There are times in any business where one must laugh at some of the antics that go on behind the scenes, some of the unprofessional things others in the business do and say. We have all been there, no matter in which field you work….I am sure you can conjure up a few times you were left scratching your head over something a colleague did. The real estate industry is no exception, and in fact I think there is even more room for inexcusable behavior because most agents are independent contractors and do not have anyone looking over their shoulder most of the time.

Listing agents have been made fun of in other blogs for lack of proper grammar, spelling errors, and all kinds of other things. I have to admit despite my shock at the lack of editing, I do find these blogs humorous (albeit sadly so). But there are a few things that REALLY make me question some agents’ professional goals. Here are the top 5 on my list:

1.  Listing a property and being unresponsive. If you list a home, obviously the seller thought highly enough of you to give you the listing…so now you actually have to do some work! Placing a listing on the MLS is an open invitation to people to ask questions. If you are not going to make yourself available to do so, than what are you doing listing homes?! This is one of my biggest frustrations, and I have had to tell many clients, “the listing agent has not returned my calls/emails.” I had one agent just last month who didn’t respond to calls, emails and texts about a property for almost a week! My client finally then wrote an offer, only to be rejected because another had come in during the noncommunicative time. This is not right, folks.

2.  Copying information from similar listings without verification. As agents are aware, when a buyer purchases a home there is a period of due diligence, where the buyer conducts inspections and investigates the property to her/his satisfaction. However, when you are inputting a listing to the MLS, it is so important to get the information right. If you find another similar property in the neighborhood and merely copy that information into your listing, you could be providing false information to buyers. Even though they have time to discover this, doesn’t it make more sense to get it right from the start, so as to avoid wasting anyone’s time, including yours and your seller’s?

3.  Directing agents to a website to book an appointment. In this day and age we are so technologically savvy, and I love that, BUT…real estate is still and will always be a business about people. We are not selling widgets, we are selling more than just a home – we are selling a lifestyle. The more personable and friendly you are, the better it is for everyone. If you want to have your showings scheduled via a website, fine. But I have 2 caveats: make sure the website works properly, AND provide a phone number where the agent/consumer can reach a live individual with questions!

4.  Limiting the method of communication with the listing agent.  I agree that there are times when a quick question can be addressed via email, but there are times when I like to speak with the agent, so I can get a feel as to how the agent works and ask multiple questions, especially if the property is a distressed property. An agent should NEVER limit the means of communication between other agents who may have interested clients with valid questions, as this is doing a disservice to your sellers.

5.  Placing viewing restrictions on the property. I understand there are times when some viewing restrictions must be imposed, such as in the case of tenants, a family with a baby or very young children, unfriendly pets or perhaps a homeowner who works at night and sleeps during the day. But if you want to get the home sold you have to coach your clients about being as flexible as possible. Putting a home on the market and telling agents it is a “drive by only, then submit offer in order to view property” is plain ridiculous and a waste of everyone’s time. Similarly, if you do not plan on letting people in the home, for pete’s sake have your sellers fill out a Instruction to Exclude the Listing from the MLS until it is ready to be viewed, and then place it live! Do what you can do to make the property as accessible as possible.

The real estate industry is not only consumer-centric, but is based on good old-fashioned principles of cooperation. If you want to represent your sellers to the best of your abilities, you and your listing need to be as accessible as possible.

In case you haven’t been following the news lately, there is a lot of real estate-related news making headlines right now. Here are some of the big stories:

1.  Underwater homeowner refinancing to include non-Fannie and Freddie backed loans? Many people are aware that the new version of HARP will reach out to help homeowners who are underwater (see the previous blog), but still many more have been asking whether they will be able to seek similar refinancing possibilities if they do NOT have a loan backed by Fannie and Freddie. There have been rumblings about this, and last week I saw a few articles on this topic. HARP2, which is expected to roll out in a few weeks, is expected to open up the refinancing option to many homeowners who are underwater. Once that ball gets rolling, look for more information on applying similar relief to those who are underwater but do not have loans backed by Fannie and Freddie. This could change the housing situation and prevent many future foreclosures.

2. Home purchasing is the most affordable in decades. According to an article published last week by CNN, the National Association of Home Builders/Wells Fargo Housing Opportunity Index, housing price declines and low mortgage rates have created a rare opportunity for those who earn national median salaries – 75.9% of all new and existing homes for sale fell within that affordability range during the last quarter of 2011. The number has not been this high in the 20 year history of the index. Of course, whether one can afford a home versus whether one can actually buy one are not one and the same – obtaining loans are still tricky for many borrowers.

