banks (13)

Are the banks holding back... I have proff

I have a client who hasn't made a payment in two years. His loan mode was to crazy to accept. So they agreed that they would do a short sale. Well the client decided not to move forward with the short sale till he at least got a notice of default. Its been now 4 month that nothing has happened. Then in the last month the client got a call from the bank offering to give up the property for $5,000. The client said NO. I want at least $10,000. The bank has not responded. No this is Wellsfargo. Not  small potato. Just figure. They delay is something that shows the banks hand in the game. I have two other REOs that have been sitting empty. They where going to put them on the market and nothing in the last 7 months. I have contacted the asset company and no response what so ever. Now why is this happening? The story about the banks are holding off is the reason. Now this bank is US Bank. Again not a small potato. One last one. I have a listing with PNC bank. Its vacated 3 months ago. And waiting for a clean out approval. And nothing. The old owner is suing them stated that they took her property in the from her.  So its tied up until they clear it out but the funny thing is that they got a lock out on her. Just figure. Everything is tied up with attornies who are still making a fortune with the legal battles and the banks not wanting to pull the trigger. Time will tell. I just seam on CNN that the word on the street is that the housing market increase is in jeopardy. Now do your homework. What is that about?

Cheers

Paul Conti

Legacy Real Estate

San Jose, ca 

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Please share some tips on how to become approved with asset management. I can share some tips from my personal experience. I have just basically attended every netowrking event out there. Join REO networking groups, talk to other agents who have already established relationships with AM's. Also, becoming an area expert an learning the local tenants laws and how they apply to your potential assets. If you have more to share, please do. Thank you!

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I have not heard this topic brought up much when taking REO courses and online discussions on how to grow your businees. I have read talks of failed banks on post and names of banks along with a direct link to US Treasury in various places but not how it relates to growing your REO business. I have to think there are numerous ways to use this list to help to gain new listings after all these banks have assets they are holding and if the bank is closing this would most likely direct you to think they may be toxic assets.

 

 

FDIC: Failed Bank List  here is a link to find the official list.


 

The FDIC has released the financial statistics on the banking industry for the of 2011 to date 116 .

 

As of May 20, 2011, the FDIC has participated in the closing of 116 banks this year.

With the first two quarter results now available we can observe the actual shrinkage in the number of banks in the United States.

On March 31, 2011 there were 6,453 banks in the United States, 77 less than existed on December 31, 2010.

There were 6,773 banks in existence a year earlier.

 

At the start of the recession in December 2009, there were 7,284 banks in the banking system.

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The largest drop in banks in the first quarter was in the smallest institutions: there were 51 fewer banks with assets of less than $100 million at the end of the quarter than at the end of 2010.

Banks between $100 million in asset size and $1.0 billion in asset size dropped in number by 34 units.

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This year I have been completing numerous BPO's for homes in my area. BPO is an acronym for Broker Price Opinion.  Broker price opinions are a valuation service that real estate brokers can offer to banks.  Performing these BPO's has only strengthened my ability to properly assess how much a property/home is worth in today's market conditions.  Completing BPO's in local cities like Janesville, Milton, Beloit, Evansville, Elkorn and Madison has given me a unique view into the intricacies related to each market.  I also have a better understanding of how the banks determine their home values when it comes to short sales, pre-foreclosure decisions and REO properties.  The article below explains in greater detail what a broker price opinion is.

Regards,
Michael Collins - Broker
Short Sale & Foreclosure Resource

What is a Broker Price Opinion?

Broker Price OpinionWhen a bank or asset manager obtains a new foreclosed listing to sell, they immediately need to know the home's value. Typically a bank will assign one to three agents to evaluate the approximate selling value of a home. These banks expect each agent to submit three comparable sold listings and three comparable active listings as well as an estimate of what the agent thinks the home will sell for.

A Broker Price Opinion is not as detailed as an appraisal and does not entail as much work. BPOs differ from Appraisals in a number of ways:

  • Appraisals typically cost over $300. Most BPOs pay brokers between $50 and $100.
  • Appraisals require detailed square footage measurements. BPOs rely on county assessors' recorded measurements.
  • Appraisals use a standard format recognized and used by lenders and mortgage professionals for precise property valuations. BPO's are prepared in different formats and are used simply as decision making tools for asset managers of each bank.
  • Appraisals are typically 15-20 pages long with detailed information on each aspect of a property. BPO's are usually 2 pages long with information pertaining only to a final selling price.

 

Why Do Banks need Broker Price Opinions?

