How would you react if you had a limited amount of funds in the bank to pay for closing costs and then were hit with hundreds of dollars in extra “unexpected” closing costs? This is a problem that the Real Estate Settlement Procedures Act (RESPA) was enacted to eliminate. The goal of RESPA is stop hidden fees and charges by settlement service providers and to stop kickbacks to ensure the integrity of the real estate transaction for the consumer.

In 1974, RESPA was enacted by Congress. Its intent was consumer protection by regulating the disclosure of all costs and business arrangements in a real estate transaction settlement process.

Enforced by the U.S. Department of Housing and Urban Development (HUD), RESPA requires that consumers receive disclosures at various times in the transaction and outlaws “kickbacks” that increase the cost of settlement services.

Specifically, Section 8 of RESPA prohibits a person from giving or accepting a referral fee, kickback, or anything of value in exchange for the referral of settlement-service business.

An example of an illegal “kickback” was when title companies would pay for rounds of golf, provide free administrative services, or sponsor educational classes for Realtors and lenders to encourage referral business.

A common RESPA violation, with direct impediment to consumers, occurred with lenders during the housing boom. Consumers would apply for a loan, receive a Good Faith Estimate providing the cost to obtain that loan, and then, they would go search for a new home. After making an offer on the home, they would get the final loan documents to sign at close of escrow. When they sat down to sign the final loan documents (HUD 1 settlement statement), they were oftentimes surprised to find extra and ambiguous closing costs and fees that had come up during the escrow process, sometimes along with higher interest rates. These fees were added by lenders who lured consumers with promises of low cost loans.

RESPA has done away with many of these types of unsavory business practices, as well as leveled the playing field between lenders and others in the real estate industry.

To help consumers more easily understand settlement costs and prevent big price discrepancies between the preliminary Good Faith Estimate and the HUD-1 settlement statement, HUD has created stricter RESPA laws, which take effect in January 2010. HUD has published a Frequently Asked Questions about RESPA which is a good resource for further information.

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When you open your internet browser window, wouldn’t it be nice to see something useful? Is there a site you visit every time you browse the web? If so, wouldn’t it be helpful to have that set as your home page on your browser? It’s very simple to change and this week’s tech tip is designed to show you how to do that.

Some suggestions of sites that might be relevant to a REALTOR to set as your default home page:

• Your MLS login screen (are you at the computer mostly to check the MLS?)
• GOEBlog.com (new tech tips and escrow posts will automatically appear on your homepage!)
• AgentGenius.com (real estate magazine)
• MyTechOpinion.com (tech magazine for the real estate industry)
• Google.com (the search engine – good one to choose because it loads quickly)
• WSJ.com (leading business and financial news)
• InmanNews.com (real estate news)
• Realtor.org (NAR’s REALTOR site)

First step is to pick a default home page. Select one from the list above or select your own (ANY website will work).

Once you decide what site you want, follow these step by step directions on how to change your default home page to something useful.

Most of our readers are on PC’s and using Internet Explorer, so these directions are geared towards them. If you are on a Mac and in Safari, directions can be found here and if you are using Firefox, you can find directions here.

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Real estate transactions, and the escrow processes that make them happen, sometimes have a level of industry jargon that can be confusing or intimidating to buyers and sellers who aren’t familiar with the meaning behind the words.

This is a definitional post designed to better inform buyers and sellers about the escrow process and the terminology used during the course of a transaction.

Escrow

The escrow procedure, at its core, is where a neutral, trusted third party holds onto an item for sale until something happens, usually until the buyer pays the seller. As real estate transactions have grown in complexity, so has the business of escrow. Now an escrow agent watches over all the details of the sales agreement, facilitates the transaction paperwork, and coordinates the interests of many different parties with an interest in the sale. They also make sure that the seller gets their proceeds, and the buyer gets their title, when all is said and done. For a detailed explanation of escrow, see this earlier post.

Deed of Trust

In many states, including California, this document takes the place of a mortgage. The Deed of Trust places a property’s title in the hands of a Trustee, usually a title company, along with the specifics of the buyer’s loan and repayment provisions. If the owner defaults on the loan, the Trustee has the legal right to foreclose, and give the lender the proceeds. When the loan is paid off, the Trustee reconveys the title to the owner.

Lien

This is a legal claim on a property by someone the owner owes money to. In real estate transactions, the lender will attach a lien to the property title, saying any money from sale of the property will first be used to pay off the loan.

Prorations

In a real estate deal, the escrow agent will need to figure out the buyer’s and seller’s portions of expenses that get paid according to a certain date – eg taxes, interest or utility bills. The agent will pro-rate the expense, doing the arithmetic based on the transaction’s closing date.

Grant Deed

This is the actual document of the real estate sale. It states that the seller, or Grantor, is selling the property to the buyer, or Grantee. It states the specifics of the property, and that the seller has revealed any liens or encumbrances. The Grant Deed is usually notarized and recorded.

HUD-1 Statement

This is the Department of Housing and Urban Development’s official settlement form, used in most real estate transactions to detail exactly what settlement costs occur in the sale, and whether the buyer or the seller is paying them. You get this form at or shortly before the closing. It represents a complete accounting of every cost of the transaction.

Title Insurance

This is an insurance policy for buyers that protects them against unanticipated defects in the property title. These could be anything from hidden liens, ex-spouses, unrevealed heirs, or recording errors, to forgery. Title insurance policies carry different specifics and exceptions, so examine yours carefully.

Additional terminology will be defined in future posts. If you have a term you would like clarified or defined, leave us a note in the comments section of this post.

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I love Posterous. It’s my new favorite must-have application for the modern Realtor. If you are a Realtor, and you want to have a personalized, real time web presence for your real estate business, but don’t know how to get started, Posterous is your solution. Before I get into why, let me introduce what Posterous is.

Posterous describes itself as “The dead simple place to post anything.” By creating a Posterous account, you instantly create a web presence for yourself that lets you post anything to it – photos, articles, videos, MP3’s, files (such as word documents, pdf’s, etc). There is no easier way to create a blog for yourself and your real estate business (if you’d like some background as to why this might be valuable for your real estate business, check out my earlier posts on social media, web 2.o, and social networking for real estate). And posting is EASY, making Posterous the most attractive blogging option to the novice user, while still being an outstanding and powerful resource for the techiest of agents.

Why do I love Posterous so?

First: It’s easy. It’s simple. (You can do this. Really. You Can.)

If you can email, you can use Posterous. In its simplest form, all you have to do is email whatever you want to post to post@posterous.com, and it is done. Doesn’t get much easier than that.

Simply tell Posterous what your email account is, and it will know that when you send an email to them, the content is to appear on your Posterous blog. And, if you have multiple email accounts (for example, a brokerage account, a personal account, a gmail account, etc.) you can tell Posterous all your email addresses and it will post to your site no matter which email account you send from.

In addition, there are multiple ways to update your Posterous site from both your PDA cell phone and from your computer. This makes Posterous easy to use whether you are in the office checking out the MLS, or out in the field working an open house or showing property. Here are the options for how to update your Posterous Page:

1. From your PDA cell phone:

• Email whatever you want to post to Posterous and it will automatically post to your site.
• Text in your post via SMS (maximum post size is 110 characters…even a busy Realtor can manage that!)
• PicPosterous: If you have an iPhone, you can download the free PicPosterous application which further simplifies the process of posting photos to your site, and organizes the pictures on the site into photo-galleries allowing the user to preview multiple thumbnail images and select the one they want to view larger (see an example on my site here).

2. From your computer:

• At your Posterous.com website: Simply create a new post and type in what you want to say.
• From your email: Email whatever you want (including file attachments) to Posterous and it will post to your site.
• Use the Posterous Bookmarklet: This is a Posterous application that will let you grab photos, video, audio and text right out of the web pages you’re looking at, comment, and post it to your posterous blog.

Second: Posterous looks good.

Social media is really a brand building opportunity for Realtors. And, part of that opportunity is the visual design of how you are represented online. Posterous has a simple, elegant, and clean design that is professional and will display you and your content in an attractive manner that is good for your business image.

Third: It’s Free.

There is no charge to use Posterous. By creating a Posterous account, you create a free website for yourself. And everyone like free, right?! Over time, Posterous will be adding premium features, but they state in their FAQ “…there will always be a useful free version you can use.”

Fourth: It’s branded to you.

When you sign up for a Posterous account, you will select a vanity URL that can be branded to you. So, for example, my Posterous URL is: staceyharmon.posterous.com. Assuming it’s available, you can have YourName.posterous.com or PalmDesertProperties.posterous.com or WhateverYouCallYourBusiness.posterous.com.

Fifth: Posterous integrates with other social media sites.

One of the most powerful features of Posterous is the ability to auto-post to ALL of the social media sites that are most relevant to Realtors, all at the same time. This includes:

• Facebook
• Twitter
• Flickr
• Wordpress
• Blogger

So, for example, if I take a photo of a listing that I am holding open and want to send that to Posterous with a note that says “I’m holding open 123 Main Street from 12-4 today…come on by and say hello!”, I can choose to have that photo and message sent (with one email) to Posterous, and concurrently to Facebook, Twitter, Flickr, and my Wordpress blog. This is powerful and efficient stuff!

How to Use Posterous For Your Real Estate Business:

Posterous is the best way for Realtors to get started in social media and in blogging. The possibilities for using Posterous for your business are only limited by your creativity. The goal is to give people a glimpse inside your life as a working Realtor, in real-time. Here are a few ideas to get you started. At the minimum, your Posterous site is an outstanding place to post photos…of your neighborhood, of your listings, of your life as you experience it (why not post photos of your office, or of your team as they are out showing listings?). Position yourself as a trusted real estate advisor by sharing with people relevant information related to real estate in your market. Post market reports for your farm (simply scan what you get a hard copy of at your sales meeting and email it to Posterous, or post a PDF of one that is emailed to you).

Check out my Posterous account here (which I use primarily as a photo blog site) and then sign up for your own. Give it a try. And let me know what creative ways you come up with to build your real estate business with Posterous. I want to hear your great ideas!

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The Buyer’s Choice Act (AB 957) was established to protect the buyer’s right in an REO transaction in having a choice as to which Escrow Company and Title Company is used. This sounds great, although in many cases it can be a benefit to the buyer to choose the companies that the REO Bank use on a regular basis for the following reasons:

• The REO Banks require the settlement companies to use their online systems (only the companies selected by the REO Banks are given authorization to log onto the online systems) in order to obtain necessary documentation for your transaction. Without access to the online systems there may be delays in the closing process.
• The REO Banks have special internal requirements that must be completed before they can move forward to closing. The Escrow Companies and Title Companies used by the REO Banks know the requirements and are able to provide the seller with the necessary items in advance therefore getting the job done quicker and more efficiently.
• The Title Companies that work with the REO Banks have documentation already in place that is necessary to clear the title on the properties. Using Title Companies that work with the REO Banks creates a much smoother transaction process for you.
• The REO Banks must approve an estimated HUD settlement statement prior to authorizing the close of escrow. In order to accomplish this each REO Bank has special requirements for certain items they need prior to approving said settlement statement. All these items again must be sent to the seller via their online systems. Using the companies that know the REO Bank’s requirements helps to get your transaction completed much quicker and smoother.
• Each REO Bank is different and has different requirements. Using an Escrow Company and Title Company that has experience with that particular Bank’s requirements will inevitably make your transaction smoother.

For further information on the Buyer’s Choice Act you can read the following article: AB 957 “The Buyers Choice Act” Passes

When making your choice or accepting the seller’s choice of escrow or title companies, consider asking the following questions to the prospective companies:

1. Do they retain an Errors & Omissions Insurance Policy and a Fidelity Bond each with a minimum of $2,000,000 which protects your transaction to the fullest value?
2. Do they conduct background checks on all new hires through the Department of Justice including stockholders, officers, directors and managers?
3. Are Potential employees barred if they have drug convictions, moral turpitude or theft of any type on their record?
4. Do they have set minimum financial requirements by their licensing entity?
5. Are their trust funds and processing of files audited by their licensing entity, or in-house auditors and CPA?
6. Are their trust funds balanced every day?
7. Is their computer systems capable of handling the paperless file required for processing an REO transaction?
8. Are they proficient in a variety of REO software platforms?
9. Do they have an extensive back up computer systems, which includes a disaster preparedness plan?
10. Can they handle all transactions in a professional, honest and diligent manner?

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The picture below is a screen shot of multiple comments that were left on a blog post that was promoting a happy hour gathering at a social media conference that happened earlier this year.

Quick, take a look at the image and tell me at first glance which of the people commenting:

1. Did you look at first?
2. Do you think is the most professional?
3. Do you think is the most technically proficient?
4. Seems the most like a real person?
5. Are you most drawn to?

I’m willing to bet that the people who have images next to their comment (me and Hans Ziegenbein) were the answers you gave. If I ask you which people appear to be the least professional and least technically proficient, which would you answer? The one’s without a photo? Probably so. Which camp would you rather be in?

In the post I did last week, I explained what an Avatar is your visual image of yourself online – usually your photo), and how it is an essential consideration of the brand image for any modern Realtor. This post expands upon that and introduce you to Gravatar.com, a service that will make including your avatar in your blog comments, simple and easy. Here is a brief video which clearly explains the service:

As the video mentions, once you sign up for a gravatar account, you can associate ALL the email addresses that you have with your account (your brokerage email, your gmail account, your home account, your college alumni account, etc). And, then when you go to comment on a blog or forum, no matter what email address you use, your photo is automatically included when you make a comment (assuming the site supports gravatars…which many blogs and forums do).

A gravatar is a great way for a Realtor who participates in blog commenting to be positioned with a professional, consistent brand image across many sites. It also centralizes and automates the posting of your photo when you comment on the web. By using a gravatar, you are more effectively branding yourself with the image you choose and you are more likely to be perceived as more professional and technically proficient. So why not continue the brand image you have created off-line to on-line and sign up with Gravatar.com?

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The New Year is here, you are ready to purchase a new home, what’s new?? The biggest and most significant industry change in years, maybe even decades, has come from the US Department of Housing and Urban Development (HUD). HUD has revised the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement to try and make it simpler and easier for the consumer to make responsible and informed decisions before purchasing a home.

As a consumer, most of the changes and revised forms have been made with your best interests in mind. HUD has tried to prepare a simpler more direct way to help you understand your options and fees up front so that you have as much information as early as possible to be able to make the best decision for you and your family. The new rules and forms have been put in place to help provide a loan shopping tool that accurately discloses terms and fees, and prevents last minute changes to either at closing.

In anticipation of the new rules, HUD has released a publication to help guide you, the consumer, through the loan decision process:  Shopping For Your Home Loan: HUD’s Settlement Cost Booklet. Real Estate Settlement Procedures Act (RESPA) requires that loan originators provide consumers with the booklet within three days of a loan application. This booklet, albeit lengthy, provides a basic overview of the home buying and mortgage lending process. It also explains in detail each part of the new GFE and the new HUD-1 Settlement Statement.

The intention of the new GFE is to encourage consumers to shop and compare fees from various lenders before choosing a mortgage. It shows what services are lender chosen (and thus cannot change), and also what services the consumer can go out and shop for. It clearly states important dates, loan terms, and settlement charges should you decide to move forward with the loan.

