2. Write a good offer. Banks are smart and they expect to get the highest price for the property compared to its condition and location. If it’s a great property and in great condition, make a great offer. The banks want to know A) How much money will they get and B) When they’ll get it. They don’t usually issue counter offers either so you will only get one shot at it.

3. Get Qualified with the Bank’s Preferred Lender. Have your financial paperwork in order and send it over to the preferred lender ASAP to get the pre-qualification letter generated.

4. Don’t Change the Contract Addendum. Banks have addendums and you should read them. Understand this, you don’t have the right to change them. If you try, they’ll likely reject the offer altogether. The banks have policies and procedures that they follow and trying to change them for one transaction will not get you anywhere so don’t try it.

5. Do your inspections early. Banks shorten the inspection time so have your inspector lined up and ready to go on short notice. Always do an inspection!

6. Close the transaction On Time. Banks operate on strict timelines and you need to close on time or you’ll likely incur costly daily charges (called “per diems”).

Now is the time to buy. Inventory is low and this home will not last long.  We can arrange private showings today.

Don’t miss the opportunity to own this upgraded home in Raymond Hills of Fullerton.  Located in the Troy High School district, this home has too many upgrades to list….but here are some of the highlights.

Gourmet Kitchen with Granite counter tops, dual ovens, built-in fridge, dual stoves, formal dining room, living room, two sided fireplace, remodeled bathrooms, lots of closet space, new interior doors and dual-paned windows, paver driveways and walkway, manicured yard with a variety of fruit trees.

Contact us today for more information.

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They did everything right. They had heard about the ability to get a loan modification through a government program and successfully got a loan modification from their interest only loan into a new loan serviced by Flagstar Bank on behalf of Freddie Mac. The problem with the new loan, however, was that their monthly payment increased by over $400. They were already struggling, had hoped for a workable solution with the loan modification, only to realized it would be impossible to carry on.

We enlisted the help of a trusted Short Sale negotiator here in Orange County and started to work on a short sale.

On April 7, we listed the home for $349,000 and within days received three full price offers. By April 15^th we submitted our first offer to the bank for $350,000.  We followed up and waited.

And waited.

The first-time buyer credit ended in June and we still had not heard anything from the bank.

Finally, our negotiator got word from the bank that they are processing short sales based upon the foreclosure date.  In other words, if the sellers weren’t behind on their payments and didn’t have a foreclosure date scheduled, their offer would never be reviewed.

My sellers are good people, both with jobs, struggling to survive, but trying to do the right thing. They were pulling money out of savings every month to make the mortgage payment and they were making it until June of 2011 when the bank said they would not review the file unless a foreclosure date was set.

Missed payment number one, number two, number three.  They continued to miss payments and the process continued to drag on without any notice of default being filed. That meant no foreclosure date.

Three months dragged on into six months and then a year with no answer from Flagstar. Our follow up calls were responded to with “we’re working on it” and “it’s under review” for over a year.

As you can imagine, the buyer lost patience and pulled out. So did the second buyer, and then the third, and fourth as we waited.

Every time a buyer backed out we had to re-list the home and search for a new offer.  By this time, because the first-time buyer credit expired, demand for condos like this one dropped dramatically.  Every time a buyer backed out, we had to lower the price.  We found that buyers didn’t want to offer more than $280,000 for the property. So after a year and two months, in June 2011 we submitted the the highest offer we had received ($280,000) the bank.

And we waited.

After six weeks, in July of 2011, Flagstar issued a counter offer in the amount of $315,000 to the buyer and gave the buyer three days to respond.  The buyer increased her offer to $290,000 and we submitted the offer to the bank. We hoped for a quick response, but our hope was in vain.

Four months later, in October, they rejected the price of $290,000 and we immediately challenged them on the price by submitting new sales comparables.

On December 27, 2011 they finally agreed to a sales price of $290,000 and we were told that we were to close escrow no later than January 31, 2012.  After much negotiations and a personal letter to the President of Flagstar bank from the seller, we finally got what we had been waiting for! Unfortunately, the buyer lost patience and was no longer interested. Back to the drawing board to look for a new buyer!

By the first week in January we found a new buyer who matched the exact terms of the approved offer and was paying all cash. We certainly could close by the January 31^st deadline and submitted the new offer to Flagstar for a new approval letter with the new buyers name on it.  Like most banks, the buyer must be approved by the bank.

Again we wait.

On February 9, 2012 we get a revised approval letter with the new buyer’s name on it and we successfully close escrow on February 14^th, 2012.

Twenty two months. That’s was it took to get this short sale approved through Flagstar Bank after a successful loan modification.

