Posted by Lori Cutka on January 24, 2010 at 7:30am
I've been in this industry for 6 years. I have realized over these past 6 years that I do not want a job.....I want a business! I want a business that thrives year after year. I know that does not come easy and I know I have to break out of my shell and get out there and meet the people that can help guide me into directions I wouldn't know how to on my own. THUS, I'm ready! I am going to make a point to get to a conference this year and start blogging more and getting onto this site daily to learn more each day. I'm ready! 2010 is here.
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Posted by Dawn Barrier on January 24, 2010 at 7:30am
What? But I thought Cash was King? That is what you are most likely saying to yourself right now?But, in this market it may not always be. You can't assume that Cash will always get the house, at least that is what I'm seeing.There are a lot of cash buyers bidding on homes in Las Vegas right now, and it seems (or you would think) that most of the time a cash buyer will get the home over a buyer who is financing, but, that is not always the case.I am currently working with a few cash buyers and one of them actually did not win a bid on a home they wanted, even when the bids were at asking price (which by the way was at the TOP of the price range for this area and home, it would be the new high comp), buyer was paying all closing cost and offering a 15 day close with inspections being the only contingency.Now, maybe this bank did actually get a higher offer from the fha/conventional buyer (even Cash buyers have a limit as to how much they are willing to pay), but the bank maybe running the risk that this home may not appraise at that higher offer and then they will be 2-3 weeks into the deal and have to lower their price anyway or ask the buyer to pay the difference.Or maybe, just maybe in that area we maybe seeing a turn around in prices for the better. Maybe they didn't believe me when I said, "No, they are not an investor, they want to retire in this home". That is a possibility as some lenders will actually favor a first time home buyer over what they think will be an investor. Maybe the other buyers agent worked for the same company. There are many variables and you just never know what a bank will do in this market and the sellers agent most likely will not let you know why your offer wasn't chosen, but your offer will most likely be in backup position with the other offers that came in.So, buyers in the Las Vegas area, get ready to make several offers on several homes before you actually get one.By the way, my buyers moved on and we have another home in escrow now
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I was surfing Active Rain and found a post that I found to be parallel to what my fist post was about...so here is an adapted reblog of some good points:Top 17 Ways to Keep Your Asset Managers Happy!1 Practice Excellent Communication: Call, email asset managers often. Be available during normal working hours. Market your homes using 1800HomeHotline.com2 Have Timely Responses: Make it so the Asset Managers can easily reach you…not your voice mail…not your assistant..YOU!3 Operate on both a personal and professional level: Cary made a great point….’Treat every asset as if it were your OWN home”.4 Do not delegate your asset manager relationships to any staff members. Asset Managers are your best sellers (remember, they will often list 10-20…50 homes with you. Treat them like GOLD.5 YOU..the listing agent must know the asset. You must know all of your listings cold…know their condition…market competition…know the market!6 Practice MMFI for every asset manager. ‘MMFI’ Make Me Feel Important. Make them FEEL like they are your only client.7 KNOW your inventory. Cary made it clear that you must know the market. Don’t list outside of your service area.8 Its OK to bring in a team member to help partner with you….but, introduce this person to the Asset Manager…let them know that this team member is their personal asset manager contact.9 Be a Problem Solver, not a Problem delegator. Don’t tell the Asset Managers about the problem….bring them the solution.10 Be innovative. When doing an occupancy check..ask the neighbors…walk around the house. Actually…make an effort! 11 TAKE ACTION12 Treat it as if it’s YOUR HOUSE. Don’t wait to be told what to do. Again, treat every asset as if it were your own personal property.13 Get occupancy checks back in HOURS, not in DAYS. They track this….you will earn more assets the faster you report back to the Asset Manager about occupancy.14 Maintain low Days on the Market. They track your DOM….Warning: you will lose the asset if you don’t sell it in 90-120 days.15 List to sell price ration. BPO vs. actual SALE PRICE should be a close ratio.16 What works needs to be done? Get it into Lend-able condition ASAP.17 Do your Cash for Keys correctly. Know the Tenant Protection Act.THANKS TO HARRIS REALESTATE UNIVERSITY
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Okay I know this sounds bizarre but I have been reading quite alot lately about how we REO agents get attention around here and I have given much thought. I think overall, I have talked enough about trying to change procedures and customer service.Today, I want to give a virtual hug or hi5 to an asset manager that has taken a chance on me and has allowed me to launch my first assignment from an AM. Now I have to say that I probably bother him once or twice a week if he has anything so maybe it is all about getting yourself known.To be humble it was a BPO but it was a start! I want to say he has been accessible to talk to about questions about the paperwork etc.If I get further assignments from him or anyone else I will assure them that they will get rapid service. Example: I was given 5 days to do this and I got it back to him within 3 days.I really appreciate the opportunity to "fire up the engines" and work for him.What I would like to see happen here is for us agents to help and assist the AM's anyway we can. They have much on their plates between having meetings with their staff and trying to keep things from fouling up because they have a certain standard that they must meet too. In the field ...we are their eyes...we have incredible amounts of data before us that we can share with them. We are eyewitnesses to the neighborhoods and the feel of the area.WE ARE REO!
