I heard a story today from a lender that goes along with my last post on Notice of Default.
This lender had a friend that took out a construction loan on a spec home. The project went over budget and the builder filed bankruptcy leaving this guy holding the bag. The bank foreclosed on the spec home. This man had put his own home up as collateral on the construction loan so the bank started the foreclosure procedure on his home as well. I do not know what the man tried to do during the 90 days following receipt of the Notice of Default but, 14 days before the the Trustee Sale, this man called my friend, the lender, and asked for help to refinance his home. It was too late!
This man waited too long to explore his options and ended up losing $170,000 equity in his home.
The minute you receive a Notice of Default, you have to move fast to find a solution. There are often solutions but time is short.
Once you receive the Notice of Default, you typically have 90 days to work out repayment. After 90 days, you have about 15 more days before the Trustee Sale but typically it is too late at this point. They will not usually accept payments after the 90 days.
I did hear today also that CitiMortgage is not going to foreclose on any homes for a while. They have committed to work with their borrowers instead of taking their homes. That is great news and I commend CitiMortgage for taking such a bold stand on helping people keep their homes.
The message should have your Name, Phone Number, and Address
I will draw a winner randomly from all received requests.
You must live within driving distance to the Provo Towne Center Mall Theaters and
you are responsible for your own transportation.
If you live outside of Orem, Utah,
you may be responsible to pick up the tickets in Orem
before November 21.
You are under no obligation to attend this event,
participation is voluntary and you assumeany and all risk if you attend.
Time and place many not be substituted
I reserve the right to cancel this drawing or change the rules at my own discretion
The message should have your Name, Phone Number, and Address
I will draw a winner randomly from all received requests.
You must live within driving distance to the Provo Towne Center Mall Theaters and
you are responsible for your own transportation.
If you live outside of Orem, Utah,
you may be responsible to pick up the tickets in Orem
before November 21.
You are under no obligation to attend this event,
participation is voluntary and you assumeany and all risk if you attend.
Time and place many not be substituted
I reserve the right to cancel this drawing or change the rules at my own discretion
The message should have your Name, Phone Number, and Address
I will draw a winner randomly from all received requests.
You must live within driving distance to the Provo Towne Center Mall Theaters and
you are responsible for your own transportation.
If you live outside of Orem, Utah,
you may be responsible to pick up the tickets in Orem
before November 21.
You are under no obligation to attend this event,
participation is voluntary and you assumeany and all risk if you attend.
Time and place many not be substituted
I reserve the right to cancel this drawing or change the rules at my own discretion
Foreclosures are up across the country. Utah usually ranks higher than average in foreclosure rates. At this time, we have moved closer to the bottom. That is good news. That means that the rest of the country is experiencing higher foreclosure rates than normal but Utah’s rate has remained steady. This shows that we are not being affected by the same problems plaguing the rest of the nation. While I am not saying that we are doing well in foreclosure rates, I believe our problems are based on some other phenomenon than the current “mortgage crisis”.
However, I am concerned with the way people react when they do receive that “Notice of Default”. Too many people do not realize they still have options and give up. They start packing up and walk away without trying to keep their home. This is a mistake. Many homeowners do not have to lose their homes just because they have received a Notice of Default.
Having a foreclosure on your credit report can be devastating. It takes years to repair. If you can successfully sell your home before the bank takes it over, you can save yourself years of touble and heartache. Once you have received the Notice of Default, you typically have about 90 days to remedy the situation. Banks are foreclosing so many homes at this time that you may have even more time to find an better solution than foreclosure. Options may include selling the home, short sale, defer payments, etc.
If you have received a Notice of Default, don’t waste time. Call a professional and find out what your options are. I would be happy to offer any suggestions and help you get in contact with those that may be able to help. Feel free to call me.
The message should have your Name, Phone Number, and Address
I will draw a winner randomly from all received requests.
You must live within driving distance to the Provo Towne Center Mall Theaters and
you are responsible for your own transportation.
If you live outside of Orem, Utah,
you may be responsible to pick up the tickets in Orem
before November 21.
You are under no obligation to attend this event,
participation is voluntary and you assumeany and all risk if you attend.
Time and place many not be substituted
I reserve the right to cancel this drawing or change the rules at my own discretion
I am concerned with a few points in the new Real Estate Purchase Contract (REPC). The new REPC has taken away any warranties from the seller concerning the condition of the house. This puts all the burden on the buyer to evaluate and inspect the property before the Buyer Due Diligence Deadline. BUYER BEWARE is Utah’s new policy.
