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Over the past 2 years, I can't tell you how many times I read an article indicating the 'wave of foreclosures is coming in NJ'...and then nothing. In August 2011, 8 months after the foreclosure freeze, the big news was that the judge appointed to review the 'Big Six' banks foreclosure processes cleared them all to resume foreclosures in NJ...and then nothing. Then there was a lawsuit by a family in East Orange that contested their foreclosure because the bank wasn't named on the foreclosure filing, only the servicer of the loan. The judge in that case ruled in November 2011 that all foreclosures going forward had to name the lender in the filing, not just the servicer. It seemed the banks were waiting on the outcome of this case so they knew what needed to be stated on their filings to avoid similar lawsuits. Another case closed, and still nothing. Through 2012, the NJ foreclosure pipeline continued to drip, drip, drip foreclosures into to the market.

In the meantime, borrowers behind on the mortgages (not paying) are living for free for months, even years. Homes where the borrowers have long vacated anticipating the inevitable continue to deteriorate, leaving what resident's call 'eyesores' for months, and again, even years.

The most recent news pertains to the latter. Last week, the Governer signed an act which permits lenders to expedite foreclosure proceedings on vacant and abandoned homes in NJ. The idea is neighborhood stabilization - quickly foreclose on known abandoned homes which are often neglected and in disrepair, and get them on the market, and thus back to an occupied property. The bill is a good one for us REO brokers and agents. It's more inventory, and less dealing with borrowers in denial and tenants and going through the eviction or cash for keys process, which is often time consuming and can drag on for months before the property finally hits the market.

At this point, we'll take what we can get, but a slew of vacant foreclosures in our inventory will please many NJ investors that are ready to buy. With so few foreclosures on the market currently, investors have been calling me daily asking 'anything new'?

No one knows when the gates will open. Or what the banks are waiting for. Google sends me an email everytime there is a new media article regarding REO's in NJ. Chatter has increased on the web and in the papers, but it's all just numbers...days it takes to foreclose in NJ, 60,000 foreclosures in the shadow inventory, 7.7% of all homes with mortgages in NJ are in foreclosure, etc. Just reporters reporting numbers.

OK, so not much of an outlook I suppose. I've felt it coming before, and nothing. It's been two years. At American Realty Services, we are still listing REO's, though not at the clip we were listing them a couple of years ago. They will come eventually, and when they do, we'll be here. We list and sell REO properties to investors and first time homebuyers throughout Northern NJ. If you're looking to buy a foreclosure in NJ, call me discuss the REO market and what you're looking for. If I don't have it now, I will eventually. Eventually.

Underwriter's are killing sales the day before closing, lienholder's charging for extensions in dreadful ways.
So today file comes out of underwriting and they say they want a pest report and 2 minor repairs. This is a conventional sale, "As Is" and now we will not close.
Meanwhile, BOA took out provision for 2% CC that was promised to the buyer, he will now have to do the work, and all for the extension signed 2 weeks ago.
The new "Buy Back" policies are making underwriters scared silly. I have never seen them so stringent on conventional loans.

I love Corelogic so dont get me wrong but has anyone here thought of the GENIUS of the bid system?  Its a way to drop our fees but make us do it to ourselves. You can bet their fees to the investors are still the same. If we field agents are a little hungry then we can start dropping our bids to go against each other. Its OUR choice, not Corelogic so we cant get angry about the fee. Corelogic started this off with a $500 max up or down and recently added another 2 bucks possible to the downside. Genius, really.  Now how do I get car dealers to bid against each other to sell me a car?  How do I get lawn mowers to bid against each other for the lowest fee from me for a good mowing?

I wrote to them and conveyed this sentiment but received no reply. Didnt push it, as I dont want to look a gift horse in the mouth.  I really cant get mad about it. You have to admire it from a company owners view.

As of December 1st, 27.5% of the single family homes sold over the last 90 days were bank owned properties or short sales.  At the beginning of the year distressed sales accounted for over 50% of our local sales.   Although our short sale inventory has remained stable over the last 90 days, REO-bank owned property listings have declined 60% over the same time period.

