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Because the last prediction I wrote last week was such a success, I thought to myself, why don’t I blog a bit more about my predictions so, here it is.

I predict that 2011 may actually end up seeing the highest number of foreclosures in our nations recorded history.

Reason # 1: Lack of substantial job growth.

 I do believe that with the extension of the Bush tax cuts the Federal Government passed a couple weeks ago, our Government instilled some…….just some…..confidence in the business community to spur a very modest growth. You have to keep in mind, the extension of the Bush tax cuts was a tax hike prevention or, in other words, the business community is at a wash, one way or another. To elaborate a bit further, the business community had already been working under the cuts with no growth so, an extension of the cuts isn’t going to do much to grow the economy because, it really doesn’t change the underlying systemic fundamental problems. I am not saying that we should have allowed the tax cuts to expire because if that had happened, we would have made problems worse by raising taxes on everyone in a distressed, possibly depressed economy. I am for the cuts but, I don’t believe they are going to make that big of a difference because, the true problems are not addressed. The cuts were nothing more than a lesser of 2 evils.

Reason # 2: 5, 7 and 10 year ARMS (Adjustable Rate Mortgages) adjust in 2011.

During the height of the sub-prime mortgage bubble, we saw people getting  5, 7 and 10 year ARMS. Take 2011 and count back  5 years and you get 2006, the early days of the bubble build up, 7 years back you get 2004, when sub-prime lending was really breaking out of it’s shell and of course, 10 years back, 2001 when people hadn’t even heard of sub-prime lending. My point is, in 2011, 3 different types of very popular sub-prime, bubble building ARMS are going to reset, this is more resetting than we have every seen during this crisis. I can’t even imagine the carnage.

Reason # 3: Government Home Retentions Programs Prevent a Real Estate Bottom.

HAMP is the single greatest home retention failure of this Obama White House. 75% or more HAMP participants default out and end up in foreclosure however, what HAMP does do is buy these people time. In some cases a year or more. So, John Smith, homeowner is 3 months behind, applies for HAMP which takes an additional 2 months to get preliminary approval, John pays his preliminary discounted mortgage regularly for 5 months and then defaults off, 6 months for the bank to catch up with the default and file foreclosure paperwork and 3 months to foreclosure and evict, then 6 months before the home hits the market. Add it all up and you get 25 months or 2 years before a home hits the market from the time the homeowner defaults. So, look at it this way, Government has contributed 2 years worth of underlying inventory to an already 3-5 year inventory of distressed property simply because Government wants to save people’s homes in the name of reelection. This is bad no matter how you cut it.

Reason # 4: Energy Prices will Rise to un-precedent levels.

It was just 2 days ago that BP (British Petroleum) announced that they are re-working their 2011 budget with the premise that gas prices in the US will rise to $5.00 a gallon. Fuel cost effects every aspect of our daily lives. It’s not just how much you pay at the pump. It’s how much it cost the truck delivery man to deliver the goods to your local grocery store. Over 90% of the goods you buy at a grocery store get there from a truck and that truck can only get there when it fuels up its tanks. If that fuel increase goes up on that trucker we can expect to see prices for individual goods to increase as well. A absolute correlation between prices of goods and price of logistics is fact and this is a law of supply and demand that can’t be broken.

Reason # 5: Risk of inflation becomes a real concern in 2011.

Instead of speculating about inflation, 2011 will be the year we actually start talking about what percentage inflation will rise. Increased trade deficits, continual devaluing of the US Dollar, continual movement towards a green agenda and, high federal debt will move inflation up. This will be done in order to stem off a collapse of the dollar because of continual devaluation.

Reason # 6: Credit Tightening.

As a direct result of the foreclosure fall out that I predict will occur in 2011, we will see an increased credit tightening. Now, personally, I don’t see this as a bad thing, I am of the opinion, a home is not a right, it’s something you earn and if you can’t earn it, you don’t deserve it. None the less, since the Community Re-investment Act, this country has been on a drunken binge of “everyone deserves credit” and it had everything to do with our real estate bubble however, times are changing and banks are going to have no choice but to tighten credit standards so they can reduce their risk for losses. This will increase housing inventories and work towards a further across the board housing price drop but, it gets us closer to a bottom and the ability to rebuild.

Reason # 7: Unforeseen National Crisis.

It was once told to me that luck favors those who are prepared and bold. Unfortunately, this Country as a whole is not prepared and our threshold to make big bold global decisions has all but disappeared since the Obama administration has taken a apologetic, appeasement stance on the World stage. This has done nothing but embolden our enemies and provided safe havens in countries that are less than cooperative. I can’t predict an unforeseen national crisis but, I can imagine a “what if’ scenario and it’s not pretty. The best I can say here is that we should be preparing for the worse and hoping for the best but, that is most definitely not happening with most Americans, let along our Government.

