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The Real Unemployment Rate is 13%

The Real Unemployment Rate is 13%

You heard me correctly, the real unemployment rate of this country is 13%. So, when I say “Real” what do I mean. The U-6 rate is by far the broadest and most accurate depiction of that the unemployment rate truly is in this country. The reason I believe this is because the U-6 number includes the unemployed (those getting unemployment insurance benefits), the underemployed (those who are working but, only part time or for considerably less than before they became underemployed) and finally, the discouraged (those who have given up on looking).

My point is, the U-6 number includes a larger spectrum of what is really happening to the unemployed in this country and in my opinion, it’s why main street America isn’t feeling this economic recovery that the White House is telling us is going on. As a Realtor, I am faced each and every day with the stark reality of America’s hardship in this economy. You see, I specialize in helping homeowners try to keep their homes from foreclosure. Sure, the White House and media want to broadcast the word “recovery” but, the volume of homeowners that call me, looking for help, hasn’t slowed since 2008. In fact, it’s been rather steady.

From looking at this U-6 number, I can only summarize it’s because more and more people are just giving up. They see no hope, no light at the end of the tunnel. The number of discouraged people who have just stopped looking also explains why we see such a massive increase in the number of welfare recipients. Let’s face it, if you have given up and you feel hopeless, all your savings is gone, you used all your retirement, if you had any in the first place, you lost your home due to foreclosure….where else are you going to turn to?

All said and done, the next time you hear about the “unemployment rate” of this country, stop and take a second look at the U-6 unemployment rate, it may give you a much better understanding of what is really happening out there.  

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Future is Certain, REO to Rent to Become Stable Market Segment

A recent article by Amilda Dymi published on 9/12/2013 @ 2:24pm ET titled “The Single-Family REO Asset Class is Here to Stay” brings up a very interesting set of questions for the REO industry.

Amilda’s article sources are Jade Rahmani of Keefe Bruyette & Woods believes foreclosure to rent properties are growing and perhaps are already considered a growing segment of the REO market which will be with us for the long haul.

Jade reports that the next 12-24 months will see growth in this market so, as a REO agent, I stop and ask myself, what does that mean to my REO listing inventory? Well, I can safely assume we will see more of the same. More specifically, we will see more and more REO agent portfolios shrink and in many cases, become non-existent. This will further weed out the REO agent specialization and further teaches agents that keeping their ear to the pulse of the industry and being able to change focus will remain paramount to the success of high producing agents.

Before 2007, agents were all a buzz with certifications, designations, training courses, etc.. to sale new homes, stage homes, learn about new home green features, etc… After 2007, agents started seeing classes, certifications, designations, training courses for REO and foreclosures. In 2009, we saw a huge emphasis on foreclosure prevention, avoid foreclosure, modify, refinance, etc… 2012’ish, we saw the huge push for short sales and all kinds of seminars, certifications, designations, training courses, seminars, etc… were on every corner. Now, with this whole REO-Rent segment, guess what we are seeing, all kinds of courses, certifications, designations, seminars on how to be a REO Property Manager.

The big push of this “new” type of segment is due to positive cash flow. The truth of the matter is, unemployment is forecasted be high for the foreseeable future and with high unemployment, comes high distressed homeowners. These homeowners will be forced into the rental market, one way or another and if they can stay in the home and just rent it….at least the asset is performing and in most cases, the bank can still get a positive cash flow, even if it’s considerably less if the occupant was paying their mortgage. In other words, it’s not going anywhere, anytime soon and per the article, it’s going to grow like gang busters the next 12-24 months.

So, what do we REO Agents do? We endure, as we always have. The only thing now is, we need to ensure we are diversifying our own business to ensure we continue to endure. We all know NAR has done little to nothing to address our REO woes and therefore, it’s on us to ensure our business survives and if God willing, thrives and the name of that game is diversification.

Yeah, that means we are likely going to be jumping on and off the “education” wagon for all kinds of new certifications, designations, etc… but, we also should be looking closely at our revenue streams and ensuring that REO…in all it’s forms….isn’t the sole majority of our income. Truth be told, in this political climate, it’s just too risky.

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Is The Real Estate Market Really Rebounding?

I have been asked by both my own clients, members of REOPro and the Mather Network, as well as my vendor partners about my thoughts on the real estate market rebound.

My first reply is always to remind people that real estate is directed correlated to unemployment and therefore, as long as unemployment is high, we will NOT have a rebound in real estate.

Normally, I get a lecture about how local real estate prices are on the rise and inventories are down so, isn't that proof enough that we are in a rebounding real estate market?

Sure, real estate markets, like any market, is a servant to the law of supply and demand and yes, when supply is down and demand stays the same, prices go up. Yes, that is happening so, if that is all you measure a rebound against, sure we are rebounding. The problem is, it's foolish to not ask why. Why is supply low?

With a continually high unemployment rate, shouldn't we be seeing the same amount of foreclosures? Sure we should but, why aren't we? I checked with my own local Sheriff's department to see how many foreclosures they did in 2013 so far. I was told, "We have done more foreclosures in 2013 than we have any time before." So, where is all the inventory....why do we have a inventory shortage. In fact, how is that possible when unemployment is at 2008 levels, the height of the housing crisis and when the Sheriff's department is reporting record evictions?

These are all important questions and really need to be answered because, from what I can tell, it appears housing is going through another bubble of sorts. Obviously something is artificially holding inventory off the market to manipulate the law of supply and demand but, for what purpose, what end game?

So, I had to look and see who are the largest holders of default property, HUD, Fannie Mae, Freddie Mac, FDIC, VA, and Bank of America. Well, what do we know about these companies / quasi government entities......all controlled by the Federal government. I had an insider over at Freddie tell me that they have all of these different programs now....namely, deed-in-lease, to keep homeowners in homes and therefore, avoid the foreclosure all together. She went further to tell me that even though they are avoiding the foreclosure, it has no...ABSOUTELY NO, reflection on the ability or inability of the previous homeowners, now renters capacity to pay a mortgage or any of the actual debt due on the mortgage.

