2011 June

10 Mistakes Home Buyers Make with Simi Valley Short Sales

June 27, 2011 By Ted Mackel 1 Comment

Simi Valley Short Sales have been a big part of my business for the last couple of years. These transactions are very complex and not every real estate agent is equipped to handle these transactions. It is easy to get a seller to agree to list their home, but working with the Seller’s bank to get short sale approval is another story. Many of the licensed agents that take short sales listings have no business doing so. It is easy to attend a seminar and get a certification, but each and every short sale I have worked on is different with it’s own set of circumstances, nothing can be substituted for hands on experience.

Understand that the representative at the bank has a typical work load of over 100 properties on their desk in various stages of the approval process. My job is to keep my client’s file at the top of that stack and any time the bank representative throws a condition at us, we need to answer quickly and be able to state a case in support of my Seller.

A big part of my success is using a 3rd party negotiator on my team. My negotiator is Real Estate Attorney and Licensed Broker, while he is acting only as a negotiator, the years of experience between the two of us has proven to a 100% track record in getting approvals. We have completed traditional Short Sales and Short Sales under the HAFA program.

Your biggest obstacles as a buyer in a Short Sale are mostly going to be related to having unrealistic expectations. Some will be generated on your own and the rest will be generated by the real estate agent representing you.

#1. Not understanding Market Value – You will write a Low Ball offer for several unsound reasons

First unsound reason – The bank already has written this property off at a loss, if they don’t take my offer they will lose even more money down the road.
Second unsound reason – They are getting more from me now then they will if they foreclose.
Third unsound reason – By the time I fix up the house after I buy it, I will have $50,000 into it, so my offer needs to be $50,000 below asking.

The bank has send appraisers out and paid other real estate agents for market opinions. The Seller’s lender has a very good idea what the surrounding homes have sold for. Additionally, I will price my Short Sale Listings at Market value and this is one of the direct reasons why my Short Sale Listings not only get approved, but they also close escrow successfully. Typically the Seller’s Lender will come back and ask the buyer to come up with additional money if the Seller’s Lender thinks the offer is low compared to the market value.

#2. Asking for Repairs – You or your agent will think that you can ask repairs after an inspection. The seller is in a Short Sale because they are broke and out of money. They probably barely have enough money for a deposit on a rental when escrow closes and if your agent puts in your head that you can ask for repairs, you might want to look for a new agent before looking at other homes. Short Sale Lenders do not care that the water heater relief line does not exit to the outside of the home, they don’t care that the screens are broken or that the pool is green. No they don’t care that the GFI’s are missing in the bathrooms. The Short Sale Lender has a bottom line number in their approval and if the buyer cant work with that number, then the approval will not be issued. The bank’s bottom line number and your low ball offer will not be compatible. Seller is broke so that means you the buyer gets to pay for the repairs.

#3. Ask for Termite – Your agent tells you to ask for termite inspection and repair. Once you put it in the contract now your lender is going to require the work be done, but remember the Seller’s bank isn’t going to pay for it and the Seller is broke so the only person left to pay, is you the buyer.

#4. Ask for Home Warranty – Once again the Seller’s bank isn’t going to pay for it and the Seller is broke so the only person left to pay, is you the buyer.

#5. FHA & VA financing - Try a Short Sale at your own risk, because FHA and VA will inspect the house and come up with a list of Lender required repairs. See #2 and remember the Seller’s bank isn’t going to pay for it and the Seller is broke so the only person left to pay, is you the buyer. FHA & VA buyers have bought Short Sale properties, they just had to come out of pocket for Lender required conditions and repairs.

#6. Closing costs – Your Lender or Real Estate Agent told you to ask for $10,000 in closing costs. The Seller’s bank isn’t going to pay for your closing costs and the Seller is broke so, the only person left to pay for your closing costs is you the buyer.

#7. Unrealistic about time frames – Short Sales take a long time. I have obtained approvals in as short as 3 weeks to 6 weeks, but the majority of the approvals are taking 90 to 120 days. If you don’t know how to sit and wait for a long time with little information on the status, then you should not be writing offers of Short Sale properties.