In conclusion:

Any one of the above reason I listed is enough to truly hurt the housing industry. If you couple all of these things together in one hit, it stands to reason, can the housing recovery even take place in 2011. My opinion is no, a housing recover won’t take place in 2011 because if we were to resolve any one issue, we would still have 6 others threatening the recovery. In other words, the housing industry has too many uncertainties, Government influence and, was much more devastated by the Community Reinvestment Act and sub-prime lending than anyone wanted to really tell the American public. I hope for the best but, I have prepared for the worse.   

NAR Existing Home Sales

Existing home sales which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 5.6% to a seasonally adjusted annual rate of 4.68 million in November, but are 27.9% below the cyclical peak of 6.49 million in November 2009, which was the initial deadline for the first-time buyer tax credit. Median existing single-family home prices rose year-over-year in 77 of 155 metropolitan areas and fell in 76 metro areas.

NAR Pending Sales

A forward-looking indicator, rose 10.4% based on contracts signed in October from in September. The index remains 20.5% below a surge to a cyclical peak in October 2009, which was the highest level since May 2006.

Rent Vs Buy

The argument for affordability has a few key components. Price, cost of money and a comparison to a similar property rental.

Price
Home prices are running about 22% less than five years ago. Its hard to know when price has reached a point where willing buyers step up, but pending sales clearly point to a slowing trend. The Commerce Dept. report showed that new home sales rose 5.5 percent to an annual rate of 290,000 in November from the revised October rate of 275,000.

Price will continue to decline and increase affordability. There are some that think a double dip is in progress and we will see continuede price declines through 2011 or 2012.

Cost of Money
Lower tax rates just extended for another two years may boost growth. Mortgage rates responded by increasing to a six month high with rates up more than half a point in just the past month. NAR President Vicki Golder, points out: A decade ago, mortgage rates were almost double what they are today, and they’re about 1.5% lower than the peak of the housing boom....So still historically low.

Rates remain low and are still well below where they began the year. Low mortgage rates are an important factor affordability, which in October was the highest on record

Rent Comps
Rents increased for the second quarter in a row. Asking and effective rents increased by 0.5% and 0.6% respectively in the third quarter and vacancy rates dropped from 7.8% to 7.1% nationally.To summarize, price is dropping but cost of money is rising and so are rents. Most areas havent reached a balance between the cost of renting and the cost of buyi ng, probably the main arguement for home prices continuing to descend to meet a willing buyer.

Rule of thumb: Homes are probably fairly valued at about 15 times a year's rent. So, for example, if you're paying $15,000 a year to rent a place, think twice about buying a home that costs more than $225,000. Fifteen times is the historic average.

Your home is not a growth stock. You should look to justify multiples higher than 15 to 20 by considering personal needs, proximity to schools and transportation, your own cash flow situation and job security.

It would also be advisable to get a sense of what the property would likely rent for and see how far that rent would go towards paying the mortgage should you have to move. Home sales are slowing and if you find yourself a reluctant landlord, be sure you can carry the mortgage.

REsourced from http:// www.yourpropertypath.com
You may republish this article, as long as you do not edit and you agree to preserve all links to the author and www.yourpropertypath.com

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Saving Money When Designing And Building Your Dream Log Home


Consider log home design options:
You have a wide variety of log home design options to consider.
At the top is a handcrafted log home or a timber frame log home. From there youcan go with a milled log home and even a conventionally framed home with logsiding and log accents for those on tighter budgets.

The savings start with the design of your log home. - The best way to beginyour design is to find a floor plan that is close to what you are looking for,mark it with your changes and send it to one or more log home companies of yourchoice. Most log home companies will gladly advise you on your custom log homedesign, where to save money, and then quote a kit price. Don't be reluctant tobegin a design with your unique requirements. Rarely (and I do mean rarely)does a company ship the same log home kit twice. If you are having difficultyfinding a plan that fits your life style, go to a search engine (e.g., www.google.com, www.yahoo.com, etc.) and search on “log home plans.” You will find many loghome companies listed; most of which have extensive libraries of standard floorplans. Another option would be to search on “house plans” where you will find amind boggling number of companies that sell conventional house plans, includinga few also offering log home plans. Remember, most log home companies willgladly convert a conventional house plan to a log home plan. Remember, the morecorners in the foundation, the more complex the roof system, the more windowscalled for, the more exposed rafters called for (as opposed to locallymanufactured roof trusses), the more the home will cost.

Do the log home labor yourself. - This is the opportunity for thegreatest saving. Of course, most of us work full time at other jobs and do nothave the time for such an undertaking. However, if your heart is set onresearching this option, visit any of the online book sellers, search on “loghomes” and order one or more books that focus on the construction of log homes.But perhaps the wisest choice would be to contact a nearby log builder andnegotiate an hourly rate for consultation or have them give you a proposal tobe a construction manager for you for a fixed fee or percentage on the costs.This method allows any savings to be passed back to you. It is best to spendtime and money up front to get the job done right, rather than deal withproblems later that never seem to go away.