She was just speculating but, she went on to tell me that in her opinion, it's likely that 85% or more of those in the deed-in-lease program and others like that, are just buying time because they will never be able to buy the home back, pay off any of the debt or be able to go out and purchase another home any time soon. She and I agreed, it was just a way to keep property off the market even though, without any intervention, it would have been on the market months, if not years ago.

Why would this be happening, why would the government want to artificially inflate prices by keeping property off the market?

1. Raise Property Values: It's not even a question amongst the minds of those in the know, the government wants to inflate prices. The reason is because they are losing so much money through Fannie and Freddie because of foreclosures and short sales that, it's just simply best for them to hold the property, decrease inventories, manipulate the law of supply and demand, raise prices and trickle the REO holdings back on the market so that they can sell for more than the debt owed.

2. Elections Have Consequences: Whichever political party can go out to voters and say that they are responsible for housing prices being on the rise, they will get re-elected....at least that it the thought.

All in all, the housing rebound isn't real, it's artificial for a variety of reasons, not just the two I gave above. The truth of the matter is, many feel this heavy handed control by the government of housing markets is absolutely necessary to prevent the further collapse of the US economy. Others see it as a prolonging of the inevitable and a violations of the free markets. Either way, with increasing debt, increasing unfair manipulations of the market, higher taxes, higher cost of living and higher energy and commodity prices, housing will begin becoming more and more volatile. I believe the days of housing being a safe investment are over. So many outside factors are now playing in the market, regardless if they are suppose to be there or not, it's just not as simple as it was just 10 years ago. Buyers are going to have to be much smarter before the purchase and understand that a minimum of 20% down and staying in the home for a minimum of 5 years might be the only way to get your money back, let alone make any money.

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Since 1999, Titanium Solutions has provided In Person Outreach Services to the Mortgage Industry.  We have helped Mortgage Servicers, Insurers and Investors reconnect with severely delinquent borrowers in an attempt to work out their delinquency in a dignified fashion.  Over the years we have engaged over thirty thousand professionals who have served our business well.  We have reached out to hundreds of thousands of borrowers, assisting them with their difficult financial situation.  The benefits we have delivered are countless.  For many, we have enabled loan modifications that have kept them in their homes, for others we have assisted with a Short Sale while others have benefitted from Deed in Lieu of foreclosure assistance we have provided.  Scores of families across the country have benefitted directly from the In Person Services offered by Titanium Solutions.  For our clients, we have helped them realize hundreds of millions in loss avoidance enabled by our professionals reaching out to their borrowers, who have helped rekindle relationships that would otherwise have gone straight to foreclosure.  And while this service has delivered such overwhelming success to our clients and their borrowers, the use of face to face outreach has seen precipitous decline in the market.  This decline in demand can be attributed to improving mortgage delinquency rates, declining foreclosures and improved servicer processes, all positive signs for the mortgage industry; unfortunately not beneficial for the long term growth of Titanium. As a result of these changes in the marketplace, we have decided to cease operations effective March 13, 2013.

We at Titanium would like to express our deep appreciation to all of our Home Retention Consultants who have worked tirelessly over the years providing such a professional service for our clients to their customers.  You have been the face of Titanium.  It has been your work that has lifted the burdens of so many who have suffered greatly due to the financial crisis this country has experienced.  You were the face at the door delivering the good news of opportunities that existed as we worked to reconnect them with their financial institutions.  You were the hope for many when there was no hope.  The good work you have done is greatly appreciated by the team here at Titanium Solutions and we hope that the contacts you have made and relationships you have established with these homeowners will continue to bear fruit in years to come.

Effective immediately, all work outstanding assignments are being closed and returned to our clients. Should you have any updates that have not been entered into the system, please forward those updates to contact@titaniuminc.com.

 

 


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What is a Home Inspector?

What actually happens during a home inspection? It depends who you ask. Home inspectors are called upon every day to look at properties, but what do their moms, clients and the rest of the world think they do? “What is a Home Inspector?” is a funny video that answers that question from a variety of perspectives.

People often have different ideas about how a home inspector’s job gets done. Whether helping keep people safe from electrical fires, pointing out signs of water damage or confirming that a certain home is a wise investment, this profession is full of hard-working professionals. This entertaining, meme-inspired video takes a comedic look at what they do and don’t do!   

McKissock, the creator of the video series, is a trusted resource for state-specific, state-approved, engineering, land surveying and home inspection courses, regulation information and compliance. This video is aimed at home inspection professionals who can laugh at the different perceptions of their career; check it out at http://youtu.be/JTS4X-k94Ds.

“Home inspectors deserve a lot of respect for the hard work they do every day to help us stay safe and warm. But they also deserve a good laugh,” says Annie Creek, Business Development Manager for McKissock. “We love this series of videos because, no matter the career, we all have inside jokes about what we do – and won’t ever do!”

4359178290?profile=originalIn many states, home inspectors are required to hold a state license and keep up their continuing education. Because rules and regulations vary across the country, it can be confusing to know what the home inspector requirements are for license renewal, including how long it will take, what forms are needed and the related fees. McKissock serves as a comprehensive resource about continuing education requirements and more. For license- and education-related questions, contact 1-800-328-2008.

For busy home inspectors who need a reminder for license renewal (because they are too busy saving cats and babies or inspecting cellars as you will see in the video), McKissock offers a free reminder service that will notify you when your license renewal date is approaching. Visit http://reminder.mckedu.com to sign up.

“Professionals have enough on their plate, so we provide reminders, coursework and compliance information and serve as an ally,” adds Creek. “We have a deep understanding of the lives of people who spend a lot of time in the field and don’t want to be concerned about license deadlines and paperwork.”

McKissock has affiliations directly with many associations to better assist professionals in receiving their continuing education credits. For those with a home inspector job, McKissock has met the standards and requirements of the American Society of Home Inspectors (ASHI), the National Association of Home Inspectors (NAHI) and the California Real Estate Inspection Association (CREIA).

