Buying a Foreclosure? Frequently Asked Questions (That I Can’t Answer)

If you were a fly on the wall for one of my typical showings at a foreclosed home you may hear the following conversation (or a variation thereof):

Buyer: Lacey, how long has the house been empty?

Me: I’m sorry but I have no way of knowing that based on the information in the MLS. I can see if the listing agent knows but there is a pretty good possibility they have never even spoken with the previous occupants.

Buyer: OK…. When was the kitchen remodeled?

Me: Unfortunately we do not have access to that information because the seller of this home is a bank and they have never occupied the property.

Buyer: (sighs) OK….

Other questions I (sometimes) cannot answer:

What is this?

Why is this here?

What were they thinking?

How old is the roof?

How old is the pool equipment?

When was this carpet put in?

Did anyone die in here?

"Lacey, why is this here?"

If I had a dollar for every time I was asked questions like these while showing property I would make enough of a living so that I would not have to actually sell real estate anymore.

To ease your frustration while looking (and mine, lol) here are some things to remember when looking at foreclosures:

• The seller is a bank (or other institution) and they have never seen the home, let alone have any first-hand knowledge of intricacies of when/why certain improvements were done to the home.

• The seller, listing agent and myself will (usually) not know the age of any appliances or other systems such as roofs, windows, heaters, air conditioners and pool equipment.

• How long the house has been vacant is not something that is disclosed by the seller, and the listing agent is not required to know exactly how long the home has been vacant. They may know- but they are not required to know.

• Since the seller has never occupied the home, they will have no knowledge of any deaths on the property

• Experience helps me to explain why oddities in homes are there and what they even are- but many times it is just a guess on my part. Sometimes I am shrugging my shoulders and scratching my head right along with you.

"Lacey, what is this?"

You are probably wondering right about now what the lesson is here? It is very simple- if you are buying a foreclosure it is imperative you exercise your inspection rights. Get everything looked at and or inspected by a qualified professional so you can move in with confidence and not unanswered questions. If you are in the Modesto/Central Valley Area and are looking for a qualified home inspector, check out Welcome Home Services, a FREE full-service referral source for home buyers and sellers offered by PMZ Real Estate. To begin your search for foreclosed homes in the Modesto area, click HERE.

Moving Sucks! 8 Steps To Help Ease The Pain From A Chronic-Mover

You might assume that I know a lot about moving since I sell houses for a living- but you’d be wrong. I know a lot about moving because I have done it many, many times in my life. There is no way around it- moving sucks. There is nothing fun or satisfying about it until the last box is moved and you sleep your very first night in your new home. Here are some tips I have learned throughout my life as a chronic-mover.

1. Be prepared: Get your hands on as many boxes as you can right from the start. You will always need more than you think. Get bubble wrap and/or packing paper for the breakables. If you are going to buy boxes and other supplies Home Depot is a great place.
 
 
2. Don’t put off the inevitable: You know you are moving? Start packing now. There is no reason to put it off. The more you get done before your actual move-out date the smoother the move will go.
 
 
3. Be organized: As you are packing, label each box with the room it will go in at the new place and a simple explanation of what is in the box. Put this on three sides of the box- top, side and end. You WILL forget what is in the boxes so labeling is vital. Also, when your spouse wants to know where something is they won’t have to ask you. Quickly being able to assess what is in the box and where it needs to go in the new house will help the move-in go much smoother.
 
 
4. Start with the non-essentials, finish with the most essential: When you first embark on your packing mission it can seem overwhelming. I always start with the non-essentials and work my way through the house to the most essential items packing them last. I go room by room first packing everything that hangs on the walls, then all the items on bookshelves, mantles, side tables, etc. I then usually move to closets and cabinets- which leads to my next point.
 
