Yes, I sold this Sherman Oaks home twice in one year. Here's how it happened.

4484 Stansbury, Sherman Oaks just closed for the second time this year.  I was the listing agent both times.  Here's how it happened.  It was a short sale in 2013.  By the time it got a great offer and the (long, long) short sale process was done, it closed at the beginning of May.  The price was $538k and it went out at all cash to an investor (yes, I thought it was low, but that was all the lien holding bank wanted).

The investor rehabbed the house (which was pretty cute to begin with and in good shape) and hired me to list it again.  Hey, I know Sherman Oaks real estate, right?  We put it on the market in July for $799,000.  This is what homes go for in these parts.  And it quickly got an offer like everything else, and sold for $809,000 yesterday.  That's how I came to sell the same home twice in one year.

More drama on the Verdugo short sale, or why is BofA still selling toxic junk?

Just when I thought the short sale on 2012 W. Verdugo, Burbank was finally going to close, we had another crisis this week.

Backstory: Lender Dana Dukelow had told me the following story: he had funded a loan on a short sale, and it was about to close, when the title company discovered that the lien/loan was no longer owned by the bank that had approved the short sale on the property.  That bank was BofA.

Why is this important? Because there is no longer a valid short sale approval since the original approving bank has nothing to do with it anymore.  The transaction can’t close until – and if – the new bank approves it.  People are trying to move, their cash is tied up, etc, etc.

Dana’s story alarmed me and I decided to check on Verdugo’s BofA loan.  (Citimortgage owns the second loan; it too has been approved for short sale.)

Sure enough, it showed that BofA sold this non-performing loan to HSBC on November 4, 2011, several days before BofA issued the short sale approval – on a loan they no longer owned.

We all were running around with our hair on fire.  I spent several hours on the phone, and so did the short sale negotiator and escrow officer.  There was no record of the loan at HSBC (just so you know, HSBC’s customer service is very spotty).  BofA had no record of the loan being sold, although it had recorded as such at the county recorders.

The story has a happy ending due to a series of coincidences.  Turns out that BofA is the servicer of HSBC/Merrill Lynch loans.  So their guidelines meet HSBC’s guidelines, and the original approval still stands. 

We are some of the lucky ones.  Other Realtors that I’ve talked with are in limbo/hell on their BofA transactions.  One was told by BofA, “We sold 9000 Freddie Mac loans and are behind on our coding.” Great, just great.  So while the bank processes paperwork, buyers and sellers are sitting on boxes, holidays are ruined, foreclosures are proceeding, etc.

Okay, I’m not so savvy on the inner workings of high finance, but this brings up another question: why are the banks selling these toxic assets underperforming loans to other banks?  Who benefits?


And yes, we're on for a 12/23 closing.  Please cross your fingers and hold your breath.

BofA called to help on my short sale, but didn't

BofA's social media team has been monitoring their online reputation, because after I last bashed them online, they contacted me to ask if they could help with the short sale on Verdugo.

Short answer: they didn't help at all.

Back story: I have used a third-party negotiating company on this transaction.  That's not uncommon.  The 3rd party company is listed as the authorized contact.

So the first thing the nice BofA lady told me was that she had indeed looked up the transaction -- and I wasn't authorized to talk about the sale because I wasn't the listing agent.  I tried to correct that, but she wasn't having any.  She said that the real listing agent should contact them through Twitter, and perhaps then BofA could escalate the short sale.  When I explained this to the 3rd party negotiator -- he's the listing agent according to BofA -- his jaw dropped in astonishment (he's only had about a bajillion live-person conversations with BofA staff about this).  So he's contacted @BofAhelp, but has not received a response.  And they are not answering their phone either.

So much for managing your online reputation, eh? I wish BofA would devote as much manpower to getting their short sales wrapped up as they do to social media.

How my short sale is going, chapter whatever, or BofA is the bitchenest bank of all time!

We've been in escrow for three months now on 2012 W. Verdugo in Burbank and our stalwart buyer is hanging in there.  BofA and Chase, the lenders, verbally approved the deal about a month ago. But we still need their approval letter.  What's the hold-up? Our outside negotiator learned this week that his cohort at BofA had been fired, and now there's a new person to deal with there.  O BofA, I love you so.  The latest is that the file is with the investor for approval, and once that happens, we'll get our approval letter.  Short sales are being streamlined? Not in my world.

