Do you know about the HAMP and HAFA regulations? Are You Aware this takes effect on April 5, 2010?

In response to an outcry for Uncle Sam to step in and provide uniform procedures for helping homeowners stay in their homes. This is how the HAFA, Home Affordable Foreclosure Alternatives Program, was born. HAFA is part of the HAMP, Home Affordable Modification Program. This provides incentives in connection with a short sale or a deed-in-lieu of foreclosure used to avoid foreclosure on a loan eligible for a modification under HAMP.
HAFA:
* Complements HAMP and provides a viable alternative for borrowers who are HAMP eligible but unable to keep their homes.
*Uses borrowers financial and hardship info previously collected for a mod.
*Allows borrowers to receive a pre-approved short sale prior to listing.
*Prohibits lenders from reducing real estate commission ( 6% )
*Requires borrowers to be fully released from future liability for the first mortgage ( no deficiency judgement is allowed).
*Uses set standard processes, documents and timeframe deadlines.
* Provides financial incentives: $1500 for borrower relocation assistance; $1000 for lender to cover admin and processing cost and up to $1000 for investors for allowing a total of up to $3000 in short sale proceeds to be distributed to subordinate lienholders.
The program begins on April 5, 2010 and ends on December 31, 2012.

You need to know who is eligible.

Are you ready?

It is becoming ever more important to stand out from the crowd and show that you are a true professional in an otherwise mediocre world. That is why I chose to undertake the RDCPro^TM Certification course in REO Best Practices and Advanced Evaluations.

Today´s real estate market is ever changing. The number of Real Estate Owned and foreclosure properties is rapidly increasing putting more demands on the companies that own these assets. These financial institutions, mortgage lenders, and REO services use real estate professionals to manage, market, and sell their assets. They rely on the expertise of these local specialists to provide the best service and to represent their property. These companies have less time and staff to train current and new brokers and agents they are using. This is exactly why Graham Holmes REO listing agent studied to become an RDCPro^TM Certified Agent.

Default School fills that void by providing online and traditional training for the corporate seller and their brokers and agents. In addition, they provide the necessary tools any broker or agent need to become an REO specialist. Default School provides a variety of products for the default servicing sector and the real estate professionals managing these properties. Each course is designed to make you a quality REO broker or agent.

Graham Holmes RDCPro^TM Certified REO Bank Owned Listing Agent serving Hemet, San Jacinto, Yucaipa, Beaumont, Calimesa and any other Inland Empire city.

Short Sale Flipping isn’t Fraud…….right? WRONG!

I have argued, for several years now that in my opinion Short Sale Flipping Schemes that use Option Contracts without full disclosure to all parties involved, including the selling bank is fraud however, we still have many agents out there that just don’t get it.

Quote from John Doe Realtor # 1

“Jesse you have been ill informed and need to watch out what type of horrible , fear mongering advice you are putting out on a public board.

Quote from John Doe Realtor # 2

“Real Estate Day trading is not illegal. While you may wish to make it so, wishing and hoping won't change the law. Please cite some code somewhere that supports your statement”

Quote from John Doe Realtor # 3

“Jesse you are obviously an intelligent man but a bit misguided”

This is just a few examples of what has come my way however, it hasn’t changed my opinion and, now I have a recent ruling by a Magistrate in Connecticut to support my opinion. To read the entire article yourself, follow this link, http://nationalmortgageprofessional.com/news16047/connecticut-real-estate-agent-admits-defrauding-bank-short-sale-scheme

In a nut shell, like many short sale investor flips I have seen, the selling Realtor doesn’t disclose to the selling bank that they are planning on selling the property for a profit and the Selling Realtor doesn’t disclose that the offer they are sending into the bank isn’t the best offer they received on the property. This is Mortgage FRAUD and now I have precedent to agree with me.

Quote from the National Mortgage Professional.com article….