 
5. If you haven’t used it in a year (or more)- DONATE IT! As I am packing I have a box (or a pile) of items that we have outgrown and/or no longer need. I do this with clothes, toys, shoes, household items, sporting goods, etc. Charities such as Goodwill, Salvation Army and The Hope Chest (local to Modesto) thrive on donations of household items, and many will even come pick them up from you and sometimes it can be a tax write-off. There is no reason to move items that you do not need anymore so save yourself the trouble.
 
 
 
6. Know when to hire help: Full service movers can cost thousands of dollars. Unless you are moving cross-country or your company is paying for your relocation you will likely not go this route. There are back-saving alternatives, however. In many communities you can just hire the muscle for a few hours to help get those beds and dressers up the stairs. I personally have had great luck finding experienced movers who hire out their services on the side on Modesto Craigslist. It saves time (and our backs). Experienced mover-helpers do it quicker and more efficiently than you or I could ever dream of.
 
 
7. First thing to do at the new place: put the beds together! If you are moving your entire house in one day, as soon as your beds are delivered put them together and make them. Do not put it off- you will be exhausted at the end of the day, so having your already made bed to fall into is the best thing you can do for yourself.
 
 
8. Don’t be in a hurry to unpack: If you have followed suggestions 3 and 4 your essential items (dishes, cups, silverware, sheets, etc) will be clearly labeled and easily accessible in the room in which they belong. Unpacking everything else can come later. Taking it slow when you unpack can allow you the time to be thoughtful about where you put things saving you time and frustration later. When I do start unpacking I always start with my kids rooms. They are still young, so making them feel at home in the new place is typically one of my first priorities.

With a little planning an organization you too can make an otherwise painful and daunting process a little more pleasurable.

Are you ready to move? Click HERE to start your search!

Doing a Short Sale? Start Digging Through Your File Cabinet Now

It is no secret the market in the Modesto and Central Valley area is flooded with short sale listings, and there is not an end in sight- at least any time soon. If you are considering a short sale it is important that you separate yourself from the rest of the sellers and show your buyer (and their agent) that you are a motivated seller who is taking the necessary steps to close the transaction in a timely manner.

A successful short sale requires a partnership between the seller and listing agent. Both need to be fully committed to provide everything the lender requests to successfully close the transaction. Many sellers do not realize they need to be much more involved than simply accepting an offer.

As the seller doing some preliminary gathering will help expedite the process, so I recommend doing as much of it as possible before your lender has a chance to ask for it. The extent of the documents required varies from lender to lender, but here is a list of things you may need to provide to get an approved short sale.

• Pay stubs- they will want to see recent pay stubs for all borrowers/owners and often they will require you to send updated ones as the process continues

• Bank statements- most recent for checking and savings accounts, all pages

• Tax returns- two most recent years with w-2s and all schedules

• Profit and loss statements- if you are self-employed you will need to submit a P&L

• Hardship letter- a letter to your bank explaining why you need to be granted a short sale

• Divorce related documents- if you divorced since you took out the loan on the property and are using divorce as your hardship, they will want a copy of your divorce decree.

• Grant deeds- often related to divorce, if one of the original borrowers is no longer on title but still on the loan they will likely want to see a copy of the grant deed in addition to the divorce decree.

• Income- if you have other income besides your job you will have to disclose that- rental income, alimony, child support, unemployment, disability, etc.

• Debts and liabilities- they will often ask how much you spend (monthly) on everything from daycare to cable, including car payments, credit card payments, food and leisure and alimony/child support. They use all these numbers to calculate your debt to income ratio.

• Assets- they will ask how much you have in savings, 401(K) and IRA accounts. They will ask about other real estate you own and how much is owed on it relative to it’s value and personal property such as vehicles, boats, RVs, etc.

• Rental agreements- if you own rental property they will want to verify your rental income with copies of your rental agreements with your tenants.

Short sales are definitely not easy, and can often be emotional for the seller. With some organization and the right agent on your side to walk you through the process you can get through it successfully with as little frustration as possible. If you are considering a short sale and have more detailed questions please do not hesitate to contact me HERE. Your trust is valuable to me so your information and situation is always held in the strictest confidence.