Real Estate Information

Many friends and clients have asked me about getting a “hot deal” at bank foreclosure auctions, as well as what these auctions are “all about.” I guess showing is better than telling so I shot this short video for you….or them…..or maybe YOU are THEM? Either way, I think you’ll enjoy it.

When we talk about bank foreclosure auctions we are essentially talking about 2 different types:

1. Trustee’s Sales – These are the ones you see or hear about on the “Courthouse Steps.” They literally occur there…on the steps of the County Courthouse. To actively bid you really only have to:

A – Show up

B – Bring a $5000.00 cashier’s check along with you. If you are the winning bidder, you have to be ready to close in 24 hours.  You better dang well have cash in hand or funding available immediately.

2. Bank Auctions – Here in St. George these take place either at the actual property or in some other location such as the Convention Center or a Hotel meeting space.  You have seen signs around town for these – Williams & Williams, Hudson & Marshall, etc.  The video above was taken at a recent Williams & Williams auction.

To bid on these properties you don’t haveto do much more than above, but the closing timelines are less stringent:

A – Register prior online OR onsite the day of. If you want to bid online you must register typically 24 hours prior.

B – Show up and confirm registration.

C  - Bring a $2000 - $2500.00 check. The difference here is that if you are the winning bidder, you often have up to 30 days to close. So YES, you can use a loan at this type of auction.

Do your Homework:

In either case, remember that you are entering in a binding contract when you go to an auction. This means you’ve GOT TO:

• Research physical condition of property, title issues, etc
• Have financing lined up. Planning to visit with a Lender for the first time AFTER the auction could cost you a few grand.
• If you can, hire a Realtor. On the bank Auctions discussed in #2 above, the Seller pays the Agent’s commission so you are NOT paying more to have an agent, but you get the benefit of a professional who knows the neighborhoods, contracts, property values and carries liability insurance in the event of a (heaven forbid) legal dilemma.
• Set a limit or "lid" on what you're willing to bid. If you say $100k, don't get swept up in the excitement and pay $105k.

These auctions are exciting - REALLY exciting, just make sure you are prepared in advance. Feel free to call or email me direct with questions about the auction process: 435-862-8467 or larkin@gostgeorge.com

So can you guess what that day is?

No, it's not Christmas - which happens to be (for most people) the MOST important day of the year.

#2 is..........THE FIRST DAY OF SCHOOL. (You can hear the Mothers cheering can't you?)

I love my kids and so does my wife, but that blessed morning when the kids put on their coveted new backpacks, shoes, maybe that one shirt they really wanted from Target, and make the neighborhood processional to the nearest school....well, it's magical.

It's also terribly nostalgic. I grew up in downtown St. George on 600 East. Walked to East Elementary, Dixie Middle School and Dixie High School after which I attended Dixie State College - I guess I'm a local?

Watch the VIDEO above for my thoughts on the whole back to school phenomenon.

Here is a link to the Washington County School District website if you need it.

Lowest Interest Rate I've seen

On that same fateful day we closed a transaction for a Buyer who secured a 3.75% 15-year mortgage...holy cow! I was in awe as was the Lender doing the transaction. Call or email me for details.

What will this fall bring to the St. George Real Estate markets? What are your thoughts?

This month's Keller Williams "This Month in Real Estate" looks at:

• A decrease in foreclosure filings
• how an increase in short sales might be playing a role in the number of foreclosures filed
• what the short sale process & timeline look like for a Seller (and buyer).

That last bullet is INVALUABLE info - check it out and be sure to share with your friends who may be buying or selling a short sale property. Many of you have heard me (or others) say "Short Sales Suck." I originally made that statement on May 12, 2008 - you can read the full article here: Larkin Group Short Sale Article.

That statement is still true in many ways, but the degree to which they suck depends on each Buyer's individual situation.

As always, we love your feedback and feel free to contact me directly with further questions: larkin@gostgeorge.com

"Dumbed Down" Transcript:

We're gonna keep this short and sweet, but don't misenterpret the length for poor quality. What I'm about to say regarding your mortgage could save you THOUSANDS:

In a world of uncertainty, 2 things ARE certain:

1. Toy Story 3 premieres this Friday.

2. Many people are getting mortgage refinances even though they have negative equity.

In this week's episode Jeremy Larkin talks about "how" people with no equity, even 2nd mortgages are getting refinances. I know what you are saying - "WHAT? You mean I can refinance my home even if I owe too much on it?"