By the way thanks to Steve Johnson of Absolute REO!
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Recent panic about the burst of the real estate bubble, dramatically low prices and high inventory completely overshadowed a positive side of the current real estate market-opportunities for investors. The message that falling price is the most lucrative component of real estate buying was completely lost in the choir of grouches (and media craziness that followed) about falling property values.No doubt, millions of home owners suffered from the burst of the bubble, many had to give their houses up, others lost their equity; all in all, housing prices declined sharply signifying a real crisis. However, it would be foolish to forget that there are and will be people, many of them complete newbies, who are going to make a big profit exactly because property prices have declined.According to Robert Kiyosaki, author of a bestseller "Rich Dad, Poor Dad," there is a fortune to be made in real estate investing if you decide to take an action now, especially in buying rental units."Silicon Valley Mercury News" has recently reported that Bay Area real estate investors have gone on a shopping spree, snapping up homes in low-cost communities outside the region. It he third quarter of this year, for instance, buyers in the nine-county Bay Area purchased nearly 3,000 homes outside the region, up 58 percent from the same quarter last year, typically for prices well below 2008 levels.The same "shopping spree" silently shook Detroit, where quite a few brokerage companies made nice profits by purchasing low-cost rental houses en mass and then reselling them to hungry hordes of investors. The smartest ones, who took time to gather intelligence about the area and circumvented the brokers, have been raking up profits ever since 2007.Similar stories are repeated in Florida, Illinois and other states. Remember what investment guru Warren Buffet once had said? "Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down." Rental units in top condition and great location are plentiful and relatively easy to find. So the emphasis on quality is important.This is not the time to buy apartment complexes that are ran own or built in shady neighborhoods. Unless you are an experienced broker and have a sixths sense about which neighborhood is about to change dramatically for the better, don't bother with lengthy and costly renovations and don't buy property in the places where you would not want to live yourself.Before diving into the market as an investor, double check your credit score. A shrewd investor will not take any changes and guard every penny during the process of investing. Why pay more when mortgage rates are still at historic low?Pay all your bills on time, turn down offers of a new credit, stop using bigger part of your credit cards whatsoever and keep monthly balances low on the rest.You have at least 6 months, maybe even a year to fix your credit. By that time market will be like waking up bear at the best, so you'll have enough time to capitalize on cheap rental units.When on a lookout for a property to invest, give yourself enough time to gather the intelligence. Don't rely on the Internet data only. Visit the area where you would like to invest, preferably several times and at least once during wee hours. Record the feeling in the streets in your head. Did you feel safe walking/driving in the area? Would you be comfortable putting your family/children in the apartment building you are about to purchase?Have an inspector you know and trust check the house. In the current market there is no need to purchase a very old house or the one that for whatever reasons needs costly repair. Buy rental units with confidence and be ready to start making money, not worrying about spending more.Profiting from rental units is all about the cash flow, not capital gains. Do your homework and rely on simple math before making an investment. Add up your mortgage payments, property taxes, insurance costs and maintenance, and subtract that figure from what you can reasonably charge for rent. The amount that's left is your cash flow, your salary and your profit. Start small like this before moving to bigger, bolder, riskier investments.
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Commercial REO Brokers Association To Host Commercial REO Training Program and Luncheon: January 23 at Los Angeles Airport MarriottThe Commercial REO Brokers Association, "CREOBA" (www.creoba.com), the exclusive commercial national association dedicated to assisting real estate professionals who want to provide REO services to banks and loan providers, proudly announces its Commercial REO Training Program and Luncheon, scheduled for January 23 at the Los Angeles Airport Marriott on 5855 West Century Boulevard, from 9:00 AM - 5:00 PM PST. The daylong event will include the following courses: Commercial REO 201, Small Cap Asset Management, taught by Miguel Pena; Commercial REO 202, Large Cap Asset Management, taught by Ed Savoy; and a guest speaker during the luncheon, from 12:00 - 1:30.The Commercial REO Brokers Association, "CREOBA" (www.creoba.com), the exclusive commercial national association dedicated to assisting real estate professionals who want to provide REO services to banks and loan providers, proudly announces its Commercial REO Training Program and Luncheon, scheduled for January 23 at the Los Angeles Airport Marriott on 5855 West Century Boulevard, from 9:00 AM - 5:00 PM PST. The daylong event will include the following courses: Commercial REO 201, Small Cap Asset Management, taught by Miguel Pena; Commercial REO 202, Large Cap Asset Management, taught by Ed Savoy; and a guest speaker during the luncheon, from 12:00 - 1:30."This daylong event showcases the knowledge and practical advice from our top instructors, while emphasizing issues concerning the Track 5 part of our courses, including: what the Asset Manager expects from the Broker they have assigned a property to manage and sell, and how the Broker may perform these tasks directly or manage other contractors. I encourage people to become members of CREOBA so they can profit from this advice and join our rapidly growing organization. Indeed, we are leaders in helping our members as they seek ways to succeed in this new economy. For example: With $176 billion in distressed commercial real estate, up from $100 billion this same time last year, our training programs provide the necessary intelligence to thrive in a market that requires innovation and the very support only we have the depth to offer," says Mark Barker, Vice President of CREOBA.
