Silver Lake Are Homes and Information

CONGRATULATIONS,  this is not an acceptance!  What?!

Some REO agents have really automated their processes. I recently wrote an offer for some clients on a duplex in the hills of Echo Park.  It's a great property: updated kitchens, separate parking, separate yards, view from both units and both units being delivered vacant. This is especially terrific since Los Angeles has some pretty heavy-duty rent control laws and being able to set market rents and find your own tenants is a huge plus.

OK, my clients like the property and we put an offer together. Per the MLS, offers were to be "present directly to the seller" by logging onto a website and following the instructions.  Talk about automating processes!  I had to register at the site as a licensed California real estate agent.  Then I had to enter my clients' names and contact info along with just a few terms of the offer:  Price, escrow period, cash or loan and earnest deposit amount.  That was it!  They didn't want me to send the actual offer to anyone.

So I submitted as requested and received an auto-response that the offer was 'received'.   A day later I got an email that there were multiple offers on the property and that best and final offers were due by 3pm the following day. I conferred with my clients and submitted a new, higher offer for the property within the prescribed time frames. It had to be submitted through the site like the original offer. I couldn't simply modify the offer I'd already submitted. 

Voila!  At the appointed time, I received a rejection email for the first offer.  A few minutes later, I received an email with the subject line: "CA - Altisource Homes Listing 00070848080TRNL1 Offer Accepted".  YAY!   The first line of the email stated "Congratulations! We would like to begin the documentation process regarding your offer..."  Yay again!

Not so fast... The email continued on with how I would be receiving a bank addendum within 24 hours and there was a list of items that must be returned with said addendum within 24 hours after that. The final line of the email?  "PLEASE NOTE THAT THIS E-MAIL DOES NOT CONSTITUTE ACCEPTANCE OF YOUR OFFER". 

OK, so what to tell the buyers. Congratulations, your offer was accepted, but then, not really? Yes, I realize that the bank will need the actual offer and I need to get a signed acceptance for it to be "official" but here we are on Dec 23. Are they really going to send me something in 24 hours and expect my clients to read, sign and return it on Christmas?  I called the number provided in the listing. It sounded like a huge call center.  Press 1 for this, press 2 for that... I finally spoke to a real person.  I was stunned to hear that there would actually be people working Christmas Eve, Christmas day and right through the holiday weekend. 

Honestly, I will be shocked if we get the stated addendum within 24 hours, but my clients and I will be ready to fill out forms and return documents on Christmas Day if that's really how this plays out.  I guess we'll just have to think of this as a Christmas present of sorts!

Happy Holidays everyone!

For more information on buying bank owned properties and information on buying or selling property in  Silver Lake, Los Feliz, Echo Park,  and surrounding areas, contact me directly at 213-215-4758 or check out LApropertySolutions.com

Broker Associate
Keller Williams Realty, Los Feliz
213-215-4758
http://www.LApropertySolutions.com

Copyright © 2010 By Jenny Durling *CONGRATULATIONS,  this is not an acceptance!  What?!*

I have buyers interested in looking at a particular home that is listed as a short sale. In their price range, this is not at all unexpected.  I have explained the process to them and they realize that banks are not into making repairs or losing any more money on a sale than necessary.  At the same time, they are first time buyers with limit funds and they need a clear idea of the costs involved in any potential purchase.

The listing of the house in question has agent remarks indicating that the "bank will not pay for termite or city occupancy requirements" and that the "buyer is to waive these requirements."  Why would a listing agent make such an assumption?   

 I am not new to short sales and REO's and have successfully closed a number of such transactions.  What I don't understand is why so many listing agents make the blanket statement that "the bank won't pay for anything" and the property is being sold "strict as-is". In my experience, this has not necessarily been the case. 

 If you have a short sale listing, don't throw up road blocks and obstacles before you even get an offer. You want to get your client out from under the house and sell it as quickly and easily as possible.  In this neighborhood, termite and city occupancy issues are almost always paid for by the seller.  Of course it's possible that the bank will refuse to pay for them, but at least ASK!   Before telling prospective buyers that the bank won't pay for this or that at least find out what costs are involved.

Have the property inspected for termites and city occupancy issues and find out what work needs to be done and what the associated costs will be. You can go even further and get repair estimates for any issues the seller is aware.  Put EVERYTHING on the HUD-1 that you give the bank.  If presented correctly, there is a good chance that the bank will cover many if not all of these items.  Even if they won't, you've at least given your prospective buyers a clearer picture of the potential costs they may incur and run less risk of the deal falling apart later due to unforeseen issues.

Buyers- talk to me about the best way to structure your offer. Finding out what the listing agent's process is for handling short sales will go a long way to getting one accepted.

Broker Associate
Keller Williams Realty, Los Feliz
213-215-4758

http://www.LApropertySolutions.com