Every Tuesday, here at the CV Escrow website, 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.

The first week in October is rich with development opportunities and events for California Realtors.  The CAR Expo, Tech Tuesday, and RE BarCamp SV are all being held in San Jose from October 5^th-October 9^th.  Coachella Valley Escrow will be at all of them.  Will you be there?  Here are further details on all of these great business opportunities:

California REALTOR Expo 2009:

The California Association of Realtors Annual Trade Show and educational summit (CAR Expo 2009) runs from Wednesday, October 7^th – Friday October 9^th at the San Jose Convention Center.  The event is California’s largest real estate trade show and draws “thousands of California’s key franchise executives, top producers and movers and shakers every year for educational networking, and professional development opportunities”.  The Expo website If you are interested in learning, getting a pulse on the trends impacting real estate today, and networking with agents and real estate influentials from all over the state, the CAR Expo is the place to be.

• Conference Website:  http://expo.car.org
• Dates:  October 6-8, 2009
• Registration:   http://expo.car.org/register.html
• Twitter Account:  @CAREALTORS
• Twitter Event Hashtag:  #CARExpo

Tech Tuesday:

This is a CAR sponsored, day long technology training preceding the official CAR Expo and is chalked full of technology training and tips to help REALTORS in their business.  Tech Tuesday sessions include:

• Text, Tweet, and Sell:  A Dialogue on Tech’s Possibilities for Today’s Agents
• The Benefits of Blogging
• Media is the New Marketing:  How to Attract the Right Attention
• Best Practices for Building an Online Presence
• Social Media and Social Networking:  A Guide for REALTORS

Further details on Tech Tuesday can be found here:

• Conference Website: Tech Tuesday
• Date:  Tuesday, October 6^th, 2009
• Registration:  http://expo.car.org/register.html
• Twitter Event Hashtag:  #TTCarExpo

If you are attending Tech Tuesday, be sure to join in on the Tweetup (a meet-up promoted on Twitter) at Tanq Bar (San Jose Marriott – within walking distance of the San Jose Convention Center) starting at 5:15 pm.  Come mingle with fellow Tech Tuesday attendees over a drink (everyone is responsible for their own food/drinks).  It’s free to attend and Tech Tuesday attendance is not required to join the Tweetup.  More info and RSVP list is here at Twtvite.

RE BarCamp Silicon Valley:

On Monday, October 5^th in downtown San Jose, there is a free, day-long event, that attracts the most progressive of Realtors.  RE Bar Camp was born from the desire for people to share and learn in an open environment.  There is no set schedule or topics.  Instead, the day is shaped by the passionate real estate professionals who gather and discuss how technology and social media can benefit the real estate business.  Any forward thinking Realtor who is interested in applying technology to their business should attend.  It is an outstanding way to network with industry elite and become engaged in discussions that can truly transform your business.  The event is free, but you do have to RSVP here to attend.

• Conference Website:  www.rebarcamp.com/siliconvalley
• Date:  Monday, October 5, 2009 8:30 am-4:30 pm
• Registration:  http://rebarcamp.com/siliconvalley/?page_id=6
• Twitter Hashtag:  #REBCSV

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The Federal Government, in an effort to stimulate the economy, enacted a first time home buyer tax credit earlier this year that would give homebuyers up to $8,000 to help offset the costs of purchasing a home.  Many REALTORS and homebuyers alike, have asked for the refund to be “given back” during the close of escrow. Since the program is a “tax credit” the money comes back from the government when the new homeowner files their income tax return as opposed to receiving the money at the close of escrow. Escrow officers want their clients to know this ahead of time to help avoid frustration when a buyer thinks they will receive an additional $8000 to help them close their escrow.

To help avoid confusion, here is more information about the tax credit and the form that needs to be filled out in order to apply for the tax credit.

The credit:

• Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
• Applies only to homes used as a taxpayer’s principal residence.
• Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.
• Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
• The credit is claimed using Form 5405.

This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000 or $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.

The IRS has a new YouTube video $8000 Tax Credit Explained and other resources that provide details about the tax credit.

