While I think the inability to be in instant contact with my clients and my office is the “kiss of death”, the one thing we know for sure is that almost every mobile phone service package comes with text messaging. When discussing alternatives like the benefits of communication through SMS text messaging, the negative feedback centers on having difficulty typing a text message on an annoyingly small cell phone key pad. Many agents and brokers are not aware of the availability of SMS Text messaging which can be sent as an email from any computer and received as a text message on the recipient’s cell phone.

In the spirit of conducting good business and in mutual cooperation with our fellow real estate practitioners, below you will find the email format for SMS text messaging for the major cell phone service providers. The person sending the email will need to identify the recipient’s service provider, which can be done at www.http://fonefinder.net/. Insert the recipient’s phone number as shown below and send your message! You can then easily be in instant communication with the less tech savvy agents or office personnel.

It will save you much time and frustration, especially if you have stubby fingers like me!

Cingular: phonenumber@cingularme.com

T-Mobile: phonenumber@tmomail.net
Virgin Mobile: phonenumber@vmobl.com
AT&T: phonenumber@text.att.com

Sprint: phonenumber@messaging.sprintpcs.com
Verizon: phonenumber@vtext.com
Nextel: phonenumber@messaging.nextel.com

Good Selling!

What is a HUD 1, and why is my lender always saying they need this HUD1 before they can order Docs???  The HUD 1 is the document that summarizes all the costs from the lender to generate the loan, this includes what your closing costs will be and will show any credits or contributions from the Seller, if any, and Escrow costs. This is the final document that needs to be signed off (approved) by the Seller and delivered back to Escrow before the docs can be ordered by the lender!

What happens and what does it mean when my lender tells me they have ordered Docs?  This means that they have requested your final loan documents and are waiting for all the loan documentation to be compiled and emailed to them from their internal loan document department. When the documents arrive they will typically be reviewed by the loan officer or processor and escrow to verify that everything is correct. Once Escrow has received the Lender Documents, they typically require 24-48 hours to review the documentation and prepare all of the additional documentation required internally by the Escrow.  Escrow will then call you to schedule an appointment for you to come in to their office and sign all of the required paperwork.  Feel free to call Escrow to get your appointment scheduled so they know you are in a rush to sign! They may not schedule you at the time you call, but they will have you on top of the list to call and schedule you in the time-frames you have provided them when they are ready!  Typically, loan documents are signed at the Escrow office, however sometimes a signing may be scheduled at your lender’s office or another location of your choosing – when this occurs the services of a mobile notary are required and there is typically an additional expense for their services.  

What happens after I sign my loan documents, and how much longer do I have to wait?  You must make arrangements to wire your funds to close after you sign your loan documents, if you have not done so already.  Once the documents are signed, they are sent back to the funding department for review.  This typically takes 24 to 48 for review and the satisfaction of any prior to funding conditions – these can include a verbal verification of employment and proof of homeowners’ insurance. Once all conditions are satisfied and signed off,  your lender can set up the file for Funding! Once Escrow gets confirmation of the funding then Escrow can set your file up for Recording.  Both of these processes can take 24 to 48 hours.

What do you mean Funding and Recording – I just want my Keys!  Once the Lender receives the loan documents back from Escrow  they must Fund the loan, which means that the money you are borrowing is electronically transferred to Escrow.  When they have confirmed receipt of all of the money required to complete your purchase they will arrange with the Title company to record title to your new home in your name.  This will typically occur the following day. In Riverside County the county recorder’s office only records documents once per day – in the morning – on Monday through Thursday.  On Fridays and the last day of the month, the recorder’s office records documents a second time – in the afternoon.  This allows for properties that fund in the morning on those days to record in the afternoon – as long as all of the paperwork is prepared and Escrow knows that you are requesting a “Special Recording”.  You may not receive your keys until everyone has confirmation from Escrow that everything was finalized and Recorded properly. No Funding or Recordings will occur on the weekend because escrow and the County Recorder’s office are closed.

Why should I change the locks on all the doors, it’s expensive and I have spent enough money purchasing the home?  This is to protect your new home and your belongings.  Homes listed for sale, particularly REO properties, have a lot of agents and contractors in and out of your home many with their own key, the previous owner and/or tenant may still have a key to the home as well.  Once you close escrow you want to control who has access to your home, changing the locks guarantees that you control who has access to your home.

Congratulations on purchasing a new home and remember closing escrow is only the end of the beginning of your life in your new home!

