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Ron Escobar's Blog

By Ron Escobar, Broker | Agent in 90019
  • In california? Can the bank foreclose if I am trying to do a Short Sale?

    Posted Under: Home Selling in Los Angeles, Foreclosure in Los Angeles, Property Q&A in Los Angeles  |  July 18, 2013 7:54 PM  |  538 views  |  1 comment

    The California Homeowner’s Bill of Rights which became law on January 1, 2013 provided numerous defenses and benefits to struggling homeowners.  As any other law, it can be very confusing, and often missquoted.  It started the process of eliminating the process known as Dual Tracking, which is where a lender is foreclosing on a homeowner’s property while at the same time being in the process of working out some form of resolution, such as a Modification, Short Sale or some other agreement with the homeowner.

    Unfortunately, most homeowners are under the impression that the law took full effect on January 1, 2013.  This is NOT THE CASE!  The law takes effect in stages with the final part restricting Dual Tracking taking effect on January 1, 2018.  Until that time lenders can employ Dual Tracking except in two instances:

    1. Where the lender is negotiating with the homeowner to enter into a loan modification agreement
    2. Where a Short Sale is approved by the Lender

    Until the point that the Lender issues a final approval of a Short Sale the Lender can continue the foreclosure process while negotiating a Short Sale.  Once the Short Sale is approved by the lender then and only then does the Lender need to stop all foreclosure actions pending the closing of the Short Sale transaction.

    So, it is important to keep any eye on any pending foreclosure action that is taking place during any Short Sale negotiation to make sure the property is not lost to the Lender.

    ron@select-realestate.com

  • Why are Short Sales so Difficult?

    Posted Under: Market Conditions in Los Angeles County, Home Selling in Los Angeles County, Foreclosure in Los Angeles County  |  September 10, 2012 9:45 PM  |  525 views  |  No comments

    A short sale makes sense right? So why is it so difficult?

    I work a large amount of Los Angeles Short Sales, and my team and I have become advanced experts in this type of transaction. People think a Short Sale takes a long time and lots, of paperwork… -it is true!

     

    There are many stakeholders, each with their own interests to look after and put in front of yours. The involved companies have committees and teams that decide on process and guidelines of what they will accept and will not accept, and how they will accept it. Yes, each stakeholder has probably a list of 50+ conditions they have to satisfy… and sometimes the conditions of one stakeholder contradict the conditions of another… to that mess you then add humanity and its nature… there you have it! Rigmarole!

     

    An example of who may be involved in approving your Los Angeles Short Sale:

    1. Loan Servicer (this could be Bank of America, Wells Fargo, Chase, etc., etc.)

    2. Loan Servicer for Subordinate Liens (2nd or 3rd lien holders)

    3. Mortgage Insurance Company for each loan!

    4. Governmental entity (Fannie Mae, Freddie Mac, FHA, VA, etc.)

    5. Actual Investor

    a. He or she who owns your loan–this may be a pool of investors! –each with their own list of conditions!

    6. The Buyer

    7. The Buyer’s new lender

    8. The Buyer’s appraisal company

    9. The buyer’s mortgage insurance company

    10. Listing and selling agents!

     

    Well you get the picture! With these many organizations, each trying to get the best out of the deal is a miracle that we are able to do it. A successful short sale listing agent has to have:

    · Determination

    · Superb Organizational Skills and Support Team

    · Technological Expertise

    · Negotiating skills second to no one! -I am proud my game

    · Knowledge

    · Friendships and presence within the industry to be able to call in favors if need be.

    · Highest Ethical Standards in the Universe (I mean it!)

    · Process High Volume of short sales so they can do it with patience and their income is not affected by any one particular deal.

     

    If you are considering a Short Sale in Los Angeles County, please do your homework and interview many agents. Read their profiles, send them emails, ask them questions… don’t take it lightly…you will be very glad you did so at the end when you have a successful transaction and you are able to buy a new home within 3 years, and after shedding 100’s of thousands of dollars in bad debt!

     

    Do your homework up front and before you decide on who will be earning your business! Stay in control.

