Blog

All Posts (2129)

Sort by

BOFA HAFA WEBINAR- JULY 28, 2010

Posted by Rudy Romo on July 31, 2010 at 5:32am

Here are the points covered by BofA Representatiives during the July 28th, 2010 Webinar::

  • For the most part HAFA Short Sales require same type of documentation: Hardship Letter, Financials, Last 2 Years of Tax Returns, Last 2 Months Bank Statements, Last 2 Check Stubs etc.
  • 2nd & 3rd lien pay-offs are limited to $6,000 or 6% of unpaid balance.
  • Under the HAFA program, homeowners receive $3,000 for relocation expenses at close of escrow. Each servicer receives $1,500 as an additional incentive.
  • HAFA is designed for homewoners who did not qualify under the HAMP (Loan Modification) Program.
  • Short Sales under HAFA eliminate the possibility of Deficiency Judgments (amount "forgiven" or not paid to lenders).
  • Home must be owner-occupied. BofA does offer other Short Sale programs for investors.
  • While a Standard Short Sale in progress can be converted to a HAFA Short Sale, when possible it is recommended that the HAFA Short Sale be approved in advance by the bank.
  • The homewoner will select the Short Sale Broker/Agent, not the bank.
  • BofA HAFA Short Sales are now being initiated/tracked in the Equator website. This change has significantly improved agent/negotiator communication & has made process faster & more transparent.
  • Under HAFA, the initial listing period will be 120 days. If the home does not sell, an extension could be granted or a Deed in Lieu would be considered by the lender.
  • Under the HAFA guiduelines, after a Short Sale Offer is received by the bank, the goal is to provide an answer in 10 days or less.

For more information on the HAFA program, visit http://makinghomeaffordable.gov/hafa.html

You can also e-mail me your questions @ reoprorealty@gmail.com

Read more…

Real Estate Markets: Whats The Catalyst

Posted by Howard Bell on July 28, 2010 at 4:10pm
The number of homeowners missing their first payment on their mortgage declined from May to June and number of loans in foreclosure was flat at nearly 2 million. Delinquencies and Foreclosures remain stable but elevated with two loans deteriorating for every one that has improved. see chart here

So Whats The Catalyst
It's all about jobs and income growth and until that happens there's nothing that's going to push sales. As sales have slowed, the supply of unsold homes on the market has risen 2.5 percent to nearly 4 million. That's a nearly nine-month supply at the current sales pace, the highest level since August. It compares with a healthy level of about six months.

Sales are likely to keep falling for three to four months, said Lawrence Yun, the Realtors' chief economist. That would likely boost the supply of unsold homes to more than 10 months for the first time since the spring of 2009. And it could push down home prices.

NARs Future Forcast
Bread Crumbs
Through May of this year 495,000 net private sector jobs have been created; NARs forecast for employment growth is about 1 million additional net new jobs over the balance of the year and another 2 million in 2011. If jobs come back as expected, the pace of home sales should pick up later this year and reach a sustainable level of activity given very favorable affordability conditions

Rae Rosen, a regional economist at the Federal Reserve Bank of New York said Wall Street typically hires in anticipation of the recovery, and there is a sense that the economy has bottomed out and is slowly improving

Related Articles
Strategic Defaults: A Strategic Option
Federal HomeBuyers Tax Credit Extension
The Property Management Contract - Taking it Apart
Read more…

****ResNet Registration Inquiry

Posted by John Taylor MBA,CSP,HRC on July 24, 2010 at 11:52am

I am in the process of registering for ResNet and I have some reservations about it. Can someone answer the following questions for me?

1. There are two fee to pay for enrolling, the first one is 250.00 for listing and the second one is for 450.00

AMP application. Which one should I register for and why?

2. Have you received any listing from the ResNet application, if so how many and from what lender?

3. Have you received any BPO work from this application, if so what company uses this the most

when sending BPO work to agents?

I really appreciate anyone being receptive to my questions.

Thank You

Read more…

REO TEAMS

Posted by Jose Rivas (DGRA) CDPE, SFR on July 22, 2010 at 4:40am

I know most of us have a team or at least 1 assistant to help us the business, the way I look at the team, and this is just my opinion I might be totally wrong, is like a business, I have a group of professionals that I trust and that are very good at what they do. my model is simple I have a transaction coordinators/super woman, a book keeper, a media spcialist, a buyers/field agent and I over see and pick up the slack where and when necessary.

