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Market Composite Index: (loan application volume) increased 13.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 13.9 percent compared with the previous week.
Treasury rates fell last week causing a decline in mortgage rates. As a result, refinance applications picked up over the week, as some borrowers took advantage of this recent rate volatility to lock in a low fixed-rate loan said Michael Fratantoni, MBA Vice President of Research and Economics.

Refinance Index: increased 15.8 percent from the previous week and the seasonally adjusted Purchase Index increased 10.1 percent from one week earlier.

Purchase Index: increased 11.0 percent compared with the previous week and was 5.2 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: increased to 60.0 percent of total applications from 58.9 percent the previous week.

Arm Share: decreased to 6.0 percent from 6.3 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

Economic growth and a recovering job market are good news for housing, but we certainly have not seen any significant improvement in housing activity to date. Existing home sales declined in February, and new home sales actually reached a new record low that month. Additionally, the number of existing homes on the market increased, as sellers began to list their properties in anticipation of the spring. Rising inventories on top of weak demand continues to put pressure on prices, with most measures showing either declines or weak gains over the winter.

Fourth quarter real GDP growth was revised down a bit to a 5.6% annual rate, a revision too small to be significant. Data coming in during the past month suggest a real GDP growth rate of around 3% or a little less in the first quarter of 2010, well below the fourth quarter pace. The outlook for inflation remains unusually favorable. During the past year, both headline and core inflation rates have fallen.

The dramatic turnaround in the economy during the past year, from a 5.4% annual rate of decline in real GDP in the fourth quarter of 2009 to a 5.6% increase a year later, attests to the remarkable resiliency of the U.S. economy to withstand shocks.

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How to traverse the nightmare that is the Los Angeles Housing Department’s REAP Program

The other day a good friend of mine challenged me to write a journal. I have never been a person wholiked to write anything down, I figure, let’s just sit down and talk about it.Well after going through the process of pulling a few properties out of the LosAngeles City REAP Program, I decided that I would write about theexperience. Man oh man, what anexperience that was.

Let’s first discus what the REAP Program actually stands for. The REAP is a rent escrow account program that is administered by the Cityof Los Angeles Housing Department. Theonly way to even get put into the program is when your property, or theproperty you are representing, has had violations that were not taken care of. Once you have not complied with the demandsof the Housing Department (they do give you a chance) you are done. When theREAP Department starts collecting your rents and have placed a “cloud” on yourtitle, well now the real fun begins.

Where do I start? Let’s start with the day your nightmare began.

You wake up to a new REO listing, “YEAH”. It’s a multi-family dwelling located within Los Angeles City boundaries, “Oh no!” You check the Housing Department’s websiteand find out that the property has some issues and it is in the REAP Program.“Oh Boy! Now for the fun.” Oh, did Iforget to tell you that there is now a “Cloud” on the title, so forget abouttraditional financing options for your buyers. OK, now what do you tell theseller, (remember they have taken back the property and are now considered theowners, and guess what, they are responsible for the REAP and all of theproperties issues.) So you tell the Asset Manager the truth and they respond likeArnold from Different Strokes, “What you talkin’ bout Willis?” Thenthey snap back to reality, they either tell you to sell the property forcash. That’s so they don’t have to dealwith the title issues, but then you have to find an all cash buyer and/orsomeone who is going to deal with the REAP on their own (scary thought) or theyclear the title and get top dollar for the property.

So now let’s get the property out of the REAP Program and clear the title so you can sell your property. Now we have to deal with the Systematic Code Enforcement Program. Thisis pretty much where it all began for you. You have to get a copy of the previous violations and/or have theproperty re-inspected so that you can find out what the violations are. Thenyou fix the property and have it re-inspected by the Housing Inspector. Onceyou have cleared the Housing Inspector, you need to contact the OutreachContractor and have the property re-inspected by them. (Now understand thatmore than likely you have had a Building & Safety Inspection because youneed to get your permits signed off and you have had a Housing Department inspection,ok sorry I digressed for a moment, too many inspections). Ok the OutreachContractor has signed you off, now what? Make sure that all of the DWP bills on the property are paid, I mean allof them (and I don’t care who’s name they are in). The Housing Department alsohas an UMP Program (Utility Maintenance Program) that you must not be in; ifyou are then pay the bill. OK, now you have made sure that you don’t owe, DWPbut did you check to see if you owed the Housing Department any money? Well youneed to check that little bit of information. Ok, now we are cooking withgrease. You have paid the HousingDepartment bill and now they will clear you for removal from the REAP Program.Ok they refer the property to the City Council and recommend removal from theprogram. YEAH! well no , not yet. Oncethe property has gone through City Council and you have been cleared, you stillhave a few more steps to go. Now you have to wait, yes I said WAIT 30 daysuntil you can even ask the Housing Department if you owe them any moremoney. Yes, I said it; you may still owemore money. What you say, you just PAIDthe Housing Department. Well you will have to pay them again, yes again, tofinally remove your property from the REAP Program and remove the “Cloud” fromthe title. Once issued, this “Demand for Payment” is good for 30 days. You hadbetter get your loan funded within that 30 day window or pay the final demandamount, if you don’t, then there will be penalties and you will owe more money.But once paid, the Housing Department will remove the “Cloud” from the titleand you are REAP free. The moral of this story is if you own a multi-familydwelling within Los Angeles City Boundaries, “TAKE CARE OF YOUR PROPERTY,COMPLY WITH ANY AND ALL NOTICES FROM THE HOUSING DEPARTMENT AND KNOW THE RIGHTSOF A PROPERTY OWNER AND THE RIGHTS OF YOUR TENANTS.”

