The Quick Sale Listing Strategy - Close in 15 days!

 Preapproving your home for a 15 day sale!

Western Realty Associates, a California based residential real estate brokerage for 20 years, has addressed the fast paced Ca. housing market conditions with low inventory, multiple offers, and shortened time lines. "We have come up with a listing and sale strategy that will shorten the listing and sale to close cycle to as low as 15 days, with no problem." The strategy is to make the seller’s home data as transparent as possible to perspective buyers so they have little or no unanswered questions about the condition, terms, or closing considerations when first making the offer.

The traditional listing, offer, and due diligence periods are just out dated, slow, and in most cases cause the seller additional negotiations and frustrations, as well as leave both parties in limbo for extended periods as long as 17 days or more due to a back loaded process.



Sold in 21 Days!

Our new strategy and process accomplishes exactly the opposite and by providing 100% upfront transparency. Before the home even gets placed in the local MLS as for sale, we front load the process so we have all seller disclosures, inspections, reports, and lenders appraisal in hand, so that any buyer and agent can review them entirely BEFORE submitting their offer. This front loaded process, ensures all information necessary to make an informed offer is immediately available. And reduces the contingency requirements down to as little as zero days, and no more than 5 days. This efficient and complete upfront process also gives our office the ability to handle listings in any market location even far from our main office as ALL the pricing, disclosures, and due diligence is done ahead of the home coning to market. At the time of listing, we are as informed about the property and local market conditions as any local agent and probably better.

Below is the outline and explanation of how each step of the pre-listing, report ordering, property pre-approval, are completed before placing listing in the local MLS for buyer offers.

 

a.       Property listing preparation: (15-60 days)

·         Property is viewed by Listing Agent “LA” to determine general condition.

·         LA determines closest possible actual selling price and sets that with sellers.

·         LA and seller discuss general strategy for repairs, clean up, staging, etc.

·   Can be none, some, or all, depending on home and desired outcome.

·         LA lines up all vendor affiliates who will assist in preparing home for market

·   Determines vendor, service prices, budget for any repairs, and how to be billed.

·   Inspections, reports, repairs, staging should be billed to escrow when possible. Some billing premium may be experienced due to deferring payment for provider.

·         LA and seller sign Quick Sale Listing Agreement with above items agreed.

b.      Pre-listing Disclosure, inspections, reports:

·         Seller disclosures drawn and signed

·         Lock Box placed

·         Pest Inspection ordered and completed. – Results reviewed for work or no?

·         Home Inspection ordered and completed – Reviewed with seller for repairs or no?*

·         Escrow opened – Estimated HUD requested with assumed terms at list price 10% down payment, conventional loan at market rate, zero points, $1500 in buyer costs, no seller credits, close in 21 days.
(*Seller to pay thru escrow home inspection cost, and any agreed on repairs.)

·         Preliminary title report ordered.

·         Appraisal ordered by lender affiliate and review for acceptance.

    ·   Lender to set up assumed buyer profile for “pre-approving buyers”

c.       Listing  - Listing Agreement with Price is prepared and Signed

·         As per LA and seller prior discussion, the listing agreement with signed pre-listing plan attached as addendum, is drawn and signed.

d.      Offer  - Offer review and acceptance guidelines:

·         Offer to be within $5,000 of list price to be acceptable for review.

·   Buyers to review all reports BEFORE submitting offer. Sign as reviewed.

·   Buyer confirmation of acceptance within 24 hours of receipt.

·   All contingencies except loan within 2 days of accepted offer.

·   Appraisal and Loan contingency removal within 7 days of accepted offer.

·         Loan - If buyer lender cannot perform, buyer is offered our lender (optional to remain within RESPA). Our lender will give 72 hour approval and 7 day contingency removal.

·         Close of Escrow to be 15-21 days from date of accepted offer.

Reports, Inspections, and terms of offers will be posted online and viewable by all buyers/or agents with a code for viewing. Transaction / Loan Processing Team to handle document posting and viewing duties as “property preapproval” Listing Coordination upfront service.

