Posted by Linda Landry on January 3, 2010 at 5:50am
Yes it is true. I am one of the homeowners underwater. I recently disclosed that to a friend and her reply was 'I won't tell anyone'. Nice gesture on her part but totally not necessary. Within the last week I was approached by a financal adviser who volunteered to review my docs on the premise that his company has been able to negotiate through the Courts and prove that the current lien holder was unable to provide a deed to coincide with the loan thereby allowing the mortgagor to obtain the property free and clear from the current mortgagee. Although he qualified his statement by saying he could not give me legal advice he suggested, as a friend, that I stop making payments toward the mortgage as being in the foreclosure process would add a sense of urgency to the Court. The written contract requires a minimum $1500 non refundable fee and a promise to expunge negative credit bureau reports if/when the suit is won as well as other stipulations too detailed to enumerate. My point is this: Yes, I am underwater but I am not drowning. I cannot in good faith arbitrarily stop making my house payment. Not only does it go against my personal grain; I do think that a Court would see that I was intentionally attempting to pull one off on the lender. Despite the fact that the lender may deserve it since I have been negotiating, to no avail, with them for more than a year to modify my loan to a fixed rate at minimum. However, this seemingly rampant rush to jump overboard seems to be exacerbating the current dilemma in the housing market. Yes, I am underwater but still able to row the boat. If I loose my oars I will need to rethink. For the time being I will continue my trek to shore and my a diligent effort not to become a statistic for foreclosure.Linda Landry, REALTOR ® Exit Realty 1st Choice Tucson, AZ
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Posted by Robin Whitt on November 24, 2009 at 3:40pm
From the Blogs and Forums I read and the Agents I talk to, it seems most Realtors consider themselves either a Listing Agent or Buyer's Agent. Of course that isn't any different than it has been in decades of Real Estate Markets. BUT today's Agents seem to narrow their category down even further to a REO Buyer's Agent or a REO Listing Agent. That is the Market. There are hardly any Vanilla Sales out there to be had, so we are REO Agents.If you sit down with a group of "REO Buyer's Agents" you will hear a plethora of gripes about "REO Listing Agents"; they are selling everything 'in-house', they are purposely trying to drive up the offers, they make the requirements for submitting an offer 'too hard', they NEVER answer their phones....And the list goes on and on.On the other hand you have an entire set of complaints from the "REO Listing Agents" about the "REO Buyer's Agents"; these dumb Agents can't follow directions, how dare they call me on the phone as busy as I am....You know you've heard these things...you may have even said them! LOLPersonally, I guess I can see each side as my Partner and I have tried to stay diversified. I spend the majority of my time focusing on REO's, my Partner is a great Networker and works with Investors, we have a wonderful Buyer's Agent, a terriffic short sale negotiator and of course our Transaction Coordinator who none of us could live without.Maybe I'm just being sappy with the holiday this week, but we should all be thankful for eachother. If there were no Buyer's Agents, the Listing Agents wouldn't have multiple offers on all their properties. If there were no Listing Agents, I guess the Buyer's Agents would be looking for a new career.So as you give thanks on Thursday, remember to be thankful for that REO Buyer's Agent who just can't seem to get an escrow check made out in the right Title Company's name, be thankful for that REO Listing Agent who you aren't quite sure exists because no one has ever actually talked to him on the phone or seen him in person. Without them, we'd all be working some boring job.Happy Thanksgiving!