3. Distressed inventory is keeping California home prices low. Despite the increase in housing inventory last month, prices in California remain low due to the number of distressed inventory on the market, according to the California Association of Realtors. The Association reported that the median price of a single family detached home dropped 6.7% in January from December, and that compared to January of 2011, the median dropped 3.9%. With inventory rising and heading into the Spring sales season, it will be interesting to see what happens to prices, as some areas seem to be on the upswing.

4. Delinquency rate is dropping (but is that telling?). The rate of delinquencies has been dropping, as reported by the Mortgage Bankers Association, and is currently at only 7.6% of all mortgages. Still, about 44% of all homes in the U.S. are currently in foreclosure proceedings, which doesn’t really make the first figure sound too promising. Although California is ahead in clearing it’s backlog of distressed inventory quicker than many other states, now that the robo signing lawsuits have been settled we may see more properties go into foreclosure – a large percentage of these were waiting in the wings while the settlements were being negotiated. Also, we need to factor in HARP2, which will come into play in a few weeks – this could also have a big effect on preventing foreclosures, especially if the administration extends it to non-Fannie and Freddie backed loans, as planned. So, stay tuned – it will be an interesting year for distressed inventory.

5.  Property valuation fraud increases. The recently released Mortgage Fraud Risk Report indicated that property valuation fraud increased 8% in the fourth quarter of 2011. Arizona was ranked the riskiest state for fraud, with Nevada in close second. California ranked fourth. The report studies four specific types of fraud risk: property valuation, occupancy, identity and employment/income.

One of the biggest problems with the state of housing ownership is that one in four homeowners in the U.S. are underwater, meaning that they owe more on their mortgage than the current market value of their homes. In many situations this leads to foreclosure or other options like short sales or deeds in lieu of foreclosure. But what about the homeowners who are not delinquent, have been making their payments, maintaining their credit and doing the right thing, despite the drastic drop in value of their homes? Help is on the way…

The new HARP2 (Home Affordable Refinance Program, version 2) debuts March 15. This new revised version of the program hints at helping those who could not qualify under the original program because they were not delinquent. Here are the differences:

Proposed program: The new HARP guidelines, which will be released next month and have been extended until December 31, 2013, will enable underwater homeowners who are not delinquent to refinance their homes. This program will allow refinances, like HARP,  for underwater homeowner regardless of whether your loan is with Fannie or Freddie. Here are the requirements:

1. Loans must be current, with a good 12 month payment history – no late payments in the last 6 months and only one is allowed in the last 12 months

2. Loan to value limits will be eliminated, so homeowners will be able to refinance regardless of how far the values of their homes have dropped (under the current HARP, the loan to value limit was set at 125%, so many homeowners did not qualify).

3.  No appraisals or underwriting will be required, making the refinancing process easier. There will likely be a home inspection, just to make sure the home is in decent condition, but not a formal appraisal.

4.  The loan must be backed by either Fannie Mae or Freddie Mac. To find out if your loan qualifies, you can visit http://www.fanniemae.com/loanlookup/ and http://www.freddiemac.com/corporate/.

There has been some talk of a similar program to HARP that will help those who do not have loans backed by Fannie or Freddie. Hopefully in the future we will see such a program.

The new HARP will undoubtedly help many people stuck in that gray area – where they are not delinquent but feel trapped under a mortgage that exceeds current value and an interest rate that is much higher than current rates. Contact your mortgage broker to discuss whether you can qualify for the new HARP. For more information on HARP, go to http://www.makinghomeaffordable.gov or call (888) 995-HOPE (the number for HopeNow, a government-sponsored counseling organization that is a wonderful resource).

If you have ever considered a short sale, or would like to learn more about how they work, I have the seminar for you…and it’s free! Shortsaleopedia and I have collaborated to hold monthly seminars to help homeowners in San Diego, and the first one is this Wednesday, February 15, from 6:00-8:00 p.m. at the Encinitas Community Center in Encinitas.

I have put together a phenomenal panel of experts – from real estate and credit attorneys to a CPA, short sale bank negotiator, mortgage professional, escrow and title professionals and of course Realtors who specialize and are trained in short sales. We will teach you all about the intricacies and ramifications (legal, credit and tax) of short sales, programs that may be available to help you, and how current and upcoming laws could make your sale easier or more challenging.