I know the model for some agents is to hire people to do all the work while they go out and visit their clients to get more business, and some of those super REO agents don't even know the listings they have, never seen them, have the wrong information on MLS, and sometimes even the wrong pictures, grass is usually high, and the new trend is that some agents are not even putting signs or lock boxes on their properties, I guess they have more listings than signs.

I am curious how our clients look at our teams, what is the ideal team, and actually I wonder if our clients really care if we have a team or not. Here is an ad that I saw online, I would like to know your thoughts on this:

HELP WANTED!! Need sharp individual to manage REO listings-lots of them. Must be licensed, experienced and have a full time plus attitude. You will be paid a % of each commission-CURRENTLY WE HAVE 288 REOs.- Also need a salaried person to assist said agent above

Read more…

Wish I could find out which banks use the portals and required classes I already have. Tired of shelling out more money for training.

Posted by Andrea Cruz on July 20, 2010 at 7:22am
Am I the only one that thinks It would be really helpful if we had a list of servicers and next to their name would be what portals or required classes they require for membership so that we could apply to those that we already have the requirements for instead of having to pay more annual fees for new portals and required classes everytime we apply to a new REO outsourcer or bank. If this type of list exists somewhere please let me know. Im in desperate need of it.
Read more…

Attn: REO Brokers - Check out Women in Default Services!

Posted by Julie Baldino on July 18, 2010 at 1:30pm

I just attended the WinDS conference in Las Vegas last week... what an event! This group was founded by Marla Webb, Shelley Kaye, Arna Friedman, and Shelia Blockson. The first day was packed with Keynote speakers, forming of committees, and networking. The second day we joined with the Asian Real Estate Association of America, conducted a question/answer session with an asset manager panel, and ended the day with a charity poker tournament at the Hard Rock Hotel. WinDS conference

There are several reasons to become a member of WinDS:

  • Get noticed by asset managers
  • Make connections with other REO professionals
  • Learn from the pro's
  • Increase your knowledge of the business
  • Be available to service providers

WinDS

I would encourage everyone to check out this powerhouse group of professionals. Learn more about WinDS, or to join this dynamic force in the default industry, please click here! Men are always welcome as members .

If you end up joining, please mention my name!

Read more…

Mortgage Bankers Weekly Update: Mortgage Refinance Applications Increase

Posted by Howard Bell on July 18, 2010 at 12:08pm
Mortgage Bankers Association for the week of 07/07/2010

Market Composite Index: (loan application volume) increased 6.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 6.5 percent compared with the previous week.

Refinance Index: increased 9.2 percent from the previous week and is the highest Refinance Index observed in the survey since the week ending May 15, 2009

Purchase Index: has decreased eight of the last nine weeks

Refinance Share of Mortgage Activity: increased to 78.7 percent of total applications from 76.8 percent the previous week, which is the highest refinance share observed in the survey since April 2009.

Arm Share: increased to 5.4 percent from 4.7 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

Mortgage rates remained near record lows last week, as incoming data on the job and housing markets were weaker than anticipated. As more homeowners locked in to these low rates, the level of refinance applications increased to a new 13-month high, said Michael Fratantoni, MBAs Vice President of Research and Economics. For the month of June, purchase applications declined almost 15% relative to the prior month, and were down more than 30% compared to April, the last month in which buyers were eligible for the tax credit.

We predict that mortgage originations will fall to $1.4 trillion in 2010 from an estimated $2.1 trillion in 2009. Purchase originations will fall slightly to $725 billion, as home prices continue to fall and the effect from the homebuyer tax credits wane. Refinance originations will fall to $717 billion in 2010 from $1.4 trillion in 2009, but we continue to mark up our refinance origination forecast given the sharp drop in mortgage rates.