“According to court documents and statements made in court, McElaney worked with Sergio Natera, also a real estate agent, to defraud Regions Bank, which held two mortgages on a residential property in Bridgeport. On Dec. 5, 2007, McElaney, who was a listing agent for the property, received an offer to purchase the property for a price of $132,500. However, McElaney and Natera subsequently directed communications to Regions Bank that the highest offer to purchase the property was for $102,375 by BOS Asset Management LLC, an entity that Natera controlled. The bank agreed to a short sale of the property for the lower price, and released its mortgages on the property. On June 9, 2008, Natera, through BOS Asset Management, sold the property for $132,500 to the original bidder on the property, and Natera and McElaney retained the difference in the two sale prices.

McElaney is scheduled to be sentenced by United States District Judge Janet C. Hall on May 10, 2010, at which time she faces a maximum term of imprisonment of 30 years, a fine of up to $1 million, and an order of restitution. Natera pleaded guilty to one count of bank fraud on Feb. 11, 2010. He awaits sentencing”

If you are in a Short Sale Flip Transaction and you aren’t disclosing to the selling bank that you plan on re-selling this home for a profit, you are opening yourself to risk that could be argued as fraud and your insurance doesn’t protect against that

Are Liberal Progressive Government policies pushing America toward a Federal takeover of housing?

I know for many of us, this question seems crazy however, make no mistake, Progressive Liberals would love to see America provide housing to each and every person in America, citizen or not. In fact, Franklin D. Roosevelt introduced this idea to America by including, “the right of every family to a decent home” as his 5^th right in his proposed Second Bill of Rights.

So, would it be possible for the Government to just take over the housing industry and, promise everyone a home? It is not only possible, it’s happening and it’s taking place under the guise of “Housing Recovery” and the instrument which will be used to do the takeover is TARP.

Back in October of 2008, TARP was used to stabilize the financial institutions after their delinquent mortgages they were holding came close to causing these banks to melt down. What many people don’t realize is, this meltdown was a direct cause of Government regulation. I don’t want to bore you with all the details however, all you need to do is bring up Google and type, Community Reinvestment Act. Read for yourself how the Fed’s forced lenders to adopt risky loan practices and allowed community organizations similar to Acorn to dictate to these services how many loans they had to make and to whom they went to. I know that sounds crazy…..and, I am sure I am sounding like a broken record but, these banks and servicers didn’t make risky loans because they were greedy, like the media have you believe, they did it because they were mandated to do it.

Why would the government allow citizens to dictate how a bank would give out loans? It’s all part of the progressive evolution of this country. It was set into motion by F.D.R. Progressives knew they couldn’t revolutionize our country, Americans lover freedom too much however, they knew they could slowly progress us away from our “inadequate” Bill of Rights and Constitution with small steps and Freddie Mac, Fannie Mae and the Federal Reserve were all part of the larger picture. To put a chill down your spine, let me give you a quote to further my point.

Franklin Roosevelt said in his radio address to the nation in January 1944.

“This Republic (the United States of America) had its beginning and, grew to its present strength, under the protection of certain inalienable political rights – among them the right of free speech, free press, free worship, trial by jury, freedom from unreasonable searches and seizures. They were our rights to life and liberty.

As our nation has grown in size and stature, however, - as our industrial economy expanded these political rights proved inadequate to assure us equality in the pursuit of happiness.”

You may not have known this was an agenda item on the Progressive left but, let me assure you, it is. It is my opinion, Progressive Liberals are using this Housing Crisis to their advantage. In fact, I am of the opinion that this crisis is engineered by Progressive Liberals. For those of you reading this thinking to yourself, it’s not possible, it could never happen, well……have you seen this?

http://banking.senate.gov/public/_files/ChairmansMark31510AYO10306_xmlFinancialReformLegislationBill.pdf

It’s a new bill being floated around, pay special attention to Title III, TRANSFER OF POWER TO THE COMPTROLLER OF THE CURRENCY, THE CORPORATION, AND THE BOARD OF GOVERNORS. This bill is laying the groundwork for a true and complete takeover of the financial institutions and likewise, as exemplified with Bank of America, the Government will mandate to banks that they have to “forgive debt” or “lower payments”. All that sounds good on its face value but, who do you think is paying for all this “forgiveness” and “lower payments”………………………YOU ARE, THE AMERICAN TAX PAYER.

