Home > Blogs > Endre Barath,Jr.'s Blog
22,592 views

Endre Barath,Jr.'s Blog

By Endre Barath,Jr. | Agent in Beverly Hills, CA
  • If you are a seller who is considering "Deed in LIeu of Foreclosure" read this!

    Posted Under: Home Selling in Los Angeles County, Financing in Los Angeles County, Foreclosure in Los Angeles County  |  January 27, 2013 10:58 AM  |  651 views  |  No comments

    If you are a seller who is considering “Deed in Lieu of Foreclosure” Eight things you need to know!

    If you are a seller who considers “Deed in Lieu of Foreclosure” the most important points to be aware are the following:

    1.    In most cases a Deed in Lieu of Foreclosure is better than opting to be foreclosed on your home.

    2.    Short Sales are different from Deed in Lieu of Foreclosure. The Borrower could be still liable for the loan amount not covered by the short sale as well as some Tax Liability as well.

    3.    The Borrower must approach the Lender and the lender must agree, because the law is clear that the lender cannot approach a homeowner about giving up their home.

    4.    The most important point to keep in mind is that “The Equity” will be lost on the home.

    5.    There could be some Tax Consequences as well.

    6.    The Credit History is affected by this action as well. Although it is better than a Foreclosure, as well as better than a Short Sale, still it is a black mark on the Borrower’s Credit History.

    7.    I would recommend, before you proceed with this action, talk with your Tax Advisor as well as a Mortgage Broker to understand the consequences of this type of action.

    8.    Lastly before you sign over the Deed also consult with a local Realtor to make sure what the Local Market is like where you live. Keep in mind you might not need to turn your deed over. It is possible that due to the short inventory you can get your home sold fast and without too much difficulty and maintain your Good Credit as well as your Equity on the home!

    Then once you have all the information you can make an informed decision and do what is best for you in your circumstance!

    If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 or emails me at homes@endrebarath.com or visit one of my websites at http://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations.

     

     

  • How to prepare for a Short Sale before you begin the Sales Process?

    Posted Under: Home Selling in Los Angeles, Financing in Los Angeles, Foreclosure in Los Angeles  |  November 8, 2012 6:49 PM  |  685 views  |  No comments

    How to prepare for a Short Sale before you begin the Sales Process?

    As some of you know, I have written what a Short Sale is from a Seller’s Perspective at the end of August. Just in case you missed it I am enclosing a link to that post (http://actvra.in/GWv ) Now I would like to focus on how to prepare for the Short Sale Process.

    The First Step: The Realtor & the Seller should have an extensive, truthful discussion about the Seller’s financial status. Honesty and full disclosure are essential to the successful closing of a short sale transaction.

    The Second Step:   The seller & the listing agent need to work together. Now with that said the Seller needs to contact the lender and feel out the Lender how open are they to a Short Pay Off? This is a complex transaction and both Seller & Listing Agent have to work harder to get a successful closing of the transaction.

    Keep in mind the Process consists of convincing the Lender to reduce the loan balance and close the transaction. This is not that easy and is very challenging. What you need is good negotiation skill from both the Seller and the Listing Agent.

    The Third Step:  This is the hardest part Working with the Lender determine the Lender’s Guidelines. The best thing you can do is anticipate the list of required documents at the begin  be prepared at least with the following:

    1.    The listing agreement

    2.     The evidence of financial hardship to the Lender (strong evidence is key)

    3.    Proof of income or the lack of

    4.    Two years worth of Tax returns & W-2s

    5.    Latest personal checking account statement

    6.    Copies of all past due secured and unsecured debt notices

    7.    Latest mortgage statement

    8.    Current Tax bill

    This will put you in the right direction to a successful Closing of a Short Sale. There are a lot of other things to consider. Most of all have a skilled and trustworthy Realtor to help you through the difficult challenges of a short sale.

     

    If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 or emails me at homes@endrebarath.com or visit one of my websites at http://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations.

  • Breaking News: Techland-Time.com Reports that the Fed will monitor your Blog & Tweets

    Posted Under: Financing in Los Angeles, Foreclosure in Los Angeles, Property Q&A in Los Angeles  |  October 2, 2011 11:05 PM  |  1,475 views  |  1 comment

    Breaking News: Techland-Time.com Reports that the Fed will monitor your Blog & Tweets

    One of the biggest benefits of being an American Citizen is the Freedom of Speech. Quietly and slowly one of the most important Rights we possess is being eroded. (I do not care if you are a conservative or a liberal from your political views.) What I care about is the fact that I do not want to live under a dictatorial regime. I did not and do not like Communism, nor Fascism or Nazism. In a nutshell any type of Government that restricts freedom of expression is not where I want to live under.

