I hate banks.  The first time this realization hit me was when, newly graduated from UC Berkeley with a degree in architecture, newly employed by an architectural firm, I asked my bank to give me a loan for a new car.  “Nope,” they said.  Wait a minute, now they had my trust account since I was born.  Granted, it had been spent on my education, as it was meant to be.  But here I have a fine education, a job in the field, and I can’t get a loan.  “But I have a job,” I cried.  Apparently I hadn’t had it long enough.  “But you had my money for years!”  Right, but there wasn’t much of it left.  I left in a huff, went to a different bank, and got the loan.  WHICH I paid off on time, I might add.  So there.  I swore I would never do business with that bank again, which I never did, until years later it bought out the bank where I had my new account.  So I switched again, and it bought that bank, too.  I’ve given up.

Anyway, when real estate hit the skids a few years ago, the banks were so unwilling to listen to people in dire straits.  “Nope,” they said.  “You can’t pay, we can’t help you.”  When the numbers of people unable to meet their obligations swelled, they finally began to bend a little.  When the accounts of the bank started looking funky due to all the defaults and foreclosures, they created “Loss Mitigation” departments.  Big of them.

Short sales were a nightmare.  The seller had to secure an offer, then turn to the bank and say, “Will you accept this?”  Then came a long, arduous process and an interminable wait while the bank decided IF they could get more if they took the home at foreclosure and resold it themselves as an REO (Real Estate Owned, or bank-owned in common parlance).  Jeez Louise, they couldn’t have made it any worse if they tried.

Meanwhile, they were selling their already-foreclosed properties in competition with the embattled seller, forcing the prices down. 

I’m glad to report they have seen the light.  You can now sell a short sale in about the same time as an REO.  All the rules of an REO apply to the short sale:  The bank makes all the rules.  Whatever the bank says, goes.  If you don’t like it, you can lump it.  The bank is always right.  You can’t talk to the bank, you can only submit information over the computer.  If you submit information, the bank will demand it five more times.  If you don’t submit all the information immediately upon request, the bank will trash the entire file.

Ah, customer service at its finest.  And whatever happened to the toasters they used to give out when you opened an account?

The good news is short sales and REOs are just about the same now, so if you’re a seller upside down in your home, don’t panic.  If you ‘re a buyer, don’t limit yourself to the REOs.  Look at short sales, too.  Make sure you’re working with a good REALTOR™ and all will be well.

Whoa, doggies!  It's a beautiful day in the neighborhood.  Sunny skies, soft warm breeze, blossoms abounding. Hardly the day to be inside at a computer, so I'll keep this short.

I wanted to discuss with you the pros and cons of buying a bank-owned property, or an REO as it's known in the real estate world.

 The good news is you won't have to wait forever to get an answer on an offer, as is currently the situation when you want a house selling in a short sale (meaning the sellers owe more on the property than they will realize on a sale). 

The bad news is that selling owner-bank calls all the shots.  They operate on a nation-wide platform, and largely disregard the normal "rules of the road" for each state.

The sales are almost always "as is" and it's impossible to negotiate with them.  The transactions are set up so it goes computer to computer.  Oftentimes the listing agent will not even have a phone number with which to reach their contact person.  Wild, isn't it?

And finally, if the transaction goes south, chances are you won't want to sue the bank.  They appear to have deeper pockets than we do, especially when we're paying the tab to bail them out!  (Okay, enough pointed political jabs.)

However, if you are willing to be patient and understand the limitations of this type of purchase, there are some really excellent homes waiting for a new owner.  Might one of them be yours?  Call me at 831.801.5110 and let's see!

Whoa, doggies!

For the past 12 plus years, I have written a weekly real estate column for the Pinnacles Newspaper.  I have lasted through seven editors, three owners and boom and bust real estate markets.  A couple years ago I syndicated throughout the central coast of California. 

I developed as a writer over this time.  My first columns, in retrospect, were contrivedly clever.   Then I found my voice and began to truly write.  I wrote about the joy and sorrow of being a Realtor.  I wrote about the way real estate was truly conducted. I let the outsider behind the curtain with my fellow wizard Realtors.  And I wrote about the misconception people had.  I explained most Realtors were hard-working, ethical people who cared about their clients and the quality of their work.

I wrote about contracts and contingencies, mortgages and mud, buildings and bugs.  I scribbled about real estate markets and marvels as I traveled.  I wrote about triumphs and tragedies.

I began to wander off, expanding a "real estate column" into a forum for writing about whatever I felt mattered, and my editors and publishers were kind enough to allow me that freedom.

Now I feel compelled to write to a larger audience, on a greater variety of topics.  I want to reach more people.  And so I've chosen a blog as my medium.

Look for words on a regular basis, but look to ideas behind the words for the true value of my writing.

It's a good life.