Both sexes also clearly prefer it when there’s no roommate in the picture; 62% of survey respondents, men and women, prefer to date singles who live alone.

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1. Does the agent require you to prequalify? Some prospective buyers view this crucial step as a hindrance or unnecessary, but an agent that doesn’t require a prequalification isn’t doing their job. A prequalification determines your price range, loan program and can uncover any number of credit issues that need to be dealt with before you find your dream home and start the mortgage process. A thorough prequalification now will prevent a mortgage decline later on. Your real estate agent is going to invest his time and money in assisting you in finding the right home for you and without a prequalification this is a risky investment. Don’t you want to work with someone who values their own time and will therefore value yours as well?

2. Does your agent ask questions and then listen to your answers? A good agent will ask you several questions – not just about bedroom and bathroom counts, but about how you live and your lifestyle – and then follow up those questions with clarifiers to fully understand what your needs and desires are in a home. An agent who doesn’t understand what you are looking for is going to have a much harder time identifying the home of your dreams.

3. Does your agent take notes? Most agents will take notes on their initial meeting with a client to get background information, prequalification status, etc., but the best agents continue to take notes throughout the sales process. They are going to note what you like about the homes you see and what you don’t like and the lifestyle discoveries that will come up while touring homes, but that you may not have mentioned at your initial meeting. Almost every buyer experiences an evolution in what they are looking for in their desired home during the home buying process, an experienced real estate agent tracks these changes and will find you a home or homes that meet your evolving needs.

4. Does your agent show you a manageable number of homes? Some agents become so excited they overwhelm their client with options. It is the agents job to preview the homes and only show you homes that fit your criteria. Your agent should not be seeing a home for the first time when he shows it to you. A good agent previews the homes he finds for you and eliminates the ones that may sound good on paper, but don’t fit your evolving list of needs that he has detailed in his client notes. Again, a good agent values time – both yours and his own. A good agent should show you no more than 7 homes in one day. More than that and neither of you will be able to fully differentiate and recall the homes you toured and your time will have been wasted. Or, worse yet, you will have a nagging “memory” of the perfect home which actually doesn’t exist, but is a combination of several of the homes you toured and you will spend even more time trying to “find” it.

5. Are you comfortable with your agent? The most important intangible measure of a real estate agent’s job performance is that their buyers are comfortable with them and can be honest and truthful in their feedback. A prospective buyer that “likes” every home they see, but doesn’t find one to buy is not helping themselves or their agent. The agent needs feedback on what isn’t working for the buyer with the homes shown. Without feedback, he is blindly guessing at the buyer’s wants and needs and wasting both his own and his client’s time showing homes that don’t measure up to the buyer’s criteria.

Buying a home is a big investment in time and money and you will live with your decision for years to come, spend the time now to choose the right agent who will ensure that the home you buy is the right home for you and your lifestyle.

Ever since foreclosure rates hit record levels, many homeowners, like you, are turning to short sales as a way to avoid losing their homes and crippling their credit for up to 10 years. In fact, CoreLogic a company that tracks real estate trends reports that short sales have tripled in the last 2 years and now account for nearly 20% of all transactions.  You are not alone in this crisis. You can get help. The earlier you get started, the easier the whole process will be for you and your family.

What is a Short Sale?

A short sale is when the bank agrees to accept less than what is owed on a mortgage  that is secured by real estate.  It benefits you, the seller, by avoiding the stress of foreclosure and has no out of pocket expenses to you. When a short sale is handled correctly you can walk away with your debt paid in full, without doing the bank any special favors. You are able to stay in your home longer, while the sale is negotiated with the lender(s), and you may even be eligible for monetary relocation assistance through the HAFA program. Also, if you are worried about repercussions you can get a signed agreement from the bank that guarantees they will not come after you for more payments (permanently removing your liability). In many cases, the lender can benefit as well because they can recover a greater percentage of the debt owed instead of paying for a costly foreclosure.  It is important to remember, that this is not always the case and the lender can refuse your request for a short sale.

You may be eligible for a cash incentive!!

For more information regarding cash incentives, please visit www.makinghomeaffordable.gov.

Although all lenders have varying requirements and may demand that a borrower submit a wide array of documentation, the following will give you a pretty good idea of what to expect.

RERS can help with your short sale transaction and answer any questions you may have.  We will provide you with a courtesy consultation with one of our short sale agents outlining the step-by-step short sale process.  To set up a consultation you can contact us at 800/274-2129 or info@rers.org.

