A FEW HOUSE KEEPING RULES FOR PROBATE TRANSACTIONS

Real Estate Education Training


THE CLOCK IS TICKING 

Some agents are not focused on time lines outside those noted in the more familiar Residential Purchase Agreement (RPA-CA) and some agents are not familiar with the Probate Listing Agreement (PL) or Probate Purchase Agreements & Joint Escrow Instructions (PPA).  I have received offers on the RPA-CA and have had to hunt down the buyer's agent to request that they prepare their buyer's offer on the Probate Purchase Agreement.  I regret this situation because it means that I do not have a complete package for the Personal Representative to review for that buyer.  I prefer to receive everything in a complete package with a pre approval letter, proof of funds and other items requested in the California Regional Multiple Listing Service (CRMLS) offering.  Buyer's agents will want to know that their offer is time stamped to guarantee immediate review but this is not possible if the offer is incomplete.

I present offers with the above noted information when complete to the Personal Representative in the order that they are received.  I also copy the Probate Attorney for their review, etc.  The Personal Representative and Probate Attorney also prefer reviewing only those documents in compliance with the CRMLS offering and have been vetted by Teer One Properties for completeness.

Hopefully, the buyers agent's offer will be accepted and we are now moving forward.  There are so many time lines and items to monitor with Probate offers. The key item that I want to mention at this point is the Probate Referee and the Lender's Appraisals.  It is recommended that the buyer's agent and lender are familiar with Probates.  Timely ordering  and receipt of the lender required appraisal for the Buyer's loan is a must.  A low lender appraisal may conflict with the Probate Referee's Appraisal.
Remember that all offers must be at least 90% of the Probate Referee's appraisal.    A buyer securing an FHA, VA or other loan where an appraisal is required by the buyer's lender should be done BEFORE the Court Confirmation of the Sale or the buyer may lose their deposit for failure to perform.  There are too many scenarios to note in this blog.  Please contact me via email (ProbateSoCal@gmail.com) with questions and I will be happy to assist and/or help you find someone with the information you require.

My Certified Probate Real Estate Specialist (CPRES) instructor Joe C. Ramos repeatedly highlighted the need for the entire team being familiar with Probates.  The Probate Attorney, Personal Representative, CPRES Probate trained Realtor, Lender and Escrow Officer must know the rules and time lines.  I will offer more Probate Tips from time to time for those interested in buying or selling Probates.  The more familiar everyone in the transaction is with the requirements the better.

Please visit my web site www.miketeer.com for additional information on Probate and other Real Estate information.



Michael Teer, Broker
Certified Residential Specialist
Teer One Properties, Inc.

(951) 313-5168

www.miketeer.com
ProbateSoCal@gmail.com

CalBRE#: 01523582/00843708

                                        "For Tier 1 Service - Call Teer One Properties"

Probates, REO and Short Sales

Real Estate Education Time:


Emotionally Charged Experiences:

The Real Estate business has experienced many cycles since my initial licensing in 1983.  Over the past 30 years I have sat down with families from many socio-economic groups experiencing so many wonderful events.   I truly smile when I think about those times after handing the key to a first time buyer. That experience made them jump for joy and thank me over and over again for helping them in their journey to homeownership.  Most Realtors recount those times with great pride.  Young families often crave a back yard, pool and/or other amenities of homeownership.   They may be fortunate to have Veteran or FHA Financing but some have saved the down payment and other costs over a period of many years.  In either case, owning a home is the family goal that few other possessions can equal.

The past 6 or so years have been more of a challenge.  There are still great memories of handing the key to a first time homeowner or helping an empty nester downsize to a smaller home.  However, there is also the saddening entrance of other clients - those impacted by the REO (Real Estate Owned) and Short Sale economy.   REO homes are basically Bank or Lender owned foreclosed properties. These transactions from time to time brought me face to face with the Cash for Keys and "underwater" homeowners who are leaving a home that they have lost.  Some are now having to do a Short Sale because they can no longer afford the payments due to loss of income, etc.  I sometimes hear from folks outside the transaction stating that in some cases the homeowner borrowed against the equity in their home.  Some critics mention the home being used as an "ATM" for travel or other expenses.  It does not mitigate the fact that the homeowner continues to pay for bad lending practices.  Banks have been bailed out and are doing business as usual after making millions of bad decisions.  The homeowner facing loss of home, poor credit/FICO scores, loss of income and other damage from this period will need to wait years before returning to their position of "credit worthiness".

However, the homeowners and others impacted by the poor economy will not see themselves doing business as usual for some time to come.  Ironically, banks/lenders that were caught and fined by the government for bad practices continue to post negative remarks on their victims credit reports.  This is really something that needs to be looked into by the government for the victims sake, as well as, to release those who were impacted from being denied future credit.

Realtors have always been there for clients needing emotional and objective Real Estate support.  Probate sales often place the Realtor in the room with love ones having to sell the home of a departed loved one.  Letting go of the place where they may have been raised is often a challenge.  Childhood memories abound when they talk about the photos on the fireplace or tour the home pointing out those items that they believe make the home a real find for a new owner.  These experiences can be filled with conflicting emotions.  We try to calmly listen to all the wonderful memories being shared, as well as, give objective advice on our services.  We know that no amount of money can make up for losing someone held so dear.  Yet, we as professionals must give objective, honest and essential information to the survivors that will allow them to move forward and get on with their lives for those still in need of their love and attention.

We are moving forward with renewed hope for a better economy.  Realtors are skilled and trained for all situations related to Real Estate but many like me prefer a balanced economy where the "educated and willing buyer meets the educated and willing seller"

Michael Teer, Broker
Certified Residential Specialist (CRS)
Teer One Properties, Inc.
(951) 313-5168 Cell
www.miketeer.com
ProbateSoCal@gmail.com