Because of the delays by Flagstar Bank, Freddie Mac lost an additional $100,000 that they otherwise would have received had the short sale been approved in the first 90 days like many banks do. They lost $60,000 from a reduced sales price and over $40,000 in missed mortgage payments because they refused to process the sale while the seller was current on their mortgage.

This transaction reveals what is wrong with our real estate loan modification and short sale system and shows how, in the end, everyone loses.

Thankfully, the sellers found a rental home from an owner who was willing to take them even though their credit had been destroyed. They are now planning on expanding their family and moving on with life, thankful that they can finally put this behind them.

Do you have a similar story? Let us know.

Intro video by Aaron Zapata, MBA, Broker, CRS, SRES, CHS with Prudential CA Realty, offering to meet with clients who are considering selling their homes who have a loan balance higher than the value of their home.

Do you need to do a short sale? You need the facts. Call Aaron Zapata today to see if you should sell your home or if other options will work best for you. Contact Aaron today at 714-904-7877.

Your house didn’t sell the first time?

If you put your home on the market last year and the home did not sell, do you know why?

I offer a free, no obligation, home marketing review and pricing analysis for homeowners who are reconsidering selling their home, but who need the ability to reevaluate the market without the pressure of a Realtor telling them to sell.

I believe that selling a home is a personal choice that should not be entered into lightly.  I will consult with you to evaluate why your home did not sell in the past, weigh your options now, and help you decide what to do. If you stay, great! If you decide to move, great! If you decide to rent out your house, great!

My goal is to educate you, not pressure you.

What You Need to Know about Cancellation of Mortgage Debt

By Linda Goold -RISMEDIA, Monday, March 12, 2012— This column is brought to you by the NAR Real Estate Services group

A lender will, on occasion, forgive some portion of a borrower’s debt. The general tax rule that applies to any debt forgiveness is that the amount forgiven is treated as taxable income to the borrower. Some exceptions to this rule are available, but, until recently, the borrower was required to pay tax on the debt forgiven. A new law enacted in December 2007 provides relief to troubled borrowers when some portion of mortgage debt is forgiven. However, this relief expires on December 31, 2012 and NAR will be working to obtain an (read more)

What is a LIVE CMA? It’s an up to date Comparative Market Analysis for your home that you can look at whenever you want.

You see, when it’s time to sell your home, Realtors will look at the homes like yours that are within 1/5 mile of your home.  I’ve set up an online system that will provide you this data at any time, just by logging on and viewing the site that is specifically set up for your home.

What information will you get?

• 24 Hours Access to all Active Listings, Pending, and Sold properties within 1/5 mile of your home.

Based on this info, you will be able to get a feel for what is happening in your neighborhood.

Contact me by completing the contact form below or by emailing me your home address to Aaron@AaronZapata.com.

Even if you are not planning to sell your home any time soon, you can email me and I’ll create a site just for you.

I look forward to hearing from you!

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1. Print out the PDF http://www.aaronzapata.com/wp-content/uploads/2012/03/April-6-2012.pdf

2. Complete the Bottom Portion of the Entry Form

3. Mail the Entry Form to 2415 E. Imperial Hwy, Brea CA 92821

We will be drawing a name on April 6th.

Good luck!

To Whom It May Concern:

Aaron Zapata has been a great realtor in the selling of my aunt’s home in Burbank, California.  He was referred to me by my son, a realtor in northern California.  Aaron is a man I could rely on and trust right away.  He is honest and upright.  His knowledge of what price and who to target our house for was invaluable.  He connected with the right buyers and sold the house very quickly.

I would recommend Aaron to anyone who wants to buy or sell a home.  He keeps in touch and listens to your thoughts and ideas.  He is one of the good guys.

Rick Reynolds

Ventura, California

Today, as I was out door-knocking a desirable neighborhood, looking for a home for my buyers, I saw a wrinkled piece of paper in the gutter.  I don’t like litter, so I picked it up and was going to toss it in the next garbage can.  When I looked at it, I was shocked.

Listed on one side of the sheet was a list of debts owed.  There wasn’t any personal data on the sheet but the list was obviously a list of credit card debts.  At the bottom was the total amount owed; $69,000. SIXTY NINE THOUSAND!

Please, if you have that much personal credit card debt, let me encourage you to seek professional credit counseling help.  Debt can bury you and ruin your dreams.

Thankfully, I have some great referrals for credit counseling services. These are people I trust and know.

I know times are tough right now, but living on credit cards is not good.  Don’t wait until it’s too late.

Call or email me today for help.