Greater Whittier Area Real Estate Blog

We have been watching the market closely, and the number of bank owned properties coming on the market in Whittier seems to have decreased. However, there are still many great deals out there to be had - for more information on current Whittier bank owned homes for sale, please feel free to visit our recent blog posts about the Whittier Foreclosure and Short Sales Market: "Whittier Bank Owned Homes", "Whittier Foreclosures and Short Sales", "Whittier Foreclosures" .

Purchasing a bank owned property can be a great deal, many of them are still selling below the price of a "regular sale". However, there are some things you should be aware of when purchasing a bank owned property:

1. Many times, the bank/owner will require you to get pre-approved by a particular lender before submitting an offer. Many of my clients are not too happy about that fact, first of all because they have to provide all their information to another lender yet again, it can take a little bit of time (which can be critical if it is a "hot" property), and they usually already have a lender they can trust. The reason why the bank/owners ask for this second pre-approval is to make 100% sure that the potential buyer is good for the money, they don't want there to be any surprises during the transaction that might lead to a cancellation - after all, they REALLY want to sell. Even though the bank/owner can make it a contractual prerequisit for you to get preapproved by a lender of their choice, they CAN NOT make you use that lender. However, many times those lenders offer great deals that are hard to beat by the lender of your choice.

2. Oftentimes, bank owned homes are in a state of disrepair: months of neglect while going through a failed Short Sales process, intentional destruction by the former home owners, vandalism due to it sitting vacant, or simply general neglect after the time it was vacated. Even though some of these problems are easily fixed, and a handy buyer could take care of most of them, many times there is a problem finding a financing source. FHA loans are a popular choice these days, especially for first-time-buyers, but FHA has strict guidelines on the property condition - even things that seem to be an easy fix can be a huge hurdle (no appliances, items in the bathrooms not working properly, leaks, etc.). HUD, the Department for Housing and Urban Development describes this situation as follows: "The purchase of a house that needs repair is often a catch-22 situation, because the bank won't lend the money to buy the house until the repairs are complete, and the repairs can't be done until the house has been purchased." (quote from the HUD website). Oftentimes the bank/owners will not make any repairs, especially if it is a "hot" property, they just list it accordingly and wait for an all-cash offer. However, there is a recourse - the FHA 203K loan. Not many lenders offer it, but it is available (you can contact us for a list of 203K lenders). The 203K loan is a Rehab loan, taylored to expand the opportunity of homeownership, for a 1 to 4 Family Dwelling that has been completed for at least one year and Condos that are within an FHA approved complex (with additional restrictions for condominiums). For a detailed explaination of eligible properties and other 203K Loan Program details, please visit the HUD website directly.

3. Due to the fact that the bank/owner has never actually lived in the property, the buyer will only get very limited information about the bank owned home. When purchasing a "regular" home, there are many disclosures about the property (such as the Transfer Disclosure Statement, the Supplemental Statutory Disclosure, the Seller Property Questionnaire, etc.) for the buyer to get a sound understanding of the overall condition of the property and any pertaining information. This is typically NOT the case when purchasing a bank owned home and the buyer needs to be aware of this. We urge all our clients to contract a professional property inspector and any other professional that will give them a clear picture of the property condition so that there are no surprises AFTER the sale is completed.

4. Another important aspect is your Title Insurance. Be sure to review the type of insurance the bank/owner is purchasing for you - not all insurances are equal and sometimes the banks/owners will go with the cheapest available which is not necessarily best choice for the home buyer.

5. Take a good look at the Purchase Contract. When making an offer on a bank owned property, your Realtor will use a California Residential Purchase Agreement (a standard form used by the California Association of Realtors, C.A.R.). However, very few banks actually sign those contracts - instead, they will send you back their own purchase contract for you to sign. Realtors are Real Estate Experts, however, we are not Legal Experts, so we urge all our clients who are interested in purchasing a bank owned property to have an attorney review the bank's Purchase Contract to make sure there are no surprises.

Happy House Hunting and be sure to keep this little list handy to avoid any surprises.

Would you like to receive a FREE list of all current Whittier bank owned properties? Just contact us and let us know which area and price range you are interested in, and we will get a list out to you right away - no commitment, no obligation!

Want to learn more about Whittier, Whittier neighborhoods, Whittier schools, and Whittier parks? Looking for a home in Whittier? Start your Whittier home search here! Thinking about selling your Whittier home or maybe relocating to Whittier? You will find everything on our state-of-the-art website!

Thanks so much for visiting our Whittier area Real Estate blog! Stay tuned for more Greater Whittier Area Real Estate updates!

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Warm regards,
Stephanie & Shirley

Stephanie Frymyer & Shirley Williams
The S & S Team
"Your Local Property Pros"
562-355-8120 & 310-308-6107
DRE# 01390458 & DRE# 01456658
http://yourlocalpropertypro.com/

Stephanie Frymyer
Realtor, SFR, ABR, SRES
DRE 01390458
Your Whittier Realtor (and surrounding areas)

Shirley Williams
Realtor, SFR, SRES
DRE 01456658
Your West Covina Realtor (and surrounding areas)

Main Street Realtors
DRE 01157065

The lyrics should have been something like "It hardly ever rains in sunny Southern California, but when it does, man, it's a mess!" ... If you have been following the weather reports you know what's currently going on in the usually so sunny SoCal: floods, mud slides, water spouts, etc. - not really things you'd expect in this area, but as you can see, they do happen. 