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Read this and more at www.preservationmonthly.com- Further expands ability to provide lending institutions with comprehensive asset management capabilities throughout 2010 -Lenders Asset Management Corporation (LAMCO), a full-service, nationwide default asset management company that offers comprehensive REO services, announced the development of its REO Services Scalability Initiative, the company’s approach to prepare for the mortgage industry’s high volume of foreclosures that are expected to occur throughout 2010.The program involves providing ongoing training to existing staff, hiring new personnel, completing the expansion of its current office space, setting up additional facilities to further accommodate its national coverage and continuing to build up its nationwide network of approximately 25,000 vendors providing REO services.This initiative enables LAMCO to manage its staff and REO vendors in order to achieve maximum levels of performance and collectively leverage skill sets to cost-effectively scale up REO operations to support its current client growth and new customers. This system also ensures data security and full compliance with local and national regulations.“Currently there are approximately 7 million homes in default, that are known as the mortgage industry’s ‘shadow inventory’ of at-risk properties, and when the mortgage resets start hitting in the coming months, the industry can expect many of these homes to go into foreclosure,” said Brandon J. Hawkes, CEO of LAMCO. “In preparation for the anticipated spike in foreclosures, LAMCO has launched our REO Services Scalability Initiative to structure, organize and plan for the expected influx of homes that will face foreclosure and efficiently scale operations to maintain the properties and identify new homebuyers as quickly as possible.”
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read this and more at www.preservationmonthly.comFHA to increase Mortgage Premiums and reduce seller concessionsNew Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved CommunitiesFederal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said Commissioner Stevens. “When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”Announced FHA Policy Changes:Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lendingThe first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closingThe initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.Update the combination of FICO scores and down payments for new borrowers.New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.Reduce allowable seller concessions from 6% to 3%The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.Increase enforcement on FHA lendersPublicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.Enhance monitoring of lender performance and compliance with FHA guidelines and standards.Implement Credit Watch termination through lender underwriting ID in addition to originating ID.This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring processSpecifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwriteLegislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branchesIn addition to the changes proposed today, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.
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Posted by Chris Treece on January 21, 2010 at 5:52am
If you've ever Googled your name, you know how important managing your reputation online can be. Each day, thousands of individuals are searching online for information about others simply by searching on Google or other leading search engines. With information being so readily available, managing your reputation is more important than ever.How to Manage Your Reputation OnlineFortunately, managing your reputation online isn't all that difficult, but it does take work. Here are 7 basic steps you can take to ensure that your reputation doesn't become negatively impacted by what's being said about you online.1. See where you stand. Start your reputation management initiative by Googling your name. Try it with quotes and with out (first and last name together). Look through each of your results on page one and page two of Google. Are there any negative items you wish to remove?2. Set up a Google alert. Visit Google and set up an alert for your name. After setting up the alert Google will send you and email to confirm that you wish to receive the updates. Accept the alert and each time your name is published to the Web, you'll know about it.3. Contact website owners for name removal. If there are sites that include your name and commentary that is less than desirable, contact the appropriate websites requesting that the information be removed. More often than not, website owners will agree to remove your name and/or inappropriate information.4. Purchase a domain with your name. Add sites and WebPages associated with your name and watch negative search results get pushed lower on Google rankings. Visit GoDaddy or another provider of website URLs and hosting, and purchase a domain that contains your name. Even if your name is rather common, experiment with variations until your name can be established in the form of a dot com. Once you own a domain, publish a webpage with your personal profile.5. Start a blog under your name. Blogger is a great tool for setting up your own blog which can be used to publish information about yourself. Popular blog sites are often picked up by Google and you can control the content. Be sure to sign up for Technorati after your blog has been published. Submit your blog for review and its popularity will increase, improving search rankings and continuing to push down negative search results.6. Free press release. Use free-press-release.com or a similar free press release site to publish favorable information about your and your reputation. This form of reputation management is easy and costs nothing. Be sure to use your name throughout the release and in the release title.7. Author articles in your field. Publish article relative to a particular topic or area in which you've done some work or have experience. Use article distribution services to build online references to your content. Make sure your articles contain an about the author section that links back to your main website.There are a variety of strategies you can use to manage online references about you, your family, or others that need to manage their reputation online. Other online sites like Facebook, MySpace, Flickr, YouTube, and Squidoo, offer ample opportunity to deliver favorable search results that can push unfavorable results down in search engine rankings. The key is to start today - proactively manage your reputation and put yourself in a favorable light.
