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What our State Brokers have to say. |
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Robert Milligan Greetings from the FL broker! While prices here have not yet stabilized, I'm happy to report sales volume is greatly improving and inventory levels are declining. A good portion of the properties we deal with down here are bank owned or REO properties. These properties are often great opportunities for your clients to get a fantastic deal on their next purchase. In dealing with these properties I've discovered a few avoidable pitfalls that I think it's important for you to know about.
First, I've seen buyers meet their deadlines on the financing contingency only to discover their time period has passed that they qualify for the loan but the property does not. On all REO's I suggest writing into the contract "Property must qualify for financing at no cost to the buyer."
This will help eliminate any confusion about who retains the escrow deposit in this type of scenario. Next be aware that most bank addendums provide the bank, or seller with the right to withdraw from the contract and sell to a different buyer at any time prior to closing. In school we're taught that contracts are unilateral, but think again!
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We asked our Brokers to submit a story for the newsletter. Their responses are below. |
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Making Home Affordable Program to include Short Sales Yesterday the U.S. Department of the Treasury Secretaries Geithner and Donovan announced new details on the expansion of the Making Home Affordable program to include short sales. Under the plan, incentives would be provided for mortgage servicers and borrowers to pursue short sales. Financial incentives include $1,000 to servicers for a successful short sale, and borrowers may receive up to $1,500 to assist with relocation expenses. Reasonable and customary real estate commissions and selling costs will be permitted and the servicer will agree not to negotiate a lower sales commission after an offer has been received. Program 3648, a nationwide initiative originally based on HR 3648 the Mortgage Forgiveness Debt Relief Act, is leveraging this and other legislation to help as many homeowners as possible avoid foreclosure with a primary focus on short sales. Program 3648 certifies Realtors to service a territory, where they typically receive 200 Distressed Homeowner Leads per month to contact with Program 3648's help. All short sales are processed by Program 3648's processing center for streamlined approvals, and to allow our Certified Program 3648 Representatives to stay focused on helping as many homeowners as possible through listing and selling their properties. Average short sale turn-time in Q1 of 2009 was 45.9 days. The territories are filling up very quickly. |
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Lastly, I've seen quite a few instances where banks attempt to use deeds other than warranty deeds when transferring title, and many require you to close with their title company. Be cautious about strange looking deeds because I've seen several instances where these deeds will transfer ownership, but do not necessarily provide a marketable title to your client. In this situation, I strongly recommend hiring a real estate attorney to review the deed prior to closing.
It may cost a few hundred dollars, but it's money well spent to ensure your client doesn't have any trouble when they sell the property in the future.
-Robert Milligan FL Broker Click Image to learn more... |
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Randy Bacon Id like to open with a quick snapshot of where we see real estate in SW Washington/ Portland Oregon Market. Real Estate 101 tells us its all about supply and demand, and for the first time in a while we are seeing some numbers that can give us some encouragement.
We have been struggling to find a bottom and have been somewhere in the lower part of what we can only hope is close to the bottom for |
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months now. This month's market data gives us a glimmer of hope. Inventory is at the lowest point since Fall of 2007, and has been reduced by a staggering 34.3% since January alone. That's a big number.
As important, March Y/Y Months of Inventory saw the first reduction since August, 2005. It's been almost four years of continually advancing inventory ratios. This is a market data perspective. But, I think we may finally be getting some relief from over supply of inventory.
There WILL likely be another (smaller) wave of short-sales and foreclosures, and that is certainly setting our current pricing and will continue to work negatively on values. |