This is especially good news for those looking to sell their residential home or investment property.  A decrease in distressed sales has stabilized market values with multiple offers coming back if your home is priced correctly. There are currently only 151 available homes on the market - a 38% decline from this time last year.  Reduced inventory can often return a higher sales price and shorter time on market.

If you are doing REO work you must be aware of all the training involved.  It's not just, get up and go.  Citi has mandatory training each year.  I just finished a class yeaterday that I dreaded taking , because I take similar classes all the time, however, it was great.  It got me thinking, it got me fired up and it helps me do a superior job on the bpo's band REO work that is bestowed on me. 

So quit complaining and work smart and hard.  Take your classes and enjoy them.

Like many Affiliate Brokers, at some point in our careers we determine it's time for us to go out on our own and do our own thing. Now, that time has come for myself however, I don't have the personal funds I need to start my own office. Like many others I need money. You can get money all kinds of different places however, banks seem to be the most obvious choice for most of us. In fact, I myself have seriously considered my local bank, the one I actually use for my personal money but, I am almost completely debt free and I really don't want to acquire additional debt through traditional means. Without saying it, yes.....I listen to a famous particular radio broadcaster who is known and preaches about living debt free and yes, I am trying to do just that however, I know that some debt is good. In this case, this is debt I can take on that will further my long term goals.

Now, with all that being said, let me just say, for those of you who do traditional lending...banks, etc.... I am not saying not to use you. In fact, I believe you have a valuable place in the market place and do good by lending dreamers like myself the funds we need to bring our plans into reality however, I just don't think that type of lending is a good fit for me.

So, my next option are Investors and let me tell you, I have found out in the past 2 months, not all Investors are created equal. I learned about debt partners, joint venture partners, equity partners, etc... and for a while, it all had my head spinning.....really spinning. Now however, I feel a little better and I can actually say, I think I know what I want. I think what I am looking for is a Self Directed IRA Investor who is prepared to invest in a LLC as a Debt Partner. Now, where do you find them, how do you connect with these people? That is the question.

Several IRA Custodians have reached out to me in the past couple weeks because many of my blogs have revolved around this idea. Truthfully, I really don't know why more of us, especially those of us in the REO industry aren't completely and utterly schooled in this type of investing and likewise, making it work for ourselves but, that is another blog for another time. None the less, these IRA custodians, due to heavy regulations, can't just come out and say, or do for that matter, "we want to invest in your company". So, how in the "h""e" double hockey sticks to you find these investors?

So, here is the goal. I need a Self Directed IRA Debt Partner Investor who wants to invest in a real estate brokerage focused on Traditional buying, selling and investing, distressed homeowners / REO / Short sales and the Self Directed Private Banking Concept. Anyone out there know of anyone? IF you do, please send them my way, I want to talk with them, I want to send them our business plan, I want to earn their investment. Granted, I don't need a lot, less than 50k so, even a "small time investor" would be cool.

If you don't know how to use your IRA to invest in a LLC, ask me. I can guide you to resources that will educate you, people who can offer you insight. If the only thing stopping you is that you don't know enough about it, don't let that stop you from picking up the phone and calling me because, I can help guide you.

Self Directed IRA Network??

Well, as many of you know, for the past couple months I have really been digging deep into the self directed IRA world and I have to admit, I am truly disappointed. Here I was expecting a world filled with information, people everywhere willing to share, professionals offering advice and services however, I ended up finding a world almost as closed off as REOs. After further investigation, I started to realize that it's not closed......it's just not open. In other words, no one has blown it up. Well, that got me thinking, why not REOPro, why not me?

Here is what is going to happen. Here in the next few weeks, likely right at the start of the new year, I am going to start a social network for self directed IRA investors and professionals. Like REOPro, it's going to offer people the opportunity to come together, freely share information, ideas, resources through blogs, forums, video sharing, picture sharing, on-line chat and, much more.

