FEMA Raising Flood Insurance Rates After October 1!

If you follow me on Twitter, you will know that I heard that FEMA is raising its flood insurance rates after 10/1/09...that is 2 days from now! These increases applies to new policies and renewals...to research potential flood risks in your area, visit http://www.floodsmart.gov/...

Sacramento Short Sales - Ok...so I really am a bit of a specialist!

If you follow me on Twitter, you will already know that I had a chat over lunch today with the Director of Training for Lyon Real Estate, Michael Gray. He told me some pleasantly surprising news...I have the highest success rate at closing short sales of any agent at Lyon Real Estate! Yep, little old Erin Attardi. WOW! Not sure just how many agents are now at Lyon, but I think it is hovering around a thousand or so. We have 120 agents in my office in Sierra Oaks alone, and there are 18 offices!

So what are the secrets to my short sale successes? I will tip you off to a few...

The first thing, is that I am very selective when I choose to list a short sale. The seller MUST have a legitimate hardship. The seller must be prepared and willing to provide ALL of the documentation (like paystubs, bank statements, tax returns) the short sale lender will require. I turn down about half of the prospective short sale sellers who contact me - most of which do not have hardships, or they indicate to me they want to help them commit fraud, or they indicate they are not willing to provide documentation. I always look to see if the listings I decline end up on the market, and they almost ALWAYS do with other agents...those short sales have little likelihood of actually closing successfully.

The second thing, is that I am really NICE to the lender loss mitigation reps I deal with. These are people who get yelled at repeatedly every day, over and over again by frustrated borrowers and agents. I joke around with them, ask them about the weather, say please and thank you, etc... this works really well!! I have convinced certain lender loss mitigation reps to give me their direct phone numbers, fax numbers, email addresses. These guys actually LIKE to deal with me!

The third thing, is that I have developed a systematic method for negotiating short sales. I follow directions set by the short sale lenders really well and accurately. I am great at time management, and often find myself working with the same short sale lenders over and over again. The system itself is not one I am willing to share...and yes, I personally negotiate ALL of my short sales. I do not farm them out to a 3rd party.

I do lots of things to make my short sales successful...

Sacramento Open House Search Tool...Bookmark it!!

Over the summer I posted a link to my Open House Search website. Since that post, I have had several emails who read that post asking me how to find that post and website. Here's a hint: Bookmark the post or the website people! LOL

Since ya'll seem to have a hard time finding it, now for everyone's convenience, I have added it to the right side navigation of my blog site. It is located just below my DRE License number.

Or, you can search for greater Sacramento Open House listings here...any open house that is registered in advance with our MLS will be searchable, including short sales, foreclosures, and traditional (non-short sale, non-foreclosure) listings.

New Listing - 4717 Chamberlin Circle, Elk Grove 95757

Stunning, lovingly maintained 3 bedroom, 2 bath, 1,567sf home on .145ac in one of the most sought after areas in Elk Grove located near parks, schools, shopping and freeways. You will fall in love with the open floorplan, upgrades, and nice landscaping! Offered at $199,000 subject to lender approval of short sale. For more photos and information, visit http://www.4717chamberlincircle.com/.

Where in the world is Erin Attardi?

Yes I am ok...I got a few emails from my regular blog readers asking if I was ok, and why I had not written anything new lately (including my 4th installment of Erin's Sacramento Short Sale Experiment, which I will write a bit later this week). My answer? It's the end of the summer, and I have been playing! Even Realtors deserve a day or two off now and then, right?

If you follow me on Facebook or Twitter, you will already know I took two little excursions in the last week, and both coincidentally were to celebrate my parents' birthdays.

Before I left though on Friday the 11th, I helped throw a little fundraiser for the California Association of Realtors Housing Affordability Fund (CARHAF) with the Young Professionals Council's 2nd Annual "Bowling for the American Dream" fundraiser. What a blast! This year's event had a 1950's theme...the final total is not in yet, but we estimate that we raised about $3,000 for CARHAF!

So anyway, last Monday, to celebrate my Dad's 60th birthday, I got up really early and went fishing on SF Bay with my husband, dad, and brother. We caught 4 white sea bass (including a 51-incher by my brother), and 7 halibut. That was a great day! Our catch yielded over 100 pounds of meat! There was so much that although the guides cleaned our fish for us, we still ended up taking the fillets to a butcher for processing. Let's just say that if you have a good recipe for white fish, please email it to me!!