From the McKissock website, state-licensed professionals have access to all they need to fulfill state requirements. We offer governing agency information and mandatory topics needed for license renewal; visit today and you can begin taking required coursework immediately. McKissock offers customizable packages or individual professional engineer, land surveying and home inspector courses. For more information, visit www.mckissock.com and search for your specific profession and location.

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What is a Land Surveyor?

What does a land surveyor actually do? It depends who you ask. “What is a Land Surveyor” is an entertaining video which answers that question from different perspectives: our moms, clients and the world often have different ideas about how we get our job done every day. Whether mapping floodplains, clarifying boundaries for property disputes or advising land developers, land surveyors play an important role. But do people really know what they do? This entertaining, meme-inspired video takes a comedic look at the profession.

McKissock, the creator of the video, is a trusted resource for state-specific, state-approved land surveying, engineering and home inspection courses, regulation information and compliance. This video is aimed at land surveying professionals who can laugh at the different perceptions of their career; check it out at www.youtube.com/watch?v=LoAF5sLn-Ys.

“This video is a fun way to look at an important profession that is often behind the scenes,” says Annie Creek, Business Development Manager. “No matter the career, parents and clients see us with different sets of eyes, but only people in our own area of expertise know the truth.”

For people less familiar with land surveying, it is a diverse career that requires a lot of knowledge and skills. A day in the life may look like:

- Measuring properties and pieces of land to determine boundaries;
- creating maps, land descriptions and reports;
- presenting information for legal matters, maybe even in a courtroom;
- using and understanding GPS equipment and programs;
- and much more.

4359176022?profile=originalLand surveyors are required to hold a state land surveyor license and keep up their continuing education. Because rules and regulations vary across the country, it can be confusing to know what is required for license renewal, including how long it will take, what forms are needed and the related fees. McKissock serves as a comprehensive resource about continuing education requirements and more. For license- and education-related questions, contact 1-800-328-2008.

For busy land surveying professionals who need a reminder for license renewal (because they are too busy climbing a mountain with heavy gear or whistling in convertibles, as you will see in the video), McKissock offers a free reminder service that will notify you when your license renewal date is approaching. Visit http://reminder.mckedu.com to sign up.

“We provide reminders, coursework and compliance information so over-burdened professionals don’t have to worry,” adds Creek. “We have a deep understanding of the lives of people who spend a lot of time in the field and don’t want to be concerned about license deadlines and paperwork.”

McKissock has affiliations directly with many associations to better assist professionals in receiving their continuing education credits.  For land surveyors, McKissock has met the standards and requirements of Registered Continuing Education Program (RCEP), provider number 127505.

From the McKissock website, state-licensed professionals have access to all they need to fulfill state requirements, including governing agency information, any mandatory topic needed for license renewal and they can begin taking required coursework immediately. McKissock offers customizable packages or individual land surveyor, professional engineer and home inspector courses. For more information, visit www.mckissock.com and search for your specific profession.

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Where is all the REO inventory?

 

Like many of you active REO Brokers, I too have found my REO inventory has shrunk....dramatically. In the past 6 months, I have seen 2 of my 4 AMP's layoff almost all of their Asset Managers and send out notifications that they have had their inventory re-assigned to another AMP. I have spoken with AMP CEO's who tell me that inventory is down across the nation and the market is more competitive than it has ever been. All in all, the golden year of REO is over.

Now, this flies in the face of some vital statistics that should be driving REO and keeping us REO Brokers busy as little bees. Let's look at one particular vital statistic, unemployment. Per the Bureau of Labor Statistics, since February of 2009, the nation's unemployment has remained above 8%, peaking at 10% back in October of 2009. Keep in mind, this number doesn't account for the millions of people who drop out of the unemployed workforce but, would still need a full time job. It's speculated that this number, the "real" unemployment rate is 14 - 18%. With 4 years of high unemployment, and a saturated market, most areas see a DOM (Days on Market) of a 6 months or more. So, if just using unemployment numbers and a minimum 6 months DOM, we should still be seeing the same REO inventory as we did at a minimum back in 2009, considering we are still at a unemployment rate above 8% and a "real" unemployment rate of 14%....right? So, where are all the REOs?

Finally, to further this point, I will make one last observation. In the Monday Jun 11, 2012 issue of National Mortgage News, it was reported in the article written by Paul Muolo that Fannie .....Fannie Mae alone, has an estimated $20 BILLION....yes, you heard me correct, $20 BILLION, in mortgages that are in the arrears. So, where are all the REOs?

It was just 3 years ago or so, I would walk into a struggling homeowners home and he would tell me that he was past due 5 months and the bank is threatening foreclosure. We would talk about short selling and he would likely list. 2 years ago, I would walk into a struggling homeowners home and he would tell me that he was past due 8-10 months and the bank was threatening foreclosure. Most of the time we would talk about short selling and he would list. 1 year ago, I would walk into a struggling homeowners home and he would tell me that he was 15 months past due, doesn't have any job prospects, on unemployment and was reading online that he could save his home with some government program. We would do the paperwork for a loan modification and, he would get on his trial payment for 6 months. After the 2nd month, he would default off because he didn't have any money, the bank would foreclose and he would be there for another 6 months till eviction. Now, I can go into a struggling homeowners home and, he tells me he has been past due now for 36 months, worked on a loan modification, was told he doesn't qualify, and now the bank has set a foreclosure sale date in 3 weeks so, he wants to know if he puts his home up for short sale, how much time would that give him before he has to be out. My point is, banks aren't foreclosing within a reasonably time frame after default. My 2nd point is, it seems that government influence, these "save your home" programs have done nothing but create a atmosphere where banks either can't or won't move forward aggressively with foreclosure.

The larger picture here is, we have a lot of homeowners who need to be foreclosed on....yes, I said it. We have a lot of homeowners who are living in homes they no longer own yet, banks aren't evicting. Instead, we have a lot of homeowners who are being feed lies from our government that they can save their homes. It seems to me that these banks are then forced to cooperate, even at their own peril, because some politician wants to win at the ballot box by telling homeowners....."YES WE CAN".