#8. You have a home to sell – While I might be the only listing agent in Simi Valley to complete a Short Sale with a buyer who was selling their home and needed the proceeds from that sale to complete the purchase of my Short Sale; I have not had any other bank agree to this. The timing on these short sale approvals is so drawn out and consuming, it is very difficult to hold all the buyers together and wait for approval. The representative for the Seller’s Lender know this and they do not approve offers that are contingent on the Buyer selling their property first.

#9. Attempt to flip or the old Double Escrow – You want to negotiate with the Seller’s Lender so you can turn around and find another buyer and make a quick profit. My seller has no motivation or obligation to help you make a fast profit off their loss. Keep in mind that the Seller’s Lender may have deficiency rights against may seller, so my seller would be crazy to take on larger future tax and deficiency obligations for your investment plans. I wrote “Beware of Short Sale Flipping” which explains this better, but it can be illegal and FBI has been going after investors that are concealing their profit schemes from Short Sale Lenders.

#10. Not understanding THE SELLER IS BROKE and THE SELLER’S LENDER IS NOT GOING TO AGREE TO PAY FOR THINGS YOU DEMAND. You should realize by now that there could be as much as $1,000 or even $2,500 of issues on a Short Sale property and if you are not prepared (as a buyer) to deal with those issues, you probably should not be writing offers on Simi Valley Short Sale properties.

The Seller’s Lender has a sale price they are willing to accept for the property that is going to be very close to market value. The Seller’s Lender will try to get the buyer to pay over market value. The Seller’s lender is going to try every possible thing they can to to minimize the the costs to sell the property which is why buyer demands are not the concern of the Short Sale Lender.

To understand the short sale process better please read

Filed Under: Buyers, short sales Tagged With: fha, HAFA, lender, Short Sale, Simi Valley, VA

Three Reasons not to buy a tankless water heater if you live in Simi Valley

June 24, 2011 By Ted Mackel 2 Comments

There are three very good reasons not to buy a Tankless Water Heater if you live in Simi Valley California. One involving safety, one involving economics and last just living issues. If your water heater has finally gone out and you are looking for replacement, consider the following before opting for a tankless replacement.

1. The number one reason involves safety for your family. Simi Valley is in earthquake country, Those that remember the effects of the Northridge Earthquake might not realize how fast time flies and it is now 17 years after that big quake. Are you earthquake safe in your house? Do you have 3 days provisions for your family in case the next “Big One” hits? Your 50 gallon traditional tank style Water heater may be your only source of clean drinking water in the event we have another large earthquake. Make sure your Water heater is braced and strapped so it will not fall over during an earthquake. I have posted Simi Valley Earthquake preparedness – Water Heater Bracing

2. Cost; while there are a buzzillion commercials on the radio these days talking about tankless water heaters, tankless systems are often significantly more expensive. Tankless heaters are the buzz, they are sexy and they might sound like a good thing, but for those of us in earthquake country, would you rather have a 50 gallon reserve of clean drinking water or the latest fad.

3. When there is a power outage, you have no hot water with a tankless system If the gas or power goes out to your Hot water heater, you will still have hot water for a couple hours.

Please make sure your water heater is properly strapped and braced. If you need assistance from a licensed plumber, for Simi Valley Plumbers, you can call Beck’s Plumbing at (805) 300-6146 or T-Top Plumbing at (805) 527-886

Filed Under: Home Improvement, Home Safety Tagged With: earthquake, Simi Valley, tankless, water heaters

How does a Lis Pendens affect California Real Property?

June 17, 2011 By Ted Mackel Leave a Comment

I see questions all the time about Lis Pendens in online Real Estate discussion forums all the time. Before diving into the information below please understand the following. This information pertains to California Real Estate Law. This information was obtained with permission from the California Association of Realtors Legal Department. I am not an attorney and this information is not intended to be legal advise from me, please seek professional legal help with this matter.

Q 1. What is a Lis Pendens?

A: Lis Pendens is a Latin phrase which means a pending suit. When people refer to a Lis Pendens they are generally referring to what Code of Civil Procedure Section 405.2 calls a “Notice of Pendency of Action” (hereinafter “Lis Pendens” and also “Notice”). The Lis Pendens is recorded in the office of the county recorder and serves as a warning to prospective interest holders in real property that the real property is involved in a legal action (Cal. Code Civ. Proc. §§ 405.2, 405.4). This means that the person who is asserting a real property claim (the claimant) must file a lawsuit prior to recording the Lis Pendens.