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RISMEDIA, January 21, 2010—(MCT)—In hopes of reviving one of the nation’s hardest-hit condominium markets, the giant mortgage backer Fannie Mae is making it easier for people to buy Florida condos that may not have met previous lending standards.Fannie Mae has started giving certain condo complexes in the state “special approval” designations, a sort of stamp of approval, even when the properties don’t meet one or more of the established rules relating to delinquent fees, financial reserves and percentage of owner-occupied units.Florida is the only state getting the special reviews, which are a first for Fannie Mae, officials with the government-backed corporation recently said.Teams are already reviewing complexes and granting the special approvals—which are a green light for mortgage lenders—in cases where the projects are considered stable even though they might violate a Fannie Mae lending standard. For example, under current rules, a project doesn’t qualify for Fannie Mae-backed mortgages if more than 15% of the unit owners are behind on their association fees—but a review team might decide to waive that rule, opening that complex to a much larger pool or prospective buyers.“This new initiative is geared toward providing maximum support for Florida’s distressed condo market as we continue to provide liquidity to the housing market more broadly,” said Karen Pallotta, executive vice president for the secondary-mortgage giant.The new reviews were prompted by the fact that home buyers, lenders and real-estate agents have been avoiding condos because many of the complexes do not meet existing lending criteria. With little or no financing available, condo prices have crashed, with units attracting mostly cash buyers. Fannie Mae had already been granting exceptions to its condominium guidelines, but only on a case-by-case basis, when requested by lenders.Even though Miami’s condo prices have not fallen as sharply as those in Orlando, condo complexes in South Florida appear to be getting most of the new program’s early attention. Fannie Mae has given its approval stamp for mortgages on more than 50 condo complexes, all of them in the Miami area. Miami real estate agent Maurice Veissi, first vice president of the National Association of Realtors, said that the real estate organization was key in educating Fannie Mae about Florida’s collapsing condo prices. “Fannie Mae and Freddie Mac recognize that south Florida, and southeast Florida in particular, have been uniquely hit,” Veissi said. “Any time you get some relaxation of what were some stringent rules and regulations, that will affect the market to some extent.”Condo prices have fallen more in Orlando than in most U.S. metro areas. The median price for a unit in the four-county Orlando area in November 2009 was $55,000, down 21% from a year earlier. In comparison, Miami’s median condo price was $149,000, down 14%.Fannie Mae officials said they will be adding more complexes to their list of approved projects, which can viewed at www.efanniemae.com under “frequently searched pages,” as six employees review properties across the state. They will be taking into consideration the quality of each project’s construction and maintenance as well as the financial health of the owners association.Whether loosening lending criteria for condominiums is the right thing to do now is a valid question, said Craig E. Polejes, president of Florida Bank of Commerce. “The question is: If they’re looking to make exceptions on a case-by-case basis, what are the parameters of the exceptions?” Polejes asked. He said he was skeptical of any move to finance mortgages for condo units in complexes that had been converted from apartments. The overriding issues, Polejes added, should be the quality of the building and the creditworthiness of the buyer.A board member of one Winter Park, Fla.-area condominium project that converted from apartments several years ago said only one-fourth of the residents were paying their fees, forcing the owners association to increase the fees to make mandatory insurance payments. The board member, who spoke only on condition of anonymity because of a pending foreclosure action, said he hoped something could be done to help revive the local condo market.Polejes said qualified buyers should not continue to be precluded from purchasing units in viable condominium complexes simply because the property doesn’t meet every single standard to allow financing. But he added: “If they start relaxing down payments, incomes, credit scores—that’s problematic.”Story by Mary Shanklin(c) 2010, The Orlando Sentinel (Fla.).Distributed by McClatchy-Tribune Information Services.
