Sacramento Expert Short Sale Real Estate Agent

Posts Tagged ‘deed’

I received a call from someone on Friday asking if a short sale  is still possible after a Notice of Default has been filed on the property.  Of course it can be done, but time is of the essence here.  At this point this means that you only have a limited time to get offers on the property submitted to the bank ( lien holder) and accepted before the home goes to foreclosure sale at the court house. 

I have actually had short sale listings submitted to the bank and passing through the hands of negotiator after negotiator awaiting an acceptance right upon until 3 days before auction sale date.  The banks want you to wait to ask for an extension on the sale date up until 3-5 days before they will extend the date, because they usually only will grant extensions up until 30 days at a time. On all of my extensions requested I have had them actually extended  ( postponed )out because of the offers submitted to them were to the point of acceptance and approval.  

The banks sometimes want to see the activity of the listing from the beginning up until an offer is submitted.  The sooner you get the Hardship Package together with the offer and submitted to the bank, the better.  Remember you only have 3 months 2o days  ( after NOD has been filed) to get the bank to accept a short sale offer before going to auction sale.

Definition of an Notice of Default:

•  Notice of Default is an instrument (legal document) filed in the public records (county records) giving constructive notice to the public that a seller is behind on their mortgage. If the payments are not made up, then the bank will foreclose on the property.
• NODs ( notice of default ) are public record for 90 days, then a notice of trustee’s sale is published in a newspaper once weekly for 20 days and on the 21st day, the property goes to auction.

If you are behind in payments and know for certain that you are unable to catch up on those payments, then I would suggest talking with an attorney to discuss your situation and what would be the best choice to make at that time to best fit your situation.  These are a few choices you should discuss with an Attorney.

• Modification of current loan
• Short Sale
• Sign over the Deed to the bank
• Foreclosure
• Bankruptcy

Again speak with someone that knows the law as Real Estate Agents do not and should not give advise pretending that they do.

Terri Wisecarver

Sacramento Real Estate

So this has been my experience in the last couple of months. 

 In showing numerous homes to a client I have come across some issues with what is known as Flipper Houses.  After looking through the MLS for homes that meet my clients needs/wants we came across a home that we wrote an offer on. But we are noticing that quite a few of these homes are stating NO FHA loans. After talking with the agent, he stated that the seller chose not to accept offers with this type of financing.  I then started to wonder if there were issues with the property that would not pass the FHA guidelines.  This seemed to be OK with my buyers as they were getting a conventional loan anyway.

Within the next two days from acceptance and much research between me and the lender we found out the home was a FORECLOSURE purchase at sacramento court house.  I then called the agent because I had some concerns about the seasoning requirement of this home purchased like this. The seller only had it for 45 days at this point.  I talked with buyers lender and I was then told that this could possibly be an issue with financing because most of the lenders have now changed their guidelines to match FHA with FLIP HOMES.  I had the buyers lender contact the lenders which we would be using, and verified this situation. I then contacted the agent and he actually tried to tell me this was not true.  My buyers decided to back out of the deal as they did not want the money, time and effort put in on a home that probably would a dead deal.

Now let me tell you this actually happened again, but this time the seller of the home did not record the deed when he purchased the home, therefore leaving me to do my investigations by obtaining a title history on the property to find out the same story. 

Third time a charm.  Another offer placed on a property that ended up being a Flipper in the same way, but my buyers decided to wait and continue to look around.  We then found a better home with everything they were looking for and of course multiple offers with ours accepted.  Ironically the listing agent (broker of 25yrs) did some investigations on his own and found out that I was right.  The listing agent  in the mean time has contacted me back to see if my buyers were still interested in the property., of course now that the 90 days is past.

Agents need to do all they can to protect the clients they have and do all investigations on properties.  Is this not what we are suppose to do.  I am thrilled to say that my buyers will be closing in the next fews weeks in a home they are so happy with.  Needs some work but value to them will be worth it and not just gaining equity. 

Terri Wisecarver

Real Estate Sacramento