Related Articles
FHAFinancing Now Available For REO
StrategicDefaults: A strategic Option
ProbateFor Property: How To Avoid It
Read more…

Freddie Mac Weekly Mortgage Update: Mortgage Drops Slightly to Create Another New Low

Posted by Howard Bell on July 18, 2010 at 12:07pm


30-year fixed-rate mortgage: Averaged 4.57 percent with an average 0.7 point for the week ending July 8, 2010, down from last week when it averaged 4.58 percent. Last year at this time, the 30-year FRM averaged 5.20 percent. This rate is yet another all-time low in Freddie Mac’s 39-year survey.

The 15-year fixed-rate mortgage: Averaged 4.07 percent with an average 0.7 point , up from last week when it averaged 4.04 percent. A year ago at this time, the 15-year FRM averaged 4.69 percent.

Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 3.75 percent this week, with an average 0.7 point, down from last week when it averaged 3.79 percent. A year ago, the 5-year ARM averaged 4.82 percent. This rate is also an all-time low since Freddie Mac began tracking it in 2005.

One-year Treasury-indexed ARMs: Averaged 3.75 percent this week with an average 0.7 point, down from last week when it averaged 3.80 percent. At this time last year, the 1-year ARM averaged 4.82 percent.

Freddie Sayz

With mortgage rates falling to historic lows, refinance activity has been strong over the past three months, said Frank Nothaft, Freddie Mac vice president and chief economist. “The Bureau of Economic Analysis reported that the effective mortgage rate of all loans outstanding was just below six percent in the first quarter of 2010, the lowest since the series began in 1977. Since the start of the second quarter, two out of three mortgage applications on average were for refinancing, according the Mortgage Bankers Association .

Household balance sheets also improved in other ways over the first three months of the year. The Federal Reserve reported household net worth rose by almost $1.1 trillion in the first quarter of 2010. The share of credit card loans that were 30-days or more past due fell to the lowest since first quarter of 2002, according to the American Bankers Association . Finally, the aggregate household debt burdens were at a level not seen since the third quarter of 2000.

Related Articles

Reverse Mortages Can Help You Buy A New Home

Maximizing The Rent

How to Rent Your Property Faster


Read more…

DO YOU REALLY UNDERSTAND THE SHORT SALE PROCESS

Posted by Cindy Billman, SRES ®, SFR®, CDPE on July 18, 2010 at 10:04am
First, everyone needs to take a deep breath and quit slamming the banks. Here is the short sale process. The short sale package once received by fax or email is given to a Set Up person, this person then reviews to make sure all documents required are there, this can take 2 to 7 days (depending on the volume), if they have to obtain missing data, this delays the S/Sale getting to the hands of the negotiator. If the property has a scheduled foreclosure sale date within 30 days, it is normally given a Priority Status. Once the negotiator receives the file, he/she determines what type of loan, FHA/VA, Conv, etc. They then review the hardship, financials, etc. If it has MI, information must be sent to the MI company for approval, this can take up to 6 weeks. And the MI Company will order their own interior BPO or driveby. The negotiator has a "worksheet" to determine the cost to foreclosure vs the cost of a short sale. Then, is a short sale warranted? The negotiator will order an interior BPO, another 7 to 10 days. If the loan is being serviced for another entity (i.e. Bank A is the servicer for Bank B), the investor guidelines are reviewed to determine if the short sale is within Bank A's authority to approve based on their servicing contract with Bank B. If it is not, then the short sale must be sent to the investors (Bank B) for approval (3 to 6 weeks). Now, if it has a 2nd lien, you are going through the same process again. Find out from the 1st lienholder how much they are willing to pay the 2nd, then call the 2nd lienholder and ask how much they want & what the 1st is willing to pay. The 2nd lienholder normally will not send out an approval letter until they receive a copy of the 1st lienholder's approval letter. Once approval is given from the investors and the MI company, the final "worksheet" along with the file is sent to the Loss Mit Manager for review and approval. If the loss is greater than the manager can approve then it goes up the chain of command. Remember, the greater the loss, the more signatures are needed to approve. (ie. Unpaid principal balance $250k, sale price is $125k- guess what, this short sale is going up the chain of command for approval because it is a 50% loss!) Now, back to the negotiator, who then sends the approval letter and the realtor advises him that the buyer got tired of waiting and the deal is dead (happens 70% of the time)
Here are some tips that I hope will help - Before you ever take a short sale listing get the HO to sign the Third Party Authorization form (most banks have their forms online, if not use a generic or call to see if they have the forms). Call the Lender and get detailed info on the loan, what is the UPB, does it have MI, is the loss greater than 80% of UPB, is it being serviced by Bank A or does Bank A own the paper? Is the HO even qualified for a short sale.
Now back to the negotiator, if the short sale is only in pre-foreclosure, the negotiator will treat it as a next in line. For those of who you are not aware, today's negotiators probably have at least 250 short sale packages on their desk at all times and will close approx 70 or more deals a month per negotiator. And if the bank is not contracted with Fannie/Freddie under the HAFA program, they do not have to follow the HAFA rules. Another thing to find out up front, is the Lender part of the HAFA program.
I recommend that every realtor, contact a Lender and ask to visit their Loss Mitigation Dept for an overview - most Lenders will allow a short visit. Once you understand the "other" side, then you will understand the Short Sale process. Patience and Good Luck!