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Are You in REO Denial?

My last three blogs here and elsewhere were on how HOPE, HAMP, and HAFA would not stop the next wave of foreclosures in California. Most scoffed and told me to forget REO that Short Sale will be all the rage and there will be little to no foreclosure activity in the future. Well not so fast my friends. Todays Foreclosure report showed that California Foreclosure activity is up a whopping 92.3% YtoY from March of 2009. Even if half of those went to third parties, sold short, or were modified that will give us a 40-50% increase in Foreclosures in the next 12 months as it now takes an estimated 262 days from NOD to MLS. I for one will be working my lenders and vendors hard this summer. Make sure your resume, Errors & Omissions Insurance, RES.net, Equator, 5 Star, are up to date because there is going to be a need for QUALIFIED REO Agents for several years to come.
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Multi Family Outlook

The longer term outlook for apartments remains good.

In 2008 sales was down by more than 60% over 2007 peak with sales volume dropping by 77% over same period a year earlier. The big banks are beginning to loosen up and the insurance companies have become active lenders again, but at a fraction of the earlier activity. Investment homes constituted 17 percent of all home sales in 2009 compared to 21 percent in 2008.

The apartment sector is optimistic, partly because of capital provided by Fannie Mae and Freddie Mac. Its political. Congress has been concerned that multi family housing going into foreclosure makes victims of renters. They didnt borrow or speculate and yet they are losing their home. So ,Fannie Mae and Freddie Mac have been directed to keep the spigots open for multi family. Price Waterhouse Coopers annual survey points to investor expectations that rents will climb on average of 2.41% annually for the next eight years, in spite of the dismal vacancy rates we are seeing today.

What Drives Apartment Occupancy
Favorable Trends

Jobs: Full recovery of occupancy and rents requires job growth. Now that we are beginning to create jobs and consumer confidence is stronger we should see above average rent growth.

Sales Volume: This quarter saw a continued uptick in sales volume and equity financing, which
represent another step, albeit a small one, toward a more normal transactions market, after 2009 recorded the lowest number of transactions of the decade, said NMHC Chief Economist Mark Obrinsky. (Via NMHC web site)

Demographic: trends are favorable for the apartment market over the next decade. The number of renters has increased to one-third of all households. In 2008 renters accounted for 63% of all new households, echo boomers are expected to boost that number to 67 million new renters by 2015.

Retirees are moving into city complexes where everything is close by and more accessible coupled with low housing supply all point to increasing rent rates. The apartment industry maintains that multifamily delinquency and default rates for Fannie Mae and Freddie Mac remain under .05%.

REsourced from 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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Multi Family Outlook

The longer term outlook for apartments remains good.

In 2008 sales was down by more than 60% over 2007 peak with sales volume dropping by 77% over same period a year earlier. The big banks are beginning to loosen up and the insurance companies have become active lenders again, but at a fraction of the earlier activity. Investment homes constituted 17 percent of all home sales in 2009 compared to 21 percent in 2008.

The apartment sector is optimistic, partly because of capital provided by Fannie Mae and Freddie Mac. Its political. Congress has been concerned that multi family housing going into foreclosure makes victims of renters. They didnt borrow or speculate and yet they are losing their home. So ,Fannie Mae and Freddie Mac have been directed to keep the spigots open for multi family. Price Waterhouse Coopers annual survey points to investor expectations that rents will climb on average of 2.41% annually for the next eight years, in spite of the dismal vacancy rates we are seeing today.

What Drives Apartment Occupancy
Favorable Trends

Jobs: Full recovery of occupancy and rents requires job growth. Now that we are beginning to create jobs and consumer confidence is stronger we should see above average rent growth.

Sales Volume: This quarter saw a continued uptick in sales volume and equity financing, which
represent another step, albeit a small one, toward a more normal transactions market, after 2009 recorded the lowest number of transactions of the decade, said NMHC Chief Economist Mark Obrinsky. (Via NMHC web site)

Demographic: trends are favorable for the apartment market over the next decade. The number of renters has increased to one-third of all households. In 2008 renters accounted for 63% of all new households, echo boomers are expected to boost that number to 67 million new renters by 2015.

Retirees are moving into city complexes where everything is close by and more accessible coupled with low housing supply all point to increasing rent rates. The apartment industry maintains that multifamily delinquency and default rates for Fannie Mae and Freddie Mac remain under .05%.

REsourced from 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

Related Articles
NAR and The Commerce Dept Feb Figures
What Does the Stock Market Have to Say About Housing Multifamily
Apartments: Get Higher Rents and Lower Your Vacancy

Read more…

Freddie Mac Weekly Update: Rates Ease

Rates Ease a Bit This Week

30-year fixed-rate mortgage: Averaged 5.07 percent with an average 0.6 point for the week ending April 15, 2010, down from last week when it averaged 5.21 percent. Last year at this time, the 30-year FRM averaged 4.82 percent.