The new HUD-1 Settlement Statement then allows borrowers to easily compare those quoted fees to their final costs before closing on a loan. A new page has also been added to the HUD-1 Settlement Statement that contains a chart which shows the actual fees charged compared to those fees that were listed on the GFE. The chart identifies charges that should not have increased at all compared to the GFE, those that should not have increased by more than 10% compared to the GFE, and those that can fluctuate.

• Origination charge: cannot increase.
• Transfer taxes: cannot increase.
• Appraisal fees: can only increase up to 10%.
• Government recording fees: can only increase up to 10%.
• Title insurance: can only increase up to 10% if borrower uses the title insurer selected by the lender

It also shows whether the consumer’s monthly payment will increase and, if so, when. This gives the borrower a very clear picture of what the closing expenses will be compared to what was shown on the GFE, so he or she can note any discrepancies and ask about them up front and prior to closing –preventing surprise fees and delays at the time of signing.

With these new tools now available and with a clearer disclosure of fees and terms, hopefully consumers will be able to make informed and responsible decisions that will help them and their families achieve financial success and home ownership.

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Build your online brand with your avatar? Your what? Wondering what an avatar even is? Here is a hint:

Avatar is a fancy word for the small image used to depict your online presence or identity. It is a very important part of any Realtor’s online presence and branding. When you create a profile on a social media website, they often ask you to upload a photo of yourself. This photo is your avatar – most Realtors would think of it as their headshot. But should your avatar be your headshot? Maybe, but maybe not.

Here are some things to consider when choosing your avatar:

• Your avatar sets the tone for who you are. What do you want it to say? It should be a reflection of you. It is the first visual that people generally see of you. Put some thought behind it. Keep in mind that it does play a part in defining your personal brand online. What do you want your personal brand to say?
• Keep in mind that the digital world is generally more casual than the print world in marketing yourself. I suggest portraying a professional, yet approachable image of yourself. It does not need to be of you in business formal attire (of course, it can be).
• The image will most often be presented very small, and cropped to a square. Very frequently the image will be only a ½ inch square. It will often appear as part of a list like this example from Facebook.

• Your avatar should be close up to your face. Because of the small size that most Avatar’s are presented, it is generally best to have the photo be cropped tight.
• It is ok to get creative! Your avatar doesn’t have to be your face (but most Realtors will likely choose this option). Also, think about getting creative with your cropping. You’d be surprised how well you can communicate you with just part of your face. For some additional options check out this Guide To Using Avatars for Online Marketing by Justin Smith of the Real Estate Tomato.

Take a look at the sample avatars at the beginning of this post and a few more below. These are all appropriate guides for Realtors who want to brand themselves online and participate in the social media game. Give your avatar some thought – make sure your photo fits the medium, communicates what you want it to say, and is a reflection of you. It will be good for your brand and your business!

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What is the Statement of Information?

Upon the opening of escrow, Buyers and Sellers receive their initial escrow package – the Statement of Information (also known as the Statement of Identity) is included in this package for completion and return to the escrow holder.

The statement of information is a one page document which requests the party’s name, date of birth, social security number, current and previous addresses etc.

Who requires the Statement of Information?

The Title Company of record requires this completed form to ensure successful and expedient transfer of title. This document assists in eliminating untimely delays in closing of real estate transactions.

How does the Statement of Information work?

The Statement of Identity establishes and confirms identity. Confirming identity will assist the Title Company to eliminate/resolve matters that affect real property such as child support liens, judgments, bankruptcies etc., filed against persons who have the same or similar names.

This is important as such liens and judgments are recorded against real property and against individuals on a daily basis.

Why Should Buyers/Sellers Complete the Statement of Information?

Consider these scenarios:

Scenario #1: Seller is Robert Smith. The title company runs a name check on Robert Smith. Title company finds recorded liens and judgments filed against a Robert Smith that must be paid.

How will title eliminate our Seller, Robert Smith against these potential liens? Title will compare social security numbers, previous address, etc. (as per Statement of Identity) to determine which Robert Smith is liable for payment of said liens/judgments.

As result, our Seller Robert Smith has been eliminated as the potential party owing thousands of dollars due to liens.

Scenario #2: Buyer/Borrower is John Williams. Once again, title runs a name check and discovers that a John Williams has defaulted on his child support payments. Upon further investigation it has been determined that YES this is our Buyer/Borrower. Now escrow has the heads up to advise their Buyer/Borrower to bring his account current and also escrow can then secure an updated statement that will be sufficient for title transfer.

In conclusion:

The title company requires that buyers/borrowers and sellers fill out the Statement of Information to be able to complete their fiduciary duty to return clear title for the real estate transaction. The documents the title company requires comes from the escrow company after it has been completed by the Buyer or Seller, so your Escrow Officer can discuss the Statement of Information with you. Each transaction is case specific. Your Escrow Officer can clarify the points that are needed to finalize the transaction.

If the Statement of Information requirements give you cause for discomfort, talk to your Escrow Officer about the specific needs of your escrow. Your Escrow Officer will be able to explain the Privacy Act Notice with which Glen Oaks Escrow is in compliance.

Interested in what you are reading? To automatically receive these Escrow Tips in your email box, subscribe to these articles at the top right corner of this site (www.GOEBlog.com) in the box titled “Subscribe via Email”.

Google is used by millions of people every day to search for everything, including real estate. The buzz at the recent Inman Connect Conference in New York City, was the importance of search and being found on Google by your potential customers. To help Realtor’s do that, Google has created “Google for Real Estate Professionals”, a special section just for agents looking for the tools and tips to harness real estate search capabilities.  Go to Google.com/realestatetools and there you will find Google’s suggestions for utilizing Google Maps, AdWords and YouTube to connect to your potential customers.

As Google states on the site:

“The majority of home buyers use the Internet to research properties. Google makes it easier for real estate professionals to connect with home buyers and renters at every stage – while they’re looking for properties, checking out locations and selecting their agent. It’s how you reach more sellers, attract more buyers and sell more homes.”

Here is a summary of the real estate lead generation options Google highlights:

• Google Maps puts all parts of the property picture together. It’s a free service and one that makes your listings easier for home buyers to find. Are you uploading your listings to Google? Get more information on how to best do this at Google’s FAQ for Real Estate Agents and Brokers. Also, agents should not overlook services like Real Estate Shows where as part of your membership, you can create a property flyer via a simple, templated process, and have that flyer syndicated not only to Google, but also Trulia, Zillow, and other top listing sites.
• AdWords (Google’s paid search results program, also know as pay per click advertising) provides effective and efficient lead generation for real estate professionals. Set whatever budget you are comfortable with, target your ads by demographics and geography, and reach potential buyers and sellers at the precise moment they are looking for properties or agents.
• YouTube: Are you showcasing your listings in video, on your own branded YouTube channel? YouTube isn’t another TV screen, but a window into your business through which viewers can learn about your properties, your people and your ideas. For real estate professionals, it means your listings can sell themselves and home buyers can do a virtual walk-through of potential homes before they contact you.

The site also provides excellent information about using Google Analytics and Insights for Search. The tutorials are well written and easy to understand.

Learning how to best position yourself and your real estate business on Google is fast becoming the critical business skill of the modern Realtor. Google has just made understanding it all a bit easier for the industry with this portal. It’s worth a look.

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The escrow process can be a complicated and often technical necessity of buying and selling real estate.  The escrow company and its officer have many duties to juggle on behalf of the Realtor, Seller, and Buyer during the real estate transaction.  Understanding the various duties and functions of the escrow can assist all parties in ensuring a successful and timely transaction, as everyone involved has a part to play.

The escrow officer’s main duty is to remain as a neutral third party between buyer and seller in a real estate purchase transaction at all times.  The escrow officer is not to be involved in negotiations between buyer, seller and/or lender.

Additional escrow officer duties and responsibilities are as follows:

1. Receive and hold buyer’s funds in a non interest paying trust account during escrow.
2. Read and comply with all agreements as detailed in the Purchase Contract and Joint Escrow Instructions as it pertains to the escrow process.
3. Follow mutually signed, written instructions agreed upon by buyer and seller during escrow.
4. Prepare Escrow Instructions/General Provisions, Amendments, Grant Deed (for seller’s signature), Estimated Closing Statement and any additional documents required to clear title or as required by the new lender.
5. Although in many cases reports are ordered by the buyer, seller or agents outside of escrow in some cases the escrow officer will obtain reports as required by the purchase contract and provide same to the buyer during escrow for their review.
6. Make sure escrow is in receipt of buyer and seller signatures on Purchase Agreement and Joint Escrow Instructions, Escrow Instructions/General Provisions, Grant Deed, any Amendments, Estimated Closing Statements and any other documents required during escrow.
7. Receive loan documents from the buyer’s new lender (IF APPLICABLE) and prepare amendments and estimated closing statements as required by the lender on their lender’s instructions.
8. Order the evidence of insurance from the buyer insurance agent as per the requirement of the new lender.
9. Send the signed loan documents and all lender required items to the new lender for funding.
10. Send original recordable documents along with any releases required to clear title to the title company for recording at the close of escrow.
11. Make sure that escrow is in receipt of all funds necessary to pay the seller their proceeds as well as all invoices agreed upon by buyer and seller during escrow.
12. Make sure the seller has sufficient equity in the property to cover all costs, payoff of liens and any invoices agreed upon by buyer and seller during the escrow.
13. Make sure that all the proper paperwork is in escrow to provide the buyer with clear title to the property.
14. Make sure that all the conditions agreed upon by the buyer and seller on the purchase agreement and in writing through escrow have been satisfied prior to closing the escrow and transferring the property into the buyer’s name.

The Buyer and Seller should also be aware that they will be receiving many additional items that may require their signatures from their agents and lenders directly.

In addition to the above responsibilities, Glen Oaks Escrow views our most valuable function as acting as a personal liaison and resource for Realtors, Buyers and Sellers to accomplish a successful transaction.

Interested in what you are reading? To automatically receive these Escrow Tips in your email box, subscribe to these articles at the top right corner of this site (www.goeblog.com) in the box titled “Subscribe via Email”.

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Which image is more interesting?

The image on the left is reflective of the default look for a Twitter profile.  It’s not unattractive, but it is also overused, and not customized to the personality or brand of the twitter user.  The image on the right is the exact same Twitter profile – the only difference is that it has a custom background applied to it.  This is a very simple, and free process that any Twitter user can do.

When you are utilizing Twitter for your business, you want to make sure that you project a persona reflective of who you are.  And, when using social media for real estate business purposes, your presence in social communities should reinforce your status as a trusted advisor.  How your Twitter profile looks is an element in that.

I’m going to assume that if you are utilizing Twitter, you have already made sure that your profile is filled out and includes you location, links to a business URL, and you have a bio that mentions your profession and gives some personality insight as to who you are.  Realtor Elaine Hanson (@ElaineHanson on Twitter) provides a great example of this:

With these details in place, the next step is to make sure that your background is also reflective of your professionalism and personality.  There are several great resources out there designed to do just that.  Here are two of my favorite:

1. Twitrounds:  This site offers hundreds of free, beautiful and creative Twitter backgrounds and has a 1 click, automated process for installing your selected background on your twitter profile.  It doesn’t get easier than that!

1. TwitterImage:  Fantastic photographic images as well as creative professional backgrounds can be found here (also for free).  This site does not have an automated installation script like Twitrounds does, so you have to go through the manual process of uplaoding the Twitter background to your profile.  This is a fairly easy process and the site offers a 4 minute video and step by step directions on how to do this here.

In addition to the free Twitter backgrounds that these sites offer, they also both have the option to pay for a customized Twitter background (between $79-$99 per background).  If you want to have a background that is unique to you, this is a very affordable option and a great marketing investment for the Realtor interested in representing their brand on Twitter.

If you install a custom background on your Twitter profile tell us about it by putting a link to your profile in the comments!

If you are unfamiliar with why you might want to use Twitter for real estate, these earlier posts will help to introduce you to Twitter for Realtors:

• What IS Twitter and Should You Be On It?
• Why Twitter and 10 Ways a Realtor Can Use It
• Mobile Twitter Tools for Realtors

Interested in what you are reading? To automatically receive these Tuesday Technology Tips in your email box, subscribe to these articles at the top right corner of this site (www.glenoaksescrow.com) in the box titled “Subscribe via Email”.

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To many Realtors, the concept of using video in their business is limited to the use of a virtual tour to market their listings.  But, the technology of today busts the door wide open for agents to incorporate video into their business like never before.  And, video is powerful stuff.  Take a look at this video by Mike Mueller discussing the merits of video for real estate. He recorded this as part of a contest on MyTechOpinion.com answering the question “What technology product or service has made the biggest impact on your business? And why?”.

(see all the finalists submissions here)

It is so easy and very affordable to get started with video.  I carry around in my purse a Flip Video camera.  You can buy one on Amazon.com for $100-$200 (depending on features like duration of recording and color ).  I have this one:

My Flip Video is the size of a box of cigarettes, runs on two AA batteries, and is SIMPLE to use (you just push a red button to record, and the same button to stop the recording).  And, the video is all pre-compressed and ready to be uploaded to YouTube or other video sharing sites such as Viddler.  The camera comes with a USB connector built into it so you just pop the Flip Video into your computer and go!

The Flip Video can also be used to shoot video of a home or a neighborhood for a relocation client who can not be there to see the home or the surrounding area themselves. You can also use it to shoot video of a rental or a vacation home to help market the property. The opportunities are as wide as your imagination is for creative marketing!

Every Tuesday, here at the Glen Oaks Escrow website, we post Technology Tips designed to help you, the REALTOR®, grow your business, keep up to date on the latest technologies, and move you forward into the new era of real estate.

Ring Ring, Ring Ring – Do you hear that? That is the sound of change coming to the way Realtors interact with their clients.  If you haven’t heard, Google is about to launch a new service called simply Voice.

Google Voice will give you a new phone number that allows you to aggregate all your calls to one place.  The system allows you to pick a number in almost any area code in the United States.  As soon as your friends, family, and clients begin to use this number instead of your old number, the capabilities of this new line will match that of the highest end phone systems in offices today.

A few interesting features of the product:

• Find Me - Your clients can dial one number and any phone you select can ring
• Voicemail Transcription - All voicemails will be converted to text and emailed to you.  If you’re in the middle of an important meeting but can view your email, you’ll be able to read what the caller said.
• Call From Your Cell - Blackberry and Google Android phones are already enabled and more are coming soon allowing you to access your Google Voice account from a program running on your phone.
• Ability to Label Calls Spam – Any future time they call they will be sent to voicemail and the message will be marked spam in your Voicemail box
• ListenIn - This feature allows you to screen calls by hearing what a caller is leaving a voicemail about.  If you feel the message is worth responding to immediately, you may at that point pick up the call in the middle of the message.
• Call Record – Allows you to keep a recording of the conversation to remember for the future.  If a client calls and speaks to you about a home they are looking for and you can’t write the info down, just click one button and the whole conversation is there when you get back to the office (callers are notified that you are recording the call).
• Custom Greetings – You can set your Google Voice number to answer with different messages based on if the caller is a client, family member, or friend
• Switch Phones - With one button you can switch the call off your cell and onto your landline to reduce your cell minutes.
• ClickToCall – Don’t want to dial that number in your contact list?  Just hit one button on your computer and the program will dial out to your phone and connect you automatically with the person you are trying to reach.
• Text / SMS - Google Voice numbers are also SMS enabled.  This means your clients can send you text messages even if you don’t have a text plan from your provider.  The messages will be stored in your inbox as a message.  Alternatively you can have the SMS messages forwarded to any number of cell phones you choose.
• Free US Calling - call out to any US number for free.
• Low Cost International Calling - If you have international clients, you can now call them from your cell phone without exhorbitant fees (See Here For Rates)

Ready for the best feature? It’s all free! You can learn more here or just sign up by going over to the Sign Up page.