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Here’s a snapshot of the San Francisco East Bay Real Estate Market. I run these numbers monthly and have been tracking 38 cities since 2005. I primarily look at two indicators, Months Supply and Pending Over Active ratios.Pending Over Active Ratio relates to buyers and sellers. Basic Econ 101, Supply and demand. Actives (represents sellers), or properties that are still available, versus Pending (represents buyers), or properties leaving the market. That relationship often indicates whether we’re in a “sellers or buyers” market. A ratio of 1 (an equal number of Actives and Pending) is considered a normal market or in a state of equilibrium. Anything under (high inventory, few buyers), prices are flat or dropping. Anything above (low inventory, many buyers) is considered a seller’s market. The trend since earlier this year indicates that we are in a “sellers” market in most cities. However, one factor that may be skewing the numbers is that there are longer escrows due to REOs and increased government loans.Months Supply, Basically, months supply is the ratio of inventory to sales. What it tells us is how many months the stock of homes for sale would last, if sales continued at their current rate. Six months supply is considered normal or equilibrium. We are currently at a two month supply of houses for sale for the entire 38 cities that I track. Many cities are now below that level with a few even below 30 days. This is also an indicator that we are in a “sellers” market in most cities.DOM, (Days On Market), continue to decrease in most areas. Houses are going into escrow quicker. However, once in escrow, they are taking longer to close.Also, the relationship between what, on average, homes are selling for to list price support this. We’re seeing properties in many areas getting multiple offers and actually now, on average, selling at or above the average list price. The spreadsheet takes into account sales by city during the last 4 months.Areas that were hit hardest last year due to high inventories and downward pressure on prices due to the high number of distressed properties on the market, are now starting to see some recovery, especially in the lower priced areas. Examples would be in East Contra Costa along highway 4, (Pittsburg, Antioch, Brentwood, even Concord). More recently, in West Contra Costa in the San Pablo, Richmond, Pinole, Hercules areas).Finally, we are starting to see a slight increase in foreclosed properties coming onto the market. 17% of active listings are foreclosed properties (REOs), as compared to 14% last month.See attached spreadsheet HERE:Glen's Numbers 10.31.090001.pdfRead more…
Posted by Linda Landry on November 2, 2009 at 8:09am
Although it may seem overwhelming at first, the home buying process can be simplified in three easy steps. However, one two three is boring so let me explain with three F words. 1. Finance: the first step is to seek financial advice from a lender. First you must find a lender whom you trust and desire to work with throughout the complete transaction. Changing boats in the middle of the stream is possible but not suggested as it adds complications and stress. Find out how good your credit is and if it is not .....what you need to do to bring it up to par. Find out not only how much your lender is willing to finance for you and how much money you will need to bring to the (closing) table. Factor in the interest rate and points you are being offered. Learn what your payment will be; know that the lender is likely quoting PI (principle and interest). Calculate an additional $150-200 per month for TI (taxes and Insurance). Arming yourself with the knowledge of the strength of your buying power allows you to continue the endeavor with confidence. 2. Find the home of your dreams/desire. Find the home most suitable to your needs and taste. Elicit the assistance of a REALTOR ® to enable you to expand your search, access your choices, compare recent values of similar properties and to walk you through the transaction. Commit yourself to a Buyer/Broker agreement if you want the agent to work in your behalf and act as your advocate. 3. Finally when you are certain you've found what you want....exactly what you've been seeking or even beyond what you thought, it is time to make an offer. You and your REALTOR ® will work up the offer with what you plan to bring to the table and what you are asking of the seller. In Arizona this is done on a purchase contract which becomes legally binding if the seller signs accepting your proposal. However, be prepared for the seller to counter your offer and the reality of a possible negotiation process. When both parties agree, it becomes time for the buyer to begin the process of becoming a homeowner with inspections and plans for the pending closing of the transaction and moving. This is the time to start packing! In Arizona ownership occurs at recordation which is within three days after the signing. This will be the time to take possession. Keep in close contact with your REALTOR ® throughout the process as the agent will guide you through the time lines.
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By now thanks to recent articles in The Wall Street Journal, New York Times, Bloomberg, CNBC and other media, so called Shadow Inventory has come to the mainstream, but it is more elusive than Sasquatch. Real Estate Agents have been blogging about this for months. For those who may have missed it, Shadow Inventory is the defaulted loans that the lenders are allegedly not releasing for sale. According to Rick Sharga, VP of RealtyTrac “We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market” Lawrence Yun, NAR chief economist called it a business decision by the banks “ I believe many banks including Fannie and Freddie, who are holding onto some properties, are releasing foreclosed properties in a measured way so as not to flood the market which they perceive then perhaps could lead them to even more drastic price cuts .So they are releasing properties on a measured pace as a business decision to minimize losses”How big is this Shadow Inventory? Well that depends on what you’re counting, and who is doing the calculations. Some statistics include foreclosures that have been completed, plus NOD (Notice of Defaults), NTS (Notice of Trustee Sales), Strategic Defaults (borrowers that are capable, but not willing to continue to pay on negative equity properties), possible Builder Bankruptcy’s, Vacant lots, Zombie Subdivisions, Commercial Loans, Debt-Securitization Markets, Side-line Sellers, and future Option Arms set to re-set in 2010.The problem here is that no two experts are counting the same. Just as followers of Sasquatch, Bigfoot and Yeti fantastic creatures can’t agree on the details, neither can the forecasters of Shadow Inventory. A recent report from Amherst Securities Laurie Goodman, which took into consideration reports from Mortgage Banker’s Association, Trulia, Core Logic and RealtyTrac led to the report that 7 million properties are in this inventory, and this was not including half of the items listed above. https://www.youtube.com/watch?v=stVgR0SeiQoShe further concludes that 7 million understates the problem because it does not include borrowers that are currently 