The 15-year fixed-rate mortgage: Averaged 4.40 percent with an average 0.7 point, down from last week when it averaged 4.52 percent. A year ago at this time, the 15-year FRM averaged 4.48 percent.

Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 4.08 percent this week, with an average 0.6 point, down from last week when it averaged 4.25 percent. A year ago, the 5-year ARM averaged 4.88 percent.

One-year Treasury-indexed ARMs: Averaged 4.13 percent this week with an average 0.5 point, down from last week when it averaged 4.14 percent. At this time last year, the 1-year ARM averaged 4.91 percent.

Freddie Sayz

After rising for four consecutive weeks, mortgage rates eased back to where they were two weeks ago and still remain historically low, said Frank Nothaft, Freddie Mac vice president and chief economist. The Fed indicated in its April 14th regional business survey that consumer prices generally remained level and producers had difficulty passing along increases in some raw materials.

This will likely keep inflation at bay as evidenced by the 1.1 percent growth in core consumer prices for the 12-months ending in March 2010, which was the lowest annual increase since January 2004. Low mortgage rates continue to help stabilize the housing market. The Fed noted that residential activity increased while home prices were stable across most of its 12 Districts over the six weeks prior to April 5th. In addition, credit standards remained generally unchanged across the nation, while credit quality was mixed according to the report

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Mortgage Bankers Weekly Update


Mortgage Bankers Association for the week of 4/14/2010

Market Composite Index: (loan application volume) decreased 9.6 percent on a seasonally adjusted basis from one week earlier. This is the third lowest Market Index recorded in the survey since the end of June 2009.

Refinance Index: decreased 9.0 percent from the previous week, marking the index’s fifth consecutive decline

Purchase Index: decreased 10.0 percent compared with the previous week and was 17.5 percent lower than the same week one year ago. The decline in purchase applications was driven by government purchase applications, which decreased 19.1 percent from last week, compared to a decrease of 2.0 percent in conventional purchase applications.

Refinance Share of Mortgage Activity: increased to 58.9 percent of total applications from 58.7 percent the previous week.
increased to 6.3 percent from 6.2 percent of total applications from the previous week.

Arm Share: increased to 6.2 percent from 5.2 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

Economic growth and a recovering job market are good news for housing, but we certainly have not seen any significant improvement in housing activity to date. Existing home sales declined in February, and new home sales actually reached a new record low that month. Additionally, the number of existing homes on the market increased, as sellers began to list their properties in anticipation of the spring. Rising inventories on top of weak demand continues to put pressure on prices, with most measures showing either declines or weak gains over the winter.

We predict that mortgage originations will fall by about 38 percent to $1.3 trillion in 2010 from an estimated $2.1 trillion in 2009. Purchase originations will fall by around 2 percent to $726 billion, as home prices stabilize, and home sales increase. Refinance originations will fall by about 126 percent to $604 billion in 2010 as mortgage rates are expected to rise through the year.

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FHA Financing Now Available For REO Properties

Commercial Property: Money Becoming Available

Good News! MBAA New Forebearance Program

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REO Agent's Prayer

The bible tells us to turn to the Lord in times of need, that He is the provider of everything. I hope I don't offend anyone here but the Holy Spirit moved me:

THE REO AGENT"S PRAYER

Lord, you are the provider of all things and all of my success belongs to you.

Please if it be by your will and not by mine that I am a succesful REO Agent.

Allow the asset managers to see my name and trust in my job performance . Give them the peace of mind that I will safely and ethically get their transaction completed in short order. May my knowlege of the art of real estate protect them with due diligence.

May , by your power, I never miss a deadline, get my work done on time, and find the maximum value for their properties. May I always communicate with them quickly when they need to know.

Protect me with your Holy Spirit when I have to go offer some money to a homeowner that they may vacate the premises without harm to anyone.

Move me to keep a good ledger of expenses and approved costs and keep me organized so as not to loose anything.

Remind me to willing pay the referral fees and allow me to network with the right people to help build the business that will help to build your Kingdom. remind me always to tithe you as what I earn is already yours.

Lord, your Son assured us that anything we ask ask in his Name.

Humbly, I present my prayer in the name of the Lord Jesus Christ,King of Endless Glory. Amen.

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Hamp and Hafa Programs-UPDATES NOW ADDED 4/30

Hamp and Hafa ProgramsI've reviewed much of the Hamp and Hafa Programs and honestly, it seems tough to use it if the homeowner has a 2nd lien(2nd Mtg) on the home, or has already moved out, or is unemployed.

These 3 very REAL reasons occur in a majority of the short sales I've witnessed or have been involved with. Nonetheless, I’ve posted this information because there are those that MAY benefit and I wouldn’t throw any program out the door without reviewing the specifics of your sellers NEEDS!!

Now, little about "Hamp", this program is for loan modifications and generally involves the maximum payment of 31% of the sellers total income before taxes to be paid towards your loan. Once these numbers are established, proof of ability must be supported and then there is a 3 month test period to see how able the owner is to pay, dosnt work if unemployed, and it dosnt work in many cases. But, again, I would’nt throw anything away without review against their particular needs.

If the Loan modification fails or if an application to skip the loan modification is requested and accepted, then you can move right into a Hafa short sale program.