II. Service Affiliates Checklist: (complete list and order service before placing home in MLS).

            Listing Agency: 

            Lender:  

            Escrow Company:  

            Title Company:

            Home Inspection Firm:

            Pest Inspection: 

            Appraisal Firm: 

            Home Insurance:
            Home Warranty:

To list your home for sale, or to learn about the revolutionary No Haggle Listing process, email sales@wrfco.com, or call their Carlsbad office at 760-599-1261, or just visit www.1Californiahomes.com.

Top things that make mortgage deals very difficult!

Periodically I see patterns of loans that just are not getting done and are too difficult to work on. This is just the tip of the iceberg of loan problems. To ensure you are getting the best mortgage advice from an experienced professional, I higly recommend working with a mortgage broker with minimum 5 recent years in the business and having done at least 100 loans of more. That ensures they have are knowledgeable and focused on the details that kill deals.

Currently, these issues are making some loans not worth trying. I highly recommend not working on them. In addition, t ties up processors and takes up excessive time and worse, do not close. If you see any of these indicators, please be very careful about originating them.

Problems:

1. Credit scores on ANY loans less than 640. That is Conventional, FHA, or VA. In know lenders they can do them. We have tried repeatedly and they can not deliver or the time lines are so long the deals die on their own.

2.       Manufactured homes. Forget it. They don’t get approved with most of the lenders today we have.

3.       One off deals. You know the type; 2^nd home, owned by a corporation, that assumed the note from the prior borrower and now grants it to the employee as a bonus.

4.      Commercial loans – While these can be done, the unique nature of each loan and difficulty of finding the right lender, precludes most mortgage brokers from being effective in this area. If you need a commercial loan, find an expert in that area. It will save you time, and increase the chances of a successful funding and satisfied client. 

5.       Hard Money loans – We can do them but they are expensive, and I have yet to have a borrower agree to the terms. Unless the borrower is a bona-fied short term investor, it is typically not worth the time pursuing these. Having said that, there are times when private party funds are exactly they right thing. Read my blog article here: http://www.mortgagedave.blogspot.com/2011/03/private-party-financing-ppf-when-to-use.html

6.       Broken income, non reported income, non-occupant co-borrowers, second homes in the same city to get owner occupied rates, etc. Forget all these. They are far too difficult and most of them end up dead. Waste of your time, and more importantly distracts our processors from deals that can close.

7.      Non ARMS length short sale transactions – IF you become aware of one of these in your deal, don’t do it. The short sale lenders and new investors are getting very good a detecting these and fraud now under NMLS and/or FHA is a federal offense “felony”. Not worth it for you or the company for a  few thousand dollars.

8.       Loan Amounts under $100,000 – Not enough “juice” in most of these. If they are out of state through don’t even try.

9.   High LTV refis – Most of the lender guidelines pretty much kill refinances where the LTV is over 90% except FHA/VA streamline refis.

10.   Be careful of condos. Be sure the project is FNMA or FHA/VA approved. No more spot approvals. Now some lenders will not do high rise (over 7 stories) or mixed use.


Rate Locks: In addition to these difficult deal killers, the other issue we fneed to be aware of keenly as I have mentioned before is rate locks. Rate locks generally should be ollow some general rules to insure they are likely to lead to a completed loan and satisfied client:

• Have a completed, signed application, and signed full set of disclosures and accepted GFE.
• Complete package of documents from borrower in the office (pay stubs, tax returns, bank statements, etc). You know the list.
• At least a preliminary DU / AUS approval from the lender where the loan is going. No sense locking a loan that is not getting approved.
• Borrower has paid for appraisal and it has been ordered it.
• Minimum 30 day locks. Due to unknown issues that often extended underwriting and close times, I would give everything and extra 10-15 days.

Lenders all track pull through and are not happy when brokers or Loan Officers fail to deliver on locks. If you work with good lenders and can not afford to be cut off.

Yes, I know there are many variations on all these issues. But, taking the time to analyze deals and properly pre-package them makes the financing move much better.  In addition, cances of sucessful transactions increase exponentially when we stick to what we know and are good at.

