Posted by Dawn Barrier on January 13, 2010 at 6:57am
Those of that know this company have all been waiting for this news and now it official!Titanium Launches New REO company Excellen REOFor another company to launch into the REO market indicates to me that the "shadow inventory" we have all been hearing about, is real and it is just a matter of time as to when it will hit the market and if it will be in drips or not. How and when this release of inventory comes to market is a heated topic I'm sure.I know here in Las Vegas we could use a some more under $300,000 homes to come on the market as I am working with several buyers now and the competition to win a bid can be difficult for some right now.Titanium Solutions- Titanium Holdings Enters the REO market with its Launch of Excellen REOIt is all over the news here is one place at the DSNEWS to read about itIt is on Housingwire.com too and/or just Google Excellen REO.Titanium Holdings, Inc., the parent company of loss mitigation specialist Titanium Solutions, Inc., is jumping into the property disposition arena with the official launch of a new business unit, Excellen REO.Excellen REO is headquartered in Fort Mills, South Carolina, along with its sister company Titanium Solutions and parent Titanium Holdings.Cary Sternberg is the president of Excellen REO a few of his former titles were, he was formerly with American Home Loan Servicing, VP of Loan services for Indy Mac and REO manager for Ocwen.
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Posted by Dawn Barrier on December 17, 2009 at 12:00pm
Ok, I have to give credit to Robin Rowland for tipping me off to this originally. I made a few calls and here is what I've found out.....Bank of America has contracted withREDCto process their Fannie Mae Short Sales using the REOtrans/Equator portal.They also will be working some of Wells Fargo short sales, Metlife short sales and GMAC short sales as well.The idea is to help speed the process up, but hey we all now how that is!There will be an additional 12 page welcome package to fill out and have sellers sign...UGH more paperwork! But hey if it moves a Bank of America Short Sale down to 60 days WHOA HOO!!I wouldn't count on that just yet, but maybe they can prove me wrong. This is a case where I would love to have them prove me wrong! LOL!Oh, and it is supposed to get even better for the seller .....Debt to be considered Paid or Settled with the Deficiency FORGIVEN!!I can't wait to see one of the Short Sale Approval letters to see if it is true.They are only doing Fannie Mae and they have to be assigned from the bank. They have a way to check your loan to see if they can request it go thru them.They are only processing Nevada Short Sales, Arizona Short Sales, California Short Sales and Florida Short Sales that are Fannie Mae.
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Purchasers at foreclosure need to address new legislation that went into effect May 20, 2009 called the Protecting Tenants at Foreclosure Act of 2009 (note: it is Title VII in this link). There is still the advance rent and security deposit issue as the ACT does not address how the tenant can protect itself from the loss of those monies.New new Act is very broad and effectively covers every residential mortgage in every state. It does NOT apply to tenancies that are not "bona fide" - and that definition is also very broad. For example, if you are in foreclosure and the tenant is your child, the Act will NOT apply.The key is when was the lease entered into - was it before or was it after the foreclosure was filed? If it was before the lease was signed, then it takes precedence over the mortgage foreclosure and the tenant cannot be evicted because fo the foreclosure - provided the tenant does not breach the lease. The ONLY exception is if the buyer is purchasing the property as its PRIMARY RESIDENCE, in which event the 90 days.If the lease was after the foreclosure, then the tenant can be evicted 90 days after notice to vacate is given by the NEW owner after the foreclosure sale. In essence, any lender must give any bona fide tenant 90 days to vacate the premises AFTER the lender or any other buyer at a foreclosure sale acquires title to the property. Of course some state tenant laws still apply, for example, if the prior Landlord (the foreclosed owner) had given a notice to vacate prior to the foreclosure sale occuring (because of a tenant breach) in which event that notice start date would remain applicable.The HUD explanation is simple regarding the notice to vacate:(1) The advance notice applies to tenants in any foreclosed dwelling or residential real property, regardless of the type of loan or other security interest on the property.(2) An advance notice of 90 days is the minimum period of notification. A longer period may be provided, for example, if greater protections are provided by state or local law.