I think that this is going to be as bad for the seller as it is for the buyer. It is my experience that buyer’s remorse is real and once under contract, more buyers than you would realize, start second guessing their decision and begin looking for a way to get out.
So, buyers now have until the Buyer’s Due Diligence Deadline to do all the evaluation and inspections they can to determine if their large investment is a sound one. Not the end of the world but it was comforting to know in the old REPC that the seller was responsible to make sure the roof and foundation did not leak or that the furnace did not have a cracked combustion chamber, etc.
The reason this becomes a problem for the seller is that the new REPC also has a Financing Deadline. If the buyer is not happy with the terms of the loan, they can back out and keep the earnest money. This deadline is almost always going to be after the Buyer Due Diligence Deadline. The intended purpose of this new Financing Deadline is a good idea but I see it being abused by ”less than honest” people that will use it to back out for reasons that have nothing to do with the intended purpose of this clause. For the point of this post, I believe it will be used to back out for the due diligence reasons.
For instance, the ”Buyer’s Due Diligence Deadline is Nov 7 but the buyer’s inspector for some reason suddenly cannot do the inspection until Nov 6. They ask the seller for an extention of the deadline so they will have time to evaluate the results and negotiate any repairs with the seller. The seller does not get back to the buyer in time which means the buyer must cancel the contract or waive their inspection rights, the buyer does not want to cancel so they move forward. They find out that the furnace combustion chamber is cracked but their due diligence deadline is gone. They no longer have the right to negotiate the replacement of the furnace, so, they say that they do not like the terms of the financing…even though backing out has nothing to do with the financing terms.
The solution, I believe, is that sellers should start having their homes inspected once they decide to put it up for sale. It has typically been the buyer’s responsibility to hire and pay the inspector. Now, if the seller gets an inspection up front, they can disclose any findings to buyers, saving the buyer time they can use to negotiate which things should be fixed, making them more comfortable with the investment, making it less likely for them to back out later.
It would be even better if the seller repaired any problems the inspector finds in the beginning. In a market like ours, this could make your home much more attractive to one that has not been inspected, leaving the buyer to feel apprehensive. In a Seller’s Market, this strategy may not be necessary, but when your home is faced with tough competition, this could give you an edge. Also, once under contract, it could help you get to closing when the new REPC seems to be stacked in the buyer’s favor.
Below are the results from a Multiple Listing Service search. I wanted to demonstrate what is happening in Orem, Ut to home prices. I know the media makes it sound like home prices are falling so buyers are out there making offers $40,000-$100,000 below listed price. I asked the MLS to search for ALL “sold” listings in Orem in the last 30 days. The first bar of this report shows the criteria I put in for the search.The list price is the first thing shown on the top left corner of each individual report. The actual sold price is on the right, approx even with the top of each picture. For example, the first home that sold was listed at $149.000 and it sold for $149,000. The other information is irrelevant for this post. There were a few good buys but overall, the sold price is not much lower than the listed price. I hope this information helps.
Listings: 36
Residential Client Report
Date: 11/04/2008 05:17 PM
State:Ut Status:SLD Prop Type:Single Family Num Days Back:30 City:Orem
Features & Info: Outdoor Lighting, Patio Covered /
Inclusions:
Remarks: Here’s a deal!! .38 acres, corner lot, huge, oversized double garage and workshop. Cute rambler with 10′ ceilings, covered patio, concrete root cellar/bomb shelter. Excellent NE Orem location (east of State Street). The lot alone is worth $149,000!
Information deemed reliable but not guaranteed. Buyer to verify all information.
Inclusions: Microwave, Range, Satellite Dish, Swing Set, TV Antenna, Water Soft Own
Remarks: BRING ALL OFFERS! PRICE REDUCED $23,000! All New in 2004! New Carpet, Tile, Bathrooms, Paint, Siding, & part of Roof. This home is in Great condition & the sellers are ready to move! New driveway in October! Tons of storage.
Information deemed reliable but not guaranteed. Buyer to verify all information.