The typical real estate escrow requires the buyer to sign 70 – 120 pages of documents, several of which require notarization.  The seller also will have to notarize, at the minimum, the grant deed.  Notarization, or the act of an uninvolved witness (the Notary) verifying that the signor (the buyer or seller) is indeed who they say they are, is an essential part of the escrow process.  And, if notarization is not properly done, it can cause delays which can impact the closing of the escrow.  When it comes to notarizing documents during escrow, clients can choose to go to the escrow office or hire an outside notary.

Option 1:  Notarize and sign at the escrow office

Escrow offices all have a notary on staff.  Therefore, a common option for notarizing documents is to have the parties go to the escrow office to sign documents.  With customer satisfaction as our highest priority, at GOE Escrow we prefer that our clients physically come to our office to sign closing documents. This not only ensures that buyers and sellers feel they are receiving the highest level of service, but also we can personally correct any errors that may have been overlooked by the many parties involved in the transaction as well as answer any questions that may arise.

However, circumstances do not always allow for clients to sign at the escrow office (for example, in the case of an out of town buyer).  When this occurs, working with an outside notary is the alternate solution.

Option 2.  Notarize and sign with an outside notary

If you are to hire an outside notary, you have two options:  A Certified Document Signor or a Mobile Notary.

Both Certified Document Signors and Mobile Notaries are certified by the State of California to verify signatures.  However, a Certified Document Signor also undergoes regular continuing education training specific to real estate transactions.  They are familiar with the documents that are signed in the transaction.  Mobile Notaries are not required to have this specific training and as a result, are not always familiar with the documents that are being signed.

A Certified Document Signor will cost more, but clients should be aware that our most common reason for the delay of a transaction is due to the incorrect signing of closing documents. With the amount of paperwork that needs to be signed and notarized, it is easy to see how someone without the proper training could overlook a detail here or there.  As a result, Certified Document Signors are our preferred option if the client is not able to sign in person at the escrow office.  That said, it is possible to have an accurate and successful closing with a mobile notary.  The choice is really up to the client and will be impacted by many factors specific to the transaction.

So when choosing, ask yourself what is more valuable in a real estate transaction, your time or your money?  If time is not of paramount concern, a mobile notary may be a great choice for you.  If it is imperative you close on time, your risk of signing issues will decrease by going with a certified document signor.  And, if you have the ability to sign at your escrow office, you will run the lowest risk of delays.

Interested in what you are reading? To automatically receive these Escrow Tips in your email box, subscribe to these articles at the top right corner of this site (www.goeblog.com) in the box titled “Subscribe via Email”.

In two previous posts (Twitter 101: What Is It and Why You Should Be On It and Ten Ways Realtors Can Use Twitter and Why) we explained to you the power of Twitter and some direct applications to the field of real estate.

However, one of the most powerful ways to interact on Twitter is through mobile applications on your cell phone.  Twitter even asks you right in the main line “What is happening?”.  Why not answer that question from the field, when you are away from your computer?   Below we cover some tools that allow you to do that and their application to real estate.

Twitter Clients

A mobile Twitter client is a program that runs on your phone which allows you to send and receive Twitter messages.  Some offer the ability to search twitter for terms.  However, you can use Twitter on any phone with a data plan without a client by simply visiting http://m.Twitter.com on your mobile phone internet browser.

Although the website is one way to access Twitter from you phone, for Blackberry, iPhone, Palm Pre, and Windows Mobile users, there are also application options which make Twitter easier to use from your pda.

For Blackberry Users:  TwitterBerry and UberTwitter

While TwitterBerry is currently the dominant player and has a clean interface, UberTwitter is gaining traction.  The service offers an interesting auto update feature that always keeps your Twitter stream up to date without waiting for it to load.

For iPhone Users: TweetDeck, TwitterFon and Tweetie (search for these in the app store)

TweetDeck, one of the most dominant desktop Twitter applications, has recently become available on the iPhone.  The service now offers the ability to synchronize your columns.  (Be careful about leaving this application open on your phone, it’s a big battery drain.)  TwitterFon and Tweetie each offer fairly similar features with the ability to see your @Replies, DMs, and Twitter Stream.  My personal choice is TwitterFon.  The software comes in a free version and a Pro (paid) version.  The free version is excellent but if you want to have an ad free experience and manage more than one twitter account, you’ll want to upgrade to the paid version.

For Palm Pre Users: Tweed (search in PreApps)

The new Palm Pre phone has a slick interface and Tweed doesn’t dissapoint.  The service will keep your stream updated and allow you with just a few clicks to share photos on Twitter as well as posting to Flickr at the same time.

For Windows Mobile: TwitToday

There aren’t many choices yet for Twitter on Windows Mobile, but one of the better options available is TwitToday.  It offers basic Twitter interaction potential right from your Windows Mobile home screen.

Other Tools

Posterous – Sign up for a Posterous account and you suddently have the ability to post photos, video, music file, or most other types of documents to your Twitter stream by simply emailing Posterous from your phone or computer.  Imagine doing a video walk through of a great new listing and within seconds sharing it with your followers or taking a photo of your community and showing potential buyers why it’s such a great place to live. Or perhaps you have an document you’ve created on market stats for your area.  Now everyone can have access in seconds.

TwitPic and YFrog – Specific to just photos, TwitPic and YFrog allow you to email any photo from your phone and have it post to your Twitter stream automatically.

Using Twitter when out and about really opens up your ability to interact with the public.  You can take a few moments while waiting in line or sitting idly to just catch up with those you follow.  You can also check to see if anyone is Twittering about real estate topics in your area offering you that first contact ability.

Interested in what you are reading? To automatically receive these Tuesday Technology Tips in your email box, subscribe to these articles at the top right corner of this site (www.glenoaksescrow.com ) in the box titled “Subscribe via Email”.

Wishing you seasons greetings and good wishes.  Thank you for your continued readership of our blog.

May your holidays and New Year be filled with Hope, Joy, and Peace!

If one of your New Year’s resolutions is to jump on an opportunity to learn more about how social media can grow your business in 2010, then save the date for January 4th to get started on your goal.  Virtual Real Estate Barcamp is back and all you need to attend is a computer and an internet connection.  This webinar is free for you to participate in and is pulling some of the best national trainers on the real estate social media scene.  Pango Group, the parent brand of Coachella Valley Escrow, is a sponsor of Virtual REBarCamp and I have been invited to present during the webinar.  I’ll be available after my webinar session to field question in the live chat room.  Hope to “see” you there!

Event Details are as follows:

• When:  Monday, January 4th, 2010, 9:00 am – 4:00 pm PST
• Where:  Online Webinar
• How to Attend:  Information Here
• Cost:  Free
• Registration: Participate by registering here
• Schedule:  Calendar of Sessions
• Presenter Bios

Interested in what you are reading? To automatically receive these Tuesday Technology Tips in your email box, subscribe to these articles at the top right corner of this site (www.glenoaksescrow.com ) in the box titled “Subscribe via Email”.

In these tough economic times, many homes have been languishing on the market, making it difficult for Sellers to move on to other homes and locations.  In order to make a sale, a Seller can offer to do a “carryback”.  A carryback loan, also known as a “seller carryback” or “seller’s second”, is a loan which is financed by the Seller of a property to help a Buyer purchase the house. Normally, this aids in the completion of the sale of the property. It could also refer to the part of the purchase price the Seller is able and willing to finance for the buyer.

For instance, the typical seller carry back situation is 10% down, 10% seller carry back and 80% first mortgage. This is a percentage of the purchase price. An example is a $1,000,000 house would have a $100,000 down payment, a $100,000 seller carry back and a $800,000 conventional first mortgage deed. Another scenario for a seller carry back is if the seller owns the property free and clear and the seller carries a first mortgage or trust deed. Sometimes there is a first trust deed which the buyer can take over and the seller carries a second mortgage.

Utilizing a seller carryback works well when the Buyer cannot come up with a big down payment or they may not fit into the “conventional” loan process because of their career or past credit history. Understanding the potential pitfalls of doing a seller carryback, but also knowing the rewards, is crucial to this type of sale.  In a seller carryback scenario, both parties need to exucute an All Inclusive Trust Deed.

An “All Inclusive Trust Deed” or AITD is a “Seller Carry” that “wraps” or includes an underlying loan or loans of record. It is usually recorded at the close of escrow with a Grant Deed conveying full to title to Buyer and Title Insurance is issued.  The AITD’s face amount includes the unpaid balance(s) on underlying encumbrances, plus the remaining unpaid balance of the Sellers equity.

Sellers remain responsible for the payment on the underlying loan(s) or until they are paid in full. The Sellers equity position in the note is always the difference between what is owed to the Seller and what the Seller owes the underlying lender.

The AITD becomes a junior trust deed, subordinate to the underlying trust deed(s).  The inputed interest rate (9% or applicable Federal securities rate, which ever is lower) is the minimum interest rate allowed for Seller financed transactions. The Documentary Transfer Tax on the grant deed is based on the purchase price LESS the liens of record.

Advantages:
The Buyer does not need to qualify for a loan with a lender and closing costs are minimal.  The Seller has advantage of installment sales income tax recording method, so long as payments are received in more than one tax year. The Seller, by agreement in writing with buyer, may prohibit prepayment of up to a 12 month period following the sale.

Because the underlying loan(s) may have a lower interest rate, or may have been paid down considerably, the Seller’s effective interest rate yield may be higher than the actual note rate.  The Seller benefits from the “Interest Override” which is the difference between the interest rate on the existing loans of record and the rate negotiated on the AITD.

Disadvantages:
Recording may alert an underlying lender to enforce the “Acceleration Clause” or “Due on Sale Clause” and require the underlying loan to paid in full.  At this time, the underlying loan would be considered in default and said lender could start foreclosure proceedings.

Paying off an AITD:

There are two types of AITD payoffs:  Equity Payoff and Full Payoff.

The AITD should not be reconveyed until such time as any equity of the seller and the existing deed(s) of trust have been paid in full. At all times the seller is responsible for the underlying loan(s) of record, since there has been no release of liability given by the existing lien holder(s). Any late payments and/or default, will reflect on the Seller’s credit accordingly.

Being able to sell a house quickly by not having to wait for a mortgage company to approve a buyer or having to rely upon an appraiser to come in with the “right” price can sometimes make this type of an arrangement attractive. However, be sure to consult a real estate attorney and professional tax advisor on the implications (or benefits) before entering into a transaction.

Interested in what you are reading? To automatically receive these Escrow Tips in your email box, subscribe to these articles at the top right corner of this site (www.goeblog.com) in the box titled “Subscribe via Email”.

Every Tuesday, here at the Glen Oaks Escrow website, we post Technology Tips designed to help you, the REALTOR®, grow your business, keep up to date on the latest technologies, and move you forward into the new era of real estate.

Realtors often ask about IDX, the method and rules that allows for Realtors and brokerages to display the MLS inventory on their websites.  It’s one of the more complex terms in real estate technology and probably one of the least understood.  Why?  First, to most Realtors, the terminology is foreign and vague.  Then each MLS has their own IDX rules that can range from archaic to progressive.  Finally, there are hundreds of choices for IDX vendors whose offerings vary as wildly as their prices.  These variables make it a complex and confusing topic.

However, giving  potential clients access to IDX listing search on your website is an absolute must for any modern brokerage or agent.  So, wading through the waters of the process is a necessity.  This post is designed to make it easier to understand.

What does IDX mean?

IDX stands for Internet Data Exchange.  It’s the rules and procedures that allow real estate brokers and agents to display listings from other companies on their website.  Most IDX rules require the broker or agent displaying the listing on their site to display the name of the listing brokerage with the listing.

A key point to remember is that IDX and the underlying rules only apply to brokerages and agent websites.  For example, Zillow does not fall under IDX rules since Zillow is not a brokerage.  Therefore, on non-brokerage and non-agent sites, such as Zillow, only the listing agent would be able to advertise their property (vs. all listings appearing on Zillow as part of an IDX feed if they were a brokerage).

Vendor Selection:

As an agent, there are options on how to present listings on your site, and there are a variety of vendors who offer different IDX solutions.  The different options yield different benefits.  If you listen to real estate search engine consultants speak, you’ll hear terms like Drop-in vs. Built-in.

Drop-In vs. Built-in IDX:

A drop-in IDX solution means that the code to run the search and display any of the listings actually occurs on a different website.  In other words, the code does not live on your site.  The benefits of a drop-in IDX solution include that they are readily available, generally affordable, easy to implement, and can display listing data in a way that is appealing and easy for the consumer to use.  However, this solution offers no search engine optimization benefit for your site.  However, for many agents, drop-in IDX solutions can be suitable solutions to displaying listings for the benefits listed above (and search engine benefits can be gained from other web strategies – blogging, for example).  Examples of a drop-in IDX providers are Diverse Solutions and iHomeFinder.

With Built-In IDX, all the listings display right on the agent or brokerage website.  This means that if a search engine finds the page, it will see all the listings and potentially make them searchable.  The more pages that a search engine finds on your site, the easier it is for potential clients to find you on the web.   Very few practical options currently exist for agents right now in regards to built-in IDX (the current leading option is a custom coded website built by a vendor which requires a coder with a specific skill set, and a large sum of money on your part).  However, if you have a Wordpress based blog or website, Listing Press is a new option to consider and more options are in the works.

Map Based Search:

An important question to ask a potential IDX vendor is whether they offer map-based search.  Up until recently most vendors offered IDX search that was based upon the user making selections such as 3 beds, 2 baths, $500,000-$600,000 and a list of options would display.  Now that list can be used in correlation with a map.  So when a potential client sees their options they can also get a good idea of where the home is located, how close it is to parks, schools, the freeway, etc.

Lead Capture System:

The most important item to look at when considering an IDX vendor is their lead capture system.  What’s the point of running a website and paying money to have all the listings on there if you don’t get clients from it?  A good lead capture system will allow a potential client to request information or schedule a showing on every listing.   Also check to see if the vendor offers the ability for users to save listings, receive listing email alerts, and track what has been viewed.

Pricing

IDX pricing can run from $20 / month to more than $100 depending on which solution you choose. Also, make sure to ask your MLS if they charge any fees for gaining access to the IDX data.

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There are many implications of loans that are either “Assumptive,” or “Subject To.” Here is a general overview of some of the definitional differences between the two and how the differences affect the escrow process.

Assumption Loans:

The term “assumption” is used when a buyer incurs personal liability for an existing deed of trust.  If the buyer were to default on their future mortgage payments, the seller would no longer have any responsibility as the buyer has “assumed” the loan.

