The Govenator Signs Senate Bill 94

Advance Fees for Loan Modifications Prohibited

Two weeks after writing Loan Modification is Big Business Govenor Arnold Schwarzenegger signed Senate Bill 94 into law.

It is now illegal for loan modification servicers to charge fees in advance.  The legislation took effect immediately.  California law now prohibits any person, including real estate licensees and attorneys, from demanding or collecting an advance fee from a consumer for loan modification.

Fees collected prior to October 11, 2009 are not affected. Advance fees collected after October 11, 2009 must be fully refunded.

No, You Can’t!

<p>Oracle, Redwood Shores</p>

Oracle, Redwood Shores

I Don’t Get It

Well, you can but why would you want to? At the risk of irritating you, I’m going to get real here. If you want to buy a house and you know there are many other people who are interested in that very same house – in other words, there will be multiple offers – why would you ask if I think that submitting an offer 5% under the asking price will get you the house?

Hot Hot Hot

I keep saying…the first-time buyer market in San Mateo County is hot! Is anybody listening?

Same Ol’ Story

I try to educate my clients. I try – really I do. I show them houses. I show them statistics. I show them the history of the market. I tell them – oh wait!

But we have to learn by experience – our own experience. And home buyers want to submit their offer. And that’s fine – for a while. But I don’t want to bash my head against the wall too many times. At some point you have to read the writing on the wall.

Ain’t Gonna Happen

You and the rest of the world has waited for the bottom of the market. Now that we’ve hit bottom and are bouncing back everyone’s out there trying to buy at the same time. Add in the $8000 credit and you’ve got a frenzy on your hands.

Here To Stay?

Is the market going to stay that way? I don’t know. Is it worth the risk of waiting to see what happens? Up to you. I don’t think so – if you plan to buy for the long term.

I Told You So

If you touch the stove you’re going to get burned. If you do that with your eyes they’re going to stay that way. Don’t take candy from strangers. And if you wait too long interest rates and home prices will rise, the 8k credit will be gone, and you’ll be out of luck. It’s inevitable.

But you didn’t listen to your mother – I didn’t.  Thought I had it all figured out – so why should you listen to me?

Short Sales Are Not Short

Award Wining Photo by Victor Bezrukov
Award Winning Photo by Victor Bezrukov

The Meaning

A short sale is called that because the bank is going to be short money on the sale. In other words, they’re not going to get all the money back they loaned on the house.

The Truth

It definitely doesn’t mean the process is short because that is so far from the way it actually is that the term “short sale” is almost funny. If selling bank owned and short sale houses wasn’t such an awful, horrible, frustrating, and annoying process it might be funny, that is.

The Consumer

The buyers and sellers are caught in the middle. They’re expecting us, the Realtors, to get the job done – and rightly so. We the Realtors expect the bank to get the job done – and rightly so except that they have so many files on their desks that the consumer is just a number – a file number, a loan number.

The Million Dollar Q

The other day a wonderful client said, “Is there anything I can do to make this process go faster?” From your mouth to their ears! No, there isn’t. If there was we’d be doing it. We’re now in their world – the black hole where time warps; days pass, phone calls don’t get returned, voice mails are full, people get frustrated. It’s all part of the process.

Comic Relief

Kris Berg, a San Diego Realtor, is one of the funniest people I know. Her wit and wisdom are known and appreciated in the real estate community for always being right on the button.

Her movie– I have no idea how she did it – wraps this whole post into a few minutes of the funniest and most accurate portrayal of what life is like in the world of REOs. In fact, if it wasn’t for some comic relief once in a while we’d all be crying – or in the crazy house – or both.