Tot Sq Ft: 1312 Tot Beds: 3 Tot Baths: 1.00 Family Rms: 1 Fireplace: 1 Gar|Port: 2 | 0
Yr Built: 1950 Taxes: $807 Acres: 0.16 HOA Fee: $0 Under Cnst: No Fin Bsmnt: 0%
Exterior: Brick
Lot Facts: Fenced Part, Sprinkler, Auto-Full, Terrain,Flat, View, Mtn
Features & Info: Patio /
Inclusions: Range, Range Hood
Remarks: GREAT LOCATION!! Home is in great shape has a huge 2 car garage. Neighborhood is great and you are next to everything. Home is vacant easy to show. You have to come through great home for 1st time home buyers or great investment property. Seller motivated
Information deemed reliable but not guaranteed. Buyer to verify all information.
Remarks: Cute newly remodeled home in a great neigborhood. Beautiful refinished hardwood floors, new tile in bathroom, and new two tone paint in entire house. Amazing backyard overlooking Utah Lake!!
Information deemed reliable but not guaranteed. Buyer to verify all information.
Features & Info: Awnings, Out Bldgs, Patio, Sliding Glass, Storm Windows / Dishwasher, Disposal, Oven-Wall, Range-Countertop
Inclusions: Ceiling Fan, Range, Range Hood, TV Antenna
Remarks: Good home in desireable Orem area. Great back yard w/ 2 driveways and carport plus garage. Lots of storage. On street of more expensive homes. Nice views. Agent related to seller.
Information deemed reliable but not guaranteed. Buyer to verify all information.
Tot Sq Ft: 2556 Tot Beds: 5 Tot Baths: 3.00 Family Rms: 1 Fireplace: 0 Gar|Port: 2 | 0
Yr Built: 1947 Taxes: $1,016 Acres: 0.29 HOA Fee: $0 Under Cnst: No Fin Bsmnt: 95%
Exterior: Aluminum/Vinyl, Brick
Lot Facts: Corner Lot, Curb & Gutter, Fenced Part, Sidewalks
Features & Info: Awnings, Porch Open / Dishwasher, Disposal, Master Bath
Inclusions: Ceiling Fan, Range, Range Hood
Remarks: Great value! Wonderful quiet neighborhood, Check out square footage & acreage and conpare to any property in the area. Please call to get in and see the property. House has a combination keybox. Please walk in and see the house.
Information deemed reliable but not guaranteed. Buyer to verify all information.
Tot Sq Ft: 1690 Tot Beds: 3 Tot Baths: 3.00 Family Rms: 2 Fireplace: 0 Gar|Port: 1 | 0
Yr Built: 1997 Taxes: $789 Acres: 0.02 HOA Fee: $99 Under Cnst: No Fin Bsmnt: 0%
Exterior: Stone, Stucco
Lot Facts: Fenced Part, Secluded Yard, Sprinkler - Auto-Part
Features & Info: Double Pane, Patio, Sliding Glass / Closet-Walk-In, Dishwasher, Disposal, Master Bath, Range Oven Free Std.
Inclusions: Ceiling Fan, Microwave, Range, Water Soft Own, Window Covers
Remarks: OFFER FAILED-MUST SELL!Fantastic 3 bedroom townhome in Country Woods. Close to Utah Valley University with great freeway access. All the necessary amenities: exercise room, playground,basketball courts.
Information deemed reliable but not guaranteed. Buyer to verify all information.
Inclusions: Ceiling Fan, Range, Range Hood, Window Covers, Wood Stove
Remarks: Need to Sell! Great 4 car workshop, Amazing Landscaped Yard with fireplace & BBQ on patio. Beautiful View of Mt. Timp. From Sun Porch, Large Family Room, Hardwood Floors under caret in LR & BR. 10 Day Sales Event Oct. 10-19!
Information deemed reliable but not guaranteed. Buyer to verify all information.
Features & Info: Patio / Disposal, Range Oven Free Std.
Inclusions: Ceiling Fan, Fireplace Equipment, Fireplace Insert, Range
Remarks: starter home in great location among bigger houses. near rec center, high school and elem school. Walk to store. new carpets and paint. fenced yard. recently new roof and furnace. sf ft from county web site records.
Information deemed reliable but not guaranteed. Buyer to verify all information.
Tot Sq Ft: 1698 Tot Beds: 4 Tot Baths: 3.00 Family Rms: 1 Fireplace: 1 Gar|Port: 2 | 0
Yr Built: 1978 Taxes: $1 Acres: 0.20 HOA Fee: $0 Under Cnst: No Fin Bsmnt: 100%
Exterior: Aluminum/Vinyl, Brick, Composition
Lot Facts: Curb & Gutter, Fenced Part, Paved Road, Secluded Yard, Sidewalks, Sprinkler, Auto-Full, Terrain,Flat, View, Lake
Features & Info: Deck / French Doors, Range Oven Free Std.