    -One more thing: DO NOT BELIEVE THEIR/OUR CLAIMS! Ask us to Document them. Ask for MLS numbers for their closed transactions, then look the mls numbers in the internet or call your local MLS group. Ask for previous client’s contact information and call them to verify is true!

    You are in control… not the bank and not the real estate agent. You can make a calm decision, but do not wait until the last minute.

    I wish you the best, and remember that home is where your heart is at. You will take that with you, no matter what building or structure you will occupy. It is going to be OK, no matter what!

     

  • A foreclosure is just that... do not let it get to you!

    Posted Under: Foreclosure in Los Angeles, Credit Score in Los Angeles  |  July 16, 2012 11:40 PM  |  441 views  |  1 comment

    If you are a home owner or business person that is going through tough economic times, you are not alone!  And it is not YOUR fault!  I keep on repeating this story.  Home Foreclosure is probably happening to one in every 5 home owners. 

    I am very sad after I read the post on ABC News http://abcnews.go.com/US/arizona-courtroom-suicide-cyanide-found-arsonists-car/story?id=16753754 where a once consumers business man commits suicide in front of the court when he was found guilty of arson.  He had allegedly set his "underwater house" on fire to avoid foreclosure and collect insurance proceeds... police found the situation suspicious and brought charges against him... he was found guilty of arson and facing 16 years in prison, decided to take his like in front of the cameras and the world.  Very sad.




    I know how difficult it is, because I lost everything I had made back in 20008 when the housing crisis found me over-leveraged and extended to the fact where I lost all my properties and had to file for chapter 7 bankruptcy.  However, four years later after hard work and dedication I am making a decent living helping home owners short sale their property and avoid foreclosure... and also helping bank fix and sell foreclosed properties... I employ over 40 people and my FICO is above 685!

    Why do I share this?

    i share it to point out that there is life after foreclosure and financial crisis.  The sun comes after the storm and we live in a wonderful country with laws that protect consumers and its citizens.  Do not let foreclosure bring you down...   the worst it can happens is that you start again... only this time you are smarter and much better prepared.

    A short sale is a great way of moving forward and maintaining control of the situation and dictate the time frame... you get to open escrow and sell the property like you would normally do... and now the banks are helping with relocation costs thanks to our government pressure on them.  You can get up to $30,000!!!  yes I have negotiated that for some of my clients.

    If you are feeling anxiety or depression over a possible foreclosure, please talk to someone... YOU ARE NOT YOUR MATERIAL POSSESSIONS... you have loved ones that will be standing by you and will be proud to see you get through the storm... please do not hurt yourself or your family...
    no property in the world is worth your happiness and love of your family.  There is help.. just reach out and plenty of people like me are here to assist you in your transition.


    Ron Escobar, MBA
    Broker CA DRE 01460645
    General Contractor Lic 917824
  • Strategic Short Sales on the rise! (no surprise!)

    Posted Under: Market Conditions, Home Selling, Foreclosure  |  June 15, 2012 10:25 PM  |  303 views  |  No comments

    At Select Real Estate we understand you have questions about short sales and your options. Do you short sale, file for bankruptcy, or maybe try for the hard to get loan modification. Hey, you may have already tried one of or all of these options.

    I have put together the below video which discusses what your options are when deciding whether or not to short sale your home. I will be the first to tell you that a short sale is not the answer for every homeowner.

    Short Sale – Its not your fault…

    Certain areas of California have been hit especially hard. There had been double digit home prices and double digit unemployment. Even in the luxury market where I focus my efforts we have seen double digit drops in home prices. There are short sales in Beverly Hills, short sales in Santa Monica, short sales in West Los Angeles. There are so many short sales, that when I am working with buyers, I almost forget to tell them if it is a short sale or not. Most of the time my home buyers assume it is a short sale also.

    Remain In Control By Exploring Your Short Sale Options

    You have a couple of options when deciding what to do about your home if you owe more than it is worth. There is a Deed in Lieu, Short Sale, Loan Modification and Bankruptcy. To determine the best option for you, please contact Ronald Escobar to make an appointment for a free short sale consultation to determine if a short sale is the right option for you.