Once the pipe dream has ended and reality sinks in, America the Beautiful is going to become more of America the Broker and the really sad part is that because we refuse to tackle this tragedy of Government gone wild, individual Americans are going to find themselves with nothing more than burdensome debt and a handful of I.O.U's that read, "should-a, could-a, would-a"

Make no mistake, the REO inventory is there.....in a really big way however, it's hidden...away from the sight of most people because politically, it's just not something you can run on and get re-elected if you expose it to the light of day.

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Higher-Credit-Score-266x300.jpg?width=239Golden Rules on Achieving High Credit Scores

“We are glad you chose us as your lender.  As you know, your credit score is _______.”  For some people, filling in that blank might be nerve-racking.  For others, it might be a source of pride and personal accomplishment.  If you are working on your credit score, or simply want to know more about putting together a score that will make friends jealous and bankers swoon, read on.

Keep Your Available Limits Manageable

One of the top factors that affect a credit score is a person’s available credit.  This is simple to understand with some numbers.

  • A person has one credit card to their name.  The available balance is $1,000.  At present, the person has charged a total of $200 on the card, leaving them with $800 available.  As a percentage, the person has 80% available credit.
  • A different person has only one credit card, but their available limit is $300.  At present, the person has charged $100 on the card.  Their available limit is $200 or 67%.

Even though the second person in our example has a smaller outstanding balance, their available percentage is lower and their credit score will be lower.  The closer your available limit is to 100% the higher your score will be.

Pay On Time, Every Time

Without a doubt, the single biggest factor of a person’s credit score is whether or not they pay their obligations on time.  Paying all debts, regardless of the size, on time will do more to improve a person’s credit score than other tactics.

Keep Paid Off Credit Lines Open

Review the earlier example about available credit for a moment.  Suppose you have three credit cards but you only owe money on two of them.  Most people would be tempted to close out the one card in order to reduce temptation of charging too much.  However, closing down the account hurts in two ways.  First, it reduces your available credit limit.  Second, it wipes out the history you had with that account.  Both of these items will lower your score.

Strive to Have a Good Mix of Debt

In order to reach the magical number of 700 or more it is necessary to have a mix of debt that you are paying timely.  A modest automobile loan, one or two credit cards and a small unsecured loan are usually enough to provide someone with enough diversity to get a high score.  Having only one type of debt, regardless of the type of debt or how it is paid, will keep your scores in the 600 to 680 range.

Above all else, it is important to understand that building a strong credit score takes time.  It will not happen in a day, a week or even a month.  You will need to focus on the tips outlined above for a few months, maybe a year, in order to reach the pinnacle of credit scores.

Original Post - Tips for Higher Credit Scores

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Ok....so for the past few months, I have been hearing a lot
of people saying that their REO Inventory has been slashed or REO is really
slow....or...."a decrease in REO inventory" however, I would like to
suggest an alternative opinion.

 

First, let's talk about one of the earliest steps to
foreclosure, the NOD or Notice of Default. Now, I have looked everywhere and I
can't find a single source authority on just how many have been sent out
monthly since the start of 2011 as a nationwide statistic however, I did find some
interesting articles on many different websites that lead me to believe that
the NODs are on the rise. Granted, I searched like 20-30 different websites so,
I can't realistically quote each one however, the overall trend was most areas
have seen a steady or slight increase in the number of NODs each month. I did
see some articles where some areas have seen a decrease in NODs but, these were
really rare and seemed to be in areas where the average home price was well
over 250k.

 

My point above is, most of us haven't seen the numbers of
NODs drop significantly enough to see such a dramatic decrease in inventory.
Let's be honest with each other....how can we have a decrease in NODs when we
haven't really seen a correlated decrease in the unemployment rate? Yeah, I
said it.....and yes, it's obvious. If you don't have jobs...or job growth then
how can you see a decrease or even a leveling out of NODs? You can't....well,
you shouldn't anyways.

 

Now, what I do see happening, more and more is that many
homeowners are staying in their homes much, much longer than ever before. I
remember a time when I would do a relocation assistance negotiations and the
homeowner had only missed like 7 payments. Now, it's more like 24.....as a
minimum.

 

The sad truth of the matter is, regardless of how long these
people stay in their homes, regardless of whatever new "refinance"
plan the government can come up with, these people can't maintain a monthly
payment because they are too buys trying to find the money to pay their cell
phone bill, their electric bill, their car payment, car insurance, gas, bread,
milk, new shoes for little Jimmy and Susie, etc...

 

In short, yes....your inventory maybe shrinking...hell, it
my have even dried up but, it's not because no one in your service area is in
default, it's likely because the servicers and investors in your area are under
some type of regulations or "understanding" that if they don't want
to loose their FDIC insurance or be audited by the FDIC, they better slow their
roll on foreclosure and keep people in their homes....at least until after the
election that is.

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Time Really Is Money

Time Really Is Money

Internet savvy real estate buyers are skipping the old "find a Realtor, and then find a home" process of the past. Instead, 89% start their search online and then through their individual research they find a realtor. That brings up a great question. How soon do you respond to a web based request for information?

ar130729542617745.jpgJeanne M. Gavish posted a great blog on this subject entitled, "How Much Time Do We Have to Respond to Online Leads?" I would highly recommend Jeanne's post as a reminder that we live in a new age of tech-first buyers who won't wait for a realtor to get back to them later that day or the next day. Time is lost money if isn't used correctly.

The Metropolitan Regional Information Systems, our MLS, posted their own article on this subject. It's obviously becoming a pet peeve with home buyers. Agents who don't return calls quickly, respond to emails immediately or ar130729555131956.jpganswer text messages are hurting their own success in this age of smartphones, computers and wirelsss everything. The MRIS article, "Tips for shortening response time and converting more leads" offers techiques you can use to capture those priceless leads. Today, time really is money.

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The movie to big to fail showed for the first time on HBO this past Monday. I am sure this will bring many to do some research on the current status of the relief programs that are out there.

Capital Purchase Program (CPP), under the Emergency Economic Stabilization Act (EESA) in October 2008.


