Shel-lee Davis

Ryan:

I spent a couple years of my life working for a grading and paving contractor and over 10 years in the land development business. You would be surprised at what kind of small spaces an experienced equipment operator can function in. That, however, it probably not the main thing you need to check out. Before you start changing the shape and placement of a retaining wall, you should probably check with the city and at the very least a really good soils engineer. I am sure you would not want to be writing, during next rainy season, 'my house is being pushed off the front 1/3 of my lot by the balance of the hill that used to sit behind my upward sloping lot.'

Best of luck in finding a good and safe solution to your lot expansion wishes and Dare to Dream. - Yesterday, 19:56

Shawna:

It really depends on the ultimate buyer. I have heard of people who were visited by the Marshalls and the new owners on the same day as the auction, and escorted out of the property. I have also heard of people who remained in the property 30 - 90 days after the foreclosure.

Of course, if you are tenant and not the owner, then local and state rent laws protect you. Proper eviction procedures must be undertaken to remove a tenant from the property (although there are some banks and new owners that appear to bully tenants into moving sooner than the law requires).

My recommendation, check with a lawyer who specializes in foreclosures and tenant rights and get an understanding of what your rights are under the law.

Hope you come through this process with minimal stress and damage, and Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty - Sat Jul 5 2008, 10:39

Scott:

I specialize in short sales, both listing them and helping buyers get a great deal when buying them. The answers here have gotten a bit off track from your original question. Although I am not claiming to know how all lenders work, I can tell you that all the lenders I work with will require you to have the following information before they will speak with you:
1. Loan number
2. Property address
3. Names, as they appear on the loan
4. Social security number of the borrower
5. AND an authorization to release information, signed by the sellers / borrowers, giving the lender permission to discuss the status of the account with you specifically (and one of the lenders I work with actually requires that there is a password on the auth).

Also, (and I am not sure if this is just what the banks say or if this is really the law, you might want to check with an attorney) the banks say that because of the Homeland Security laws, they cannot release any information to anyone not on the loan or given written authorization by those on the loan. They can't even confirm that the person HAS a loan with them. I have even experienced this when calling a lender about a loan on an investment property that is in my husbands name. He had to give them written authorization to speak with me, and I am his wife in a community property state (what his is mine and whats mine is his state).

The best advice I can give is make sure your realtor is staying on top of the listing agent. There are a lot of listing agents out there who are taking short sales and are inexperienced in how to handle them. The way I get short sales approved on my listings is I call EACH lender EVERY day. Your Realtor has to make sure that the listing agent is doing this or you might end up buying the home from the bank as an REO after they foreclose.

I always tell my buyers, the one with the most patience is usually the one that wins in a short sale. If you are working with an experienced short sale agent, it can still take as long as 60 days. Feel free to contact me offline, through my profile, if you want more information on the short sale process. Meanwhile, have your agent be a thorn in the listing agent's side, hope the listing agent is calling the bank daily, and either wait or keep looking for another property. Most importantly Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty - Fri Jul 4 2008, 14:48

Scott:

The short answer is, the SSA or Short Sale Addendum, which should be submitted with all offers on a short sale property states, at Paragraph E. "OTHER OFFERS. Unless otherwise agreed in writing, Seller may continue to market the Property despite acceptance of Buyer's offer, and to present to Short-Sale Lender(s) any additional offers that are received on the Property."

So, unless you received an agreement IN WRITING not the continue to market the property from the seller, the Listing Agent can continue to market the property in any fashion they see fit. This is why it is important that you work with a realtor that knows the short sale and/or REO market if you are going to make offers on those types of properties.

Even though the SSA allows the submittal of other offers, my expeience is that the banks want to work on one offer only, as long as it is reasonable. I take backup offers, but advise the realtors submitting these that there is already an offer in to the bank and they are in backup position. Then if my first offer withdraws or the bank comes back with a price my first offer does not want to accept, I can quickly get them another offer to work on.