Read more…

Do You Want to Buy a New Car?

Posted by Marcy Moyer on July 16, 2010 at 1:30pm

OR: What Hurts More, A Short Sale or One Where There's Still Equity But You Have Lost A Lot
 
This morning my husband opened up an envelope with information about his stock options. He looked at me and said, “Do you want to buy a new car?”
 
My answer was of “Of course not.” He then explained we'd just lost $50,000 in value from his stock options.
 
My response? “Don’t be so greedy.” 
 
We are both working, our mortgages are almost paid off on the house and rental properties, and the stock options are like dessert, nice but not essential. However, it was painful to him to lose that much money on paper.
 
It made me think of my latest clients.  Some have lost all equity and if they have to sell it will be a short sale. By the time they get to me it is gone, and they do not seem to be concerned about the price as much as the process.  Others who are losing equity when they sell seem to fall into 2 categories: those who are grateful to be able to sell and those who are fighting for every penny and do not seem to see the value in taking an offer to make a sale if it means losing a little more money.
 
If you are a buyer then your life will be much easier if you can find one of the former sellers. If you are working with a seller who is emotionally invested in every penny they are losing it will be a much more difficult sale.
 
If you are a seller it is important to clearly understand your goals when putting a home on the market. If you only want to sell at your price, then if your price is market value, you may get it. But if your price is above market, it won’t sell. Period. 
 
The most difficult part once you understand your financial choices is overcoming the emotional ties to a particular number.  If you want 1.5 million and you only get 1.4 million and life can go on, can you let go of your emotional attachment to to 1.5? If not, this may not be the best time for you to sell.
 
It is no different if you want 400K and you can only get 380K.  If your life can go on with a lower price and you need to sell, you may have to eat the emotions.  If you are just testing the market, don’t bother. In this environment you will fail. If you focus on your need and not your want you will get to your goal of selling a house much quicker and easier.
 
Marcy Moyer
Keller Williams
650-619-9285
Read more…

Did You feel It?

Posted by John Accornero on July 14, 2010 at 7:30am

There were quakes the last few days! Although I live in earthquake country (California), there have been quaking things this week. I should say something is happening in defaults and its registering in BPO's. Providers that I never get business from are suddenly providing requests, although I miss them because my blackberry email is slow.

This week I received 9 requests from one servicer through TAZA systems...and I had just considered cancelling my membership because I did not get anything...by the time I logged back in on a standard computer...the requests were taken. I got a request from Asset Value Partners yesterday and although it was 70 miles away in Lancaster, it was something that too was taken. Today I got a request from M2M about something in San Clemente and that too was taken.

I actually manged to get one form Old Republic.

Another thing I have noticed that they are tight generally as far as turn around times are 24-48 hrs...not much time to adjust if you have a busy schedule!

So to ask a rhetorical question... Is this just a hiccup? or is the "Big One" coming...the much anticipated REO release that has plagued us agents most of the year?

I have also noticed that different bpo vendors use different means...

Some just plain broadcast them out to everyone. ( Old Republic, Asset Valuation Partners)

Others use a tiered system...they give it to a preferred agent with a 15 min-4 hr dead time and then it gets released again.( Clear Capital, BPO Valuations Partners, Treo Reo)

Time will only tell...it will be exciting to see also the buyer ordered BPO's from Realty Pilot. I hope they come soon.