Four groups of entities receiving CPP funds have been created for this report:

  1. CPP (I) Assets greater than $100 billion.
  2. CPP (II) Assets between $10 billion and $100 billion.
  3. CPP (III) Assets between $1 billion and $10 billion.
  4. CPP (IV) Assets less than $1 billion.


Detailed information on reporting can be found at the Federal Financial Institutions Examinations Council website (http://www.ffiec.gov) and at the Board of Governors website (http://www.federalreserve.gov) under "Reporting Forms". In general, only bank holding companies with consolidated assets greater than $500 million are required to submit Y-9C reports.

Public-Private Investment Program for Legacy Assets

SIGTARP:

“The Legacy Securities Program continues to develop, and on July 8, 2009, Treasury announced the selection of nine PPIF managers that will receive debt and equity financing of up to $30 billion in TARP funds during the initial capital-raising efforts for the PPIFs. Treasury has stated that PPIP, originally intended to involve up to $1 trillion in total funds, may involve up to $75 billion of TARP funds. ”

“According to Treasury, “the goal of the Legacy Securities Program is to restart the market for legacy securities, allowing banks and other financial institutions to free up capital and stimulate the extension of new credit.” For the purposes of PPIP, legacy securities are ABS supported by real estate-related loans issued before January 1, 2009, and originally rated AAA (or an equivalent rating) by two or more NRSROs. Private investors and Treasury will co-invest in PPIFs to purchase these assets from financial institutions. Furthermore, Treasury will offer debt financing to the PPIF equal to or double the total private equity investment. Treasury, the PPIF manager (which is required to invest at least $20 million of its own money in the PPIF), and the private investors will share in PPIF profits on a pro rata basis. PPIF losses will be shared on a pro rata basis up to each participant’s investment amount. As of September 30, 2009, there were no asset purchases.”

Term Asset-Backed Securities Loan Facility (TALF).

Oct. 22 (Bloomberg) -- A U.S. government program aimed at reviving the mortgage-backed securities market returned more than triple what stocks or bonds gained in the past year.

October 22, 2010, 4:21 PM EDT

(Updates with professor’s comment in eighth paragraph.)

The eight funds created under the Public-Private Investment Program, or PPIP,

PPIP Funds Surge 36% in First Year, Treasury Says

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So who is watching the store?

The ACLU (The American Civil Liberties Union) filed a petition with a Florida appellate court this month.

The 20th Judicial Circuit Court in Lee County, Florida.They are trying to stop the court from pushing foreclosure cases onto a mass docket that was designed to quickly handle an influx of foreclosure cases.

I couldn't believe with the problems of the last year this could even be a thought in anyones mind. We have to make sure all the foreclosures are heard fairly that is why we have a court system.

All of this at a time when there are reports out that the OCC is set to announce a foreclosure settlements the settlements are with major mortgage servicers over recent foreclosure problems and this will entail from multi-billion dollar fines to forced principal reduction and stricter emphasis on pursuing modifications.

Office Of the Comp

OCC according to Wikipedia:

The Office of Thrift Supervision (OTS) is a United States federal agency under the Department of the Treasury. It was created in 1989 as a renamed version of another federal agency (that was faulted for its role in the Savings and loan crisis). Like other US federal bank regulators, it is paid by the banks it regulates. The OTS was initially seen as an aggressive regulator, but was later lax. Declining revenues and staff led the OTS to market itself to companies as a lax regulator in order to get revenue.

The OTS also expanded its oversight to companies that were not banks. Some of the companies that failed under OTS supervision during the Financial crisis of 2007-2010 include American International Group (AIG), Washington Mutual, and IndyMac.

The OTS was implicated in a backdating scandal regarding the balance sheet of IndyMac. Reform proposals from Henry Paulson, Barack Obama, and the U.S. Congress have all proposed to merge the OTS with the Office of the Comptroller of the Currency.

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This would be my suggestion to anyone starting out. There are many emails I receive everyday about buying a domain name for any of the listings that I currently have.I would say before you think of buying a website like this, go to a domain name register and look up your area that you cover.

 

It may be more difficult if you are in a larger city but this might suprise you if you are in the burbs or in a rural area. I was writing this post and as I was writing it I went to a website register site and looked up what was left in my area I found www.NicevilleREO.com was still available so I secured that name tonight.

 

What spurred this post was a call I recevied this week on a new listing I received from a pre marketer at a company I have been trying to get in the door with for awhile. I was told she checked out the agents for my area and looks for someone who is easy to find. " I went to CrestviewREO.com" this stuck in my mind and if it was something that was pointed out I know this helped my foot in the door.This triggered a quick google search I was told by the assigner which found my www.LinkedIn.com and my REO qualifications and pushed my name to the asset manager and preservation task were sent over shortly after.

 

Take the time look up your area REO.com and see if it is available.

 

4359147224?profile=original 

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Lately, more than ever, I have been getting calls from agents who are all asking the same question and, that is, “are you working any offers on 666 Money Pitt Lane”

Well, before I tell you my typical response, I would like to share some insight and see if you agree.

Per Realtor.com,

“An agent is bound by certain legal obligations. Traditionally, these common-law obligations are to: Put the client's interests above anyone else's; Keep the client's information confidential; Obey the client's lawful instructions; Report to the client anything that would be useful; and Account to the client for any money involved.”

So, here are my questions.

1. Is it in your clients interest to reveal to other agents that you are or are not working other offers?

My argument is NO, it is not in your client’s interest to reveal that you are or are not working other offers.

Simply put, when answering the question, you don’t know the motivation behind the person who asked it. We can get into a bunch of “what if” questions but, ultimately if by answering the question the agent decides not to show the home or not put in an offer then, you just hurt your own client. Ultimately my job is to get as much for my client as possible in the shortest amount of time and that means, getting as many offers in the door as possible. I could be wrong but, I suspect that the main reason Realtors ask this question is because they want to avoid being in a multiple offer situation or they want to be in better negotiating position. I guess that’s all fine and good but, it’s not my job to make that so for another agent and their buyer.