Asset managers and bank personnel make decisions on several properties every day. Reading through a lengthy 20 page appraisal and filtering out the critical information is a waste of their time. These asset managers need concise, financial documents that make their choices easier. That's why BPOs are so critical to their job. In addition, a BPO saves the bank over $200 per property compared with a standard appraisal. That money adds up quickly and saves the bank thousands and thousands of dollars a year.

Another reason BPOs are preferred by banks is that the turnaround time is much quicker than appraisals. BPOs can usually be performed by agents in under 48 hours. Many appraisers visit the property within 48 hours, but then require another day or two to process the information and create the full report.

Article Source: http://EzineArticles.com/1844386
Author: Brian Anthony

***************************
If you are looking to purchase or sell a home in Rock, Dane or any of the surrounding counties in Wisconsin, please give me a call.  We are based in Janesville, but service Madison and many other surrounding Wisconsin cities.

Ask me about our 1% credit at closing for buyers.  That could mean $2,000 on a $200k home purchase!

Regards,
Michael Collins - SFR - Short Sale & Foreclosure Resource
(Broker, Realtor, Real Estate Agent)


Rock Realty
Rock Solid Real Estate Strategies
PO Box 2444
Janesville, WI 53547-2444
c: 608.921.8536
f: 877.774.7625
Mike@RockRealtyWI.com
http://www.rockrealtywi.com/

Follow us:
www.twitter.com/RockRealty
www.facebook.com/RockRealtyMike

Wisconsin Short Sales
Madison Wisconsin Short Sale Realtor®
Janesville Wisconsin Short Sale Realtor®
Beloit Wisconsin Short Sale Realtor®

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So what banks use RES.NET?

This I have to say is an odd business model that RES.NET has currently. I don't know who has advised RES.Net to not disclose or make easily available the banks that utilize their services.I would think the thought would be to have as many Realtors sign up for their services at RES.Net as possible to make sure that Realtors are already familiar with their services and using the system before a bank contacts the Realtor and when asking the Realtors they are contacting and asset manager would want to hear that they are using the service or at least familiar with Res.Net. functions.

 

I had posted on Wordpress that I had renewed my Res.Net AMP subscription which I also had a simliar post on ActiveRain and on here on REO PRO but Wordpress had fed to my Facebook and Twitter accounts which received some responses via email from other Realtors.

 

The main question is do you get business from RES.Net and what banks use RES.Net

 

I have read through post on ActiveRain and REO PRO members through the searching options on both sites and I found  that the following banks use RES.NET according to members.

 

Suntrust, GRC, Goodman Dean, IAS, Keystone,Beal,Capstone,PMH,FAS,Excelle,SAM and PNC.

 

If you know of any others that use Res.Net please leave a comment on this post so other members can know when looking at signing up for Res.Net who all the banks are they may have a chance to get a listing from.

 

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This is a timeline that I hope everyone will find useful. This is just what I have found to be the norm. If in doubt always best to check with your asset manger unless directed to send questions to their pre marketer.

 

 

Agent Task

Deadline (from when task is opened)

Accept/Reject Listing

4 hours

Determine Occupancy/Units/PPE

1 day

Provide HOA Information

2 days

Broker Sign Off (verification initial services complete)

1 day

Checklist of Damages

2 days

Initial BPO Online

3 days

MLS Sheet/MLS Number

1 day

Marketing Description

1 day

Supply Marketing Photo

1 day

Property BPO Form (updated every 60 days)

3 days

Property BPO (Change Listing Agent)

2 days

Monthly Status Report

2 days

Supply Listing Extension

1 day

Send Signed Contracts

1 day

 

 

 

 

Accredited A-REO REO Agent Five Star Institute REO Certified Equator Certified ReoTrans Certified Certified E-Pro™ Realtor
Short Sale and Foreclosure Certified Realtor Res.Net Certified

 

Brandon Jordan

 

Brandon Jordan's Facebook Profile
Add me to your Facebook

 

View Brandon Jordan's profile on LinkedIn

 

 

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The story continues in Seattle. Another local bank that has had troubles dealing with Special Assets related to their new construction loan departments has gone down again. This bank as many before it fails to recognize that they need to make changes with regard to how they are handling these distressed assets. Many properties are in the wrong hands of Reators who simply do not have the band width or knowledge of how to dispose of these properties. The bank managers are not willing to change, be transparent, or even discuss options. They just sit on their hands as the ship goes under. No surprise for many of us who watch this daily. Some banks are willing to take advantage of well trained and talented Realtors who know how to re position and sell bank owned multifamily properties. See the story below;


Washington First International Bank, Seattle, Washington, was closed today by the Washington Department of Financial Institutions, whichappointed the Federal Deposit Insurance Corporation (FDIC) as receiver.To protect the depositors, the FDIC entered into a purchase andassumption agreement with East West Bank, Pasadena, California, toassume all of the deposits of Washington First International Bank.