Inclusions: Range, Range Hood, Refrigerator, Window Covers
Remarks: Wonderful private backyard-sprinkler system and trex decks. Neutral and waiting for your decorative flair!Great neighborhood. Refrigerator included/Well maintained. Call for extras info.
Information deemed reliable but not guaranteed. Buyer to verify all information.
Remarks: Beautiful back yard w/landscape curbing! Well maintained! Central air, master bath, range & refrigerator, 2 fireplaces, large family room, wet bar & storage room! Convenient to schools & shopping! This home is just waiting for you and your family!
Information deemed reliable but not guaranteed. Buyer to verify all information.
Remarks: Brand new inside w/gorgeous hardwood, central air, new bathrooms. Huge dining room addition. Outside entrance to bsmnt room- perfect for salon/dark room/ office. Many possibilities. S/F from county. Buyer to verify all info.
Information deemed reliable but not guaranteed. Buyer to verify all information.
Features & Info: Double Pane, Patio / Closet-Walk-In, Den/Office, Dishwasher, Disposal, Gas Log, Jetted Tub, Master Bath, Range Oven Built In, Range-Gas, Vaulted Ceilings
Remarks: HUGE PRICE REDUCTION to sell quickly. Come now and see this beautifully updated home. Located on quiet cul-de-sac. Fantastic views of Timp through huge picture windows. All new carpet and paint - move in ready - great schools and neighbors.
Information deemed reliable but not guaranteed. Buyer to verify all information.
Remarks: EXCELLENT 12 x 20 SHOP WITH 220 POWER & A/C. HARDWOOD FLOORS. Home is in excellent showing condition! PRICED TO SELL IN A HURRY! BB to verify all info, sq ft as per county.
Information deemed reliable but not guaranteed. Buyer to verify all information.
Remarks: PRICE REDUCED SELLER NEEDS IT SOLD NOW!!! SQFT & ALL INFO TO BE VERIFIED BY BUYER*FANTASTIC END UNIT BY OPEN GREEN SPACE*NEAR LIBRARY,SENIOR CENTER,SHOPPING, REC-CENTER*MAIN FLOOR LIVING*LOTS OF STORAGE*BACKYARD W/ COVERED PATIO*NEW VYNAL FENCE*QUIET AREA
Information deemed reliable but not guaranteed. Buyer to verify all information.
Remarks: Classic 2 story with great floor plan. Bonus room above garage can be bedroom/office den. Home theater in bsmnt w/semi-stadium seating. Fully fenced private yard w/storage shed. Buyer to verify all.
Information deemed reliable but not guaranteed. Buyer to verify all information.
Remarks: Separate entrance to the basement through the garage is perfect for a business, salon, or mother-in-law apartment. Granite countertops and other upgrades, RV pad and awesome backyard with multiple concrete paths, south facing cul-de-sac lot, three patios.
Information deemed reliable but not guaranteed. Buyer to verify all information.
Remarks: Charming patio, gorgeous back yard, gorgeous kitchen w/granite counter tops, Travertine back splash, new hickory hardwood flooring & new sliding door to patio! New carpet & paint, 2 large family rooms. One of Orem’s most desireable locations.
Information deemed reliable but not guaranteed. Buyer to verify all information.
Features & Info: Bay/Box Windows, Entry(Foyer) / Closet-Walk-In, Dishwasher, Disposal, Formal Dining, French Doors, Master Bath, Range Oven Free Std.
Inclusions: Range, Range Hood
Remarks: Lots of home for the money. Includes a three car garage with extra depth and RV parking. Nice area. Close to schools. Home needs some repairs.
Information deemed reliable but not guaranteed. Buyer to verify all information.
Features & Info: Deck Covered, Double Pane, Entry(Foyer), Out Bldgs, Patio, Porch Open / Closet-Walk-In, Dishwasher, Gas Log, Master Bath, Range Oven Free Std.
Remarks: Terrific home in central location, walk to public schools including UVU. Spacious room sizes, built by Jensen Bros., built-in cabinetry, remodeled & updated interior/exterior, tall basement ceilings, heat from gas furnace in floor, lg lot w/ mature trees.
Information deemed reliable but not guaranteed. Buyer to verify all information.