Buying an REO (or Real Estate Owned) property is a little different escrow process than your standard home sale. Realtors and buyers need to remember that they are in escrow with a bank/lender (the “seller”) and that the bank/lender has strict procedures in place to follow during the process. Here’s a glimpse into details to look out for if you’re in an REO transaction and CV Escrow is your escrow provider:

1. Escrow isn’t officially open until the seller has uploaded the contract into the seller’s online systems, it’s been signed by both the buyer and seller, and it shows as a “task” in the seller’s online system to open escrow.
2. Escrow instructions, preliminary title and commission orders will be e-mailed 48 hours from the receipt of the seller’s fully executed contract.
3. Loan documents must be received 24 hours before the buyer’s appointment to sign.
4. Expect to wait up to 5 days from the buyer’s signing date for escrow to receive the estimated HUD approval from the seller.
5. Once approval is obtained, the file is set to record the following business day after the lender’s funds have been received.
6. Funds are usually distributed 24-72 hours after recording.  This timing is subject to seller’s approval of the final HUD statement.

Also important to keep in mind is that communication with CV Escrow regarding your transaction is generally most efficient via email.  Email communication provides a written record and time stamp of the communication and allows your escrow officer to respond in a timely manner.

Understanding these details can help to set the proper expectations with buyers and help ensure that your next REO escrow goes as smooth as possible.

Every Tuesday the CV Escrow blog will be posting 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.

A few weeks ago, I had a post that addressed Social Media for Realtors, which introduced Realtors to the concept of social media, and provided a case for why Realtors should care about it.

In today’s post, we are going to address a related concept:  Social Networking.  Realtors know the importance of networking.  It is the basis for many successful real estate careers.  And for the Realtor who is looking to evolve their business, or find new networking opportunities, the online world provides ample opportunities.  You just need to get started!

As a first step, here is a quick video from Common Craft that explains the concept behind online social networking:

As this video points out, there “are hidden opportunities” out there within your network and social networking sites make these opportunities more visible.  Think this just might have some positive implications for a Realtor?

I certainly believe so.  There are great social farming opportunities for Realtors today who embrace the popular social networking sites.  There is a great white paper on Social Media Statistics available at the New Media Lab which summarizes the explosive growth of social networking sites over the past year.  If you are ready to get started and participate in this new wave of networking, I suggest creating an account on two of the most popular social networking sites out there:

1.  LinkedIn:  This social networking site is probably the most professional and formal of all the sites out there.  Once you have an account, you are able to search for people you know based on your current and prior jobs, as well as classmates from your educational past.  There are many Realtors on Linked In, and a great way to get started is to connect with others from your brokerage.  The New Media Lab white paper reports that LinkedIn has 30.1 million users and site traffic grew 153% in 2008 and 319% since 2007.

2.  Facebook:  This social network has exploded in popularity, especially in the age ranges that are homebuyers.  According to a June 20^th, 2008 Strategy Labs article, Facebook is experiencing explosive growth in the 25-34, 35-54 and 55+ age groups. The 35-54 year old segment grew 172.9% in 10 months – the other two mentioned are growing at a rate of 97%+.  Facebook is less formal than Linked In and one of the most powerful features is the ability to share photographs with those you are connected to.  You are likely to find some of your past clients on Facebook.  If you find someone you want to connect with on Facebook, you send them a “friend request” and they will approve or deny the request.  If they approve the request, you will then be “Facebook Friends” and you will have access to their profile.

One thing to keep in mind in social networking, a “friend” is not the same definition of a friend in the offline world.  Friend is a very loose term in social networking.  You may have never met your online friend in person before.  But, you may share something in common that makes it worthwhile for you to connect together online.  For example, maybe you both are golf fanatics and belong to the same golf club.  You might reach out and connect with this person by sending a friend request (in Facebook terms).  If accepted, you would be connected to this person and now you are “friends” in the online social networking world.  You will need to pick your strategy to decide if you want to friend people who you know or not.  For a few perspectives on this and some “online netiquette tips” take a look here, here, and here.

There is no time like the present to get started.  Your next client could be just a friend request away!

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

Within 48 hours of receiving a contract, CV Escrow mails out an opening package to both the buyer and seller. These packages contain “homework”, i.e. paperwork that escrow needs back promptly in order to move forward and ensure that a transaction closes on schedule. It is integral to all deals that the buyers and sellers expect to receive these packages and understand the importance of returning them to escrow as quickly as possible.