Now, I do believe that President Obama is a FDR Progressive Liberal. I can give you quotes and examples of this, just let me know if you need them. Because he is a FDR Progressive Liberal, he believes everyone should have a decent home and he is going to use the American Tax Payer to redistribute the wealth of this country through the Progressive Liberal engineered Housing Crisis to make it happen. Did you read what the White House said yesterday? Just in case you missed it, let me tell you.

“The White House plans to announce on Friday that it will require lenders to lower the mortgage payments of some unemployed workers and encourage lenders to eliminate some principal debt of homeowners who owe more than their home is worth, sources familiar with the plan said Thursday.”

http://www.foxbusiness.com/story/markets/industries/government/update--white-house-announce-housing-aid-friday--sources-493713530/

All of that sounds great till you figure out who is paying for it. Make no mistake, I am all about helping the down and out, let’s not forget, I know what it is like to live in a shelter for a year in six months. I know what it’s like to have a single parent with 2 jobs and you as the eldest child had to take care of younger sibilings, I know what it’s like to live with 5 people in a one room apartment in the worse part of town you can imagine…I know because I have personally been there. In fact, I still have family members that are still living that life and my heart breaks every single day for them but, no matter how hard things get, no matter how bad the outlook appears today, we are Americans, we love Freedom and Liberty and Roosevelt was wrong in 1944 and his Progressive Liberals are wrong today.

Homeownership is not a right, it is a privilege, an honor, an accomplishment, you have to work hard to own a home. In fact, because homeownership has been so easy for so many, I walk into homes that have been abandoned and abused because the homeowners didn’t care or couldn’t afford the maintenance on the home, either way…..it’s wrong!

***(NEVERMIND. I got reinstated April 22 as active REO Agent! Thank You Wells Fargo/ Premiere Asset!)

I am really upset ! I got what appeared to be a "Form Letter" sent to undisclosed recipients on Wed March 24, that basicall said due to agent saturation they are changing my status from REO agent to BPO's Only!

Yet 1 day before on Tuesday, they sent me 3 new REO assignments! What the F***??%%$$ ??

I have no idea why that happened yet. Was it really about lack of inventory to distribute? Wells was supposed to re-start their grading system this spring and I had an "A" on the last scorecard, but I'm just kinda freaking out not knowing why or do I have a chance to improve so I get the listings again. Or is the inventory really just that low. That would be HARD to believe as the new release was just supposed to start as I heard through the grapevine.

I followed up with a very strong email asking several questions and gave them 5 asset managers to call to verify that I kick ass and get property closed for WELLS everytime. Yes I have been late with a few BPO's and the crazy billing tasks, but that is because I am running on a very lean staff and making all the phone calls and other actions that help get these REO's closed. Right now I am working on selling a 10 acre Farm that was assigned to me last MAY 2009, CFK in October then finally in Escrow January 2010 and the vacant place just got vandalized. Now we can add at least 3 more weeks to close.

But, I will get it closed ! Isn't that really the most important thing?

Wells Fargo - Premiere Asset Services has been great to work for and fantastic employees. I would like to continue helping and keeping my established relationships.

Someone around here will be getting PAS listings and I want my team to get them!

Thanks!

John in the San Francisco Bay Area

The Honorable Governor Arnold Schwareneggar has come to the homebuyer's rescue. He signed a bill that will give a 5% measured credit up to $10,000 payable in three annual payments. Of course you have to repay it if you sell your home prematurely. On a $250,000 home that means a warrant from the state of California at $3,333 /year for three years. Not quite as sexy as the $8000 version but it helps pay for that furniture you will need.

THE DETAILS:

The eligible taxpayer who closes escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or who closes escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit.

There has been talk too of re -renewing the federal version. Although nothing is carved in stone,I have heard that it is caught up in the Senate right now...and its reicarnation will probably be a lesser credit. Maybe Obama can sneak that into his health care bill like he did the abortion thing! Kinda like burying in your short sale agreement that the lender will consider the seller's debt paid in full.