30- 90 days late in paying, only those which already have received NOD. According to Ms. Goodman’s research, a borrower that misses 1 payment only has a 25% chance to recover, after 2 missed payments 5%, and after 3, only a 1% chance to recover.That is only 2 experts, and quite the disparity between 600,000 and an understated 7 million. Atlanta Federal Reserve real estate expert Analyst K.C. Conway, who is part of the central bank’s Rapid Response program to spread information about emerging problems to bank examiners focused on commercial real estate at a Sept 29, 2009 presentation “Banks will be slow to recognize the severity of the loss-just as they were in residential”In my opinion let’s take the monster out from under the bed, and really look at it. Lenders may have inventory of foreclosed homes that have not been released yet. It may be that the process is taking longer, and the REO departments cannot handle the volume, some may have title issues, some might be in a short sale process, or some may be occupied by tenants that just were granted a whole slew of rights through Protecting Tenants at Foreclosure Act in May 2009. Mistrust of Wall Street and Banks is leading some to a conspiracy theory. As someone who has been a Real Estate Broker for 18 years, and has lived through the Savings and Loan Meltdown, sold properties for the RTC and FDIC, I do not believe they are taking into consideration any of the positives in future-casting. Current foreclosed single family residential property inventory is down. Days on the market from list date to under contract is down. Multiple offers on foreclosed homes becoming the norm. What about sideline buyers pent up demand for these properties? Investment firms and private investors itching to buy bulk portfolios? Housing Affordability Index is at a 20 year high, which brings even more buyers into the market. It will take further stimulus, credit market liquidity, lower unemployment rates, and restored consumer confidence to beat the monster, but it can be done.
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Posted by Linda Landry on October 9, 2009 at 3:15pm
No doubt this has happened to you more than once but it is my first experience.I have been networking with several lenders doing funding expo's and first timehome buyer workshops. I was pleasantly surprised this week when I was givena lead from one of them. Her LSR was complete and she was searching for arealtor being dissatisfied with her prior agent. She'd been shown the only propertyshe wanted and needed to see it again and most likely make an offer.Her prior agent said it was not worth either her or the agent's time to write an offeras it would be a back up offer and it was a short sale 'possibility' (ie: not yet lenderapproved). Naturally I was willling to assist her and I asked her if she'd signed aBuyer/Broker agreement and she said she had not. I wanted to ensure she hadn'tas if the transaction did go through there was no reason to ask for trouble. At anyrate we saw the property and we did write an offer for her. She also signed aBuyer/Broker agreement to work with me exclusively through the end March 2010.Why is this important? She is obviously a motivated buyer and there is a greatpossibility she will not obtain the property she has her eye on. However, if shedoesn't I am the agent ready, willling, able and signed on to work with her. BTW,she is renting and her lease expires the end of November and she can only gomonth to month for 90 days. Sweet!
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Posted by Denise Stovall on September 26, 2009 at 4:14am
Is it a rumor or a fact? Short Sale transaction conditions have supported that lenders are stepping up to the plate and offering both their Delinquent Borrower/Homeowner and Realtors "Deals" to remendy a default/delinquent loan by a quick Short Sale transaction. Full borrower cooperation supported by experienced Real Estate service is the key to success. Incentives usually add up to dollars and cents for everyone involved; lender-borrower-realtor.Denise StovallNorthern CaliforniaSonoma County
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Posted by Shawn Bradford on September 14, 2009 at 11:10am
The Hottest Place to be at the 5 Star Conference.....Club TsunamiIf you're going to the 5 Star Conference in Texas you don't want to miss the place to be.....Club Tsunami. The 5 Star, http://www.fivestarconference.com is the largest conference in the default servicing industry and a place for REO agents to network, increase their knowledge of the industry through educational sessions and build new client relationships.So, what is Club Tsunami? http://www.clubtsunami.net/ Club Tsunami is the world's largest networking party and charity event. Club Tsunami is Monday, September 21, 2009 at City Streets Night Club.Everyone is talking about Club Tsunami and all it has to offer: 3 D.J.'s, Casino, 2 Night Club Dance Floors, VIP room, Cigar and Scotch Lounge, and a Top Shelf Bar.Don't miss this chance to make new contacts, have fun, build relationships with clients, and best of all benefit a great charity: Foreclosure Angel Foundation. https://www.foreclosureangelfoundation.com/Make sure you're at the hottest event at the 5 Star. See you there!http://www.shawnbradfordteam.comRead more…
Posted by Linda Landry on September 13, 2009 at 7:28am
I am astounded at the destruction and mutilation discovered in properties abandoned after foreclosure! Where did the current mentality of homeowners/renters come from in thinking it is their prerogative/privilege to destroy/steal or damage property they vacate? Everyone is aware that renters are 'leasing' property from the owner and that owners require security/cleaning deposits. However, I have spoken to landlords who've had their property damaged or destroyed beyond the limit of the deposit to include arson! Additionally, homeowners who become thieves of destruction to the property they have lost to foreclosure abound. They apparently do not realize they are actually tenants of the bank who holds their loan. They do not yet own this property until the loan is paid in full. Their down payment was just that: a payment they put down towards the repayment of the ENTIRE loan in the amount to which they agreed to pay to purchase the property. Lest we forget, this agreement was in the form of a legally binding contract. Perhaps more defaultees should be prosecuted for default or destruction. If people keep defrauding and defacing it may result in the banks requiring we pay for a loan for thirty years PRIOR to taking possession! Wouldn't that be a kick in the you know what!Linda Landry, REALTOR ® Exit Realty 1st Choice Tucson, Arizona
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In today's active Real Estate environment with so much information delivered and shared we somehow get through the day only skimming over the relevant facts. To prevent inaccuacies and manage Real Estate Risk Slow Down and Read. Start with your Agreements, Contracts, Assignments, Disclosures and Real Estate Transaction Documents and don't stop there because it is our responsiblity Real Estate Professionals to stay current and provide accurate information as it pertains to the sale of real property with minimum risk to our clients and employers.