What we need now are advertisers. Unlike REOPro, I don't want to stay in constant debt with this new network, in fact I am thinking of having some portions of the site closed and only open to paying members however, I am curious as to just how many people may be interested in something like this. I am thinking of a really low annual fee, like $5.00 a year....really low but, keep in mind, I am not trying to get rich of my site, just trying to pay the site bills.

What we need now is some "pre" advertisers. We need to get some people on board who would be willing to pay to have their banner randomly rotating across the top of the site. I will only have 3 opportunities...that's it. Similarly to REOPro, the three banners will rotate randomly on a 30 second interval and no, we aren't fancy enough to see how many people click your ad and all those other tracking things but, if you put in a promo code in your ad, you can track it that way. No contracts, no required length....very simple, $200.00 a month, pay 3 months in advance, if you decide to leave, we will refund the prorated remaining balance to you in full.

If interested in this new network to launch in January 2013, let me know, email me at JGonzalez@RealTracs.com

The market is always changing and as such, I have learned that I too need to always be changing or at least growing. With that being said, for the past 3-4 months, I have been doing a lot of reading on self directed IRAs. More specifically, the "Private Bank Concept" within the self directed IRA industry. Honestly, this concept amazes me, in fact, I am struggling to understand why more of us in the REO industry aren't cornering this market.

I guess first off, I had to realize that many people don't even know they have the ability to direct their own IRA. I had read somewhere that 3.4 trillion dollars is setting in IRA funds right now across this country and most people (like 99%) aren't making more than 1-2% annually.....if that. Granted, most of these people have their money with some investment firm who has the money diversified in stocks, bonds or mutual funds and they make money by managing those funds for you so, it's not in their interest to tell you, "hey, did you know you can do this better on your own and save the money you are paying us?" so, most of you don't know anything about self directed IRAs. Don't feel bad, as of 3-4 months ago, I didn't either. I don't even remember how or who told me about them so, I can't even source or thank anyone for directing me to this awesome opportunity.....sad but, true.

At this point, it's important to tell you, I am a Realtor, not an Investment Adviser, not a Certified Public Accountant and most definitely not an Attorney (no offense). I am simply a Realtor who is looking to drum myself up more business, make more money and start my own brokerage by the start of 2013. Like any good small business owner, I need to find capital however, I don't want to be tied to the SBA (Government Secured Loans) or tied to a bank, personally, I would like to work with individual investors however, it's tricky. Yeah, I have a proven track record and yeah, I have a great business plan...as told to me by my SCORE counselor but, it's not easy to convince someone to give me their money to grow my business and in return, I will give them their money back plus interest. Let's face it, money is tight these days for us all however, what if I was able to tap into money you aren't using to pay your day to day bills? Ok...so, who isn't living paycheck to paycheck, I get that but, some of us worked hard enough that we have nearly 3.4 trillion dollars that isn't doing much for us and my thinking was, how could I convince people to give me some of that money. My thinking was, what if I told potential investor, Priscilla Penny Pincher that I was able to find a real estate investment (flip) that would net her a 10% return on her retirement money, why would she say no? Ok....yes, I am sure you can think of many reasons to say no but, really.....10% return in 6 months on money that is making 1% return in 12 months, it's a no brainer, right?

Well, that is where the Private Bank Concept with self directed IRA funds comes into play. It's nothing more than a strategy that real estate investors are using to complete more deals than ever before. Basically, it allows me to borrow money from an individual...not a bank, to do my flips with while paying the individual back the money borrowed plus a interest rate triple, quadruple or even quince the rate they are currently getting on the money.

Yes, it's risky, it's real estate and yes, we can't guarantee anything but, we can reduce risk by implementing strong, robust loss mitigation and exit strategies so, risk is minimized. Let's also not forget, the loan you are providing me is secured by real estate....real property so, it's not like you're going into this with no collateral.

