Quick Stuff                                     3033 25th St W                                661-256-5931

R & J Auto Parts                              1816 Rosamond Blvd                        661-256-3461

RN Investment & Community Services 2724 Elberta                                   661-2567302

Radio Shack                                   2559 Rosamond Blvd                        661-256-4365

Rainbow Nutritional                          1431 Rosamond Blvd                       661-256-6640

Ramons Mexican Restaurant            1431 Rosamond Blvd                       661-256-4602

Rancho Del Oro Golden Retrievers                                                          661-256-8056

Rare Earth High School                    3082 Glendower                               661-256-5095

RC Affordable Limosine SE               2845 80th St W                                661-256-4144

Realty Advantage LLC                                                                           661-256-6961

Refrigeration Plus                          1155 71St W                                    661-256-7755

Rent A Geek                                 2873 Sierra Hwy                               661-256-1079

Rite Aid Pharmacies                       2547 W Rosamond Blvd                    661-256-1116

Rivera's Construction                     1605 Ave A                                      661-256-1507

Rivera's Tires                               2960 Rosamond Blvd                         661-256-3804

Ron Mauldin Construction              3107 Edwards                                   661-256-2379

Rosamond Auto Sales                                                                         661-256-7373

Rosamond Blble Pre-School          1389 Rosamond Blvd                        661-256-4808

Rosamond Car Wash                   2825 Diamond                                 661-256-4797

Rosamond Chamber of Commerce  2861 Diamond                               661-256-3248

Rosamond Chevron                     2072 Rosamond Blvd                        661-256-3389

Rosamond Cleaners                    2650 Diamond                                 661-256-3787

Rosamond Construction Services   3126 Gordon                                   661-256-1565

Rosamond Desert Lock Company                                                       661-256-0920

Rosamond Disposal                    1731 Sierra Hwy                               661-256-6669

Rosamond Elementary School       1981 Rosamond Blvd                      661-256-5050

Rosamond Florist                        1595 Rosamond Blvd                      661-256-2591

Rosamond Garden Apartments      3400 15th St W                              661-256-2208

Rosamond High School                2925 Rosamond Blvd                       661-256-5020

Rosamond Hills Senior Retirement Center  3075 Sierra Hwy                 661-256-3333

Rosamond House Movers             1800 Harvell Rd                             661-256-2954

Rosamond Insurance Agency        3742 Cedarwood Ct                        661-256-1150

Rosamond Little League              3200 Glendower                               661-256-4550

Rosamond Medical Clinic             2947 Sierra Hwy                              661-256-1219

Rosamond Mobile Home Park      1258 Rosamond Blvd                       661-256-2084

Rosamond Moose Lodge No 415   1105 Sierra Hwy                             661-256-2657

Rosamond News                         2654 Diamond                               661-256-0149

Rosamond Palms                       3377 Sierra Hwy                             661-256-1964

Rosamond Pharmacy                  1415 Rosamond Blvd                     661-256-1118

Rosamond Properties                 4401 Rosamond Blvd                     661-256-2744

Rosamond Realtors                   3052 Sierra Hwy                             661-256-2011

Rosamond Recycle Center         2180 Sierra Hwy                              661-256-4745

Rosamond Senior Citizens Inc    2500 20th St W                              661-256-1012

Rosamond Skypark FBO           4205 Knox                                     661-256-4500

Rosamond Smog Test Only       2960 Rosamond Blvd                     661-256-7008

Rosamond Transmission                                                             661-256-0919

Rosamond Village Apartments  2631 Desert                                  661-256-3495

Rosamond West Foursquare Church  2850 B                                 661-256-3391

Rosamond West Foursquare Church  5838 Charan RD                   661-256-0017

Salid Affordable Dry Carpet Cleaning  3300 15th St W                   661-256-8711

Salvation Army                        2881 C                                      661-256-9153

Sellers Assistance Network        470 20th St W                            661-256-7777

Short Stop Mini Mart                1415 Rosamond Blvd                  661-256-8506

Sierra Vista Mobile Home         2421 Sierra Hwy                         661-256-9129

Signature Communications                                                     661-256-7079

Skypark Market                     4401 Rosamond Blvd                  661-256-6585

Sound Shop The                    2960 Rosamond Blvd                   661-256-6977

Southern Kern Veterinary        4455 Rosamond Blvd                   661-256-8121