(3) Responsibility for providing the advance notice to tenants falls on the immediate successor in interest of the property, which will generally be the purchaser.(4) The notice must be given to anyone who, as of the date of the notice of foreclosure, is a bona fide tenant, whether or not there is a lease.A detailed analysis of the Act is found at: PROTECTING TENANTS AT FORECLOSURE: NOTICE OF RESPONSIBILITIES PLACED ON IMMEDIATE SUCCESSORS IN INTEREST PURSUANT TO FORECLOSURE OF RESIDENTIAL PROPERTY.Remember that during the remaining term of the lease or the 90 days notice period, the terms of the lease still apply - the tenant obligations to maintain the premises, pay rent, etc. must still be adhered to by the tenant or they can be sued and evicted by the new owner! This new law is NOT a free ticket for tenants!!!!It is important to recognize that the new law is only a starting point - STATE LAWS that provide greater protections are still in place and will override the new federal law. I would also note that if the lease term was finished before or during the 90 day period, the lease term is NOT extended by this law and normal state remedies for holdover tenancy would be in effect.MISSING SECURITY AND ADVANCE RENT PROTECTION FOR TENANTS -The ACT does not provide any monetary protections that I spoke about in my previous article and therefore the game plan in that article still applies. The problem is that most tenants gave to the original landlord last month's rent and a security deposit. The new owner has no responsibility to the tenant for those monies!!There can be other more imaginative ways to proceed - but remember that because the old landlord that lost the house isn't the owner anymore does not mean that you get a free 90 day pass to live in the house (althought that is how it is likely to pan out for new owners). The new owner can sue the tenant for unpaid rent for the 90 days. That leaves the tenant in a conumdrum of how to recover the deposit and advance rent and that is why participation in the foreclosure suit with a request to the court to deposit monies to the court registry is going to be the best legal route a tenant can take to demand and get fair treatment regarding its financial obligations. My suggestion is to get involved as a tenant in the foreclosure suit when served with the foreclosure summons and complaint. You may want to seek the advice of an attorney in your State when doing so.Copyright 2009 Richard P. Zaretsky, Esq.Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com. See our easy to find articles at TABLE OF CONTENTS - SHORT SALE AND LOAN MODIFICATION ARTICLES.
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There has always been a cost to become a preferred REO broker on a network--there should be.If it was free to train and become a preferred broker with an REO network, then every Tom, Dick and can't save a buck to save their life agent would be on there. REO is EXPENSIVE! In any given month, I write checks for $20,000+ for utilities, sewer, garbage, repairs, contractors, rehab, signage, marketing and staff. There were months last year, in the winter, when with snow removal and winter power bills I was spending $50,000. If you have a month with no closings and reimbursements are running 45 days, you need to be prepared as a business person for the costs of doing business. If coming up with $600.00 for training is a hardship, you are probably not the agent for the job.There are a lot of new players in the game--good, strong players--people who are branching out from REO as usual and trying to make a go of asset management in an organized way. Companies that are working to earn accounts from large REO wharehouses in the hopes that they can reduce the file to asset manager ratio and improve the quality of listings and reduce days on market in REO deserve a chance--unfortunately, the best asset managers are just that, asset managers, not corporate financiers. They are looking for a little start up capital.If you buy into a new company thinking that your investment entitles you to assets, you might be mistaken. If you buy into a new company knowing that you are making a capital investment in a group of asset managers that you believe in, make sure that they also believe in you and that you will do whatever it takes (in addition to paying a fee) to make their business succeed. That means staying on top of the assets, maintaining them, pricing them well and getting the transaction done with no drama.There is always the alternative--be such an amazing agent that the asset managers will seek you out and waive the fee. As in all other business ventures, your performance speaks for itself--you can put an ad in every website in the world but if your stats don't back up the ad, you're wasting your money.Get 'em the highest price, the best terms and the lowest liability. Works every time. That's just my two cents--and you don't have to buy it. :).