Act as your own builder. - This is your option for the second greatestsaving. Many log home buyers decide to be their own general contractor.However, be aware, this choice is not without its headaches. That is why yousave all those bucks! Local building officials can be difficult to work with;subcontractors will be late or never show up; deliveries will be late or thewrong materials will be delivered; the weather is unpredictable; subcontractorsand suppliers may take advantage of your inexperience. And the list goes on.Regardless of the pitfalls and stress, acting as your own general contractorwill still save you about 15% - and that is big bucks. If you elect thisoption, again visit online book sellers, search on “log homes” and purchase oneor more books that deal with log home construction. Contracting with anexperienced builder to serve as an advisor or construction manager is highlyrecommended.

Shop for financing the same as you shop for building materials, appliances,etc. – If there is no local lender experienced in the financing of log homes,go to the search engines and search on “log home loans” or “log homemortgages.” Lenders will not charge you when you apply for a loan. Fileapplications with two or more lenders and then select the best deal. Sometimesit’s good to look at a national log home lender with log home experience.

Select your building lot with caution. - How long will the driveway be?If you must install a septic system, a health permit is a prerequisite, andthen, will it be necessary to pump to the drain field? Will it be necessary tocross a creek? How much grading will be involved? Is tree and stump removalgoing to be a problem? Will there be a rock problem when the foundation isexcavated? In other words, a "cheap" lot can quickly become anexpensive lot. If you are having difficulty finding a lot, contact a local realestate agent. Give the realtor your lot selection criteria (price range,location, size, etc.) and tell him/her to search the Multiple Listing Servicedata base. There is no charge for this service. The true price of the lotshould include all those things necessary to have it ready to build onincluding driveway, sewer, water, & power systems on-site.

Select your log home builders with caution. - When talking to buildersask for references and visit log homes he/she has built and talk to the homeowners.

Select carpet as your floor covering rather than hardwood floors. - Yes,hardwood floors are a "natural" in log homes. But we are looking foropportunities to save money. Perhaps you can compromise. Put hardwood in thegreat room and carpet elsewhere. Remember, at a later date (after you havereceived a job promotion or two) you can always replace carpet with hardwood.

Use Cultural Stone for wall accents and fireplaces attached to plywood andstuds in lieu of a full masonry or stone. - Don't tell your friends. It'simpossible to see the low cost plywood and studs thru the cultural stone. RealStone also weighs a lot and can require additional structural support. Thisdecision can save you a lot of money

Consider an efficient wood stove over an inefficient and more expensivefireplace. - Select black flue pipe instead of a masonry chimney. The blackflue pipe looks great in a log home.

Build your log home on a crawl space rather than a basement. - Again, weare looking for opportunities to save money. Sure, a basement is cheap floorspace and many buyers opt for the extra storage, shop and/or recreation roomspace; never-the-less, eliminating the basement will save $15,000 - $30,000 ina typical home.

Have your custom fixed glass manufactured locally. - Yes, your windowsupplier will want to order your fixed glass from the factory. While he/she isgetting a quote from the factory, visit a local glass shop. You may bepleasantly surprised. Locally manufactured fixed glass windows are availablewith double glass and/or tinted glass.

Select your windows and doors with care. - This is a major opportunity forsavings. Compare the quality and cost of several manufacturers before making adecision. If you expect to have a large number of windows and exterior doors,ask the suppliers if you qualify for a truck load discount.

Select your plumbing fixtures, electrical fixtures and kitchen cabinets withcare. - These are also major opportunities for controlling your costs.

Start shopping early. - Whether you hire a builder to do a "turnkey" job or act as the general contractor, you can save money onindividual items in the house - for example, appliances, floor coverings,windows, doors, plumbing fixtures, kitchen cabinets, counter tops, etc., etc.The earlier you start shopping the more likely you are to find items on sale.Just let your "turn key" builder know in advance that you plan toshop for sale items and BE AWARE, if you slow down or inconvenience the builder,you will quickly lose what you saved and probably much more.

Best wishes as you embark on an exciting journey.

Check out our Log Homes, Log Cabins, Luxury Log Homes, new log floor plans,client photo galleries, new articles, and videos at http://www.avalonloghomes.com/

             I am sure you've heard stories about an REO agent in San Diego getting a listing assignment in Los Angeles, I am just really curious to see how many mile radius the asset management companies/banks are limiting you to I have had some companies cut back from 30 to 15 miles from office. Does anyone use their home address? If so how do they get away with it? I would like to hear seom of your feedback. Thanks, wish you all a productive 2011.