Then, first thing this last Saturday morning, my brother, mom and I flew to Los Angeles to see the San Francisco Giants play the Dodgers. Hmm...the Giants got absolutely slayed in both games we saw (Saturday and Sunday), but we still had a great time. Before we returned on Monday evening, we had lunch at this famous restaurant called The Ivy in Beverly Hills. Good times.

Back to work!!! (Un)fortunately, my summer travels are over...

Check for Sex Offenders in CA using the Megan's Law Online Database

Did you know that there is a paragraph in the California Residential Purchase Agreement (in paragraph 5C) that informs prospective home buyers that information is available to them pertaining to the proximity of registered sex offenders to the property they seek to purchase. The paragraph reads:

"Pursuant to Section 290.45 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at http://www.meganslaw.ca.gov. Depending on an offender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides. (Neither Seller nor Brokers are required to check this website. If Buyer wants further information, Broker recommends that Buyer obtain information from this website during Buyer's inspection contingency period. Brokers do not have expertise in this area.)"

While I review this paragraph with all of my buyer clients when we write up offers and encourage them to check the Megan's Law website, I'm not sure that all of them actually do check that out.

Well, let me just tell you that one of my clients did check.

We wrote an offer on Friday evening, had a counter offer from the seller in hand by Sunday morning. On Sunday afternoon, while my buyer clients were contemplating how to respond to the seller's counter offer, they decided to check the Megan's Law database...they found a registered sex offender living 3 doors down from the house they made the offer on. They decided not to pursue that property and look elsewhere...

Let's face it, registered sex offenders are out there and do live in our neighborhoods...but you as a buyer have the ability to make an informed choice as you make your home purchase.

New Listing - 4951 Trouville Lane, Sacramento / Natomas 95835

Get ready to fall in love! Beautifully appointed 3-4 bed, 2.5 bath home in Westborough Village. Enviable open floorplan, gourmet kitchen with island, LOTS of cabinets for great storage. Master bedroom is light and bright with many windows. Great patio yard is low maintenance! Down the street from community park. Don't wait! Offered at $195,000 subject to lender approval of short sale. For more photos and information, visit http://www.4951TrouvilleLane.com.

New Listing - 2591 Aimonetti Avenue, Sacramento / Natomas 95833

Fabulous two-story 3 bed, 2.5 bath pull-apart condo in Natomas! Spacious floorplan, unique features, and custom tile throughout! You will love the upgraded kitchen with granite countertops and an island with a built in sink! Upgraded laminate flooring. Attached tandem garage. Come and see your new home today! Subject to lender approval of short sale. For more photos and information, visit http://2591aimonettiavenue.com.

Loan Modification Scams - Don't fall for these!

I got a call from a very nice lady this afternoon who lives a few doors down from one of my short sale listings. She wanted to know if the house was pending sale or was sold, and for how much, so she could get an idea of what her house is worth.

Since the sale was not yet complete, I could not provide her with all of those details. I asked her if she herself was thinking about selling, and she explained that she had just lost her job and was unable to afford her mortgage payment...but mentioned she had planned to pay $1,900 to a loan modification company in Southern CA that promised to get her mortgage company to reduce her principle loan balance to the current lower market value - hence her call to me to inquire about the selling price of my listing as a reference point.

RED FLAG!!

Alarm bells went off in my head. I grabbed my laptop, which coincidentally always seems pretty close by, and pulled up the CA Department of Real Estate website. I asked the lady the name of the company, and cross referenced the list of "Desist and Refrain Orders and/or Accusations for Fraudulent Loan Modification Activities." Sure enough, the company she had planned to work with was on the list. OH GAWD!!

I immediately explained to her why hiring this company was a bad idea. While there are some legitimate profit-based loan modification companies out there, many companies that promise to modify your mortgage loan will take the up-front fee and RUN. That's right - they will deposit that check, or even worse, run your credit card, and you may never hear from them again. DO NOT LET THIS HAPPEN TO YOU!

Did you know that the Home Loan Counseling Center of Sacramento offers free Foreclosure Prevention Counseling??? Did you know they offer counseling in English, Spanish, and Russian? At the HLCC, you can meet with a certified Foreclosure Prevention Counselor who can explain options available to you, help you develop a household spending plan and negotiate a modification with your lender on your behalf. Services are free and confidential.

If you are attempting a loan modification and need help - please, try the HLCC first! If you are not successful in your loan modification and want to do a short sale, then call me and I can assist you there...

Sacramento Short Sale Extension Saga...IT CLOSED!!

I am happily eating a celebratory frozen yogurt right this second...I just received confirmation from Placer Title that one of my short sale listings has closed!

