A special greeting at this Thanksgiving from CMG Escrow to express our sincere gratitude for reading our blog and the feedback you provide.   We are thankful and would like to extend our best wishes from our family to yours.  Happy Thanksgiving!

Every Tuesday, here at the CMG 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 you are one of the 300 million Facebook users, and you also have an iPhone, then the release of the Facebook 3.0 application for iPhone has made it easier for people to  check status updates on the go. Apple approved the long awaited update this Fall 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 wherever you are.

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 Tip posts in your email box, subscribe to these articles at the top right corner of this site (www.cmgescrowblog.com) in the box titled “Subscribe via Email”.

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 CMG Escrow is your escrow provider:

1. Escrow isn’t officially open until the seller has uploaded the contract into the seller’s online system, 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 CMG 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.

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

Every Tuesday, here at the CMG 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.

Our “Tech Tuesday” tip is being posted a day early this week in order to get the word out that tomorrow (November 17, 2009) a great online event is being held that any Realtor interested in learning more about technology and social media for their career can attend.  It’s Virtual RE BarCamp and all you need to attend is a computer and an internet connection.   If you are interested in any of the following topics, then Virtual RE BarCamp is for you:

• You Tube for Real Estate
• Using Flickr for Real Estate
• Making Real Estate Sales with New Media
• The Brand of “You” in Social Media
• Wordpress for Real Estate
• Social Media Trends for 2010
• Search Engine Optimization (SEO) 101
• Linked In for Real Estate
• Must Have Word Press Plugins

As the event website states:

The REBarCamp phenomenon has exploded over the last year with dozens of in-real-life gatherings where the real estate community comes together to discuss and demystify the current trends in technology and marketing. The goal of VirtualREBarCamp is to bring this experience to you as opposed to having to bring yourself to it.

Event Details are as follows:

• When:  November 17, 2009, 9:00 am – 4:00 pm PST
• Where:  Online Webinar
• How to Attend:  Links and Call In Information Here
• Cost:  Free
• Registration: Participate by registering here
• Schedule:  Calendar of Sessions
• Speaker Bios

Interested in what you are reading?  To automatically receive these Tuesday Technology Tip posts in your email box, subscribe to these articles at the top right corner of this site (www.cmgescrowblog.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  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.

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

Want to make your REO (Real Estate Owned) escrow go as smoothly as possible? Here are a few tips:

Fact:

The REO escrow must close on time.

Fact:

The escrow cannot be opened until the purchase agreement is uploaded to the sellers (banks) online REO system and made available to escrow to download. This can occur as late as 1-2 weeks after acceptance, which delays the escrow opening and in turn may delay the escrow closing.

Tip #1:

Upon acceptance, provide the escrow holder a copy of the signed contract. This way, escrow is able to order the reports prior to the opening of the escrow and while everyone is waiting for the signed contract to be uploaded into the seller’s system. This could be essential to the escrow closing on time.

Tip #2:

Although escrow is conducted in accordance with the terms of the contract and governed by state law, the seller controls the manner in which the escrow is processed. This is the reason that agents may not be able to choose their escrow companies when the property is bank owned. You will most likely be using an escrow company (like ours) who has been selected and approved by the seller/lender to handle REO’s. Bank approved escrow companies are required to undergo extensive training on the seller’s individualized REO system.

Tip #3:

Is anyone out there still not using email to conduct their transaction? If so, you must embrace email. Email is a basic survival skill for REO escrows. The escrow is conducted via email due to time limitations, and as stated above, the REO escrow must close on time. Therefore, time is of the essence! Email is an essential tool in support of a timely transaction.

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

Every Tuesday, here at the CMG 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.

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 Tip posts in your email box, subscribe to these articles at the top right corner of this site (www.cmgescrowblog.com) in the box titled “Subscribe via Email”.