I always said real estate was stimulating and I am sure it will be even more so after April 1 when HAMP kicks in and lenders really have to start working with realtors and not be so mysterious. I already am seeing a surge in BPO orders from clearinghouses that would indicate a storm is coming. They even send stuff at 3 am or 9 pm at night...they are still hard to get however. Realtors need to remember too that although we like dollar signs, the needs of our CLIENT COME FIRST! If they can manage to keep their home, then it is a good thing!

Be a servant ...to quote Cory Boatwright.

California's Governor signed into a law today a new tax credit for purchases made in 2010. It will be interesting to see how this impacts the market. Inventory is already terribly low, and with REOs being withheld too, what are buyers going to buy with this credit?

We have a little more information on our site's blog...

http://mvreco.com/another-tax-credit-for-californians-who-buy-a-home-in-2010

Megan Zavieh

Mission Valley Real Estate Company

Fremont, California

http://mvreco.com

Today's real estate market is ever changing. Here today and gone tomorrow. Unfortunately this applies to the homeowner AND the agent. I remember when I started in the business in 2004 with my CA Conditional License. I just knew I was going to be an immediate success and make a boatload of money just because I had the word "REALTOR" next to my name. Wow, was I in for a surprise!

Getting a listing was almost impossible because of the competition. Either you needed to be a veteran in the business, work on a successful team, work your tail off or get out there or do old fashion door knocking. Luckily for me I changed my approach and became a strategic buyer's agent. I used my knowledge of internet marketing to dive into the world of Craigslist, Backpage and Myspace. Building my online presence proved to be a great way to get into the door and grow my business.

We are now into 2010 and the game has changed tenfold. The homeowners of 2004 are now making the decision to either short sale or walk away from their investment. Yesterday's "premiere listing agent" is now having to be a counselor, an advocate for the bank and sometimes even a property management specialist.

With the Loan Exit Option before us, what are the tools of the trade that you will use to become "the expert" in your field in your local market? How will you lobby to get the new short sale business the banks are offering? How will you survive the new changes in the real estate market?

What's in your toolbox?

“Flavor of the Month” Training Certifications

Another blog planted this in my mind and I thought it would be better for it to stand alone then spoil someone else’s thread.

I have got to ask this question: What makes the Five Star Cert or any other training company different from the 20 or 30 other REO or Short Sale cert's out there? Why should I suddenly rush out and get ANOTHER cert when I have already been certified for years? How many cert’s do I need to do the same thing I’ve been doing all along?

I ask this because the same thing that has been happening to the REO market for the last 2 years is now starting to happen with Short Sales now that HAFA is about to kick in. Every other month another company releases a "New" cert of some type with all the hype of that you will be left behind if you do not get it. Well I'm here to say I had MORE business before getting all of these cert's. Over the last 2 years I have spent $$THOUSANDS$$ in the latest “Flavor of the Month” REO training because someone recommended it or it sounded good. Well, after 2 years of trying, marketing and more training, not ONE piece of business can be directly related to any of the training! NOT ONE!

Should I have spent all of this money in other methods of marketing? I don’t know. After all these expensive classes for the “Flavor of the Month” cert’s, I still get almost all of my business in networking with other agents, lenders and people in the industry. My biggest client, Bank of America, came to me because I answered my phone! I was referred to them by a property manager that I knew and without warning one day a Senior V.P. out of their Baltimore office calls to ask me if I would like to do a couple of BPO’s for them. What a silly question! This was BEFORE I even considered spending one dime on the “Flavor of the Month” cert. None of the banks I was already working with require any type of certification. I took the classes because I thought they would teach me something new, most of them failed at that.

Please, do not get me wrong, Five Star is probably at the top of their field. Maybe for agents who work in brokerages that do not provide top notch training, these cert's are a must have. But what do they provide that is different from what anybody else teaches?

I guess I’m lucky with the decision I made when I first got my real estate license and was looking for a broker. Years later I’m now certain that decision was the best I have ever made! Yes, I went with the largest brokerage in the Atlanta area. Who already had their own training academy, provides hours and hours of training for free to our agents. Where training is highly encourage and promoted! In fact, within my first 4 year license period I had over 200 CE credits and additional 100+ hours of non-CE training…..all at no cost to me! Now I’m getting into company promotion and it’s not the direction I wanted to go with this.