It is so astonishing that I am blogging about this, as I cannot fathom a seasoned agent (or educated adult for that matter), spelling their clients name wrong.... much less a client that gives you 100 listings a year!

 In 2010, every agent with the slightest amount of tech savvy would know that you can Google virtually anything in 2 seconds if you are unsure (or forgot to read your listing agreement). Heck, Google will even correct you if you're mistaken!

I'm forgiving of the occasional misspelled word or typo, and I realize most MLS sites don't have spell check (which we are all way too accustomed). However, isn't listing data important enough to check, double check, and triple check? Not only to make sure you know whose property you are listing, but so the buyer's agent knows who to write the offer to?

Not counting the myriad of funny variations I see on "bank of record"... here are the best of 2010:

• "First Presten", instead of "First Preston". Ok here is an easy way to keep it straight… think "Presto Logs"! No joke... if you can't keep it straight, possibly consider another profession.

• "Capitol One" instead of "Capital One". The capitals of a state, a capital letter, and/or a capital investment… are not the same "capitol"that is a congressional building. Hint… capital = money = bank. If all else fails, you can Google that too!

• What do foreclosures and REO have to do with cattle you ask? Got me! Guess I need to ask the agent that calls them"Oxwen Loan Servicing" instead of "Ocwen Loan Servicing".

Last, definitely not least, but by far my favorite....

"Fanny May" or "Fannie Mai"... instead of "Fannie Mae".... Really?

Do these people watch the news? Heck, are you even alive and living in the United States? This is an easy one guys, come on!

Agents, please remember - When the bank asks you to upload the listing image for review… It's not so they can spell check it for you!

If you are a bank or asset manager looking for an agent that can spell your name right at the very least, don't hesitate to contact me today, or visit us on the web at www.PacificNorthwestREO.com for your all of your REO needs.

***Photographs courtesy of Flickr, and yes I have permission to use them

Also a proud member of...

Many agents have been asking if attending conferences would be worth the investment. Personally I believe- absolutely!

This is where you go to meet like minded people who are interested in the same line of business.  What better place would there be to network.  You may just meet the perfect connection.  I did!!

I will never forget when I began my journey in the REO and BPO field.  In the beginning of making my investment of attending the REOMAC convention I was very apprehensive because of the cost.  I made the decision to attend. However before attending I would spend days and evenings doing research over the internet registering with different companies than I began a marketing campaign which resulted in meeting my first connection at REOMAC.

Does attending the conferences work I would say absolutely!!  I have known some agents who have never attended a conference in their life whom have 100's of listings then I know of those who attend on a regular basis and continue in their success of receiving assignments. If you do attend and it results in assignments then it was well worth your investment.

Try warm marketing before attending so your intoducing yourself to the asset managers before they even meet you!

To your success!!

Susan Flowers

Housing Predictions for 2011

Normally, I am not in the business of predicting trends, simply because I believe all real estate is local. However, due to the economic condition of the Country and World, I do believe 2011 will be a year that either makes or breaks the real estate industry in the next 3-5 years.

A Government divided:

It is my opinion that a divided Federal Government is a lesser of many other possible evils. As we learned from the first 2 years of the Obama White House, a Government who is unified under one party banner is a Government run amuck. The citizens of this great Nation saw laws pushed through that in a time of a divided Government wouldn’t of had a chance in their current form. To broaden the perspective a bit more, I see a divided Government as a check and balance on the party agendas and special interest groups. Granted, with the size of the Government we have now, we will always have corruption and back room deals but, it is fairly certain now, with debts at their current levels, our Country can’t continue with the size of Government we currently have. In other words, a small Federal Government means less spending, less debt and a better ability to route out corruption, prosecute offenders and return God given freedoms back to the citizens.

By now, you may be wondering what a divided Federal Government has to do with housing in 2011. I predict that as a part of posterity measures that will be introduced by Tea Part Republicans we will see a draw back if not a complete withdrawal of many of the current failed housing recovery programs. I don’t know exactly what the fall out of these programs will be but, I submit for your contemplation that, we will see an increase in foreclosure inventories. An increase in foreclosure inventories means further drop in prices and hopefully a bottoming out so that we can rebuild the industry.

Local Government Bankruptcies:

I really do believe that 2011 may be the year we see small local Governments fail and declare bankruptcy. We are see huge debts that are causing local Government to straddle the line of financial failure and continued debt spending. With continued public pressure and Federal Government spending cuts, many of these debt heavy local Government could find themselves with no options other than Bankruptcy. Local Government will cut all spending except for necessary public works, like utilities and law enforcement. As part of their local Government spending cuts, unions will find themselves in courts fighting tax payers for their pensions and services will suffer.

This scenario will directly impact housing because buyers will keep their money in their pockets due to the uncertainty that will be created. Housing prices will further drop, equity will be lost, foreclosure inventories will rise.