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Posted by Erik Keith on September 8, 2009 at 7:43am
Integrated Asset Services®, LLC (IAS®) (www.iasreo.com), a leader in default management and residential collateral valuations, today released the latest IAS360™ House Price Index (HPI). Based on the timeliest and most granular data available in the industry, the index for national house prices was down 0.5% in July.The slight decline marked the first down month for the IAS360 since February. The leading U.S. housing benchmark remains ahead fractionally for the year but still well off (-16.2%) its high in June 2007.“We are seeing normal seasonality with a slight July pullback, but we are not out of the weeds yet as we will see waves of volatility while the markets correct themselves and settle down,” said Dave McCarthy, President and CEO of Integrated Asset Services. “Meanwhile, there’s an awful lot going on down at the neighborhood level that will take time to normalize at the top.”Conspicuous among the nation’s 10 major metropolitan statistical areas (MSAs) were the 3.8% declines in both Denver, which had been reliably stable since the first of the year, and San Francisco, which had jumped almost 8.0% from February. Notable, too, was a sizable 4.8% drop for the month in Las Vegas. While the region has fallen month over month since August of 2006, July’s plunge represents the largest percentage drop to date.“A lot of this volatility has to reflect Washington's near-term influence on price behavior through actions like the foreclosure moratorium,” says McCarthy. “We’re already seeing buying activity moving around in different price segments. The beauty of the IAS360 is that the index captures and reports on these changes in a way that reveals the reality of the market.”The IAS360 House Price Index is a comprehensive housing index tracking monthly change in the median sales price of detached single-family residences across the U.S. The index, based on all arms-length transactions, tracks data for 15,000 neighborhoods, that roll up to report on the changes in 360 counties, nine census divisions, four regions, and the nation overall. The IAS360 House Price Index is delivered on a monthly basis.
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First off, let’s make sure we all agree on what a Communist is, in reference to the topic of Default Residential Real Estate only.
Communism is egalitarian or has a political doctrine based on the idea that all people are equal and have all the same rights or in other words, believes that all economic inequalities should be removed from society.
Now, understand that I do a lot of default counseling. I see 3-5 people a week, on average that are in some sort of default with their home. Here lately, it seems that more often than not, I am visiting homes where owners are 5, 6, 7, 8 or more months in default but, the foreclosure auction hasn’t even been scheduled.
This seems a bit odd to me because I can’t remember a period in history when homeowners in default were given so much time before the bank foreclosed. My realization that it seemed banks were holding on to more and more of this default inventory unsettled me because I didn’t understand why. Why would a bank continue to loose money on a non performing asset? This was crazy to me…..foreclose, force evict if necessary, sell the asset, recoup what you can, write off the balance and allow capitalism to work however, this isn’t happening.
Here lately, I have been hearing a lot of buzz about America’s shadow inventory of REOs and I have to admit, it seems very possible that his “shadow inventory” is much more than a conspiracy theory but possibly a concept designed to purposely create a economic disaster of unprecedented proportions that would allow the government to take over wall street in the name of “Saving the Country” from financial ruin.
Carlos Silva, here on REOPro wrote a great blog titled, “Why you won’t see a Tusnamie of REOs” and here is the link, http://reopro.ning.com/forum/topics/heres-why-you-wont-see-a. I challenge you to read his blog and then ask, why?