So, here I am, learnded (yes, that is my Honey Boo Boo term for the day) about this Private Bank Concept and all I need now are the funds however, I am curious, are any of my REOPro member doing this already? If so, let me know, let's talk, let's exchange resources, let's work on creating our own Private Bank!

The end of the year is sneaking up and McKissock, a leader in continuing education for state-licensed professionals, is issuing a reminder to home inspectors, land surveyors and professional engineers to renew their licenses. While renewal dates differ by state and association, a large portion of licenses expire at the end of the calendar year. McKissock is a trusted resource for state-specific, state-approved land surveying, engineering and home inspection courses, regulation information and compliance.

License lapses and expirations are more than just a hassle – they can be a costly mistake. To help remove the potential of license lapse or expiration, McKissock recently set up a free reminder service that will notify you when your license renewal date is pending. Visit http://reminder.mckedu.com to sign up. 

“When professionals are out and about, they aren’t always focused on deadlines and licenses,” says Annie Creek, Market Research and Compliance Specialist at McKissock. “We are the go-to resource for reminders, coursework and compliance information so home inspectors, land surveyors, and engineers don’t miss a beat.”

Rules and regulations vary by state and industry, so it can be confusing to know what is required for license renewal, such as processing time, applicable forms and related fees. However, McKissock serves as a comprehensive resource about continuing education requirements and more. If you have any questions, contact 1-800-328-2008.

“It’s important to plan ahead and ensure you have the time to meet state and association renewal requirements,” adds Creek. “However, McKissock offers a wide variety of home inspection, land surveying and engineering courses that can be taken immediately so you can get back to work.”

McKissock also has affiliations directly with associations to help professionals understand requirements and receive continuing education credits, including: the American Society of Home Inspectors (ASHI), National Association of Home Inspectors, Inc. (NAHI), and California Real Estate Inspection Association (CREIA).

From the McKissock website, state-licensed professionals have access to all they need to fulfill state requirements, including governing agency information, and can begin taking required coursework immediately. McKissock offers customizable packages, individual courses and affordable webinars.  For more information, visit http://www.mckissock.com.

The real estate industry is being flooded with new marketing tools, platforms and strategies, which are being rolled out in anticipation of a new housing boom and explosion of new Realtors but is this doing more damage than good?

The real estate business has long been plagued by endless expensive and ineffective lead generation tools aimed at Realtors. Now there is a new surge to cash in on all of the players entering and reentering the business from Zillow and the acquisition of Buyfolio to The Real Estate Book’s new internet marketing makeover of old and overdone tools to Listingbook and others.

In fact, one of the biggest risks to new real estate agents, brokers, investors and even mortgage companies is training and spending themselves into bankruptcy before they even really get going, despite the slick pitches of how ‘great’ the next exotic marketing ploy is.

Savvy real estate professionals know that they need to be constantly seeking the best possible ROI for their marketing budgets, while putting their blinders on to block out these distractions, yet keeping one eye on real future trends and emerging lead generation tools which are truly revolutionary and valuable.

After all, why give up your hard earned capital to overpay for others’ experiments in advertising or give up your highly valuable leads and referrals to someone else to work for you and no doubt cash in on in other ways? Or why blow big money on complex advertising campaigns which don’t improve results or speed up production?

This is especially true when effective and affordable solutions are at hand for delivering fast results for finding distressed multifamily properties, REOs and other real estate which needs to be listed and sold.

After all, winning in the real estate game today is all about controlling the listings or at least having off market properties to offer. Fortunately the latest software, like BankProspector has made this much easier, faster and affordable to do. This tool in particular means no need to waste time and dollars on fielding calls from unqualified prospects and being able to leap gatekeepers to lock up distressed properties for sale from institutions.

Don’t underestimate opportunities like this, which present the chance to get ahead of the competition, while improving speed and profit margins to continually compound and increase success. Only those who innovate and demand top results will be able to separate themselves and stay in the game long enough to really achieve what they set out to.

Social media has been all the rage for the last several years, especially for anyone in business. From MySpace to FaceBook and Google+ being the big players in that technology, with dozens or hundreds (maybe thousands) of other smaller sites in play, too. There is one that was here before all the others that is often the most forgotten….LinkedIn.

