1st answer, Short Sales are long, in terms of time. The bank is involved because the amount of money owed on the property is less than or short of the market value. A seller can’t sell with enough in the house to pay off his debt and closing costs. In lieu of the below process, a seller engages with bank and tries to sell at a lesser amount with the bank’s agreement. It takes time! 3, 6, 9 months.

2nd answer, REO is an ancronym for Real Estate Owned, in other words, Bank Owned. I’d say REAL EQUITY OPPORTUNITY. I smile. And you get what you pay for. In the REO case you don’t get something important when you pay. In a traditional real estate sale the seller is obligated to DISCLOSE THEIR FANNY OFF. They have forms to talk about everything from the skunk that visits the basement regularly to whether someone died or the tub overflowed 3 years ago. You get absolutely no disclosures re: experiences the past owner had with the property. It’s a blind date gone straight to marriage. Investigate the heck out of that property when you preview it.

RealtyTrac summarized the Fore-closure process nicely. What’s next is from them.
Get a grasp of the terms and process. Then call me if you’re interested in buying one today. 310.200.4614 Renee Ferjo

Overview

Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process begins when a borrower/owner defaults on loan payments and the lender files a public default notice. The foreclosure process can end one of four ways:

1. The borrower/owner pays off the default amount to reinstate the loan during a grace period known as pre-foreclosure.
2. The borrower/owner sells the property to a third party during pre-foreclosure, allowing the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history.
3. A third party buys the property at a public auction at the end of the pre-foreclosure period.
4. The lender takes ownership of the property, usually with the intent to re-sell. The lender can take ownership through an agreement with the borrower/owner during pre-foreclosure or by buying back the property at the public auction.

Foreclosure Buying Opportunities
The foreclosure process offers three bargain-buying opportunities, represented by six different property statuses on RealtyTrac.

1. Buying during pre-foreclosure (NOD, LIS)
2. Buying at public auction (NTS, NFS)
3. Buying bank-owned properties (REO, GOV)

California Overview

Judicial Non-Judicial Process Period Sale Publication Redemption Period Sale/NTS
Yes Yes 117 Days 21 Days 365* Days Trustee

Pre-foreclosure Period

Court foreclosures only occur if a lender desires a deficiency judgment. This process gives a borrower up to one year to redeem the property after the foreclosure sale. It is recommended that the borrower find a way to resolve it, or get some foreclosure assistance.

In almost all cases, foreclosures are handled out of court. The process begins when a lender files a notice of default with the county recorder identifying the default amount and the date the borrower must pay off the default. The notice is mailed to the borrower and other affected parties.

Up to five business days before the trustee sale, the borrower may pay off the default plus any applicable costs of foreclosure and stop foreclosure. Three months after the notice of default is filed, the lender can schedule a trustee’s sale of the property.

Notice Of Sale / Auction

At least 20 days before the trustee’s sale, the notice of sale must be posted on the property and in one local public location. The notice is also published once a week for three weeks in a local newspaper, starting at least 20 days before the sale date. The notice is mailed to the borrower at least 20 days before the sale and to anyone who requests the notice. The notice must contain the date, time, and location of the sale, the property address, and the trustee’s contact information. In addition, the notice of sale must be recorded with the county recorder at least 14 days before the sale.

The trustee’s sale is a public auction and the property is sold to the winning bidder. The trustee may require bidders to pay the full bid amount in cash or cashier’s check. Anyone may bid at the sale, including the lender and any junior lien holders. A trustee’s sale may be postponed by announcement at the sale. If a sale is postponed more than three times, a new notice of sale must be issued.

After the sale is complete, the trustee transfers ownership to the winning bidder. The borrower does not have the right to redeem the property after the sale.

* Judicial Foreclosures Only

Sunset over Paseo Del Mar by Renee Ferjo

Paseo Del Mar in beautiful south San Pedro never disappoints me when I need some bigger than life inspiration. I snapped this sunset just 3 days ago.