From today's L.A. Times: What it's like to lose your house

L.A. Times runs a regular "Postcards from the Recession" column.  Today, the column has a terrific, first-person article about what it's like to lose your home to foreclosure/short sale.  The title should link; if not, click here.  The writer, Kathy Gosnell Seiler, is a copy editor at the LAT.

Luxe resort -- at private home in Encino?

Here's the fanciest house I saw this week -- and it's in the flatter part of Encino.  Looks like a resort, no? It's at 17941 Rancho and is listed for $1,299,000 (It's a short sale and according to listing agent, the gap between what's owed and the current value is $500,000.  Yikes!). It has 5 beds, 3 baths and 4172 square feet and currently is being used as a rental.  Of course, the house is lovely, it has a big built-out kitchen with high end appliances, etc. It also has a built-in many-thousand-dollar espresso machine.  Really? Do people like espresso that much? But anyway...

The really special feature is the backyard and pool.  It looks just like a  resort pool -- seriously, you'd think you were in Puerto Vallarta or at least Scottsdale.  As you can see, it has a waterfall.  And a big water slide.  And a swim-up bar.  There are 3 built-in barbecues, a regulation-something sports court, a backyard powder room, and a separate, private shower.  If you owned this house, it would almost be criminal NOT to entertain ALL THE TIME.  Too bad the city won't allow "day" resorts.  That certainly seems like it would be the highest and best use of this property.

Short sale gossip! This is on my Facebook page, too

Note for 5/13, 11:00 a.m.: I'm having problems with Blogger.  It has lost a couple of posts.  I'll put 'em back up soon.  This is also on my Facebook page Judy Graff, Broker Realtor.

I have short sale gossip! A few weeks ago, I heard that the Bank of America short sale system, Equator, had "lost" 30,000 files. One of them was a transaction file that I was working on for buyers.

Now, here's the latest:

Our office’s short sale experts told us the following on Tuesday: Bank of America has okayed overtime for its short sale staff and has also begun to outsource some of its short sale files.  Apparently, they are expecting many more short sales in the coming months.  Also, for BofA customers that are behind in their mortgage payments, the bank is apparently going to begin requesting that those owners list their home for sale as a short sale.  Don’t quote me on this, but also don’t say I didn’t warn you.

845 N. Frederic, Burbank just closed

This adorable house is 845 N. Frederic in Magnolia Park and it was just bought by my clients, the Jordan family.  Their picture can be found on my website on the Our New Home page.   The sale closed Friday for $629,000.  The escrow went smoothly all the way through.  Bank of America even closed the loan right on time!  The sellers purchased an out-of-area short sale.

Uh-oh.

Although the sellers' short sale purchase has received  verbal approval from the lien-holders, it still does not have that all-important written approval.  So the sellers are renting back from the buyers for two weeks while they wait for the bank to get its act together.  We are all hoping that they don't have to rent back for longer.  Cross your fingers.

How my short sale is going, Chapter Two

If you read down the page, you'll see a post regarding my experience listing a short sale property.  Here's the latest: all in all, it's not going that badly, so far.  Yes, I have to call the processor every day and he never calls me back.  But I expected that.  And he tells me that the file has been sent to the closing department.  Huzzah!  But he also tells me that it will be a week to ten days before a closer is assigned.  Again, this is par for the course.

Short sale listing in Toluca Lake

 

This is the exterior of my new listing at 10862 Bloomfield, #103, Toluca Lake 91602. This 2006-built condo has all the bells and whistles, including 2 beds, 2 baths (since when is that a bell or a whistle? nevermind), 1300 square feet, hardwood floors, patio Italian marble in the kitchen and baths, high ceilings, security building, and a fabulous location in Toluca Lake.  And it's $383,000.  Here's the bad news: it's a short sale, but I'm committed to getting this turned around as soon as possible.  Call me with questions or for showings.

Open Saturday, 12/6, 1-4 pm: 1321 Virginia, Glendale

I'll be holding 1321 Virginia in Glendale open this Saturday, December 6, from 1 to 4 pm. Yes, it is this gorgeous. You can see more pictures on the "Featured Listings" page of my website at www.judygraff.com. Here are the details: 3 beds, 2 baths, guest house with 3/4 bath, pool, spa, 1825 sf house, 14616 sf. lot (yes!), a/c, gorgeous hardwood floors, big kitchen, fireplace and more.