HAFA:The Good:

1-Homeowners will be released of all responsibility with a satisfaction of lien from the lender.(This is excellent,(many short sales may still hold owners liable for the deficient amount that the lender lost)

2-There is a "pre-aproved" short sale Listing along with the Minimum sales value. (Saves time, easier for buyers to buy!!!-The pre-aprovals are done in 10 days-YAY

3-Homeowners are given $3000.00 towards relocation from the lender at closing.( An excellent aide to families moving to their new home)

4-If the homeowner had attempted a Hamp Modification, then all the same docs and info will be used, no repetitive docs.-( This saves time!)

HAFA: The Bad:

1-The property can't be sold to a relative, friend or anyone with a close relationship to the seller.Must be an ARMS LENGHTH transaction, therefor a 90 day period must occer before an investor may re-sell.

2- The buyer may not re-sell the property for less than 90 days after closing. Nor can they rent the home back to the previous owner.

3-The difference between the remaining amount of principal you owe and the amount they receive from the sale must be reported to the Internal Revenue Service (IRS) on Form 1099C, as debt forgiveness. In some cases, debt forgiveness could be taxed as income. The amount paid to you for moving expenses ($3000) may also be reported as income. It is suggested that they contact the IRS or their tax preparer to determine if you may have any tax liability.I understand the 1099 will be issued.

4-If you have a real estate license you can’t earn a commission by listing your own property

5- The seller must also be able to deliver marketable title free of any other Jr. liens. They will allow up to three percent (6%) of the unpaid principal balance of each subordinate lien, in order of priority, not to exceed $6,000 in aggregate for all subordinate liens, to be deducted from the sale proceeds to pay subordinate lien holders to release their liens. They require each subordinate lien holder to release you from personal liability for the loans in order for the sale to qualify for this program.

****If the Jr. Liens agree to the HAFA short sale, then they are required to release the sellers from any and all liability. These negotiations will probably be left up to US, the REALTORS. It may be difficult to do and many 2ndary lenders will not accept this, every case is different), most will laffffff

6-The seller must live "IN" and maintain the property, HOA dues and or maintenance fee's. The seller will, in most cases be making payments up to a total of 31% of his gross monthly income

In the end, these programs may help some people… but it’s going to take a savvy realtor to help make it happen!!

Regards!!-- HOPE THIS IS HELPFULL!!!!!

Rose Mencia, Broker

Sundance Realty South Florida, Inc., 1926 Hollywood Blvd. suite 212, Hollywood, Fl. 33020 cell: 786-208--6804

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This month only, California only, first time buyers can receive an$18,000 tax credit if they make an offer on a home and it is acceptedbefore April 30, 2010. The federal tax credit of $8,000 is set toexpire April 30, 2010. The California tax credit just began and will bein effect until July 31, 2011. So, for this month only, first timebuyers can benefit from an $18,000 combined credit.

I get asked bybuyers.."will they extend it?" The word I hear from D.C. is that theFeds are NOT going to offer the tax credit again because it didn'tencourage home buying by much.

In California, however it wasvery successful last year and funds alloted ran out quickly. It was sosuccessful that California is offering it again. For this small windowof opportunity, wouldn't it be great to take advantage of BOTH thesecredits, low interest rates, and low priced homes??

And, it's notjust for first time buyers. Current homeowners qualify for $16,500 incombined tax credits and they don't need to sell their current home!But for this month only.

The clock is ticking.....
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REOPRO Lucky 7 Party

I attended the Lucky 7 Party on Friday night in Dallas. What an excellent event!

It was fun of course. But the networking was phenominal. I met great realtors, escrow people, and asset people.

I realize there are a lot of things out there screaming for your Marketing / Education / Networking dollars. But this event was very good.

For those of you I met at the event, I look forward to seeing you again in the future...perhaps this week in Palm Desert?

For others that were unable to attend, I look forward to meeting you sometime.

Kudos to Jesse and all his helpers for such a great event, pulled off without a hitch.

Chris Butterfield

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Wednesday I arrived to my hotel, I was immediately on the war path. As I checked in, the first question I had for the front desk staff was, “Is Patrice Euell available, I need to speak with her.” Patrice is the hotel event coordinator and as someone who comes from the hospitality industry, I was going to make sure this event went off without a hitch.

The front desk staff jump into high gear and before I could shake a tail feather, Patrice was walking up the escalators smiling and greeting me with, “You must be Jesse, what a hot mess!”

Well, I must say, she hit the nail on the head….right?

I greeted her with a big ole Texas hug and said, “Show me the room, let’s get started”. She took me by the hand and off we went, down the escalators and on the left, 2 large double doors were open and before my eyes were, tables, chairs, dance floor and stacks of glasses all out being set up. I was pleased, everything was on task and appeared to be ahead of schedule. I confirmed my layout of the room and made some minor adjustments accordingly but, overall it appeared to be in control.

Friday rolls around and party time is less than 5 hours away. I start getting ready, dressing up in my monkey suit and looking as dapper as I ever, of course but, as uncomfortable as you can imagine. I don’t know about you but, I absolutely hate putting on a tie and jacket….I HATE IT! I don’t know that I have ever been comfortable in a jacket and tie but, that is besides the point.

