Coachella Valley Real Estate Blog

Bermuda Dunes RealEstate...What's happening in this community?

Darcie Breen — Wed, 17 Mar 2010 15:26:00 GMT

As a full-time resident of Bermuda Dunes Country Club, I can tell you that we are definately feeling the pains of the falling realestate market values. When we bought our home in 2005, we paid a little over 500K.. Recent appraisal, two remodels later and our home appraised at $350,000.00 On my street alone, we have 3 terrific opportunities to buy

This neighborhood appeals to those who enjoy a country like setting. More rural, less cookie cutter feeling. No two homes are the same and they all enjoy large lots, views and a ecclectic feeling. The demographics here are a grab bag... If you enjoy golfing, it has one of the best courses in the Valley and is also home to the Bob Hope Classic Tournament each year.

Biking, walking and cocktail hour are the norm. I love this area, it gives me a sense of well being and involvement. When you're here, be sure to say hello !!

Terms we should all know when referring to Foreclosures and Home Opportunities in this RealEstate Market

Darcie Breen — Wed, 17 Mar 2010 15:23:00 GMT

Terms you need to know when looking to buy a Foreclosed or REO Property

Bank foreclosures — also referred to as Real Estate Owned (REO) properties — represent great opportunities to acquire real estate at prices well below market value.

If a homeowner falls behind on his or her mortgage payments, the lender — usually a financial institution like a bank — will initiate foreclosure proceedings on the property. If during this time the homeowner and bank can't work out a deal to get the loan current, the property will be put up for auction.

Sometimes a property will fail to sell at auction, or the lender will bid the highest amount to protect its investment, and the home becomes a bank-owned foreclosure. A bank will then try to sell this REO property through a Realtor® or third-party marketing company.

Because banks are in the money-lending business — not the real estate business — they want to sell as quickly as possible. Banks are not very concerned with turning a profit — they just want their money back.

So where can you find bank foreclosures?

Foreclosure.com offers America's most reliable and up-to-date database of bank foreclosure listings. Of course, you can also scour the newspaper and visit local court houses for public announcements and notices about foreclosure auctions. But that'll cost you so much time and unnecessary work.

And timing is everything when buying bank foreclosures. Keep in mind, this process takes time. As a local realtor with access to all the information above, I can save you a significant amount of time and money because I have access to the most recent and upcoming bank owned properties in the valley and with a short click I can send you daily notices of these opportunities. Whether you are ready to buy today or looking for tomorrow, now is the time to make sure you are ready to invest.

Notice of Default - this is the first stage wherein the homeowner receives an official notice of the bank foreclosing on the property due to non-payment of mortgage.

Foreclosure at Auction - if the homeowner fails to settle all mortgage debt including interests and penalties, the property will be foreclosed and an auction date will be set.

Bank REO properties - in the off chance that there was no winning bid during the auction, the property will be reverted back to the bank from which the mortgage loan originated. Thus, the property can now be referred to as bank foreclosure property.

Obviously, the banks will want to sell off the bank owned foreclosure as soon as possible in order to regain whatever capital they have on the property. They price these homes very aggressively and they usually sell for 3-5 % of asking price.

For buyers interested in reo properties for sale, it is important to realize that bank owned homes are sold as is. A professional inspection will be in order if the buyer wants to accurately estimate how much it would cost them to fix up the place.

In no time at all, I can provide you with a shortlist of foreclosure bank owned properties (REO) you can choose from a variety of options. Just drop me a line !

What is a short sale and how does it work?

Darcie Breen — Mon, 15 Mar 2010 18:18:00 GMT

What is a short sale?

For those of us that work in the industry we get the jargon and use it with verve, it seems! But the reality is most folks don't understand what short sales are and what their implications are. They just want a Bethesda short sale bargain and they know bargains are to be had in this market. Right?

If an owner buys a house for $500,000 and then needs to sell it but the market says it's now only worth $400,000, they are short $100,000. The seller is still the legal owner of the house and can accept a contract on the house for the $400,000 but they still owe the bank that payoff amount of $500,000. Unless they have cash reserves, they are now short or owe the bank that money.

The bank becomes a third party that has a say in the sale of this home because they have to agree to write off the loss of that $100,000 and agree to the sale of the home. Herein lies the rub...

Guess how many of these the banks are dealing with right now? You got it. So many that their desks are crammed with folders full of requests for short sales that it can take months for the process to work its way through to a final, closed sale. Unless all parties to the transaction are aware of the issues and willing to expend considerable effort to ensure smooth passage many of these sales are doomed from the beginning.