This is not intended as legal or tax advice. To fully understand the tax credit and apply successfully for the refund, please consult a tax professional.

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

Every Tuesday, here at the CV Escrow website, 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.

When you open your internet browser window, wouldn’t it be nice to see something useful?  Is there a site you visit every time you browse the web?  If so, wouldn’t it be helpful to have that set as your home page on your browser?  It’s very simple to change and this week’s tech tip is designed to show you how to do that.

Some suggestions of sites that might be relevant to a REALTOR to set as your default home page:

• Your MLS login screen (are you at the computer mostly to check the MLS?)
• CVEscrowBlog.com (new tech tips and escrow posts will automatically appear on your homepage!)
• AgentGenius.com (real estate magazine)
• MyTechOpinion.com (tech magazine for the real estate industry)
• Google.com (the search engine – good one to choose because it loads quickly)
• WSJ.com (leading business and financial news)
• InmanNews.com (real estate news)
• Realtor.org (NAR’s REALTOR site)

First step is to pick a default home page.  Select one from the list above or select your own (ANY website will work).

Once you decide what site you want, follow these step by step directions on how to change your default home page to something useful.

Most of our readers are on PC’s and using Internet Explorer, so these directions are geared towards them.  If you are on a Mac and in Safari, directions can be found here and if you are using Firefox, you can find directions here.

To change your homepage in Internet Explorer (example is for version 7…other versions might vary slightly):

1. Open Internet Explorer
2. Go to the page you want to set as your home page (for this example, I’m using Agent Genius as my desired homepage)



3. On the Tools menu, click Internet Options



4. Confirm you are on the General tab, Choose the Use Current button, then Click OK

That’s it.  You’re done.  Next time you open up your browser, you will see the site you selected.  I’m curious to hear what site you choose as your home page.  Leave me a comment and let me know!

Interested in what you are reading? To automatically receive these Tuesday Technology Tips in your email box, subscribe to these articles at the top right corner of this site (www.CoachellaValleyEscrow.com) in the box titled “Subscribe via Email”.

In these tough economic times, many homes have been languishing on the market, making it difficult for Sellers to move on to other homes and locations.  In order to make a sale, a Seller can offer to do a “carryback”.  A carryback loan, also known as a “seller carryback” or “seller’s second”, is a loan which is financed by the Seller of a property to help a Buyer purchase the house. Normally, this aids in the completion of the sale of the property. It could also refer to the part of the purchase price the Seller is able and willing to finance for the buyer.

For instance, the typical seller carry back situation is 10% down, 10% seller carry back and 80% first mortgage. This is a percentage of the purchase price. An example is a $1,000,000 house would have a $100,000 down payment, a $100,000 seller carry back and a $800,000 conventional first mortgage deed. Another scenario for a seller carry back is if the seller owns the property free and clear and the seller carries a first mortgage or trust deed. Sometimes there is a first trust deed which the buyer can take over and the seller carries a second mortgage.

Utilizing a seller carryback works well when the Buyer cannot come up with a big down payment or they may not fit into the “conventional” loan process because of their career or past credit history. Understanding the potential pitfalls of doing a seller carryback, but also knowing the rewards, is crucial to this type of sale.  In a seller carryback scenario, both parties need to exucute an All Inclusive Trust Deed.

An “All Inclusive Trust Deed” or AITD is a “Seller Carry” that “wraps” or includes an underlying loan or loans of record. It is usually recorded at the close of escrow with a Grant Deed conveying full to title to Buyer and Title Insurance is issued.  The AITD’s face amount includes the unpaid balance(s) on underlying encumbrances, plus the remaining unpaid balance of the Sellers equity.

Sellers remain responsible for the payment on the underlying loan(s) or until they are paid in full. The Sellers equity position in the note is always the difference between what is owed to the Seller and what the Seller owes the underlying lender.