MAYBE. It depends on if it's a Freddie Mac or Fannie Mae loan. Watch the video to learn more. This has recently come to my attention by way of some precious chat time with my one of my favorite Mortgage Professionals - Blake Bench of First Colony Mortgage.

On the Toy Story note, the Larkin Group has got to rednezvous with Star Command...AND grow their Facebook fan base to 200 members. If we hit that mark by the end of tomorrow, we will be drawing for a $50.00 Toy Story 3 Ticket package!

How do you do this? Just visit our facebook page: http://www.facebook.com/pages/Saint-George-UT/The-Larkin-Group/84042546052  Check the page out. If you like it and feel like we are sharing an important or authentic message, click "like." If you dont' like it? Well then don't - it's your call!

THEN simply click on the "suggest to friends" tab on the left and follow instructions.

Until then, here is a link to Blake's full video report on refinancing your potentially underwater mortgage: Southern Utah Home Loans

Basic Transcript: Greetings from Vernon Worthen Park! The St. George weather forecast for today is 101 and 73 - I can guarantee that the 73 has long passed.

So what do you do about your Bank of America loan? For starters, do NOTHING. Here is what I mean:

It is completely (and highly) possible that many homeowners with troubled Bank of America mortgages will do something dramatic like stop paying their mortgage or stop communications with the collections department. Whatever you've BEEN doing, keep doing it, then contact your Mortgage and Real Estate agents (especially those Short-selling) and say: "what is our plan?"

Been paying your mortgage? Keep doing so. Not been paying? Keep doing so. Banking (pun not intended) on the Government or any other entity to swoop in and save homeowners has proven an unpredictable proposition at best.

Any Realtor or Mortgage person worth their weight in salt can provide perspective and guidance, if not a firm plan of action. This is wonderful that Utah is taking the lead on this issue, but do you have ANY idea how many Attorneys B of A has working for them? I shudder to think.

Is it possible?

This injunction / legislation / lawsuit MAY stick, it may not, only time will tell. It's a VERY interesting development though and I see it as the first domino in a long line of similar actions that could dramatically change the face of the real estate landscape across the landscape.

If you don't have a Realtor or mortgage person you feel confident in, feel free to contact me by email or phone with any questions, just don't do anything crazy.

Do you have close friends or family who will be affected by this Bank of America mortgage stuff?

Full article from The Spectrum: http://www.thespectrum.com/article/20100607/NEWS05/100607004/1002/rss

Is a distressed property the right deal for you?

With the first-time homebuyer tax credit deadline having come and gone, you may be asking yourself, “What now?” Fortunately, the door is now open to a new wave of savings: distressed properties.

How distressed did you say it was?

For many buyers, the term foreclosure brings up images of run-down homes with no heat and rotting wood. While this is still the case for some homes, it’s no longer the standard. In fact, first time buyers are snatching up distressed deals in decent condition for great prices. 

Better than you thought? This is a foreclosure listing we recently sold in Ivins - pretty darn nice.

According to a November 2009 Keller Williams Research Buying Distressed Properties Survey, 40 percent of all buyers for bank-owned foreclosures (REOs) were first-time buyers in 2009. 50 percent of all short sale buyers were first-time buyers.

Did you hear that!?! See, most first-time or inexperience Buyers automatically think, "I can't buy a foreclosure, I don't know what I'm doing." YES, you can with the help of a good agent. And the statistics above prove that many new Buyers are doing just that.

By definition, a distressed property is one that was purchased with a loan and the homeowner is no longer able to make their mortgage payment resulting in foreclosure – or if they’re lucky a short sale – meaning they owe more on the home than it’s currently worth. With a 20 percent increase in foreclosures from 2009, distressed properties still remain a large portion of home sales and are going to continue well into 2010 as homeowners continue to feel the effects of an economy on the mend.

If you’re in the St. George Real Estate market for a home and are prepared for a unique transaction, a distressed property can be a great option. Here’s why:

Prices are low – Buying a foreclosed property is an excellent way to get a home for less. Research shows you can save 10-40* percent over the price of similar properties in a traditional sale. (I put the asterisk in because we have to define "savings" in the correct method, but that's something we can do another time.)

Mortgage costs are low – With rates hovering near historic lows, financing costs to are favorable. Keep in mind, rates are always changing. It’s important to begin the pre-approval process so that you know how much you can realistically afford.

