Don't Let Your House Sale Fall Through!

Please read the attached WSJ article – it has some good reminders to help close more deals.  Here are a few additional thoughts.

1.       Remember what a huge advantage Royal Charter Mortgage offers you.  Financing problems are to blame for 40% of escrows falling out.  Use Royal Charter and you’ll close more deals!

 2.       Prepare for the appraisal and meet the appraiser at the property!  The article suggests that you may want to add a contingency to the contract laying out how the sides will re-negotiate if the homes appraisal value is lower than the sales price.  This is tricky and not good advice.  If your client ever requests this only do it after you’ve obtained verbiage from your Sales Manager.

 3.       Great suggestion to always get inspections and the preliminary title report done immediately!

 4.       Remember, time kills all deals.  Shorten up time frames where possible and if the seller needs to stay in the property for a period of time, close early and have the seller rent back (see your Manager!)

 

 Good luck!  Continue to enjoy the holidays, but don’t forget to work and prospect for new business!!

Lead Base Paint....EPA

As discussed at our recent sales meetings, please open this Wall Street Journal article as further information on the new laws regarding Lead Base Paint imposed by the EPA.

http://online.wsj.com/article/SB10001424052748703460404575244812466388810.html?KEYWORDS=NEW+LEAD+PAINT+LAW#printMode

Also, you have a new General Contract Addendum (paragraph Z2) as of today to help protect you and your clients.

Have a wonderful day!

"Short Sale Coordinators"

Dear Associates,
As mentioned at the Sales Meeting this week, we cannot work with any 3^rd party "Short Sale Coordinators". If you have any questions, please see your Manager.
Attached is a recent email that is a perfect example of a 3^rd party Short Sale Negotiator who makes all kinds of promises. BUT bottom line is their activities range from unethical and unconscionable to illegal. We have been informed by the DRE that several of these companies are being prosecuted in California and that Associates who have worked with them have lost their Real Estate licenses and are also being prosecuted.
Short Sales are a great source of business in our markets, however, they should be managed directly by the Sales Associate.
Again, see your Manager with any questions and thanks for your vigilance. We’re trying to look out for your and the clients best interest.

2008 HomeSteps Supplier Code of Conduct

Thanks for taking a quick minute!
Attached are the guidelines from Freddie Mac (Homesteps) regarding parties who are not allowed to buy any Homesteps listing offered by London Properties. Although this particular attachment is Homesteps’; it is our understanding that the same "Code of Conduct" must be followed on Fannie Mae properties offered by London Properties.
In short, Agents, employees, officers with London Properties or anyone related to us in any way cannot purchase a London Properties Freddie Mac, Homesteps, Fannie Mae REO listing.
Please note Homesteps’ definition of "Suppliers" and that no buyer who has any relationship to a supplier will be allowed to purchase a property.
Although the guidelines at first suggest that parties related to suppliers be disclosed for Homesteps’ approval or disapproval read on and make no mistake. Knowing of such relation, they will "refuse to sell a Homesteps home to any related party of a Supplier, even if such relationship has been disclosed to Homesteps..
We are one of very few Brokers in the Central Valley that have secured Freddie and Fannie business and cannot jeopardize this relationship. They adhere very strictly to these guidelines and in the last 60 days have terminated 3 Brokers in California for not following these guidelines.
Thanks again and please see your Manager with any questions.

Low Rates Make Now Good Time To Buy!

Here's one of the articles we talked about at the sales meeting this morning. Central Valley housing is amongst the lowest in the Nation, with low interest rates, NOW is the time for buyers to BUY!

Transition Assistance Program (T.A.P)

At the Fresno sales meeting this morning we shared with everyone a California cash for keys type program that came out this year to help homeowners with their relocation expenses when they go through a Short Sale or a deed-in-lieu of foreclosure. It is the Transition Assistance Program (T.A.P) which is one of several Keep Your Home Californiafederally funded programs intended to provide eligible homeowners with transition assistance when they can't afford to stay in their homes. The details are attached but basically here is what they say:

1. Up to $5,000 per household in household assistance (cash for keys).
2. This is a first come-first serve program and will continue up to three years or until funding is fully reserved--the reserve is $32,300,000 for this federally-funded program (thank you taxpayers).
3. Homeowners will be required to occupy and maintain the property until the home is sold or returned to the lender as negotiated--it is only for owner-occupied properties.
4. Homeowner must complete and sign a Hardship Affidavit/3rd Party Authorization documenting the reason for the hardship.
5. Mortgage loan is delinquent or at risk of imminent default--loans in foreclosure are eligible.
6. Homeowners who own other real property are not eligible　 (they may be concerned about strategic defaults.).
7. Homeowner must qualify as a low-to-moderate income household which they define as 120% or less of the　H.C.D. (Housing and Community Development) Area Median Income for a family of four in the county where the homeowner resides (go to www.hcd.ca.gov/hpd/hrc/rep/state/incNote.html) . They apparently have not yet published the 2011 stats but what shows as the Area Median Income in 2010 for Fresno County and Merced counties for a family of four is $56,300 and $59,500 for Stanislaus County. So 120% of $56,300 is $67,560 which would be the maximum household income for Fresno and Merced counties.
8. The money doesn't go directly to the homeowners but rather　it is　sent to the loan servicer subject to the servicer approval of the short sale or deed-in-lieu.
9. To start the process, Homeowners simply need to go to their website of www.keepyourhomecalifornia.com/qualify.aspx and answer six questions (see attached print out page of those questions). Someone will analyze their answers and will then be directed to "Next Steps" for the Keep Your Home California program or to other options for additional help.

Hope that we will be able to help some of our Short Sale sellers to make the transition to their next household with these available funds for qualifying households.
Patrick

CA Income Limits for 2010 

T.A.P. Transition Assistance Program