Terrylynn’s Real Estate Blog

Do you view your credit with contempt or respect?

This economy has taken it’s toll… It’s an interesting time.  Years ago, a poor credit score, a bankruptcy or foreclosure made it virtually impossible to  find a place to rent.  These days a short sale, foreclosure and/or bankruptcy are common place as are low credit scores.  People in those positions do need quality rental housing.

As a Realtor who manages rental properties for clients we analyze the credit scores, bankruptcy, short sale and foreclosure issues with an open mind.   After all, bad things happen to good people.  It’s what they do with that adversity that makes the difference, the Credit report tells the story.

Simply put the credit before the “bad” thing and after the “bad” thing tell the story.  Have you had responsible credit history and a timeline when a job loss or health issue happened with a period of late payments, collections, etc?  That is a story of a responsible person that had a hard time and for a period lapsed and the credit before and after the event is exemplary.  I always ask prospective tenants if they have anything to explain to me so that they might have the opportunity to explain whatever I might find when I run the credit report.  Many will tell me their stories before I have to find out, taking responsibility and tell how they plan to handle it in the future.  After all the landlord’s major worry, and my responsibility is, to assist them in finding the right tenant who will take care of their property as well as pay the rent so that they can keep up with their mortgage and taxes and keep their own credit clean. 

Contempt, blame and it’s always something being done to me, we stay away from those tenants.  Those who blame the current economy but have a credit history of late payments and collections before and after “bad” things that may have happened, now that’s another story.  Curious to me are people who default on their student loans and utilities, phone, and minor bills.  The justification that allows people to default on these type things change how I view that prospect.  If you won’t pay your utilities, will you pay your rent?  I’m not sure.  If you can’t or won’t pay a student loan (generally very low monthly payments tailored to your situation) what happens with our rent?  If you won’t pay the small dentist or doctor bills, when they were there for you when you needed them, will you pay the rent when the landlord needs to pay their mortgage?  I’ve seen a collection account for less than $200, $100 or even $25… what makes that ok?  Most medical and dental bills can be paid in small increments if needed.

Last and most absurd are the prospects who, when asked why they are moving, tell you how horrible their landlord is and all the stories about the awful property they are living in.  I stay VERY far away from those tenhants.  Investigate of course, but generally stay away from the “blame person”.

How you view your credit, with contempt or respect, makes a difference and it shows on your credit report. 

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DRE #615420

- Terrylynn has been a Realtor in Contra Costa County for over 32 years.  She works with Diablo Realty in Walnut Creek and is consistently a top producer.  Terrylynn is a local expert, please contact her for any Real Estate needs, or with a question about the area.  Visit www.BuyStageSell.com to learn more about Terrylynn and her team of Real Estate Professionals and Staging Professionals, and how their award winning results can earn you more equity $$$ when you sell a home.  We even stage our short sales! Why?  Because it works. 

Landlords why don’t you ask me about your tenants?  I am always curious why landlords don’t check references.  I always call the previous landlord and the one before that, when screening tenants for a rental property.  I am curious as to the reason the tenant’s are moving, what rent they are paying, how long they’ve been there and if there have been any issues with pets (they apply saying no pets often and then Fido pops up when they’ve moved in) or neighborhood complaints.

Why do I ask, well mainly most people are honest and tell the truth but there are some that will stretch the truth and some that will really SSTTRREETTCCHH the truth.  SO actually I am verifying their story.  Remember my recent post about how people treat their credit and how that can determine whether they get into another rental or not?  http://activerain.com/blogsview/1415172/choosing-a-tenant-do-you-view-your-credit-with-contempt-or-respect-  Well there is often a theme and those who are fudging are often uncovered when references are checked, particularly past landlords. 

What do I say to the past landlord?  I appeal to the fact that if they called me for a reference I would give them a very truthful reference, even if I wanted that tenant gone…because I would feel obliged to let anyone know the type of issues we’ve had with a particular tenant if we have.  And I would hope for the same from them, landlords, property managers need to stick together and be honest with each other about their experiences. 

In general, all of our tenants are good, hardworking people who pay their rent ontime.  But that occasional person(s)…for example:  The landlord who took the 3 people who stiffed the 4th roommate and just disappeared on a week’s notice, never called for a reference.  What would I have said?  They were chronicly late, we had problems with cars and they did not keep up the yards.  Would I want to know that when I rent?  YES.  Why didn’t you (the new landlord or property manager) want to know that?  You will likely end up having the same issue months from now?  Aren’t you wondering why they moved on a weekend before Christmas?  They didn’t have a reference when they came to me, they were living with their parents…I’ve had tenants before that were living at home to save money and were very responsible people.  Sometimes it just doesn’t work out.