Please join me and my wonderful expert panel this Wednesday. You can sign up here: http://shortsaleopedia.com/events/event/event-expert-panel-san-diego-az-2012-02-15/. The Community Center is located at 1140 Oakcrest Park Drive in Encinitas. If you are investigating options for distressed property, this event will be valuable.

Well, as surprised as I am, Chase has been kicked from the number one spot on my least favorite short sale lender list (but it is still a close second), making room for the new #1: Wells Fargo.

I work with many short sale buyers and sellers – some say I’m nuts to do so, but I think that you have to embrace reality, so that is what I do. I also thoroughly enjoy getting these sales closed, because it feels so good to accomplish a difficult task AND to know that I helped someone.

Along with working short sales comes frustration, mostly where the lenders are concerned. As a short sale agent, I and others keep hoping that one of these days these sales will become more uniform, easier to work and quicker. But, alas, sometimes they seem to be getting more challenging. The latest news is important for anyone who holds a loan with Wells Fargo, OR if Wells Fargo is the investor on your loan. Now this latter part is key, because some people have no idea who the investor (the one who actually holds the note) is on their loan(s).

Wells Fargo recently decided, in all it’s wisdom, to require agents to submit short sale offers 30 days prior to the auction date. This was not made public. While there could still be a chance that an offer submitted sooner might get approved for short sale, I implore you to not risk it. Wells sold a short sale listing of mine at auction this week, despite the fact that we had a well qualified buyer and had submitted a contract.

Please do not let this happen to you. It is a terrible feeling, and I am disgusted with Wells Fargo – so much so that I am considering pulling all my accounts with them. I have banked there for many years, but this leaves a very nasty taste in my mouth. While other lenders are trying to embrace short sales, Wells gets the stick for being uncooperative, uncaring, and plain ridiculous.

With short sale lenders constantly changing rules, it is very difficult to keep track of everything. If you are considering a short sale, make sure you find out who your investor is, as it is often not the same as the service provider.

Short sales are everywhere, and they are not going away. I am always surprised to hear agents say they won’t list or show short sales to their clients, because not only do I think that is a disservice in our industry, but also because I think closing a short sale is one of the most rewarding experiences, and no one – not buyer, seller or agent – is left without a sense of gratitude.

Short sales are scary to many folks because there are no consistent guidelines on how to sell or buy them. Lenders have different policies and deadlines, different systems. But despite the craziness, short sales are not unlike any other challenge that is worthwhile – you just have to know the basics, have an open mind and creative thought process,  and keep one step ahead of the lender and their negotiators.  Here are some basics on how to win with short sales.

1.  Get educated. You need to understand how a short sale works and what is expected of you – no matter whether you are a buyer, seller or agent. Sellers must first educate themselves on all possible options, and understand the ramifications of short sales compared to other options. Don’t ever go into a short sale without learning about the process. Buyers also need to understand the process and be committed to a possible long road to closing.

Similarly, agents who list or sell short sales need to learn how they work, understand timelines and different lender requirements.  For example, Wells Fargo is now denying auction postponements on short sales unless an offer is submitted at least 30 days prior to the auction date. If you are a listing agent and take a short sale with a Wells lien without knowing that, you could be wasting your time, as well as that of the seller and buyer.

2.  Know the law, regulations, and stay on top of changes. It is imperative to understand the laws – both federal and state – and how they apply to distressed properties. You need to understand legal, tax and credit implications. States often have different regulations and programs designed to assist short sellers too, so you definitely need to be well informed. Most importantly, stay on top of things, because they are constantly changing. Distressed property law and regulations are an alphabet soup – HAFA, HARP, HAMP…you need to keep learning.

3.  It takes a village. Short sale acceptance often requires teamwork. Attorneys, tax professionals, negotiators, title and escrow people, debt counselors, and an agent who not only understands the short sale process, but who can be the conductor by keeping the team on track and focused.

4.  Be persistent and bold. The banks will tell you what they want, but you need to be able to negotiate. You must be persistent and not be afraid to push back. It helps to work with a skilled independent negotiator. Short sales are not for the lazy or timid. But don’t let them scare you.

You CAN win with short sales – you just have to know what you are getting into, set expectations correctly, stay educated, and be on top of the situation from the beginning to closing. In the process you will find that helping a seller avoid foreclosure and a buyer to get a great property for a great price, is extremely rewarding.

Do you have questions about short sales? I am the host for monthly short sale seminars sponsored by Shortsaleopedia. The next seminar is Wednesday, February 15, 2012, from 6:00-8:00 at the Encinitas Community Center. You will learn everything you need to know about short sales from a panel of experts – legal, financial, title and escrow officers, short sale negotiators… bring your questions! To sign up click here.