Read more…

Going back into doing what I love

Posted by Kelli Owens on July 14, 2010 at 3:46am

I am excited to be back with Fidelity National Title and working with you on future deals.

All title companies offer the same product, so why would you choose one over the other? Why would you choose me over the office around the corner from you? The answer is simple, customer care and knowledge. You want to insure that your client has the best person holding their hand during the closing process. Making it fun, exciting and simple to understand what they are signing, why they had to jump through a few hoops to get to my table, and walk out with confidence, feeling excited about this next phase in their life.

I have 13 years experience in the real estate industry. Started off in title with Alamo / Fidelity National Title 1997 as an escrow assistant for a builder account and quickly became an escrow officer in 1999 for a company in Pearland, Texas. In 2003 I determined to learn more, so I became a loan officer. When I was offered a position with a large sub-prime lender as closing manager in 2004, I took it. During that time I dedicated myself to learning everything that I could about the closing process from the lenders side, revamping the existing closing to into a team dedicated to quality and customer care, all calls returned within 1 hour and emails returned within 30 minutes. Our department went from worst to first in the office. After, approximately 8 months I was promoted to Operations Manager. As Operations Manager my responsibilities included everything, from Data entry, underwriting, processing to closing and post closing. Again stressing the need to insure quality and customer care remained a number one priority.

With my work experience in both the Title and Lending industry I bring a vast knowledge to the table. I know and understand the reason behind the lender requiring certain items and can assist the clients by helping to insure they are comfortable with everything that is going on before, during and after the closing takes place.

My promise to you as a customer care specialist is to be available to you, answer any questions, concerns you may have. I am a firm believer on being proactive. Try to answer the question before it is asked and provide the documents lenders need as soon as they are available. I will close your client at your office or their home, if they are unable to get to the Galleria. I return all voicemails within one hour and emails within 30 minutes. If I am in a closing I will return your call or email as soon as I get out of the closing. I am available to my business partners after hours via email and cell phone. Please see my contact information below. This is a business partnership and is based on dignity and respect.

Read more…

REO & Short Sale Mastermind at KW Family Reunion

Posted by Joshua Jarvis on July 12, 2010 at 2:39pm
What would you pay to spend 2 days with Gary Keller? If you close 2 Million a year, you can go for FREE, plane ticket, hotel all covered.

Here's the Family Reunion content just for short sale and REO agents where one agent says that each REO listing costs him $1,000 per.

Family Reunion is targeted at newer agents, while Mega Agent Camp (the offer) is targeted for those at the very top of their game.

Contact me to get this great offer.

Or

Just enjoy the content!
http://kwconnect.kw.com/connect/user/share.jsp?p=2481&sh=14015
Read more…

A Better Way to Do a Short Sale

Posted by Marcy Moyer on July 11, 2010 at 1:30pm
In the past few years short sales have been long, frustrating, and undependable. The sellers had to prove they were desperate and often had to stop making payments in order to qualify for a short sale. The listing agent had to spend hours trying to figure out who was able to make the decision and whether or not the documents were even received. They buyer’s agent had to wait endlessly for an answer while his or her buyer threatened every day to bail. The closing statistics for short sales have been estimated at 10-30%. Many people felt why bother?
 
So why should you bother? For some reason banks are getting on board with the idea that allowing a seller to do a short sale is a better deal for them than foreclosure. In general banks get 45 cents on the dollar for a foreclosed home and 75 cents on the dollar for a short sale. It has taken a long time for the banks to get on board with short sale approvals, but short sales are now getting approved and some banks have started trying to make the process more efficient.
 
Bank of America, who has taken over Countrywide, is now using a platform called REOtrans for their short sales. This platform started as a method for asset managers to process bank owned properties with realtors and is a very effective method for all parties, as they can see in real time where the file is and what else needs to be done. As anyone knows who has dealt with a Bank of America or Countrywide short sale, it can take a month after an agent faxes the short sale package to the bank for the bank to upload it onto their system. Now it is uploaded directly on the site and everyone knows it is there. Everyone will always know where they are in the process so no more allocating 3 hours a week for follow up per file.
 
