When It Comes to REO Investing, Not All Agents Are Created Equal

September 15th, 2011

Buying REO (real estate owned) properties can be a great investment, especially if you know what you’re doing. With that said, investing in a foreclosed home is very different from your standard real estate investment. The main difference is that you’re not dealing with a homeowner; you’re dealing with a financial institution or bank. And let’s face it, banks are in the business of lending money; they’re not in the business of managing or selling real estate properties.

Fortunately, there are people who are focused on helping you through the process of buying bank-owned properties. These are agents who specialize in the ins and outs of REO properties.

When investing in REO properties, look for agents who will:

Explain to you how the foreclosure process works in your area in layman’s terms.

Different states have different laws regarding foreclosure sales. When dealing with REO homes, the best agents will know the basic laws and have contacts in real estate law who are readily available to answer any questions and address any nuances that may arise. Because the process is so different from a standard real estate transaction, not every real estate agent can get access to REO properties to sell them. Agents experienced with bank-owned properties can get their hands on lists of REO homes for sale (or that will soon be for sale) that other real estate agents can’t get.

Arm you with the tools you need to find the best REO properties to suit your needs.

Agents who specialize in bank-owned homes also have access to online REO listings, bidding platforms, and other real estate services to help you find the most listings and the best deals in REO homes. You can see photos and get other detailed information about REO homes for sale without having to drive to each and every property. There are also applications for handheld devices, as well as tools and processes that technology savvy agents will use to provide you with information on REO properties as quickly as possible.

Help you get as much information as possible about the condition of the REO home for sale.

An official inspection might seem like an obvious “must-do,” but quite often, banks will try to sell an REO home as-is and won’t allow an inspection. A good agent will work to negotiate on this point, or at the very least, allow you to bring an inspector with you during a visit to the home before you sign any paperwork. An inspection is critical when purchasing a property that has been foreclosed on, because the previous homeowners (or renters) may not have had the money or the inclination to keep the home in good condition. If the home is occupied upon foreclosure by the previous homeowners, tenants, or squatters, an inspection may not be in the cards.

Provide information about the history of the REO property for sale, as well as the neighborhood in which the REO property is located.

When it comes to REO investments, the best agents will provide information about the percentage of other homes in the neighborhood that have been foreclosed on or are in pre-foreclosure; data about when homes have sold and for how much; the condition of homes in the area, etc. This may involve reaching out to neighbors and asking questions, and is especially important if you’re unable to obtain an inspection. A good agent will also find out if there are any outstanding taxes, HOA dues (when applicable), or other liens on the property.

Educate you on national and local laws regarding current occupants of the foreclosure property.

One of the challenges of purchasing an REO home is that there’s no guarantee the home will be vacant when you come into ownership of it. Renters who weren’t informed by the previous owner that the house was under foreclosure in time to find a new residence may still live there. Or, a homeless person may be using the property as a shelter, even if the electricity and water is shut off. Whatever the case may be, you’ll want to know your legal rights, as well as the current renters rights, in your area. Keep in mind that they may be different from state to state, and a good ‘agent will understand the laws related to the foreclosure sales process or have a relationship with someone who does.

Assist you during the process of submitting an offer on an REO home.

The paperwork and processes involved in making on offer on an REO property are very different than your standard real estate offer. There are rules and stipulations that can be confusing to most homebuyers and many agents, but that agents who specialize in REO homes know like the backs of their hands. Whether you bid on an REO property online or through some other means, it’s important to find an agent that can make sure you do everything by the book so that your offer is considered (and not thrown out because you unknowingly missed a step or left out some required information).

Of course, no one can eliminate the possibility of hiccups in a real estate deal completely, or in any deal for that matter, but an agent experienced in foreclosure properties will educate you on all the details of the process. That way, you know what to expect and can feel confident in your decision to invest in a particular REO property (or not).

Tips To Improve Your FICO Score

September 15th, 2011

Here are few tips to improve your FICO score:

Pay your bills on time. The longer your history of paying your bills on time, the better your score.
Keep balances on your revolving credit (credit cards) below 50% of your available credit.
Pay down as much revolving debt as possible.
Don’t apply for new credit cards, and don’t bother to cancel unused cards; either of these actions may actually lower your score.
Don’t increase your debt; for example, if you are shopping for a property, do not decide to buy a new car at the same time.
There is a significant amount of documentation required when you apply for a loan. This checklist should help you to collect some of the items you will need to accurately fill out your loan application. To save time and frustration during the loan process, start gathering the documentation listed below as soon as possible.