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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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I know it might have been posted before this blog, so Jesse if so i couldnt find it...lol, I see that some or lot of us have paid for those sites that end up taking our money.Could you please share with the network, the good and bad PAID SITES, AND RESULTS? , so we can stay away from the bad ones.Thank you.Cesar K.
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It has recently come to my attention that a friend of mine in another state is being sued by a Seller he represented in a Short Sale transaction because he didn’t disclose the fact that the homeowner was selling short in a recourse state and could potentially be sued herself for a deficiency judgment. Needless to say, the seller was issued a deficiency judgment by the court in the amount of $48,000.00.
The seller ended up filing bankruptcy to rid themselves of the judgment but, bankruptcy was something they were wanting to avoid all together, hence the short sale.
The seller’s argument is that the agent did not explain the process and potential risk therefore he was incompetent to practice such a highly specialized real estate transaction and should have never engaged the short sale.
The seller also argued that none of the documentation the agent submitted to the bank protected the seller from any future deficiency judgment and proper due diligence was never done.
The case isn’t resolved at this time however, I would like everyone to chime in and give their thoughts. As soon as I learn more about where this went, I will tell ya.
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From the newsletter I received from The California Assocation of Realtors."C.A.R. Achieves Compromise in AB 957,Choice of Escrow BillC.A.R. achieved a compromise in AB 957, “Choice of Escrow Bill.” In multiple discussions with the author, C.A.R. worked with Assemblywoman Galgiani to come up with compromise language that will require fair treatment for real estate owned (REO) buyers in the choice of title and escrow providers.The new language now protects fair negotiation over settlement services, and has removed C.A.R.'s opposition.The new language will codify in California law the federal RESPA rules for selection of title insurance, and extend the same rules to protect buyers in the selection of escrow services. In a nutshell, the sellers will have to negotiate the selection of title and escrow. Under the new language, if an REO seller wants to try and direct choice of escrow, the seller will have to pay for the privilege.AB 957 will also impose new penalties on REO sellers that violate the law, and will empower state regulators to go after both RESPA and "steering" violations."Great news for buyers, but possibly bad news for REO sellers and escrow companies.
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AIG, Larry Summers and the Politics of DeflectionFinally the US authorities have gotten ‘tough' with the predator financial institutions. The world has been waiting for such decisive intervention since an unending series of Government bailouts of financial institutions began early in 2008 amounting to now trillions of taxpayer dollars. Now, with the world's largest insurance giant, AIG, the White House Economic Council chairman, Larry Summers has expressed ‘outrage.' President Obama himself has entered the fray to promise ‘justice.' US Senators have threatened a law to change the injustice. The only problem is they are all exercising ‘politics of deflection,' taking attention away from the real problem, the fraudulent bailout.The issue is over AIG announcing it was obligated to pay its traders in its high-risk London unit a sales bonus totaling $165 million for the year. Obama Treasury Secretary, Tim Geithner has announced a novel strategy for ‘justice.' AIG will ‘reimburse' the taxpayers up to $165 million for bonuses the company is giving employees. AIG will pay the Treasury an amount equal to the bonuses, and the Treasury will deduct that amount from the $30 billion in government (taxpayer) assistance that will soon go to the company. But he said that the Obama administration hasn't given up on efforts to recoup the money from the employees who got the bonuses. Good luck.Larry Summers is the man directly responsible for the mess. As Clinton Treasury Secretary from 1999-January 2001 he shaped and pushed the financial deregulation that unleashed the present crisis. He was Treasury Secretary after July 1999 when his boss, Robert Rubin left to become Vice Chairman of Citigroup, where Rubin went on to advance the colossal agenda of deregulated finance directly.As Treasury Secretary in 1999, Summers played a decisive role in pushing through the repeal of the Glass Steagall Act of 1933 that was instituted to guard against just the kind of banking abuses taxpayers now are having to bail out. Not