I want to share some of my thoughts about this particular social media platform that was first and foremost a business-to-business relationship builder. I first joined LinkedIn in 2004 after reading about it in an online article that told me that I had to join this service. This article was about this new technology coming out called “social media” and how it was going to change the face of business. Little did I know at that time, that years later almost 80% of my information and news would come from these social media sources.

Back then, LinkedIn was only about connecting with people you already knew or had already done business with. It was basically an online résumé. You were limited in how many people you could “connect” with....

For "The rest of the Story", please visit:

http://www.realestateauctions.com/blog/auctions/linkedin-and-social-media-are-great-for-business/

I just closed a short sale in 60 days. The bank was Wells Fargo with one loan. With a cooperating client, true hardship, one loan, in Equator, and V.A. as the investor, what was there not to like?  The buyer was an all cash investor who wasn't going to walk away when the going got rough.  Can you believe I got 18 offers the first day? That's how low our inventory is in Southern California. 

This kind of short sale makes up for all the ones before that were nightmares. As agents, we will have bad transactions, but a dream transaction like this is what keeps us in the business. Most importantly it felt good to help someone get out of an awful situation that they did not create. I am truly not happy unless my clients are happy.

Like everyone, I am wondering what the new year will bring.  I hear more short sales; I hear more bank owned releases. The shadow inventory?  I have been hearing about this since 2009. 

I hope every agent has the dream short sale transaction they deserve for hanging on in this market.

How many agents have been approached to pay for your buyers inspections?

I haven't ever been asked this until the other day. I am a REO agent that has a listing and the buyer ended up coming to me by referral. I have been working on this house for over a year, doing weekly inspections, tasks, MMR's, BPO's and the sales price is less than $150k. Then the buyer and family member is pushing me to help split her inspection costs. I told them I would like to help and I will pay to get the sewer inspected which is about $75. I also got quotes of reputable inspectors that are cheaper than most and I am getting her a roof, pest and home inspection for $480...but they still want me to pay $200 for her inspections. I am frustrated at the fact they aren't accepting my response and are pushing for me to help cover her costs...I don’t know but do you think I am being unreasonable or the buyers??

McKissock, a leader in continuing education for real estate-related professionals, has outlined five ways to keep home inspectors on the job. Rookies and veterans alike have the same things to consider as the industry changes; this list is applicable for anyone who needs to keep their income flowing. McKissock is a trusted resource for state-specific, state-approved home inspection courses, regulation information and compliance.

The following tips are important home inspector requirements:

1. Don’t Compromise Safety. Although obvious, there are safety precautions that every home inspector should never ignore. It may be as simple as ensuring that you have the correct safety clothing and equipment, but this is the foundation of the home inspection profession. 

2. Make sure your license and insurances are up to date. It’s absolutely critical to have a current license and insurance. Even if your state does not require licensing, insurance should be a “must have.” Know your renewal date and schedule continuing education classes early enough so you are not in fear of a license lapse. 

3. Know Local Laws and Legislation. Each state and local jurisdiction has their own laws that pertain to the home inspection industry and they do tend to change. Make it your responsibility to understand local laws and ensure you are not putting your license and career in jeopardy.  

4. Practice Practical and Successful Reporting. How home inspectors take notes, document findings and present results to clients is of paramount importance. There are always ways to improve these reports and increase the potential for repeat business. In addition, all records need to be maintained as required by state regulations.

5. Stay on Top of New Trends.  Whether it is the increase in green building practices, the usage of dangerous construction practices or materials, or any other new construction trends, it’s a home inspector’s duty to know about the latest-and-greatest materials and techniques.

“Home inspectors are busy professionals who provide an important service,” says Annie Creek, New Market and Compliance Specialist at McKissock. “We are committed to helping home inspectors deliver up-to-date knowledge to their customers and have the confidence that they are complying with their state or association’s regulations.”

