Posts Tagged ‘short sales’

Spacious Condo at 2295 W Avenue 133rd in San Leandro, JUST SOLD!

August 27, 2014

Spacious upstairs unit in duplex + house on one lot, in Mulford Gardens area of San Leandro. This condo is close to San Leandro Marina. This property JUST SOLD for over the asking price! Antoine Pirson, Realtor®/Director Investment Properties at Caldecott Properties, represented the seller.

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What is Really Happening in the Foreclosure / REO Real Estate Process / Market? One Agent’s Point of View

June 23, 2011

Is it possible there is a corrupted process at the very top (wall street executives, wall street investors, bank executives, hedge funds, etc.) Here is a thought: We know banks are not willing to reduce the principle loan amount for owners under water. That can easily be measured by the number of completed loan modification that include a principal reduction. Very (very) few: About 49,000 of all the proprietary modifications completed reduced both
the loan principal and monthly interest payments. Out of how many foreclosures again? About 1.2 mil? The ones that are done are merely to keep the politicians at bay so the banks can say they are following their guidelines.

But…….banks are very willing to foreclose on any property, and sell the properties in REO bulk at 55-60% of current market value. This allows rich “investors” to buy these properties, and then turn around and sell them back to the consumers market at 85% of value and make 20-25% of the investment in about 4 months. We are talking about $60 – 100 million REO investment per deal (read “tape”) . You and I cannot take advantage of these incredible returns, as we have no “insider” at the bank who will give us that opportunity. These opportunities go to “connections” so they can make a ton of money on foreclosed properties. Pretty easy money, no? Then here is this question: If banks are willing to write down the REO to 60% of value, then why  can they not do a principal forgiveness for say 25% to the home owner? The write off to the bank is the same “loss” no? The big difference is that in the first scenario, the profit goes to the big investors at wall street. In the second scenario  the “advantage” goes to the home owners.

So what would be the difference in the real estate market today (read values and prices), if we had used the second scenario? Well for sure there would be a lot less “distressed” properties. The home values would not have declined as much, which also means there would have been much less of a “recession” in real estate, and home owners would have felt very good about staying in their homes, so no strategic defaults, and thus a much “happier” consumer who might have been able to spend money on the economy.

When will we learn to do the right thing for all Americans?

Antoine E. Pirson, MBA, CCRM
Broker and Investment Consultant
Caldecott Properties
5251 Broadway, Oakland, CA 94618
Office: (510) 594 2400 x 234
www.investmentpropertyfirst.com
Fax: (510) 594 2424
Lic Nr: 01372814

Which Oakland Condominium Buildings (Condos) Qualify for FHA Loans?

June 7, 2011

Close to half of all condo sales in Oakland in 2010 utilized FHA backed loans.  Though FHA guidelines have gotten a bit more conservative, most borrowers that meet FHA guidelines with credit scores above 680 qualify. 

The loan limit for single family homes (including condominiums) in Alameda County, as of 6/7/2011, remains $729,750.  In 2010, condominiums sold for an average of less than $300,000, so most condominiums qualify for FHA financing, right?  Wrong.

It has become a bigger challenge for a condominium building to qualify for FHA financing than for the borrower to qualify due to the condo building approval process implemented by the FHA.

As of 5/23/2011, there were 42 condominium buildings in Oakland that are approved by the FHA.  Here is a list of those buildings:

  1. 1755 Broadway, Oakland, CA 94612
  2. 360 Vernon Street, Oakland, CA 94610
  3. 3738-3740 Laguna Avenue, Oakland, CA 94602
  4. 407 Orange Street, Oakland, CA 94610
  5. 525 Mandana Boulevard, Oakland, CA 94610
  6. 532 30th Street, Oakland, CA 94609
  7. 55 Fairmount Avenue, Oakland, CA 94611
  8. 590 El Dorado Avenue, Oakland, CA 94611
  9. 666 Oakland Avenue, Oakland, CA 94611
  10. 77 Fairmount Avenue, Oakland, CA 94611
  11. 423 7th Street (8 Orchids), Oakland, CA 94607
  12. 926 Chester Street (Chester Street Lofts), Oakland, CA 94607
  13. 127 Bayo Vista Avenue, Oakland, CA 94611
  14. 1411 Center Street (Cigar Factory Lofts), Oakland, CA 94607
  15. 455 Crescent Street, Oakland, CA 94610
  16. 460-468 Crescent Street, Oakland, CA 94610
  17. 3721 Fruitvale Avenue (Diamond Park Townhouses), Oakland, CA 94602
  18. 424 Orange Street, Oakland, CA 94610
  19. 330 13th Street (Golden Bridge Lofts), Oakland, CA 94612
  20. 388 Santa Clara Avenue, Oakland, CA 94610
  21. 322 Hanover Avenue, Oakland, CA 94608
  22. 3403-3409 Haven Street (Haven Street Lofts), Oakland, CA 94608
  23. 2316-2324 Lakeshore Avenue, Oakland, CA 94606
  24. 10 Moss Avenue (Manor Park), Oakland, CA 94610
  25. 585 9th Street (Market Square), Oakland, CA 94607
  26. 7100 Mountain Boulevard (Monte Vista Villas), Oakland, CA 94605
  27. 4504-4508 Montgomery Street, Oakland, CA 94611
  28. 425 East 11th Street (Mutual Creamery Lofts), Oakland, CA 94606
  29. 567 Oakland Avenue, Oakland, CA 94611
  30. 1201 Pine Street (Pacific Cannery Lofts), Oakland, CA 94607
  31. 989 Webster Street (Pacific Renaissance Plaza II), Oakland, CA 94607
  32. 565 Bellevue Avenue (Park Bellevue Towers), Oakland, CA 94610
  33. 180-320 Caldecott Lane (Parkwoods Condos), Oakland, CA 94618
  34. 740 Canyon Oaks Drive, Oakland, CA 94605
  35. 288 Whitmore Street (Rockridge Manor), Oakland, CA 94611
  36. 388 Santa Clara Avenue (Santa Clara Commons), Oakland, CA 94611
  37. 401 41st Street (Temescal Station), Oakland, CA 94609
  38. 222 Broadway (The Ellington), Oakland, CA 94607
  39. 320 Lee Street, Oakland, CA 94610
  40. 3825 High Street (Villa Del Lago), Oakland, CA 94619
  41. 1695 15th Street (Willow Court Lofts), Oakland, CA 94607
  42. 1219 Wood Street (Zephyr Gate), Oakland, CA 94607

 If you are interested in obtaining an FHA loan for a condo project that is not on th list, it is possible to get a condo building approved.  I am happy to assist with this process.  It requires, among other things, the approval of the home owner’s association.

If you are interested in purchasing a condo in the East Bay with an FHA loan or getting your building approved for FHA financing, please feel free to contact me to discuss.

We also have a good place for you to see what listings are available in most of these buildings:  http://www.caldecott.com/?page=building_directory&buildings.  If you don’t see a building here, drop me a line and I can assist you with more information.

Andy Read
Broker
Caldecott Properties
aread@caldecott.com
510.594.2400 x 222

Are Banks Hurting Real Estate Values? One Agent’s Opinion is “YES”

May 10, 2011

I am sure we all have experience in selling or buying short sales and REO’s. Maybe in your neck of the woods, it is different, but here in California’s Bay Area, it seems that banks are not making the right decisions and are not capable of communicating between departments and are indeed preventing real estate values from stabilizing or appreciating. Here are two examples:

1. I was representing a buyer in short sale, and had an accepted offer from the seller and bank approval.  Two  before close of escrow, the bank foreclosed, and the property was bought at the county court house steps for $50,000 less than the accepted short sale offer (this is a loss even with the costs of the sale). This is an example of a lender’s inability to communicate between departments.  Not only does this not make sense from a business / financial perspective, it also lowers the area prices by $50,000 on equivalent homes.  