only Glass-Steagall repeal. In 2000 Summers backed the Commodity Futures Modernization Act that incredibly mandated that financial derivatives, including in energy, could be traded between financial institutions completely without government oversight, ‘Over-the-Counter' as in where the taxpayer is now being dragged. Credit default Swaps, at the center of the current storm, would not have been possible without Larry Summers and the Commodity Modernization Act of 2000. He is now the White House Economic Council chairman, mandated to find a solution to the crisis he helped make along with Tim Geithner, his friend who is Treasury chief. Foxes should never be asked to guard the henhouse.Theatre of the absurd or deflection?This all makes great food for tabloid headlines and popular outrage. They can write that elected politicians are finally acting in taxpayer interests. Until we look a bit more closely. Paying $165 million in employee bonuses or any amount for a company that is in the middle of a multi-trillion dollar fraud that is bringing the world economy down with it is ‘outrageous.'The problem is the tax bailout haemmorrhage will go on. The reason is the Obama Administration like its predecessor refuses to take consequent action with AIG, despite the fact today the US Government owns at least 80% of AIG stock, bought for $180 billion of, yes, taxpayer dollars. To demand AIG ‘pay back the government' is absurd as the government is in effect demanding it pay itself back with its own money. The latest claim that the Treasury will subtract the $165 million bonus money from the next $30 billion tranche it will give AIG says it all.Preserving the CDS bubbleThe political ‘outrage' expressed by the Obama Administration is an example of ‘perception management.' The population is being slylyduped into believing their officials are working in their interest. In reality the officials are channeling growing popular outrage over endless bank bailouts away from the real problem to an entirely tertiary one. The US Government has injected $180 billion since September 2008 to keep the ‘brain dead' AIG in business and honoring its Credit Default Swap obligations. In effect, they are propping up the casino to continue endless gambling with taxpayer dollars.The rise of a market in derivatives or ‘swaps' contracts supposedly to ‘insure' against a company going into default and not being able to honor its debts, the Credit Default Swaps market, is at the heart of the global financial catastrophe. The market was ‘invented' by a young economist at JP MorganChase, interestingly enough one of the few big banks recording profit today.As noted, CDS trading was created free from US Government regulation by President Clinton when he signed the Commodity Futures Modernization Act of 2000 that mandated that financial derivatives not be under government regulation scrutiny. Enron crony and UBS bank adviser, Texas good ‘ol boy Senator Phil Gramm helped pass the laws at a time his wife, Wendy headed the putative regulator, the Commodity Futures Trading Corporation (CFTC). That gave the green light to a derivatives market nominally worth more than $62 trillion in 2008. No one knows the exact size because this is a ‘phantom banking market' completely private and between banks, so-called OTC for Over-The-Counter, ‘just between us.'Michael Greenberger who headed the CFTC Division of Trading and Markets in the late 1990's at the time of the financial deregulation acts, says that banks and hedge funds"were betting the subprimes would pay off and they would not need the capital to support their bets." The unregulated Credit Default Swaps, he says, have been at "the heart of the subprime meltdown. In 1998 Greenberger proposed regulating the growing derivatives market. At the prospect, he says, "all hell broke loose. The lobbyists for major commercial banks and investment banks and hedge funds went wild. They all wanted to be trading without the government looking over their shoulder."The confidence between banks, the ‘just between us,' collapsed after the ill-conceived decision by the US Government on September 15 2008 not to save the world's fourth largest investment bank, Lehman Brothers. By then, there was no alternative but to nationalize and then sort out the mess. Bankruptcy, as the world now realizes, was not an option. But neither was the Henry Paulson TARP ‘casino rescue plan' and Geithner's continuation any option.At the point the Government let Lehman Bros go down only months after saving the far smaller Bear Stearns and also AIG, not even a bank, there was no clear idea who would be saved and who not. No bank could afford to trust any other bank not to be holding just as risky loans as they. The crisis became a global systemic crisis. Notably, the man who participated in the decision to let Lehman Bros fail ‘to teach a lesson' was then President of the New York Federal Reserve, US Treasury Secretary Tim Geithner.The US