In conclusion:

For many of us, this sounds like a epic tale of the fall of a great nation in history however, for some of us, we are able to see the signs, read them and understand what they mean.

Granted, the future is never written in stone and we do live in a Country with the most resilient people in the World so, I am optimistic.

How can I be so optimistic you may ask, well………it’s because I know this Country has within it’s awesome foundation a faith in all that is good and therefore, an ability to make tough decisions that will put us back on the right track. In the meantime, it could be hard, it could get nasty, we may see our fellow man hurt and suffer but, we will unite, we will come together and re-learn what it means to be charitable, what it means to be close to family, what it means to look out for one another. I believe we are a divinely inspired Country and as these times turn our face back into the light of inspiration our minds will be centered on the greatness of God and the darkness of the future lights up and becomes much less daunting otherwise.

The catalyst for a man to make a permanent change is when he is on the edge of an abyss. The abyss seems to be coming more into view.

Altisource is no longer assigning listings to agents, no matter how many BPOs or CMAs you do for them.

Any work Altisource assigns to you will not get you any listing no matter what they promise. You will not be paid for any property management or assistance you do for them. The do still need local Agents for BPOs and CMAs and do still pay the money for those. Make no mistake you will not get listings from Altisource (Ocwen) any more at this time no matter what you do for them.

Altisource now has hired one inside agent for all of the entire state you are in. This agent will list all of the properties no exception. All the work leading normally up to listing that you do will be done by you without payment. Their one agent can not travel all over the state for BPOS, CMAs , cash for keys and all else required.

Altisource sends out assignment agreements and gives you duties to perform. In the assignment letter it states if you accept the assignment the property will be given to you to list when it is ready to market. You do everything they request including getting utilities on , help with securing, code violations, BPOs , property checks to occupancy checks and even CFKs. Then when they do put it on the market it will be taken from you and assigned to their own inside statewide agent. If you call to complain they act like they do not know what you are talking about and tell you it is their choice who they list with. Altisource sends you a property assignment letter requesting you perform work for them. Do not think they have to follow through no matter how much time or work you put into their asset, they will not list it with you. And will not pay you for anything you do associated with the assignment.

After working on 3 properties for 3 months they listed all 3 with their own State agent and paid me nothing. I had a listing, which I sold for Altisource (my listing my buyer) and they refused to pay the agreed on listing commission in the listing agreement. They also took 2 referral fees and a management fee from my commission. The listing agreement stated that the "listing agent commission would be 1.5 % and the referral fee would be 1.5 %." At closing Altisource paid me only 0.05 % and kept the rest. I did send them the listing agreement they had signed and they responded "TOO BAD" we are paying you only 0.05 % and they did. They also kept the 700.00 management fee that was to be paid to me and assigned it to Altisource instead (themselves) for management of a property they had never even seen. They used my pictures in the MLS when their own state agent listed the properties.

DO NOT DO WORK FOR ALTISOURCE (OCWEN) unless you want to work for free. Do not help them cheat Realtors, and change the rules in our industry forever, by doing their CMA and BPOs. If we do not stand together on this we will have a disaster in our industry which can not be undone.

Its been about 5 years since I started in this REO indurstry.  Progressively, the game has changed and things have become harder and harder to deal with on a small level.  I have 18 employees and 20 sales agents, so we get it all done here.  But now, during the same time every year, we have these 2-3 weeks of nothingness.  What I don't understand is why there is a moratorium?  Listen, I have a heart, and I understand people do fall onto bad times, but c'mon.  You took out a mortgage a few years ago, that you, your wife, your children, you parents, friends, etc all knew you couldn't afford.  But, it was the "american Dream" so you did it and never looked back, until you couldn't make a payment anymore!  IF you are a tenant of a foreclosed property, I truly feel for you, and I will do anything I can to help you out during these times.  I have tenants all the time who tell me they have been making their payments for 2 years and they cant understand how this happened.  You DESERVE CASH FOR KEYS.  

So now what, the banks out the 300k they gave you, your living in a house that you don't pay for, the bank is paying your taxes and utilities, and you cant even leave the house in good shape when you leave!  Show some pride and be amicable and get out when you stop paying!  There is no reason a bank should have to pay you a Cash for Keys of even a dollar!  You should just leave!  Lets think about this logically, I buy a car for 50,000.  I pay 5,000 up front and i'm left with a payment of about 1,000 a month.  If I stop paying for the car, does the car company come to my house and offer to give me THOUSANDS of dollars to give them the car back?  No, they hire a tow truck company, and come take the thing off my driveway!!