If you have been reading my blog over the last couple weeks, you will know that I have been feverishly working to get an extension on a short sale that was supposed to close by August 31st, but the buyer could not perform and get her lending in time. There was a Trustee Sale set for September 8th (yesterday), and I had been repeatedly told by the short sale lender (Aurora Loan Servicing) that an extension would not be granted. Approval extensions are NOT guaranteed!!

Well, first I was successful in my bid to get the Trustee Sale postponed from September 8th to October 1. When I finally did receive that extension from the short sale lender, the buyer's lender wanted some wording changed on the approval document! ARGGH!!

I literally was having nightmares about this short sale transaction. Anyway - it closed! Seller is elated, and buyer is thrilled to be a first time homeowner at age 75! A win-win for everyone involved. YIPPEE!

Elated Rocklin Short Sale Buyers Finally Close Escrow!

If you follow me on Facebook or Twitter, you will already know that one of my buyer clients closed escrow last Thursday on a short sale.

Just one of many transactions in the life of Erin Attardi, right? I wish. This was a unique and crazy transaction...even by short sale standards!

My clients randomly found this house back in March when happened to drive by it the first weekend it was on the market. It was being held open, so they went in, checked it out, and absolutely fell in love with it. I received an excited phone call that afternoon, and a couple days later we visited the house together. It was listed by a pretty well-known agent, so we did not hesitate to present a really strong offer that was $11,000 over the asking price...we were one of 4 offers, and fortunately we presented the best offer - so my buyer clients' offer was presented to the short sale lenders (Wells Fargo and GMAC) for consideration.

Hurry up and wait.

I spoke to my buyer clients weekly for about 8 weeks...they were not first time buyers, but they were also not familiar with the short sale purchase process. They actually inspired a blog post I wrote about what to expect as a buyer who makes an offer on a short sale listing. After about 8 weeks, the listing agent's assistant, who was negotiating the short sale, started gaining traction with the short sale lenders, and got written acceptance from the first lender! YAY!

The first lender, Wells Fargo, issued approval and offered $3,000 to GMAC, the second lender. Within a week of Wells Fargo's acceptance, GMAC stated they wanted 10% of their loan balance. This was approximately $7,000.

Ordinarily, there are ways to close a gap of this nature and close the short sale. The buyer can absorb this additional $4,000, the agents can reduce their commissions, or the sellers can make a cash contribution to close the transaction - or any creative combination of the three. Easy, right?

Wrong. In this instance, Wells Fargo's approval documentation specifically stated that GMAC could NOT net any more than $3,000, and that any additional proceeds from the sale were due to Wells Fargo. HMM...so after trying to find a way around this, getting my broker and the listing agent's broker involved, our legal counsel to review all the documents, lots of 3-way calls, etc., we had to go back to the negotiation table with both lenders in an attempt to get Wells Fargo to offer GMAC more, or for GMAC to accept less.

The result? A stalemate. Neither short sale lender would budge.

My buyer client was frustrated, but absolutely determined to purchase this house. My broker and I actually encouraged my client to move on and look for another property. They would not have any of that, and wanted to press forward with more negotiation. OK.

Let me explain...as a short sale listing agent myself - it is very difficult to sit on the other side of the transaction with my hands completely tied. I of course as the buyer's agent had zero influence over the transaction, and it absolutely made my skin crawl. Luckily the listing agent's assistant was open to collaborative strategizing...but still, I was not directly involved with the negotiation. UGH.

So back to the drawing board we went...Wells Fargo was absolutely unwilling to decrease its NET proceeds from the sale to allow GMAC more money. So we all put our heads together again and got creative. Over time we convinced Wells Fargo to allow the seller to pay some of the $4,000 deficit to GMAC, and to allow a slight commission reduction to increase the payoff to GMAC.

Finally, we got both lenders to agree at the end of June! Yippee!! The short sale was accepted, and my buyer clients were really happy...until...

Remember how we had offered about $11,000 more than the asking price on the home because we had been in a competitive offer situation? At the time we made the offer, there were recent comparable sales to support this higher offer. Well folks - comps only live for 90 days. By the time the short sale was approved, there were NO comps. This house was a bit unique. It was in a neighborhood of custom homes on large lots, but it was surrounded by tract homes on small lots. The only comparables were tract homes. The appraisal came in $53,000 below our contract price.

We had no choice but to go back to Wells Fargo and ask them to reduce the approved price. They had been so steadfast about not reducing their NET payoff to give GMAC another dime, we were all nervous that Wells Fargo would hold out for their approved price.