You have options – The number of homes in some stage of the foreclosure process still remains high. RealtyTrac, a site dedicated to tracking foreclosures across the country, estimates that there are approximately 2.1 million homes in some stage of foreclosure in the United States.

Sellers and lenders are motivated* – According to data from RealtyTrac, in April, one in every 387 households in the country has received a foreclosure filing. The bottom line is that many sellers are still feeling the pain of a down economy and are anxious to out get from under a home that is putting stress on their current financial frustrations. While it is still an emotional transaction, these sellers are willing to come down on price or even consider concessions such as helping out on closing costs. (Again, the asterisk - we also have to define "motivated" and how that shows up in the market.)

Banks holding on to large portfolios of Real Estate Owned (REO) properties want to unload quickly – and price these home to sell.

Your best ally when purchasing a distressed property is an expert. Is that me? Well I guess you will have to make that determination on your own, but for what it's worth, I was delivering pizza and newspapers to most of these foreclosure-stricken areas before most agents had even heard of St. George....just sayin'.

Regardless of the agent you ask to assist you, I wouldn't even think about going that road with out an agent who has serious experience in that area. ESPECIALLY because it won't cost you any more than going solo.

Distressed properties are not the only great play in the St. George Real Estate Market, but they certainly can be one of the best.

Email me any questions you have previously felt too stupid to ask! larkin@gostgeorge.com And remember: There are no stupid questions, just stupid people!

Just kidding....kind of.

So in case you've been living in a cave or as Castaway on a far-away island, you're very aware that the US Housing Market crashed big time in the past few years. There have been many, many arguments over "why" this foreclosure crisis is the way that it is.

Some have blamed Lenders, others Real Estate Agents, many the government, and of course many feel is was just our good old fashioned American "greed" that caused the markets to puff up like the Goodyear Blimp. 

Did banks prey on unwitting consumers, or did households “overreach” and borrow more than they could afford? Economists at the University of Arkansas recently completed a study to answer that very question.

So what did they find? While they do NOT excuse the behavior of banks and other predatory industry idiots, they found that the #1 cause of the foreclosure crisis was that CONSUMERS JUST PLAIN OVER-REACHED in their borrowing. Here is a link to the full report: University of Arkansas Foreclosure Study

I'm not surprised. I happen to know a little bit about consumers since I AM ONE!

What you can AFFORD vs. what you QUALIFY FOR

That is the real question of the day, and the two are very different. Understanding the difference, will make the difference in being a happy, contented homeowner pursuing the American dream, and one who is facing the pains - financial and social, of foreclosure.

Here is a fantastic video clip by one of my favorite Mortgage Professionals in the world, (Blake Bench of First Colony Mortgage), on how to avoid that very same over-reaching. Check it out!

Click on this link:  How Much Can I Qualify For?

Lesson? Know what you can really afford, not just what some online mortgage calculator says you qualify for, then stay within that affordable range on your next home purchase!

Feel free to contact me directly with questions - larkin@gostgeorge.com, or shoot Blake Bench an email: blakeb@firstcolonymortgage.com

GREAT report! In this month's issue enjoy tips & info on the following key points:

• 1st-Time Buyer Tax Credit Expired on April 30th - What will this mean for Sellers and Buyers?
• What the #'s are telling us about the current market: 1st-time Buyers made up 42% of all purchases in February, and Investors made up 19%.
• 3 Key Tips for Selling Your Home in this current housing market

In a brief and important departure from regular old real estate stuff, I wanted to share with you what might be most special and unique about the Brokerage I work with - Keller Williams Realty International.

It's called "Red Day" and will be taking place in every single city in the United States and Canada where there is a Keller Williams Realty Office.

What is Keller Williams RED Day? 

(Renew, Energize and Donate) Day is a Keller Williams Realty service initiative dedicated to improving our local communities. Keller Williams Realty asks all of their associates in the US and Canada to donate their time on May 13, 2010 to renewing and energizing aspects of their local communities.

On May 14, 2009 we logged over 100,000 community services hours on Red Day!!!

Our vision for this day is that all Keller Williams associates will actively engage in a coordinated effort to improve their local community. Activities may include rehabbing a house, cleaning up a local trail, providing food for the homeless, or any other service related activity needed in your community. This will be one of the single biggest events ever undertaken in the real estate industry.