Was the passing of the Community Revitalization Act along with the formation of Fannie Mae and Freddie Mac as well as the key de-regulation of lending guidelines all framework to set up a disaster in this country that would usher in a Communist / Socialist revolution that would change the fabric of this country?
I really don’t have answers to these questions but, I do know this. TARP…not working, it’s keeping people in homes, yes..but, these people can’t afford these homes anyways so, why are we (tax payers) shelling out billions just to see these people go back into default 3-5 months later? Is this a Communist agenda to force egalitarianism on us, the American People?
Stand up, question boldly and hang on to the truth.
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Posted by Linda Landry on August 22, 2009 at 1:14pm
There are many reasons why I like and respect Lookie Lou's. If you've ever sat at an open house for two hours or more without traffic you will understand my first reason. With all the preparation given to arrange and set up an open house it is disheartening if no one stops in. I for one do not want to eat all my own cookies! Nor do I want my sellers to think nary a soul was interested in their charming, darling, cozy home.Au Contraire! I am there for a reason and that reason is YOU! Neighbors, curious George's, inquiring minds come one come all. I want to tell you about this home and show you it's features. Yes! That is my primary reason for having an open house. I also want to meet new people. I cannot be successful in real estate by talking to only a handful of people I know. I want to broaden my horizons and reach out to whomever is interested in discussing my passion for real estate. Consider me to be an artist in an art gallery. I will gladly discuss my work as well as engage in any discussion regarding art as it is my passion!Additionally, Lookie Lou's ask questions. Therefore we can engage in a conversation which typically evolves around, you guessed it, my passion and reason for being there.....real estate. This is a golden opportunity to 'feel the pulse' of someone who is interested but wary of the current market status. It is also an opportunity to dispel myths or mythical thinking. More importantly, it is a time to make a connection with someone new by discussing their concerns and providing access to information that may make them less concerned. It is also a time to delve into whom they may know who needs to sell or purchase a home. It is a time for me to introduce myself and my service to someone in the community who may not otherwise have met me nor I them. Think of it as a way of branding as my name needs to be in your thoughts when you or someone you know needs the services I provide.Yes, I am there holding this home open as it is on the market for sale. Certainly, it is my goal to sell it for my client. I will work hard to market it this way and any other way to fulfill their need and my responsibility to them. Additionally, I also want to meet you, whomever you are. Simply put......we need to connect. You may need some information I have and you may ask me for information I don't have but need to research. You may need my services someday or you may provide a service I need. You may know someone who needs my services or you just may know someone who wants the home I am holding open. Welcome to my open house Lookie Lou! Have a cookie and punch and let's chit chat while I show you this beautiful home for sale. We may not live next door to one another but we can certainly act like neighbors!Linda Landry, REALTOR ® Exit Realty 1st Choice Tucson, Arizona
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Posted by Linda Landry on August 16, 2009 at 4:41am
I truly like this phrase! It speaks for itself doesn't it? I think so and it is so very pertinent when it comes to the current first time home buyers tax credit which expires at the end of November. In order to take advantage of this credit the transaction has to close/record before December 1, 2009. Since escrow dealings can take 30-45 days that means the transaction needs to be negotiated/accepted within the next sixty days. Not only is finding the right property time consuming but keep in mind you need to find the right real estate professional to assist you, the right lender and property inspectors. You will need to research details of the property; the inspections should include at the very least a termite and property inspector. If you or anyone you know is planning to take advantage of this opportunity the time to act is now!