2. I was representing a buyer in a REO condo purchase.  I had an accepted offer from the bank, and was going through the mortgage underwriting. The lender (for the buyer) decides NOT to do the loan, even after appraising the property at value, because the building does not meet a Fannie Mae guideline that was not designed for new construction.  The original developer  (whose name is on the Final Public Report issued by the California Department of Real Estate) still owns 40% of the total number of units.  This resulted in the buyer walking away after spending $400 for appraisal and $400 for inspections. The condo unit sold for $75,000 less than the short sale offer. All the condo owners in this complex  were negatively impacted by this sale which may result in these owners “strategically walking away” furthering the challenges faced in the current real estate environment.

You tell me the banks are NOT preventing real estate to rebound?

Antoine E. Pirson, MBA, CCRM, CCIM (candidate)
R.E. Broker and Investment Advisor
Caldecott Properties
5251 Broadway, Oakland, CA 94618
Office: (510) 594 2400 x 234
www.investmentpropertyfirst.com
Fax: (510) 594 2424
Lic Nr: 01372814

Save Your Home From Foreclosure

March 24, 2011

If you are close to losing your home or know someone who is, California has 4 NEW Housing Finance programs that can provide direct assistance to help prevent foreclosure.

Unemployment Mortgage Assistance Program (UMA) – Provides up to 6 months free mortgage payments for unemployed homeowners.

Mortgage Reinstatement Assistance Program (MRAP) – Provides up to $15,000 in mortgage payments for homeowners that have experienced a change in household circumstance which has led to default.

Principal Reduction Program (PRP) – Provides funding to homeowners whose homes are now worth less than their mortgage.

Transition Assistance Program (TAP) – Provides money for relocation costs in the event of a short sale or deed in lieu of foreclosure.

To find out if you or someone you know is eligible for one of these federally funded programs click here.



Monthly Investment Meet-Up Meeting with Antoine Pirson Tomorrow Night 7-9pm

January 4, 2011

Where will the Housing Market go in 2011?

Tomorrow evening (January 4th, 2011)  from 7 – 9 pm, Antoine Pirson (our Director of Investment Properties) will hold his regular monthly investment meet-up meeting at our Oakland office (5251 Broadway, Oakland, CA 94618 – the corner of Broadway and College Avenue)

This month, he will cover the following topics:

  1. What is the economical forecast for 2011? (Attendance participation encouraged)

  2. What is happening to lending, and underwriting requirements (A mortgage broker will be in attendance to answer these questions)

  3. Housing Rebound: Bull or Bear?

  4. Sales trend from December 2010

  5. What is inflation and how does it affect real estate?

  6. Who is buying NOW? And why?

Anyone who would like to join in the discussion is welcome to come and hear what Antoine and others have to say about the housing outlook for 2011.

Hope to see you there tomorrow night!

Antoine E. Pirson
MBA, CCRM, CCIM (candidate)
R.E. Broker and Investment Advisor
Lic #01372814

apirson@caldecott.com
Office: 510.594.2400 x 234
www.investmentpropertyfirst.com

Friends + Family Event at Restoration Hardware Nov. 11-15!

November 8, 2010

Save 20% on Everything!

In Stores, Catalogs + Online

November 11-15, 2010

Enter code FFP2010 for online purchases.

Also save 20% on everything at
Baby & Child Restoration HardwareStart shopping now at http://www.restorationhardware.com/

* Offer excludes sale merchandise. Stores open at 9am with the exception of Sunday, which opens at 10am. Offer valid for purchases made from November 11-15, 2010. Voucher is valid for 20% off your total Restoration Hardware Restoration Hardware Baby & Child purchases at any of our stores, catalogs or online. Tax, shipping and surcharges not included in calculating discount. Offer cannot be combined with any other promotions, coupons or programs discounts and my not be applied to previous purchases. No cash/credit back. Not valid for gift certificates, monogramming and gift wrap. In-stock orders will deliver by December 2, 2010.