Storage for Less                    2463 15th St W                           661-256-8356

Subway                                2559 Rosamond Blvd                   661-256-4246

Sugarman Jordan Auto Sales  2528 30th St W                            661-256-2236

Sundale Mutual Water Co       7175 Cypress                               661-256-2620

Sunkiss                               2613 Diamond                              661-256-0500

TV Land                              2654 Diamond                               661-256-6303

Taco Bell                             2547 Rosamond Blvd                     661-256-6877

Tapia Bros Inc                     8425 Ave A                                    661-256-4401

Tapia Farms                        1841 Rosamond Blvd                      661-256-0577

Thai Chinese Food                1431 Rosamond Blvd                     661-256-4804

The Great Escape Family Billiards  3405 90th St W                       661-256-6125

The Groomery                      4401 Rosamond Blvd                     661-256-3629

The Skillet                           2938 Sierra Hwy                             661-256-4110

The Training Station Day Care  3532 Silver Spur                          661-256-9002

Trade Winds Mobile Home Estates  1501 20th St W                     661-256-2838

Trailer Haven                       1048 Rosamond Blvd                     661-256-2210

Tropic Sensations                 1431 Rosamond Blvd                     661-256-2801

Tropico Middle School            3180 Mojave Tropico                     661-256-5040

Olaf Landsgaard Attorney At Law      4171 Knox Ave                      661-256-9271

Little Tony's Boxing Club                 2618 Sumkmerchase Ave       661-256-7591

M&G Burgers                                  2915 20th St W                     661-256-8041

Majestic Homes, Inc.                       1550 20th St W                     661-256-0553

Maple Ridge Mobile Homes Sales     3300 15th St W                     661-256-9000

McDonald's Restaurant                    2511 Rosamond Blvd.            661-256-4530

Mead Equipment & Machinery           2001 15 th W                        661-256-4642

Melchers Construction                     2654 Diamond                       661-256-0233

Mr Donut & More                            2689 Sierra Hwy                     661-256-0681

Mobile Music                                  3640 Glenridge                      661-256-4267

Moose Lodge No 415                      1105 Sierra Hwy                     661-256-2657

Moti'Vational Tennis Academy          3779 Sierra Hwy                     661-256-0018

Moto-Medic                                   3219 75th St W                      661-256-2670

National Metals & Surplus               1400 Orange St                      661-256-7416

New Life Church of God in Christ       2217 60th St W                     661-256-4970

Newheart Korean Baptist Church       3275 Glendower                    661-256-9626

Northern California Universal Enterprise Co   2828 Sierra Hwy         661-256-3870

Pacific Dental Care                          2535 Rosamond Blvd           661-256-2500

Pannon Design & Development inc    2613 Diamond                    661-256-8880

Prudential Mobile Home Park           5335 Rosamond Blvd           661-256-6720

WHAT  A  CREW

A fire started on some grassland near a farm.
The C.D.F. fire department was called
to put the fire out.
The fire was a more than the C.D.F.
 could handle.
Someone suggested that a nearby
volunteer bunch be called.
Though there was doubt that the volunteer outfit
would be of any assistance, the call was made.
The volunteers arrived
in a dilapidated old fire truck.
They rumbled straight towards the fire and stopped in the middle of the flames

The firemen jumped off the truck and frantically
started spraying water in all directions.
Soon they had snuffed out the center of the fire,
breaking the blaze into two
easily controllable parts.

Watching all this,
the farmer was so impressed with
the volunteer fire department's work and
was so grateful that his farm had been spared,
that right there on the spot he presented
the volunteers with a check for $1000.

A local news reporter asked
the volunteer fire captain what the
department planned to do with the funds.
"That oughta be obvious," he responded,
wiping ashes off his coat.
"The first thing we're gonna do is
get the brakes fixed on that darn old fire truck."

Hey all.

It is Memorial Day Weekend.  What are your plans for this weekend?  Are you working your real estate business?  Are you spending time with family and/or friends?  Whatever you are doing, may you have a great and safe Memorial Day and not eat too much. haha  I would love to hear who is doing what.  I will be working my JOB.  I worked today 820-620.  I will work tomorrow 8-5 and Monday 9-3.  May God bless.  Peace

Earl "The Pearl" Sorrells

efsorrells@ aol.com

661-400-9485

UNSOLVED
MYSTERY

Juan comes up to the Mexican border
on his bicycle.
He's got two large bags over
his shoulders.
The guard stops him and says,
"What's in the bags?"