Q 2. What is the purpose of a Lis Pendens?

A: The purpose of a Lis Pendens is to notify prospective purchasers, encumbrancersand other real property interest holders that any interest acquired by them in the property is subject to the outcome of a legal action currently in progress concerning the real property. Although recording the Lis Pendens doesn’t legally stop a buyer from purchasing the property, the buyer is subject to losing the property to the claimant should the claimant ultimately prevail in the litigation regarding entitlement to the property. Therefore, for all practical purposes, the Lis Pendens assures the person recording it (the claimant) that the property in question will not be transferred before the lawsuit is resolved (See Question 3).

Q 3. Can property be transferred if a Lis Pendens is recorded against it?

A: Yes, but if it is transferred or encumbered, the transferee or encumbrancer is deemed to have constructive notice of the legal action affecting the property and takes title subject to any rights or interests in the property the claimant subsequently obtains in the legal action. The rights of the claimant relate back to the date of recording of the Lis Pendens. Thus, even though the property may be transferred, it is unlikely that any prospective transferees will take the risk that the legal action will be decided in favor of the claimant. Thus, recording a Lis Pendens effectively makes the property unmarketable.

Q 4. Who can record a Lis Pendens?

A: A party to an action (lawsuit) who asserts a real property claim may record a Lis Pendens. A real property claim is defined as a pleading which, if meritorious, affects (a) title to, or the right to possession of, specific real property or (b) the use of an easement. (Cal. Code Civ. Proc. § 405.4.)

Q 5. Can a buyer record a Lis Pendens against a seller who refuses to close escrow?

A: Yes, if the buyer pursues a legal claim against the seller for specific performance of the contract. If the buyer is only interested in return of the deposit or money damages then a Lis Pendens should not be recorded.

Q 6. Can a buyer record a Lis Pendens against a seller who refuses to return a deposit?

A: No. If the buyer is only interested in return of the deposit or money damages then a Lis Pendens should not be recorded.

Q 7. Can a seller record a Lis Pendens against a buyer who breaches the contract?

A: No. A seller may pursue a breaching buyer by seeking either specific performance or damages. When a seller seeks specific performance against a buyer, the seller attempts to force the buyer to purchase the seller’s property. The seller makes no claim against property owned by the buyer and, accordingly, a Lis Pendens recorded against any property then owned by the breaching buyer would be inappropriate. Obtaining specific performance against a buyer is very difficult. More typically, the seller sues the buyer for damages. This is an action for money. A Lis Pendens is inappropriate in such a case.

Q 8. Does a liquidated damage clause affect a buyer’s ability to record a Lis Pendens?

A: No. A liquidated damage clause (like the one in the C.A.R. purchase contracts) sets limits on the monetary damages in the event a buyer breaches a contract. Since a Lis Pendens would generally only be recorded when a breaching seller refuses to sell the property to the buyer, the liquidated damages clause has no effect on a buyer’s ability to record a Lis Pendens.

Q 9. What does a Lis Pendens claimant have to do in order to record a Lis Pendens?

A: The claimant must do the following:

(1) The claimant must file a lawsuit which asserts a real property claim (Cal. Code Civ. Proc. § 405.4).

(2) A Notice of Pendency of Action must be prepared which contains the names of all parties to the actionand a description of the property affected by the action (Cal. Code Civ. Proc. § 405.20).

(3) The Notice must be signed by the claimant’s attorney of record. If the claimant does not have an attorney (is acting in propria persona) the claimant must have the Notice approved by a judge. (Cal. Code Civ. Proc. § 405.21.)

(4) The Notice must be mailed by registered or certified mail, return receipt requested, to all known addresses of the parties to whom the real property claim is adverse and to all owners of record of the real propertyas shown by the latest county assessment roll (Cal. Code Civ. Proc. § 405.22).

(5) The Notice can then be recorded in the county in which all or a portion of the property is situated if it is accompanied by a proof of service that the Notice has been properly served on the persons listed in paragraph 4 (Cal. Code Civ. Proc. §§ 405.20, 405,23).

Q 10. Can a Lis Pendens be recorded if the purchase contract requires arbitration and not litigation?

A: Yes. In the event that both parties to a dispute have initialed an arbitration clause, the party wishing to record a Lis Pendens,must first file a lawsuit and must, at the same time the action is filed, also present to the court an application that the judicial action be stayed pending the arbitration. Then the claimant must take the steps needed to record the Lis Pendens as indicated in Question 12.

Q 11. Once a Lis Pendens has been recorded, how can it be removed from title?

A: At any time after the Lis Pendens has been recorded by the claimant, any party to the action or a non-party with an interest in the property (“moving party”), may apply to the court in which the action is filed to “expunge” (remove from the record) the Lis Pendens (Cal. Code Civ. Proc. § 405.30). A person who is not a party to the action must first obtain permission from the court before bringing the motion to expunge (Cal. Code Civ. Proc. § 405.30). The expungement order is not provided by the court unless there is “the giving of an undertaking” (i.e., the moving party must post a bond) in an amount that will indemnify the claimant for all damages resulting from the expungement which the claimant may incur if the claimant prevailson the real proeprty claim (Cal. Code Civ. Proc. § 405.33).

There are three instances in which a Lis Pendens can be expunged.

(1) The Notice shall be expunged if the pleading of the Lis Pendens claimant does not contain a real property claim (for example, the claimant is only seeking money damages) (Cal. Code Civ. Proc. § 405.31).

(2) The Notice shall be expunged if the Lis Pendens claimant has not established by a preponderance of the evidence the probable validity of the real property claim (Cal. Code Civ. Proc. § 405.32).

(3) The Notice shall be expunged, even if the claimant has established the probable validity of the claim, if the court determines that adequate relief is available by the property owner providing a bond in an amount sufficient to indemnify the claimant for all damages proximately resulting from the expungement (Cal. Code Civ. Proc.§ 405.33).

Q 12. What does “preponderance of the evidence” mentioned in the previous question mean?

A: Essentially, to show a “preponderance of the evidence” means that the evidence presented is of greater weight or more convincing than the evidence which is offered in opposition to it (Black’s Law Dictionary 616 (5th ed. 1983)).

Q 13. What does “probable validity of the claim” mean?

A: It means that it is more likely than not that the claimant will obtain a judgment against the defendant.

Q 14. Who has the burden of proof in a motion to expunge a Lis Pendens?

A: The Lis Pendens claimant (Cal. Code Civ. Proc. § 405.30).

Q 15. How long does a property owner or other party bringing the motion to expunge (“moving party”) have to post a bond if ordered to do so as a condition of granting the motion to expunge?

A: The court will set a date on which the moving partymust return to court and show that the bond has been obtained. If the moving party fails to demonstrate by that date that the condition has been fulfilled the court will deny the motion to expunge. (Cal. Code Civ. Proc. § 405.33.)

Q 16. Can a Lis Pendens claimant ever be required to post a bond in order to keep the Lis Pendens of record?

A: Yes. The court may require the claimant to post a bond in order to maintain the Notice. If the court issues such an order andthe claimant does not show compliance with the court’s order on the date established by the court, then the court will order the Notice be expunged. (Cal. Code Civ. Proc. § 405.34.)

Q 17. What is the effect of a Lis Pendens if it has been expunged or released?

A: Once a Lis Pendens has been expunged or voluntarily released it is no longer considered actual or constructive notice of any of the information contained in the Notice. Subsequently, anyone who, for valuable consideration, becomes a transferee of an interest in the property shall not be deemed to have knowledge of the matter contained in the Notice whether or not that person had actual knowledge of the action. Thus, expungement or voluntary removal of the Lis Pendens allows the property to be transferred free of any cloud otherwise caused by the recording of the Notice. (Cal. Code Civ. Proc. §§ 405.60, 405.61.)

Q 18. Can attorney fees be awarded as a result of a motion concerning expungement or maintenance of a Lis Pendens?

A: Yes. The prevailing party on any motion made to expunge shall be awarded reasonable attorney fees and costs unless the court determines that the imposition of these fees and costs would be unjust. The same rule applies to the prevailing party on a motion made to request that the claimant post a bond as a condition of maintaining a Lis Pendens. (Cal. Code Civ. Proc. § 405.38.)

Q 19. What effect does expungement of a Lis Pendens have on any lawsuit between the claimant and the property owner?

A: None. While as a practical matter the expungement of a Lis Pendens affects the parties’ relative bargaining power in an action, the expungement does not otherwise affect the legal relationship between the parties to the dispute.

Q 20. If a Lis Pendens has been expunged or removed, does a subsequent purchaser of the property take title subject to the outcome of any lawsuit still pending between the claimant and the property owner?

A: No. (See Question 17 above.) That means that a subsequent purchaser does not have to give up the property regardless of the outcome of the lawsuit between the claimant and the property owner.

Filed Under: Buyers, Foreclosures, Sellers, short sales Tagged With: california Real Estate, Lis Pendens

Lego Engineering Camp – 365 Things to do in Simi Valley

June 16, 2011 By Ted Mackel 2 Comments

(Video Below) #34 – Through Rancho Simi Parks and Recreation you can sign your kids up for a one week, 3 hours a day intensive Lego Engineering Camp. The kids get to work with Lego blocks and Lego Techinics to make all kinds of creations with motors, pulleys and gears. Many middle schools, high schools and Colleges use the Lego Midstorms Robotics Kits in a science and technology curriculum and this Lego Engineering Camp is a good primer before moving up to the programmable Mindstorms NXT 2.0 robotics kits. The schools offering the Lego Mindstorms Robotics classes often compete against other schools at Lego Land each May. The Robotics competitions at Lego Land include design, functionality and programing.

365 Things to do in Simi Valley includes activities for kids and adults so please stop by regularly or “Like” the 365 Simi Valley Page on Facebook.

Filed Under: for Kids Tagged With: LEGO, LEGO CAMP, MINDSTORMS, PARKS AND RECREATION, ROBOTICS, Simi Valley

St Patrick’s Day at the Junkyard Cafe Every Month? 365 Things to do in Simi Valley

June 15, 2011 By Ted Mackel Leave a Comment

(Video Below) #33 – St Patrick’s Day at the Junkyard Cafe happens every on month on the 17th. It has been a three year tradition for the Junkyard Cafe to serve corn beef and cabbage, green beer, break out the bagpipers and be Irish. It is wildly popular and you will not be disappointed. I originally wrote about this restaurant back on November 23, 2008 announcing the New Simi Valley Restaurant…Junkyard Cafe. Well, Tony & Evelyn (the Queen) do not disappoint. In their new location at 2585 Cochran Street, in Simi Valley they are maybe four times the size and people a lining up every day to get their fill of Junkyard treats. You can contact the Junkyard Cafe through this phone number (805) 520-5865 or their website http://www.thejunkyardcafe.com

Filed Under: Local Businesses Tagged With: 365 things to do, bagpipers, cabbage, corn beef, green beer, Irish, junkyard cafe, Simi Valley, St patrick'sday

Simi Valley Indian Hills Indian Meadows Tract Sales History 2003-May 2011

June 11, 2011 By Ted Mackel Leave a Comment

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Below are tables representing Simi Valley Indian Hills Meadows Tract Home Sales History. The Indian Hills Meadows Tract is located off Alamo Drive and East of Yosemite. This is a quick snapshot at how the Indian Hills Meadows Tract has reacted to the changing market. Sales data is from 2003 through May 31st 2011.

The Indian Hills area in Simi Valley consists of 5 tracts. The Ranch and Ridge Sections are the two largest tracts in the development with the Indian Meadows being the third largest. Before the tract was built this is where hang glider pilots would come to train. They would launch up by the water tank an fly out to the fields below that is now Placerita Drive. The following sales data represents just the Indian Meadows area.

The tract was built in two phases, the first phase was the lower half in 1986 down along Placerita. The homes up on Iroquois were built in 1989 and the floor plans were the same layout but made a little larger. There are three two story models and a one story model.