Some of the information that the packet requests from the buyer includes:

• the vesting form describing how title to the new property will be held
• contact information for the lender or mortgage broker
• insurance details

From the seller, our opening package forms prompt for details such as:

• contact information for the HOA
• contact information for the lender on the first and, if applicable, second loan
• any applicable tax withholding details like the 1099 form
• directions on how to distribute the proceeds from the sale

Much of our work at CV Escrow can’t begin until we have these documents completed, so in order to ensure an on-time escrow process, return your opening package documents within 3-4 days of receipt. For sellers who want their proceeds promptly at the close of escrow, and for buyers who want the keys to their new property, completing the opening package promptly is the best way to ensure that everyone gets what they want, when they want it.

Every Tuesday the CV Escrow blog will be posting 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.

Build your online brand with your avatar?  Your what?  Wondering what an avatar even is?  Here is a hint:

Avatar is a fancy word for the small image used to depict your online presence or identity.  It is a very important part of any Realtor’s online presence and branding.  When you create a profile on a social media website, they often ask you to upload a photo of yourself.  This photo is your avatar – most Realtors would think of it as their headshot.  But should your avatar be your headshot?  Maybe, but maybe not.

Here are some things to consider when choosing your avatar:

• Your avatar sets the tone for who you are.  What do you want it to say?  It should be a reflection of you.  It is the first visual that people generally see of you.  Put some thought behind it.  Keep in mind that it does play a part in defining your personal brand online.  What do you want your personal brand to say?
• Keep in mind that the digital world is generally more casual than the print world in marketing yourself.  I suggest portraying a professional, yet approachable image of yourself.  It does not need to be of you in business formal attire (of course, it can be).
• The image will most often be presented very small, and cropped to a square.  Very frequently the image will be only a ½ inch square.  It will often appear as part of a list like this example from Facebook.

• Your avatar should be close up to your face.  Because of the small size that most Avatar’s are presented, it is generally best to have the photo be cropped tight.
• It is ok to get creative!  Your avatar doesn’t have to be your face (but most Realtors will likely choose this option).  Also, think about getting creative with your cropping.  You’d be surprised how well you can communicate you with just part of your face.  For some additional options check out this Guide To Using Avatars for Online Marketing by Justin Smith of the Real Estate Tomato.

Take a look at the sample avatars at the beginning of this post and a few more below.  These are all appropriate guides for Realtors who want to brand themselves online and participate in the social media game.  Give your avatar some thought – make sure your photo fits the medium, communicates what you want it to say, and is a reflection of you.  It will be good for your brand and your business!

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

According to Merriam-Webster, escrow is defined as: a deed, a bond, money, or a piece of property held in trust by a third party to be turned over to the grantee only upon fulfillment of a condition.

Whether it is the buying and selling of a home, or the transfer of a business, the amount of legal documentation and financial liabilities can easily create confusion or differences of opinion amongst the buyer, seller and/or their representatives. This is why an impartial, third-party representative becomes essential to focusing on the facts and responsibilities that must be fulfilled.

With so many parties obligated to fulfill so many responsibilities in any given real estate transaction, it quickly becomes apparent why a neutral third party (escrow) is essential to a smooth process.

Escrow is the one who facilitates (just to name a few):

• drawing of escrow instructions which reflect the negotiated points of the contract and act as basis for execution of the property transfer.
• confirmation of clear title from the Title Company
• the recording the deed with the County Office
• filing paperwork with the proper municipalities
• the receiving of wires and funds to be disbursed

In addition to the above responsibilities, CV Escrow views our most valuable function as acting as a personal liaison and resource for Realtors, buyers and sellers as they tread through the complicated and often technical world of buying and selling real estate.

Every Tuesday the CV Escrow blog will be posting 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.

I’m recently back from the Inman News Real Estate Connect Conference in New York City where I heard Greg Robertson of Dwellicious state “Buying real estate is an inherently social process”.  So true.  Realtors know this.  Social farming has been a foundation of the successful real estate career since the beginning.  But, the day of networking at the PTA is evolving, and the world of technology has introduced a multitude of new social communities where many clients of today, and definitely the client of tomorrow, gather.  Adult social media usage is rapidly growing – from 8% in 2005 to 35% now with more participating every day.  In order to reach these clients, Realtors are well served to participate in social media.  And, there are many options.  My goal is to introduce you to several of them in the hope that you will find the ones that work for you.

Let’s start with a definition of social media.  I define it as this:  Technologies and digital platforms that foster social interaction, relationships, and feedback between people.  Social media is the use of electronic and internet tools for the purpose of sharing and discussing information and experiences with other people.   Here is a great video by Common Craft titled “Social Media In Plain English”:

There are many social media websites but a few lead the pack – current leading social media sites that Realtors should be interested in include Facebook, LinkedIn, YouTube, ActiveRain and Twitter.  Each will be discussed in more depth in future posts.

The National Association of Realtors has posted a great Field Guide to Social Networking for Realtors.  This is a great place to start learning more.   It covers the benefits of social networking through social media, has a social media basics section, and has a great overview of the leading social media sites that Realtors should be interested in.  Start there.  Ask questions.  Try things out.