On top of all the ridiculousness of people living in houses that they cant afford, I am a born and bred New Yorker.  In this lovely state, we are referred to as an "Attorney State" and a "Landlord State".  So, on average, it takes about TWO YEARS, yes TWO YEARS, to get a foreclosure completed here.  So thats TWO YEARS of not making a payment to the bank, before they can even have the DEED for the property!!!  Then if I still don't want to leave, guess what?  I can usually stay another 1-3 years while the LANDLORD (The foreclosing bank) tried to EVICT me!!!  So in essence, I can live in a house, with NO EXPENSE, for 3-5 years!  Why on EARTH does it take this long?  And then, to top it all off, the banks are nice enough to stop "evicting" people during Thanksgiving, and this year between December 20th-January 3rd.  Now, although it seems like the "right thing to do", if the eviction of a homeowner happens to fall during that time, let them go live back home with their parents until they can afford to move out, OR use the past 3-5 years of mortgage, tax, utility payments that you have NOT made, and go rent a place you can ACTUALLY AFFORD!!!

I guess I would really just like to see the 7.5 million houses that are in the backlog (The gloomy shadow inventory) come to market.  Maybe we can actually stabalize the housing prices if we sell off the homes we need to in order for the market to correct itself.  :)

Titanium Solutions a dream or nightmare?

I have been a Titanium Housing Retention Consultant for a while now and as of tonight, I don’t believe I am anymore.

Let me say, when Titanium first started, it was a force to be reckoned with. They had clout, standing and were well respected yet, how time strips even the most promising of their ability to fulfill a profitable future.

You see, it has come to my attention through my experience and company insiders that Titanium has greatly reduced their Salt Lake city staff, greatly reduced their number of assignments and it’s staff are wondering, will today be the day the doors are locked.

I don’t want to talk about my personal experience with Titanium Solutions because, at one time, it was a company I truly supported and in fact, it could be argued that due to me, a lot of their HRC’s heard of them so, I have a bit of affinity for the company however, things have changed.

I have been rejecting assignments lately because the pay has become almost laughable, the contact ratio is ridiculously low and the short sale conversion rate has almost dried up. Granted, some might say all of these things depend on the individual agent however, I beg to differ.

You see, Titanium no longer has the monopoly on home retention specialist or short sale experts and thus, these homeowners are finding alternatives and not relying on the banks to make first contact. In fact, most of these homeowners are going to 3^rd parties like NACCA or Federal and State foundations set up through local community centers, churches and non-profit organizations. Truth be told, even banks are now sending out information to local resources these at risk homeowners can drive to in order to get the help they need so…..large national outreach companies like Titanium are finding this new market place of proactiveness very difficult to deal with. You see, the Titanium business model was built on a reactive frame work. In other words, when the bank wanted to make contact with a homeowner to save the home, they would send out Titanium as a last resort but, that is no longer they case. In fact, many States now handle home retention locally through nonprofit organizations so, instead of paying a company, they can get a nonprofit to do the work for much less.

Anyways, enough about why Titanium is failing let’s talk more about my call with Francine Bailey Bird. Francine is my HRC Manager, or something like that and she calls wanting to know why I haven’t accepted or declined my assignment. Well, I explained to her the pay was too low and we the conversion rate to short sales was non-existant because, many assignments we were now getting were strictly home retention. Of course, she begged to differ with me and that’s fine but, none the less, I told her I wasn’t going to be accepting the assignment if it was just another home retention assignement. She then proceed to tell me that is all she does and if I am not interested she can just remove me from all assignments. Her flippant attitude towards me really sealed it and I replied with a, “Ok, that’s fine with me”

So, as of right now, I don’t think I am a Titanium HRC but, I have to be honest, with a Area Manager like Francine, I am ok with that. I mean, I am sure someone would find her as effective and good at what she does but, if her job is to keep HRC’s and work at making them successful in a team effort….in my opinion, she will fail miserably.

I don’t think Titanium is on the right path, I think Excellen, their REO division has destroyed them and their reputation. I think they have lost a lot of great employees that once made them great and now they are dealing with a skeleton crew, over worked, under paid, under appreciated, jaded, pissed off Area Managers and now, they can watch their best HRC’s walk away because half of us were only staying on due to the promise of getting REO inventory and now we are one and half years later with nothing more than an email telling us Excellen isn’t expeting REO’s for a “while”

Sorry Titanium but, your house is obviously not in order and we are seeing it.

Do you have an REO Staff to assist you if so

Follow these words of advice with your staff-  to your success!

Give great direction.

Make sure you’re giving your staff all the tools they need to be successful. This includes resources, instruction, training and great direction. You don’t have to do the training yourself, but make sure you can direct them to where the training is. If it’s online show them where the tutorials are or show them where the help desk is and if it’s offline see if there are any classes being offered.

Set expectations-

Set expectations in advance. Have you occasionally failed to set expectations? Then later you find your self disappointed - remember your employees are not mind readers and neither are you.  It would be a good idea to communicate either in writting or verbally your expectations.  If we don't do this then we can't be mad at anyone but ourselves.