Take two hours of your day and learn the CORRECT way to SELL and CLOSE HUD Homes. If you don’t, you will struggle with these transactions!

“How to Successfully Sell HUD Homes”

This is an invitation to a FREE “on-line” HUD-Pemco Training Seminar

Date: Wednesday January 25, 2012

Time: 10:00am-12:30pm

1.  Click the link below to join the training meeting.

https://www1.gotomeeting.com/join/454539961

AND………………………

2.  Join the conference call:

Conference Dial-in Number: (308) 344-6400 (Long Distance Charges Apply)
Participant Access Code: 484683#

Buying a HUD (U.S. Department of Housing and Urban Development) home is a great way to purchase a home, and can even save you some money!  There are many steps along the way to getting your dream home though, and you have to be careful and do your homework on the process of purchasing a HUD home.  Here are some pointers to help clarify the process of buying your first HUD home:

Where can I find available HUD homes in my area?

• You can visit hudhomestore.com, HUDPEMCO.com, or RERS.org for current listings of available HUD homes; or contact a HUD registered agent near you.

Can I see the property before bidding?

• Of course!  Many agents will require that you are pre-approved before going to look at a property, but are more than happy to show an interested party.  If you see one of our signs we would love to show you an available property.  You can visit rers.org or contact us at 1-800-274-2124 for available properties.

Should I be pre-approved first?

• You should obtain pre-approval for a mortgage when getting started on your home search.  A real estate agent can better assist you when they know what price range you are comfortable with, and this will help them refine their search for your dream home.

When can I bid on a HUD home?

• Owner occupants can offer a bid on a HUD home during the first nine days.  HUD will look at all bids on the 10^th day and decide based on which offer gives them the highest net profit.  If there are two or more bids at the same net to HUD the offers will go into a lottery and the bid will be awarded based on chance.  After the 10^th day if there aren’t any acceptable bids there will be an additional 20 days of bidding where bids are opened and reviewed daily for owner occupants.  After the 30^th day with no acceptable bids the property is available to investor bids.

When I find a home will I need to get it appraised?

•  It is not necessary to have a HUD home independently appraised, HUD offers an appraisal every 6 months. Your Lender may require a more current appraisal than the one provided by HUD.  Ask your loan officer or HUD registered agent.

Making an offer 

• Buyers will want to make offers based on ‘as-is’ appraisals determined by HUD. HUD will accept no offers that are lower than 50 percent of their appraisal. If you offer more than the appraisal price, you will be required pay the amount of the over-bid at closing, as your lender will base their loan amount on the appraised value of the home.

Is there any way to have my offer considered before others?

• Owner occupants always have first priority; however, if there are not any bids after the 30^th day then bidding is open to all bidders (investors).

How much money will I need to put down?

•  If the bid price is less than $50,000, you’re required to make an earnest money deposit of $500. HUD homes priced greater than $50,000 require a $1000 deposit.

Can I start improving on the property right away?

• If HUD accepts your offer, you cannot make any repairs or home improvements until the escrow transaction has closed and title is recorded in your name.

Buying a HUD home has its own rules and protocols and at times can be tiresome and confusing.   That’s why you need to use a trained HUD registered agent to represent you throughout the process – all of our RERS agents are HUD trained and happy to help! We hope that these tips for buying a HUD home have helped and good luck on your home search!

Have a Lender RUN YOUR CREDIT to find out your FICO score.  If you don’t have a lender, I can help.  As a real estate agent, I work with several well informed and educated lenders.  We can discuss the specifics of your situation and I can recommend one or more lenders that will be a good fit for you and your needs.  This is the first and, often, most important step to owning a home. 

Poor credit is the leading reason why people are unable to purchase a home.  Let’s address this issue first and prevent unpleasant surprises after you have found your dream home.  Additionally, your lender will be able to help you identify the price range that will fit your budget.  Many people focus on what they can qualify for, but the more important question is – what payment will fit your lifestyle?  You want to know approximately what your payments will be, before you start shopping. Your lender can get you on a path home ownership.  If you aren’t ready to purchase now, your lender can assist you in creating a financial plan to get you where you want to be, even if it means you can’t purchase a home for 2, 4 or 6 months from now .  You are creating a plan for the biggest investment in your life!  What an accomplishment!