The four branches of Washington First International Bank will reopen during normal business hours beginning Saturday as branches of EastWest Bank. Depositors of Washington First International Bank willautomatically become depositors of East West Bank. Deposits willcontinue to be insured by the FDIC, so there is no need for customersto change their banking relationship to retain their deposit insurancecoverage. Customers of Washington First International Bank shouldcontinue to use their existing branch until they receive notice fromEast West Bank that it has completed systems changes to allow otherEast West Bank branches to process their accounts as well.

This evening and over the weekend, depositors of Washington First International Bank can access their money by writing checks or usingATM or debit cards. Checks drawn on the bank will continue to beprocessed. Loan customers should continue to make their payments asusual.

As of March 31, 2010, Washington First International Bank had approximately $520.9 million in total assets and $441.4 million intotal deposits. East West Bank will pay the FDIC a premium of 0.5percent to assume all of the deposits of Washington First InternationalBank. In addition to assuming all of the deposits of the failed bank,East West Bank agreed to purchase approximately $501.0 million of thefailed bank's assets. The FDIC will retain the remaining assets forlater disposition.

The FDIC and East West Bank entered into a loss-share transaction on $418.8 million of Washington First International Bank's assets. EastWest Bank will share in the losses on the asset pools covered under theloss-share agreement. The loss-share transaction is projected tomaximize returns on the assets covered by keeping them in the privatesector. The transaction also is expected to minimize disruptions forloan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

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This same information, but given in a two hour presentation by a totally different source, is a real eye opener of the level of deception being fed to us.

The attached video talks about just one of the 'Sweetheart' deals the FDIC has made. It has similar deals with over 52 banks.

So all the talk about Loan Mods......Window Dressing.

According to DSNews, which by the way has no article about the back door deals being made, but does have several articles on different institutions buying up defaulted loans......gee I wonder why.

http://www.thinkbigworksmall.com/mypage/player/tbws/23088/1006278

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Financial Crisis Inquiry Commission

All REO Brokers, for that matter all Real Estate Professionals should watch the panel questions to learn about the financial crisis. It is available for viewing at www.c-span.org In the on-going blame game that has been in effect since the beginning of the crisis, this is the most fair and balanced of each parties viewpoint, without media bias one would find on politically motivated networks. Most people have an opinion on the root cause of the meltdown. Some think it rests on a residential real estate housing bubble. I have never been in agreement with that viewpoint. Real Estate is unlike a dot com, it cannot truly be a complete bubble. By definition when a bubble bursts, nothing is left, in real estate, the underlying asset remains, although at a reduced value, it still retains some value.Others believe that the cause is Wall Street greed. Many others believe it was the push for increased homeownership rates.These thoughts are over-simplication, although there is plenty of blame to go around, it is a combination of many factors that created the perfect storm. The purpose of learning where the system went wrong is to prevent repeating the behaviors that brought us here.It's my opinion that there was a whole circle of responsibilty. An environment of appreciating real estate values, and low interest rates had Main St wanting to invest in stocks & real estate rather than put their cash in safe low return savings accounts, or T bills & the like. Wall St under pressure to out perform year over year, as the bar is set higher and compensation tied to investment returns to the firm looked for new investment vehicles to sell. Mortgage loan brokers. some of which didn't even need a license depending on which state they did business in were looking for new loans. Institutional investors looked to maximize returns on their portfolios and pension funds. Enter new products; mortgage backed securities and credit default swaps. CDS were basically a bet that a package of loans would fail, sort of like shorting a stock. In order to sell these new products they needed to be rated, so Credit Rating Agencies such as Moody's & Standard & Poors evaluated these new products. They developed sophisticated models based on extrapolating real estate appreciation. Real estate purchasers counted on rising values and incomes to sustain their mortgages. Relaxed qualifying opened the market to more borrowers, it was now possible to purchase with no money down, lower credit scores and low documentation of income.There were some mortgage fraud where borrowers or originators lied on applications. Some borrowers decided to cash in on their equity to purchase home improvements, vacations, toys or anything else they wanted now. Homeownership rates went up and helped to fuel the economy, So the circle went- until it broke down.Here's why I think it broke-1. Real Estate values are not constant, they fluctuate up and down.2. New sub-prime loans were more profitable than conforming loans, so too many were written.3. MBS & Credit Default Swaps needed an increased amount of loans to package, Wall St wanted more.4. Mortgage applications were taken by inexperienced unlicensed people, including some real estate agents.5. The riskier the loan, the higher the profit to the mortgage broker, and demand for the loans increased.6. Mortgage Companies solicited home owners to refinance, and spend their equity now, rather than build it up.7. Credit Rating Agencies formulas of taking B & C paper, repackaging and rating AAA, (which I liken to taking B & C student and puting them on the Honor Roll) led to global institutional investors purchasing the MBS & CDO's, thinking they were safe.8. Government watch dogs that started to raise red flags were squashed.9. Banking regulations did not apply to Investment Companies.10. The Fed kept long term interest rates low.11. The new finacial products were complex, and some buyers did not understand them, and relied on their ratings.12. No transparency in capital reserves and product mix at major lenders.13. Consumers take loans which they don't understand have pre-payment penalties, balloon payments, negative amortization etc. This one gets alot of bad press, as in "they should have know better" but I know that I have signed documents to purchase a car without reading it, and have many times checked the box on a website that states I have read & understand the terms & conditions without reading them.- and I deal with legally binding contracts everyday.14. Economic conditions weaken, Real Estate values decline,Foreclosure rates increase placing downward pressure on values, Market liquidity tightens, Panic starts. I am not sure which fueled which, but the combination led us here.
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Where do all the Disgraced Mortgage Bankers live?

