If you have completed more than a handful of short sales, then you have no doubt faced the music with respect to property value.  During the course of the short sale, the short sale lender sends out another Broker to complete a Broker Price Opinion (BPO) for the short sale listing. The bank then, in most cases, bases their price on the value stipulated in the BPO. However, often times, there is a slight discrepancy between the value stipulated in the BPO (what the bank wants) and the offer amount (what the buyer wants to pay). In many cases, what comes next is a valuation dispute. And, at some lending institutions, this is much easier to complete than at others 

Bank of America has recently revised their process for valuation disputes during the short sale transaction.

Here is an outline of the new process (courtesy of our friends at Bank of America): 

1.     Tell your short sale specialist that you would like a reconsideration of the value.

2.     Receive an investor-specific, easy-to-complete form from your short sale specialist that specifies all requirements for a successful value dispute.

3.     Fill out the form and attach specified evidence.

4.     Stay in touch with your short sale specialist for results.

5.     Expect a value dispute review within 10-12 business days once all required information has been received.

Here is the evidence you will need in order to support your valuation dispute:

Provide comparables that are recent, proximate (nearby) and similar to the property in question.

• “Recent” means sold within 90 days of the actual value document date.
• “Proximate” varies by location. In a rural area, for example, a home five miles away could be considered proximate.
• You will be able to provide additional notes to highlight characteristics of the comps.

When the dispute centers on property condition or hazards:

• Provide an itemized estimate from a licensed contractor on the contractor’s letterhead.
• Provide photos to illustrate the repair, condition issue or hazard you want to highlight.

If your valuation dispute relates to condition and significant repairs are required (which in turn, lower the subject property’s value), it’s best to have multiple bids in order to support you position. But, don’t expect the bank to pay for all new carpet when there is a small spot on the floor in the living room.

Don’t Eat That!! Famous Words from an ActiveRain Gathering in Annapolis MD

I was truly blessed last night.

I am on a whirlwind trip to Philadelphia, for family reasons, and to Washington, DC for the mid-year meetings for the Council of Residential Specialists (CRS) for 4 days. I had mentioned to Martha Brown, in Annapolis, some weeks ago about coming back east and she organized a group of AR friends for dinner last night at the Severn Inn in Annapolis on the Severn River with the Naval Academy as back-drop across the water.

What a special treat to meet so many people I consider friends but had never met in person – Martha Brown, Richard Iarossi, Margaret Woda, Cindy Jones, Diane Phillips, Chris Ann Cleland, Bridget McGee, plus Pat Kennedy (and her fiancé, Dick, who was chauffeur from DC to Annapolis and back) and Margaret Rome both of whom I HAD met on a prior trip. I also got to meet AR newbie Laura Murray who was soaking up blogging tips.

And, as one would expect, everyone was just like they are on-line!

Of course we talked about our individual markets and blogging, and cameras were flashing much of the evening – individual and group photos were abundant, and once food started arriving it was time for more photos.

“Don’t eat that” became the bloggers’ battle-cry cry of the evening, a warning to fellow diners to NOT touch their food until appropriate photos had been taken, lest the beauty of the presentation be marred by an errant fork, and the precious blog photo ruined forever. Dedicated bloggers don’t let that happen!!

Probably something to keep in mind for your own foodie gatherings and photo ops!

It was an evening to treasure and no doubt others will share their thoughts and photos. Thanks to everyone who braved rush hour traffic and drove some distance to meet-up, and a special thanks to Martha for organizing, and to Pat and Dick for shuttling me about (a total of about 3 hours).

Someone, no doubt, has photos of the entire group before we disbanded!

Serious Real Estate Challenges for Serious Relocation Buyers (Part 1 of a 3-Part Series)

Serious relocation buyers to Carlsbad, or anywhere for that matter, must take a serious approach to their home searching and the overall process. After all, relocation is a tough job with a host of tasks to navigate successfully.

And if you are moving to an unfamiliar area, coupled with other moving challenges (e.g., jobs, family, pets, cars), on top of daily living and home searching remotely, at times it can seem insurmountable.

Here are some tips for your relocation and issues to keep in mind in this 3-part series:

PART 1 of 3

HOME SEARCHING

The Internet is the obvious choice, to learn more about the market and seek out the home that fits your needs and desired lifestyle. Watching the ebb and flow of listings will educate you about market conditions. You can also gain a perspective on what your budget will buy in the new location, learn about the styles of homes that are available, and narrow down the neighborhoods you are interested in.

Photos and videos will play an important role, when included, to provide a more real-life view of homes and neighborhoods. Don’t be afraid to ask your REALTOR to take more photos and videos – I do lots of this with relocation clients.

USE A KNOWLEDGABLE & QUALIFIED REALTOR

Working with someone who knows the local area and market conditions is key. That agent must be someone who listens to your needs and who will be honest with you about the realities of the market in light of your needs, wishes and budget. A REALTOR who works with relocations, and one who has actually relocated a significant distance, will truly understand the issues you are facing and be able to give you some tips.

Ignore the media headlines and their reporting on the housing market – they don’t focus on local market conditions which vary dramatically even within communities. Your agent will (or should) have the local information you need to make the right decisions.

