Los Angeles Short Sale Assistance Center helping the homeless

October 8, 2011 By Jimmy Bayan

As the holiday season approaches, I’m reminded how fortunate and blessed my family and me are to be healthy and to have a roof over our head. Over the last few years, I have become more involved in service to others, particularly to those that are less fortunate. The ability to help others is so incredibly gratifying, that I never have reservations about sharing that with anyone. Just imagine, if everyone were to do just a few hours of service in his or her community every week, what a vastly different place the world would be. While working at Wells Fargo, a few years ago, I was introduced to Los Angeles Mission, located in Skid Row. I helped serve Thanksgiving dinner a few years in a row and I was hooked. Los Angeles Mission serves nearly 2000 meals daily. Just imagine how difficult that must be with rising food costs and staggering unemployment.

But they can’t do it alone and they need our help. Los Angeles Short Sale Assistance Center has partnered with Los Angeles Mission during the holidays to bring in donations for food, clothing and household essentials. Some of the items they have requested are: Clothing, coats (slightly worn is OK), socks, toothpaste, coffee, sugar etc. Socks are an item which is greatly needed. Just imagine, if you were serving nearly two thousand meals a day, what would it take to run a kitchen with that great a demand? To schedule a pick up or to get more information – just call 323-445-2674, or just email me at jimmy.bayan@gmail.com and I will let you know how you can jump into service for this worthy cause. You can go directly to Los Angeles Mission located at 5th and Wall Streets, just let them know we sent you and they will take your donations with a huge thanks. Remember, never allow yourself to think that just one coat wouldn’t make a huge difference. If you were to donate one coat, that’s one person that would be warm tonight, that necessarily wouldn’t be without your help. The drive runs from October 10th, 2011 to December 15th, 2011. I thank you in advance for your gallant efforts in this fight against homelessness.

 

Sincerely

Jimmy Bayan

 

 

Filed Under: Blog

10 Reasons Why Short Sales Fail

October 4, 2011 By Jimmy Bayan

Many Short Sales Fail at the Approval Stages

No buyer wants a short sale to fail, but there are needed steps a buyer can take upfront to prevent failure.

 

How can a short sale fail? There are so many ways that I needed to put them down on paper. The last thing you want to do is go into an escrow for 60-90 days, and not get an approval. It’s pretty common short sale transactions don’t close, but it’s normally due to inexperience on the agents part.

But many short sales DO close. I’d guess that more close than not- roughly 60% successfully close. Remember, the clock is ticking in these transactions, so the success is mostly due to the experience of the agent and submitting a complete package to the lender in a timely manner. Your odds of closing a short sale greatly increase in direct proportion to the number of successful closings handled by the listing agent.

That’s not to say that a novice agent can’t handle a short sale, but short sale agents often learn from their mistakes. An inexperienced short sale agent might not have faced some of the problems inherent in short sales nor have access to a quick solution, which could cause your short sale to fail.

So what can go wrong? What can make a short sale fail? After you’ve sat around biting your nails waiting months for short sale approval and you almost completely given up, take a look at : Top 10 reasons a short sale will fail

 

#1) Short Sales Fail Due to Unreasonable Second Lenders

 

  • First lender might not agree to meet the second lender’s demand.
  • A third lender might refuse to play ball at all.
  • Some second lenders push sellers to commit mortgage fraud, which could could happen if the lender demands a payment outside of the HUD-1.

 

#2) Short Sales Fail Because the Home is Vacant

Many lenders require that the home be occupied. They may go so far as to insist that the seller move back in, and many sellers cannot afford to do so. You will have a better chance of closing your short sale if the seller lives in the property.

 

#3) Short Sales Fail Due to Demands for Seller Contributions

Banks demand seller contributions all the time, even if the seller has no money and no assets. The bank might insist that the seller kick in cash or sign an interest-free, long-term promissory note.

 

#4) Short Sales Fail Because of Deficiency Verbiage

Many states allow deficiency judgment when lenders take a short payoff, regardless of whether the financing is purchase money or a hard money loan. Not every lender will agree to remove deficiency verbiage from a short sale approval letter. Even in situations that are exempt from deficiencies, doing a short sale might change or alter the sellers’ exemption.

 

#5) Short Sales Fail Because PSAs Prefer Foreclosure

It’s possible that the servicing guidelines might not contain any provisions for a short sale. In that event, the short sale will not be granted, even though it may have appeared all along that the bank would approve the short sale. In addition, some pooling servicing agreements make more money if the home goes to foreclosure due to incentives in the guidelines.

 

#6) Short Sales Fail Due to Tax Liens, UCC Filings and Judgments

A quick check of the public records would disclose liens filed against the home or the seller, but few buyers order a title check until they get short sale approval. Some types of liens will follow the seller even after a foreclosure and will require payment before the short sale can close. Generally, banks will not pay those liens.

 

#7) Short Sales Fail Because Bank Offers Loan Modification

I’ve had sellers call me up in the middle of a short sale to say the bank, which had previously refused to offer them a loan modification, now wants to give the sellers an incredible repayment plan that the sellers can afford to pay.

 

#8) Short Sales Fail Because Home is Vandalized

Vacant homes can be sitting ducks for thieves. Water pipes can break and flood the home. Lightning can strike it and burn the home to the ground. But more often than not, thieves break in, steal the appliances and rip out copper. Banks often will not pay for repairs.

 

#9) Short Sales Fail Because Sellers Get a Job

Some short sales can take so long to get approved that eventually the seller will find a job. Once employed and earning a good income, the seller may no longer qualify for the short sale.

 

#10) Short Sales Fail Because Not Every Fee is Approved for Payment

The buyer might need a credit toward closing costs and the bank might refuse to pay it. Buyer’s closing costs can amount to 3% of the sales price, almost as much as the minimum down payment for an FHA loan. If the homeowner’s association dues are in arrears, a bank might refuse to pay those fees, among other charges.

 

Filed Under: Blog

New Listing-Downtown Condo $129,900

October 3, 2011 By Jimmy Bayan

 

 

FHA Approved complex ! Charming One Bedroom and one bath condominium In La Fayette Park Tower! Spacious Living Room With Cozy Fireplace. Balcony off living room. Open Kitchen,  Dishwasher & Cooktop. Central location close to the 101, 10 and 110 freeways.  Low HOD’s. Building has pool, spa, gym, and execise room. Has Rooftop pool with BBQ and party room.

This is a short sale and all terms & conditions are subject to lender approval. Property sold as-is condition, no credit for repairs, no home warranty. Lender may or may not pay for termite, 9a and retrofit. Sale and gross condition subject to lender approval & the amount or method by which the compensation offered through the MLS will be reduced if lender reduces the gross commission. Any reduction in gross commission will be split 50/50. DO NOT disturb tenants. Only showing will be October 8, 2011. Time will be announced. No offers will be considered until after showing

 

 

 

 

 

 
Filed Under: Blog