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I just saw this article by Carrie Bay of DS News. Something we will all need to keep in mind as we qualify buyers.The Federal Housing Administration (FHA) said Wednesday that it is raising homebuyers’ up-front costs for mortgage insurance, tripling downpayment requirements for borrowers with low credit scores, and cutting seller concessions in half.The agency says the new policies for its government-insured mortgages will help FHA better manage loan risk and losses. According to FHA’s latest monthly activity report, nearly 9 percent of the single-family mortgages it insures against default are at least 90 days past due. The record-high delinquency rate has sent the number of claims FHA has been forced to pay out skyrocketing and left its capital reserve fund depleted – falling below what’s required by law for the first time since the agency was formed.The FHA currently backs about 30 percent of all new loans for home purchases and 20 percent of refinanced loans. The agency’s share of the mortgage financing market has increased nearly 1,000 percent (yes, that’s 1,000) since 2006, as private lenders pulled back and the credit crunch set in – it’s a position that FHA Commissioner David Stevens says can’t be carried on for the long-term. He insists it’s essential that the federal mortgage insurer’s portfolio eventually return to pre-crisis levels and back to its original credo of providing financing for homebuyers in underserved parts of the country.But for now, Stevens said, “Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important.”Stevens called the new policy changes “the most significant steps to address risk in the agency’s history.”As part of the plan, FHA is increasing up-front mortgage insurance premiums paid by borrowers from 1.75 percent to 2.25 percent. The change will go into effect “in the spring,” the agency said.Stevens has also requested legislative approval to raise the maximum annual premiums that FHA can charge. If this authority is granted by Congress, then the second step will be to shift some of the premium increase from up-front to the annual fees assessed. FHA says this shift will allow it to increase capital reserves with less impact to the consumer, because the annual premium is paid over the life of the loan instead of at the time of closing.New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5 percent downpayment program. Homebuyers with less than a 580 FICO score will be required to put down at least 10 percent. This change is expected to take effect early this summer.Changes are being made on the seller side of the equation, as well. Beginning this summer, the amount that sellers can kick in – typically in the form of closing costs – will drop from 6 percent to 3 percent of the home’s value. FHA says the current level exposes the agency to excess risk by creating incentives to inflate appraised value, and the reduction will bring its criteria in line with industry standards on seller concessions.In addition to the policy changes introduced, the mortgage insurer plans to beef up oversight of FHA lenders. Beginning February 1, lender performance rankings will be available to the public on HUD’s Web site.FHA is also planning to implement statutory authority to enforce indemnification provisions for lenders that delegate their insuring processes, and is pursuing legislative authority to increase enforcement on FHA lenders. The authority would include requiring all approved mortgagees to assume liability for all the loans they originate and underwrite, as well as the ability to withdraw FHA approval for a lender nationwide if the performance of one of its regional branches is faulted.Robert E. Story, Jr., chairman of the Mortgage Bankers Association (MBA), commented “MBA supports FHA’s efforts to root out those lenders who pose undue risk to the program. We will work with FHA to ensure those efforts include fair and thorough investigations and appropriate due process for lenders who could be impacted.”The agency expects these steps to tighten up its standards will help mitigate rising defaults and pay-out claims, and give a much needed lift to its capital reserves in order to avert what so many economists are proposing – that the federal agency itself will need a taxpayer bailout.
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Posted by Mykel Martin on January 20, 2010 at 7:06am
Just read a Press Release from DS News that should give us all hope. California, Florida and Arizona can't be far behind!This Just Released According to DSNews - - -Bank of America Paces Release of Shadow Inventory in NevadaBank of America expects to release about 6,000 foreclosed properties into the Nevada housing market in 2010, about 500 a month, according to a local Las Vegas newspaper. The pent-up supply is part of that looming shadow inventory - a stock of distressed properties that have yet to hit the market because of banks' voluntary foreclosure moratoriums prior to the administration's Making Home Affordable program, complex modification evaluations, and lengthy short sale negotiations.