When a buyer “assumes” a loan it is with the lender’s knowledge and approval. An assumption agreement is prepared by the existing lender of record and signed by the buyer as part of the escrow process. The seller may also be required to sign the assumption agreement and the terms may release the seller from responsibility. The lender usually requires a credit history from the buyer before approving the assumption and the payment of assumption fee(s). The loan will be brought current (if it is delinquent) and interest will be pro-rated through escrow and charged to the seller.

Subject To Loans:

In contrast to an Assumption Loan, the term “taking subject to” is when the buyer incurs no liability to repay the loan. The loan stays in the seller’s name, but the buyer gets the deed and therefore controls the property.  Although the buyer makes the mortgage payments, the seller remains responsible for the loan.

When a buyer takes title to property “Subject To” the loan of record, the lender is not notified of the transaction or asked for their approval. The Lender has not approved the transfer of title; therefore the seller is not released from responsibility. In this case, the buyer is simply making the payments instead of the seller. The seller will be asked to provide escrow with their last payment record which will be used to calculate the exact principal balance at close of escrow. The lender may have the right to accelerate their due date or call the loan all due and payable when (and if) they receive notification of a transfer of ownership.

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Previously, I wrote a post called “Twitter: What Is It and Should You Be On It? which defined Twitter and explained what it is.  This post is designed to express the value of Twitter, and explore some of the potential uses for Twitter for the real estate professional.

I’m often asked, why Twitter?  What is the benefit? Furthermore, how is this relevant to the Realtor?

Let’s start with the benefits of Twitter that I see and experience:

• Twitter is real time.  Twitter provides the opportunity for me to get an immediate pulse on news and events, often before the mainstream media can report on it.  For example, last month, there was an earthquake in Southern California.  The twitter conversation about the earthquake occurred within seconds of the earthquake.  It took several minutes before it appeared on the internet, and about a ½ hour before I could find the news reporting on it.
• I learn from Twitter...a lot.  People I choose to follow on Twitter often send out links to things that I’m interested in (blog posts, news stories, photos).  When they  send out a link, it is a basically a referral from them, and I’m often interested.  It helps me to stay current and informed.
• Trend watching:  By watching Twitter conversations, I stay current on the pulse of what is hot…current events, technology, public opinion, rates, weather, etc.
• Exposes me to a larger community: Realtors reach with traditional media is generally restricted by geographic distribution.  Because anyone can follow you on Twitter (it doesn’t require mutual agreement to “connect” as Facebook does), who you connect with is not limited by geography.
• I keep up with a geographically diverse group of people, easily, and in real time.
• Twitter is easy to use and it doesn’t have to take a lot of time. 140 characters (the maximum allowable length of a tweet) is a pretty low commitment.  With the right technology, you can tweet from almost anywhere.  Real estate is a business of hurry up and wait.  If you have a client that is running late for a showing, why not send a tweet from your cell phone. It can be an efficient use of downtime.
• Twitter is fun. There are some funny things on Twitter.  I’m constantly amused.  It is a great way to be entertained and connect with others through humor.
• It’s a new communication channel I didn’t know I needed.  I suggest that Twitter is akin to email in this regard.  We were all living quite happily without email at one time.  Clearly, email is now a mainstream communication channel.  Twitter has the potential to be the same.  As a note, I’ve also noticed that as my twitter usage goes up, my email usage has gone down (not a scientific study, but a personal observation).

So then, given these benefits, how can the Realtor can use Twitter?  Here are 10 potential uses I see that, properly executed, could lead to expanded business for a Realtor.

1. Network & Make New Friends: Use 3^rd party sites and applications such as Twitter Search to find and watch for conversations related to things you are interested in.  Add active users that are saying things that are interesting to you.  Engage with them.  A Twitter acquaintance can be developed into a long lasting friendship.  And, in the immensely social business of real estate, where the adage “its all who you know” certainly holds true, we know that the more friends you have, the better.
2. Read News:  Keep up with the industry in real time.  Follow industry news sources such as Inman News as well as lenders who tweet about mortgage rates.  Learn about events industry events designed to teach you about social media and real estate like REBarCamp Orange County.
3. Attend, or Organize, Face-to-Face Meetings (aka Tweetups):  Use Twtvite to find or organize events with like minded individuals, or those who are interested in what you have to share (for example, you could host a first time homebuyers seminar and promote it via Twitter). Use Twitter as a catalyst to meet people in real life.
4. Build Your Referral Network.  One of the key benefits of twitter is the ease at which you can keep in touch with a geographical dispersed group of people.  There are LOTS of Realtors from all over the United States and the world on Twitter.  Connect and engage with them.  Think about the possible referrals!
5. Prospecting: I see Twitter as the new-media equivalent of cold calling.  Because you don’t have to have mutual agreement to connect with people on Twitter, it is easy to make connections with complete strangers.  Unlike Facebook, where interacting with people you don’t know can be perceived as creepy, Twitter is set up to engage with anyone.  It is culturally acceptable.  And, there ARE clients to be found on twitter.  Take this example from Gary McNich, a Realtor in the Seattle, WA area:



6. Follow Local Discussions: Use 3^rd party sites like TwitterLocal to search out discussions about your area and watch those discussions.  Gain a pulse on what the hot topics are in your area.  Use this as an information source for blog posts or general conversations with clients.
7. Get Feedback: Twitter is a great medium for asking a question, and getting answers.  Want to know what people think about why buyers are sitting on the fence, or what they think of the new website you just put up for you listing?  Maybe you want some feedback about a vendor you are considering hiring.  Ask the twitter-sphere and you will get all kinds of answers.
8. Direct Traffic to Your Blog or Website:  A very powerful part of twitter is in the links that you can include in your tweets. When you send out a link, it is a referral to somewhere.  And, if you have built a network of people on twitter who trust you, you have a great chance that your followers will view your link, which will effectively drive traffic to your website and/or your blog.
9. Extend Your Personal Brand: Your profile page, and the content you tweet, says something about you.  Twitter provides a great opportunity to extend the brand that you have built in off-line marketing materials onto the web and into a social network.  If done properly, you will position yourself as a trusted advisor and have an easier time utilizing twitter to enhance your business opportunities.
10. To Broadcast: This is my least favorite Twitter usage suggestion, but if done in moderation, after building a following that trusts you, Twitter can be a way to promote your services or your listings. However, WORD OF CAUTION, if not done properly, using Twitter as a strictly broadcast medium will be perceived as spam and you will not only loose followers, but damage your credibility and reputation in this social network. It is really about tone and frequency and this strategy is not the first you should embark upon when joining Twitter.  I’ll discuss more about this in a future post.

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Situation #1 – The Deceased Left a Will:

From the standpoint of escrow and most buyers, this situation is a far preferable probate sale due to the predictable time frames this situation provides.  When the deceased leaves a will, the property falls under the Independent Testamentary Act and the court designates an Administrator or Executor of with full authority over the estate.  Typically this person will be a close remaining relative.  It then becomes the responsibility of this person to decide the future of the property.  Because this person has full authority, the process from an escrow perspective is very similar to that of a standard sale.  However, there is one additional document that will be required by title in order to close the transaction.  They will need certified copy of the “Decree of Distribution of Letters of Testamentary”.  This is official paperwork issued by the court that designates the Administrator of Executor and is required by title in order to insure the transfer of the property.  Glen Oaks Escrow also will want to receive a copy of this document in order to proactively review it for potential hiccups in the transaction.

Situation #2 – The Deceased Did Not Leave a Will:

In the event that the deceased did not leave a will, the property sale will have to go through the court probate process.  The court will approve and assign an Executor or Administrator for the Estate of the Deceased.  This Executor will be an independent court representative.  The court will also issue an Order Confirming Sale which basically stating that the listing price is at fair market value and it authorizes the sale of the property.  A certified copy of this document will be required by title in order to close the transaction.

The challenge for escrows on Probate Sale listings in this situation where the deceased did not leave a will is that the time frame for the court probate process can vary from 60 days to 6 months or beyond.  This creates a challenge in negotiating escrow times.  Agents should be prepared to properly set buyer expectations about the time it can take to close a court appointed probate sale.  It is not uncommon to require an extension of escrow.  And, unfortunately, sometimes the extended escrow duration can become a deal breaker.

If you’re ever in a probate property sale transaction, understanding the process and what you must do to transfer the property can affect the success you have in closing the deal.  Your escrow officer can be an excellent resource to inform you of the paperwork and time frames that will be required to complete the transaction.  In addition, consulting your family attorney or estate planner is your best course for answering specific and legal questions in these types of transactions.

Interested in what you are reading? To automatically receive these Escrow Tips in your email box, subscribe to these articles at the top right corner of this site (www.goeblog.com) in the box titled “Subscribe via Email”.

Every Tuesday, here at the Glen Oaks Escrow website, we post Technology Tips designed to help you, the REALTOR®, grow your business, keep up to date on the latest technologies, and move you forward into the new era of real estate.

Blogging is the cornerstone of the new media marketing movement, and the promise of business for the Realtor who embraces it is tempting.  This post is designed to give the pros and cons of blogging, and help you decide if blogging is something that you should incorporate into your real estate business.

First, what is blogging?

In February, I did a detailed post answering this very question.  Basically blogging is an on-line journal.  It consists of posts, or articles, that the blog author writes and adds on a regular basis to the blog.  The most current post resides at the top of the blog, and the prior posts move down the page.

Success in blogging results from two things:

1. Providing content of value to your target audience
2. Frequency

What content is of value in real estate?

I view the following topics as good topics for Realtor blogs:

• Market Data: Answer the question, how is the market? This is likely the most common question in real estate and makes for excellent blog post fodder.
• Neighborhood Info: Talking specifically about different neighborhoods and farms will help build your credibility, establish your expertise in an area, and help you with what is called the “long tail” search in Google. When it comes to buying decisions, people are very interested in the nuances of a particular neighborhood. You discuss this in the car with prospects, and you work to show sellers your neighborhood expertise with post cards mailings, and in your listing presentations. Take this information to the web in the form of blog posts.
• Lifestyle Information: Every buyer wants to know what the lifestyle is like in various cities, communities, and neighborhoods, and you as a Realtor are selling not only the houses in a particular area, but you are also selling the lifestyle. Blogging about the events, people, restaurants, schools, and area information are all great topics for a blog and paint a picture about the local lifestyle in the area.
• Transaction Education: For most people, the process of buying a home is complicated and overwhelming. As the Realtor, part of your job is to navigate buyers and sellers through that process. By discussing the process and providing an education on the nuances of the transaction, you have the opportunity to establish your professional credibility and attract buyers and sellers who appreciate the education you are providing them on the process of home buying and selling.
• Competent Advice/Perspective/Interpretation: No doubt about it, there is access these days to almost any information someone could want. The problem is that the amount of information is overwhelming. This presents a blogging opportunity for the Realtor who can provide an interpretation of all the data. From all the stats, what is the most important piece of information for today’s buyer to know? Why is it important for them to know? What is meaningful about that?

And what about frequency of blogging?

How often you blog is going to vary for each Realtor.  I suggest that blogging once or twice a week is a good target.  The key is to do it on a regular basis.  This keeps your blog fresh, reminds people that you are active and current in the market, and helps you with Google.

Blogging has several advantages for the Realtor.

Blogging Pros:

• Establish Your Expertise:  Keep in mind that when you are positioned in the mind of the buyer or seller as THE trusted advisor, you have a client. There is no better way in social media to establish yourself as a trusted advisor than with blogging. Blogging provides you a golden opportunity to establish your real estate expertise. It allows you to express your perspective, your professionalism, and you market knowledge in a way that reflects your tone and personality.
• Google Friendly (Search Engine Optimization – SEO): By definition, blogging is Google friendly. The platform of blogging is designed to be indexed by Google and if you are blogging using words that are relevant to your market (key words), you are helping yourself naturally appear in search results when people search Google for terms that match what you are blogging about. So, for example, if you are frequently blogging about items related to La Quinta real estate, when someone types in “La Quinta real estate” into Google, you are more likely to rise to the top or be on page one.
• Subscribe Feature:  Blogs have the ability to have people subscribe to them so that any content you post is automatically distributed to the reader (vs. them having to come to the site to see new content). When this channel is properly respected (and not abused, which would result in the reader “unsubscribing”), the blogger creates a drip marketing opportunity to all of the readers who are “reminded” of you ever time you post a new blog post.
• Brand Building Opportunity:  Through blog subscribers (as described above) and in the visual design of your blog, you have the opportunity to establish, and extend, your personal brand. What you say on your blog, and how it looks, is a reflection of your professionalism and your personality and gives people an impression about you.
• “Long Tail” Opportunity:  This benefit relates to the opportunity to reach people who are searching for specific terms in Google, vs. broader terms. For example, “La Quinta Real Estate” is a very general term that yields about 1.6 Million results in Google. Compare this to “The Hideaway La Quinta Real Estate” which yields about 8,000 results and you can see that there is a much greater opportunity to be found on the long tail search. Another benefit is that people who search long tail terms tend to be closer to a purchase or sale decision as they have gotten specific in what they are looking for.
• Can be a Lead Generator:  Blogs can generate great leads. When you are effective in articulating your real estate knowledge, answering the questions of your target market, and positioning yourself as a trusted advisor, people will contact you through your blog. Those that do contact you are generally attracted to your perspective and generally stronger leads than you may get off of an ad or other form of marketing. People tend to watch a blog for a while. They will get a feel for you. When they do contact you, it is because they have a feel for who you are and they are interested in working with you.

Blogging Cons:

• Time Consuming:  No doubt about it, blogging is a time consuming endeavor. It takes a commitment from the Realtor. Keeping in mind that frequency is a key element to successful blogging, you really need to view blogging as a strategy that you have a plan for. It takes time to generate good content.
• You Need Average, or Above Average Writing Skills. Blogging is a content driven marketing vehicle. If you are not generating good content, you are not going to get good results. If you do not have the ability to articulate your perspective easily with the written word, blogging will be a challenge for you. There is an alternative – video blogging. With a very affordable piece of equipment called a Flip Video Camera, you can post a video blog instead of writing one. A video blog doesn’t carry the same SEO benefits that the written word does, but it can be a very effective way to articulate your perspective, or actually show your market area. A video blog can also be an efficient use of your time (maybe video tape yourself while you are sitting at an open house and waiting for traffic).
• Several Nuances to Learn:  Although the actual process of posting a blog is not much more difficult than sending an email, to succeed in blogging over time, there are many nuances to learn about the blogging platform. For example, there are better (vs. worse) ways to title your posts so that you rank well in Google and/or capture the attention of your readership. There are best practices to follow in terms of naming your images and inserting links into your posts. Although none of these items are particularly challenging, all of these little items tend to present a learning curve for the Realtor just getting into blogging.
• Becoming Competitive:  Blogging has been popular in real estate for several years now, and in some markets, there are some very established real estate blogs. In these areas, the landscape for blogging is very competitive. You should survey the blogging competition for your market and determine if there is a great opportunity for you there. Even in markets where blogging is very established, there are still ample blogging opportunities on a hyper-local level. You don’t have to blog about Palm Springs. You can blog specifically about Rancho Las Palmas. This would be a hyper-local topic and one where you have a strong chance to stand out and dominate a niche area. Alternatively, you could also define a niche market – maybe foreign buyers or sellers for your area. Or , seniors. Or, first time home buyers. Think about segments that may be under-represented by blogs that are focused on larger areas and geographies and you will find some great blogging opportunities.

