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!

Every Tuesday, here at the American Trust Escrow blog, 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.

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 American Trust 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 questions 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

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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.

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.ateblog.com) in the box titled “Subscribe via Email”.

Every Tuesday, here at the American Trust Escrow blog, 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.

Previously, I wrote a post called “An Explanation of This Twitter Thing for Realtors“  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 lose 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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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.

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.ateblog.com) in the box titled “Subscribe via Email”.

Every Tuesday, here at the American Trust Escrow blog, 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 exorbinant fees (See Here For Rates)

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

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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.
2. Most sellers want to get their funds as soon as their sale closes.

We at American Trust 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.

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.ateblog.com) in the box titled “Subscribe via Email”.

Every Tuesday, here at the American Trust Escrow blog, 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.

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!

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