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Posted by Linda Landry on August 6, 2009 at 4:51pm
Due to the current real estate climate many homeowners owe more on their homes than the current market value; or are 'underwater'. What is the benefit of continuing to pay on a loan that is considered a 'bad debt'? Some would say none as it does not appear to make economic sense. However, thereis more to it than just the current mathmetics of the subject. Regarding homeownership there is more of an attachment to the product than just the financial investment. Residential property is also home and the place of memories from family gatherings. Additionally the real estate market has it's ebbs and flows and the tide will eventually turn. Since equity is not a liquid asset money is not lost when it disapates UNLESSthe property is sold. Therefore if an owner is not in a position to require selling it is a good time to sit tight. It is a good time to utilize toward preventative maintenance and a good time to avoid throwing the baby out with the bathwater. Additionally, by continuing your personal responsible behavior, you are doing your part to stablize the real estate market.Linda Landry REALTOR ® Exit Realty 1st Choice Tucson, Arizona
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Posted by Linda Landry on August 2, 2009 at 8:19am
What is the difference between underwater and upside down? Both are negative equity right? Technically, I guess the answer is yes and no. Underwater is the current term for homeowners (better known as a mortgagor) who owe more for the loan than the value of the property. Upside Down is the term commonly used when a vehicle has less value than the loan intact.Being upside down in a vehicle loan has been common place for years and no one seems to scream 'help I'm upside down and I can't get out'. Of late many mortgagor's have become underwater in their loans as property values plummet and they cry out 'no help then I'll abandon ship!' Countless have abandoned their property and shirked their commitment/responsibility. Certainly, there are those who had no choice due to unforeseen circumstances such as job loss/transfer or medical bills/death in the family. However, countless just bailed.We are accoustomed to a vehicle depreciating in value the moment we drive it off the lot. Seems like a fact of life we've accepted. Especially regarding new vehicles. It is the price we are apparently willing to pay for the new car smell and the warranty of a mechanically trouble free few years. We suck it up and we pay up. Typically real estate property appreciates. This is a factor least considered when choosing property as there are more emotional factors to consider. Similar to marriage we dream of rearing children, raising pets, entertaining guests and family and watching grandchildren romp in the yard. In other words the plan is to stay, seemingly, forever. The norm has been for property values to increase and for folks to rest assured that when the time came in three, five, or even twenty years their investment would be recouped....and then some.What a shock to realize in this current market that is not the case. Even for those who remain and maintain their property. There property is 'devalued' due to the appraisals of comparables often abandoned and in disrepair. Their equity dissipated into thin air and often went into the negative. The philosophical difference was lack of preparedness due to the concept of the investment. More mortgagors than not expected their investment to appreciate. Typical vehicle purchasers are conditioned to know their investment will depreciate. With a vehicle there is the belief that there is NO equity; an accepted fact.Perhaps we should consider our residential purchases with more of a matter of fact approach. Perhaps looking at a residential property for the purpose it serves and for how it's financial responsibility fits in our budget are better ways to evaluate the expenditure. Additionally, consideration for re-sale value needs to be foremost in our minds when choosing a property or financing. There is always the possibility to necessitate leaving earlier than expected. We can learn from the current economic crisis and do what is possible to allow a palatable exit.Negative equity exists; even in property. We've all had the privilege to see it first hand. Let us learn from all the mistakes and minimize the pain for our future.
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Do you have a plan that will help you manage your properties? How organized are your files and if the bank calls you regarding an invoice submitted three months ago or inquires about the details of a property, are you prepared? I help several agents remotely organize their files and provide different resolution based on their setup.Here are a few tips that will help keep you organized. It may not pertain to everyone and depends on the current process being used.• Get rid of the post-it notes. They are not meant to be used as long term solutions to tracking notes.• Create a spreadsheet or pay an expert database designer to create a MS Access database that runs on queries. If you would like to create a secure online program, you will need to hire an expert programmer.• If you are not ready to go paperless, I suggest using 3-ring binders and index tabs to keep your files sorted by banks and property address, and/or• Use the correct folders so proper recording is maintain. Go to http://www.filesource.com/ for an assortment of real estate related folders, or use the classification folder with dividers, click here, and/or• Use an online transaction management program for online storage and upload all pertinent documents to the BPO or bank system immediately and check off as completed.• Upload your action plans online or use Outlook to track due dates and send out reminders.• Only use one email address to communicate with the BPO Companies or banks. Multiple emails accounts increase the chance of mail being sent to the junk box or deleted. Include your full contact information in the signature line and account name section.