Now, let’s flip the script a little here.

Do you think my argument is valid for bank owned properties? What about Fannie Mae properties? HUD properties?

I won’t answer that question for you, I would love to get your responses.

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A Better Way to Do a Short Sale

In the past few years short sales have been long, frustrating, and undependable. The sellers had to prove they were desperate and often had to stop making payments in order to qualify for a short sale. The listing agent had to spend hours trying to figure out who was able to make the decision and whether or not the documents were even received. They buyer’s agent had to wait endlessly for an answer while his or her buyer threatened every day to bail. The closing statistics for short sales have been estimated at 10-30%. Many people felt why bother?
 
So why should you bother? For some reason banks are getting on board with the idea that allowing a seller to do a short sale is a better deal for them than foreclosure. In general banks get 45 cents on the dollar for a foreclosed home and 75 cents on the dollar for a short sale. It has taken a long time for the banks to get on board with short sale approvals, but short sales are now getting approved and some banks have started trying to make the process more efficient.
 
Bank of America, who has taken over Countrywide, is now using a platform called REOtrans for their short sales. This platform started as a method for asset managers to process bank owned properties with realtors and is a very effective method for all parties, as they can see in real time where the file is and what else needs to be done. As anyone knows who has dealt with a Bank of America or Countrywide short sale, it can take a month after an agent faxes the short sale package to the bank for the bank to upload it onto their system. Now it is uploaded directly on the site and everyone knows it is there. Everyone will always know where they are in the process so no more allocating 3 hours a week for follow up per file.
 
 
Wachovia wins the prize for the best short sale system. Twenty five percent of Wachovia loans are 60 days or more past due, so they have decided to encourage more short sales. They have a system that will get the sale approved and closed in 45 days or less, and do not care if the seller has hardship, or just made the decision that they would rather give up a home than pay for a home for 10-20 years before they are no longer underwater. Underwater means that more is owned on the home than the home is worth. Some estimates put the number of underwater homes in this country as high as 50%. Given those stats Wachovia has made a decision that if someone wants to sell short they will facilitate it. This is not to say they will just give a home away, but if a home has $700,000 of loans on it, and it is now worth $500,000, Wachovia will let someone buy it for close to $500,000 and forgive the other $200,000 debt, and do it in a reasonable amount of time. Plus, they will even give the seller up to $5000 for moving expenses.
 
Wachovia bought World Savings so this applies to World Savings loans as well. Wachovia was acquired by Wells Fargo but as of now Wells is not doing the same thing with short sales. Hopefully this program with Wachovia will work well and spread to not only Wells Fargo, but to other banks as well.
 
If you have any questions about short sales, or other real estate related questions please feel free to contact me.
 
Marcy Moyer
Intero Real Estate Services
650-619-9285
D.R.E. 01191194
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A Better Way to Do a Short Sale

In the past few years short sales have been long, frustrating, and undependable. The sellers had to prove they were desperate and often had to stop making payments in order to qualify for a short sale. The listing agent had to spend hours trying to figure out who was able to make the decision and whether or not the documents were even received. They buyer’s agent had to wait endlessly for an answer while his or her buyer threatened every day to bail. The closing statistics for short sales have been estimated at 10-30%. Many people felt why bother?
 
So why should you bother? For some reason banks are getting on board with the idea that allowing a seller to do a short sale is a better deal for them than foreclosure. In general banks get 45 cents on the dollar for a foreclosed home and 75 cents on the dollar for a short sale. It has taken a long time for the banks to get on board with short sale approvals, but short sales are now getting approved and some banks have started trying to make the process more efficient.
 
Bank of America, who has taken over Countrywide, is now using a platform called REOtrans for their short sales. This platform started as a method for asset managers to process bank owned properties with realtors and is a very effective method for all parties, as they can see in real time where the file is and what else needs to be done. As anyone knows who has dealt with a Bank of America or Countrywide short sale, it can take a month after an agent faxes the short sale package to the bank for the bank to upload it onto their system. Now it is uploaded directly on the site and everyone knows it is there. Everyone will always know where they are in the process so no more allocating 3 hours a week for follow up per file.
 
 
Wachovia wins the prize for the best short sale system. Twenty five percent of Wachovia loans are 60 days or more past due, so they have decided to encourage more short sales. They have a system that will get the sale approved and closed in 45 days or less, and do not care if the seller has hardship, or just made the decision that they would rather give up a home than pay for a home for 10-20 years before they are no longer underwater. Underwater means that more is owned on the home than the home is worth. Some estimates put the number of underwater homes in this country as high as 50%. Given those stats Wachovia has made a decision that if someone wants to sell short they will facilitate it. This is not to say they will just give a home away, but if a home has $700,000 of loans on it, and it is now worth $500,000, Wachovia will let someone buy it for close to $500,000 and forgive the other $200,000 debt, and do it in a reasonable amount of time. Plus, they will even give the seller up to $5000 for moving expenses.
 
Wachovia bought World Savings so this applies to World Savings loans as well. Wachovia was acquired by Wells Fargo but as of now Wells is not doing the same thing with short sales. Hopefully this program with Wachovia will work well and spread to not only Wells Fargo, but to other banks as well.
 
If you have any questions about short sales, or other real estate related questions please feel free to contact me.
 
Marcy Moyer
Intero Real Estate Services
650-619-9285
D.R.E. 01191194
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A Better Way to Do a Short Sale

In the past few years short sales have been long, frustrating, and undependable. The sellers had to prove they were desperate and often had to stop making payments in order to qualify for a short sale. The listing agent had to spend hours trying to figure out who was able to make the decision and whether or not the documents were even received. They buyer’s agent had to wait endlessly for an answer while his or her buyer threatened every day to bail. The closing statistics for short sales have been estimated at 10-30%. Many people felt why bother?
 
So why should you bother? For some reason banks are getting on board with the idea that allowing a seller to do a short sale is a better deal for them than foreclosure. In general banks get 45 cents on the dollar for a foreclosed home and 75 cents on the dollar for a short sale. It has taken a long time for the banks to get on board with short sale approvals, but short sales are now getting approved and some banks have started trying to make the process more efficient.
 