Government has stated that AIG cannot be allowed to fail, that, to use the jargon, AIG is ‘too big to fail.' The reason the Government says it can't let AIG fail is that if the company defaulted, hundreds of billions of dollars' worth of Credit-Default Swaps (CDS) would ‘blow up,' and US and European banks whose toxic assets are supposedly insured by AIG would suddenly be sitting on immense losses. Quite the contrary, AIG is ‘too big to save' under current rules of the game that have been written by Wall Street and the privately-owned Federal Reserve, Treasury Secretary Geithner's former employer.The CDS fraudCredit Default Swaps purported, in theory, to let banks remove loan risk from their balance sheet onto others such as AIG, an insurer. It was based on a colossal fraud using flawed mathematical risk models.AIG went big into the selling Credit Default Swaps with banks around the world, from its London ‘Financial Practices' unit. AIG in effect issued pseudo ‘insurance' for the hundreds of billions of dollars in new Asset Backed Securities (ABS) that Wall Street firms and banks like Citigroup, Goldman Sachs, Deutsche Bank, Barclays were issuing, including Sub-prime Mortgage Backed Securities.It was a huge Ponzi scheme built by AIG that depended on the fact the world's largest insurance company held a rare AAA credit rating from Moody's and S&P rating agencies. That meant AIG could borrow more cheaply than other companies with lower ratingsAIG issuing of CDS contracts acted as a form of insurance for the various exotic Asset Backed Securities (ABS) securities being issued by Wall Street and London banks. AIG was saying ‘if, by some remote chance' those mortgage-backed securities suffered losses, AIG would pay the loss, not the banks.Then it got really wild. Because credit-default swaps were not regulated, not even classed as a traditional insurance product, AIG didn't have to set aside loss reserves! And it didn't. So when housing prices started falling, and losses started piling up, it had no way to pay off.AIG then issued of hundreds of billions of dollars worth of CDS instruments to allow banks to make their balance sheets look safer than they really were. Banks were able to get their loan risk low not by owning safer assets. They simply bought AIG's credit-default swaps. The swaps meant that the risk of loss was transferred to AIG, making the bank portfolios look absolutely risk-free. That gave banks the legal illusion of BIS minimum capital requirements, so they could increase their leverage and buy yet more ‘risk-free' assets.How could that be allowed? The level of venal corruption in the Clinton and then Bush Administration rivals that of the last days of Rome before its fall from the internal rot of corruption. Banks invested billions in lobbying Washington politicians to get their way.What can be done?Fortunately there is a simple way out of the AIG debacle. The US Government can step in and fully nationalize AIG, 100%, kick out responsible management, declare AIG's CDS contracts null and void and let holders sue the US government to regain value for what were in reality lottery gambles not loans to the real economy. They own 80% so the step is small to 100%. Doing that would end the global market in CDS and open the door for countless legal challenges. But AIG's counterparties, as we begin to learn, were exactly the big Wall Street players like Goldman Sachs, Citigroup, even Deutsche Bank. They have gotten enough taxpayer bailouts to cover their risk in CDS. Let them recognize risk is the heart of banking, not the opposite.Myron Scholes, the ‘father' of financial derivatives, who won a Nobel Prize in economics in 1997 for inventing the stock options model that led to financial derivatives back in the 1970's, has declared that derivatives and Credit Default Swaps have gotten so dangerously out of hand that authorities must ‘blow up' the market.Scholes says derivatives traded over the counter should be shut down completely. Speaking at York University Stern School of Business recently, he said the "solution is really to blow up or burn" the over-the-counter market and start over. He included derivatives on stocks, interest rate swaps and credit default swaps that should be then moved into regulated markets.The idea is simple and not that radical. A US law banning OTC derivatives and moving them to regulated exchanges would end a colossal ‘shadow banking' fraud. Banks would not lose much more than already, but the world financial system would get back to ‘normal.' OTC derivatives are unregulated precisely to hide risk and enable fraud by the banks. It is past time to end that. There is where the US Treasury and other Governments must focus, not on meaningless ‘transparency' calls or trading bonus ‘justice.'By F. William EngdahlRead more…
Ok, not sure who mentioned ASREOS to me but, I was intrigued none the less and that prompted me to investigate them just a wee bit. Here is what I know.