Hurry up and wait again. The buyer had already waited about 3.5 months, and between the appraisal and various inspections had spent about $1,000 out of pocket. They had also been able to lock an insanely low interest rate at 4.75% that was potentially jeopardized if escrow did not close within a certain timeframe.

More waiting...more waiting...after about 4 weeks, we finally got some good news that the file had been successfully escalated to management. This new person working on the file worked an overnight shift - 3pm to midnight. On Friday afternoon, August 28th, the listing agent's assistant emailed me that the file was under management review, and we could expect an answer "soon."

"Soon" turned out to be the afternoon of Monday, August 31st!! The written short sale approval from Wells Fargo magically appeared in my inbox! The next morning on September 1st, GMAC's new short sale approval also arrived!! My clients were approved at $307,000 to purchase a property they had originally intended to pay $360,000 for.

Needless to say they were absolutely ELATED! Their loan officer had literally everything in place so that when the new short sale approval arrived, she was able to have loan documents sent to the title company within 24 hours. She also was able to preserve their really low interest rate lock at 4.75%! My clients signed their loan documents on Tuesday afternoon....the loan funded on Thursday morning!

I am so glad that after all that turmoil and waiting they were able to close escrow. I personally delivered the keys with a bottle of champagne! I will actually miss our regular phone calls...I know they will be very happy there!

Sacramento Short Sale Extension Saga...Got An Extension!...but the buyer's lender wants more...UGH!

I did the happy dance in my office briefly today! This morning, after multiple phone calls, hair pulling, sleepless nights (yes, I have literally been having nightmares about this short sale transaction), I received a written short sale approval extension for my transaction that was supposed to close on 8/31! WHEW!

So of course, I excitedly emailed it to the buyer's loan officer, buyer's agent, the seller, the escrow officer at Placer Title...this short sale extension is valid through 9/18/09! YAY! Mission accomplished, right?

WRONG. A few hours later, I received a call from the buyer's loan officer that there is one sentence in the short sale approval extension letter that the buyer's lender wants removed before they fund the loan. WHAT? This same sentence was in the original approval! Couldn't you have brought this to my attention BEFORE NOW!???

So, my quest continues. GRRR...

Sacramento Short Sale Extension Saga Continues...

If you read my post last week regarding the fact that short sale approval extensions are just not guaranteed, keep reading...and if you did not read that post, keep reading anyway.

Approval for this particular short sale expired yesterday on 8/31/09. The buyer has not been able to perform and close her loan. In fact, as of yesterday (and thus far today), the buyer's loan documents have still not been received by Placer Title. UGH.

A Trustee Sale (foreclosure...the end of the line...auction on the Sacramento County Courthouse steps) had been scheduled for 9/8/09 - next Tuesday, right after the Labor Day holiday.

Well today, I won a small battle in my quest for a written short sale approval extension. While I have not yet received a written short sale extension, granting us extra time to close the escrow, I was successful in my request to postpone the date of the Trustee Sale from 9/8/09 to 10/1/09. WHEW!!

So my battle continues...at least at this point my listing will not be foreclosed out from under the transaction, and with continued hard work, phone calls, and hair pulling - we may just get this short sale transaction closed yet! What an emotional roller coaster for the buyer ane seller!!

Sacramento County Property Tax Reassessment Scams Re-emerge...

I received a call last week from a client who wanted to inquire regarding the legitimacy of a company promising to drastically lower his property taxes for a $495 fee. I have posted about this before - so folks please be very aware that there are many "Property Tax Reassessment Service" scams. If it sounds too good to be true, it probably is!

If you receive something in the mail that looks official regarding a fee-based service that promises to lower your Sacramento County property tax assessment - please be aware that this is NOT legit! Do not provide any credit card numbers or private information, or if you have mailed one of these companies a check - cancel it asap!!

Sacramento County released a couple months ago its list of reassessed parcels...they have since taken that list off their site, however you can look up your current tax assessment on the Sacramento County Tax Assessor's website here. If your property was not reassessed, and you think it should be, we are currently right in the middle of the appeal application submission time period. You can download the Sacramento County "Decline-In-Value Request for Assessor Review" application and submit it yourself. You MUST file this form by November 30, 2009. The application will ask you to provide 2 comparable sales from the time period from November 2008 - March 31, 2009. Your tax basis for tax year 2009-2010 is based on your property's value in January 2009. If you need sale data from that time period for your application, feel free to email me at erin@erinattardi.com, and I am happy to provide it to you.

Now - having said all that, there is ONE legitimate fee-based re-assessment service that I know of. It is a service by a CA licensed appraiser, and his fees are not excessive. If you are interested in having someone prepare the application for you, email me and I can give you his information.