Don’t micromanage-

Do you find yourself micromanaging your employees?  I've been guilty of this in the past. This is one of the fastest ways to get a disgruntled, disempowered employee.  Don't interfere with their creativity. 

Offer constructive feedback-

Help to fix mistakes in a positive way by providing constructive feedback. 

Be specific in your instructions. Constructive feedback will result in excellent service from your staff- give it a try.

Be grateful-

Be grateful for your employess, remember the more successful your employees are the more successful you and your business will be. Don't forget to show that you are grateful on a regular basis- you will not regret.

To your success!

Susan Flowers

Asset managers want to work with real people. You have to be easy to work with, make things very simple not complicated. You have to be the one they can trust to get the job done- be their go to agent in your city.  Remember asset managers are dealing with many people and files on a daily basis and this can be very stressful.  They need agents who will make things simple and will make their working life easy.

Have a very compelling biography and resume.  Be different from your competition and be creative, think of ways you can draw your asset managers attention to you. Think of what you would want to hear if you were an asset manager when creating your resume. Tell them what they want to hear and make sure you back it up!  Do not put non related REO facts and accomplishments in your resume this may detour the asset manager from selecting you. 

Position yourself as an REO agent. Do you have an REO specific email? Web site?  If not, you should start working on this and position yourself above the competion. 

Do everything to make sure you have a good score with your asset manager, never be scared to ask them what your score is.  Remember, you are trying to provide them with excellent service. If you learn that your score is not where you want it to be, let your asset manager know that a high score is important to you, ask what you can  do to provide excellent service and how you can bring your score to where they would like to see it.    Don't miss out on leaving an impression by delivering results you will not regret when marketing yourself above your competitors.

To your success!!!

Susan Flowers

Century 21 Town & Country

San Bernardino, CA

E Broker house is my management system of choice.  I looked into the many different web based management systems out there and found E Broker house to be very user friendly and affordable.  I was able to learn the system within a very short period and began to implement it in my daily activity of REO.  It has worked out great.  I wish I knew about E Broker a few years ago, it probably would have made my life in REO a lot easier. 

Here are a few reasons why I have chose to use E Broker house.  First they have a staff whom is professional and is always there to help when needed. Secondly it is an easy way to keep track of all task of an REO assignments including tracking reimbursements, saving files, no need to worry if your computer stops working, you have a backup you can depend on.  Not to forget to mention the pricing is very reasonalble, as mentioned before- less expensive then other companies.  You can also track offers and have offers submitted directly to the offer submission site which makes tracking offers very easy.  I really like the tasking feature, you can send out task to your staff and upon completion of the task you will be notified once the task has been completed.

These are just a few features of E Broker house that I appreciate, if you have not visited their site you may want to visit them to make your organization in REO a smoothe process visit  E Brokerhouse.com.  To your success!!

 Susan Flowers

Century 21 Town & Country

San Bernardino, CA 92407

I know I usually write preachy blogs but today it is different.

I am confounded that I cannot get more BPO work to do.  I notice companies like Clear Capital have their "designated agents"  ( you lucky one's!!!).  Another company denied me because they have another agent within a 30 mile radius in my office doing BPO's (E Mortgage Solutions).

I get most of my work through OLD REPUBLIC TITLE and I wish I had more from them .  They are good to work with...their reps will call you to check in, are adept at getting you more information about a property if you need it for the report, and I just really have to say great people.  Old Republic BPO's are like candy to me because I know I am doing important work that may lead to REO assignments.  While it is true I amy be up at 4 am finishing up one, I always get a sense of achievement after I complete one. The BPO AUTOMATION acceptor is a great tool in facilatating my success and despite the fact my computer is less than ideal for this memory hungry app, I manage to snag a few and Old Repubilc is okay with that although they have a search limit of 720 x per day.  There were a few days when it was just way too efficient!  Best $500 I ever spent!

Lately it has been kind of quiet...at least in my area.

I anticipate that it will change soon however because properties appear to be coming in 1st qtr 2011.  I have even heard that banks are not messing around with short sales and that if the homeowner is in trouble the free ride of 18 months will be over...short sale or else get forclosed on.  Trying a loan mod 2 or 3 x is not going to work if the income is not right.

In closing I hope somehow the folks at Old Republic see this as us as partners in the process.  Thanks for your supportive work and trying to understand why you get wacky comps on some of this wacky property that I have to try to evaluate.  It is nice when you can compare a normal house to another, but what happens when some wisecracker homeowner decides to build a castle in an area of smaller homes or the only 4 plex single level for sale in an area that  has only two story comps available... or how about the model home that was built as a single story in an area that they built very few and the other 95% of the tract is two story?  So much for similarity and yet these are examples of BPO's that I have encountered.  So far I have not encountered a threatening homeowner, although they sometimes wonder why is this man photographing my home?  I wish the lenders would advise the homeowner of that happening.  I don't like having to sneak up on someone!  I sometimes feel like I am on a CIA mission...fast in...fast out!

