REO’s and Their Title/Escrow Rip offs…

This has been a pet peeve of mine for a while – it’s about time we get more righteous Consumer compaints.

Many of us in the Real Estate Business have been involved in a Bank Owned Property Sale in which the Asset Manager for the bank/investor stipulate in their “contract addendums” the requirement that a “preferred” Settlement/Escrow Company is to be used.

Most of these companies are in Southern California, have business practices foreign to Northern California and they have been known to “pad their fees” to the detremint of many our buyers.

Here’s a link to a Trulia Q & A that I answered from a concerned Buyer going through this process now.  You’ll see the responses from other Real Estate Professionals as well.   We hope that this will help you or a friend if you going through this experience. 

We’d like to know about other instances so if you or someone you know is getting burned… please let us know.

Click Here for the Link

I hope this helps.

Make it a Great Day.

Ed Favinger, Broker CRS, GRI        favinger@rwnetwork.com     916-203-1260

Also check out this article

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Sacramento Duplex Sales – Interesting Stats + I Have a Deal For You…!

Short Sales Slow Down Closings – Cash Is Still King

I am noticing that the number of  Duplex/Four-Plex investment properties that are now Active for sale or “Active Short Sale” is almost equal to the number of properties that show a status of Active Short Sale – Contingent (which means there’s a contract waiting for bank approval) or Pending Sale, which means it’s in escrow now.

Prices don’t appear to be dropping but the table below will show you how much the Short Sales are taking to close.  Their Average Days On Market is very high when you compare it with the other statuses.   The reason behind this is because of Buyer frustration at the long wait for the underlying banks to approve the Seller’s short sale payoff.   

Buyers will keep looking while they are waiting for a Seller’s lender to complete the process that can take over 6 months in some cases.  So many times they will walk away from a deal to find one that can give them an answer on their offer now.   This in turn requires the Seller to place his property back on the market, which increases the average days on market.

 

Check out the Duplex Profiled Below.

I have been a big fan of this street, Imran Drive in the Arden area,  for a long time.

Click Here for a Flyer & a Pro-forma Cash Flow analysis on 2300 Imran Drive, Sacramento, Ca

If you have questions on this property or any other investment in the Greater Sacramento Region, drop me a note or call at anytime.

Make it a great day…

Ed Favinger, Broker, CRS, GRI                 favinger@rwnetwork.com     916-203-1260

Trends In This Down Economy – What Folks Now Want in a Home

Outdoor Rooms, Playgrounds and Trails are high on the list like the one shown below in the Serrano area of El Dorado Hills. 

It seems folks are looking for ways to get more utility value from their homes because these things don’t cost a lot.  There are other things the article spoke about, so for more on this, Click Here for the Article

Make it a Great Day…

Ed Favinger, Broker CRS, GRI       favinger@rwnetwork.com     916-203-1260

Fixer Upper Bank Owned Duplex – Check Out The Video

Somebody was mad when they moved out of this one.

Because it looked like the Tazmanian Devil had been in one side.

I stopped by to see this duplex yesterday and made a video of both sides.   This is a hot deal because when I arrived and got out of my car an investor was already walking about the property.  Since I was going in he asked if I would allow him in with me, which I did.   While we were there another lady asked if she could come in and sneak a peek too.

This property is listed at $88,000.  The investor and I both agreed upon our inspection that we estimated it would take about $20,000 to fix it up to a nice “rent ready” condition.   The Pro-Forma Cash Flow Figures are here.  These figures are based upon a “hypothetical” sale at $120,000 because that’s probably what you will have into it when it’s all said and done. 

You will either gasp or at least raise your eyebrows  when you see what someone did on the left side of this Duplex.

Click Here for the Left Side Video

Click Here for the Right Side Video

Actually… it’s really not that bad if you are a seasoned investor, because I have seen much worse.

Make it a great day…

ED FAVINGER, Broker, CRS, GRI         Favinger@rwnetwork.com     916-203-1260

Thinking of Walking Away From Your Mortgage ‘Cause Your Upside Down..?

If you are thinking of doing this… You’ve got company…

See the latest from the Sacramento Bee’s Real Estate reporter Jim Wasserman.

Home Front: Gain trumping pain of walking away from mortgage

Comments anyone…?

Make it a Great Day…

Ed Favinger, Broker CRS, GRI      favinger@rwnetwork.com      916-203-1260

January 2010 Duplex/Four-Plex – Closed Sales Report..!

 Cash May Be King – But You Might Be Paying More

I’ve put together the latest Closed Sales Report for the month of January 2010.  As usual you’ll see there is a lot of cash floating around in the Sacramento County Duplex/Four-Plex Market.    But… if you look at the statistics below the average List Price/Sales Price Ratio shows that on Average, Cash Buyers have been paying more.

That’s kind of amazing…   isn’t it…?

Check it out.

I’ll have the entire closed sales list posted later today hopefully.

Make it a great day..

Ed Favinger, Broker CRS, GRI                    favinger@rwnetwork.com              916-203-1260

New FHA Rules – Read em and weep…!

It seems they just don’t want to let the market recover…  That’s my opinion.

Click Here for the Update

One of the big changes that will come into effect soon will be the limit on the amount of Closing Costs  you can ask the Seller to pay.   That means if you are a low cash down buyer it will be harder for you to get in.

What they are worried about is the potential for the Seller to “inflate the price” to pick up those costs.

I don’t know how that can happen since the appraisal rules also require an appraiser to stipulate that even though the Seller is paying the closing costs, it has no effect on the value being paid.

Make it a great day.

Ed Favinger, Broker CRS, GRI        favinger@rwnetwork.com     916-203-1260