Bank of America, who has taken over Countrywide, is now using a platform called REOtrans for their short sales. This platform started as a method for asset managers to process bank owned properties with realtors and is a very effective method for all parties, as they can see in real time where the file is and what else needs to be done. As anyone knows who has dealt with a Bank of America or Countrywide short sale, it can take a month after an agent faxes the short sale package to the bank for the bank to upload it onto their system. Now it is uploaded directly on the site and everyone knows it is there. Everyone will always know where they are in the process so no more allocating 3 hours a week for follow up per file.
 
 
Wachovia wins the prize for the best short sale system. Twenty five percent of Wachovia loans are 60 days or more past due, so they have decided to encourage more short sales. They have a system that will get the sale approved and closed in 45 days or less, and do not care if the seller has hardship, or just made the decision that they would rather give up a home than pay for a home for 10-20 years before they are no longer underwater. Underwater means that more is owned on the home than the home is worth. Some estimates put the number of underwater homes in this country as high as 50%. Given those stats Wachovia has made a decision that if someone wants to sell short they will facilitate it. This is not to say they will just give a home away, but if a home has $700,000 of loans on it, and it is now worth $500,000, Wachovia will let someone buy it for close to $500,000 and forgive the other $200,000 debt, and do it in a reasonable amount of time. Plus, they will even give the seller up to $5000 for moving expenses.
 
Wachovia bought World Savings so this applies to World Savings loans as well. Wachovia was acquired by Wells Fargo but as of now Wells is not doing the same thing with short sales. Hopefully this program with Wachovia will work well and spread to not only Wells Fargo, but to other banks as well.
 
If you have any questions about short sales, or other real estate related questions please feel free to contact me.
 
Marcy Moyer
Intero Real Estate Services
650-619-9285
D.R.E. 01191194
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Short Sale Flipping isn’t Fraud…….right? WRONG!

I have argued, for several years now that in my opinion Short Sale Flipping Schemes that use Option Contracts without full disclosure to all parties involved, including the selling bank is fraud however, we still have many agents out there that just don’t get it.

Quote from John Doe Realtor # 1

Jesse you have been ill informed and need to watch out what type of horrible , fear mongering advice you are putting out on a public board.

Quote from John Doe Realtor # 2

“Real Estate Day trading is not illegal. While you may wish to make it so, wishing and hoping won't change the law. Please cite some code somewhere that supports your statement”

Quote from John Doe Realtor # 3

“Jesse you are obviously an intelligent man but a bit misguided”

This is just a few examples of what has come my way however, it hasn’t changed my opinion and, now I have a recent ruling by a Magistrate in Connecticut to support my opinion. To read the entire article yourself, follow this link, http://nationalmortgageprofessional.com/news16047/connecticut-real-estate-agent-admits-defrauding-bank-short-sale-scheme

In a nut shell, like many short sale investor flips I have seen, the selling Realtor doesn’t disclose to the selling bank that they are planning on selling the property for a profit and the Selling Realtor doesn’t disclose that the offer they are sending into the bank isn’t the best offer they received on the property. This is Mortgage FRAUD and now I have precedent to agree with me.

Quote from the National Mortgage Professional.com article….

“According to court documents and statements made in court, McElaney worked with Sergio Natera, also a real estate agent, to defraud Regions Bank, which held two mortgages on a residential property in Bridgeport. On Dec. 5, 2007, McElaney, who was a listing agent for the property, received an offer to purchase the property for a price of $132,500. However, McElaney and Natera subsequently directed communications to Regions Bank that the highest offer to purchase the property was for $102,375 by BOS Asset Management LLC, an entity that Natera controlled. The bank agreed to a short sale of the property for the lower price, and released its mortgages on the property. On June 9, 2008, Natera, through BOS Asset Management, sold the property for $132,500 to the original bidder on the property, and Natera and McElaney retained the difference in the two sale prices.

McElaney is scheduled to be sentenced by United States District Judge Janet C. Hall on May 10, 2010, at which time she faces a maximum term of imprisonment of 30 years, a fine of up to $1 million, and an order of restitution. Natera pleaded guilty to one count of bank fraud on Feb. 11, 2010. He awaits sentencing”

If you are in a Short Sale Flip Transaction and you aren’t disclosing to the selling bank that you plan on re-selling this home for a profit, you are opening yourself to risk that could be argued as fraud and your insurance doesn’t protect against that

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Housing is a right?

Are Liberal Progressive Government policies pushing America toward a Federal takeover of housing?

I know for many of us, this question seems crazy however, make no mistake, Progressive Liberals would love to see America provide housing to each and every person in America, citizen or not. In fact, Franklin D. Roosevelt introduced this idea to America by including, “the right of every family to a decent home” as his 5th right in his proposed Second Bill of Rights.

So, would it be possible for the Government to just take over the housing industry and, promise everyone a home? It is not only possible, it’s happening and it’s taking place under the guise of “Housing Recovery” and the instrument which will be used to do the takeover is TARP.

Back in October of 2008, TARP was used to stabilize the financial institutions after their delinquent mortgages they were holding came close to causing these banks to melt down. What many people don’t realize is, this meltdown was a direct cause of Government regulation. I don’t want to bore you with all the details however, all you need to do is bring up Google and type, Community Reinvestment Act. Read for yourself how the Fed’s forced lenders to adopt risky loan practices and allowed community organizations similar to Acorn to dictate to these services how many loans they had to make and to whom they went to. I know that sounds crazy…..and, I am sure I am sounding like a broken record but, these banks and servicers didn’t make risky loans because they were greedy, like the media have you believe, they did it because they were mandated to do it.

Why would the government allow citizens to dictate how a bank would give out loans? It’s all part of the progressive evolution of this country. It was set into motion by F.D.R. Progressives knew they couldn’t revolutionize our country, Americans lover freedom too much however, they knew they could slowly progress us away from our “inadequate” Bill of Rights and Constitution with small steps and Freddie Mac, Fannie Mae and the Federal Reserve were all part of the larger picture. To put a chill down your spine, let me give you a quote to further my point.