Good night everyone!  Share your exploits!

Did anyone hear of this program 3648.  You pay now $99.00 up front, $299 a month and when the short sale closes you get the buyer to pay 1% if not, you pay the company that amount.  They guarantee you 150 leads per territory.  There are so many scams and I want to know if anyone used this.  Thanks for your help.

Donna

I was just called by someone from this company.  They are stating if I pay them 295.00 I will have 3 training sessions and I will get all the buyer leads from HUD in my area.  195/month after if I want to continue to get the leads.

They state they attract local buyers

They connect the buyers with an exclusive agent.

I will be able to do BPO's and if they are done well I will start getting listings within 3 weeks.

Has anyone been contacted with this?

Mortgage Bankers Association for the week of 12/8/2010

Market Composite Index:(loan application volume) decreased 0.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 22.8 percent compared with the previous week, which included the Thanksgiving Holiday

Refinance Index: decreased 1.4 percent from the previous week. This is the fourth weekly decrease for the Refinance Index which reached its lowest level since June 2010

Purchase Index: increased 1.8 percent from one week earlier. This is the third weekly increase for the Purchase Index which reached its highest level since early May 2010. The unadjusted Purchase Index increased 21.3 percent compared with the previous week and was 12.0 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: increased to 75.2 percent of total applications from 74.9 percent the previous week

Arm Share: decreased to 5.6 percent from 5.7 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org) The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 9.13 percent of all loans outstanding as of the end of the third quarter of 2010, a decrease of 72 basis points from the second quarter of 2010, and a decrease of 51 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The percentage of loans on which foreclosure actions were started during the third quarter was 1.34 percent, up 23 basis points from last quarter and down eight basis points from one year ago. The percentage of loans in the foreclosure process at the end of the third quarter was 4.39 percent, down 18 basis points from the second quarter of 2010 and down eight basis points from one year ago. The seriously delinquent rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 8.70 percent, a decrease of 41 basis points from last quarter, and a decrease of 15 basis points from the third quarter of last year. We expect that mortgage originations will decrease to $1.4 trillion in 2010 from a downwardly revised $2.0 trillion in 2009, previously estimated at $2.1 trillion. Total originations will then fall to $996 billion in 2011, the lowest level of originations since 1997. Purchase activity in 2010 will see a significant drop from 2009, although it was given a brief boost in the spring by the tax credit program, but start to recover in 2011. Refinance activity is currently being buoyed by mortgage rates that remain close to historical lows, but will fall in 2011 and 2012 as rates start to increase. Purchase originations will fall to $480 billion from $665 billion in 2009 and refinance originations will decrease to about $921 billion in 2010 from $1.3 trillion in 2009. We expect that the refinance share of originations should fall from 66 percent in 2010 to 37 percent in 2011, and then 26 percent in 2012.

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30-year fixed-rate mortgage: Averaged 4.61 percent with an average 0.7 point for the week ending December 9, 2010, up from last week when it averaged 4.46 percent. Last year at this time, the 30-year FRM averaged 4.81 percent.

The 15-year fixed-rate mortgage: Averaged 3.96 percent with an average 0.7 point, up from last week when it averaged 3.81 percent. A year ago at this time, the 15-year FRM averaged 4.32 percent.

Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 3.60 percent this week, with an average 0.6 point, up from last week when it averaged 3.49 percent. A year ago, the 5-year ARM averaged 4.26 percent.

One-year Treasury-indexed ARMs: Averaged 3.27 percent this week with an average 0.6 point, up from last week when it averaged 3.25 percent. At this time last year, the 1-year ARM averaged 4.24 percent.

Freddie Sayz Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac. After Europe made strides in its debt situation, investors left the security of U.S. Treasury debt causing bond yields to rise and mortgage rates along with them. Interest rates for 30 year fixed mortgages are now almost a half percentage point higher than the record low set in mid November, which for a $200,000 conventional loan amounts to $50 more in monthly payments. Housing demand appears to be picking up recently. Existing pending sales jumped 10.4 percent in October to the strongest pace since April, according to the National Association of Realtors. More recently, mortgage applications for home purchases rose for the three consecutive weeks ending on December 3rd, representing a 17.7 percent increase and the strongest pace since the week of May 7th, based on figures released by the Mortgage Bankers Association Maximizing The Rent

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Wow I am very impressed with

the passion others in this forum

express.

We have at our finger tips the

power to embrace and express

our passions like never before

in the history of the universe.

I (for one) intend to use this power

to the best interest of all concerned.

To enable and empower every life

I touch with the realization that we

all have a voice and deserve to be

heard.