5:30 in the evening and I am downstairs, ushering the hotel staff around, meeting the servers, talking with the final setup people, ensuring the DJ has power and is setting up, working with dock attendants making sure the poker tables have arrived, getting the greeting stations ready, making sure the food is quality, checking out the bars and making sure they are ready and it couldn’t have gone any more smoother. In fact, a couple of times I had to pinch myself not believing just how easily things were coming together.

About an hour before or so, my helpers started showing up. I had Randy, Randy and Jamie from Austin Broker, John Oliveri, Jim Godwin, Brandy (sorry, can’t remember your last name Brandy), Tracy Medina and Patty from; uh-oh, I forgot what company they were from but, I am sure they will read this and comment so, they can tell you in their reply later, who were all very helpful but, after about 30 minutes seeing I had it all under the control, they all disappeared on me and headed to the bar…..lol. It’s all good because, it was all under control.

So, the party starts and people start coming in, things are going great. We are collecting business cards, greeting people, saying hello, bringing them in, showing them around, music is bumping, the poker tables are packed, drinks are pouring, food is getting out……wow, it was amazing!

As I walked around, I asked people how they were doing, everyone seemed to be having a great time. I reminded people to network, drop some business cards, talk with people, establish relationships but, have a good time!

The best part of the entire event was, when people walked out and were saying their goodbyes, I asked them was it worth it and, I didn’t hear a single negative word! Later when I had a chance to look through all the business cards I saw companies like Fannie Mae, Saxon, Old Republic and so many more, I can’t go through them all here and now and, I realized that if someone walked out of this party and didn’t make a contact that could change their business, well……..that’s on them because I have the business cards of each person who attended and I can assure you………$100.00 a ticket was cheap!

After the party, I thought the evening was over but, some friends and REOPro members had alternative plans.

Apparently everyone was headed to a club called Kinky’s. Yeah, I know….the name is a bit of a turn off….or turn on, depending on your persuasion however, off to Kinky’s I went. Now, to protect the innocent, I won’t say who I was there with but, that isn’t important, what you need to know is this club lived up to its name. The best part…..I was sooooo under dressed. You see, after the party, I went upstairs and put on some cargo shorts and polo. I was done for the night and wasn’t in the mood to try and impress anyone. When we get to Kinky’s, we see people in suits, and everything else for that matter and I know I stood out like a sore thumb but, I didn’t care. We get inside and let me just say, I was a bit taken back. Let’s see if I can paint you a good word picture.

The club was in a converted strip mall area where right across the street they had a store called, “Condom Sense” which was a retail shop for everything condom. Granted, I am all about adults being safe but, coming from my little town here in Hermitage Tennessee, I hadn’t seem something like that before. Goodness gracious, when Hustler opened a store in downtown’s club area many years ago, we had protesters and marches from local citizens who felt it was a disgrace to Nashville. My point is, I live in a very conservative area of our country and obviously more so than Dallas Texas and, was just a bit surprised at the neighborhood I found myself in at 1:00am Friday night.

Ok, so, were in line and the people we were with had a VIP table so we got ushered past the velvet rope into the club. Now, the best part is I am in cargo shorts and a polo…..ROFLMAO! Everyone else is still in their party attire and of course those who were regulars at the Kinky’s were in club clothes so, I stood out.

As you walk in, to the left these 2 girls are there scantly clad and looking like they may have just wondered in off the street trying to find shelter from their pimp. I am not exaggerating here, they were beautiful in a Delilah (biblical reference) kind of way. By now, the music is so loud your eye lids start pulsating with the beat and the crown is already so thick, you have to squeeze through them similar to how you squeeze water from a wash cloth. It’s no secret I am a big guy so, when I was walking past people my rear and belly seemed to carve a path like a Land Rover going 50 through a field of fully grown corn, not that I would know anything about that personally…..it’s just a word image. Here I am, bumping and grinding with every Suzy Q and John Q Smith I pass and I am not even dancing! Just between us, I think some of those people saw me coming and tried to get closer……yuk!

Now, because the night was filled with a little too much frivolity I can’t go into all the details of what happened and who was there but, I do want to tell you about 1 thing I saw that truly made me realize I was not in my element.

As I am standing up looking around the sea of people, I saw this girl floating through the crowd with a whip in one hand and her other holding onto something I couldn’t see very well. Looking harder into the pulsating disco lights I see this woman, riding a little old Mexican man as if he was a horse. The craziest part was, he had on a full saddle and little horsey legs in the front. TALK ABOUT KINKY!

Well, needless to say, the night was filled with wonder and yes, Kinky’s was more of an experience I have had in a long time. In fact, just to tell you how dull I life I life, the closest thing I have done lately that even comes close is when I took my niece up to see Mammoth Cave in Kentucky last summer.

I am very grateful to everyone who helped make the night a success, especially Christian Broadwell of RealtyPilot.

Christian, you are a good friend, a great business partner and I am grateful that I was fortunate enough to meet you. I can’t wait to see what our future holds and I look forward to making this year one for the record books.

God bless each of you and let’s get to work!

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Case Shiller in Context

Prices are now up almost 4 percent from the bottom in May 2009, but off 30 percent from May 2006, largely considered the peak of the housing boom. The 20-city index was off just 0.7 percent from this time last year. The smallest decline in almost three years.