    A strategic short sale is when a home owner who may be able to afford to make the payments, makes the strategic decision to short-sale because it makes financial sense for her to decrease her debt low. It is happening, and banks are often approving them if the case is presented to them appropriately.

    For more information about your options please call the offices of Select Real Estate at 310-557-2100.

  • The 2012 Real Estate Agent -Serving Generation NOW in Los Angeles!

    Posted Under: Home Selling in Los Angeles County, Agent2Agent in Los Angeles County, Foreclosure in Los Angeles County  |  June 15, 2012 9:49 PM  |  463 views  |  No comments


    Today's real estate practice is very different than 2009, 2010 or 2011 real estate practice. (understatement).


    Yet the vast majority of real estate professionals are practicing real estate like they have been doing it for the last 25 years!   (as in 1985! when they had dial up phones and Ronald Reagan was president!)

     In today's market, buyers want information NOW. 

    Buyers want the power to look for and find their own properties.  They do not need an agent to do this for them.  However, they do need an agent who is a Real Estate Expert to coach them and mentor them through the negotiation and contract and escrow process.  Buyers in Los Angeles need a Los Angeles Real Estate Expert who understands the escrow process, general laws and issues and who has the connections and abilities to get their offers accepted and help them get approved for a mortgage and ready to act on a seconds' notice.

    Sellers need an agent who is all over the internet promoting their proerty so it gets found by thousands of buyers accross the world.  They need a Los Angeles Real Estate Expert who is going to do a video of their house and be able to sho it online, as well as in person in a NOW time-frame.

    Buyers and Sellers are not really interested in reading lenghty articles, when a picture or video clip in a smart phone can answer their question NOW when they speak to it... for example...

    This is a video on why you should select our team to be your buyer's agent:


    This is a video on why you should select our team to be your Listing Agent:



    And here is a video on how a property is successfully promoted:



    Well... does it seem like I am self-centered? Do I like to see myself on the screen?
    Maybe! LOL

    But the more interesting  questions are: 

    Did I reach you with my post?      Did you watch my videos?

     Did you think about buying the duplex on 92nd Street? 
    (is a great deal!)

    And that is how the conversation and web-presence starts...

    2012 real estate market needs 2012 Real Estate agents!


    Ron Escobar, MBA
    Broker & General Contractor
    DRE Lic.# 01460645
    CSLB Lic# B917824
    ron@select-realestate.com


    PS.  Did you catch how many times I wrote Los Angeles Real Estate Expert? 

    Why do you think I wrote Los Angeles Real Estate Expert so many times?
  • Morgage Debt Relief Act Extension

    Posted Under: Market Conditions in Los Angeles, Home Selling in Los Angeles, Foreclosure in Los Angeles  |  April 11, 2012 8:30 PM  |  723 views  |  No comments
    There has been talk that the Mortgage Debt Relief Act (MDRA)  which expires at the endo of this year may be extended. In fact, the Mortgage Debt Relief Act (known officially as The Mortgage Forgiveness Debt Relief Act and Debt Cancellation) has made it’s way into President Obama’s fiscal year 2013 budget proposal. The current proposal to extend the Mortgage Debt Relief Act is in the preliminary stages, but it appears that (MDRA) will be extended to January 1, 2015 if it passes muster.


    Officially, the extension is being suggested due to the continued importance of facilitating home mortgage modifications. But let’s read between the lines. It is an election year, of course there will be talks of extending the Mortgage Debt Relief Act. Regardless of the reasons, this is good information for homeowners.

    As Short Sale Specialists, we have helped numerous homeowners who have found themselves victim of the steep decline in real estate prices. Our team is compassionate and understands exactly what you are going through. We find that the short sale sellers we are helping go through a few different situations. Perhaps you fell behind on your mortgage due to a job loss, injury, long term unemployment, illness and find yourself not able to pay the mortgage.  The Mortgage Dent Relief Act has helped thousands of people avoind paying a Debt Forgiveness Income Tax when the banks gives the borrower  a 1099 form for the amount of money the bank lost or forgave when approving the short sale.  This could literally be thousands of dollars in taxes!!  But not in 2012!