Even though you might think this would be the worst time to buy a house it is actually a great time! Right about now you probably think I'm nuts, right? But, there actually is method to my madness ... and I'll tell you why:

Most people try to purchase a home during the warmer months, with Real Estate in this area typically picking up around April all the way through late August and into early September (to get settled in before school starts). Most of us "locals" know where the high risk areas are but for first-time-buyers who are moving to a new city or relocation clients, it's a completely different story, which is why you should definitely consult a knowledgeable and experienced Realtor in the areas you are interested in.

During the summer, who would ever think that a beautiful, quiet canyon area with dry river beds would ever turn into a flood area with dangerous mud slides? Or even a home on a very "normal looking and level" street would turn into a "waterfront property"?

Granted, it is not the most convenient time to look for a home, but it will certainly open your eyes to certain aspects:

1. Condition of the roof: If there is heavy rain, you will most definitely be able to spot a leak in the roof. Look for discolorations on the ceilings or of course the obvious bucket that is not there for decorative purposes.
2. Check the bathrooms and any other drains: Do any of the toilets or drains seem like they are flooded or are holding excessive water? Do you notice a certain "eau de sewer" when touring the property?
3. Is there water damage (discolorations and stains) to any of the floors or walls?
4. Check the windows: Do any of them leak or allow water onto the window sill? If they are dual paned windows, is there water in between the panes?
5. Check the back yard: Is there a large retaining wall? Does the neighbor behind you sit a lot higher up than you? If so, where is the water that's coming down the hill going to? Is this really a Koi pond or just accumulated water that had nowhere else to go?
6. Check the drive-way: Is the property located on a downward slope? Where is the water coming down the street going to? Does it keep running along the street or does it create a pool in the drive-way?
7. Rain gutters: Many structures in SoCal were not built with rain in mind - don't be surprised to see a home without rain gutters, it is actually very common here. However, check the soil/landscaping around the house where the water comes down off the roof. Are there huge puddles that could push the water into the walls?
8. Basement: If you were lucky enough to find a house with a basement (yes, they are out there), be sure to check all the lower level rooms for any water damage.
9. If you are already in Escrow on a property, you might want to take another look at it and definitely check the Natural Hazards Disclosure for any flood potential.

Another added advantage is that the seller will undoubtedly know that you are a serious buyer - who else would go out in this weather?!

So if you decide this is the right time for you to find a home, as with all extreme weather conditions - be safe! Listen to the authorities - if they are telling you to stay out of a particular area or neighborhood, stay out! Turn on your TV and watch the local news, they will inform you of the potential flood and mud slide areas - if those are conditions you would NOT WANT to affect your new home, no need to drive out there and get stuck, you can watch the mess on TV and tell your Realtor to steer clear of that area.

Enjoy the rain while it lasts, I'm sure we'll be back to 80 degrees and sunshine next week!

Sincerely,
Stephanie & Shirley
Your local Real Estate Experts
DRE # 01390458 & 01456658
www.SereneFoundations.com

Realtor® & Real Estate Consultant
Member Employee Relocation Council (ERC®)
Short Sale & Foreclosure Resource Certified (SFR)
Accredited Property Stager (ASP®)

Christmas has come to the beautiful City of Whittier!

The Season officially started with the 15th Annual Grand Illumination on December 4th. The next milestone will be the 56th Annual Christmas Parade on December 12, from 10am to 12 pm (go to http://whittieruptown.com/wua/?page_id=2 for more information provided by the Whittier Uptown Association and a little YouTube video of past events).

The motto of this year’s Parade is “Commitment to Community” and will feature many local businesses that help make the City of Whittier such a wonderful place to live in. The parade runs down popular Greenleaf Ave, from Hadley down to Mar Vista. I will be there taking photos so be sure to check back in next week!

As the parade ends around 12pm, you'll have plenty of time to grab a bite to eat at one of the many great restaurants in the area - for a complete business directory, go to http://whittieruptown.com/wua/?page_id=130, and plan a wonderful and fun filled day with the family in the City of Whittier. One of my all-time favorites is "Crepes and Grapes", great French inspired atmosphere, yummy crepes, sandwiches, soups, salads and so much more! You can go to http://www.crepesandgrapescafe.com/ to see their complete menu.

  After lunch, take a stroll down Philadelphia to get to Newlin, where you will find the “Whittier Historical Society & Museum”. You can’t miss the it (see below), it features a beautiful mural on the outside of the building. There are many different things to see, the current exhibit is titled “Fly Your Colors – Patriotism in Whittier”, and there is also a gift shop where you can pick up a little something to remind you of this beautiful day in the City of Whittier. Open Saturday & Sunday, 1pm – 4pm. For more information, go to http://www.whittiermuseum.org/ or check out http://www.whittiermuseum.org/About%20the%20Museum.html to download a brochure of the Museum.

If you enjoyed the Whittier Museum, I am sure you will also like the famous “Bailey House”, located at 13421 E Camilla St. It is the home of the first Whittier settler, Jonathan Bailey, and was built in 1887. It was deeded to the City of Whittier in 1975 and was added to the National Register of Historic Places in 1977. It is currently run and operated by the Whittier Historical Society. For the complete history of the home, go to http://www.whittiermuseum.org/Bailey%20House.html. Open to the public Sundays, 1pm – 4pm.

And to top off this Christmas season, the City of Whittier has one more event to offer: the “Holiday Sonata” on December 19th, 5pm to 9pm, featuring carriage rides along Greenleaf and a Santa’s Village in the parking lot along Greenleaf between Hadley and Bailey.

Enjoy your stay in the City of Whittier!

Sincerely,
Stephanie & Shirley
www.SereneFoundations.com
DRE # 01390458 & 01456658