 
Wachovia wins the prize for the best short sale system. Twenty five percent of Wachovia loans are 60 days or more past due, so they have decided to encourage more short sales. They have a system that will get the sale approved and closed in 45 days or less, and do not care if the seller has hardship, or just made the decision that they would rather give up a home than pay for a home for 10-20 years before they are no longer underwater. Underwater means that more is owned on the home than the home is worth. Some estimates put the number of underwater homes in this country as high as 50%. Given those stats Wachovia has made a decision that if someone wants to sell short they will facilitate it. This is not to say they will just give a home away, but if a home has $700,000 of loans on it, and it is now worth $500,000, Wachovia will let someone buy it for close to $500,000 and forgive the other $200,000 debt, and do it in a reasonable amount of time. Plus, they will even give the seller up to $5000 for moving expenses.
 
Wachovia bought World Savings so this applies to World Savings loans as well. Wachovia was acquired by Wells Fargo but as of now Wells is not doing the same thing with short sales. Hopefully this program with Wachovia will work well and spread to not only Wells Fargo, but to other banks as well.
 
If you have any questions about short sales, or other real estate related questions please feel free to contact me.
 
Marcy Moyer
Intero Real Estate Services
650-619-9285
D.R.E. 01191194
Read more…

The Facts About Palo Alto Short Sales and Foreclosures

Posted by Marcy Moyer on July 11, 2010 at 1:30pm
foreclosure2.jpg
There's a lot of chatter on real estate blogs about the steep increase in foreclosures and short sales in Palo Alto. Unfortunately many sites post stats from a company called Realty Trac which tracts everything from a Notice of Default through a listed bank owned property. Many things can happen before a home with a Notice of Default actually gets to be sold by the bank, but unless you read the fine print carefully it is easy to confuse a house that is behind a few months in payments with an actual bank owned property on the market for sale.
 
Most bank owned homes as well as short sales (where the seller owes more than the home is worth and the lender/lenders have agreed to accept less than the amount of the mortgage to release the debt) are sold through the MLS. So to see how many of these distressed sales have hit the market in the last year I went to the MLS and looked.
 
Here is what I found for single family homes:
 
Bank owned properties sold in last year: 4
Current Pending sales of Bank owned: 2
Short Sales sold in last year: 3
Current Pending Short Sales 1
Current Active Short Sales 1
 
For condo/townhomes the numbers are:
Bank owned sold: 2
Bank owned pending sales: 1
Short Sales sold: 3
Short sales pending: 4
Short sales active: 2
 
As you can see this is not a huge number, especially since the total number of homes sold in Palo Alto in the last year is 369, making distressed sales account for less than 2%. There have been 97 condo/townhomes sold in the same period making the distressed sales about 5% of that market. These numbers are not enough to have any impact on the price of homes in Palo Alto at this point. The percentage would have to increase several fold before Palo Alto prices are affected by distressed properties. I am not saying that this is or is not going to happen, that is a discussion for a future post, just that it has not happened yet.
 
Marcy Moyer
Keller Williams Realty
D.R.E. 01191194
*Photo Credit: found this hilarious picture at the website for The Sacramento Bee.
Read more…

A Better Way to Do a Short Sale

Posted by Marcy Moyer on July 11, 2010 at 1:30pm
In the past few years short sales have been long, frustrating, and undependable. The sellers had to prove they were desperate and often had to stop making payments in order to qualify for a short sale. The listing agent had to spend hours trying to figure out who was able to make the decision and whether or not the documents were even received. They buyer’s agent had to wait endlessly for an answer while his or her buyer threatened every day to bail. The closing statistics for short sales have been estimated at 10-30%. Many people felt why bother?
 
So why should you bother? For some reason banks are getting on board with the idea that allowing a seller to do a short sale is a better deal for them than foreclosure. In general banks get 45 cents on the dollar for a foreclosed home and 75 cents on the dollar for a short sale. It has taken a long time for the banks to get on board with short sale approvals, but short sales are now getting approved and some banks have started trying to make the process more efficient.
 
Bank of America, who has taken over Countrywide, is now using a platform called REOtrans for their short sales. This platform started as a method for asset managers to process bank owned properties with realtors and is a very effective method for all parties, as they can see in real time where the file is and what else needs to be done. As anyone knows who has dealt with a Bank of America or Countrywide short sale, it can take a month after an agent faxes the short sale package to the bank for the bank to upload it onto their system. Now it is uploaded directly on the site and everyone knows it is there. Everyone will always know where they are in the process so no more allocating 3 hours a week for follow up per file.
 