The AITD becomes a junior trust deed, subordinate to the underlying trust deed(s).  The inputed interest rate (9% or applicable Federal securities rate, which ever is lower) is the minimum interest rate allowed for Seller financed transactions. The Documentary Transfer Tax on the grant deed is based on the purchase price LESS the liens of record.

Advantages:
The Buyer does not need to qualify for a loan with a lender and closing costs are minimal.  The Seller has advantage of installment sales income tax recording method, so long as payments are received in more than one tax year. The Seller, by agreement in writing with buyer, may prohibit prepayment of up to a 12 month period following the sale.

Because the underlying loan(s) may have a lower interest rate, or may have been paid down considerably, the Seller’s effective interest rate yield may be higher than the actual note rate.  The Seller benefits from the “Interest Override” which is the difference between the interest rate on the existing loans of record and the rate negotiated on the AITD.

Disadvantages:
Recording may alert an underlying lender to enforce the “Acceleration Clause” or “Due on Sale Clause” and require the underlying loan to paid in full.  At this time, the underlying loan would be considered in default and said lender could start foreclosure proceedings.

Paying off an AITD:

There are two types of AITD payoffs:  Equity Payoff and Full Payoff.

The AITD should not be reconveyed until such time as any equity of the seller and the existing deed(s) of trust have been paid in full. At all times the seller is responsible for the underlying loan(s) of record, since there has been no release of liability given by the existing lien holder(s). Any late payments and/or default, will reflect on the Seller’s credit accordingly.

Being able to sell a house quickly by not having to wait for a mortgage company to approve a buyer or having to rely upon an appraiser to come in with the “right” price can sometimes make this type of an arrangement attractive. However, be sure to consult a real estate attorney and professional tax advisor on the implications (or benefits) before entering into a transaction.

Every Tuesday, here at the CV Escrow website, 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.

The picture below is a screen shot of multiple comments that were left on a blog post that was promoting a happy hour gathering at a social media conference that happened earlier this year.

Quick, take a look at the image and tell me at first glance which of the people commenting:

1. Did you look at first?
2. Do you think is the most professional?
3. Do you think is the most technically proficient?
4. Seems the most like a real person?
5. Are you most drawn to?

I’m willing to bet that the people who have images next to their comment (me, CWaterhouse, and Colleen Truax) were the answers you gave.  If I ask you which people appear to be the least professional and least technically proficient, which would you answer?  The one’s without a photo?  Probably so.  Which camp would you rather be in?

In an earlier post, I explained what an Avatar is (your visual image of yourself online – usually your photo), and how it is an essential consideration of the brand image for any modern Realtor.  This post expands upon that and introduce you to Gravatar.com, a service that will make including your avatar in your blog comments, simple and easy.  Here is a brief video which clearly explains the service:

As the video mentions, once you sign up for a gravatar account, you can associate ALL the email addresses that you have with your account (your brokerage email, your gmail account, your home account, your college alumni account, etc).  And, then when you go to comment on a blog or forum, no matter what email address you use, your photo is automatically included when you make a comment (assuming the site supports gravatars…which many blogs and forums do).

A gravatar is a great way for a Realtor who participates in blog commenting to be positioned with a professional, consistent brand image across many sites.  It also centralizes and automates the posting of your photo when you comment on the web.  By using a gravatar, you are more effectively branding yourself with the image you choose and you are more likely to be perceived as more professional and technically proficient.  So why not continue the brand image you have created off-line to on-line and sign up with Gravatar.com?

Interested in what you are reading? To automatically receive these Tuesday Technology Tips in your email box, subscribe to these articles at the top right corner of this site (www.CoachellaValleyEscrow.com) in the box titled “Subscribe via Email”.

If you are either in the process of buying or selling a foreclosure property, understanding the basic terms will help you ask appropriate questions of your REALTOR, the escrow officer, the lender or other parties involved in the transaction. This can expedite the timeframe of the process for everyone involved.