Keller Williams Realty St. George Project

Our St. George Keller Williams Realty office will literally be CLOSING ITS' DOORS on Thursday May 13th to complete our project - The planting of a full garden at Porter's Nursing home, located at 126 W. 200 N. in St. George.

The people at Porter's have told us that a garden is exactly their their residents need to keep themselves busy and feel like their time and existence has "value." We are SO PLEASED to be doing this! I dont' know much about planting a garden, but I can use a shovel, rake and hoe!

We are inviting ANYONE from the community to is interested in participating to join us! Just shoot me an email: larkin@gostgeorge.com, and we can discuss the opportunity.

Watch out this Thursday cause we're painting the town RED!! If you'd like to see a REALLY neat video about this special event, here it is, just don't forget to grab a tissue.

PSS - Check out this video invitation our C.O.O. Mary Tenant sent to Michelle Obama! http://www.youtube.com/watch?v=Wg1uDCItgNU&feature=related

Video of my day at Ironman (if you can't see it, try clicking HERE).

Wow, WHAT A WEEKEND!!!! It's amazing to see our community buzzing like never before. I have talkd to person after person who were literally moved by the event. The St. George marathon has always had that effect on St. George, but never quite like this.

Volunteers and "Dixie Spirit" were the glue

My theory on the raging success of they day is this: Volunteers + "Dixie Spirit" = indescribable community synergy.

Alot of (negative) people want to brush off "Dixie Spirit" as something of the past and often focus on the connotations of the "Dixie" of the deep South. We're talking about the "South" of Utah - St. George, which got the nickname hundreds of years ago when Pioneer Settlers left the Salt Lake Valley to head far south and begin harvesting cotton.

The St. George energy and spirit is palpable and quite frankly, indescribable. It just...."is" and very few communities enjoy something like it. It's what causes thousands of people to show up in town for a vacation, marathon or golf trip and say, "we better move there!"

The Ironman St. George event required nearly 4000 volunteers and their the Ironman volunteer recruitment effort was different than anything we've ever seen before.

What they did was recruited sector "Captains" for each area, aid station and segment of the race. For example, I was over the "wetsuite peeling" crew at transition #1, someone else was over the men's change tent, someone the womens, etc. 

Those individual Captains were in charge of recruiting their needed # of volunteers - 20, 60, 40, whatever the #. So, when race day came, volunteer director Colby "Bags" Neilson (who was incredible by the way), was able to actually smile and enjoy the event because instead of worrying if 4000 volunteers were showing up, he simply had to ensure that is Captains showed up, who ensured that the others showed up.

The other benefit of this system was extreme loyalty. A good percentage of the Ironman volunteers knew their Captain personally and thus took greater ownership in showing up and doing a good job. It's brilliant!

Regarding the Ironman St. George volunteers, Paul Huddle, former professional Triathlete and Event Director told me in an email after, "We need to clone all the volunteers here and take them on the road."

They told us off the record that they had NEVER seen such a great volunteer effort. That speaks volumes about Utah's Dixie and the people of our great community.

I rec'd this message from a buddy after the race when I asked him how his volunteering effort went: "I will never forget that day, from life guarding on the finish dock and seeing every swimming come through and do everything you can you encourage them to the finish and then to top it off helping them at the end.  I didn’t want it to end, to be able to share that time with them right after what they had gone through was truly amazing.  To see how thankful each finisher was of all the help through out the race was great and how they couldn’t have done it with out all the support."

Who really won?

The winners of the race were Michael Weiss of Austria in 08:40:08, and Heather Wurtele of Canada in 09:35:25 That is FAST. SICK fast. I had the chance to talk with Weiss on two occasions and he is a class act. When my kids wanted a picture with him after the victory he threw my 5-year old right on his knee!

From what I read and hear about Heather Wurtele, she seems just as classy he. Congratulations to the two of them for their amazing victories.

But the REAL winners of the innaugural Ironman St. George are the volunteers, directors, city officials and staff who all combined efforts, manpower and brain power to put together a world class event that wil have people talking about our area for generations to come.

Congratulations Ironmen, local race and volunteer directors Jeff Gardner and Colby Neilson, and all of Washington County for an incredible event. I can't wait for next year either!

*For more Ironman, Real Estate and other St. George area videos, visit us at: http://www.youtube.com/larkingroup