Indian Hills Ranch Simi Valley 2003 Sales History
Average Sale Price	$541,570
List to Sale Ratio	100%
Average Days on Market	60
Number of Homes Sold	5

Indian Hills Ranch Simi Valley 2004 Sales History
Average Sale Price	$649,421
List to Sale Ratio	98%
Average Days on Market	7
Number of Homes Sold	43

Indian Hills Ranch Simi Valley 2005 Sales History
Average Sale Price	$706,180
List to Sale Ratio	95%
Average Days on Market	31
Number of Homes Sold	9

Indian Hills Ranch Simi Valley 2006 Sales History
Average Sale Price	$747,000
List to Sale Ratio	93%
Average Days on Market	94
Number of Homes Sold	2

Indian Hills Ranch Simi Valley 2007 Sales History
Average Sale Price	$753,667
List to Sale Ratio	96%
Average Days on Market	100
Number of Homes Sold	3

Indian Hills Ranch Simi Valley 2008 Sales History
Average Sale Price	$591,344
List to Sale Ratio	90%
Average Days on Market	108
Number of Homes Sold	4

Indian Hills Ranch Simi Valley 2009 Sales History
Average Sale Price	$525,00
List to Sale Ratio	91%
Average Days on Market	45
Number of Homes Sold	1

Indian Hills Ranch Simi Valley 2010 Sales History
Average Sale Price	$625,000
List to Sale Ratio	95%
Average Days on Market	40
Number of Homes Sold	1

Indian Hills Ranch Simi Valley thru May 2011 Sales History
Average Sale Price	$527,875
List to Sale Ratio	97%
Average Days on Market	95
Number of Homes Sold	2

There are currently five homes for sale in the Indian Meadows tract as of June 10,2011. The average list price of the five homes is $575,550 with an average of 35 days on market, I have been most these homes and based on location amenities and pricing the final sales price will most likely average down close to the $560,000 3 of the homes have already reduced their orignal list price 3%-5%.

Filed Under: Simi Valley Tracts Tagged With: floorplans, homes, Indian Hills, Indian Meadows tract, Simi Valley

Simi Valley Indian Hills Indian Meadows Floor Plans

June 11, 2011 By Ted Mackel Leave a Comment

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There were four models built in the Indian hills Indian Meadows Tract of Simi Valley. Below are each of the Floor Plans along with a graph of the sales that have occurred form 2003 to May 31st 2011 for each floor plan.

Filed Under: Simi Valley Tracts Tagged With: Floor Plans, Indian Hills, Indian Meadows tract, Simi Valley

Simi Valley May 2011 Real Estate Market Report

June 9, 2011 By Ted Mackel 1 Comment

The Simi Valley May 2011 real estate market report for home sales is continuing on some similar trends. Total single-family detached homes sold in the month of May were slightly lower than the previous year with a 6 1/2% decrease, but higher than in April 2011. The average sales price for Simi Valley single-family detached homes declined for a second month in row from $443,038 to 433,502. The decline is influenced by the higher number of homes that close in the under $400,000 price range. If you look at each chart from the monthly reports posted in the Market Updates section of this blog; it is clear the highest buyer activity is in the below $400,000 price range. Continuing from earlier this year we have seen more homes selling below $300,000 and in May there were 16 single-family detached homes closing below this level which is the highest number since the height of the real estate market back in 2006-2007.

In recent reports Robert Shiller, one of the economists behind the S&P Case/Shiller index of home prices, has stated he would not be surprised if home values decline another 10% to 25%. While this seems alarming, Mr. Schiller is clear that some of this decline will not be seen in actual prices but rather masked by inflation.

May of 2009 saw homes close at lower pricing than today and each time the Simi Valley real estate market approaches price points similar to 2009, buyers and investors purchase activities pick up and appear to help support a flatter market condition.

With home sales under 300,000 increasing, first-time home buyer’s affordability increases as well. Some housing tracts in Simi Valley stabilized and some pulled back a little. Overall, the three-year trend of approximately 80 single-family detached homes selling each month continues and signals for gains and recovery in home pricing is still on hold. The chart below is broken into pricing categories, if you look at the price range your home falls into, you can see what the average market timing is, what the average sales price is compared to the original list price and how many homes in your range or closing each month.