New Borrower Web Site Available ~ KnowYourOptions.com

August 9, 2010

 

Fannie Mae has launched KnowYourOptions.com, a new consumer education Web site that outlines the choices available to homeowners who are struggling with their mortgage payments, and provides guidance on how they can contact and work with their mortgage company to find solutions.

The online resource, which offers reliable and easy-to-understand information in both English and Spanish, expands on Fannie Mae’s ongoing efforts to help struggling borrowers find alternatives to foreclosure. Key features of KnowYourOptions.com include:

  • an interactive Options Finder to help homeowners identify options that might be right for their situation;
  • calculators to help borrowers understand how many of the options work, including refinance, repayment, forbearance, and modification;
  • videos featuring real homeowners discussing how they received help and housing counselors providing advice;
  • a virtual assistant to walk homeowners through key areas of the site; and
  • next steps and helpful forms, including a financial checklist and contact log to help borrowers be prepared when contacting their mortgage company or housing counselor.

KnowYourOptions.com provides homeowners who are having trouble paying or recognize they can no longer afford their mortgages with detailed information on

  • refinancing, 
  • repayment plans, 
  • forbearance, 
  • loan modifications, 
  • Deed-for-Lease™,
  • short sales, 
  • deeds-in-lieu; and more.

Check out KnowYourOptions.com today!

Are there any foreclosed, bank-owned, REO or potential short sale properties in the East Bay cities Lafayette, Moraga or Orinda (Lamorinda)? If so, what type of discount are they selling for?

May 12, 2010

Yes, there are distressed properties in Lafayette, Moraga and Orinda, just not many compared to other cities in Alameda and Contra Costa that were hit significantly harder by the market downturn.

From January 1, 2010 to May 7, 2010, there were 28 distressed sales in Lamorinda accounting for 17.7% of total sales in these cities.  In addition, there were another 26 sales pending as of May 7, 2010.  Of these 28 sales, 10 were short sales, and 18 were REO’s.  These properties were listed for an average of $669,949 ($306/square foot) and sold for an average of $642,402 ($295/square foot) – a 4.1% average discount on the list price.

During the same period of January 1, 2010 to May 7, 2010, there were 130 non-distressed sales (re-sales and new construction) that were listed for an average of $1,017,907 ($427/square foot) and sold for an average of $966,636 ($409/square foot) – a 5.0% discount on the list price. 

Based on this data, distressed properties are selling for an average discount of 30.7% versus non-distressed real estate sales.

For more information about this market, or to sign up for a free-list of distressed sales in Lafayette, Moraga, Orinda or other Contra Costa or Alameda County cities, please contact Andy Read, Broker, at 510.594.2400 x 222 or aread@Caldecott.com.

Foreclosure Cancellations Continue to Climb

May 12, 2010

Short sales and loan modifications are not the only explanation

Discovery Bay, CA, May 11, 2010 ~ ForeclosureRadar (www.foreclosureradar.com), the only website that tracks every California foreclosure and provides daily auction updates, issued its monthly California Foreclosure Report for April 2010. Foreclosure filings were down in April for the first time since the beginning of the year. Despite the decline in filings, the inventory of properties in preforeclosure or scheduled for sale only dipped slightly as the drop in filings were offset by an increase in the time to foreclose. Cancellations continue to climb, up more than 32 percent from the beginning of the year. The number of properties sold to 3rd parties also continues to climb, helped again this month by slightly better discounts.
 
“The steady rise in cancellations leads us to believe that loan modifications and short sales are gaining traction” says Sean O’Toole, Founder and CEO of ForeclosureRadar.com. “I’d caution, however, that cancellations also occur due to filing errors and extended postponements, which require the Notice of Trustee Sale to be re-filed. In fact, 14.6 percent of new Notice of Trustee filings in April were on previously cancelled foreclosures.”
 
Click here for the full April 2010 Foreclosure Report.