Residence History:

Your addresses for the last two years, and length of time at each address
If you currently rent, your landlord’s name and address for the last twelve-month period
Employment History:

The names and addresses for each of your employers over the last two-year period
The dates you worked at each place of employment
A letter explaining any gaps in your employment in the last two years
Original pay stubs for the last thirty days
Last two years’ W-2 and/or 1099 forms
Last two years’ tax returns
If self employed, year to date profit and loss statement and current balance sheet
Transcript of diploma if you were a student in the last two years
If retired, a retirement, social security or disability-award letter and a copy of your most recent check
For All Savings, Checking Or Investment Accounts:

The names and addresses of each financial institution and account numbers
The current balance or value
Three months’ bank statements on all accounts
If applicable, three months’ statements for IRA’s, Keoghs, 401K’s or profit sharing
Personal Property That You Own:

The net cash value of your life insurance
The make, year and value of your automobile
The value of your furniture or other personal property
Real Estate That You Own:

The property address(es); The estimated market value, outstanding loan balance and the amount of your monthly payment
If applicable, the amount of your monthly rental income
For All Outstanding Loans And Credit Cards:

Coupon Book or most recent statement for every account you have open
There are literally hundreds of loan programs available specific to the type of property you intend to buy, from fixed rate loans to adjustable, interest only, and balloon payments. Then there is commercial lending; loans specific to apartment buildings or retail space. I could go on and on; plus, rates and loan programs change daily. That is why finding the right lender is extremely important to your investing success. A lender who knows your needs and financial situation will be able to find the best loan products to get you into the property you want.

Year-round hazardous and e-waste drop-off sites

May 4th, 2011

Hazardous waste accepted includes: Paint and solvents; used motor oil and filters, anti-freeze, and other automotive fluids; cleaning products; pool and garden chemicals; aerosol cans; all medicine; auto batteries; household batteries.

E-waste accepted includes: Computers, monitors, printers, network equipment, cables, telephones, televisions, microwaves, video games, cell phones, radios, stereos, VCRs, and electronic toys. 

They do not accept: Business waste, ammunition, explosives, radioactive material, biological waste or tires. Bulky Items: furniture, refrigerators, washing machines/dryers, conventional ovens, paper, computer software. 

S.A.F.E Centers for hazardous waste 

San Pedro: Gaffey Street

1400 N. Gaffey St. San Pedro, CA 90731 

Hours of operation:

Saturdays, and Sundays

9:00 a.m. to 3:00 p.m. 

Los Angeles: Los Angeles-Glendale Treatment Plant

4600 Colorado Blvd. Los Angeles, CA 90039 

Hours of operation:

Saturdays and Sundays

9:00 a.m. to 3:00 p.m.

Los Angeles: Washington Boulevard

2649 E. Washington Boulevard Los Angeles, CA 90021

Hours of operation:

Saturdays and Sundays

9:00 a.m. to 3:00 p.m.

In Orange County- Rainbow Disposal in Huntington Beach is an option.

Hours: 9:00 A.M. to 3:00 P.M.
Tuesday through Saturday (except rainy days).

Pan Am Fiesta coming May 6-8, 2011

May 4th, 2011

Lakewood’s longest-standing community event-the Pan American Fiesta-begins its three-day celebration at Mayfair Park on Friday, May 6 at 5:00 p.m. The family-friendly fiesta continues on Saturday and wraps up Sunday evening. Click for the event flyer/schedule

Lakewood’s festival dates back to 1945 when Dr. Walter Montano, former Bolivian consul, and Jesse Solter, a local schoolteacher, shook hands over a backyard fence and pledged to begin a program to foster good relations with Lakewood’s Latin American neighbors. Today, Lakewood’s fiesta is the nation’s only community-wide celebration of pan-americanism outside of Washington, DC.

The fiesta’s traditional pancake breakfast, sponsored by the Pan American Association, will be offered on Saturday and Sunday from 7:00 a.m. to 10:30 a.m. for $4. On Sunday-Mother’s Day-breakfast and a gift are free for all moms, along with live entertainment and fun shopping at the fiesta’s craft booths.

Carnival rides, food, art, music and dancing

The fun begins with carnival rides on Friday, May 6 from 5:00 p.m. to 10:00 p.m., and continues on Saturday from 11:00 a.m. to 10:00 p.m., and on Sunday from 11:00 a.m. to 9:00 p.m. 

Food booths will be open from 11:00 a.m. to 6:00 p.m. on Saturday and Sunday.  

Over 70 arts and crafts dealers will bring their wares to the fiesta. There will also be an artist demonstration by members of the Lakewood Artist Guild.