Founder Frank Patrick also founded REO Res Q, REO Renegades and American Society of REO Specialist.
To join ASREOS it cost (per their website) ….(https://members.asreos.com/public/5.cfm)
Property Preservation Monthly ($99.97)
REO Broker/Agents Silver Monthly ($99.97)
REO Broker/Agents Gold Coaching Monthly ($239.97)
REO Broker/Agents Gold + Membership ($539.97)
REO Broker/Agents Platinum Monthly ($997.97)
By the way, i wasn't able to find any information on subscription levels and what they get you, go figure?
From 100.00 to 1000.00 dollars a month…..ARE THEY SERIOUS?
On their website, they answer the following question……
1. Do you assign REO listings?
No, but we help you get more REO listings of your own by providing access to our nationwide network of REO Sellers who are consistently acquiring new foreclosure properties - and Master Contractors who need to prepare those properties for market. Those contacts are invaluable when it comes to growing your ongoing REO business.ASREOS.com also provides crucial inside information as to how to make effective contact that counts with assets managers in charge of assigning REO listings. And, by becoming part of the ASREOS Online Directory of REO agents/brokers and property preservation contractors, your status will get a big boost in the REO industry overall.
Pay special attention to that first line….NO
Does anyone have any experience with these guys that they would like to elaborate on?
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Because so many people don’t blog, let me share reason with you as to why you should blog.
1. Exposure: Blogging gets you great exposure. In fact, a regular blog that provides great information will not only get you exposure but, sometimes it can get you notoriety. In other words, it allows readers to get a sense of who you are and how you work. Think of it as a one sided interview for your readers and therefore, use it to your advantage to toot your own horn and, show off your skills, knowledge and experience.
2. Collaboration: Blogging allows a writer to collaborate ideas with others who may have more insight on the topic than the writer. In short, it’s a great way to get answers or obtain knowledge. At the very least it allows for writers and readers to toss around ideas and workout solutions.
3. Become an Expert: Depending on just how you use your blog, it can be a great way to showcase your expertise in a particular area or field. Continued writing shows dedication to your craft or business and allows others to see you as an expert.
4. Relationship Building: It’s a great way to build relationships. People can come on, read your blog, ask questions and open the door to relationship building. It has been a great way for me to maintain my customer relationships and as well bring on new customers who have been refereed to my blog.
5. Media Relationships: One of the most intriguing reason to blog is the potential for Media Exposure and then the development of a relationship with a local media outlet. In fact, it isn’t uncommon to see some blogs on local media outlets or industry publications
So, all in all, bloggin can be a great way to start a business, maintain a business and propel a business to success so, if you’re not blogging, I have to ask why?
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I got a request to do an interior BPO for a house in my service area. D'oh, another listing that wasn't assigned to me. No worries, I really can't complain, I'm busy enough. So I call up the agent and say hey, I want to get in there, what's the combo box code?He says, "I don't know. You know, I don't really work in that area, it's a bit far for me, so I'm having a local agent I work with there put the lockbox on and he's working on getting it trashed out."Ahem. I know the local agent, I'm in an escrow with him now at the moment actually. He's not even with the listing agent's brokerage (the local guy has got his own brokerage).I don't know, that just doesn't seem right. What do you think? I think if you cannot service your own listing personally, which the client has entrusted you with, then you probably shouldn't accept the listing and allow another agent who (like me!) who does personally service his listings to get the job.
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