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Why You Won't See A Flood of Foreclosures
Posted Under: Home Buying in Los Angeles | December 30, 2009 9:38 PM | 108 views | 5 comments
A lot of people are predicting and expecting a "tidal wave" of foreclosed properties coming on the market. The fact is, in the Los Angeles area, the volume of foreclosed homes for sale has slowly dwindled since January, 2008, the beginning of the foreclosure era.
Here are two reasons why you won't see a flood:
1. Banks are being forced to modify loans
Loan modifications rise 69 percent in third quarter
National bank and thrift servicers implemented more than 680,000 home loan modifications and payment plans in the third quarter of 2009, a 69 percent increase compared with the second quarter, according to a report released by the Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS).
2. Banks realize that withholding/trickling inventory results in greater demand.
What about the reports of a massive looming shadow inventory?
Expect banks to modify loans. They could modify every shadow inventory home in 9 months at the current pace. Expect the banks to withhold properties to artificially stimulate demand. Most of all, the shadow inventory is not here in your backyard, its in areas like Fresno, Arizona, Las Vegas, and other areas with huge default rates and little natural demand.
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Open House Today! Totally Remodeled West LA Condo!
Posted Under: Home Buying in Los Angeles | December 20, 2009 11:22 AM | 39 views | No commentsCome stop by my open house TODAY, Sunday 12/20, from 2-5pm. This will be the FIRST look at this newly remodeled beautiful condo in West LA. Take advantage of one of the lowest priced condos on the Westside before it hits the MLS!
1722 Brockton Ave. #8
Los Angeles, CA 90025
See more info here:http://www.postlets.com/res/2761202
Come on by, or contact me for more information.
Richard Schulman
Keller Williams Real Estate
#1 Listing & Selling Agent, KW Westside 2007-2009
(310) 482-0173
schulmanrd@yahoo.com
http://www.richardschulman.com -
Last Chance For Free Money
Posted Under: Home Buying in Los Angeles | September 18, 2009 12:48 AM | 145 views | No comments
The tax credit for first time home buyers expires November 30th. While that seems that is far away, here is why it is not:
This is for escrows closed by November 30th. If you are doing conventional (non-FHA) financing, this is a 30-35 loan period, from the day you open escrow. If you are going FHA, it could take up to 45 days to close your loan! This may be extended due to huge loan volumes and the Thanksgiving Holiday.
If you work backwards, you realize you need to be in escrow by October 15th at the latest to comfortably hit this deadline. As you may know from bank-owned properties it can sometimes take 5-15 days to get a contract signed and an escrow opened. Even a regular sale can take a few days to open an escrow, so you need to write your offers even earlier.
If you have any questions, let me know.
Richard Schulman
Keller Williams
310-482-0173
#1 Listing and Selling Agent, KW West LA
schulmanrd@yahoo.com -
Profiting in a Real Estate Recession: A Free Workshop
Posted Under: Home Buying in Los Angeles | June 18, 2009 10:53 PM | 160 views | No commentsProfiting in a Real Estate Recession
Come to a Free Real Estate Workshop About Opportunities in Today's Market
Sunday, July 12th
10am-12pm
Westwood∙ How to Find the Best Deals
∙ Unique Opportunities for First Time Homebuyers
∙ Squeezing the Bank
∙ Analyzing Properties for Rental
∙ Market Conditions
∙ Loans and Down Payments
∙ How to Purchase Multiple PropertiesContact me to RSVP and to get directions.
Richard Schulman
REALTOR
(310) 482-0173
schulmanrd@yahoo.com -
What is a short sale?
Posted Under: Home Buying in Los Angeles | May 5, 2009 9:38 PM | 166 views | No commentsWhat is a Short Sale?
A Short sale, or short pay off is when the seller of a property attempts to sell it for less than is owed. The seller must coordinate with the broker to obtain an approval for a sales price that a buyer will pay, and that the bank will approve. The process takes several months to complete.Keep in mind when you see a short sale the price is not the price that the bank has approved, but the price the seller's agent picks to generate offers. Often times this number is intentionally low to solicit multiple offers to show to the bank.For buyers I recommend avoiding short sales unless you have time to wait. The average approval time is 2-6 months.For sellers a short sale can damage your credit less than a foreclosure. If you are in negative equity situation, and would like an evaluation to determine your options, please do not hesitate to contact me. -
Multiple Offers/Over Asking
Posted Under: Home Buying in Los Angeles | March 14, 2009 10:54 AM | 140 views | No comments
Here are a few recent examples:
11627 Blythe - $269,000 asking,my client wrote for $310,000 and is one of 11 offers
17425 Hemmngway - $310,000 asking - my client opened escrow at $330,000.
14810 Hartland - $289,000 asking - my client wrote for $317,500 and is one of 8 offers. -
Observations: What to Offer Compared to Listing Price
Posted Under: Home Buying in Los Angeles County | February 18, 2009 11:29 PM | 129 views | No commentsClient usually have varied strategies on what to offer compared to list price. My advice - evaluate each property independently. You'll find that banks are now pricing foreclosures agressively, and you may have to offer over asking price. In fact, most of my foreclosure sales have been for above asking price - by as much as 20%. Banks - and some private sellers - are pricing their homes competitively to get multiple offers and get a bidding war.
Don't think that you can go around offering way below list price and buy a home. Of the 30 homes I sold last year - none went for more than 5% below list - but most went above.
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