• If you find that you are always responding too late or missing the BPO orders, setup alerts through your Blackberry or a compatible email account such as Yahoo or Hotmail so you can receive your notifications via text message. You can also hire an assistant that will work as a backup to catch those that you have missed and begin the process of ordering photos, pulling comps, etc• If you decide to go paperless, invest in a PDF converter that will allow you to extract documents, delete documents, sort pages, insert files, etc. As the transaction progress, you can add the new pages and/or delete the amended pages and more.• Once the property has closed, remove all old and completed transactions. Archive each to CD or DVD. Make multiple copies if needed.• Use the task reminder of you contact management program. Once you input a task based on a property, you will receive the alerts. This will increase your responsiveness to the bank and buyer agent.•Use Microsoft Street & Trips to calculate proximity if you are looking for a reliable program.• Keep an updated copy of all bank guideline at the front of the binder and/or store online within your OTM program.• Store each property file separately on your computer and label each property using the property address. Example: 1234 Mockingbird Lane, Anywhere US 01234. Then create subfolders. One for the listing documents and the other for the closing documents.• Add the full contact information for each bank, asset manager, accounts payable, etc to your Outlook contact file for the bank using categories. Print out the contact sheet and include it in your binder, folder, or online within the OTM program. This will provide quicker access to contacts when on the road and less searching on the PDA.• Offer a fillable PDF of the Offer to Purchase and all bank documents on your website. By doing so, this will give the buyer agent the opportunity to present a clearly written offer with all required fields completed. You can also include a check list as a part of the download. If the agent doesn't provide all of the check list items, they don't have a serious buyer.• Learn how to improve your process. If one method does not work, move on to something better, not worse.• Know what you have in inventory at all times. A simple spreadsheet can be used to track your inventory and the status.How do you keep your files organized?Carolyn Dobbs, Carolyn@REOBookkeeper.com | www.reobookkeeper.com | www.onlinerepa.com | www.point2close.comRead more…
Fifteen new foreclosed or short sale homes came on the market, about one in every six homes being listed in the Prescott Arizona Area MLS system, and one quarter of the closings were distressed sales in Prescott, Prescott Valley, Chino Valley, Dewey-Humboldt and the outlying areas of Yavapai County. This shows a marked decrease from last week’s numbers.The difference between what newly listed traditional homes and Prescott foreclosed/REO and short sale properties per square foot remains large at a 40% discount.News has been mixed last week with positive housing numbers coming out of California and the Phoenix area, but news of more foreclosures on the horizon as load modifications fail and banks are removing moratoriums on foreclosures. Watch this space for more info!The percentage of foreclosed/REO/short sale new listings on market increased from 17% to 18% this week. Last week 48% of the pending sales were REO or short sales, and this week they made up 33% of the deals going into escrow. The percentage of REO/short sales that closed last week went from 56% last week to 26% this week. REO/short sales sold about 92% faster than traditional resales.See the full report on our main web site.You can get this report sent to you via email. Sign up here.Read more…
TALLAHASSEE, Fla. /Florida Newswire/ -– Governor Charlie Crist today met with Florida REALTORS® to discuss Florida’s housing market. Governor Crist encouraged first-time home buyers to take advantage of the tax credit made available through the federal American Recovery and Reinvestment Act of 2009. The $8,000 tax credit applies to primary residences as long as they are purchased before December 1, 2009.“Even though today is Tax Day, first-time Florida home buyers can still claim the tax savings on their 2008 tax return – even if the closing is after today – by requesting an extension or filing an amended return,” Governor Crist said. “Or they can also claim it on 2009 tax return, which will be filed next year. Either way, I encourage Floridians and newcomers to Florida to take advantage of this tax break and bargain prices on Florida real estate.”Governor Crist also discussed his continued commitment to reduce the tax burden on Florida homeowners and business property owners. He has proposes a set of property-tax reforms that builds upon previous legislation resulting in the largest property tax cut in state history.The National Association of REALTORS estimates that the impact of the federal economic stimulus package and lower interest rates will result in approximately 900,000 additional home sales in 2009 compared to conditions before the stimulus package. According to Freddie Mac, interest rates for a 30-year fixed-rate mortgage averaged 4.87 percent for the week of April 9, 2009, down significantly from the average rate of 5.97 percent in March 2008.According to the Florida Association of REALTORS, Florida’s existing home sales rose in February, making it the sixth consecutive month with an increase in sales activity. Existing home sales rose 20 percent in February 2009 compared to the number of homes sold in February 2008. Statewide, existing condo sales increased 25 percent over the total units sold in January.About the First-Time Florida Home Buyer Tax CreditFor homes purchased before December 1, 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer’s main residence within a three-year period following the purchase. First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, which are due today, or on a 2009 tax return, due April 15, 2010. If the purchase occurs after April 15, 2009, home buyers can still receive the credit on a 2008 tax return by requesting an extension of time to file or by filing an amended return.Information about the tax credit for first-time home buyers can be found at www.FlaRecovery.com in the “Tax Relief” section. For more information about Florida’s use of the federal recovery dollars made available through the federal American Recovery and Reinvestment Act of 2009, please visit www.FlaRecovery.comJason Donn - Real Estate Open NetworkersRead more…