Franklin Roosevelt said in his radio address to the nation in January 1944.

“This Republic (the United States of America) had its beginning and, grew to its present strength, under the protection of certain inalienable political rights – among them the right of free speech, free press, free worship, trial by jury, freedom from unreasonable searches and seizures. They were our rights to life and liberty.

As our nation has grown in size and stature, however, - as our industrial economy expanded these political rights proved inadequate to assure us equality in the pursuit of happiness.”

You may not have known this was an agenda item on the Progressive left but, let me assure you, it is. It is my opinion, Progressive Liberals are using this Housing Crisis to their advantage. In fact, I am of the opinion that this crisis is engineered by Progressive Liberals. For those of you reading this thinking to yourself, it’s not possible, it could never happen, well……have you seen this?

http://banking.senate.gov/public/_files/ChairmansMark31510AYO10306_xmlFinancialReformLegislationBill.pdf

It’s a new bill being floated around, pay special attention to Title III, TRANSFER OF POWER TO THE COMPTROLLER OF THE CURRENCY, THE CORPORATION, AND THE BOARD OF GOVERNORS. This bill is laying the groundwork for a true and complete takeover of the financial institutions and likewise, as exemplified with Bank of America, the Government will mandate to banks that they have to “forgive debt” or “lower payments”. All that sounds good on its face value but, who do you think is paying for all this “forgiveness” and “lower payments”………………………YOU ARE, THE AMERICAN TAX PAYER.

Now, I do believe that President Obama is a FDR Progressive Liberal. I can give you quotes and examples of this, just let me know if you need them. Because he is a FDR Progressive Liberal, he believes everyone should have a decent home and he is going to use the American Tax Payer to redistribute the wealth of this country through the Progressive Liberal engineered Housing Crisis to make it happen. Did you read what the White House said yesterday? Just in case you missed it, let me tell you.

“The White House plans to announce on Friday that it will require lenders to lower the mortgage payments of some unemployed workers and encourage lenders to eliminate some principal debt of homeowners who owe more than their home is worth, sources familiar with the plan said Thursday.”

http://www.foxbusiness.com/story/markets/industries/government/update--white-house-announce-housing-aid-friday--sources-493713530/

All of that sounds great till you figure out who is paying for it. Make no mistake, I am all about helping the down and out, let’s not forget, I know what it is like to live in a shelter for a year in six months. I know what it’s like to have a single parent with 2 jobs and you as the eldest child had to take care of younger sibilings, I know what it’s like to live with 5 people in a one room apartment in the worse part of town you can imagine…I know because I have personally been there. In fact, I still have family members that are still living that life and my heart breaks every single day for them but, no matter how hard things get, no matter how bad the outlook appears today, we are Americans, we love Freedom and Liberty and Roosevelt was wrong in 1944 and his Progressive Liberals are wrong today.

Homeownership is not a right, it is a privilege, an honor, an accomplishment, you have to work hard to own a home. In fact, because homeownership has been so easy for so many, I walk into homes that have been abandoned and abused because the homeowners didn’t care or couldn’t afford the maintenance on the home, either way…..it’s wrong!

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What is wrong with this industry?

Quote,

"...if all of these REO companies are scaling back, why bother purchase AMP under res.net or get certified with REOtrans if we don't know if there is going to be enough work for those of us who can't get into any other company or the other companies are telling us that they are going to give their work to the preferred brokers ?" Anonymous

As I have always said and will always tell you, it's not the "company" you're with or the subscription level you paid for that is going to give you any chance at getting a REO.

The REO industry is the preverbal “boys club” and for those agents who don’t understand this concept, you will fall victim to false promises made by Asset Management Companies and Technology Platforms alike.

I have preached, revealed, screamed, wrote, published and explained to all of you through my blogs that unless you are actively contributing to this industry…..your success in breaking in is going to be less than stellar, if at all.

“Ned” our resident Asset Manager has revealed to many of his weekly column readers how to either break in or get more business. In fact, his most recent column is about this very topic yet, I didn’t but, 3 orders come in today for a FREE Agent Site, through the REOPro store, I only approved 2 blogs today and the forums seem dead today. Not to mention, I counted at least 4 articles in the Ask the AM archive on this particular topic or at the very least topics very similar and I have about 3 blogs myself I have written along with 1 blog that is nothing more than my top 8 blogs that any REO agent should read. So, with all that being said, why do we still get members who fall prey to the false and blatant lies running rampant through our industry like hungry lions on the plains of the Serengeti?

Granted, even industry juggernauts like REOTrans or RESNET seem to be participating in the “Realtor mop up” but, their lofty place as industry captains makes people like myself see these actions by them as shameless and disgusting yet, we still get agents who are clamoring, saving up thousands of dollars and purchasing higher and higher levels of “preferred status” for nothing more than the promise of a chance.

I read a recent forum thread titled “Valigent” posted by Janet Frederick on REOPro where one of our members Byron Guillermo copied and pasted a reply from an Executive with Valligent named Jeremy that said, Quote…

Lenders take advantage of the fact that many real estate agents in this economy are desperate for listings,”

HELLO! CLUE PHONE IS RINGING! It’s not just the lenders….it’s everyone in the industry. My point is, they can make the promise of a chance, with no guarantee and they will still make money hand over fist from the contract they have with the bank, to the “technology fee” you kick back and then your monthly membership fee and annual “preferred broker” fee. It’s a cash cow because of the very statement made by Jeremy with Valligent.

I am trying to explain to you, if you feel victimized, if you feel as if you have been taken to the cleaners, if you feel like no matter where you go, it’s more and more money……well, yeah, you’re right but, that’s because people are paying for it. Caveat Emptor my friends, or in other words, Let the Buyer Beware.

So, how do you avoid these people and scams, how do you break in……well, it’s as I have always said, it’s about developing relationships, providing a useful service and becoming an expert in your field. If you want to know more about my opinions on these things, read over my blogs, read the AM column this week and search through the archives.

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