Case Shiller index tells us we are in a bottoming process, where prices will continue to stabilize and attract buyers. However the paper economy chart, comparing the 1990s housing bust to the present makes two points vividly. First, the size of this decline and second, the 1990s bust took eight years to return to normalcy, measured from peak to peak

Fed says goodby to MBS
Interest Rates Going Up
The Fed has been the lender of last resort, buying up paper nobody wanted, providing liquidity to mortgage-backed securities and keeping the whole thing afloat. However, the Fed declares this a self sustaining recovery and financial markets stable and profitable. Private investors, willing to purchase government backed mortgages will requrie higher rates. Its not clear to anyone how much of this mortgage backed debt is viable. Investors will require higher rates for mortgage backed securities to look attractive. Mortgage Bankers association predicts 6% rate years and NAR looks to 6.5% in 2011

Fed says Goodby To Tax Credit
Sales Driver

The homebuyer tax credit that gives first time home buyers up to an $8000 tax credit and repeat buyers up to $6500 is set to expire the end of April. You must be under contract by April 30th and close by June 30th to qualify. In the short term the homebuyer tax credit and spring markets are bringing buyers to the table. MBA Purchase Applications index rose 6.8% for the week, confirming solid activity.

Fed Says Hello Sustainable Recovery

The economy remains in a transitional phase from a period that depended on support of public sector programs to a period of resumed growth based on private spending, aqccording to Dennis Lockhart President of the Atlanta Fed President. Read we are off the lifeline and looking to the markets to gradually act more normally.

We created jobs! First time in two years, True a total of 160,000 jobs (including temp jobs) is a far cry from the 8 million we have lost, but its solid proof that we are on the right road.

Rising home prices also could boost consumer optimism. with the tax credit program ending we will likley see lower home prices and higher sales volumn. Prices are reaching equilibrium in some parts of the country, according to moodys.com. Looking at the 1990s-era comparison, even after prices stabilized, housing had a long slog ahead. Our economy is driven by consumer spending, so high unemployment means less consumer spending.

Home prices and sales volume will be held hostage to the economic recovery and will begin in earnest when job creation does so. On a positive note, with big headwinds in front, we are at the beginning of a long term healing process.

REsourced from 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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Who's Lending Now

Prices are now up almost 4 percent from the bottom in May 2009, but off 30 percent from May 2006, largely considered the peak of the housing boom. The 20-city index was off just 0.7 percent from this time last year. The smallest decline in almost three years.<br>
<br>
Case Shiller index tells us we are in a bottoming process, where prices will continue to stabilize and attract buyers. However the paper economy chart, comparing the 1990s housing bust to the present makes two points vividly. First, the size of this decline and second, the 1990s bust took eight years to return to normalcy, measured from peak to peak<br>
<br>
<span style="font-weight: bold;">Fed says goodby to MBS</span><br>
Interest Rates Going Up<br>
The Fed has been the lender of last resort, buying up paper nobody wanted, providing liquidity to mortgage-backed securities and keeping the whole thing afloat. However, the Fed declares this a self sustaining recovery and financial markets stable and profitable. Private investors, willing to purchase government backed mortgages will requrie higher rates. Its not clear to anyone how much of this mortgage backed debt is viable. Investors will require higher rates for mortgage backed securities to look attractive. Mortgage Bankers association predicts 6% rate years and NAR looks to 6.5% in 2011<br>
<br>
<span style="font-weight: bold;">Fed says Goodby To Tax Credit</span><br>
<span style="font-style: italic;">Sales Driver</span><br>
<br>
The homebuyer tax credit that gives first time home buyers up to an $8000 tax credit and repeat buyers up to $6500 is set to expire the end of April. You must be under contract by April 30th and close by June 30th to qualify. In the short term the homebuyer tax credit and spring markets are bringing buyers to the table. MBA Purchase Applications index rose 6.8% for the week, confirming solid activity.<br>
<br>
<span style="font-weight: bold;">Fed Says Hello Sustainable Recovery</span><br style="font-weight: bold;"><br>
The economy remains in a transitional phase from a period that depended on support of public sector programs to a period of resumed growth based on private spending, aqccording to Dennis Lockhart President of the Atlanta Fed President. Read we are off the lifeline and looking to the markets to gradually act more normally.<br>
<br>
We created jobs! First time in two years, True a total of 160,000 jobs (including temp jobs) is a far cry from the 8 million we have lost, but its solid proof that we are on the right road.<br>
<br>
Rising home prices also could boost consumer optimism. with the tax credit program ending we will likley see lower home prices and higher sales volumn. Prices are reaching equilibrium in some parts of the country, according to moodys.com. Looking at the 1990s-era comparison, even after prices stabilized, housing had a long slog ahead. Our economy is driven by consumer spending, so high unemployment means less consumer spending. <br>
<br>
Home prices and sales volume will be held hostage to the economic recovery and will begin in earnest when job creation does so. On a positive note, with big headwinds in front, we are at the beginning of a long term healing process.<br>
<br>
REsourced from <a href="http://www.yourpropertypath.com">www.yourpropertypath.com</a><br>;
You may republish this article, as long as you do not edit and you agree to preserve all links to the author and <a href="http://www.yourpropertypath.com">www.yourpropertypath.com</a>; <br><br>Related Articles<br><a href="http://yourpropertypath.com/artman2/publish/Current_Market_Conditions/Small_Banks_In_Trouble.shtml"><span class="general_text"><span class="general_text">Small Banks In
Trouble</span></span></a><br><a href="http://yourpropertypath.com/artman2/publish/Insurance_138/Hire_an_Home_Insurance_Agent_and_a_Home_Insurance_Company.shtml"><span class="general_text"><span class="general_text">How to Hire an
Home Insurance Agent</span></span></a><br>
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9000 pounds above your head !

