Pura's Blog

I'm back!!!  Before I get started, I want to give big kudos to those RE professionals, who have posted some very insightful and useful information on their blogs.  I enjoy reading them as much as enjoying posting on my own blog.

The news about the RE market continues to make headlines and so does the ongoing woes of our economy. BUT, it seems that Buyers are really trying to do their part and are jumping back into the market, which would undoubtedly help stimulate the economy and boost the consumer confidence. 

However, lenders are in retreat mode.  As I stated on earlier postings, it is no longer a matter of a solid work history and a desire to buy.  Buyers have to be able to show commitment - meaning a down payment and good FICOs and no late pays and, and, and....  The 100% financing days are becoming nothing more than a mere memory of the not so long ago, out of control booming past and will soon fade into the sunset along with nameless subprime lenders and the other casualties of the market.

It is understandable that lenders fear getting burned again by over leveraged home buyers, but now the newest group of first time home buyers are being shut out; not because of credit worthiness, but by the indiscretions of the X-subprimers, which include many lenders, who green-lighted many rocky loans.

To all the Buyers, who are seriously looking to buy, don't let the grueling lending process dissuade you.  It is your time to make a great deal.  As carefully as you are looking for the 'perfect home', be as persistent and diligent in getting your financial house in order: keep documents at the ready, pay your bills on time, don't overspend and do not make any employment moves right before or during your RE transaction.  Most of all, find a Realtor to represent you. Your Realtor will be your best asset and can help the stress of buying your new home a cake walk.

I take great pride in being a Realtor and absolutely love the profession. However, I don't enjoy people working in the profession when they are not qualified to do so. Therefore, I am compelled to write about the dark-side of the business.

It is unfortunate that in the midst of the market climate, there are those unscrupulous individuals that are performing real estate services that are not licensed to do so. 

I applaud capitalism. It is a fundamental element of an economic paradigm, which has allowed our country to reach its standing in the global community.  On the flip side, there is greed.  Greed benefits no one except the person involved in the greedy practice. It breaks down business ethics, the profession and blemishes those of us, who are licensed and work hard to champion the interest of our client/s.

Here are my tips:

Be diligent and ask questions.  

If you go to a mortgage broker, make sure the person originating your loan is a licensed real estate agent. There are those who state they are "assistants."  An assistant cannot take any information relating to your finances nor discuss loan products with you.  Only licensed agents can perform those functions.  Check out the person you are dealing with. The following link is meant for consumers to see if you are dealing with a licensed professional.  http://www.dre.ca.gov/cons_home.html 

The only way an individual can work without being licensed in lending is if the company is operating under a CFL license - California Finance Lender license. See link below http://www.corp.ca.gov/about/broker.asp

As to real estate services, one must be licensed to perform real estate services - period! There are no exceptions.

Be aware of who you are dealing with.  There are still predatory practices occurring, which is not good  for the consumer or for the profession.

Please call me is you have questions.  Remember, the best con artists are the ones who are the most convincing...how else would they take advantage.

"A wolf in sheep's clothing"...that old adage still holds true.

Wow, I am really energized about how banks are changing their stripes when it comes to short sales.  With the financial sector of the market being savaged and investors bailing, lenders have awakened from their self-induced stupor and have come to the realization that they must 'play nice.'

The personnel in the loss mitigation and dispute resolution departments have become much more receptive to making deals happen.  There are now systems in place to make sense of the madness. This is absolutely good news.  Instead of adversarial posturing, there is a new wave of inviting, friendly and helpful dialogue occurring. 

If you have put an offer on a short sale or contemplating in doing so, sunny days could be ahead for you.  Obviously, lenders are not gifting houses.  But...put in a reasonable offer and you might be pleasantly surprised with an acceptance and faster turnaround.

I guess there is a silver lining to every black cloud. 

All I can express is that we are in uncharted waters.  The economic forecast for the near future is bleak, but looking at the positive, we can use this period as a reminder to be more fiscally sound in our decision making and to curtail some of the over consumption that has plagued us as a nation.

Capitalism is great, but everything, including spending, must be measured.  I believe we will see people schooling the upcoming generations into saving a little something 'under the mattress'.  Many of our senior citizens reflect upon growing up during the post-depression era and how those slim-times changed their view on money and spending. 

I hope we learn the lessons from this radical period of jolting financial blows.  As in gambling, the house should always keep more than what it pays out. Here is a mantra: Spend, but don't overextend...

I have received some emails asking about short sales. 

Here is a cursory overview of short sales.

What is a short sale?  

The word 'short' simply means that the lender is accepting an amount lesser than what is owed on the present mortgage/s. The bank/lender makes the final determination on the acceptance or rejection of an offer.

Why does it take so long to get a short sale through?

Many properties have more than one mortgage.  Every lender, of record, must be on board in accepting the offer.  If there is not a consensus between the lenders, the short sale could fail.  Moreover, the offer can simply be too disproportionate to the amount due on the mortgage/s.  If it does not make financial sense to the lender, the deal could die on the vine.  

Remember, this is a very simplified overview of a short sale.  Look for an agent who is able to walk you through the process.  It will help alleviate stress and keep you focused in the end result, which ultimately could land you a really great deal!