I’ve pointed out the reality of the challenges of blogging in an effort to give you a realistic view on what it takes to succeed in blogging.  Blogging may or may not be for you.  But, if you are searching for a new strategy, or you actively farm a geographic area or demographic niche, and plan to be in business for 5 years or more, I suggest you seriously consider establishing a blogging presence.  There is just so much to be gained.  In a future post, I will lay out the leading blogging options for those who would like to pursue a blogging strategy for their real estate business.

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A special greeting at this Thanksgiving from Glen Oaks Escrow to express our sincere gratitude for reading our blog and the feedback you provide.   We are thankful and would like to extend our best wishes from our family to yours.  Happy Thanksgiving!

Every Tuesday, here at the Glen Oaks Escrow website, we post Technology Tips designed to help you, the REALTOR®, grow your business, keep up to date on the latest technologies, and move you forward into the new era of real estate.

A year ago, when I would introduce “Twitter” to a group of agents, it would be the first time Realtors had heard the word.  Today, thanks to an explosion of Twitter users in the media and entertainment world, most have at least heard the term.  But, I still usually get the question, “What is Twitter anyways?”.  And, once I explain Twitter, many are left trying to figure out if it is relevant for use in their real estate business.  This post is designed to define what Twitter is.  Future posts will discuss what the value is in Twitter and investigate if there is any value for real estate agents.

What is Twitter:

I like to explain Twitter as “broadcast texting”.  Basically, you type a short message, and when you hit send, it broadcasts out that message to everyone who chooses to “follow you” (people can choose to receive your Twitter updates).  So, if you have 200 people following you, that one message will simultaneously go to all 200 people.

Some important details to understand about Twitter:

• Twitter is a social network
• Messages are called “tweets”
• Messages/Tweets are limited to 140 characters (Twitter is often defined as “micro-blogging.  For a better understanding of blogging, check out our post on What is a Blog & How Does it Relate to Real Estate)
• Tweets answer the question “What is happening?” (Twitter asks this on the website)
• You can use Twitter from both the web and from your cell phone.
• The service is free.  Note however, that if you use the service via text from your cell phone, you may have charges associated with it depending on the texting plan you have with your carrier.  Once I started really getting into Twitter, I invested in an unlimited texting plan on my cell phone.

If you are still not clear about what Twitter is, other’s have done a great job explaining Twitter.  Here are some links to others explanations:

• Common Craft has a video explanation of Twitter that appears on the Twitter website.
• About.com answers “I just don’t understand Twitter“
• Tweeternet answers “What is Twitter and Why Does it Keep Following Me Around“
• Real-Tech Guy does a nice job of explaining how to get started with Twitter

Also, Nicole Nicolay of MyTechOpinon.com has written the definitive guide on using Twitter for real estate.  It is a free ebook you can download and it is outstanding.  If you are ready to get started with Twitter, or already have an account and want to learn how to best use it for real estate, you won’t find a better source.

This post lays out a definition of what Twitter is.  I can tell you that Twitter is my absolute favorite social network.  Twitter provides me a new form of communication I didn’t know I needed and it has transformed my business communication and networking activities.  Future posts will expand on the value that Twitter provides and introduce strategies to successfully use it in real estate.  For now though, if you want to get started with Twitter, go to Twitter.com and sign up for an account (it is very easy and requires minimal information from you).  Then, follow me (my twitter id is @staceyharmon).  By watching my Twitter account, you’ll start to get a feel for what Twitter is all about!

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Recent headlines have proclaimed that California’s foreclosure crisis is a long way from over. First time home buyers, predicted to make up 55% of the market in 2010, are looking at REO’s as an affordable way to get into the market. That makes REO or ‘Real Estate Owned’ properties the hot ticket right now. These are homes that fell into foreclosure and then didn’t sell at auction. So now, the bank or lender owns the property and wants to get it off their books ASAP.

Buying an REO property is almost the same as a regular home purchase. You still view the home and write an offer; the big difference is that you go into escrow with the bank- not a private seller. Dealing with the bank makes for a different negotiation process, and has some impact on the escrow process, as well.

In terms of negotiation, let’s say you make the bank of offer. They may sit on it for a while and mull it over. Depending on how close your number is to what they need to recoup their losses, they might agree right away, or wait for other offers to come in before they accept or decline yours. They may not counter you the way a traditional homeowner might…instead, they may just accept another offer. However, if they do accept, you will enter into an escrow agreement with the bank.

When you’re in escrow with a bank the process is different from a traditional home purchase. A REO sale has very strict time constraints and deadlines built into the escrow agreement. Banks are absolutely set on meeting those deadlines and because they are an institution not an individual, they can charge hefty fines if you fail to meet their deadlines. The upside – you can close fast. The downside – the bank can take back the offer without returning your earnest money (escrow deposit) if they feel the terms of the escrow will not be met on their timetable.

Don’t get discouraged though. People are purchasing REO properties in droves because they are saving between 10-30% on their purchase. It’s a fantastic way to get into a first home or buy investment property. So, if you’re ready to plunge in feet first, talk to your Realtor about testing the waters on an REO property. The market continues to have a high percentage of them, so your options are plentiful. Happy home buying!

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Our “Tech Tuesday” tip is being posted a day early this week in order to get the word out that tomorrow (November 17, 2009) a great online event is being held that any Realtor interested in learning more about technology and social media for their career can attend.  It’s Virtual RE BarCamp and all you need to attend is a computer and an internet connection.   If you are interested in any of the following topics, then Virtual RE BarCamp is for you:

• You Tube for Real Estate
• Using Flickr for Real Estate
• Making Real Estate Sales with New Media
• The Brand of “You” in Social Media
• Wordpress for Real Estate
• Social Media Trends for 2010
• Search Engine Optimization (SEO) 101
• Linked In for Real Estate
• Must Have Word Press Plugins

As the event website states:

The REBarCamp phenomenon has exploded over the last year with dozens of in-real-life gatherings where the real estate community comes together to discuss and demystify the current trends in technology and marketing. The goal of VirtualREBarCamp is to bring this experience to you as opposed to having to bring yourself to it.

Event Details are as follows:

• When:  November 17, 2009, 9:00 am – 4:00 pm PST
• Where:  Online Webinar
• How to Attend:  Links and Call In Information Here
• Cost:  Free
• Registration: Participate by registering here
• Schedule:  Calendar of Sessions
• Speaker Bios

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What is a title binder? No, it’s not the binder you take to keep your notes in concerning your title and escrow proceedings. It IS something that you should know about to save money if plan on selling your home within 2 years after its purchase. A title binder, also known as an interim binder, is not a title insurance policy, but is, instead, a commitment to issue a title policy. The key to the title binder is asking yourself, “How long do I plan to keep this property?”

The title binder is a cost saving tool for people (i.e. investors) who intend to “flip” a home or for those who are subject to frequent relocation or who just find themselves not wishing to remain in a specific home for more than two years. Every time you sell and buy a home, you incur costs to have the title searched. Title insurance protects the buyer of a property or the lender for the property against unknown defects in the title. For a one-time premium, the title insurance company, which is in the business of examining public records, preparing title abstracts, and selling title insurance, issues the insurance after doing a title search on the property.

By purchasing a title binder up front, you can save hundreds of dollars in title fees because it allows the purchaser of real property to resell the same property and have a policy of title issued to his/her buyer at fraction of the cost. For example, if an investor purchases a “fixer upper” they would purchase a title binder as soon as they bought the property, knowing they plan on fixing up the property and selling it within a year. When they go to sell the property, they use the same title company they originally used and avoid having to incur the costs of having the title searched again for the new buyer. The binder was designed for a special purpose and cannot be used in every real estate transaction. The standard term for a title binder is two years. However, some title companies do offer an extension for another year at an additional cost of another 10% of the Owners Policy Cost. It is very important to note, the same title company that issued the title binder must be used when the property is sold.

Sometimes, the listing agent for the former buyer (now the seller) was not aware of the title binder purchased at the time the property was purchased. Under normal circumstances in California, the seller of real property pays for the buyer’s title insurance. The interim binder provides a method to avoid duplicative costs. An Interim Binder gives its holder the option to obtain coverage during the period set forth in the Interim Binder, sell the property, and provide a title insurance policy for the new buyer, all at the cost of a single owner’s policy plus a “binder fee”, usually 10% of the premium for the owner’s policy. Accordingly, where a buyer or developer intends to resell the property within a defined time period (usually two years), an interim binder may constitute a useful and cost effective alternative. It is important to repeat, however, that an interim binder is not insurance, it is a commitment to issue an insurance policy.

However, if a claim arises during the interim binder period, the person to whom the interim binder was issued may convert the interim binder to an owner’s policy of title insurance naming him as insured and tender that claim pursuant to the policy. Title binders are only for buyers, not lenders and are issued in lieu of an Owner’s Policy. More information about the legalities of title binders can be found here.

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This week we are going to take a look at several Realtors who are succeeding by incorporating social media and web 2.0 principles into their real estate businesses. Social media provides an array of opportunities to develop relationships with clients – for some the diversity of options can seem overwhelming. With so many opportunities to apply web 2.0 practices to your business, the following agents have been selected as examples because they exploit one strategy particularly well. The lesson is to pick and choose what works best for you. Focus. By doing so, you too can grow your business by applying social media techniques. Let’s learn from others who are leading the way!

Video

Mike Lefebvre | Hallmark Sotheby’s International Realty – Suburban Boston, Massachusetts

Particularly outstanding is Mike’s use of video on his blog…specifically, this one which he submitted to www.MyTechOpinion.com answering the question “What technology has had the most impact on your real estate business”.

• Blog

Listing Information

Kris & Steve Berg | San Diego Castles Realty – San Diego, California

Both the website and blog do an excellent job of presenting dynamic information that consumers want, particularly in regards to listing information and market trends. On the home page of both their sites, the visitor is presented with a map showing active inventory in the San Diego market and the blog has the ability to let visitors search home listings from their cell phone.

• Blog: The San Diego Home Blog
• Website: www.SanDiegoCastles.com

Networking & Niche Marketing

Andy Kaufman| Keller Williams – Berkeley, California

Andy personifies the definition of networking in a web 2.0 world…and it isn’t only the social media networking he does. Supported by an informative, data rich blog, a niche focused on the foreclosure, REO, and investment market in the East Bay of California, the real power in Andy’s strategy comes in his outstanding use of blending social media and “in real life” (IRL) interactions to network for business. Andy is everywhere – networking at conferences that draw the real estate, the social media, and/or the technology scene – events such as the REOMAC conference, the REBarCamp Conferences (Andy is the founder of this successful series of social media conferences focused on Real Estate), and SXSW (South By Southwest). The power of his networking activities has resulted in no less than 7,000 followers on Twitter and 1,100+ friends on Facebook.

• Blog: MyEastBayAgent.com

Photos

Teresa Boardman | Saint Paul Home Realty – Saint Paul, Minnesota

Photos are Teresa’s thing, and her use of the social community Flickr for her real estate business, in conjunction with her blog, is an example for all. Photos are so paramount to her web presence they not only have their own navigation section on both her blog and website, but also to warrant an entire blog of their own. She also has thousands of photos representing the St. Paul area in her Flickr account and truly gives a consumer an outstanding feel for the area.

• Blog: StPaulRealEstateBlog.com
• St. Paul, MN Photo Blog: StPaulPhotos.com
• Website: www.TwasHere.com

Active Rain:

Rich Jacobson | Windermere Real Estate – Kitsap Peninsula, Washington

Active Rain is the largest real estate social network with over 170,000 members. And, if you are a member of Active Rain, you probably know the name Rich Jacobson. He is a Community Builder there and a brilliant example of how to utilize this great resource to not only promote yourself and your business, but to learn and participate in the social media real estate community. He also expresses his personality and interests by having a blog dedicated to his personal interest in Crabbing which results in a niche marketing effort based around a Pacific Northwest activity that he loves.

• Active Rain Blog: Rich Jacobson
• Website: KitsapLife.com
• Western Washington Real Estate Blog: Sound Bite Blog
• Personal Interest Blog on Crabbing: CrabbingInTheHood.com

Consumer Focused: Clear and Effective

Kristal Kraft | The Berkshire Group Realtors – Denver, Colorado

An excellent example an agent who combines her website and blogging efforts into one site online, Kristal’s blog is simply one section of her web presence and surrounded by a website which illustrates her professionalism, market knowledge, and answers the most pressing buyer and seller questions. No one tool overpowers others in this site – its success is more about an overall strategy of providing content that consumers care about and establishing herself as the trusted adviser in the consumers mind.

• Website/Blog: KristalSellsDenver.com

Please send us who you think is doing it right in real estate and social media and we can do a follow up post in the near future!

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What day should you negotiate to close escrow in order to meet the needs of the buyer and seller?  When negotiating a contract, the actual day of the week that the close is on is not often considered.  More typically, contracts call for 30 or 45 or “x” day escrows.  But, considering that:

1. Most buyers prefer to move into their new home on the weekend, and
2. Most sellers want to get their funds as soon as their sale closes,

we at Glen Oaks Escrow suggest taking a look at the specific day that you are projecting to close with your “x” day escrow, and attempt to avoid a Friday close.  Thursday or earlier is often best.  This is because you allow for a day from the recording of the sale for a seller to receive their money and a day of wiggle room for the buyer in case any part of the process encounters a snag.  In the case that a hiccup with any part of the closing process does occur, this leaves at least an extra business day to close before the weekend.

Other considerations:

Should we close at the end of the month?

Some people are concerned with closing at the end of the month. The benefit of closing at the end of the month is that the buyer does not have to come in with as much money to pay for outstanding interest that may be due. Closing at the end of the month is generally not a problem if all the documents are turned in on time. However, buyers and sellers should be aware that generally the county recorder’s office has more volume on the last day of the month.  Confirmations of recording tend to come later in the day as a result, and the risk of delays in proceed disbursements can increase as a result.  Of more common concern to most buyers and sellers is to avoid closing on a Friday and perhaps facing a delay that would force the buyer and seller to wait until after the weekend to close.

Holidays

Be sure to take holidays into account when negotiating a closing date as well.  The county recorders office, banks, and often escrow are closed for all public holidays and this can impact your closing date.  If for example, you plan to close on a Thursday, but the next day is a holiday, you might prefer to target a Wednesday close in order to best plan for the property closing before the long holiday weekend.

The escrow agent will present all the details of your closing to you and explain the process step by step. Keeping in mind the best day to close however will help your escrow go more seamlessly.

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It is very common for Realtors to find the world of Web 2.0, social networking, and technology overwhelming.  There is so much new terminology and new information.  The technical landscape seems to move so fast.  The news talks about the latest “thing” be it blogging, Facebook, or Twitter.  How does one keep up?