"Sand," answers Juan.

The guard says,
"We'll just see about that ~
get off the bike."
The guard takes the bags
and rips them apart;he empties them out and
finds nothing in them but sand.
He detains Juan overnight and has the sand analyzed, only to discover that there is nothing in the bags.

The guard releases Juan,
puts the sand into new bags,
hefts them onto the man's shoulders,
and lets him cross the border.

A week later, the same thing happens.
The guard asks, "What have you got?"

"Sand," says Juan.

The guard does his thorough examination
and discovers that the bags
contain nothing but sand.
He gives the sand back to Juan,
who crosses the border on his bicycle.

This sequence of events is repeated
every week for three years.
Finally, Juan doesn't show up one day
and the guard meets him in a cantina in Mexico.

"Hey, Buddy," says the guard,
"I know you are smuggling something.
It's driving me crazy.
 It's all I think about.
I can't sleep.
Just between you and me,
what are you smuggling?"

Juan sips his beer and says,
"Bicycles."

Foreclosure takes away ownership rights an owner has over a property and gives it to the lender in order to sell the property for the purpose of paying a debt.  In order for this to happen, the following must be true:

1.     The property must be collateral for the debt, to be sold.

2.     The debt must be defaulted on.  Payments are not up to date.

3.     Creditor must fulfill all the legal requirements of the state the property is in.

The lender does not own the home.  Real Estate is owned by the borrower.  The property is merely collateral.   Foreclosure is not repossession.  If you miss just one payment or are late does not mean you are in foreclosure.  The creditor must take certain legal steps. Check with the state you are in to see what the steps are.

A property isn't foreclosed on until it is sold at an auction and as per the state's procedure.  What being in foreclosure means is the the lender has initiated  proceedings throught the legal process to foreclose a property.

Usually, once there is a default, lender initiates a collection process.  This is the best moment for a homeowner to reinstate the loan and bring it current.  Usually, if after three months the homeowner has not brought it current the lender takes more drastic steps.

This process starts if the creditor fails to collect.  This starts with a legal notice to the owner informing them that if the loan is not caught up within a certain time frame, the property will be sold at auction.  This period is known as pre-foreclosure.  The owner has until the foreclosure date to resolve the loan.  Ways to solve this default are: refinancing, paying off the debt in full, or selling the property.  If none of the above happens by the auction date, the property will be sold to the highest bidder.  The proceeds from the sale are used to pay the creditors.  Anything over that will go to the owner.

These foreclosures happen when properties are over- mortgaged.  This means they owe more on the property then the property is worth.  The only way for the property owner to get out of debt is for a short sale to happen, before going into foreclosure.

The ways properties become over-mortgaged are:  when a second, third, and fourth is taken out; liens; 100% financing; and ARM loans. 

The problem with 100% loans is that the property quickly becomes over-mortgaged if there is a default, because if the owner stops paying, the debt will usually grow faster then the appreciation.  Usually following this are taxes, HOA fees and neglected utilities. 

Usually this debt will exceed 130% of the value.  These secondary mortgages are at the mercy of the lender who has the first.  The secondary creditors will ofter negotiate discount prior to foreclosure to mitigate their losses.

This knowledge is very valuable to investors, brokers, Realtors, and mortgage brokers.

What is a Short Sale?

This is the sale of a property after getting approval from the creditors, for less than what is owed on it.  This means that they are willing to settle for less than what is due.  Lenders realize they will not win all the time.  Changing economic conditions, acts of God, conflicts are some of the causes of unforeseen situations that can turn bad.  This sale occurs when debtors agree to settle their liens for a known amount of money as opposed to taking a chance at auction.  At auction prices are usually discounted.  Lenders are usually willing to mitigate further risk of loss by making deals before auction. Their business is to lend capital, not dispose of foreclosed properties.

Contrary to what you may think, there doesn't have to be a BIG loser to make money in the foreclosure business.

The time leading up to foreclosure is very stressful and volatile for all parties.  A professional in this business mediates a settlement that  all parties can move on.  In a short sale, lender has agreed to settle without further claims, and the property owner  clears their obligations without negative effects of a foreclosure and garnishment off additional monies.  The professional will be thanked by all of the parties involved. 

Why do this?