Dave Van Waldick
Mortgage Broker - 22 years and growing
Western Realty Finance
Home Ownership Financing ExpertsOff/Cell: 760-599-1261
NMLS#345616 / CA DRE# 01065844

Home Buyer pre-Approvals in 5 minutes: www.ePrequal.com

Home Owners For Hope Foundation

Dave Van Waldick recently started a non-profit organization called Homeowners For Hope Foundation, to help voice the frustrations of millions of Americans at risk of foreclosure in the next 6-12 months. This after the government gave $120 BILLION dollars to the 4 major banks (B of A, Wells Fargo, Chase, and Citi) to help homeowners, the banks continue to ignore, confuse, and intimidate homeowners so they can be more profitable.




Dave recently organized and led a home owner support rally in downtown San Diego in front of Chase Bank. With supporters holding signs and walking in demonstration they were able to attract local news Channels 10 and 4 for interviews. Channel 10 news anchor Steve Fiorini and his crew spend almost an hour interviewing the H4H.org group, as well as noontime pedestrians and homeowners who have been foreclosed on. We thank the news stations for the coverage and support of millions of hard working taxpayers who only want to prevent losing their homes to foreclosure and move on with taking care of their families and re-gaining financial stabilty.

Fix our Mortgage Credit Now!

Proposal for Housing Market Stimulus via a mortgage "Credit Moratorium"...

Dave Van Waldick, a mortgage and real estate industry veteran, has proposed a mortgage credit moratorium platform that ensures a sorely needed short term stimulus to the housing market. His proposal has been submitted to a local Congressman, as well as mortgage and housing industry participants and advocates. His proposal below, summarizes his belief that as many as 2-3 million potential home buyers could re-enter the housing market in a responsible manner within 6-24 months without having to wait 3-5 years as has been suggested by HUD and FNMA in recent undwerwriting changes.

"As a 25 year participant of the mortgage industry, and 18 year owner of a residential brokerage, Western Realty Finance, I have provided thousands of mortgage loans to home owners over the past 18 years. As such I am acutely familiar with the virtual destruction of much of the housing and mortgage markets. We have watched intently for the past 3 years as housing sales have collapsed, and contributed significantly to the broader economic demise of the national economy and the world wide recession.

We have watched closely the news coverage as both industry and national political figures wrestle with the problems and propose solutions. Arguably, no one really knows how to fix this in a clear and meaningful manner. Fiscal and monetary stimulus is the traditional macro-economic tools employed by the Federal Reserve, the Treasury, and Congress to manage the economic cycles. This one has us all largely confused as it is so closely tied to consumer behavior that has been directly impacted by rapidly declining home equity and the multi trillion dollar loss of real wealth.

The proposal has the potential of quickly and significantly increasing housing sales by as many as two million units or more, and can benefit industry participants without being mired in mortgage industry complexity. It is relatively straight forward and has an immediate cause and effect to stimulus home buying. It is clear, simple, and relatively low cost.

I propose a “Credit Moratorium” for would be owners who’s credit and home buying ability has been impaired by mortgage late payments and/or short sale and foreclosure actions during the period between 2007 and 2009. Essentially, set back the credit clock for homeowners who have experienced mortgage delinquencies, and/or foreclosures due to market circumstances largely beyond their ultimate control. These proven buyers can then more readily become homeowners again, as long as their overall consumer credit is current, and they have the verifiable income and assets to buy a home that fits their budget. This has a huge beneficial impact on millions of homeowners who are locked out of the market for 3-5 years due to unfair current credit guidelines regarding mortgage foreclosures and short sales in this unprecedented time. It has a host of benefits, and is easily and inexpensively implemented by federal mandate. The national credit repositories would, within approved guidelines, restore mortgage late reporting to zero or no more than a minimal 30 days late, between 2007-2009.

I believe this to be worthy of federal level consideration and would certainly be a strong beneficial position and solution for the housing sector and all it’s the interested constituents and parties. This may be one of the most powerful consumer demand side tools available, at a minimal cost and could be quickly and clearly implemented. "

David Van Waldick,
President
Western Real Finance
760.599.1261
email: Dave@wrfco.com