Some tenant want a “fresh” start. They have a pastor, teacher or other references.  They move in and when they have something come up, the excuses are incredible!!! These are all true and too real to make up.

“My son is in jail and I have to bail him out”,

“We are getting married and need the money for the wedding.”

“My motorcycle crashed and I need to get it fixed.”

“I had to take a trip and don’t have any money left.”

“”My roommates just moved out without any notice and I don’t have the money.”

One tenant used to have a chronic health issue and every month it was something, he was borrowing from friends, family, coworkers (apparently) and had surgery again and again.  His mother died (how many times?), etc.  Then I would be out and about and see him around town walking around just fine.  Oh MY. The landlord didn’t call for a reference when he moved either owing about $3000 in back rent!!! 

What they are thinking is that the landlord is such a good person that he’ll not mind a late charge and credit ding because you went on a trip.  That’s right, they’ll feel they should help you get your son out of jail.  NOT.  The landlord is not your parent.  They don’t feel it necessary to fund your wedding or trips.  Responsible behavior would dictate that you never even ask.  You know your responsibility and you do what is expected. 

I guess the point is that if we property managers, landlords understand that the landlord or property manager calling us could be us and we just want the “facts mam”, we would tell them what they needed to know.  IF they took the tenant anyway, well then they knew what they were getting and could perhaps mitigage some future problems with clauses in the lease.  BUT to consider it “buyer beware” just seems unethical to me.  DO UNTO OTHERS.  And I could save you some angst if you called and asked before you say yes to that tenant.  You’d know you are getting one of the best tenants we’ve ever had or a chronic blamer, late payer or deadbeat.  It’s all just a phone call away. 

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DRE #615420

- Terrylynn has been a Realtor in Contra Costa County for over 32 years.  She works with Diablo Realty in Walnut Creek and is consistently a top producer.  Terrylynn is a local expert, please contact her for any Real Estate needs, or with a question about the area.  Visit www.BuyStageSell.com to learn more about Terrylynn and her team of Real Estate Professionals and Staging Professionals, and how their award winning results can earn you more equity $$$ when you sell a home.  We even stage our short sales! Why?  Because it works. 

5513 Kirkwood Drive in Concord, California

$2,000/month for rent, 2,200 deposit. No smoking, no pets.

3 bedrooms, 2 baths, double garage, inside laundry room, tile entry and kitchen. Living room and family room, brand new kitchen with cherry cabinets, stainless steel appliances, granite & more. Living room has high ceiling and fireplace. Formal dining and breaktfast room. Located on bus line. Assigned schools are Ayers Elementary, Diablo View Middle and Clayton Valley High. Please check with the school district for more information and availability.

For more information contact Property Management Alternatives
              925.876.0966         925.876.0966               925.876.0966         925.876.0966

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DRE #615420

- Terrylynn has been a Realtor in Contra Costa County for over 32 years.  She works with Diablo Realty in Walnut Creek and is consistently a top producer.  Terrylynn is a local expert, please contact her for any Real Estate needs, or with a question about the area.  Visit www.BuyStageSell.com to learn more about Terrylynn and her team of Real Estate Professionals and Staging Professionals, and how their award winning results can earn you more equity $$$ when you sell a home.  We even stage our short sales! Why?  Because it works.

The Bureau of Census (HousingMatrix.com) reports surge in home sales

Existing home sales surged for the third month in a row, September, October and November 2009…rising 7.4% in the number of sales.  November saw the largest gain since February 2007 and home resales are 44.1% above a year ago!!!   More than half of allsales were first time buyers.  The record low prices, great interest rates and Tax Incentives were guessed to be the primary reasons for the surge. 

By region the changes in units sold November over October were as follows

Northeast 6/6%
Midwest 8.4%
South 4/.8%
West 10.6 %

Inventory is short in supply with supply and demand more balanced.  In some areas, like California where we are reporting, there is a serious shortage of supply causing multiple offers on anything under $500,000 in the San Francisco East Bay area.  This starts to increase prices as credits asked for by buyers are dwindling.  Appraisals tend to follow the REO and Short Sale market though, so perhaps the prices will not rise as quickly as a market not dealing with those challenges.  All and all, at least in the West, we are feeling as though the 2010 market will be better for sellers, tougher for buyers, and for those that want something before the April 30^th deadline for the tax credit, it may take 5-15 offers to secure a property, so get your Realtor now and get started on that house hunt. 

City of Concord, California
Phone 925 671 3341
Website www.cityofconcord.org/living/housing

 First time home buyers program

Eligible = low and moderate income (sometimes payments will be about what you pay in rent).

Type of loan, deferred payments and shared appreciation of loan (meaning when you buy you have a partner helping you buy your home and when you sell the partner shares in the profit).