In the states that allow it, dual agency (where the agent/broker represents both the buyer and seller in a single transaction) is something many agents may welcome when they list a property…  after all, it makes for a double paycheck. But is it truly advantageous to the buyer and seller to work with the same agent, and what are the potential legal ramifications in doing so?

All agents have a fiduciary duty to their clients. This means that we have a duty to act in the best interests of every client.  As a listing agent the duty is to market the client’s home in the best way possible, and to negotiate the best price possible for the client. The agent is normally privy to quite a bit of information, such as the lowest price a seller will accept for the sale of his property, or financial information that explains why the seller cannot pay for repairs.

A buyer’s agent also is privy to information about the buyer, such as the buyer’s bottom line as to how much they will or can afford to pay for the home, or what they may need to ask of the seller to make the sale come to fruition.

An agent who represents both sides of a home sale will undoubtedly possess information that could be conflicting when it comes to negotiating price or repair issues. How then does the agent properly represent both parties? In a lawsuit an attorney cannot represent both the plaintiff and the defendant—clearly it would be impossible to act in the best interests of both parties. So what makes a real estate transaction any different, and what are the legal ramifications of dual agency should something go wrong?

Although states like California require paperwork acknowledging dual agency (and the potential for such) for every sale, the potential for liability down the road still exists. If an agent is found to have breached his fiduciary duty to the client the contract can be rescinded, the parties restored to their positions before entering into the contract (including returning all deposits to the buyer), and the home can be returned to the seller. Any commissions paid to the agent/broker can be ordered returned, and if the party she represented suffered damages the brokerage or agent can be help monetarily responsible for those damages.

Dual agency disclosures are not completely fool-proof in preventing a lawsuit. This is an issue that has drawn much debate from brokers, attorneys and others in the industry. It is something we need to continue to explore and be aware of within the real estate industry.

Are you thinking about short selling your home? Are you underwater (owe more on your mortgage than the current market value of your home)? If you have ever or are considering a short sale, your days are numbered.

The Mortgage Forgiveness Debt Relief Act, that wonderful little piece of legislation passed in 2007 to protect those who short sale from being liable for the capital gains taxes (taxes on the difference between what you sell your home for and what you actually owe), expires on December 31, 2012. For the last several years, most homeowners who have short sold their properties have escaped this tax due to the act.

If you are considering a short sale this year, you need to get your home SOLD before December 31, or the IRS will require the debt be reported as general income. As an example, if you owe $300,000 on your mortgage, but short sell your home for it’s current $250,000 market value (where the lender forgives the difference), after December 31 you will be liable to pay taxes on the $50,000 difference. At a marginal tax rate of 36%, this would equate to $18,000 in taxes.

There are the requirements for the debt relief law to apply:

1. The home you are short selling must be your principal residence, it cannot be a vacation home or investment property

2. Debt ceiling is $2,000,000 (or $1,000,000 if married and filing separately)

3. The law does not apply to a HELOC which was used to pay off debt or as cash-out

Will the act be extended? Of course this is a possibility, but there have been no public discussions as of yet. Taking into consideration that this is also an election year it could either become a big deal or be swept under the rug, as politicians choose to deal with other issues. Regardless, this is not the time to take a chance.

If you are considering a short sale you need to look into the facts now, because as we all know: procrastination gets you nowhere.

If you are looking for a home that is bright, clean, close to the beach and has been recently upgraded to the hilt, I have the home for you! My new listing at 1477 Sapphire Drive in Carlsbad is in the wonderful gated community of Mar Brisa, just moments from the beach, dining, shopping, walking trails and in the wonderful Carlsbad school district.

Here are some of the amenities this home offers:

•4 bedroom plus optional bedroom downstairs (or den/office), 2336 square feet, great floorplan

•  Granite kitchen counters

•  New Travertine flooring downstairs with decorative inlays

•  New custom stone floor-to-ceiling fireplace in family room

•  New hardwood flooring in master bedroom – which has ocean peek-a-boo views and plenty of closet space

•  New carpeting upstairs

•  Surround sound system downstairs with recessed speakers, and the family room is wired for Apple TV

•  3 car garage with built-in storage

• Private, nicely landscaped backyard with fire pit

• Newer kitchen appliances, and refrigerator, washer and dryer convey with sale

• Gated community with community pool, two spas, tot lot and exercise lot

If you would like to schedule a showing for this home, please call me at 760-310-9466. For more information and to view more photos and see the virtual tour, please click here.