    Now that you know how I feel, let me focus on this event that is being quietly imposed under the radar of every American.

    The Federal Reserve has not only decided but more importantly is planning on monitoring all forms of social media. The ‘pretences’ they are using is that ‘…they want to reach out to key bloggers and influencer…” and at the same time “…they want to monitor any and all public online conversations about the Fed…” WOW this is outrageous welcome to 1930’s Germany or post 1945 Hungary and the Iron Curtain.

    So if you have been badmouthing the Fed Chairman and his cohorts about their inept ways of handling the Economy or any negative criticism about them, be warned. This privilege will be taken away from you. First they will start monitoring Facebook, Twitter, YouTube and online forums as well as aggregate outlets like the Wall Street Journal, CNN or even Active Rain for all I know.

    I am of the firm belief that the Fed Chairman and his Cohorts should be focusing on fixing the economy that they were so instrumental in destroying when they kept raising the interest rates instead of thought control. As a Beverly Hills Realtor who has been affected by their incompetence I am outraged. I have seen Southwest Los Angeles real estate prices dropping 40%-50% in the past two years. Many good people losing their homes and struggling to make ends meet. West Los Angeles has been affected to the tune of 25% price drops as well. Many of us Realtors are struggling trying to survive as well. So with that said, everyone should be as outraged as I am and let your politicians know that we do not want the Fed to monitor or worse take away our Constitutional Right to Freedom of Speech.

    If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu, please feel free to give me a call at 310.486.1002 email me at homes@endrebarath.com or visit one of my websites at http://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations

  • Do you know that the bank after it forecloses on your home can file a lawsuit against you?

    Posted Under: Home Selling in Los Angeles County, Financing in Los Angeles County, Foreclosure in Los Angeles County  |  September 1, 2010 9:25 PM  |  505 views  |  1 comment

    The bank forecloses on your home and then files a lawsuit against you. How is this possible?  I was reading in RISMEDIA on June 8, 2010, about a home seller who has sold his home in a short sale. He sold it for approximately $200,000.00 less than the first and second mortgage he owed on the property. The Mortgage lender has agreed not to pursue further action to recoup their losses.

    Evidently there are many home sellers who did not negotiate this clause into the transaction. Hence there are many lenders who file lawsuits and are going after foreclosures and short sales owners. Why you might say? The answer is, that lenders are trying to discourage bad behavior, such as angry homeowners who destroy kitchens, bathrooms and sell fixtures such as granite counter tops on e-bay to name a few.

    Customarily mortgage companies will not sue homeowners who negotiate in good faith or those who default due to job loss or other catastrophic circumstances. Nevertheless I strongly encourage potential sellers who are underwater to get it in writing from the Mortgage Lender that they will not pursue further legal action once the transaction closes.

  • How to get an offer accepted? Use a Realtor!

    Posted Under: Home Buying in Los Angeles, Home Selling in Los Angeles, Foreclosure in Los Angeles  |  August 26, 2010 11:49 AM  |  441 views  |  No comments

    How to get an offer accepted? Use a Realtor!

    Many buyers are asking on various internet portals how to get an offer accepted.  My answer is easy, use a Realtor. The multiple offer phenomenons have returned in certain markets. Where is that? The areas are in the Short sale and Bank-owned property. This market is smoking.

     I have buyers who have submitted at least 15 offers. Forget low balls, think full price and above asking price. Then why is my offer still not accepted? Buyers ask these questions. How is it that the lower priced offer got accepted? The answer is they had cash, you have FHA. Many private remarks to agents state NO FHA. As discouraging it is you still have to keep going. Now the great news comes CONGRATS, your offer has been accepted, six, seven, eight months later still no Closing. Why is that? It is called SHORT SALE!.

    This process is tedious and lengthy. Do you have to patience for this? 

    I just closed on a Bank Owned Property, after four different attempts. Why did it take this long? The buyer had all cash, we needed to learn, that automatic low balls do not get acceptance. We were in multiple offers all four times. We missed out four times. Then as luck would have it, the first buyer did not perform. Said they had all cash, truth be told they were exaggerations. Then the second buyer did not perform either. So you would think we automatically came in. No, we had to give best and final to compete with three other buyers. So an All Cash nine day escrow with virtually no contingencies and a million dollar got us a property.

     No what did it take to get the offer accepted? The answer is a good strategy, good financial status and a strong stomach to take on a fixer with virtually no contingencies and a Realtor that guided the buyer thru these turbulent negotiations. So we had a happy ending on the REO.

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer