Tara Steinke

Dear Nully,

Renting out your home and purchasing now is a great idea.... BUT first research the demand in the rental market for your current property. Ensure that you can rent it quickly for an amount that makes sense for you financially (i.e. ideally enough to cover mortgage, taxes, insurance and a little extra for reserves). The agent you use to purchase your new property should be able to assist you in procuring a tenant for your current property... be sure to have a credit report and check references, especially prior landlords/property managers.

If the numbers and data looks to be in your favor, then go for it. It is a great time to buy and move up into a property that will provide you with a better quality of life.

Best of luck!!
Tara - Mon Jun 30 2008, 13:37

Hi Diego,

Have you signed anything agreeing to a lockbox being installed? Check your lease agreement.... there is a section in the standard California Association of Realtors lease agreement that, if checked, allows for a lockbox to be installed. If you have not signed anything technically they cannot force you to have a lockbox. Also, find out if your landlord/owner is in default. If he is not paying the mortgage but you are paying the rent then he is pocketing your rent. It may be grounds to break your lease.

One last thought... you may consider working this to your benefit. Negotiate a lower rent in exchange for accomodating a lockbox. Ofcourse, you would then have to pack away your valuables. But it could save you a significant amount of money for your inevitable move if they do sell.

I hope this helps... best of luck!
Tara - Mon Jun 30 2008, 13:31

Dear Oakland Buyer,

It is a great time to buy right now... HOWEVER, I tell all my buyer clients that you need to have patience and tenacity in this market. We are experiencing the same overload on short sales down here in San Diego. If you consider short sales, make an offer and let it ride while you are still pursuing other possibilities. Many short sales get multiple offers and take forever to get an answer from the bank. And sometimes the bank decides to foreclose rather than short sale.

It is my experience (now remember I am in San Diego) that property is going most often at current market value in this market. But the current market value is much lower, sometimes 30% or more lower, than the peak of the market in mid to late 2005. My suggestion is to keep looking and stay informed. Be ready to jump on the property that will fit your needs and make a reasonable offer. If you make an offer on a short sale, be very engaged in the process. Have your agent be in constant contact with the listing agent and find out if there is one loan or two, which banks they are with, how many offers have been received (and if possible, how strong they are) and where they are at in the short sale process.

If you are looking at REOs, be ready to move quickly. Banks have much more aggressive requirements for buyers than the industry standards.

Good luck!
Tara - Mon Jun 30 2008, 13:25

Dear Melissa,

It is somewhat difficult to answer this question because there could be a number of variables.... is this a re-sale purchase? Bank owned REO? Or is this a new construction purchase? In any of these situations you need to consult your purchase agreement whether it be a California Association of Realtors contract or Developer's contract. Read carefully and identify the provisions surrounding both your contingencies (ability to secure a loan, the appraisal, approval upon having a professional home inspection) and the liquidated damages.

If the contract is not clear to you explicitly. You may consider having an initial consultation with an attorney that specializes in Real Estate practice. Get a good referral from someone you trust. It may cost you a 1-hour fee but you will gain invaluable clarification of the situation and your rights. If you are being represented by an agent, you can also have them contact the legal department at the California Association of Realtors.

But first and foremost, reference back to your purchase agreement contract.

Best of luck to you!
Tara - Mon Jun 30 2008, 13:10

Hello Henry,

I'm assuming this is an REO property. In purchasing an REO you typically sign an additional bank addendum that demands much more aggressive execution and commitment from the buyer. Almost every bank addendum I've seen has a time lapse removal of contingency clause... this means that the buyer does not remove contingencies (loan contingency, appraisal contingency, inspection... etc.) in writing. Rather, once a certain amount of time lapses in escrow without the buyer backing out (typically 5-10 days) contingencies are assumed and effectively removed. Read your bank addendum carefully. I've found that the banks are very aggressive in keeping deposits.

Good luck in gaining resolution in the matter.
Best-
Tara - Fri Jun 27 2008, 22:37