DUE DILIGENCE

Check out schools if they are important to you as they will likely define the neighborhoods you can consider. Visit community websites, and whatever else will help you become as knowledgeable as possible so you can decide where you want to live. Your REALTOR can be an awesome source of local information and should be able to direct you to additional resources for further information on questions that you have (e.g., schools, crime, parks).

STAY TUNED FOR PART 2

Dear Melissa:

We need help.

Rather than let our house go to foreclosure, we got a Realtor® and put the house on the market as a short sale.  We advised our Realtor® that we were interested in applying for the 00 relocation expenses. She indicated that she would apply for that. We neither filled out nor signed an application for this. After two months, there was an offer on the short sale and today, at closing, we asked about the relocation expenses and were told that the bank said we didn’t qualify. We were never notified and this was the first we heard and our Realtor® couldn’t tell us why we didn’t qualify.  We refused to sign any more paperwork until we got an answer.  Is this possible and do you know why we wouldn’t qualify? 

–Short 3k in Santa Fe*

Dear Short 3k in Santa Fe:

Since we are not privy to the details of your transaction, it would be tough for us to know if the agent doing the negotiating made a boo boo, or whether you actually did not qualify–since not all loans qualify for the HAFA program and its relocation assistance.

What I can tell you is this: the HAFA program requires that the borrowers complete a number of forms early in the short sale negotiation process. And, the short sale approval letter and estimated settlement statement would show an allocation of 3k to the seller/borrower at closing. Generally, those processing the short sale know early on whether the seller will qualify for the HAFA program (or any of the available short sale incentive programs).

Not all banks participate in the HAFA program and not all loans qualify for the program (even at participating institutions). If you want to know why you did not qualify or whether you should have qualified, call your mortgage lender. The short sale negotiator at the lending institution may even have his/her phone number on the short sale approval letter.

Good luck!

–Melissa Zavala, Broadpoint Properties

*This is a real question received via email from a legitimate short sale seller. Names have been changed.

Escondido Homes for Sale – What Happened in the Escondido Real Estate Market for April 2012?

Escondido is an inland community, about 15 miles from the coast adjacent to San Marcos. Like its neighbors, San Marcos, Vista and Oceanside, Escondido has seen fairly significant shifts in the real estate market with a large number of short sales and foreclosures.

READ MORE:

A Tour of Escondido – A Diverse Inland San Diego Community

As a buyer or seller in the Escondido real estate market, understanding recent trends and current market conditions is essential so you can make informed decisions; media reports focus on general market conditions and therefore will not provide an accurate picture of the local Escondido real estate market.

The following data are taken from the San Diego MLS (private sales are not included in these statistics, nor are multifamily properties or mobile/manufactured homes). The data are believed to be reliable but are not guaranteed.

In April 2012 there were 212 homes sold in the Escondido real estate market, up 12% from March. Sales volume rose for both detached and attached homes; average sale prices also increased for attached home sales but declined for detached single family homes. Buyers were able to negotiate, on average, about 3- 4% off sales price.

Here’s the breakdown of overall activity.

There were 263 Escondido homes (45% of all active properties) on the market with a Contingent status, i.e., short sale or REO homes that have offers being considered by lenders. These are included in the statistics below.

At the end of April 2012 there were 583 Escondido homes for sale, about 5% fewer homes on the market than at the end of March, the 3^rd month of inventory decline. This represents an inventory of 2.1 months for attached homes (down from 3.8 months in March), the lowest in North San Diego County communities, and 3.7 months for detached homes (the same as in March), based on the current rate of sales over the last 6 months.  Thus the market has gotten even tighter for buyers, and one might argue the Escondido real estate market is now one that favors sellers, especially those selling attached homes.

READ MORE:   How Important is Inventory when Buying or Selling? Very!!

In April 248 homes came on the market, down 6% from new listings in March. The number of homes going pending (216) also decreased again, by 6%, from March pendings.

I am happy to provide more information about current real estate activity in the Escondido real estate market and answer any questions that you may have about current market conditions.

SEARCH FOR ESCONDIDO HOMES FOR SALE

READ MORE:

Escondido Homes for Sale – What Happened in the Escondido Real Estate Market in March 2012?

Escondido Homes for Sale – What Happened in the Escondido Real Estate Market in February 2012?

Escondido Homes for Sale – What Happened in the Escondido Real Estate Market in January 2012?

3^rd Annual Taste of Cardiff is May 17^th, 2012 in Cardiff-by-the-Sea CA

It’s time again for the Annual Taste of Cardiff, the 3^rd, happening this Thursday May 17^th in charming downtown Cardiff by the Sea, hosted by the Cardiff 101 Main Street organization.

Foodies can enjoy a host of culinary delights at 19 local Cardiff Restaurants between 5 and 8 pm and then may vote for their fave.

Tasting events are becoming more and more prevalent and popular, and the annual Taste of Cardiff is sure to please once again, with a diversity of options to taste from. And who doesn’t like to eat?!