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Posted by Howard Bell on January 19, 2010 at 1:33pm
FHA Press releaseIn an effort to stabilize home values, HUD Secretary Donovan announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties.HUD will allow FHA financing for buyers of REO property. This is a temporary waiver of policy, good for one year. The hope is that it will help soak up supply and stabilize the markets. The waiver takes effect February 1, 2010 for one year.To avoid speculation or flipping of property, HUD has set down some stringent rules. They are certainly not looking to reignite the kind of speculation that was partly responsible for the collapse.No Speculators Allowed1. The transactions must be at arms-length.2. No entity of interest between the buyer and seller3. If the sales price of the property is 20% or more above the sellers acquisition cost, the waiver will only apply if the lender meets certain requirements.4. The waiver only applies to forward mortgages but not to the Home Equity Conversion Mortgages.5. FHA currently does not insure a seller owned mortgage, owned less than 90 days. The waiver may give offer borrowers access to FHA temporarily.The policy allows buyers buyers access to FHA-insured financing to buy HUD-owned properties, bank-owned properties, or properties resold through private sales.REsourced from www.yourpropertypath.comYou may republish this article, as long as you do not edit and you agree to preserve all links to the author and www.yourpropertypath.comRelated ArticlesMortgage Lock-Ins - What are theyMortgage Fees - What are they?Mortgage GlossaryRead more…
My blog about “ending the foreclosure crisis” was an idea to persuade banks to go along with such a program in exchange for the bailout they were getting, but I needed political cover. The plan was devised in mid 09 when there was lots of talk of nationalizing banks and having judges make decisions on bankruptcy for homeowners facing foreclosure. I was offering something that would avoid either of these but at the same time give foreclosure relief. My plan called for creating a “foreclosure clearing house” and it would work as such.1. All participating banks would be required to send the clearing house a notice on every homeowner who missed two (2) consecutive mortgage payments. The clearing house would determine what the homeowner could afford. If what they could afford is what the bank would get in a foreclosure NET, the homeowner would be given an opportunity to stay using the best program the bank could offer of new rate and term. If necessary a deferred amount would be placed on the back end and valued at %5 to 15% but non-performing as a lien to protect the bank for value return. NO MORE SHORT SALES.2. After the bank has given the best new program it has and the homeowner is still not able to afford the home based on what it would bring in foreclosure NET, the homeowner would be offered alternative housing. To be eligible for alternative housing, the homeowner would have to agree to having the %5 to 15% of the loss of the present home placed as a lien against the new home, but the bank would give them a mortgage in a home they could afford from another foreclosed home that bank owns or another bank owns. The amount placed as a lien would be non-performing and require no payment, but would protect the bank against the total loss as values return and the homeowner could not sell or refinance the home without dealing with the lien. This way the bank is protected against the total loss of mortgage balance vs. value as it would be in a foreclosure where the whole amount is loss forever if the foreclosure is done.3. When I was considering this at first, I was thinking of using it as a formula for the Government to decide on how to award bailout money. For every such dollar the banks would use as such, would entitle them to bailout money based on some formula. This would mean the government would not necessarily have to make the bailout payments it is making now but something of a reduced amount by mortgages saved by these means. This idea was developed in 09 at the height of the banking crisis. Now that banks have recovered somewhat it may not be as appealing but I still think it has merit to solving the foreclosure problem.4. If the homeowner moved before value was returned, the homeowner would be responsible for the lien amount, but not interest bearing. If they did not move and stayed in the home until value was fully restored, the lien amount would be considered before any equity would be payable to the homeowner and the amount the government had bailed out the bank would be released by the value restored and there would be a replenishing fund to banks based on this.5. Any home that could not be saved by this plan would become inventory for the my office initially or now a REOPRO branch office.. .There would be no need to nationalize banks or have judges make BK decisions. This would definitely cut down on foreclosures, stabilize communities and the economy. A group like REOPRO could run such a clearing house with member branches throughout the country. The structure of operation and compensation would have to be decided but I saw this as a service I would offer banks for a fee or commission. Banks would save a fortune in foreclosure dollar value lost and related expenses and should be willing to pay REOPRO representatives accordingly. With all the attempts of remodification, there are still serious foreclosure problems and they won’t go away. The idea of addressing the principal is the only answer to make these mortgages affordable and keep owners in these homes. I was hopeful that placing some of the principal on the back end would be encouraging for the banks. At the same time, getting homeowners to accept something less than the full amount should be an incentive for them. I have dubbed this program “whack and tack”. Whack it off the front, and tack it on the back. At some point in our economy, values have to return and everyone will be made whole again.
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Read this and more on www.preservationmonthly.comFORMER EXECUTIVE OF FAILED BANK PLEADS GUILTYFormer Bank Official Ignored Disclosure Reporting Requirements That Would Have Alerted Others to Massive Mortgage Fraud at Omni National BankJEFFREY L. LEVINE, 68, of Atlanta, Georgia, pleaded guilty today in federal district court to causing materially false entries that overvalued bank assets to be made in the books, reports and statements of Omni National Bank.Acting United States Attorney Sally Quillian Yates said, “This case demonstratesthe damage that can result when senior bank officials ignore rules and regulationsdesigned to protect a bank by identifying problem loans. Bank executives and those in critical and knowledgeable positions will be held accountable when they deliberately circumvent the systems designed to reveal the true condition of their bank to its regulators, insurers and investors.”Federal Deposit Insurance Corporation (FDIC) Inspector General Jon T. Rymer said, “The FDIC is tasked with liquidating the assets of failed banks such as Omni. Therefore, the FDIC OIG aggressively investigates and prosecutes fraudulent activities that undermine the integrity of the financial services system and impede the FDIC's efforts to maximize recoveries. We are pleased to have partnered with our law enforcement colleagues in bringing about this successful action.”Martin D. Phanco, Postal Inspector in Charge of the Atlanta Division said, “This investigation uncovered a fraudulent scheme which benefitted the defendant and other individuals. The U.S. Postal Inspection Service mission is to protect the U.S. mail system from criminal misuse like that demonstrated in this case.”Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Neil Barofsky said, “There were many reasons for our financial crisis, including fraudulent schemes like the egregious conduct admitted today. SIGTARP is committed to working with its law enforcement partners to root out these crimes whenever they can be discovered.”Department of Housing and Urban Development (HUD) Inspector General Kenneth M. Donohue said, “Families receiving Section 8 rental subsidies should expect safe, decent and sanitary housing. In this case, poor stewardship and management of the properties has negatively affected the neighborhoods and the entire community.”According to Acting United States Attorney Yates, the charges, and other information presented in court, LEVINE was Executive Vice President, the second largest bank shareholder, and head of the Community Redevelopment Lending Department at Omni National Bank from 2000 through October 12, 2007. To keep non-performing loans current on paper, LEVINE and others at Omni failed to disclose many exceptions to their policies and procedures which resulted in Omni being exposed to a greater risk of loss. Practices that went unreported included: diversion of loan proceeds escrowed for rehab; excessive credit concentrations to a single borrower; funding additional loans for Omni foreclosures at ever-increasing amounts; and failing to create sufficient reserves for those questionable loans or to properly record them on Omni’s books and records.Before takeover by the FDIC on March 27, 2009, Omni was headquartered in Atlanta with branch offices in Birmingham, Tampa, Chicago, Fayetteville, N.C., Houston, Dallas and Philadelphia. Omni borrowed Fed Funds at low rates to make high-interest, short-term loans through LEVINE’s Community Redevelopment Department to borrowers with less than stellar credit and often no steady employment or formal education. Such Omni borrowers were supposed to purchase and rehab distressed properties for prompt resale or Section 8 rental in run-down, inner-city neighborhoods.Borrowers were expected to do most of the rehab themselves within a few months of the loan, and qualify for a loan to purchase a second property only when the first property was sold, or ready for sale. Omni, its regulators and investors relied on the expected increased value of the property after rehab to be well in excess of the loan amount. The Redevelopment Department generated a significant portion of the Omni profits reported on its books and reports, although the facts now show that those profits were materially overstated.LEVINE and others were well aware that none of the foreclosed properties could be sold on the open market for the amount of the outstanding Omni loans. A number of foreclosures were never disclosed on the Omni books as required, and some properties were resold up to five times at ever-increasing amounts. The actions of LEVINE and others at Omni resulted in an overvaluation of bank assets, which in turn misled Omni’s outside auditors, its Office of the Comptroller of the Currency regulator, its FDIC insurer,the Securities and Exchange Commission, and Omni shareholders. Such practices contributed to the over 500 foreclosures and an additional 500 non-performing loans, which resulted in at least $7 million in losses to the FDIC. The evidence showed that the HUD Section 8 Program and its tenants also suffered, because many of the Omni-funded distressed properties were not rehabbed, but rather, stood vacant or were inhabited by squatters for years, corrupting other Section 8 properties and the community. Even if rented, the frequent Omni foreclosures resulted in unstable housing for Section 8 tenants, as well as increased crimes resulting from the vacant properties and transient tenants.LEVINE was charged in a Criminal Information on December 22, 2009, with making, and causing others to make, materially false entries that overvalued bank assets, in the books, reports and statements of Omni National Bank, and today pleaded guilty to this charge. He could receive a maximum sentence of 30 years in prison and a fine of up to $1,000,000. In determining the actual sentence, the Court will consider the UnitedStates Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. Sentencing is scheduled for March 23, 2010, at 2 p.m., before United States District Judge Jack T. Camp.Additional Omni-related prosecutions to date include:MMARK ANTHONY MCBRIDE, 43, of East Point, Georgia, who pleaded guilty on April 4, 2009, to fraudulently obtaining millions of dollars in mortgage loans from Omni and other lenders. MCBRIDE is scheduled to be sentenced on March 2, 2010 at 2 p.m., before United States District Judge Jack T. Camp. MCBRIDE remains in jail while awaiting sentencing.MBRENT MERRIELL, 37, of Atlanta, Georgia, was indicted on December 15, 2009, with six counts of aggravated identity theft and false statements in connection with his request to the FDIC for permission to “short sale” 14 properties for $2.2 million less than the Omni funded outstanding loans. MERRIELL was facing foreclosure on each of the properties when the charges allege that he submitted “short sale” requests supported by forged and counterfeited sales contracts and loan commitments in the names of four people whose identities had been stolen. MERRIELL has pleaded not guilty to the charges and remains in jail awaiting trial. No trial date has been set.MDELROY OLIVER DAVY, 37, of Lithonia, Georgia, was charged in a Criminal Information on December 18, 2009, with bank fraud and conspiracy to commit bank, mail, and wire fraud in connection with a scheme to fraudulently obtain millions of dollars of mortgage loans from Omni and other lenders. At his initial appearance DAVY waived indictment and announced his intention to plead guilty to those charges in January 2010. The plea hearing will be before United States District Judge Jack T. Camp. The hearing date has not yet been set.These cases are being investigated by Special Agents of a Mortgage Fraud Task Force for Omni-related cases, which includes FDIC-OIG, HUD-OIG, the Postal Inspection Service, the SIGTARP, and the FBI. The Task Force is continuing a number of Omni-related investigations, including inquiries related to Omni’s application for Troubled Asset Relief Program (TARP) funds.Assistant United States Attorneys Gale McKenzie and Christopher Bly are prosecuting the case.For further information please contact Sally Q. Yates, Acting United States Attorney, or Charysse L. Alexander, Executive Assistant United States Attorney, through Patrick Crosby, Public Affairs Officer, U.S. Attorney's Office, at (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.usdoj.gov/usao/gan.