In Florida of Course.But not only do they live in Florida, they live in a special neighborhood just for these types of bank executives. They all live in an upscale subdivision in beautiful, sunny Fort Lauderdale, Florida aptly named Shady Banks, where the homestead laws favor unsavory characters of this sort. Yes, this picture does not lie and many former mortgage executives live there. 21 of them to be exact.Well, now it is 18. 3 are in Federal prison. As for the others - 7 are under indictment, 5 are under investigation and 6 are on house arrest.Jason Donn
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How fast can the printing presses pump out the money - At least durring the depression our money was backed by Gold and had some value. Now it is quickly becoming worthless.There have been plenty of parallels drawn between the current downturn and the 1930s, but here’s another jarring one: U.S. banks are now charging off loan debts faster than they did in the early years of the Great Depression, according to Moody’s Investors Service.The banks have charged off $116 billion in loans so far this year, nearly three percent of all outstanding loans, Moody’s said in its report. Similar charge-offs accounted for only about 2.3 percent of outstanding loans in 1932, the Great Depression’s third year. A charge-off occurs when a bank writes off a loan as uncollectable and takes the loss for a tax benefit.The new figures help gauge the death of the U.S. credit crisis, a byproduct of the economic downturn begun in 2007. As unemployment and foreclosures increase, loan charge-offs have grown steadily throughout 2009, from $31 billion in the first quarter to $40 billion in the second quarter and $45 billion in the third, Moody’s said.The actual figures could be even worse than Moody’s estimates. The data provider and credit-ratings firm looked only at banks with more than $50 million in assets, meaning nearly a fifth of the nation’s banking assets – held in hard-hit community and regional lenders – weren’t included in the results.In recent months, the recession has lifted and growth has returned to many sectors, including housing and securities. But banks’ profits are increasingly being eaten by the high costs of their credit obligations, Moody’s said.“For most banks, third-quarter earnings were at best modest, and in many cases they recorded sizable losses,” Moody’s said in its report, adding that credit expenses led the firm to conclude that “earnings prospects for the fourth quarter of 2009 and for 2010 are bleak for many U.S. banks.”On a positive note, however, the firm said it had already accounted for the charge-offs in its credit ratings of U.S. banks, and was unlikely to take further downgrading actions – yet.
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Do You Know Who the "Big Two" are?

I won’t make you guess. The “Big Two” are Wells Fargo and Bank of America. Why are they the big two? They are the big two because during the second quarter Wells Fargo and Bank of America combined, originated 44% of all home loans. http://www.nationalmortgagenews.com/lead_story/?story_id=96Why am I telling you this? Well, despite the fact that many loans are sold or transferred from the originating lender, this still means that the “Big Two” are pretty strong and are likely to have REO asset well into the future. Now you say, “but their networks are closed”. True, so you need to know how to get in to their network. Hmmm…sounds like a great question for “Ask the Asset Manager”!
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