Orange County Short Sale Help

Trustee's deeds can only be compared to other trustee's deeds due to the fact they are transferred without repair or warranty, including title issues, and occupancy issues.

I do belive that public sites such as Zillow, Trulia and Redfin have their benefits to consumers who are interested in Real Estate.

However, using them to find current home values is not an accurate way to find "Fair Market Value", or "Recent Sold Comparables", (the amount property will sell for with a willing buyer and a willing seller). 

Trustee's deeds are found on public sites as traditional sales however.....Trustee's Deeds are used at the last stage of the Foreclosure process to:

1.  Transfer Title to the highest bidder at auction

• Without clear title, {no title police provided to the new buyer}
• Must be a cash purchase
• No inspection contingency
• Taxes and HOA fees due
• No repairs
• No property facts disclosed
  
• May include occupants that may  have a lease in place or tenants that may need to be evicted, undisclosed repairs with no warranty expressed or implied.

2. Transfer Title back to the lender if the property does not sell at auction.

When looking for the value of real estate, many buyers are turning to public real estate sites to find out what other buyers are paying for similar real estate that is for sale.  This is  a great theory as "Recent Sold Comparables", are what bank hired appraiser use to place a value on property.

The problem is that "recent sold comparables", are inaccurate on public real estate sites, like Zillow because Trustee's Deeds are mixed in with Grant Deeds. 

Public sites use Trustee's Deed Recordings as recent sold comparables which confuses consumers who are looking for recent sold comparables to use as a basis for purchasing real estate.

 

I find this the most difficult issue for consumers to understand as they believe that all sales are equal and "sales", which are really "recordings of transfer deeds", on the public sites are the same as a purchase transaction.  Buyers who are searching on public sites for recent sold comparables will not find accurate information.  Realtors have access to and pay for recent sold comparables that show the details of the transaction, such as how the property was sold and if any concessions were given to the buyer from the seller.

Here's the problem and if you get nothing else from this post realize this:

• Trustee's Deeds are transferred and recorded without:  Clear Title, meaning that there is no warranty against delinquent unpaid taxes, delinquent HOAfees, liens, repairs, inspections or any of the other precautionary items that go with a standard residential real estate purchase when the California Residential Purchase Agreement is used.

• Properties that are transferred using a Trustees Deed are less valuable, because properties that are foreclosed upon can have liens, tenants, hidden and undisclosed repairs and that's why they are sold for a lesser amounts. 

• Trustee's Deeds, are completely different from Grant Deeds that transfer property in a Real Estate Transaction where there is a willing and able buyer and a willing and able seller!

 

In a standard real estate transaction where the California Residential Purchase Agreement is used, the buyer will most likely not have to pay for:

• Delinquent property taxes
• Delinquent homeowners association fees
• Termite report and section one repairs
• Government mandated repairs or lender repairs

All of these things add value to a property and property that is merely transferred without all of these added items when a Trustee's Deed is used make a property that is transferred less valuable than a property that has these items included.

Trustee's Deed Facts- A Trustee's Deed does not include a willing seller.  Trustee's deeds are used to transfer title to a new owner who pays cash at a trustee's sale, or to transfer the property back to the lender or bank when a home is foreclosed upon due to non-payment of the note. Then the lender can sell the property and get some of their money back. Trustee's deeds do not even guarantee possession of the property.  If there is a tenant in the home, the lease - if there is one, goes with the property and if there is no lease but occupants in the property those tenants may need to be evicted.

In California, when it comes to the foreclosure process, homes that are foreclosed upon due to the owner not making payments, are handled by a trustee who attempts to sells the property at an auction.  There is no court involvement in this instance. If the property does not sell at the auction it becomes a "Bank Owned Home" and the property is transferred via a Trustees Deed back to the bank and the trustee's deed is recorded in the county in which the property is located transferring title to the foreclosing beneficiary (Bank), allowing the sale of property to recover their debt.

Trustee's Deeds look like regular sales on Zillow, Trulia, Redfin but with all of the liens, warrent-less condition, and other issues, that reduce the value of these properties making these properties transfer for much less, because they are not standard sales, that a consumer who is using the residential purchase agreement buys property with.  

Also, When a Trustee transfers a property to the original lender, any junior lenders are completely wiped out.

Example:  Tax Rolls show a first trust deed of $240,000 and a second trust deed of $75,000 both recorded on December 27th, 2006. 

Ask a Realtor to find recent sold comparables for you directly from the MLS.  How a property is sold is important also.  If there were "seller concessions, given to the buyer", the price can seem inflated.  Real estate agents pay for and belong to the MLS and have access to the most accurate information.