 
Wachovia wins the prize for the best short sale system. Twenty five percent of Wachovia loans are 60 days or more past due, so they have decided to encourage more short sales. They have a system that will get the sale approved and closed in 45 days or less, and do not care if the seller has hardship, or just made the decision that they would rather give up a home than pay for a home for 10-20 years before they are no longer underwater. Underwater means that more is owned on the home than the home is worth. Some estimates put the number of underwater homes in this country as high as 50%. Given those stats Wachovia has made a decision that if someone wants to sell short they will facilitate it. This is not to say they will just give a home away, but if a home has $700,000 of loans on it, and it is now worth $500,000, Wachovia will let someone buy it for close to $500,000 and forgive the other $200,000 debt, and do it in a reasonable amount of time. Plus, they will even give the seller up to $5000 for moving expenses.
 
Wachovia bought World Savings so this applies to World Savings loans as well. Wachovia was acquired by Wells Fargo but as of now Wells is not doing the same thing with short sales. Hopefully this program with Wachovia will work well and spread to not only Wells Fargo, but to other banks as well.
 
If you have any questions about short sales, or other real estate related questions please feel free to contact me.
 
Marcy Moyer
Intero Real Estate Services
650-619-9285
D.R.E. 01191194
Read more…

A Better Way to Do a Short Sale

Posted by Marcy Moyer on July 11, 2010 at 1:30pm
In the past few years short sales have been long, frustrating, and undependable. The sellers had to prove they were desperate and often had to stop making payments in order to qualify for a short sale. The listing agent had to spend hours trying to figure out who was able to make the decision and whether or not the documents were even received. They buyer’s agent had to wait endlessly for an answer while his or her buyer threatened every day to bail. The closing statistics for short sales have been estimated at 10-30%. Many people felt why bother?
 
So why should you bother? For some reason banks are getting on board with the idea that allowing a seller to do a short sale is a better deal for them than foreclosure. In general banks get 45 cents on the dollar for a foreclosed home and 75 cents on the dollar for a short sale. It has taken a long time for the banks to get on board with short sale approvals, but short sales are now getting approved and some banks have started trying to make the process more efficient.
 
Bank of America, who has taken over Countrywide, is now using a platform called REOtrans for their short sales. This platform started as a method for asset managers to process bank owned properties with realtors and is a very effective method for all parties, as they can see in real time where the file is and what else needs to be done. As anyone knows who has dealt with a Bank of America or Countrywide short sale, it can take a month after an agent faxes the short sale package to the bank for the bank to upload it onto their system. Now it is uploaded directly on the site and everyone knows it is there. Everyone will always know where they are in the process so no more allocating 3 hours a week for follow up per file.
 
 
Wachovia wins the prize for the best short sale system. Twenty five percent of Wachovia loans are 60 days or more past due, so they have decided to encourage more short sales. They have a system that will get the sale approved and closed in 45 days or less, and do not care if the seller has hardship, or just made the decision that they would rather give up a home than pay for a home for 10-20 years before they are no longer underwater. Underwater means that more is owned on the home than the home is worth. Some estimates put the number of underwater homes in this country as high as 50%. Given those stats Wachovia has made a decision that if someone wants to sell short they will facilitate it. This is not to say they will just give a home away, but if a home has $700,000 of loans on it, and it is now worth $500,000, Wachovia will let someone buy it for close to $500,000 and forgive the other $200,000 debt, and do it in a reasonable amount of time. Plus, they will even give the seller up to $5000 for moving expenses.
 
Wachovia bought World Savings so this applies to World Savings loans as well. Wachovia was acquired by Wells Fargo but as of now Wells is not doing the same thing with short sales. Hopefully this program with Wachovia will work well and spread to not only Wells Fargo, but to other banks as well.
 
If you have any questions about short sales, or other real estate related questions please feel free to contact me.
 
Marcy Moyer
Intero Real Estate Services
650-619-9285
D.R.E. 01191194
Read more…

Mortgage Bankers Weekly Update: Mortgage Refinance Applications Increase

Posted by Howard Bell on July 11, 2010 at 11:00am
Mortgage Bankers Association for the week of 07/07/2010

Market Composite Index: (loan application volume) increased 6.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 6.5 percent compared with the previous week.