Here's the mls description: Gorgeous Spanish home in Northwest Glendale! This home has it all - 3 large bedrooms with crown molding, remodeled bath with dual vanity, distressed hardwood floor and recessed lighting, open living room with dramatic fireplace and coved ceiling, formal dining room with stain-glass window and coffered ceiling, lovely tiled floors in kitchen and breakfast room. Other amenities include a guest house, pool and spa, awesome covered patio overlooking the grounds, and the list goes on and on. Due to the sellers circumstances, this is a short sale listing and all terms and conditions are subject to lender approval.

Yes, it's a short sale. No, the family isn't buying it back (see below). It is listed at $879,000. Please stop by and see me!

The names have been changed to protect the equity

A 3 bedroom, 1 bath, character home recently listed in Burbank. I'm very familiar with this house. I met with the owners back in December when they asked me to prepare a comparative market analysis and determine a sales price for them. They contacted me because I had sold the house next door to them a few weeks before.

The owners/sellers were originally from the East coast. She was a stay-at-home mom, and he was a top executive at a prominent local institution. They didn't really like Burbank and were thinking of returning to the East coast. They had owned the home for about two years and had done some nice upgrades to it. I told them that I thought I could get about a maximum of $700,000 for the house. They were unhappy with that price and believed the house should sell for much more.

The house is now on the market with another Realtor, nine months later, for $499,000. It is a preforeclosure short sale. The neighbors tell me that it has been vacant for a couple of months.

It appears that these folks just walked away from their home and mortgage. Knowing what I know about the sellers, I don't believe there was significant financial hardship; they just didn't want the house anymore and couldn't sell it for what they paid for it. So, they're sticking the bank with the tab, and lowering their neighbors' value/equity in the process.

This price is significantly low for the excellent neighborhood. The house may draw multiple offers and go for over the $499k; I hope so for their neighbors' home value sake.

News on our old friend 2304 N. Sparks

Remember this house? It's a short sale which has been on the market for a very long time. It had an HGTV-redone kitchen. I blogged about it here last February and got in trouble for doing so by the listing agent. My bad. And when Peter Viles of L.A. Times blog LaLand rode along with me for caravan, he blogged about it, too.

It's in escrow, and here's the skinny. The buyer's agent is in my office, so that's how I got this info. The selling price is $485,000 -- way less than the $699,000 it originally listed for. There were apparently several offers. I was told there were offers on it back in February -- for $550,000, no less -- though I don't know why they weren't acted upon then. But short sales are taking a very long time to get approved these days.

The buyer is an investor who put down a lot of cash. I'm told he plans to have a relative with school-age children move in so the kids can go to Muir, the middle school.

Short sales and Countrywide

The latest that I've heard on short sales is that it's taking Countrywide over 12 weeks to approve them. This info is from a Realtor colleague with 4 short sale properties where Countrywide has the 1st note. In other words, if you make an offer on a short sale property, don't expect to hear anything for, uh, awhile. OMG, why? Apparently, Countrywide is completely backed up on processing these -- I'd say they're more likely overwhelmed.

The Short Sale Process

There's a very good article about short sales in LATimes.com. It will be in the Sunday LAT as well. Here's the link. Keep in mind, the banks lose more if they foreclose than if they allow a short sale. They have to manage the property, pay the costs of the sale, keep the insurance up, etc.

Short Sale, Lending and PMI News

Here's some more good news from the lending sector:

Fannie Mae scraps higher downpayment requirements
Friday May 16, 9:54 AM EDT
WASHINGTON (AP) — Fannie Mae says it is doing away with higher minimum downpayment requirements for borrowers in distressed real estate markets.
The government-sponsored mortgage financier said Friday it will require minimum downpayments of between 3 percent and 5 percent for all loans that it guarantees.
That replaces a December policy that required a higher minimum if the loan was for a home in a market with declining real estate prices.
Washington-based Fannie says the move is part of its effort to help resuscitate the flagging mortgage market. Thanks, Dana Dukelow, for the article.

Other lenders are doing the same; however, it appears that the market for second mortgages is shrinking. For the average buyer, this is a mixed blessing: once again, you can get a home with only 5% or 10% down. That's the good news. The bad news is that rather than have two loans (say, one for 80% and one for 10%), a buyer will now have just one loan, but will pay "private mortgage insurance" every month.

In short sale news, it appears that the lenders are finally streamlining the process and it isn't taking so long to get an approval on a purchase contract. Also, in short sale cases where there is both a first and second loan, the holders of the 2nd loan are pretty much giving up and going away for a pittance (about $1000). No wonder the lenders of 2nd loans are dwindling!