A Successful Short Sale

A successful short sale begins with an understanding of the client's financial situation and the ability to deal with the bank's requirements for submission. This is typically called a short sale package and each bank may want to see the information in a different way. While many homes may be listed as short sales unless the agent is far enough along in the process and has a rock solid connection at the bank with someone who can make a decision about this property, it can become a lesson in futility to try and get that home - at any price or time.

More banks are trying to get these homes sold as a short sale before they have to go through the cumbersome and expensive process of foreclosing and then selling these as bank owned homes. I see more now than I've seen in the past.

The biggest challenge is keeping the buyers in the process long enough for the short sale to occur. The buyers typically bail out long before the bank gives even the first indication that the sale will be approved. And in today's environment, with a tax credit looming at the end of April deadline, there is little room for error. Generally buyers also have a time frame in which they need to move so it's not practical to think of spending 6 months or more waiting for something to happen that may or may not be successful.

It's the what if that makes this a risky proposition for most folks. Once the bank owns it they want to get rid of it fast and generally it's priced to sell. They have the authority in place to sign the documents quickly, make decisions about contracts and get the sale completed much more quickly than in a short sale.

Seems kinda backwards that the same bank that couldn't get its act together to approve the short sale can quickly get rid of property it foreclosed on. But then no one ever said banks were good at real estate.

Short Sale - Worth the Risk?

Bottom line is yes, you can close these sales and I've done so to prove it. But it takes sifting through a lot of property and having many backout plans and options in place to make sure you can get to your final goal in your timeframe. And to answer the question in the title: are they worth the risk?

Only you can answer that for your personal situation. Do you need the tax credit by April? Do you need to move quickly? Can you handle the long wait with no outcome guarantee? Are there other houses to choose from?

If you need help navigating through this, let me know. I can help

My Mission

Darcie Breen — Tue, 13 Feb 2007 20:07:00 GMT

My mission is simple:

To exceed the expectations of home buyers and sellers

How and Why Do I sell so many houses?

Darcie Breen — Tue, 13 Feb 2007 19:59:00 GMT

1. Iwork every day- 365 days a year !

2. I answer our phones and return calls !

3. I advertise and markt our properties aggressively- over 28 ads each month !

4 I work with ALL price ranges and ALL markets- first time homebuyers, move up sellers and buyers, investors, second/vacaton homes & High-end homes !

5. I offer our my top notch, full service that includes our own team transaction coordinator ?Michelle: , house staging, home repair, home maintenance, and much more !

6.I work with terrific lenders who are great with creative deal making and financing !

7. I am continuously training and improving our skills!

8. I am not not afraid to think outside the box and try new approaches and techniques !

As the market changes, so do I. I am continually "sharpening my saw " by actively participating in seminars and workshops that help us help our buyers and sellers. Always striving for perfection , each member of Windermere is committed to enhancing their skills and increasing theknowledge needed to provide each of you with exemplary service and total satisfaction. I am truly a dynamic agent and I will constantly stretch ourselves to be the best we can be- for you!

Seller get cold feet- Can they back out?

Darcie Breen — Tue, 13 Feb 2007 01:50:00 GMT

Here’s the situation

Buyers agree to purchase house at 127K in March 06 to close deal in June 07.

They put $5,000. non-refundable down payment, & get agreement to occupy / rent at $500. per month until closing. No contingencies, conventional finacing.

Loan application timeframe was initialed as Not Applicable on contract. Buyers represented they had cash or means to close in June of 07

Fast forward to Feb 07 Buyers call sellers & seller’s agent to say we found another place to buy we are not going to buy this place.

Seller asks buyer in written letter to prove they cannot get financing. Buyers do not provide proof.

Buyers are close to or already have closed on new $110K house. Realtors handling that deal are aware of the prior contract.

Prior contract has not been nullified.

Sue for damage’s? Anybody been here done that? Seems like fraud on there application for financing for new house?

All input appreciated even if it hurts

Now is the time for buyers to Move !!

Darcie Breen — Sat, 10 Feb 2007 23:12:00 GMT

My clients keep asking me if the timing is right to buy or should they continue to wait for prices to drop.

I always ask them two things:

Do you plan on holding on to this home for at least two years?

Are you planning to finance any part of this transaction?

If the answer was yes to either of these questions, then there is no better time than now to buy. Interest rates are remaining at historically low points. There is a lsignificantly arger inventory of homes than have been available in some time which means sellers are motivated to make a deal. Don't be fooled into thinking this market is in a downward sprial and than sales prices are plummeting. In fact, sales prices overall in this valley continue to creep upward and recent analyses predict an approximate 8% increase in sales prices for 2007.

So if you've been waiting around, wait no more..........Get off the fence and into the game!