You are already participating in social media by reading this post which is part of the CV Escrow Blog.  But social media goes farther than simply reading a blog.  A conversation can occur if you simply type a comment on this post at the bottom of the page.  Interactivity.  This is the basic concept.  And a great place to start.

There will be much more to come in the weeks ahead.  I look forward to the conversation with you!

Interested in what you are reading?  To automatically receive these Tuesday Technology Tip posts in your email box, subscribe to our feed (top right corner of this site).

If you’re looking for a way into the real estate market, REO or ‘Real Estate Owned’ properties are the hot ticket right now. These are homes that fell into foreclosure and then didn’t sell at auction. So now, the bank or lender owns the property and wants to get it off their books ASAP. Usually you can get these homes for a steal.

Buying an REO property is easier than you might think. It’s actually almost the same as a regular home purchase. You still view the home and write an offer; the big difference is that you go into escrow with the bank- not a private seller. Dealing with the bank makes for a different negotiation process, and has some impact on the escrow process as well.

In terms of negotiation, let’s say you make the bank of offer. They may sit on it for a while and mull it over. Depending on how close your number is to what they need to recoup their losses, they might agree right away, or wait for other offers to come in before they accept or decline yours. They may not counter you the way a traditional homeowner might…instead, they may just accept another offer. However, if they do accept, you will enter into an escrow agreement with the bank.

When you’re in escrow with a bank the process is different from a traditional home purchase. An REO sale has very strict time constraints and deadlines built into the escrow agreement. Banks are absolutely set on meeting those deadlines and because they are an institution not an individual, they can charge hefty fines if you fail to meet their deadlines. The upside – you can close fast. The downside – the bank can take back the offer without returning your earnest money (escrow deposit) if they feel the terms of the escrow will not be met on their timetable.

Don’t get discouraged though. People are purchasing REO properties in droves because they are saving between 10-30% on their purchase. It’s a fantastic way to get into a first home or buy investment property. So if you’re ready to plunge in feet first, talk to your Realtor about testing the waters on an REO property. The market is flooded with them right now so your options are plentiful. Happy home buying!

CV Escrow was pleased to be the sponsoring affiliate of last Thursday’s Windermere Premier Property Meeting at Brenda Scott’s stunning listing at 7 Coronado Court at Coronado Rancho Mirage. A beautiful evening and this amazing Guy Dreier property provided the perfect backdrop for wine, cheese, market discussion, and networking with the top Windermere Agents. CV Escrow welcomed the addition of account manager Ellen Kardashian to the CV Escrow team, announced the launch of our new blog, and had an opportunity to say thank you this group of outstanding agents that we are proud to support in the escrow process. Following are a few photos from the event. We thank you for your continued support of CV Escrow.

The pool and grotto area of 7 Coronado Court

CV Escrow’s Jan Whishaw, Jeff Russell, and Ellen Kardashian

Windermere’s Michael Fogarty, Marilyn Bauer, Phyllis Mackovic, and CV Escrow’s Jan Whishaw

CV Escrow’s Karen Guess with Patrick Jordan of Windemere

Kathleen O’Brien, Jan Whishaw, Diane Williams, and Karen Guess

Windermere’s David Banks with Jan Whisaw of CV Escrow

This Saturday, November 1st, CV Escrow is proud to be a sponsor and participant in the California Desert Association of Realtors Chili Cook-Off being held at the Griffin Ranch in La Quinta. Come visit myself and escrow officers Cindy Mozingo and Karen Guess as we cook up some of our fabulous secret CV Escrow Chili.

There will be music, beer and wine, outside vendors, food, and of course, lots and lots of chili!

Tickets are $10 per person in advance (please email or call me at 760.625.2765 if you’d like further information) or $12 at the door. Ticket price includes 5 free taste tickets! Proceeds benefit the CDAR Scholarship Fund and The Boys and Girls Clubs of Cathedral City.

The event runs from 5:00 – 10:00 pm this Saturday. Look forward to seeing you there!

CV Escrow had a great time at the 2008 California Desert Association of Realtors Affiliate Expo last Tuesday evening at the Mission Hills Resort. It was great to see many familiar faces and meet some new ones as well. Congratulations to Kim Rogers from Winderemere Cook & Hovely, the winner of the CV Escrow raffle for a TEAC Ultra Thin Hi-Fi System which includes a CD player, iPod docking station, and flat-panel speakers. We thought you might enjoy seeing this video at the expo sharing a little bit more about what CV Escrow does with one of our future clients.

Thanks to all of you for your continued support of the affiliates. CV Escrow is proud to be affiliated with you and the California Desert Association of Realtors.