Maximum loan $15000 to $25,000 or 20% of the purchase price, (some restricitions apply)

This allows people without a down payment to get a home with a more affordable payment

The loan term 45 years or due upon sale of the property

Interest rate 0  – that’s right a NO interest loan.  WOW, the City is serious about helping people afford homes.  For the other criteria and restrictions and availability of funds, call or go to the website.  Sometimes the funds run out early in the year, sometimes they have funds a lot longer. 

Worth checking into.

The wild west of Real Estate

December 17, 2009 (Ris Media reports)

“Treasury department recently released guidelines and forms for it’s new Home Affordable Foreclosure Alternatives Program (HAFA).  Homes Affordable Modification Program (HAMP) provides incentives for a short sale (SS it’s about time)…deed-in-lieu (DIL) used to avoid foreclosure on an eligible loan.”

Terryynn -

The new guidelines are a streamline process to stem the rising tide of foreclosures.  WOW…at last.  Those of us working in short sales know that it can take 45 to 60 day or 6-12 months to get a short sale approved.  What’s the difference?  The lender, the paperwork jungle required and then lost and updated and lost and updated… I personally have a short sale going on 7 months and it does look like it might close before the end of the month…whew…I’ll let you know on that one.  I’m not counting on anything until I see the deed and keys.

BUT it looks like serious efforts are going to be made to put a badly needed system to the process.  It will allow a pre-short sale approval!!! YES!!!  Most lenders just say “bring us an offer and we’ll let you know”.  A recent short sale I have had listed since August,  immediately had two offers that walked away tired of waiting for the cumbersome process.  Today we have another offer, much lower than the first two that it would have benefited the lender by $20,000 over the current offer.  We’ll see how long before I can get an answer. 

Another important provision requires borrowers to be fully released from future liability for the first mortgage debt.  That is a big deal as some of the lenders are still trying to play both sides in their negotiation.

Financial incentives will help.  $1500 for borrower relocation assistance; $1000 for servicers to cover processing; and up to $1000 for investors for allowing a total of $3000 in short sale proceeds to be distributed to the subordinate lien holders.  I wonder the affect, will the second lenders now up their requirement to sign off on the short sale?  We’ll have to wait and see.

All in all, regulation is needed, hopefully this new beaurcracy will assist and give relief at last that realtors know has been missing.  It’s basically been the wild west of real estate and we need John Wayne to come and rescue us.  Will this be it?  Hopefully so.

Staging-It’s all in the Details.

It’s always interesting to watch a rehab and staging of a property.  The work is done, it’s beautifully neutral and a blank slate for the staging crew to make magnificent.  You begin to put in the furniture and the rooms fill with promise.  Then you look around and it’s all still a bit bland. 

In the staging team it is not unusual to have one of the team who gets the BIG picture, others  get the details.  Have a great team that combines those and you end up with phenomenal staging.  When we walked into this living room after staging, it looked oh so nice, but it needed just a little something to tie it all together.  And little it was, but the result was finished. 

What do you think?  Show us some of your DETAILS!!!  (The frosting on the cake, the finishing touch.  Clayton, California Property listed the week of 12-09-09.. We’ll let you know when it sells.) 

Added the oranges to the bowl of natural items to pick up the color of the pillows and the picture. 

The candles themselves were a little stark.  Warmth was added by the holly.

Capped off the pears with a little nature…nuts in the shells from outside the house, frames them perfectly!

No, it’s not Tahoe. 

It’s Concord, Clayton, California on December  8, 9, 2009

Magical, and long lasting …our golden hills look marvelous with a coat of snow.  Normally (the few times it has snowed here)  it melts in a couple of hours, it lasted a couple of days.  Breathtaking and with luck stayed over Wednesday, which is grandpa day for 4 of our 5 grandchildren.  The kids rewarded grandpa with a couple of snowballs.

Oakhurst golf course

Mt. Diablo from the end of Mt Rushmore culdesac greenbelt in Dana Hills

Mt. Diablo foothills from the window of property at Mt Rushmore Court, Clayton

Mt. Diablo

The best thing about snow – Kids playing in it!

No, it’s not Tahoe. 

It’s Concord, Clayton, California on December  8, 9, 2009

Magical, and long lasting …our golden hills look marvelous with a coat of snow.  Normally (the few times it has snowed here)  it melts in a couple of hours, it lasted a couple of days.  Breathtaking and with luck stayed over Wednesday, which is grandpa day for 4 of our 5 grandchildren.  The kids rewarded grandpa with a couple of snowballs.

Oakhurst golf course

Mt. Diablo from the end of Mt Rushmore culdesac greenbelt in Dana Hills

Mt. Diablo foothills from the window of property at Mt Rushmore Court, Clayton

Mt. Diablo

The best thing about snow – Kids playing in it!