Below are the most common terms used in connection with the foreclosure process:

A Deed of Trust:
A Deed of Trust is the security for your loan. It is the document that is recorded in the public records.
A deed of trust contains three parties:

• The Trustor, which is the borrower
• The Trustee, which is an entity that holds “bare or legal” title
• The Beneficiary, which is the lender

The deed of trust is an instrument that identifies the following:

• Original loan amount
• Legal description of the property being used as security for the mortgage
• The parties
• Inception and maturity date of the loan
• Provisions of the mortgage and requirements
• Late fees
• Legal procedures
• Acceleration and alienation clauses
• Riders, if any, regarding such clauses as prepayment penalties or terms of an adjustable rate mortgage

Notice of Default:
Lenders file in the public records where the property is located a public notice called the Notice of Default. It states that the borrower is in default, behind in the mortgage payments, and if the payments are not paid up, the lender will seize the home. In California, lenders typically do not file a Notice of Default until the borrower is at least 60 days behind in making payments. Lenders must then wait 90 days. During that 90-day period, the borrower has the right to make up the back payments and reinstate the loan. After 90 days, the lender is required to publish a notice in the newspaper for 20 days and then may sell the property to the highest acceptable bidder on the courthouse steps. If no acceptable bid is received, the trustee then conveys the property to the lender.

Deed-in-Lieu of Foreclosure :
A potential option taken by a mortgagor (a borrower) to avoid foreclosure under which the mortgagor deeds the collateral property (the home) back to the mortgagee (the lender) in exchange for the release of all obligations under the mortgage.

Foreclosure:
Legal proceeding by which a borrower’s rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. The lender may then declare the entire debt due and owing and may seek to satisfy it by foreclosing. Foreclosure is commonly by a court-decreed sale of the property to the highest bidder, who is often the lender.

As we all know, foreclosures continue to be in the news and continue to dominate the market. This means that REALTORS, struggling homeowners, and potential buyers need to have information about the process and terms of foreclosure in order to make important decisions about the sale or purchase of a property.

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

Every Tuesday, here at the CV Escrow website, 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 you are one of the 250 Million Facebook users, and you also have an iPhone, then last Thursday’s release of the Facebook 3.0 application for iPhone was an event you should pay attention to. Apple approved the long awaited update to the Facebook application for the iPhone, giving users huge functionality improvements over the prior Facebook application.

For those who are using Facebook from your computer, this updated iPhone application extends the functionality you experience on your computer to your iPhone so you can keep current, interact, and connect from the field. And, as we all all know, the busy Realtor has a hard time finding the time to sit in front of their computer. Now it is easier than ever to keep up from the road.

A full list of functionality improvements are available here at Facebook.com. Some of the more functional ones for REALTORS on the go who are interested in using social media to build their business include:

• See your friends birthdays: For years, the personal touch of sending a birthday card has been a successful relationship building strategy. With the new iPhone application, you can easily see upcoming birthdays of your Facebook friends (have you friended any of your clients or prospects yet?) and wish them a happy birthday from the road.
• Call your friends from within the Facebook application: If your friend has their phone number in their profile, you can tap the number to call them without having to type in the number or look them up in contacts.
• Make friend requests: Are you at a party and meet someone who you want to friend on Facebook? No need to take their card and wait until you get home, now you you can look them up and send a friend request from the party.
• Like posts and photos: A cornerstone of social media success is engaging others. The new Facebook application makes it as simple to “like” posts and photos from your phone as it is from your computer. This allows you to effectively give quick feedback to your friends posts without having to be back at your office or home computer.
• Create shortcuts to your favorite friends and pages: If you are interested in keeping up with a particular client who is your friend on Facebook, you can now create a shortcut button that takes you directly to that individual users profile.

This list just scratches the surface of enhanced features. So, head to the App Store from your iPhone and download the Facebook 3.0 application (by the way, the application is free), or download it here from your computer and synchronize your iPhone with your computer. It is a huge improvement in functionality and usability. Give it a try!

Interested in what you are reading? To automatically receive these Tuesday Technology Tips in your email box, subscribe to these articles at the top right corner of this site (www.CoachellaValleyEscrow.com) in the box titled “Subscribe via Email”.