So, my question still stands: What does the “Flavor of the Month” certification course offer that others have not been teaching for many years (some for free)? A few extra alphabets behind my name that no one outside this industry understands or cares about? I made myself a promise this year, one I plan to keep! I’m saving my hard earned money I would have spent on all these new “Flavor of the Month” certifications and put it into networking events. I can only hope to recover the money I have lost over the last two years!

I would like to hear your thoughts on this.

Steve Adkins

Better Homes and Gardens Real Estate Metro Brokers

www.The-Adkins-Group

Friends,

On a current discussion on my LinkedIn Group, "REO," a person posted asking about a company who is trying to collect $149 from agents to post their profile on their site and (they claim) generate REO listings, BPO orders, and buyer referrals, etc. The company is www.HudGovAgents.

Now, none of us were born yesterday when it comes to this business, but it was interesting to me to see that post because this past January, the salesperson from HudGovAgents somehow managed to convince my ordinarily very skeptical business partner to spend $149.

Has she seen anything since? In the first week of February, she received a list of BPO servicers and was told how to apply for BPOs. Hmmm. We all have these lists. What's new? Since then, not ONE thing.

The person she dealt with is a man named Donald. If ANYBODY has ANYTHING positive to say about this service, I welcome it.

So, the point is, even a skeptic can be convinced by the right words, and the right website. I am simply committed to getting the word out so nobody else contributes their hard earned dollars.

You can find me on LinkedIn by clicking here.

I attended the Five Star Short Sale Summit in Vegas. What an awesome conference and certification. There are many changes coming down the pike for short sales. Now that there has been stadardization put in place for short sales the time frame from contract to close will become more reasonable.

The changes being made will force some accountability on the lenders as well as the borrowers. These distressed home owners will not be going straight into foreclosure with HAMP and HAFA in effect.

It is for seen there will be many more short sales in the future and less foreclosures. The bottom line is you will need your Short Sale Certification to ramp up business. Do you have yours?

I recently read an article (link posted below) that evoked an OMG! out of me (not an easy thing to do). It has come to my attention that modifying your mortgage will, in the short term (the duration of the trial mod) and possibly for the long term, cause a dip in your FICO score. Whether its a dip or a drop depends on a few things and what will the consequences be.

It turns out that homeowners who apply for modification will see their credit scores go down. If their credit is already shot, their score may only dip a little more. If their score has been good, the modification can cause their score to drop as much as 100 points. Wow, that is a significant drop. This will mostly affect the homeowner who is struggling but has managed to keep it together. They've been told that they should consider a loan mod to help them get through this hard period in their life.

What happens is that the trial loan modifications are only partial payments of the actual loan. This being the case, the bank reports this to the credit bureaus as being behind on your payments and thus your score takes a nose dive. If your mod takes 10 months then it shows up as 10 months behind on your payments.

Now the banks have said that when the homeowner completes the trial and finalizes the modification, they will remove the delinquncies from the credit report. The homeowner's credit score is suppose to recover ( it takes about 30 days). Will this really happen the way the banks are proclaiming? Too soon to tell. This is all very new and the banks are overwhelmed. Out of the hundreds of thousands loan mods being done and requested, only about 175,000 have gone to final modification. That's a drop in the bucket.

Let's hope that scores go back, but in the meantime, homeowners are going months with poor credit. What are the consequences? Other creditors that they have dealing with, ie Visa, American Express,their home equity line, may notice the decline in score and the deliquent payments and decide that this person is too much of a risk. They may lower his spending limit, up his rates, or even cancel him. If the homeowner is applying for a new job and the potential employer checks the credit score (and yes many of them do), they may find the homeowner a riskier candidate. If the homeowner is applying for a car loan or college loan for his son/daughter, these may get declined. This list could go on and on.

We can't give legel advice or accounting advice, but I think it is our job to at least warn potential homeowners, who may not really need to do a modification, that they should think the route they take very carefully and perhaps even seek credit counseling before making a final decision.

http://finance.yahoo.com/news/Crdit-scores-can-drop-after-apf-1601705094.html?x=0