When prospective buyers ask “Why buy in San Pedro?” I give them a tour of the sites, sounds and inspiration of Paseo Del Mar. Then I point to the most reasonable cliffside property in all of Southern California; the 3 adjacent communities of South Shores (to the west), Palisades (center) and Pt. Fermin (south). Today’s highlight: South Shores.
I was born in 1966 and have been raised in this San Pedro. My folks are still in their original house and they retell their house hunting. At that time in the early 60s South Shores was well under development with the track homes and unique mix you see today. But, very few Pedrans wanted to live there! Why, “too damn windy.” I’m quoting my dad. Pneumonia Hill is what they call it. So what if you had a view, the threat poised by every Yugoslav or Italian aunt was to lie on your back, plugged nose to toe staring at the view of the ceiling. “Get out of the wind, you’ll catch a cold!”
Flash forward to 2009. Ocean views!! ocean views! let’s live and die by ocean views. How we do change. Now, please click on thumbnail below for a readable size.

South Shores Homes For Sale vs Sold Dec 07 to Dec 08

And now for Dec. 08.
The meat of the markt moves in the mid 600s. The average sold house in Dec. 08 sold For $691,000 vs. ahem, $907,000 1 year prior same month. Again Ocean View, sizable square footage, quiet neighborhoods and access to coastline trails if you're into that or you can brag about that for your tree huggin friends.
To be specific, here's the figures on 6 South Shores homes which sold in Dec. 08.
3 bed/2 bath 1,580' $599,000 sold no ocean view
same 1,319' $602,000 sold same
same 1,560' $620,000 sold same
3 bed/2bath 1,920' $665,000 sold panoramic ocean view, please update-me house
2 bed/2 bath 1,970' $825,000 sold panoramic ocean view
4 bed/3 bath 2,120' $835,000 sold ocean view, cul de sac and pool! wow.

If a buyer can swing the high 6's or 7's and wants a great neighborhood with that ocean view
South Shores is that nieghborhood.
Homes Available as of Jan.24, 2009

Bed/Bath Square Footage Price Notes
3/2 1,476' $625,000 Short Sale fun
3/2 2,088' $639,000 harbor, city, mountain views
3/2 1,553' $725,000 ready for a price reduction
3/2 1,707' $799,900 new and panoramic view
4/2 2,041' $892,500 ocean view
6/5 4,014'! $1,289,000 huge! beautiful
3/2 1,960' $1,999,000 exquisite view. amazing

If you want to buy a new home or invest and in South San Pedro. Do call me up 310.200.4614.
Would love to discuss it. And here's a bonus rant for you.

My Rant
Patience was most needed for sellers not willing to come out of the gate with a price that would draw qualified buyers in for multiple offers. Yes, that still happens. In Dec. of 07 the 2 houses that sold went into escrow in 22 days. It took the 6 sellers that sold in Dec. of 08 an average of 148 Days on Market to get them into escrow.

Like bees to honey is a right selling price. I don't mince words about this with my sellers. Flush your equity down the drain in a down market by stumbling at pricing at that elusive market value. We just dropped $216,000 average between Dec. 07 and Dec. 08. If you really must sell today, how can you blunder with a stupid price? If your agent coddles you and doesn't get to the truth, you will chase that price down, down, down. I'm passionate on this one. I query to expose. Why does an agent sign up a Seller to sell his house at a lame price? because they don't mind you picking up your underwear daily to have the house show worthy, they know they'll get leads for buyers and it's a marketing expense for them. Okay that rant ended for now.

Where 's the opportunity? South San Pedro and with an agent who lives for getting to the truth! life is just easier that way.
Renee Ferjo
Realtor and Animal Advocate
because everyone needs a home
Keller Williams Palos Verdes Realty - the office
San Pedro - the home
Southern California - the satellite office accessed
cell: 310.200.4614
email: ReneeFerjo@PropportunitiesNOW.com

Today is the Day!

November 20, 2008
Once again, I awoke to a world still here, yet changed. And that’s what I can count on; change. It’s our constant. It’s opportunity fuel. In any economy, there’s only one question: WHERE IS THE OPPORTUNITY?

If you want doom and gloom and complaining and End Of The World chatter, read elsewhere, I can’t stomache the stuff. I’m an Optimistic Realist. I know there’s opportunity, I know better to assume anything, and I know my ability to grab hold of it is all about seeing the opportunity. So I learn every day by really being out in the mix, in property, talking with lots of people and chewing on the statistics of our market.

If you have questions about real estate in the San Pedro and Rancho PV marketplace, email me at ReneeFerjo@PropportunitiesNOW.com I can register you to post on this blog your dazzling questions.

May you have your best day!