 

 

Jane Grant Southwest Real Estate Telephone: 866 621-0155

FACEBOOK, LinkedIN, U-Tube, Twitter, Trulia

Contact me for information regarding Real Estate in Southwest Riverside County. My office is in Temecula, and I specialize in selling homes in the Murrieta and Temecula,  Wine County, De Luz, La Cresta, Bear Creek, Murrieta, Wildomar and Menifee, Canyon Lake, Canyon Hills, Lake Elsinore areas! Anywhere in Southwest Riverside County and North San Diego County. 

 

Broker of Record- DRE 01109492
Southwest Real Estate, Inc. 
Telephone: 866 621-0155

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5 Reasons You May Not Want to Counter That Offer

It never hurts to ask, right?  How many times have you heard that expression?  However, as a real estate agent, I have a front row seat and back stage pass to home buying and selling action, and I can say with absolute authority that -- sometimes it does hurt to ask.  Countering a buyer’s price and terms is the equivalent of asking.  And there is risk in doing that.  When you are selling a home, here are a few reasons you might want to rethink countering a buyer’s offer:

1) It’s a fair offer.  The offer is fair and it hits your target.  What more could you want?  A little more you say?  You may want to resist the temptation to ask for a little more.  Just because a buyer offered you what you want up front doesn’t mean there is more meat on the bone.  The buyer and their agent studied the market before writing the offer and they probably reviewed the same comps you and your agent studied.  They know they've written a fair offer -- it didn't happen by accident. If you counter their fair offer, they may think you are going to be unreasonable throughout the transaction, give up, and simply walk away.  Think twice before countering a fair offer.

2) It was prepared carefully.  As an agent I know presentation matters.  You may not be able to determine whether an offer is well prepared, but your agent will know. In my opinion, a well prepared offer leaves out unimportant requests, and includes every single piece of information necessary to make a decision.  A good buyer’s agent is going to counsel their buyer about how to make a good offer, what to leave out, and what to include -- and a serious buyer will listen.  When I receive a well prepared offer, I not only know that the buyer is serious, I know that they are worth taking seriously.  Think twice before countering a serious buyer with a well prepared offer.

3) You will interfere with the buyer’s momentum.  Yes, there is a momentum to the home buying process.  You may have forgotten that if it has been awhile since you bought a home.  Countering can put a kink in momentum -- and it can kill the enthusiasm of a buyer.  Especially in today’s market where they must withstand a whirlwind of negative news reports, the opinion of their family, friends, (and sometimes their agent), as well as hurdle through the current invasive loan pre-approval process in order to write an offer. Countering can sometimes feel like a road block to a buyer who has already navigated an obstacle course.  Think twice before slowing a buyer’s momentum with a counter offer.

4) The market is declining.  This has to do with leverage.  If the market is declining in your area, the buyer is aware of that fact as well.  So, they may be absolutely insulted that anyone would counter any offer they make in that type of environment.  You simply may have no leverage in your current market. This is true even on a short sale -- if the market is declining and the offer is reasonable -- it is sometimes better to let the bank do the countering, if they choose to do so.  Think twice before countering in a declining market, lest you find the value of your home declining with it.  

5) A counter is a rejection and some people don’t take rejection well.  This reason is almost completely emotional and psychological.  Simply put, not every buyer is up for a nice spirited game of negotiations.  You might return that serve to find that the other player has walked off the court. Some people just can’t handle rejection.  Other people like to be in control.  And, some people just don’t like to play what they view as “a game.”  I’ve found that there are people who will never ever respond to a counter offer.  They typically “don’t do bidding wars” and they “don’t do counter offers” either. Think twice before rejecting that offer with a counter.

Every situation is unique, and the decision of whether to counter an offer should reflect both the current market for your home and the particular offer that is presented.  However, I do believe that the decision to counter an offer should not be made lightly. At a minimum, you should think twice.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE) and Certified HAFA Specialist (CHS) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.

If you are considering a short sale of your Santa Maria, Orcutt,  or Nipomo home, you should seek out an experienced Central Coast Short Sale Agent to guide you through the process.  If you would like a short sale consultation, please call my office to schedule a meeting or a telephone consultation at (805) 938-9950.

* Nothing in this article is intended to solicit listings currently under contract with another broker.  This article offers no legal or tax advice.  Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.  Mint Properties is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.

Copyright© 2011 Tni LeBlanc *5 Reasons You May Not Want to Counter That Offer*