DO YOUR HOMEWORK and find out what is happening in the local market where you want to live.  The real estate market is rapidly changing all the time.  Ask your Agent if you don’t understand something. Your friends and family mean well and they want to help, but they don’t know the real estate market like a professional! Really they don’t! Research the area you want to live on the internet.  Investigate the schools, community, crime rates, HOA information, whatever is important to you for your life needs, wants and desires!  Learn about standard sales, HUD-owned homes, REO homes, Short Sales, and investor properties.  A professional agent can educate you about all of these types of properties and the unique advantages and disadvantages of each type of purchase. What do YOU want?

SAVE, SAVE, SAVE and get creative about it!  Recycle all those cans and bottles and put the money into savings.   Sell the stuff you have in storage that you don’t need and most of the time, don’t want! This also frees up the monthly storage cost.  Donate your extra stuff, it can be tax deductible! Don’t eat out 5 times a week, bring your lunch to work, car pool when you can and split the gas money.   Are you getting an income tax refund? What can you do differently to save money?  Do you have friends or family that would give the money for you? Think out of the Box! Why do you need to do this? You need at least 3.5% of your purchase price for a down payment, plus anywhere from 6-8% for closing costs.  You may be able to ask for a seller concession to assist with the closing costs, but it is better to be prepared.  What about any unexpected extra expenses that you didn’t expect, especially if you are purchasing a Short Sale. On a short sale, the Seller typically will not pay for anything, even if repairs need to be done on the home prior to the Close of Escrow.  It will be your responsibility to have the home repaired to qualify for your loan. Also, what about repairs that may be needed after you close escrow or even just new furniture for your new home? You want to be prepared for all eventualities.

It’s time to get started in the “Wright” direction.  Please contact me so I can help you purchase now or get you started on the “Wright” path to purchasing your dream home!

Throughout 2011 prices fluctuated to a high of $295,300 but will eventually close out just under $300,000.

Available data supports the theory that overall, California has experienced stabilization in the housing market. However, when we look at specific regions of the state, factoring in new home construction permits, we see a more defining picture.

Continued low mortgage rates coupled with growth in median household incomes (still low by historical standards) helped push the Affordability Index to an A+ grade in December. Negative equity, however, continues to be a hindrance leading to an overall affordability grade of C+. Yes, this means homes are now affordable!

Population growth fueled by immigration will continue to drive demand for housing. From 2000 to 2010, the U.S. population grew by about 10% to nearly 309 million. Of the more than 27 million added to the census in the last decade, about a third were immigrants – both legal and illegal, according to the Center for Immigration Studies.

Nearly 14 million immigrants arrived between 2000 and 2010, while about 5 million left or died, a net increase of 8.8 million. All told, 40 million immigrants are now living in the United States, with approximately 75% of them legally. Consider too that over 70% of California’s opoulation growth is due to births. These families, increasing in size and desiring suburban living, represent millions of potential home buyers.

Add to this the fact that home sales for the period 2007 through 2010 were actually worse than as reported.

Many will preach doom and gloom over this data but the reality is this indicates that we have likely already been at the bottom of the market for ten months or more and will now be “out of the woods” with housing recovery being reported in 2012.

For November, the latest month under the re-benchmarked formula, sales of existing homes came in at a seasonally adjusted, annualized rate of 4.42 million. That’s up 4% from the revised level of 4.25 million in October and 12.2% higher than a year earlier.

That good news followed recent positive reports on new home sales and home construction activity. These pickups, along with historically low mortgage rates, may indicate that “a modest recovery may be underway,” said Paul Dales, a senior economist with Capital Economics.

Additionally, Home building increased in November to the highest level in almost two years, as record-low mortgage rates and a jump in apartment and condo construction boosted construction activity.

Nationally, housing starts jumped to an annual rate of 685,000 in the month of November, up 9.3% from October and 24.3% higher than a year earlier. Building activity easily topped predictions of 627,000 starts economists surveyed by Briefing.com were expecting. Yes, homebuilding still far from the numbers seen in 2005 but at least it appears to be on an established upward trend. Never lose sight of the fact that homebuilding is what guides housing on a national level.

Smart real estate investors always watch the San Diego market as the predictor of what the remainder of the state will experience. YTD Pricing of existing single family detached homes in San Diego dropped only 0.81%. What happens in San Diego eventually trickles up through the rest of the state.

So, stand by for a better year ahead as we predict 2012 will be a productive year for housing in California, particularly in the southern region.

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