The short sale on Verdugo in Burbank has closed, and my nightmare is over.

Well, okay, 2012 W. Verdugo in Burbank wasn't really a nightmare, it was just a typical short sale.  Took way too long, involved a bitter divorce, a seller that wouldn't commit to moving, a loan that was sold at the last minute, etc. etc.  Kudos to our buyer, George, for hanging in for six months.  Thanks to everybody who expressed interest in the house.

More drama on the Verdugo short sale, or why is BofA still selling toxic junk?

Just when I thought the short sale on 2012 W. Verdugo, Burbank was finally going to close, we had another crisis this week.

Backstory: Lender Dana Dukelow had told me the following story: he had funded a loan on a short sale, and it was about to close, when the title company discovered that the lien/loan was no longer owned by the bank that had approved the short sale on the property.  That bank was BofA.

Why is this important? Because there is no longer a valid short sale approval since the original approving bank has nothing to do with it anymore.  The transaction can’t close until – and if – the new bank approves it.  People are trying to move, their cash is tied up, etc, etc.

Dana’s story alarmed me and I decided to check on Verdugo’s BofA loan.  (Citimortgage owns the second loan; it too has been approved for short sale.)

Sure enough, it showed that BofA sold this non-performing loan to HSBC on November 4, 2011, several days before BofA issued the short sale approval – on a loan they no longer owned.

We all were running around with our hair on fire.  I spent several hours on the phone, and so did the short sale negotiator and escrow officer.  There was no record of the loan at HSBC (just so you know, HSBC’s customer service is very spotty).  BofA had no record of the loan being sold, although it had recorded as such at the county recorders.

The story has a happy ending due to a series of coincidences.  Turns out that BofA is the servicer of HSBC/Merrill Lynch loans.  So their guidelines meet HSBC’s guidelines, and the original approval still stands. 

We are some of the lucky ones.  Other Realtors that I’ve talked with are in limbo/hell on their BofA transactions.  One was told by BofA, “We sold 9000 Freddie Mac loans and are behind on our coding.” Great, just great.  So while the bank processes paperwork, buyers and sellers are sitting on boxes, holidays are ruined, foreclosures are proceeding, etc.

Okay, I’m not so savvy on the inner workings of high finance, but this brings up another question: why are the banks selling these toxic assets underperforming loans to other banks?  Who benefits?


And yes, we're on for a 12/23 closing.  Please cross your fingers and hold your breath.

OMG! The 2012 W. Verdugo, Burbank short sale is fully approved!

We received the short sale approval from the 2nd lender today! Yay!  This will close at the end of December.  It's the longest short sale I've ever been involved with and has taken nearly six months for both approvals -- and that's with an outside negotiator.  More details to come.

Did everybody have a good holiday week? And what's on the horizon...

There's no "house of the week" this week because I didn't see any real estate for sale last week.  We had family stuff, and I was too busy with the existing escrows and listings. Here are the issues -- and my worries -- for the upcoming week.
- Will Norwich close without any further shenanigans or claw-backs from the buyers?
- Will Troost close before the buyer has her baby?
- Will the seller of 2012 W. Verdugo vacate by the bank's "must close" date of Dec. 23?
- Will I get some decent offers for the 2007 N. 6th Street property?
- Will the buyers' cash come in for the house on Skyline?
- What will the other sellers on the other house on 6th decide?
- And what of the possible Glendale short sale?
Stay tuned for all answers...

How my short sale is going, chapter whatever, or BofA is the bitchenest bank of all time!

We've been in escrow for three months now on 2012 W. Verdugo in Burbank and our stalwart buyer is hanging in there.  BofA and Chase, the lenders, verbally approved the deal about a month ago. But we still need their approval letter.  What's the hold-up? Our outside negotiator learned this week that his cohort at BofA had been fired, and now there's a new person to deal with there.  O BofA, I love you so.  The latest is that the file is with the investor for approval, and once that happens, we'll get our approval letter.  Short sales are being streamlined? Not in my world.

How the short sale at 2012 W. Verdugo in Burbank is going

We are now two months into the short sale process on 2012 W. Verdugo in Burbank and maybe, just maybe, we're getting close to approval.  The short sale package, including an accepted offer, went to both BofA (1st lender) and Chase (2nd lender) in late July.  Subsequently, the banks put my seller through several paperwork hoops.  They also had a full appraisal done about 3 weeks ago.  Usually, banks have just had a Realtor (not the listing agent) do a broker price opinion, but I'm told that more and more frequently they are ordering appraisals now.

At any rate, the banks finished their collection processes a couple of weeks ago and submitted the packages to their investors for approval.  I'm hoping we'll hear something this week or next week.  Keep your fingers crossed...

I said I'd tell you how the Burbank short sale is going

Well, it's going fine. So far.  The buyer has been a real trooper and has already removed his physical inspection contingencies.  All paperwork is into the banks -- yes, there are two -- and my negotiator thinks somebody will be assigned to the files next week.  I expect a call to schedule a brokers price opinion visit anytime (that's like an appraisal, but is done by a Realtor that the bank hires).  Stay tuned.

That was fast. 2012 W. Verdugo Ave. is in escrow

I listed 2012 W. Verdugo in Burbank last week for $525,000.  It went on the multiple listing service on Monday.  By Wednesday night we had a great offer.  By Friday we had opened escrow.  By today we have three good backup offers.  Did I mention that it's a short sale?

I must have fielded at least 20 calls a day from Realtors, and at least 15 calls and emails a day from buyers. (Because it's a short sale, I can't represent both buyer and seller.)  The house was mobbed during showing hours.

What can we infer from this very fast activity? That the market is "back"? I wish. That it was priced too low? No -- with that amount of traffic, we should have had 20 offers.  That people really like mid-century architecture? Yes.  That people want to live in little Burbank, in spite of the fact that it's not exactly a bastion of hipness? Yes.  That people are more educated about short sales than they used to be? Yes. That...oh never mind. 

But the fun (and the work) is just beginning since it's a short sale, and I'll keep you all posted.  Did I mention that the 1st lending bank is BofA? MMMmmm, my favorite!

Rumor: Frankie Laine built and owned my listing in Burbank

Don't you love a little bit of Hollywood glamor? Especially when it's from the last century? I heard a rumor today from a senior Realtor who came to my brokers' open house at 2012 W. Verdugo in Burbank.  She tells me she thinks singer Frankie Laine built and owned the house.  If you did, thanks, Frankie!

2012 W. Verdugo, Burbank just listed at $525,000, rare mid-century 4+2+pool!

Looking for that rare mid-century at Burbank prices? Want style and substance? I just listed this Eichler-esqe 4 bedroom, 2 bath, 1955 sf. home with separate studio and pool. The many architectural features include an open-beam ceiling with loft, stand-alone wood-burning fireplace, brand new concrete counter tops and brand new glass block tile in the large, sunny kitchen. This unique beauty also has a master suite with pass-thru walk-in closet, 3 bedrooms downstairs plus bonus room, central heat and air, French doors to back, some new windows, glass block wall in bathroom, separate laundry room, large covered deck, fully-wired separate studio with window a/c, an entertainers patio which leads to the gorgeous pool and spa and much more. Even though this is on a busy street, it's a terrific neighborhood and is close to all, with outstanding Burbank public schools. It's a short sale, but I'll be using a professional negotiator, so I think this will go smoothly. See my website at JudyGraff.com for more pics and contact me for showing info.