CMBS Outlook Finds Conditions Are Bad and Getting Worse for Office, Retail and Hotel SectorsDeteriorating CMBS Loan Performance Indicates Worst May Not Be OverArticleBy Mark HeschmeyerApril 8, 2009Judging from the latest analysis coming out on the commercial mortgage-backed securities (CMBS) market, the worst may be yet to come for commercial real estate.Recent reports issued by Deutsche Bank, DBRS and Fitch Ratings find that commercial real estate fundamentals have dramatically weakened across most major property segments and markets, with some starting to reach the depressed levels of the last major recession in the early 1990s.And as conditions worsen, borrowers and workout specialist may have fewer and fewer options, the reports warn, which could further depress the industry.Richard Parkus, head of CMBS Research at Deutsche Bank, projected in his firm's commercial real estate outlook last month that property prices are expected to decline 35% to 45% (or more) overall during this recession. That would exceed the sale price declines seen in the early 1990s. Parkus added that declines in rental and vacancy rates may also approach levels of the early 1990s.CMBS collateral performance are currently deteriorating at a historically fast pace and Parkus predicted the total delinquency rate could likely to exceed 3.5% by year-end. That is one of the highest estimates that have been projected by CMBS analysts. Worse still, Parkus added, it could go as high as 6% by 2010. The peak delinquency rates in early 1990s were 6% to 7%.CRE at a PrecipiceBy far the greatest risk facing CMBS loans right now is maturity default/extension risk, not term default risk, Parkus of Deutsch Bank said.A large percentage of CMBS loans made in 2005-2008 may not qualify for refinancing without substantial equity injections due to much tighter underwriting standards, massive price declines and declining cash flow.Multifamily loan performance has been deteriorating at a dramatic pace, Parkus said, with Midwestern "rust-belt" states plus Florida, Georgia and Texas among the worst performing markets. Interestingly, California and Arizona, ground zero for residential mortgage problems, continue to experience very low multifamily delinquencies.Parkus also noted that the deterioration of office properties values are beginning to accelerate due to job cuts. "We expect office to be one of the hardest hit property segments," Parkus said.Parkus noted what happened with 1540 Broadway in New York. Macklowe Properties purchased the office building in Time Square two years ago from Equity Office Properties for $1,080 per square foot.Last month, CBRE Richard Ellis Investors purchased the building for $403 per square foot -- an almost 63% price decline in two years.Retail CMBS Loss Severities To ClimbMeanwhile, Fitch Ratings put out a particularly bleak outlook for retail loan performance, projecting that loss severities on retail loans are likely to trend upward for the next several years as defaults on retail loans increase.Exacerbated by declining consumer spending and the shrinking U.S. economy, retail vacancies will likely increase to new highs as bankruptcies, store closings and retail consolidation continues, the bond rating agency said.Consumer spending has declined 4.3% as of year-end 2008. That contrasts with the Internet-bubble reduced recession of 2002 and 2003 when consumer spending remained positive.Retail delinquencies account for $1.7 billion of the $6.2 billion total delinquencies in the Fitch Loan Delinquency Index. The Loan Delinquency Index across all property types is 1.28%; with 1.17% of all retail loans within the index currently delinquent. Fitch expects defaults in the retail sector to contribute a greater percentage of the index into 2010.Specifically, Fitch said it expects losses on retail loans may increase as much as 34% to 60% from the 5-year cumulative average of 44% for current defaults."Increased vacancies in the retail sector will lead to longer resolution times as it will take longer to re-tenant space which will ultimately result in higher losses," said Mary MacNeill, managing director of Fitch Ratings.Hotel CMBS Loan Performance Deteriorating RapidlyIn a report issued on hotel loans held in commercial mortgage-backed securities by DBRS, the bond rating agency noted that, in a declining economy, commercial real estate investors are seeking long-term leases, low tenant rollover, low expense ratios and the ability to pass along increasing operating expense to tenants. Unfortunately, hotel properties offer none of these features."News coming out of the hotel market is, quite simply, not good. Well, bad actually. No, make that terrifying," the bond rating agency said. "Predicting hotel performance over the next 12 to 18 months is like juggling chainsaws while riding a unicycle."Most informed market participants seem to be gathering consensus around a high single-digit percentage decrease for revenue per available room (RevPAR). Given the apparent inability for most individuals to grasp just how bad the economy is and how bad it will get, it would not be surprising to see decline in RevPAR by well more than 10% in 2009, DBRS said.Options NarrowingAs CMBS loan delinquencies climb, Parkus of Deutsch Bank said, the options available for borrowers will likely start to narrow.As CMBS special servicers are appraised out of their controlling class positions over the next two years, they may have less incentive to extend maturing loan, Parkus said. In addition, senior bondholders are becoming much more activist against extensions."We expect this conflict to intensify significantly over time, bringing the threat of legal action against special servicers that practice widespread extensions," Parkus said.Fitch Ratings also said special servicers may need to explore several different options to maximize recoveries. For example, with single-tenant retail, spaces can be marketed to non-traditional entertainment tenants. Conversely, they can also be subdivided in order to attract smaller tenants. Large vacant mall locations, such as those left vacant by Steve & Barry's or Macys, typically find more interest by subdividing the space or even selling the space back to the mall operator for redevelopment.Barring such options, special servicers could be more likely to foreclose on properties as borrowers become unable to fund operating shortfalls due to the loss of tenants, Fitch Ratings said.
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