    What do you do? You called the bank. What did the bank tell you? Something along the lines of, “well, you’re not far enough behind on your mortgage payment to help you” or “How much can you pay today?” Any of this sound familiar? Show us a short sale seller and I will show you a bank more interested in helping themselves than helping their borrower.

    Enter Select Real Estate. We will not claim as others do, to be so called, “Short Sale Experts”. That term is way overused. I would prefer to say we are extremely knowledgeable short sale negotiators. We are very good at negotiating short sale listings and, In fact, short sales are our main focus. The knowledge we obtain from negotiating short sales everyday is what makes us successful.

    While the writing appears to be on the wall in regards to the Mortgage Debt Relief Act Extension, it has not happened yet. As is stand, the current Mortgage Debt Relief Act is set to expire at the end of this year. We highly recommend you contact our office as soon as possible to discuss your current financial situation to see if a short sale if right for you.

    Select Real Estate has been helping homeowners who are underwater on their home to navigate the ever changing rules as they apply to short sales. Clients call us daily to discuss their particular circumstances. We make sure to educate them about the possible Mortgage Debt Relief Act Extension and send them the IRS Publication, which can be found here http://www.irs.gov/individuals/article/0,,id=179414,00.html

    We Serve the following Areas:

    Beverly Hills Short Sale
    Brentwood Short Sale
    Santa Monica Short Sale
    West Hollywood Short Sale
    West Los Angeles Short Sale


    Ron Escobar, MBA

    Broker DRE 10460645

  • What is Cash for Keys?

    Posted Under: Foreclosure in Los Angeles County, How To... in Los Angeles County, Moving in Los Angeles County  |  February 22, 2012 6:37 AM  |  589 views  |  No comments

    What is Cash for Keys?

    With so many homes in foreclosure, it’s possible that your landlord is losing their property to foreclosure and you may not know it, until it’s too late. When or if this happens to you, as a tenant, you’ll have just a few choices, which we’ll out line in a moment for how to proceed and protect yourself from losing the place you call home .As a top Los Angeles Realtor (R) I often negotiate cash for keys.

    What happens when the bank forecloses or your landlord tries to short sale their property is a matter of process and law. While the tenant’s rights laws can be on your side, it’s possible that a  judge may rule against you or may rule for you. You won’t know which until you get there and make your case. In order to take your case before a judge you’ll need to hire a reputable attorney familiar with tenant’s rights to represent you in court, which can be expensive. You have to remember that there are two sides to every story and both landlords and tenants have rights and responsibilities.

    Even though there are many laws that protect tenants from being forcibly removed from their homes, you may still have to move for no other reason than the new property owner wants to live in the property and is not going to rent it anymore.

    When that happens, if you’ve hired and attorney, you won’t be able to recoup the money you spent on the lawyer and you may still be required to move via a judge’s order.  YIKES! In fact in dozensof cases in LA, judges sided with banks and theit top Los Angeles Realtor (R)

    Moving is expensive, especially when you may not have had time to plan financially to save up for moving costs. These costs add up quickly with first month’s rent plus last month’s rent, any additional deposits that are required, plus movers.

    Cash for Keys offers the best choice for the landlord and tenant when negotiated by a top Los Angeles Realtor (R). It allows you the opportunity to leave the apartment on your own terms, by turning in your keys and agreeing to a move-out fee, which can supply you with the necessary funds to move and get reestablished in a new building. Negotiating Cash for keys can makes a tough time that much easier to afford. 

    Cash for Keys provides a graceful exit, during a tough time for you and your landlord.

    Your choices:

    1.       Sue, or fight the eviction and wait and risk getting nothing – Pay a lawyer to help you

    2.       Negotiate for Cash for Keys – Keep control and help yourself

    Click to link below to find out more about your rights in Los Angeles County.

    Your tenant rights and the Eviction Process

    Get the best that you can for you and your family, and understand that you can be happy in any house you are as long as you have what is important to you around you.

    Ron Escobar, MBA

    Real Estate Broker DRE Lic 01460645  ron@select-realestate.com

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