Learning all you can about pre-foreclosure investing can greatly expand a real estate agents earning potential.  If is vital to understand properties in foreclosure.  The benefit of being well versed in foreclosure is being one of very few who are able to understand these proceedings and transactions.  Many do not want to work with these listings.  Due to this, it is easier to obtain listings or obtain listings from other agents. 

Who are involved in a short sale?  THey are  the home owner, borrower, creditors, Loan mitigation officers, trustee, additional lien holders, title company, escrow officer, Realtor, and appraiser.

Home owner:

When a property is in foreclosure, the title is usually clouded.  Officially, the owner is the person showing on the records as the owner of the property.  This info can be found on the title.

Many times the property my have more than one owner.  ie. co-owned by husband and wife, friends, or business associates.  This can also be found on the title.  You need to do a title report of see who all the owners of the propertyare.

The home owner is not always the same person as the borrower.

Borrower:

The borrower is the one who took a loan and secured it with the property in foreclosure.  The borrower is also the one who is responsible for paying the loan.  Pull a trust deedto see who the borrower is.  The borrower will be listed as Grantor.

Properties that had two borrowers, but due to a divorce, one has quit claimed out the propuy a property to the other borrower without refinancing.

Creditors:

Creditors are any and all lending institutions, businesses or persons secured through a trust deed or lien on the property.  Creditors secured by the property can be lending institutions, individuals, government, HOA's, ex spouces, Child support, etc...

Properties in foreclosure many times have more than one creditor.  To by a property through short sale, the buyer has to hegotiate and settle wiht all creditors individually.  Pull a title report to see all the listed creditors.

Loss Mitigation Offricers:

These are the lending institutions reprensentative who's job is to resolve any issues arising form the defaulted loan.  These are the ones who negotiate the short sales. 

The loss mitigation department is the lenders unit in charge to avoid, reduce, and minimizelosses.  These officers are devt collectors.  Any information given to them will be used to the banks advantage to collect on the loan.

Trustee:

This is the person or entity in charge of foreclosing on the property.  This is usually an attorney firm speciallizing in default services for the lenders. 

The true function of the trustee is to foreclose in order to collect on a debt.  Other services they provide are provision of payoff statements, collection of payments, negotiation of short sales, and Collateral preservation.

Additional Lien Holders:

This is any other creditor secured by the property.  The following are examples of these: first mortages; second mortgages; judgment liens; tax liens; city and county taxes; HOA liens; mechanics liens; etc...  Check title report to view these.

Most common additional creditor is a second mortgage.  The majority of the good short sale profit opportunities come from these.  The reason is that under a forclosure, the second lender is compelled to discount because  they will probably loose more principal, if the property is sold at auction.  This is why they carry higher interest rate then firsts.

Title Company

This is a neutral party that examines the title, issues a preliminary title report, acts as escrow agent, records documents, and issues the title insurance policies for a transaction.  Their main business is to sell title insurance and close real estate deals.  Escrow is the closing  of a real estatedeal.  This is when all the documentation and funds are placed with a third party for processing and disbursement.

Title wants to do as many transactions as they can.  They need an investor to be successful and close many more transactions with them.  To do this, they provide many services that are essential to the investor:  Property profiles; farm lists; NOD list; access to online information.

Escrow Officer:

This agent is the title company's rep engaged in closing a transaction.  They handle all the documents and funds needed to close a transaction.  They are regulated by the state and the title company they work for.  The officer willing to work in short sales is one of the most important and valuable members of the investor team. 

Appraiser:

The appraiser is a licensed third party professional who estimates the value of a property.  An appraisal is the estimated value of a property based on a detailed study of the property.

They are involved in determining the value of properties in foreclosure only when the lender requests it. Appraisals usually cost 350-450 depending on what kind of appraisal is needed.They use the comparable value method to like properties.

Appraisers and BPO Realtors are hired by the lender through a third party that serves this need of the foreclosure industry.

BPO Realtors:

This means Brokers Price Opinion.  These are Realtors that provide property price opinions.  Lenders will usually hire a BPO.

These brokers usually are in the business of listing bank owned properties.  They usually get paid less than $100 per listing. The reason they would want to do this is to get bank owned listings.  This can create a conflict of interest.  The more properties make it back to the bank the better.  However, it is rare that the same Realtor who did the BPO getting to list the property, if it gets repossessed are low. For this reason, you need to be professional and get in good with the BPO Realtor.