This post is to remind you that the most obvious forum for finding the answer to your questions is right under your nose and is often overlooked: Google.  Google tends to have the answer to anything.  Not sure what that text acronym TTYL is that your client (or niece) is using?  Type “TTYL” into Google and you’ll have an instant answer.  Wondering what this Twitter thing is and if it is something you should know about?  Type in “Twitter for Realtors” into Google and you’ll get plenty of perspectives on how to decide if Twitter is for you.

Do you feel you get too many results or don’t seem to find what you are looking for when you search for a topic on the web?  Common Craft did a great video explaining Web Search Strategies in Plain English.  Invest 3 minutes of your time and watch the video to learn some basic tips that will help you find exactly the content you are looking for when you search the web.  It will not only save you time, but it will also open the door to answering any question you might have regarding technology, your real estate business, and this world of Web 2.0.

You might also want to consider Google-ing the name of the clients you are working with.  In a previous post, I discussed the merits of Google-ing yourself and how to set up a Google alert to track what is being said about you on the web.  With the proliferation of social networks and the boom in participation in them, many of your clients are out there and searchable on the web.  You may learn a thing or two about your clients that will help you to connect with them as you help them with their real estate needs.  Give Google a try!

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To help avoid confusion, here is more information about the tax credit and the form that needs to be filled out in order to apply for the tax credit.

The credit:

* Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009. (The Senate is on the verge of extending the deadline as of today)
* Applies only to homes used as a taxpayer’s principal residence.
* Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.
* Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
* The credit is claimed using Form 5405.

This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000 or $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.

The IRS has a YouTube video, “The $8000 Tax Credit Explained” and other resources that provide details about the tax credit.

This is not intended as legal or tax advice. To fully understand the tax credit and apply successfully for the refund, please consult a tax professional.

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Last week’s Tech Tuesday post featured a video from Albert Tran of the California Association of Realtors discussing the latest version of zipForm’s, which allows Realtors to type their contracts online. One of the great features for California Realtors in zipForms is that it is DocuSign compatible, meaning that Realtors can have their contracts electronically signed, securely and legally, by all parties in the transaction. While at the CAR Expo in San Jose this year, I stopped by the DocuSign booth and spoke with DocuSigns, An Bui. Here is a video of our conversation with her explaining a little bit more about the DocuSign product.

Docusign also has a great blog that answers many of the common questions about their product, such as the legality of electronic signatures, illustrates why DocuSign Electronic Signature might be a Realtor’s best friend, and discusses new features of the DocuSign product, such as their new iPhone application.

DocuSign and zipForms are two technologies that are a huge step in the right direction for Realtors who are interested in making the real estate transaction as seamless and efficient as possible. I suggest you check them out.

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California law states that in order to hold title as community property with or without  Rights of Survivorship you must be either husband and wife or registered domestic partners. Why are buyers interested in Rights of Survivorship? Rights of Survivorship defines co-owners as having equal possession and interest in the property, so if, for example, one of the partners were to pass away, the property simply transfers to the surviving partner.

Sometimes, same-sex couples, as well as opposite-sex couples, who are not married and over 62, will begin the escrow process assuming that because they’re registered as domestic partners in their home state (or perhaps were married in Canada) that they qualify as domestic partners in California. This is false and can result in the buyers having to vest title as single persons.  It may be an option for the buyers to go through the process of registering as domestic partners with the State during escrow in order to hold title as community property, but this can run the risk of delaying escrow as there is time and hassle associated with appearing in court to file the appropriate papers, etc.  If buyers are aware of the facts surrounding domestic partnership ahead of time, they can register on their own time and save everyone involved stress and delays in order to take title as community property.

By clarifying California’s domestic partnership rules and regulations to your buyers, you will help them create a lasting financial arrangement that properly and legally reflects their relationship.

To be registered domestic partners in California, both persons must:

• Have a common residence;
• Agree to be responsible for each other’s basic living expenses;
• Neither be married, nor a member of another domestic partnership;
• Not be related by blood;
• Be at least 18;
• a: Be members of the same sex, or
  b: If at least one is over age 62, be of opposite genders;
• File a Declaration of Domestic Partnership with the California Secretary of State wherein each partner must consent to California court jurisdiction if the couple seeks a dissolution or nullity of their relationship.

It’s also important to consider certain clarifications to these stipulations:

• Legislators limited domestic partnership for opposite-sex couples to only those where one partner is over aged 62 in order to protect benefits like Social Security.
• To be eligible for the rights and responsibilities of domestic partnership, under California law you must be registered with California’s statewide registry. The state of California does not recognize same-sex marriages performed in Canada or domestic partnerships registered in other states in the U.S., nor does it offer the benefits to couples registered as domestic partners by cities within California.

It is important to keep in mind that there are potential tax and other legal implications to how you take title in the purchase of property.  The implications are generally unique to the specific situation at hand and we at Glen Oaks Escrow advise buyers and sellers to consult with their CPA and/or attorney for advice pertinent to their specific situation.

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In early October, while at the California Association of REALTORS Expo in San Jose, I had the opportunity to chat with Albert Tran, the Director of Training and Technology Services for CAR who talked to me about the new release of Zipform 6 (the re-branded, and improved Winforms) on November 16^th.  If you are part of the 30% of the C.A.R. membership who is still hand writing your contracts, the new release of Zipform 6 is the perfect opportunity to take your contract generation digital.   Take a look at this video interview with Albert to learn more.

Albert’s key points include:

• November 16^th is the release date and CAR members can choose to optionally update at this time.  The update will become mandatory early next year (February or March 2010)
• Winforms is being rebranded to “zipForm 6″ – all the functionality you are used to with Winforms, but a new name along with some added features.
• zipForm 6 is both PC & Macintosh compatible
• zipForm 6 will have the same user interface for both the desktop and web versions of the software
• zipForm 6 is compatible with DocuSign electronic signatures
• More information can be found here:  http://www.car.org/winforms/

If you are new to zipForms and WinForms software, there are several upcoming zipForm 6 webinars that are free for CAR members.  The webinar training schedule and registration links can be found here on the CAR website.

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Within 48 hours of receiving a contract, Glen Oaks Escrow mails out an opening package to both the buyer and seller. These packages contain “homework”, i.e. paperwork that escrow needs back promptly in order to move forward and ensure that a transaction closes on schedule. It is integral to all deals that the buyers and sellers expect to receive these packages and understand the importance of returning them to escrow as quickly as possible.

Some of the information that the packet requests from the buyer includes:

• the vesting form describing how title to the new property will be held
• contact information for the lender or mortgage broker
• insurance details

From the seller, our opening package forms prompt for details such as:

• contact information for the HOA
• contact information for the lender on the first and, if applicable, second loan
• any applicable tax withholding details like the 1099 form
• directions on how to distribute the proceeds from the sale

Much of our work at Glen Oaks Escrow can’t begin until we have these documents completed, so in order to ensure an on-time escrow process, return your opening package documents within 3-4 days of receipt. For sellers who want their proceeds promptly at the close of escrow, and for buyers who want the keys to their new property, completing the opening package promptly is the best way to ensure that everyone gets what they want, when they want it.

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What is a blog and how does it relate to real estate? You aren’t the only one asking.  As I talk with Realtors about social media, this is one of the most common questions I get.   Blog is a contraction of web log.  In its simplest of descriptions, it is a type of website.  It is a type of website that allows for entries to be posted (like journal entries, or articles) that are commonly displayed in reverse-chronological order (By the way, you are reading a blog right now).  Blogs are a type of social media – this is because blogs allow for interaction with readers because they can post comments on articles which creates the opportunity for interaction with your blog audience.

Blog Terminology Basics:

Blog (noun):

A type of website that allows for entries to be posted (like journal entries, or articles) that are commonly displayed in reverse-chronological order.  For example, this article you are now reading is part of the Glen Oaks Escrow Blog.  Blog entries remain indefinitely on the site and are always available to readers.  Often, blogs allow for the current article to be distributed to its readers via email in addition to always being available on the site.

Blog/Blogging (verb):

To maintain or add content to a blog.  Example:  I “blog” by writing the weekly technology tip series of articles that you are reading on the Glen Oaks Escrow Blog.  Or, Stacey is blogging this week about the topic of Social Networking for Realtors.

Blogger (noun):

The person who generates the content for the site.  I, Stacey Harmon, am a blogger because I am writing this post.  Also, many of the escrow officers from Glen Oaks Escrow are bloggers because they are generating posts about escrow topics like “The Closing Statement Exposed”

Post (noun):

This is the term most often used for a particular entry, or article that appears on the blog.  Posts typically will have a headline, an author, and the article.  For example, right now you are reading a post titled “What is a Blog & Does it Relate to Real Estate?”, authored by me.  The most recent post appears at the top of the blog.  The post is also classified part of a particular category (in our case, some of our categories are “Escrow”, “Technology Tuesday Tips”, and “Events”).  These categories make it easy for you to find a post on a particular topic after some time has passed and the post is no longer at the top of the page.

Subscribe (verb):

One of the great features of blogs is that readers can subscribe to the site.  Many of you are reading this post in your email – that is because you are subscribed to our blog, meaning you don’t have to go to the Glen Oaks Escrow blog to read the new posts.  Instead, they come straight to your inbox.  As you find other blogs on the web, they will also have the ability for you to put in your email address and have their posts come directly to you – keep an eye out for this.  It makes staying updated very convenient! (Sometimes the subscribe functionality is presented as “RSS” – this is an alternative way to subscribe to the site, and wording to look out for if you don’t see the word “subscribe” on the site)

Who Blogs?

These days it seems that everyone is blogging:  The Administration, Martha Stewart, Mark Cubin, The Desert Sun, and Glen Oaks Escrow.  Blogging has grown exponentially over the past few years.  According to the New Media Lab 2008 Social Media White Paper, there are 184 million people worldwide that have started a blog, 346 million people read blogs, and 95% of the top 100 U.S. newspapers have reporter blogs.  In addition, there are roughly 1 million blog posts every day.

So, How Does Blogging Fit with Real Estate?

For Realtors, having a blog offers the opportunity to express and establish their expertise out on the internet (where we all know buyers are looking, and sellers are wanting their listings to be), rank well with Google (blogging is by definition VERY search engine friendly), reach a geographically wide audience, and/or target specific niches, all in a very financially affordable way.  Compared to print marketing, blogging is cheap (it can even be free!).  But, keep in mind that blogging takes time.  And, you should have an average, or above average, ability to write.  If you are not developing content that people want to read, you are not going to have an effective blog.  So, blogging may or may not be the right decision for your business.  However, even if you decide that a blog isn’t going to be a part of your current business plan, understanding what a blog is, and reading blogs, can be a very helpful in your education process and real estate career.  There are some outstanding blogs focused on the real estate industry.  I highlighted one last week. And, for the curious, here are a few more:

Real Estate Blogs to Check Out:

Realtors:

• Miamism:  Maimi real estate blog by Enrique Garcia & Ines Hegedus-Garcia
• Phoenix Real Estate Guy:  Jay Thompson’s blog on all things Phoenix Real Estate
• First Time LA Home Buyer:  Great niche marketing blog by Los Angeles Realtor Nick Segal
• Active Rain:  Over 160,000 Realtors and affiliates belong to this site and blog about all things real estate.  This site is a great way to get started blogging. Blogging at their site was free and easy, but now there is a moderate monthly fee for new accounts if you want the public to see it.  I still think that it is an excellent way for Realtors to start blogging, however.

Industry News:

• Inman News
• Bloodhound Blog
• Agent Genius

Another Perspective – Blogs In Plain English:

Also, Common Craft has done a great video illustrating the concept of blogs.  It isn’t real estate specific, but does a great job of showing how blogs came to be and the value that blogs provide.  It is well worth the 3 minute watch:

If you think that blogging might be for you, stay tuned. Future posts will discuss great ways to get started with blogging as well as vendors who can help you execute a full blogging strategy.

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Whether you are a REALTOR considering getting into the niche business of dealing with REO’s, a buyer looking to find a deal on a home by seeking a foreclosed property or a seller looking for information on what happens when a foreclosure proceeding is started, you need to know and understand the foreclosure process. By understanding this process, you will know how long the process may take, which entities are involved, and when the proceedings can be halted. Below is a simplified version of the process.

Defaulting on one’s loan causes the start of foreclosure, the process by which the lender takes over the home in order to recover their principal investment. Once the house is either sold on the steps of the title company or the court house at the Trustee’s Sale or “repossessed” by the lender, it is sold and the former owner must vacate at the discretion of the new owner. When there is a power of sale clause in the deed of trust the non-judicial process of foreclosure is used.

Notice of Default:

In California, the timeline of non-judicial foreclosure begins when the trustee files a notice of default. This is a letter that is sent to the owner/trustor notifying him or her of their default of the loan. This notifies the owner of the intent of the lender to follow through on their right to collect on the debt. The copy of the notice, which is recorded at the County Recorders Office of the appropriate county, is mailed to the address of notice as per the deed of trust.

Notice of Trustee’s Sale

No sooner than ninety (90) days after the trustee records the Notice of Default, the Trustee must publish a notice of trustee’s sale in the local paper and simultaneously file that notice with the county recorder’s office. No sooner than twenty days (20) after the notice of trustee sale is filed, the home may be sold at public auction for the amount of the debt plus foreclosure costs. If no one bids at the auction, the lender assumes ownership of the property, and may dispose of that property to recover their cash investment.

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This week, I’m bringing to your attention to AgentGenius.com – a online real estate industry magazine that discusses “what’s hot in technology, new and inventive real estate business models, the nature of the real estate industry, hot topics that impact consumers and so much more…”

The site has great contributors including a host of agents who are actually making money by applying social media techniques to their real estate business.  You will also find content related to real estate coaching, ethics, marketing, tech & new media, mortgage, and more.  The days of the Realtor magazine delivered via snail mail have evolved.  You can now get up to the minute articles and discussions about what is happening in the industry right now.  It is a great site!

And I’m not the only one who thinks so.  Inman News awarded them an Innovator Award for 2008.  So, AgentGenius.com is definitely a site to watch, one to bookmark, and if you are so inclined, one to subscribe to (just like you can or have subscribed to this one – why not have the information come straight to your email?! – if you have no idea how to do this, just send an email to stacey@staceyharmon.com and I’ll be happy to help you).

Happy reading!

Interested in what you are reading? To automatically receive these Tuesday Technology Tips in your email box, subscribe to these articles at the top right corner of this site (www.glenoaksescrow.com) in the box titled “Subscribe via Email”.

In these tough economic times, many homes have been languishing on the market, making it difficult for Sellers to move on to other homes and locations. In order to make a sale, a Seller can offer to do a “carryback”. A carryback loan, also known as a “seller carryback” or “seller’s second”, is a loan which is financed by the Seller of a property to help a Buyer purchase the house. Normally, this aids in the completion of the sale of the property. It could also refer to the part of the purchase price the Seller is able and willing to finance for the buyer.

For instance, the typical seller carry back situation is 10% down, 10% seller carry back and 80% first mortgage. This is a percentage of the purchase price. An example is a $1,000,000 house would have a $100,000 down payment, a $100,000 seller carry back and a $800,000 conventional first mortgage deed. Another scenario for a seller carry back is if the seller owns the property free and clear and the seller carries a first mortgage or trust deed. Sometimes there is a first trust deed which the buyer can take over and the seller carries a second mortgage.