Filed Under: Market Updates Tagged With: declines, Home Sales, real estate, recovery, Robert Shiller, Simi Valley

I’d Like To Buy Your House For Cash – Beware of Short Sale Flipping

June 9, 2011 By Ted Mackel 4 Comments

A series of news reports over the last few years are covering a problem that has hit the Short Sale Market. As in any market, if there is an opportunity, the opportunist go to work. This time they are trying to create screaming deals out of Short Sale properties.

These flippers target houses on the verge of foreclosure and persuade banks and mortgage companies to accept lowball buyouts, sometimes by using questionable appraisals and not disclosing that a quick sale at a higher price has already been arranged, experts say. (source: Herald Tribune The New Flipping:Short Sales)

If you are having trouble with your mortgage, have been trying to get a Loan Modification and you have fallen behind in your payments, now is the best time more than ever to be skeptical of anyone who approaches you about your home.

Once you get behind on your loan payments, here in California it won’t be long before your lender will file a Notice Of Default (NOD). The NOD is a public record filed at the county recorder’s office and there are several private companies that mine these records and provide a subscription to interested parties. RealtyTrac and ForeclosureRadar are two of the better known services. Investors, home buyers and real estate brokers subscribe to these services.

Real Estate professionals use the public filings on properties in foreclosure to find more business as a means to see if those in foreclosure would like to try and Short Sell their homes.
Investors are looking to get homes below market value so they can clean them up and put them on the market for a profit.
Home buyers typically believe they are going to get a home significantly below market if they can contact a home owner in foreclosure directly.

Once an NOD is filed against your property, expect your phone to ring and possibly people come to your door. If they are offering to buy your house and help you avoid foreclosure this should be a very big red flag. Let’s assume your house has a market value of $400,000 and you owe $500,000. You have know way of knowing the true market value of your home without getting an appraisal or broker price opinion (BPO) from a disinterested third party. The person standing at your front door or calling you on the phone is coming to you directly cause they want your property below market value and the farther below market value the better for them.

Here is the rub, if they promise to handle everything and work with the bank to short sell your home, if they then can convince the bank to take an amount significantly below market value, that could be seen as defrauding the bank. In this article from Bloomberg, Banks face fraud from short sales as home flopping spreads you can see that the banks and FBI are catching on to this scheme.

Two Connecticut real estate agents found a way to profit in the U.S. housing bust: Buy low, sell fast. Their tactic was also illegal.

Sergio Natera and Anna McElaney are scheduled to be sentenced in Hartford’s federal court in August after pleading guilty to fraud. Their crime involved persuading lenders to approve the sale of homes for less than the balance owed –known as a short sale — without disclosing that there were better offers. They then flipped the houses for a profit.

The Federal Bureau of Investigation, the California Department of Real Estate and mortgage finance company Freddie Mac have warned that such schemes may be spreading after a plunge in values left homeowners owing more than their properties are worth.

When you get approached directly by people trying to make deals, they aren’t at your door for charity. Also other promises such as selling you back the property, letting you stay as a renter or that they will give a cash incentive after escrow closes are all signs of more trouble. Every single Short Sale transaction I have worked on in the last year has involved a document from the Short Sale Lender, that is signed and notarized by both buyer, seller and all real estate agents involved. This document has all parties acknowledge that the transaction is at “Arms-Length” and that the Buyers are not getting money at or after closing (there is one exception I will explain later), there are other terms as well.

If a Real Estate Professional approaches you to help you with Short Sale, then interviewing properly is very very important. A Short Sale transaction is complex and not for just any agent. Those of us who have completed many Short Sale Transactions will tell you that each and every one is different. In my opinion there is no possible way to claim to be an expert or specialist in Short Sales because no two short sales are the same. Experience, closing percentage and the agent’s support structure are some of the better indicators to show if the agents you are interviewing can get the job done. Unknown to the consumer, real estate agent email in-boxes receive offers for short sale training every week. Each course offers a designation of “specialist”. While there is value in these classes, nothing beats the experience in putting these transactions together. There is no cookie cutter formula, it is good old fashioned negotiating and doing the legwork necessary to get an approval.