Some areas that McKissock’s Home Inspection courses cover include:

• Attic Ventilation
• Codes of Ethics and Standards of Practice
• Construction Details and Trends
• Electrical Systems
• Exterior: Walls, Windows, Roof and Foundation
• FHA 203K Inspections
• Foundation and Footing
• Home Energy Inspection
• Home Inspection Safety
• HVAC Ductwork
• Plumbing Cross Connections
• Pools and Spas
• Pre-Drywall and Drywall
• Radon Detection and Mitigation
• Reactive Chinese Drywall
• Reporting
• Residential Cooling Systems and Heating Pumps

From the McKissock website, home inspectors have access to all they need to fulfill state requirements, including governing agency information, and can begin taking required coursework immediately. McKissock offers customizable packages, individual courses and affordable webinars.  For more information, visit http://www.mckissock.com.

A quick summary:

2012 is definitely showing strong improvement; up 7% over 2011 when measuring by $/sq ft and 9.4% when measuring by average sale price. The rest of the story is the shrinking supply of inventory as has been shown for a long time now by the inventory and list to sold charts.

I don’t typically get excited about monthly figures but the past 5 months show a significant upward shift. See chart #1

Unless something drastic happens and if current trends continue, expect 2012 to end very strong; much higher I believe, than anyone expected. Below is a quick summary. Certainly take a look at the charts to see the trends and historical data to put it all into context.

View charts and tables attached to see more detailed reports

Price/sq ft

Third Quarter 2012 over Third Quarter 2011:            Up                  

Third Quarter 2012 over Second Quarter 2012          Up                  

2012 YTD over 2011.                                                    Up

Home Size

Third Quarter 2012 over Third Quarter 2011:            Up

Third Quarter 2012 over Second Quarter 2012:         Up

Number of Sales

Third Quarter 2012 over Third Quarter 2011:             Up                 

Third Quarter 2012 over Second Quarter 2012:         Stable                   

Many sources quote Median sale price and/or average sale price. View the tables to see how these values can paint a different picture of the market.

View charts and tables to see other market measures on one of these sites:

http://www.centralorproperty.com/Central,ORTrends.html or http://centralorhomesales.com/inventory.asp

Know anyone considering short selling to avoid foreclosure?

Please direct them to my dedicated site that fully explains the short sale process. www.bendredmondshortsaleexpert.com

I am so excited about this news! I know, it doesn't take much for me to get excited, but this is really big news in my opinion.

Up until now if you were involved in a Silicon Valley Bank of America Short Sale they did not take electronic signatures. This would have been ok if the bank could sit with you in your conference room and look at the offers. We all know this does not happen and the paperwork will often be faxed several times before B of A gets to see a document. Since they cannot accept illegible documents it made things harder for the participants.

Also, despite the sometime lengthy process of a short sale, Bank of America will often say they need a document now, and not being able to get electronic signatures is sometimes tough.

Now, for any new short sales, you can send all documents with electronic signatures. This makes me very happy. As a Silicon Valley Short Sale Specialist anything that can make a short sale more efficient is ok with me.

So if you have any questions about short sales in San Mateo or Santa Clara Counties please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E. 01191194

I was heavy in the REO / BPO business in Las Vegas for 6 years. I moved to San Diego about a year ago and took a break from real estate sales, instead opting to work with a company affiliated with doing tours to London for the Olympics. Now that the Olympics are done, I am attempting to get back in to the REO / BPO biz, and am finding it SO difficult to get get my wheels turning again.

I previously got most of my listings from Old Republic, but upon trying to get biz again, I have found I must now be a BofA approved agent. I got most of my BPO's from FARVV but am having no luck receiving new orders from them after updating my account to reflect active/change in state to CA. With every company I try to reignite my relationship with or sign up with anew, I am running in to walls and roadblocks everywhere I go!

I'd love to hear some suggestions on WHO IS HIRING AGENTS RIGHT NOW, or any advice on how to get my career in REO / BPO going again. Thank you for your help!!