Utilizing a seller carryback works well when the Buyer cannot come up with a big down payment or they may not fit into the “conventional” loan process because of their career or past credit history. Understanding the potential pitfalls of doing a seller carryback, but also knowing the rewards, is crucial to this type of sale. In a seller carryback scenario, both parties need to exucute an All Inclusive Trust Deed.

An “All Inclusive Trust Deed” or AITD is a “Seller Carry” that “wraps” or includes an underlying loan or loans of record. It is usually recorded at the close of escrow with a Grant Deed conveying full to title to Buyer and Title Insurance is issued. The AITD’s face amount includes the unpaid balance(s) on underlying encumbrances, plus the remaining unpaid balance of the Sellers equity.

Sellers remain responsible for the payment on the underlying loan(s) or until they are paid in full. The Sellers equity position in the note is always the difference between what is owed to the Seller and what the Seller owes the underlying lender.

The AITD becomes a junior trust deed, subordinate to the underlying trust deed(s). The inputed interest rate (9% or applicable Federal securities rate, which ever is lower) is the minimum interest rate allowed for Seller financed transactions. The Documentary Transfer Tax on the grant deed is based on the purchase price LESS the liens of record.

Advantages:

The Buyer does not need to qualify for a loan with a lender and closing costs are minimal. The Seller has advantage of installment sales income tax recording method, so long as payments are received in more than one tax year. The Seller, by agreement in writing with buyer, may prohibit prepayment of up to a 12 month period following the sale.

Because the underlying loan(s) may have a lower interest rate, or may have been paid down considerably, the Seller’s effective interest rate yield may be higher than the actual note rate. The Seller benefits from the “Interest Override” which is the difference between the interest rate on the existing loans of record and the rate negotiated on the AITD.

Disadvantages:

Recording may alert an underlying lender to enforce the “Acceleration Clause” or “Due on Sale Clause” and require the underlying loan to paid in full. At this time, the underlying loan would be considered in default and said lender could start foreclosure proceedings.

Paying off an AITD:

There are two types of AITD payoffs: Equity Payoff and Full Payoff.

The AITD should not be reconveyed until such time as any equity of the seller and the existing deed(s) of trust have been paid in full. At all times the seller is responsible for the underlying loan(s) of record, since there has been no release of liability given by the existing lien holder(s). Any late payments and/or default, will reflect on the Seller’s credit accordingly.

Being able to sell a house quickly by not having to wait for a mortgage company to approve a buyer or having to rely upon an appraiser to come in with the “right” price can sometimes make this type of an arrangement attractive. However, be sure to consult a real estate attorney and professional tax advisor on the implications (or benefits) before entering into a transaction.

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California REALTOR Expo 2009:

The California Association of Realtors Annual Trade Show and educational summit (CAR Expo 2009) runs from Wednesday, October 7^th – Friday October 9^th at the San Jose Convention Center.  The event is California’s largest real estate trade show and draws “thousands of California’s key franchise executives, top producers and movers and shakers every year for educational networking, and professional development opportunities”.  The Expo website If you are interested in learning, getting a pulse on the trends impacting real estate today, and networking with agents and real estate influentials from all over the state, the CAR Expo is the place to be.

• Conference Website:  http://expo.car.org
• Dates:  October 6-8, 2009
• Registration:   http://expo.car.org/register.html
• Twitter Account:  @CAREALTORS
• Twitter Event Hashtag:  #CARExpo

Tech Tuesday:

This is a CAR sponsored, day long technology training preceding the official CAR Expo and is chalk full of technology training and tips to help REALTORS in their business.  Tech Tuesday sessions include:

• Text, Tweet, and Sell:  A Dialogue on Tech’s Possibilities for Today’s Agents
• The Benefits of Blogging
• Media is the New Marketing:  How to Attract the Right Attention
• Best Practices for Building an Online Presence
• Social Media and Social Networking:  A Guide for REALTORS

Further details on Tech Tuesday can be found here:

• Conference Website: Tech Tuesday
• Date:  Tuesday, October 6^th, 2009
• Registration:  http://expo.car.org/register.html
• Twitter Event Hashtag:  #TTCarExpo

If you are attending Tech Tuesday, be sure to join in on the Tweetup (a meet-up promoted on Twitter) at Tanq Bar (San Jose Marriott – within walking distance of the San Jose Convention Center) starting at 5:15 pm.  Come mingle with fellow Tech Tuesday attendees over a drink (everyone is responsible for their own food/drinks).  It’s free to attend and Tech Tuesday attendance is not required to join the Tweetup.  More info and RSVP list is here at Twtvite.

RE BarCamp Silicon Valley:

On Monday, October 5^th in downtown San Jose, there is a free, day-long event, that attracts the most progressive of Realtors.  RE Bar Camp was born from the desire for people to share and learn in an open environment.  There is no set schedule or topics.  Instead, the day is shaped by the passionate real estate professionals who gather and discuss how technology and social media can benefit the real estate business.  Any forward thinking Realtor who is interested in applying technology to their business should attend.  It is an outstanding way to network with industry elite and become engaged in discussions that can truly transform your business.  The event is free, but you do have to RSVP here to attend.

• Conference Website:  www.rebarcamp.com/siliconvalley
• Date:  Monday, October 5, 2009 8:30 am-4:30 pm
• Registration:  http://rebarcamp.com/siliconvalley/?page_id=6
• Twitter Hashtag:  #REBCSV

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To help avoid confusion, here is more information about the tax credit and the form that needs to be filled out in order to apply for the tax credit.

The credit:

• Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
• Applies only to homes used as a taxpayer’s principal residence.
• Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.
• Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
• The credit is claimed using Form 5405.

This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.
The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000 or $150,000 for joint filers.
For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.

The IRS has a new YouTube video about the tax credit and other resources that explain the credit in detail.

This is not intended as legal or tax advice. To fully understand the tax credit and apply successfully for the refund, please consult a tax professional.

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It is very common for REALTORS® to find the world of Web 2.0, social networking, and technology overwhelming.  There is so much new terminology and  new information and the technical landscape seems to move so fast.  The news talks about the latest “thing” be it blogging, Facebook, or Twitter.  How does one keep up?

This post is to remind you that the most obvious forum for finding the answer to your questions is right under your nose and is often overlooked: Google.  Google tends to have the answer to anything.  Not sure what that text acronym TTYL is that your client (or niece) is using?  Type “TTYL” into Google and you’ll have an instant answer.  Wondering what this Twitter thing is and if it is something you should know about?  Type in “Twitter for Realtors” into Google and you’ll get plenty of perspectives on how to decide if Twitter is for you.

Do you feel you get too many results or don’t seem to find what you are looking for when you search for a topic on the web?  Common Craft did a great video explaining Web Search Strategies in Plain English.  Invest 3 minutes of your time and watch the video to learn some basic tips that will help you find exactly the content you are looking for when you search the web.  It will not only save you time, but it will also open the door to answering any question you might have regarding technology, your real estate business, and this world of Web 2.0.

You might also want to consider Google-ing the name of the clients you are working with.  In a previous post, I discussed the merits of Google-ing yourself and how to set up a Google alert to track what is being said about you on the web.  With the proliferation of social networks and the boom in participation in them, many of your clients are out there and searchable on the web.  You may learn a thing or two about your clients that will help you to connect with them as you help them with their real estate needs.  Give Google a try!

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Fact:

The REO escrow must close on time.

Fact:

The escrow cannot be opened until the purchase agreement is uploaded to the sellers (banks) online REO system and made available to escrow to download. This can occur as late as 1-2 weeks after acceptance, which delays the escrow opening and in turn may delay the escrow closing.

Tip #1:

Upon acceptance, provide the escrow holder a copy of the signed contract. This way, escrow is able to order the reports prior to the opening of the escrow and while everyone is waiting for the signed contract to be uploaded into the seller’s system. This could be essential to the escrow closing on time.

Tip #2:

Although escrow is conducted in accordance with the terms of the contract and governed by state law, the seller controls the manner in which the escrow is processed. This is the reason that agents may not be able to choose their escrow companies when the property is bank owned. You will most likely be using an escrow company (like ours) who has been selected and approved by the seller/lender to handle REO’s. Bank approved escrow companies are required to undergo extensive training on the seller’s individualized REO system.

Tip #3:

Is anyone out there still not using email to conduct their transaction? If so, you must embrace email. Email is a basic survival skill for REO escrows. The escrow is conducted via email due to time limitations, and as stated above, the REO escrow must close on time. Therefore, time is of the essence! Email is an essential tool in support of a timely transaction.

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If you are either in the process of buying or selling a foreclosure property, understanding the basic terms associated with the process will help you ask appropriate questions of your REALTOR, the escrow officer, the lender and/or other parties involved in the transaction. This can expedite the timeframe of the process for everyone involved.

Below are the most common terms used in connection with the foreclosure process:

A Deed of Trust:

A Deed of Trust is the security for your loan. It is the document that is recorded in the public records.

A deed of trust contains three parties:

• The Trustor, which is the borrower
• The Trustee, which is an entity that holds “bare or legal” title
• The Beneficiary, which is the lender

The deed of trust is an instrument that identifies the following:

• Original loan amount
• Legal description of the property being used as security for the mortgage
• The parties
• Inception and maturity date of the loan
• Provisions of the mortgage and requirements
• Late fees
• Legal procedures
• Acceleration and alienation clauses
• Riders, if any, regarding such clauses as prepayment penalties or terms of an adjustable rate mortgage

Notice of Default:

Lenders file in the public records where the property is located a public notice called the Notice of Default. It states that the borrower is in default, behind in the mortgage payments, and if the payments are not paid up, the lender will seize the home. In California, lenders typically do not file a Notice of Default until the borrower is at least 60 days behind in making payments. Lenders must then wait 90 days. During that 90-day period, the borrower has the right to make up the back payments and reinstate the loan. After 90 days, the lender is required to publish a notice in the newspaper for 20 days and then may sell the property to the highest acceptable bidder on the courthouse steps. If no acceptable bid is received, the trustee then conveys the property to the lender.

Deed-in-Lieu of Foreclosure:

A potential option taken by a mortgagor (a borrower) to avoid foreclosure under which the mortgagor deeds the collateral property (the home) back to the mortgagee (the lender) in exchange for the release of all obligations under the mortgage.

Foreclosure:

Legal proceeding by which a borrower’s rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. The lender may then declare the entire debt due and owing and may seek to satisfy it by foreclosing. Foreclosure is commonly by a court-decreed sale of the property to the highest bidder, who is often the lender.

As we all know, foreclosures continue to be in the news and continue to dominate the market. This means that REALTORS, struggling homeowners, and potential buyers need to have information about the process and terms of foreclosure in order to make important decisions about the sale or purchase of a property. Knowing the terminology is an important step in that process.

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Are you texting yet?  If not, it’s time to get on board!

Why Text Message?

Text messaging provides a great, and increasingly common way for you to communicate with your clients and for them to communicate with you.  Maybe you want to confirm a showing with them, send them a quick message about a listing, or they want to let you know they are running late.

Texting can be very beneficial.  Here are a few reasons why:

• Time saver:  Texting tends to get right to the point (who wants to type out a bunch of pleasantries and small talk?).  A simple “be there soon” gets the message across quickly and succinctly alleviating the need to call and explain the situation.  Text messaging can also eliminate the need to carry on a long-winded conversation with someone.
• It’s Easier:  It is easier to simply read a message on their phone rather than have to call into a voice mail system to retrieve messages.
• Less Intrusive:  Texting can be a discreet form of communication especially when you or your client are in a situation where phone calls are inappropriate.  Texting provides a more subtle, less intrusive option than talking on the phone or in person.
• Not a Harsh Interruption:  Texting is far more subtle than a phone ringing (which would you rather have happen in a movie theater, for example).  The phone can be set to silent and the person can still read a new text message that comes in without the need to have the phone ring, or call into voice mail to hear what you are trying to communicate.

Considerations:

• Texting isn’t free.  Check with your cell phone provider for how much texting you have on your plan.  Do you have a limited number of text messages per month?  What is the charge if you go over your limit?  Generally it is about .10 – .15 cents per text which may not seem like a lot, but can add up quickly.  It may be more cost effective to switch to an unlimited texting plan with your cell phone provider.  Either way, it is something to watch out for.
• It is against the law to text while driving in California.  Don’t do it.
• Understanding texting will help you to understand Twitter.  Twitter is basically broadcast texting (you send one message, and multiple people can see it).  If you are comfortable with texting, you will be more likely to understand and be comfortable with Twitter.  And Twitter is starting to make a splash in the real estate world (more information on this coming in future posts).

Texting Vocabulary

You aren’t the only one who wonders what all those abbreviated words mean.  Texting has, in essence, a language of its own.  Brevity reigns in the texting world and in order to be able to decipher messages and send quick replies, you should know the common shorthand.  Here is a guide to some of the most common you will find in the texting and Twitter world:

2gtbt – too good to be true
2nite – tonight
b4n – bye for now
btw -  by the way
cu -  see you (as in cu l8r)
eod – end of day
f2f  -  face to face
ftr -  for the record
ftw – for the win
fwiw -  for what its worth
fyi – for your information
gtg – got to go
imo/imho – in my opinion/in my humble opinion
irl – in real life (often used in Twitter to reference meeting someone irl)
jk – just kidding
l8r – later
lmao/lmfao – laugh my a** off/laugh my f*** a** off (not the most charming of text abbreviations but very commonly used in conversational social media)
lol – laughing out loud
nbd – no big deal
oh – overheard
omg – oh my god
pls  – please
rotfl – rolling on the floor laughing
re – regarding.  Can also mean “real estate” depending on context.
thx – thanks
ttyl – talk to you later
ty – thank you
wOOt – hooray/congratulations
ur – your
yw – your welcome

:)  -  happy face for humor, laughter, friendliness, sarcasm
:D  – super happy/toothy smile, broad smile, etc.
:(  -  sad face for sadness, anger, upset
;)  – wink
:/  – wry face
:P  – tongue out for just kidding
((hug)) -  a hug
{{{{hug}}}}  – really big hug
<g> – grin
<3   – heart on its side to show love.  Ex: I <3 re = I love real estate

ALL CAPS = Yelling

Also remember that Google is your friend.  If you run across a text shorthand that you don’t know, just put it into Google and you are certain to get an answer.  You can also check out this Lingo 2 Word Translator.

Now that you have the benefits and terminology to successfully text, it’s time to give it a try. TTYL! :)

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1. Escrow isn’t officially open until the seller has uploaded the contract into the seller’s online systems, it’s been signed by both the buyer and seller, and it shows as a “task” in the seller’s online system to open escrow.
2. Escrow instructions, preliminary title and commission orders will be e-mailed 48 hours from the receipt of the seller’s fully executed contract.
3. Loan documents must be received 24 hours before the buyer’s appointment to sign.
4. Expect to wait up to 5 days from the buyer’s signing date for escrow to receive the estimated HUD approval from the seller.
5. Once approval is obtained, the file is set to record the following business day after the lender’s funds have been received.
6. Funds are usually distributed 24-72 hours after recording.  This timing is subject to seller’s approval of the final HUD statement.

