Another 90 day moratorium on foreclosures? Help or hurt? Steve Eveleth StevesHomeSearch.com
Another attempt to band aid the open wound. The pres says he doing this to put pressure on lenders to work with home owners……haven’t we already done this a couple times in past 2 yrs? The lenders do not give a shi* about working with homeowners. Thanks to corporate tax laws & legal loopholes for big business believe it or not lenders /investors/hedge funds/insurance companies are actually benefiting from this foreclosure era but you don’t even want to get me started with all that!!
What we need to do is let this thing find its own bottom. Just like the bailout money, what happens when it’s gone? We’re back where we started. Same with the moratorium. You see the problem is deeper than lenders discretion on whether they want to work with people on their loan mods, the problem is people don’t have jobs to pay their mortgage whatever it’s modified to! Let all the foreclosures do what they are going to do, first time buyers are buying them up as soon as they come on the market. All we are doing is setting a new foundation of buyers in solid 30 yr fixed loans. Once economic conditions improve, all the foreclosures are bought up & people are making decent money again we should see some solid ground to stand on……….let’s keep our fingers crossed for the alt energy & science, stem cell something soon”” boom, when? I have no clue; if I knew the answer to that I would be on a beach somewhere not writing these blogs!! As long as history repeats itself we will eventually be in good shape again. Lets not ever forget these times people! You know what’s funny is we are going to be like our parents & grandparents all conservative in 20 yrs all super conservative from the lessons learned “back in the day” the mid 2000’s foreclosure era…lol
Livermore ca real estate agent. StevesHomeSearch.com.Steve Eveleth. Livermore ca real estate news.Livermore ca foreclosures. Livermore ca home search
Steve Eveleth 925-487-2246 not your average suit & tie smiley face realtor. One that is here to help you . No sales or BS along the way. I should not have to “sell” you anything. I should instill your confidence in me that I’m the right realtor for the job of handling one of your biggest financial transactions of your life & taking care of you along the way
GET PREAPPROVED, GET OUT THERE SHOPPING OR BOTH, ALWAYS A QUICK RESPONSE (find out in less than an hr if you can get into a home)
http://www.steveshomesearch.com/bin/web/real_estate/AR202865/ACTIVATE_FRAMES/HOME_FINDER/Livermore/1243199721.html
Steve’s video on how to shop in this current market
http://www.youtube.com/watch?v=M1dyagct9SE
Win the lotto this is not a joke or a marketing ploy, go ahead check it out!
http://www.steveshomesearch.com/bin/web/real_estate/AR202865/ACTIVATE_FRAMES/CONTEST/Livermore/1243199721.html
Monday, June 15, 2009
Saturday, June 6, 2009
"highest & best" game banks play by Steve Eveleth
The "highest & best" counter offer game the banks play with poor buyers from Steve Eveleth
Since mid to end of 2008 & current 2009 the entry level market is cooking for first time buyers. 90% of low priced bank owned homes are getting 5-10 sometimes even 20 offers in the East Bay, Central Valley & Contra Costa counties. When the banks get multiple offers they counter everyone back at what they call "highest & best" meaning they are not going to tell you how much they want, how much other offers are or even if there are any other offers. They are simply telling you how much do you want to pay for the home what's your "highest & best offer" this is the most difficult situation to deal with because it makes the buyer completely do a back flip in their mind because the first thing you as a buyer think about is "getting the best deal" & price negotiation" well there is none that's just it. The banks purposely throw REO's on the market 3-5 even 10% under comps because for one they have to move them quick to get off the books (banks are not in the business of property management) two, they know they will get multiple offers so they can pick the best one with the highest price that they think has the best chance to close! First question buyers ask is well how much are the other offers? How many other offers are there? How much do we need to put in to get our offer accepted? The difficult part for a buyer's agent is answering don't know, don't know don't know!! AND WE REALLY DON'T KNOW with the highest & best game it's like spinning the wheel of luck. There is no way to tell how many offers there are, how much they are or what bank is willing to take to choose your offer. There are a few things to improve your chances like for instance 20% down conventional loan verse FHA 3.5% down, banks usually would pick the 20% down over the FHA because they think it would have a better chance at closing. Of course cash offers usually always trump the other offers.....now heres a twist (and there’s always a twist with REO's somewhere in each transaction thats different from the rest) is this: I have seen banks choose a FHA offer over cash or 20% down...why is this after what I just mentioned????Bottom line net that’s it....you see some banks don’t care about cash offer they are looking at highest new profit, other banks dont care about net they want it to close quick & don’t want to wait for financing.......this is where it gets challenging for agents & there clients...dealing with the banks is like dealing with the wizard behind the curtain, we simply do not know what the bank is going to do...the old days of inside politics with all parties involved is non-existent with the banks.....we play buy there rules & spin the wheel...just like at Vegas, that’s how you have to look at it when shopping right now....
Since mid to end of 2008 & current 2009 the entry level market is cooking for first time buyers. 90% of low priced bank owned homes are getting 5-10 sometimes even 20 offers in the East Bay, Central Valley & Contra Costa counties. When the banks get multiple offers they counter everyone back at what they call "highest & best" meaning they are not going to tell you how much they want, how much other offers are or even if there are any other offers. They are simply telling you how much do you want to pay for the home what's your "highest & best offer" this is the most difficult situation to deal with because it makes the buyer completely do a back flip in their mind because the first thing you as a buyer think about is "getting the best deal" & price negotiation" well there is none that's just it. The banks purposely throw REO's on the market 3-5 even 10% under comps because for one they have to move them quick to get off the books (banks are not in the business of property management) two, they know they will get multiple offers so they can pick the best one with the highest price that they think has the best chance to close! First question buyers ask is well how much are the other offers? How many other offers are there? How much do we need to put in to get our offer accepted? The difficult part for a buyer's agent is answering don't know, don't know don't know!! AND WE REALLY DON'T KNOW with the highest & best game it's like spinning the wheel of luck. There is no way to tell how many offers there are, how much they are or what bank is willing to take to choose your offer. There are a few things to improve your chances like for instance 20% down conventional loan verse FHA 3.5% down, banks usually would pick the 20% down over the FHA because they think it would have a better chance at closing. Of course cash offers usually always trump the other offers.....now heres a twist (and there’s always a twist with REO's somewhere in each transaction thats different from the rest) is this: I have seen banks choose a FHA offer over cash or 20% down...why is this after what I just mentioned????Bottom line net that’s it....you see some banks don’t care about cash offer they are looking at highest new profit, other banks dont care about net they want it to close quick & don’t want to wait for financing.......this is where it gets challenging for agents & there clients...dealing with the banks is like dealing with the wizard behind the curtain, we simply do not know what the bank is going to do...the old days of inside politics with all parties involved is non-existent with the banks.....we play buy there rules & spin the wheel...just like at Vegas, that’s how you have to look at it when shopping right now....
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