Is there a good reason Bank owned properties have extended DOM, multiple price reductions, no open house, no local lock box and a funny look as kind of neglected ? The answer for REO located in my area is most likely the listing agent is from another County
with extended proximity where most of the properties are built likewise on flat lot with
slab or concrete perimeter foundations.

Is there a good explanation for BPO completed with large difference of lot surface exceeding the valuation guidelines? Maybe because there are no other comparable with similar amenities and GLA… But also because one property has a larger lot such as 25,000
Sq-Ft recently seen and ZERO Sq-Ft usable due to the high grade slope. Only the living are is usable! Forget it if you want to have tomatoes plants !

One who is not familiarized with the benefits and inconvenient may not come up with the accurate data to complete a BPO or neither the right approach for an appropriate marketing to maximize the recovery of capital.

Marin County is unique. Properties have their own personality and often difficult to understand. Can you figure why someone will buy a property around $ 1million to have a wooden structure anchored on the hillside with the living area below street level and under a double space carport. Marin County Residents are often addicted to ski in the Lake Tahoe area and consequently are buying SUV and other heavy vehicle to exceed 9000 lbs as two parked on wooden stick just above their head.
I remind you that we are in an earthquake area!

Another component to worry especially in the winter is the water flowing from the hills. No big deal may be until the pressure applied on a retaining wall can exceed thousand PSI if adequate drainage is not efficient. I let you guess the consequences !

Property in foreclosure did not come overnight and their previous owners have been in trouble a long time before. It is fair to assume that maintenance have been deferred years before, including these drainages. They have often bought properties with recommended repairs upon their home inspection which have been forgotten.

These properties located in desirable location as Mill Valley enjoying spectacular views, have a non usable lot and require a very specific foundation and drainage. They also need to be appreciated and their average price is still around one million depending amenities.

They also require a unique approach of marketing to ensure a quick sale and best value.

It is not often fully understood by agent not familiarized with this area. Local agents can help quality control of valuation companies and Asset Manager to fully understand the outcome of these properties and therefore reduce DOM and increase selling price.

Actually, I was in the impression that we are here to maximize the recovery of capital as REO agent. Conclusion to Asset Manager is to assign REO property to local agents!

I have posted a few photos on my page with foundation anchored on hill, carport above living area.

Alain Thillois 04/09/10

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In the era of the internet marketing and search engine marketing it has become really important that we adopt good strategies to promote our products, services or other offerings. Web has become a great medium to popularize whatever we want to reach the mindset of masses or selected target audiences. However, people pay more attention to visuals than the written text and hence video marketing has become more popular than the articles.

In the era of web2.0 it is more important to use the resources in a correct manner. Nobody would sit and watch your videos if they are plainly filled with the pushy statements and connotations that "You should buy my product, it's the best". You need to create videos that educate the audience, tell them what's great about your product in a convincing manner and if you manage to do that then certainly people would be awed by your creation and promote it further.

You can create videos in variety of ways and they can be simple video landing pages, webpage with streaming videos, downloadable files or customer reviews etc.

Visual communication is always more impacting and influential than the written. It is rightly said that a picture is worth a hundred words because it helps to communicate an idea in a more precise and correct way without need of excessive explanation or detail. On the other hand if the picture or visual is not intelligently crafted than it may fail to give the real explanation and thus the thoughts and ideas may be mis-communicated. So there is need to create videos for video marketing in a clear and correct manner.

The creativity and ability to innovate is the key in this field. You may go in for animated videos or real life videos. It can certainly be used as a powerful medium to attract interested buyers into your market base. As per the statistics more than 9 out of 10 people would want to watch videos rather than reading articles. And another survey reveals that video marketing has more than 60% of the customers than the other channels of communication in the internet marketing.

It is important that the videos which you create are made in good quality and correct format. There are a lot of social video sharing sites like Yahoo video and YouTube by Google group which can create a lot of hype about your videos. You just need to share and upload your videos on these sites, If your videos have good content and are affirmatively educative and interesting, people would be more than glad to share them with others. In this way there would be immense popularity of your video. The more number of people watch your video greater would be the sales of your product.

Viral video marketing is indeed a great way to proliferate the sensitivity and idea behind your product to larger to a wider audience.

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Successful Cash For Keys Task

Successful “cash for keys” completed! Obviously the property was broom clean condition with all debris and trashes removed. The exchange occurred within 3 weeks of the initial assignment.

My first contact with the owner was not encouraging. He was really frustrated, not talkative and let me know that “Smith & Wesson” were his friends as the result of many solicitations from other agent for short sale and other related program. I did not give up and made sure he understood to have a better deal than worst situation with Lawyer and Sheriff’s eviction.

It was raining solid on my second attempt. He granted me 4 minutes to talk and made sure to remain outside. It gave me enough time to explain him the situation and also be sure he understands that “I am his friend and after all, I am here to help him!”

