Well, me? I'm still reading everything related to the housing industry. Answering my clients questions. Trying to hit them with info before they even have to ask.
But, if you were me, you'd know that it's extremely hard to do so as it's changing every day.
On Wednesday this week.....since I don't just work in Santa Clarita.....
Los Angeles Public Order as of April 1st, which includes territories from Granada Hills to South Los Angeles, now prohibits Open Houses AND In-Person showings of properties for lease or sale.
Absolutely PROHIBITS. And, my Broker/Owner feels, as do I, that more areas are likely to implement this prohibition as well....just a matter of time.
Now, Santa Clarita we are still able to do in person showing of homes, if we absolutely cannot show a home virtually. In 18 years, I've only had one buyer purchase a home just from photography.
We also have new forms about access. New forms about cancelling contracts due to COVID 19, four new forms as of this moment that have all been created (and changed already too) within the last week.
But, that's just part of this post....it's really about getting through all of the above and then trying to close escrow. Which, anyone that knows about home sales, the lender is the last in the line to make it happen.
So, this is what I've read, watched, dissected about home loans this week. The mortgage companies that are allowing deferred payments? All good, right? Yes & No. Yes because it helps people that are unemployed due to the Corona Virus. No because that influx of money to those mortgage companies is depleting their liquid moolah to make new loans.
One of my preferred lenders just told me today that a lot of lenders don't even want to do a loan lock at this time. That's a HUGE risk for a Buyer and then, yes, you got it, a Seller. Buyer can qualify, still has their job (see next paragraph on that issue), but rate went from 3.5 to I dunno, 4.125 and now buyer can't afford the monthly payment.....so Seller, poof, there goes your escrow. Yup, there are forms for that as well.....and Seller would not get to keep liquidated damages if mutually agreed upon at onset of contract.
Now, this morning again I read something about VOE's. For us Realtors, we understand that is a Verification of Employment. Done at the beginning of the pre-approval status, and then again right before loan docs get into escrow pretty routinely. What I read this morning? And, it totally makes sense with our unemployment situation right now. VOE's are happening the day we are due to fund and funding pulled back if buyer has lost their job. Rightfully so.
And, therein is the reason for one of our forms. Again, Seller would be left with their home, buyer would cancel. And, if done right from the onset, Seller would get no liquidated damages due to Corona Virus.
I see 'Cash is King' seriously coming back into play....very, very, soon.
And, there you go.....lots of info. I actually texted it to an upcoming Seller that falls under the LA City prohibition just this morning.....one paragraph to him.
You guys get to read it in more ...Lauren Likes To Talk A Lot......'detail' here.
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