The experts in San Diego Real Estate

Okay so you are ready to buy a home. You have searched online and read about homebuyers rebates. Just how do they work? Where are the best rebates found? Well of course my answer may contain bias but I will try to keep that as a minimum.

In California, there are two sides to any real estate transactions that are put on local MLS boards. The listing agent receives a commission from the seller and represents the seller. The seller also offers a commission to the buyers agent in order to incentivize buyers agents to bring clients to the home. Now many of these agencies will give buyers a rebate to buyers that is a portion or percentage of the commission they receive from the seller. G & R Realty is no different. However there are very strict laws set forth by the Department of Real Estate with regards to rebates. Furthermore there can be tax implications regarding the rebate as well.

One way for rebates to be awarded is that the agent representing the buyer may simply send the buyer the rebate after the close of escrow. Again, in a situation such as this, there may indeed be a tax consequence as the brokerage may need to file a 1099 for that rebate. It is never good to mess with the IRS.

 Now the fundamental fact of the matter is that ANYBODY may ask an agent for a rebate. Don’t be shy. I always marvel at how so many people simply do not assert themselves. The fact of the matter is that many agents usually represent friends or family. These friends or family members either are intimidated or don’t want to hurt their friends feelings. This again is so odd to me. Hey if you are buying a 600k home that agent may be getting 18k or more as a commission! Don’t you think you should get some of that? The most successful buyers are the ones who are not timid and who understand that the agent works for them!

 NEVER BE AFRAID TO ASK FOR A REBATE.

It was not long ago that nobody even knew what a short sale was. Furthermore the words trustee sale and REO property were as foreign to local San Diegans as a snowstorm in La jolla. Today that is not the case. More people then ever are literate regarding these topics. So where to start? Let’s talk about the foreclosure process. This will not be a prolonged discussion. I will try to keep it short and sweet. If you have further questions simply email or post and I will try to answer.

 Okay so let’s say you own a home and you cannot afford it anymore. After a few missed payments your lender will file what is called a Notice of Default. This is when the clock starts.

Day 1 - Notice of Default

Within 10 business days - Mail and publish Notice of Default

After 3 months - Set Trustee sale date

25 days before sale date - Send notice of sale to IRS (if necessary)

Within 10 days from 1st publication - Send beneficiary request for property directions

14 days before sale date - Record Notice of Sale

7 days before sale date - If court action, 7 day rule may apply

5 business days before sale date - Expiration of right to re-instate loan

Sale date - Property is sold to highest bidder at public auction. (known as the trustee sale)

Now a trustee sale is unique in the sense that the prices are still so high, even at the trustee sale, that just about every home is going back to the lender. Also the trustee sales are generally a cash deal. They are not the same as these REDC auctions you hear about where you can get financing on the spot. So pretty much all of the properties go back to the lender except a few of them who are purchased by savy investors. Make no mistake, you can get a great deal at a trustee sale but if you are smart you will learn about the process, go downtown and take in a few auctions to see how they work, and do some serious research before actually participating in one. Also you will notice many seasoned experts at these events. Like a good poker game, if you are at a table and you don’t figure out the sucker in a half hour, then you are the sucker. So just going to watch is a great way to learn.

Once the home goes back to the lender at the trustee sale, the lender essentially holds title to the home again. In California the timeline for the home to be vacated by the owners, or by the tenants if the owner was renting the home out is usually 30 days. Once the home is vacant the lender will process that home and eventually will put it on the market. The vast majority of homes that are bank owned eventually make it to the MLS. People think that there are specialized providers of foreclosed properties but that is not true. Yes you can go these sites and pay money but you will find in the end these homes are on the MLS.

Please note this post is speculative in nature and is not in any way, shape or form, legal advice.

Okay let’s talk about foreclosures. One of my favorite sites to visit www.foreclosureforum.com. This website gives statistics about all of the foreclosures that are occurring in San Diego. The site also gives information about notices of default and has some great statistics so you can see just how substantial this problem is right now.

One way to measure where we are at in the current depreciation cycle is to check how the trend is for foreclosures. The magnitude of the foreclosures while interesting is not as useful as the trend. Are we seeing more foreclosures then last year or less? This is what is important. As long as the trend in the number of foreclosures we are seeing is going up, then that is indicative of further stress, growing inventory, and falling prices.

Thanks for visiting my site! Please feel free to participate in my blogs. I will do my best to add interesting topics that will help you all out. It doesn’t matter if you are a buyer or a seller, these are unique times. I do believe that we are in the midst of a depreciation cycle that will be unmatched. I can help both buyers and sellers save thousands, even tens of thousans of dollars in commissions. So lets get started okay?

 Also I check my email ALL THE TIME! Please do not hesitate to contact me if you have any questions, comments or would like me to post about any sort of topic of discussion. My email is adam@1800grrealty.com and my phone number is 858 736 4778.