I have experience in closing HAFA and regular Short Sales with most major banks, including Wells, Chase, IndyMac (One West), GMAC, HBSC, HOME EQ etc. I have closed Short Sales in as few as 60 days from offer to close of Escrow with the typical short sale talking 120 to just under 180 days from offer submission to closing. I use a third party negotiator who is a licensed Real Estate Broker and practices Real Estate Law. We have closed every single one of our Short Sale Transactions we have worked on together. It takes a coordinated effort to keep the loss mitigator’s attention on my client’s file and be able to deliver information in a timely manner to assist the bank in expediting an approval decision.

I have represented buyers on Short Sale purchases and this is why I believe I am qualified to offer the advise that not every real estate agent is cut out to work on a short sale. I wrote about Short Sales from a Buyer’s point of view in Simi Valley Home Buyers 3 Important Concerns with Short Sales Offers

A good review would include:

If your trying to modify your loan, contemplating a Short Sale and you are getting calls from investors and real estate agents to help you with your house, proceed with Skepticism and Caution. Consider that if you are in danger of losing your home to foreclosure, what benefit is it to you to help someone pull a fast one on the bank so they can get control of your property and flip it for a profit? We are seeing, as in the articles I quoted above that the FBI and the banks are watching, is it worth the risk? If Short Sale is your only other option beside a foreclosure, I can help you move through the process discreetly. Many times my clients have not want for sale signs in their yards and want to keep this part of their financial life as low key as possible and I try to accommodate that where I can.

Disclaimer: Seek advise from a Tax professional and Attorney as there may be issues related to Loan Modification, Short Sale or Tax Implications. Keller William Exclusive Properties & Ted Mackel is not associated with the government, and our service is not approved by the government or your lender. Even if you accept an offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.

Filed Under: Sellers, short sales Tagged With: foreclosure, GMAC, HAFA, Indymac, Loan modification, NOD, Property Flipping, Short Sale, Simi Valley, Wells Fargo

Simi Valley Indian Hills Ranch Tract Floor Plans

June 8, 2011 By Ted Mackel Leave a Comment

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There were four models built in the Indian hills Ranch Tract of Simi Valley. Below are each of the Floor Plans along with a graph of the sales that have occurred form 2003 to May 31st 2011 for each floor plan.

More Indian Hills Tract Information:

Filed Under: Simi Valley Tracts Tagged With: floorplans, homes, Indain hills tract, Indian Hills Ranch, Simi Valley

Q 1. What is a Lis Pendens?

Q 2. What is the purpose of a Lis Pendens?

Q 3. Can property be transferred if a Lis Pendens is recorded against it?

Q 4. Who can record a Lis Pendens?

Q 5. Can a buyer record a Lis Pendens against a seller who refuses to close escrow?

Q 6. Can a buyer record a Lis Pendens against a seller who refuses to return a deposit?

Q 7. Can a seller record a Lis Pendens against a buyer who breaches the contract?

Q 8. Does a liquidated damage clause affect a buyer’s ability to record a Lis Pendens?

Q 9. What does a Lis Pendens claimant have to do in order to record a Lis Pendens?

Q 10. Can a Lis Pendens be recorded if the purchase contract requires arbitration and not litigation?

Q 11. Once a Lis Pendens has been recorded, how can it be removed from title?

Q 12. What does “preponderance of the evidence” mentioned in the previous question mean?

Q 13. What does “probable validity of the claim” mean?

Q 14. Who has the burden of proof in a motion to expunge a Lis Pendens?

Q 15. How long does a property owner or other party bringing the motion to expunge (“moving party”) have to post a bond if ordered to do so as a condition of granting the motion to expunge?

Q 16. Can a Lis Pendens claimant ever be required to post a bond in order to keep the Lis Pendens of record?

Q 17. What is the effect of a Lis Pendens if it has been expunged or released?

Q 18. Can attorney fees be awarded as a result of a motion concerning expungement or maintenance of a Lis Pendens?

Q 19. What effect does expungement of a Lis Pendens have on any lawsuit between the claimant and the property owner?

Q 20. If a Lis Pendens has been expunged or removed, does a subsequent purchaser of the property take title subject to the outcome of any lawsuit still pending between the claimant and the property owner?

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