---- anything that the Buyer can refer to because invariably, there will be some confusion as a result of short-term memory and impatience. It is so frustrating to get calls repeatedly from the buyer, asking the same questions. It is just as frustrating...(read more)