Have your realtor call the Listing Agent and get an updated status on negotiations with the bank. Remember, in a short sale, the person with the most patience is usually the person who wins. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty - Fri Jul 4 2008, 09:12

Nicole:

Did you submit your offer with a Short Sale Addendum (SSA)? Did your agent check the box in paragraph B.2.?

Without this protection, the offer you submitted on the Residential Purchase Agreement states that your check "shall be held uncashed until Acceptance and then deposited withing 3 business days after Acceptance with Escrow Holder" (see Paragraph 2.a. on page 1) and the listing agent is within their rights, if the seller signed the acceptance of your offer, to open escrow and deposit your intial deposit check.

If you did submit the SSA and you did check the box in B.2. then you have instructed the Seller and his agent that your Deposit Check will be "held uncashed until the Day After Seller delivers to Buyer a wrwitten notice of Short Sale Lenders' consent."

This is why it is really important that you work with an agent who understands the short sale process when you are making offers on short sales. If you failed to submit the SSA or failed to check the box in B.2. then you should have your realtor try to negotiate this document into the deal at this time. (Of course, I am not an attorney, and this should not be construed as legal advice. If you have any concerns about your legal rights in this situation, please make sure you speak an attorney who can help you with these matters.)

Most listing agents are reasonable people. If it was your understanding that the transaction was not "accepted" until the bank accepted the short payoff, have your realtor communicate this. Perhaps you can resolve the issue with a phone call or two.

Best of luck in finding a great home, at a great price, and negotiating a great deal, and Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty - Fri Jul 4 2008, 11:20

I work in So Cal where there are also Million $ homes that have gone REO. When you see long time periods on the market (at least in our MLS) it is usually the CDOM or cumulative days on market that hit these highs. In the case of some homes, this long marketing cycle is the result of:
1. Seller sees he is getting into trouble and lists his home (usually too high) to try and pay off the bank and get some moving money. And the home does not sell, so......
2. Seller defaults on his loan and is now serious about getting out from under the home, so he reduces his price (usually not enough) and tries to sell again. And the home does not sell, so.....
3. Then 90-180 days after he defaults, the bank files a notice of default (NOD) and seller drops his price again. Now he is in a 111 day foreclosure cycle, but still not willing to do a short sale, and the home does not sell, so.....
4. The seller gets close to the end of the NOD period or may even waits until the Notice of Trustee sale is recorded, panics and decides to do a short sale. He lowers the price way down, after all now he is not going to get anything anyway, and gets an offer submitted to the bank for short sale. If the bank is willing to consider this offer, it will usually postpone the Trustee sale while it reviews the package, which could take 60 - 120 days. If the bank denies the short sale, then.....
5. The bank forecloses on the property and it becomes an REO. Many REOs take 30, 60 even 90 days to get on the market (the banks are really backlogged and have procedures they need to follow) and then the property is re-listed by the bank's realtor as an REO. In our MLS, the property has to be off the market 90 days (I have heard rumblings they are going to increase this, but I am not sure if they have), however in this scenario lets assume that the bank make it on the market in 75 days, so the CDOM keeps counting.

Here is the math: 60 days + 90 days + 90 days + 60 days + 21 days + 75 days = 396 days CDOM on the first day of the REO listing. A good realtor can give you the history of what has happened in this time period, but the most important question is, WHAT IS THE RIGHT PRICE FOR THE HOME TODAY?

To get that answer, and to negotiate the best deal possible, you need to work with a great Realtor who knows your area. I don't, so I can't give you the information you need. I do, however, know a great agent with over 20 years experience in your area and I would highly recommend, if you are serious about buying, that you speak with her. She is a top level negotiator and knows Danville like the back of her hand. Let me know if you would like her name and contact information.

Keep looking and I am sure you will find a great home, at a great price and negotiate a great deal. And Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty - Thu Jul 3 2008, 04:43