In the Children’s Cultural Booth, kids can have a free, hands-on cultural experience featuring activities and arts and crafts from across the Americas. Organized activities will run from 11:00 am to 3:00 p.m. on Saturday and Sunday.

 Free entertainment begins on Saturday at 11:00 a.m. with Mayfair High School youth bands and choral group. The fiesta’s opening ceremonies are scheduled for noon. Music and dance – from Latin Jazz, Country Western, Rhythm & Blues, to a Polynesian Revue – will continue on the fiesta’s main stage throughout the weekend. There will be lots of opportunities for Lakewood residents of all ages to try out their dance moves — or just listen — to a variety of music.

Freddie Mac Turns $676M Profit

May 4th, 2011

The nation’s second largest mortgage company reported Wednesday that it pulled in net income of $676 million during the first three months of this year.

Freddie Mac closed the quarter with positive net worth of $1.2 billion. As a result, no additional funding from Treasury was required for the first quarter of 2011.

It’s the first time since the fourth quarter of 2009 that the company has not needed to draw on taxpayer support to cover a deficit.

Over the 2010 fiscal year, Freddie received $13 billion in taxpayer funding under the Treasury agreement put in place when the federal government seized control of the mortgage financier.

Since the conservatorship began in September 2008, Freddie Mac has drawn a total of $64.7 billion. The bulk of that — $45.6 billion – came at the onset of the conservatorship during the 2008 fiscal year.

On that nearly $65 billion in draws from Treasury, the GSE has paid a total of $11.6 billion in dividends, $1.6 billion of which was paid during the first three months of this year.

In recent quarters, it’s become a case of robbing Peter to pay Paul. For example, during the fourth quarter of 2010, Freddie Mac paid dividends to Treasury of $1.6 billion. The GSE then turned around and requested a $500 million draw from Treasury to cover the deficit resulting from the dividend payment

Jillian Hitt enjoys her birthday at the pool

August 19th, 2010

The Hurt Locker Synopsis.

March 9th, 2010

In the summer of 2004, Sergeant J.T. Sanborn and Specialist Owen Eldridge of Bravo Company are at the volatile center of the war, part of a small counterforce specifically trained to handle the homemade bombs, or Improvised Explosive Devices (IEDs), that account for more than half of American hostile deaths and have killed thousands of Iraqis. A high-pressure, high-stakes assignment, the job leaves no room for mistakes, as they learn when they lose their team leader on a mission. When Staff Sergeant William James takes over the team, Sanborn and Eldridge are shocked by what seems like his reckless disregard for military protocol and basic safety measures. And yet, in the fog of war, appearances are never reliable for long. Is James really a swaggering cowboy who lives for peak experiences and the moments when the margin of error is zero – or is he a consummate professional who has honed his esoteric craft to high-wire precision? As the fiery chaos of Baghdad swirls around them, the men struggle to understand and contain their new leader long enough for them to make it home. They have only 38 days left in their tour of Iraq, but with each new mission comes another deadly encounter, and as James blurs the line between bravery and bravado, it seems only a matter of time before disaster will strike.

Long Beach HHW/E-Waste Collection Event

March 6th, 2010
Long Beach HHW/E-Waste Collection Event
Date: 3/27/2010  
 
Location: Long Beach Veteran`s Stadium, Clark Avenue and Conant Street, Long Beach 90808

In order to improve our service to the public, we ask participants to complete a short survey form at the event. To expedite the process, please print and take the completed form with you to the collection event. You may print the survey forms in English or Spanish.
 Events are from 9:00 a.m. to 3:00 p.m. (unless otherwise noted). There is a transportation limit of 15 gallons or 125 pounds of hazardous waste per trip.  Rain or shine, collection events will be held as scheduled.

Buyers Who Wait May Lose a Lot

March 5th, 2010

 
Potential home buyers who delay have a lot to lose.

First-time home buyer and move-up tax credits worth $8,000 and $6,500, respectively, expire April 30. Buyers who qualify get a dollar-for-dollar reduction in taxes or a cash payment if they don’t pay enough taxes to cover the credit.

Other factors that should spur buyers:

Low mortgage rates. If the Federal Reserve stops buying mortgage-backed securities at the end of March, 30-year rates will almost certainly rise to more than 6 percent.

Rising prices. About 30 percent of markets are already experiencing price increases. Prices are falling in 12 percent of markets, says Fiserv (but that only helps if you want to live there).

Source: Money Magazine, Beth Braverman (03/02/2010)

Real Estate Search App for iphone and itouch

March 3rd, 2010

Log on to itunes and get a free copy of REALTOR.com search app.

Enter REALTOR in the search box and look for the Real Estate search.ipa