Tickets are in advance or on the day of the event to enjoy small tastes representative of each restaurant’s cuisines and with 3 hours you’ll have plenty of time to stroll and munch, as long as food lasts.

A complete list of participating restaurants can be found at the Taste of Cardiff website. Tickets may be purchased on-line or at the Cardiff 101 Main Street offices at 124 Aberdeen (760-436-0431).

3^rd Annual Taste of Cardiff

Downtown Cardiff-by-the-Sea

Thursday May 17 from 5 until 8 pm

Here’s a recap of some of the interesting stuff that went on this past week in the distressed property arena: 

HAMP Modifications Down 33% from Last Year  This article provides information on the decline in HAMP loan modifications. What does it mean? Are we winding down in the distressed property arena or are the banks just not that efficient? Read more to find out.

Are We Really at the Bottom?  We’ve seen some big changes in the market lately? Is the bottom behind us and will this bottom actually stick? Read more in this dsnews.com article.

How to Command the Short Sale Lender’s Attention  While it is feasible for Lady Gaga to wear a meat dress to her job to command attention, a short sale takes much more specific finesse in order to get a deal done. Here are some ways to do just that. 

There’s lots going on in the distressed property arena. And, if you are actively working with ‘distressed’ borrowers, it’s important to keep up with all of the changes in the industry. Sometimes that’s hard, which is why we’ve provided you with a weekly recap right here. Happy Mother’s Day to all mothers and mother figures who have helped to teach our kids to be the best that they can be.

(photo credit)

Coastal or Inland Living in Southern California:

Buyer Choices Abound but Lifestyles Differ

The weather this week in Carlsbad has settled into the predictable May Gray – very gray during the first part of the day, with some ground fog on occasion, with clearing and sun to follow, and with marine layer rolling in late in the afternoon.

It can go from being completely gray to clear skies and sun in just an hour. And the marine layer can move in equally fast late in the day.

It reminded me of the choice buyers can make when moving here…to live along the coast or further inland?

It’s pretty typical that buyers, when asked, want one or the other. Or they tell you up front very specifically what they want. I can only think of a couple of times when the answer was “it really doesn’t matter.”

Those who live here seem to have pretty definite ideas about being along the coast, or living inland, since the lifestyle can vary quite a bit.

People prefer one or the other.

The primary differentiators are, of course the beaches, and the weather. While I can’t imagine NOT wanting to be near the beaches, for some that is less important, and they prefer more consistent sun and warmer weather.

And being within 30 – 45 minutes of the beach is OK.

The coastal weather can differ dramatically from inland, the marine layer being one major element. While it may be gray on the coast, a few miles inland the sun will be shining. It also tends to be cooler along the coast even on sunny summer days – it might be 75 to 80 degrees in Carlsbad but hit close to 100 in Escondido just 15 miles inland.

The weather stations actually report on 4 different weather zones, which takes some getting used to – coastal, inland, the mountains, and the desert.

I’ve had buyers say they want to be east of El Camino Real since that is where the marine layer stops.

In my experience it’s not that simple nor consistent. You WILL get the marine layer further inland.

Other lifestyle differences between the coast and inland?

It’s more crowded along the coast, noisier, there’s more traffic and congestion, and you will notice more pollution.

And it costs more, on average, than even a few miles inland.

That’s not to say there are not expensive areas further inland – Rancho Santa Fe is the priciest community in all of San Diego County – although one might argue RSF is really a coastal community. But generally speaking the closer to the beaches, the higher the prices.

I use the “Lifestyle Questionnaire” I created (see below) to help buyers think through their lifestyle choices when relocating to Southern California, as well as the “What’s Important to You” questionnaire for their home search.

But the BIG question is – do you want to live along the coast or inland?

Buyer Home Search and Lifestyle Questionnaires

Gator by the Bay Festival – Visit Louisiana San Diego Style This Weekend, May 11 – 13, 2012

The popular, annual Gator by the Bay Zydeco, Blues and Crawfish Festival 2012 is this weekend, May 11^th through the 13^th (It’s Mother’s Day weekend, by the way). 

Need something fun and different to do?

Why not celebrate 11 years of “Louisiana Bayou meets San Diego California” at the Spanish Landing Park on the Bay near San Diego’s Lindbergh Airport (West Basin at North Harbor Drive, across from Terminal 2). 

You can enjoy three days of zydeco and blues, continuous music with more than 85 performers on 6 stages (e.g., Steve Riley and the Mamou Playboys, Commander Cody, and the Bayou Brothers Zydeco Band), dancing, cooking demonstrations and, truly tons of great Cajun and Creole food that will guarantee you a fun time.

If you can’t get to New Orlean’s then the Gator by the Bay Festival 2012 is the next best thing!

Gator by the Bay 2012 tickets are reasonably priced at for Friday (their Blues Supper Club atmosphere) and on Saturday and Sunday but you now need to purchase tickets at the gate. 

Visit the Gator by the Bay website for more information or call (858) 492-8748 for the details. If you can’t get to New Orleans, Louisiana, this is the next best thing right here in San Diego.

If I weren’t heading to LA tomorrow and then Philadelphia I would be there!!