I have learnt this concept from two different experiences. One was when I was doing property management in France and some properties were subject to a 1948 Law which was implemented for habitat rehabilitation after World War 2. It can be translated by the “Rent Control” worst case scenario. Regardless the law, I was meeting with frustrated tenants to “help them” and maintained a good communication. This concept opened a lot of doors to me.

Second experience was as Airline pilot prior the 2001 tragedy. I studied “human factors in flight” concepts and issues coming as safety with hijacking situation. Passengers used the “Stockholm Syndrome” concept. This was coming after a notable incident in Sweden where bank hostages started to show a positive feeling of compassion toward the bad guys and a negative feeling toward the authorities. It resulted the bad guys reciprocated a positive feeling toward their hostages. Efficient as it is simple!

How does it affect me and my “client”? Well, since he was showing some frustration which could lead to unexpected behavior and complication, it was necessary to let him know some compassion and that it is a difficult time for all of us, I was recently in a similar situation so I knew the feelings.

Our conversation was extended from 4 minutes to 45 minutes as soon as I have conveyed my sympathy. He was already showing some cooperation. It was raining more and it was time to escape politely as soon as I have seen the change of behavior. I let him know that I will be back very soon. We were suddenly in the “same boat” and I could help him. How great!

The door was wide open on my next visit and he showed me the house, the improvements he did over the past years with all positive outcomes I caould use to sell it more efficiently. He was still arguing with the CFK amount and the time frame, but we arrived very quickly to a very acceptable compromise. Actually, I believe we (AM and me) got a better deal than a cleaned property. Seller left additional appliances he first wanted to remove. I was able to use his precious information to market the property at a higher price than listed! Alain Thillois. 04/05/2010.

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Freddie Mac Weekly Update:


Rates at Second Highest Level This Year


30-year fixed-rate mortgage: Averaged 5.08 percent with an average 0.7 point for the week ending April 1, 2010, up from last week when it averaged 4.99 percent. Last year at this time, the 30-year FRM averaged 4.78 percent.

The 15-year fixed-rate mortgage: Averaged 4.39 percent with an average 0.6 point, up slightly from last week when it averaged 4.34 percent. A year ago at this time, the 15-year FRM averaged 4.52 percent.

Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 4.10 percent this week, with an average 0.6 point, down from last week when it averaged 4.14 percent. A year ago, the 5-year ARM averaged 4.92 percent.

One-year Treasury-indexed ARMs: Averaged 4.05 percent this week with an average 0.6 point, down from last week when it averaged 4.20 percent. At this time last year, the 1-year ARM averaged 4.75 percent.

Freddie Sayz

Interest rates for fixed mortgages rose this week following a run up in long-term bond yields, while ARM rates eased slightly, said Frank Nothaft, Freddie Mac vice president and chief economist. Rates on 30-year fixed loans were the highest since the starting week of this year. Home-price declines continue to moderate with more metropolitan areas showing stabilizing or rising values.

Compared with one year ago, house prices were down 0.7 percent in January 2010 in the S&P/Case-Shiller 20-City Composite Index, which was the smallest 12-month decrease since January 2007. Nine of the cities experienced positive growth, led by San Franciscos 9.1 percent annual gain. Recently, the Mortgage Insurance Companies of America reported that homeowners who moved out of default outnumbered those who became newly delinquent in February, which was the first such occurrence since March 2006.

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Mortgage Bankers Association: Purchases Up!

Mortgage Bankers Association for the week of 3/31/2010

Market Composite Index:
(loan application volume) increased 1.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1.5 percent compared with the previous week.

Refinance Index: decreased 1.3 percent from the previous week and the seasonally adjusted Purchase Index increased 6.8 percent from one week earlier. This is the highest Purchase Index since the week ending October 30, 2009.

Purchase Index: increased 6.8 percent compared with the previous week and was 9.3 percent lower than the same week one year ago.

Refinance Share of Mortgage Activity: decreased to 63.2 percent of total applications from 65.0 percent the previous week. This is the lowest refinance share recorded in the survey since the week ending October 23, 2009.

Arm Share: increased to 5.2 percent from 4.8 percent of total applications from the previous week.

MBA outlook: (Excerpted from mbaa.org)

Purchase applications have increased over the past month, and are now at their highest level since last October when many homebuyers were rushing to get loans closed before the expected expiration of the homebuyer tax credit, said Michael Fratantoni, MBAs Vice President of Research and Economics. We may be seeing a similar pattern now, as the extended version of the tax credit ends next month.


The housing industry faces another challenge during the spring building season stemming from the end on March 31 of the Federal Reserve’s program of buying mortgage-backed securities. The impact on mortgage interest rates that follows is not expected to be dramatic, but it will certainly act as a damper on home buying. The inventory of unsold homes has declined but remains well above normal levels, and will likely remain relatively high given pending foreclosures

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Here are the basic eligibility requirements.

* The property is owner occupied.

*The mortgage loan is a first lien mortgage and originated on or before 1/1/2009.

*The mortgage is delinquent or default is reasonably forseeable.

*The current unpaid principal balanceequal to or less than $729,750.

*The borrower's total monthly mortgage payment exceeds 31% of his or her gross monthly income.

The lender must evaluate and offer a HAMP mod to borrower before consideration to HAFA options.

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