Also important to keep in mind is that communication with Glen Oaks Escrow regarding your transaction is generally most efficient via email.  Email communication provides a written record and time stamp of the communication and allows your escrow officer to respond in a timely manner.

Understanding these details can help to set the proper expectations with buyers and help ensure that your next REO escrow goes as smooth as possible.

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If you are one of the 250 Million Facebook users, and you also have an iPhone, then last Thursday’s release of the Facebook 3.0 application for iPhone was an event you should pay attention to.  Apple approved the long awaited update to the Facebook application for the iPhone, giving users huge functionality improvements over the prior Facebook application.

For those who are using Facebook from your computer, this updated iPhone application extends the functionality you experience on your computer to your iPhone so you can keep current, interact, and connect from the field. And, as we all all know, the busy Realtor has a hard time finding the time to sit in front of their computer.  Now it is easier than ever to keep up from the road.

A full list of functionality improvements are available here at Facebook.com.  Some of the more functional ones for REALTORS on the go who are interested in using social media to build their business include:

• See your friends birthdays: For years, the personal touch of sending a birthday card has been a successful relationship building strategy. With the new iPhone application, you can easily see upcoming birthdays of your Facebook friends (have you friended any of your clients or prospects yet?) and wish them a happy birthday from the road.
• Call your friends from within the Facebook application: If your friend has their phone number in their profile, you can tap the number to call them without having to type in the number or look them up in contacts.
• Make friend requests: Are you at a party and meet someone who you want to friend on Facebook? No need to take their card and wait until you get home, now you you can look them up and send a friend request from the party.
• Like posts and photos: A cornerstone of social media success is engaging others. The new Facebook application makes it as simple to “like” posts and photos from your phone as it is from your computer. This allows you to effectively give quick feedback to your friends posts without having to be back at your office or home computer.
• Create shortcuts to your favorite friends and pages: If you are interested in keeping up with a particular client who is your friend on Facebook, you can now create a shortcut button that takes you directly to that individual users profile.

This list just scratches the surface of enhanced features.  So, head to the App Store from your iPhone and download the Facebook 3.0 application (by the way, the application is free), or download it here from your computer and synchronize your iPhone with your computer.  It is a huge improvement in functionality and usability.  Give it a try!

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REO properties are a hot commodity right now as roughly half of the foreclosures going to auction are reverting to REOs. More and more people are seeing that they can get a great price on an REO property and still enjoy a buying process that is very similar to buying a home in the traditional fashion.  However, because the property is owned by the bank or lender, in an REO purchase transaction, there are a few differences in the escrow process from a traditional home purchase transaction.

REO listings offer viewings and inspections just like traditional home buying; the big difference is really in the often rock bottom price and the closing procedures. This is because banks are not in the business of owning Real Estate; their interest is to resell the property as quickly as possible to avoid further risk exposure.  As a result, REOs come with a very strict and tight escrow timeline. Most REOs have a 30 day closing, in some states it can be 45 days, and either way banks are not willing to be flexible.

There are a lot of REO properties available right now so if you’re ready to buy and looking for a deal, now is a great time to consider an REO purchase. Your REALTOR can advise you on the opportunities and your Glen Oaks Escrow officer can walk you through a detailed explanation of the REO escrow process.

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A few weeks ago, I had a post that addressed Social Media for REALTORS, which introduced REALTORS to the concept of social media, and provided a case for why REALTORS should care about it.

In today’s post, we are going to address a related concept:  Social Networking.  REALTORS know the importance of networking.  It is the basis for many successful real estate careers.  And for the Realtor who is looking to evolve their business, or find new networking opportunities, the online world provides ample opportunities.  You just need to get started!

As a first step, here is a quick video from Common Craft that explains the concept behind online social networking:In today’s post, we are going to address a related concept: Social Networking. REALTORS know the importance of networking. It is the basis for many successful real estate careers. And for the Realtor who is looking to evolve their business, or find new networking opportunities, the online world provides ample opportunities. You just need to get started!

As a first step, here is a quick video from Common Craft that explains the concept behind online social networking:

As this video points out, there “are hidden opportunities” out there within your network and social networking sites make these opportunities more visible. Think this just might have some positive implications for a REALTOR?

I certainly believe so. There are great social farming opportunities for REALTORS today who embrace the popular social networking sites. There is a great white paper on Social Media Statistics available at the New Media Lab which summarizes the explosive growth of social networking sites over the past year. If you are ready to get started and participate in this new wave of networking, I suggest creating an account on two of the most popular social networking sites out there:

1. LinkedIn: This social networking site is probably the most professional and formal of all the sites out there. Once you have an account, you are able to search for people you know based on your current and prior jobs, as well as classmates from your educational past. There are many REALTORS on Linked In, and a great way to get started is to connect with others from your brokerage. The New Media Lab white paper reports that LinkedIn has 30.1 million users and site traffic grew 153% in 2008 and 319% since 2007.

2. Facebook: This social network has exploded in popularity, especially in the age ranges that are homebuyers. According to a June 20^th, 2008 Strategy Labs article, Facebook is experiencing explosive growth in the 25-34, 35-54 and 55+ age groups. The 35-54 year old segment grew 172.9% in 10 months – the other two mentioned are growing at a rate of 97%+. Facebook is less formal than Linked In and one of the most powerful features is the ability to share photographs with those you are connected to. You are likely to find some of your past clients on Facebook. If you find someone you want to connect with on Facebook, you send them a “friend request” and they will approve or deny the request. If they approve the request, you will then be “Facebook Friends” and you will have access to their profile.

One thing to keep in mind in social networking, a “friend” is not the same definition of a friend in the offline world. Friend is a very loose term in social networking. You may have never met your online friend in person before. But, you may share something in common that makes it worthwhile for you to connect together online. For example, maybe you both are golf fanatics and belong to the same golf club. You might reach out and connect with this person by sending a friend request (in Facebook terms). If accepted, you would be connected to this person and now you are “friends” in the online social networking world. You will need to pick your strategy to decide if you want to friend people who you know or not. For a few perspectives on this and some “online netiquette tips” take a look here, here, and here.

There is no time like the present to get started. Your next client could be just a friend request away!

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Escrow fees are part of a deal’s closing costs. Let’s explore the typical fees that can show up on a buyer’s closing statement, and help to avoid future cases of sticker shock.

Buyer’s Escrow Costs

Escrow Fees

This is the fee for the escrow service itself, usually a certain amount per $1000 of the sale price. With the escrow fee you are paying to make sure:

• The escrow agent is properly licensed in your state
• They have the knowledge, training and expertise to handle supplemental and unusual escrow situations
• Your escrow process follows all applicable laws, and the sale will be legal and valid
• The escrow agent is an independent third party, competent and trustworthy to caretake and disburse your money.

Loan Tie-in Fee

This fee provides for the escrow company’s time and supplies to print out lender documentation, comply with various lender requirements, and fill out and submit the forms and applications requested by lenders to facilitate the transaction.

E-Document Fee

More and more documents are being sent to escrow companies over the Internet, however they still need to be printed out in order to be archiveable and useful. This fee helps to defray document printing costs.

Processing Fee

Very few escrow situations come without any supplemental or unusual needs. Spouses, ex-spouses, grantees, trustees, business partners, extra government agencies or authorities, all may need to be dealt with in order to facilitate the escrow. All of these contacts take time and documentation. Most escrow companies include one or two added contacts in their escrow fee; a significant number of added contacts will result in a processing fee.

Archive Fee

Legal escrow documents need to be stored by the escrow company for a minimum of five years. This fee helps with the storage and retrieval of the large volume of paperwork involved.

Seller’s Escrow Costs

The seller’s closing statement contains escrow costs as well. The seller will have the same Escrow fee as the buyer, the same Processing and E-Document fees, and an Archive fee.

Closing costs from the escrow company are not a mystery, and don’t need to be a surprise, either. With a little bit of preparation and a phone call or two, both buyers and sellers can know in advance what their closing costs will be, and clear a potential obstruction on the way to a completed sale.

In today’s post, I wanted to bring to your attention one of the most outstanding resources out there for REALTORS® who are looking to stay informed on all things technology in our industry:  MyTechOpinion.com.

Their tagline says it all “Technology for Real Estate”.  Topics covered range from blogging, to hardware, to marketing, to software, to social media and beyond. In their own words:

At MyTechOpinion we dig through ALL those technology offerings to identify key products and services to benefit your real estate business. Let us be your real estate technology knowledge base.

Some of my favorite posts include (and ones that I think are particularly useful for today’s REALTOR®):

• 10 Social Media Lifeskills for Real Estate Professionals
• 4 Ways to Access Your Files Remotely (having trouble getting all your files in one spot?)
  
• A Real Estate Presentation in the Palm of Your Hand (highlights small, hand held projectors – digital listing presentation anyone?)
• How Neat Are Your Receipts? (discusses a product called Neat Receipts which helps you stay organized – think write offs!)
• Some Like it Hot [But Your Laptop Doesn't] (think an inexpensive laptop cooling pad might be helpful with that Desert heat?)

They also have a great resource list for those who are ready to get started in social media marketing.  Make life easy on yourself…they’ve already done the hard work for you and presented the best social media sites and technologies in an easy to understand list which sifts through the junk and highlights the best.

The authors of MyTechOpinion (Nicole Nicolay, Reggie Nicolay, and Chad Johnson) are recognized social media pioneers and respected industry professionals.  In my opinion, this is one site that should be on the radar of any REALTOR® looking to keep up with technology today.

Interested in what you are reading? To automatically receive these Tuesday Technology Tips in your email box, subscribe to these articles at the top right corner of this site (www.goeblog.com) in the box titled “Subscribe via Email”.

According to Merriam-Webster, escrow is defined as: a deed, a bond, money, or a piece of property held in trust by a third party to be turned over to the grantee only upon fulfillment of a condition.

Whether it is the buying and selling of a home, or the transfer of a business, the amount of legal documentation and financial liabilities can easily create confusion or differences of opinion amongst the buyer, seller and/or their representatives. This is why an impartial, third-party representative becomes essential to focusing on the facts and responsibilities that must be fulfilled.

With so many parties obligated to fulfill so many responsibilities in any given real estate transaction, it quickly becomes apparent why a neutral third party (escrow) is essential to a smooth process.

Escrow is the one who facilitates (just to name a few):

• drawing of escrow instructions which reflect the negotiated points of the contract and act as basis for execution of the property transfer.
• confirmation of clear title from the Title Company
• the recording the deed with the County Office
• filing paperwork with the proper municipalities
• the receiving of wires and funds to be disbursed

In addition to the above responsibilities, Glen Oaks Escrow views our most valuable function as acting as a personal liaison and resource for Realtors, buyers and sellers as they tread through the complicated and often technical world of buying and selling real estate.

When discussing social media, technology tools, and trends for Realtors, the term  “Web 2.0″ come up a lot these days. Today’s post is designed to define what Web 2.0 is and discuss why Web 2.0 presents opportunity for Realtors.

Before we can define Web 2.0…let’s discuss what Web 1.0 is. Web 1.0 is basically a website that is a brochure for your product or service. It is your offline company brochure or pamphlet represented on line. It is static. It is promotional. It says what you do or what you are selling. Most agents have a Web 1.0 website. I think this is an important part of a Realtor’s online marketing campaign – when your clients go to the web, they should find you. A web 1.0 website accomplishes this. However, it does not provide the new business opportunities that web 2.0 sites do.

So, then, what is Web 2.0? This definition is provided by Wikipedia: Web 2.0 is a “business revolution….caused by the move to the Internet as a platform, and an attempt to understand the rules for success on that new platform”. Web 2.0 websites and technologies often have the following words used to describe them: social, open, connected, feedback, community, networking, transparency, interactivity. Web 2.0 technologies (and the resulting websites) create a fundamental shift in the opportunities for companies (and yes, even Realtors) to do business. Web 2.0 offers the Realtor new ways of communicating with people. It offers the Realtor new ways of prospecting. It offers new ways of creating and building business. This is because the rules of the game are so very different than how Realtors sell offline and in a web 1.0 world (more explanation on this to come in future posts).

There are many websites that you have probably heard of (in real estate and out of real estate) that encompass web 2.0 principles. Sites like Facebook, LinkedIn, Twitter, even Match.com. And there are ways to use all of them to support and build your business because these sites provide the opportunity for interaction or connectivity with other people. In addition, there are many players in the Real Estate Web 2.0 space. Sites such as Trulia Voices and Active Rain are outstanding web 2.0 communities which offer great opportunities for Realtors. For a road map of the leading Real Estate Web 2.0 sites, check out this image by 1000 Watt Consulting:

I also find this comparison by Darren Barefoot between Web 1.0 and Web 2.0 useful:

• Web 1.0 was about reading, Web 2.0 is about writing
• Web 1.0 was about companies, Web 2.0 is about communities
• Web 1.0 was about lectures, Web 2.0 is about conversation
• Web 1.0 was about advertising, Web 2.0 is about word of mouth

To me and many others, Web 2.0 presents exciting new ways of doing business. And, for the Realtor who is looking for new opportunities in this challenging time, Web 2.0 offers uncharted territory and hope. There is a growing number of Realtors who are building their business and experiencing success by working and applying web 2.0 strategies (and a growing number who are thriving!). By reading this blog, you will be introduced to several Web 2.0 strategies and sites that you may want to consider adding to your real estate repertoire.

Interested in what you are reading?  To automatically receive these Tuesday Technology Tip posts in your email box, subscribe to these articles at the top right corner of this site (www.goeblog.com) in the box titled “Subscribe via Email”.

Last year at the Inman News Real Estate Connect Conference in New York City I heard Greg Robertson of Dwellicious state “Buying real estate is an inherently social process”.  So true.  Realtors know this.  Social farming has been a foundation of the successful real estate career since the beginning.  But, the day of networking at the PTA is evolving, and the world of technology has introduced a multitude of new social communities where many clients of today, and definitely the client of tomorrow, gather.  Adult social media usage is rapidly growing – from 8% in 2005 to 35% now with more participating every day.  In order to reach these clients, Realtors are well served to participate in social media.  And, there are many options.  My goal is to introduce you to several of them in the hope that you will find the ones that work for you.

Let’s start with a definition of social media.  I define it as this:  Technologies and digital platforms that foster social interaction, relationships, and feedback between people.  Social media is the use of electronic and internet tools for the purpose of sharing and discussing information and experiences with other people.   Here is a great video by Common Craft titled “Social Media In Plain English”:

There are many social media websites but a few lead the pack – current leading social media sites that Realtors should be interested in include Facebook, LinkedIn, YouTube, ActiveRain and Twitter.  Each will be discussed in more depth in future posts.

The National Association of Realtors has posted a great Field Guide to Social Networking for Realtors.  This is a great place to start learning more.   It covers the benefits of social networking through social media, has a social media basics section, and has a great overview of the leading social media sites that Realtors should be interested in.  Start there.  Ask questions.  Try things out.

You are already participating in social media by reading this post which is part of the Glen Oaks Escrow Blog.  But social media goes farther than simply reading a blog.  A conversation can occur if you simply type a comment on this post at the bottom of the page.  Interactivity.  This is the basic concept.  And a great place to start.

There will be much more to come in the weeks ahead.  I look forward to the conversation with you!

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