Refinance Index: increased 9.2 percent from the previous week and is the highest Refinance Index observed in the survey since the week ending May 15, 2009

Purchase Index: has decreased eight of the last nine weeks

Refinance Share of Mortgage Activity: increased to 78.7 percent of total applications from 76.8 percent the previous week, which is the highest refinance share observed in the survey since April 2009.

Arm Share: increased to 5.4 percent from 4.7 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

Mortgage rates remained near record lows last week, as incoming data on the job and housing markets were weaker than anticipated. As more homeowners locked in to these low rates, the level of refinance applications increased to a new 13-month high, said Michael Fratantoni, MBA’s Vice President of Research and Economics. For the month of June, purchase applications declined almost 15% relative to the prior month, and were down more than 30% compared to April, the last month in which buyers were eligible for the tax credit.

We predict that mortgage originations will fall to $1.4 trillion in 2010 from an estimated $2.1 trillion in 2009. Purchase originations will fall slightly to $725 billion, as home prices continue to fall and the effect from the homebuyer tax credits wane. Refinance originations will fall to $717 billion in 2010 from $1.4 trillion in 2009, but we continue to mark up our refinance origination forecast given the sharp drop in mortgage rates.

Related Articles
FHAFinancing Now Available For REO
StrategicDefaults: A strategic Option
ProbateFor Property: How To Avoid It
Read more…

Freddie Mac Weekly Mortgage Update: Mortgage Drops Slightly to Create Another New Low

Posted by Howard Bell on July 11, 2010 at 10:59am
Mortgage Bankers Association for the week of 07/07/2010

Market Composite Index: (loan application volume) increased 6.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 6.5 percent compared with the previous week.

Refinance Index: increased 9.2 percent from the previous week and is the highest Refinance Index observed in the survey since the week ending May 15, 2009

Purchase Index: has decreased eight of the last nine weeks

Refinance Share of Mortgage Activity: increased to 78.7 percent of total applications from 76.8 percent the previous week, which is the highest refinance share observed in the survey since April 2009.

Arm Share: increased to 5.4 percent from 4.7 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

Mortgage rates remained near record lows last week, as incoming data on the job and housing markets were weaker than anticipated. As more homeowners locked in to these low rates, the level of refinance applications increased to a new 13-month high, said Michael Fratantoni, MBA’s Vice President of Research and Economics. For the month of June, purchase applications declined almost 15% relative to the prior month, and were down more than 30% compared to April, the last month in which buyers were eligible for the tax credit.

We predict that mortgage originations will fall to $1.4 trillion in 2010 from an estimated $2.1 trillion in 2009. Purchase originations will fall slightly to $725 billion, as home prices continue to fall and the effect from the homebuyer tax credits wane. Refinance originations will fall to $717 billion in 2010 from $1.4 trillion in 2009, but we continue to mark up our refinance origination forecast given the sharp drop in mortgage rates.

Related Articles
FHAFinancing Now Available For REO
StrategicDefaults: A strategic Option
ProbateFor Property: How To Avoid It
Read more…

2nd graders teaching me new online photo and video skills for real estate easy to post to YouTube Twitter and more!

Posted by Jessica Klein RDCPro on July 11, 2010 at 9:19am

OK, so I have been struggling with good formating for photo slide shows, mixed media, video to present my listings for sale in a variety of online applications, socail media and postings. I think this is a big thing for many Realtors right now.

I finally found a great little photo slide show editing tool, mixing in video is my next step, it also has GREEN SCREEN and mixed media applications. It is low cost and easy enough for 2nd graders to teach me all about it and show me how it is done. They made a cute sample slide show for me about fake homes for sale and even took one of my listing photos off my web site and used it in their sample.

Now, if I can figure out how to post on REOPRO .... and of course the best options are when I can post the slide shows, mixed meadia automatically in multiple great on line social media areas.

I go to classes, seminars, study online stuff for HOW TO. But the secound graders have really taught me something great!

Read more…
Liberty House Realty | Online Montessori Preschool | Digital Marketing Agency