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read this and more at www.preservationmonthly.comHUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERSMeasure to help bring stability to home values and accelerate sale of vacant propertiesIn an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes."As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers," said Donovan. "FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization."With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties."This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed," Donovan said.In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities."FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity."The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD's website.
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Come read this and more at www.preservationmonthly.comReal Estate Systems (RES.NET) Launches Accelerated Management Platform (AMP) for Real Estate Agents NationwideRES.NET is proud to announce their January 2010 launch of Accelerated Management Platform (AMP). Until now, Real Estate Agents were forced to manage their properties through separate processes and systems. RES.NET has changed all that with its Accelerated Management Platform (AMP). AMP will improve operational efficiencies by managing tasks, storing data, organizing prospects and contacts and give you global oversight of all of your listings and historical data. This platform will also give Real Estate Brokers and Agents maximum exposure to Industry service professionals within the RES.NET community.RES.NET, a Software application company established in 2003, by its parent company US Real Estate Services, Inc., created an REO management application for asset managers to manage real estate assets and connect with the entire supply chain. "RES.NET recognizes the real estate agent as the core element in any real estate transaction. Offering a full scale application to the agent was key in continuing to build RES.NET's community not only for today's business, but for tomorrow as well," said Todd Mobraten, US Real Estate Services Chief Operating Officer.RES.NET has diversified its applications by adding Property Valuation, Short Sale and the now the agent focused platform AMP. RES.NET's cutting edge technology brings the industry professionals together by connecting them with investors, closing companies, title agencies, property preservation organizations, attorneys and appraisers, just to name a few. RES.NET has and will continue to build its community by increasing connections, enhancing relationships, and accelerating businesses across the nation.
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I have doorknocked in the past but never made a routine out of it. I also work for Titanium Solutions but I usually don't get too many assignments all at once. I wanted to start marketing more so I started mailing postcards/letters to homeowners in default but, did not get the results I was hoping for and it cost some money.Today, I decided to doorknock on the doors of some homes that have a Notice of Default (I'm in California). They were spread out but I mapped them in such a way that they were all in the same general area. I came up with a flyer which contains some info. that applies to their situation. It's a Sunday and it looked like it was going to rain soon so I headed out about noon time.I planned on introducing myself as an agent in the area specializing in helping homeowners in distress and handed them my flyer with information. Some homeowners did not open their doors- maybe they weren't home or they had an idea of why I was there. So, I left the flyer at their front door. Some opened the door, took the flyer, and said thank you and closed the door without leaving much room for conversation. One of the homeowners said she was working on a loan mod and quickly took my flyer through a smaller opening in her front door. Another, looked at my flyer and said, "I think we're okay". He wanted to give me back the flyer but I told him to hold onto it. The homeowner that actually took 2 min. to speak with me said she's been working with the bank for 2 years and is trying to modify her loan. If it does not work out for her then "f**k the bank" and they can have the house. She said thank you and that she would not consider a short sale. At least two people looked afraid and unapproachable. There was a woman who said she's been getting a lot of "people like me" at her door. She said that she plans on keeping her home and that the only reason she is not paying right now is because that's the only way she could get a modification done. Anyway, the rain started to come down harder so I was done for the day.It wasn't an encouraging experience. I know that we must "keep trying" though, it's difficult. Does anyone have something to add that may be helpful?
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Posted by Howard Bell on January 15, 2010 at 4:21pm
Market Composite Index: (loan application volume) increased 14.3 percent on a seasonally adjusted basis from one week earlierRefinance Index: increased 21.8 percent from last week’s holiday adjusted index and increased 73.9 percent from last week’s unadjusted indexPurchase Index: increased 0.8 percent from one week earlier.Refinance Share of Mortgage Activity: increased to 71.5 percent of total applications from 68.2 percent the previous week unchanged at 4.0 percent of total applications from the previous week.Arm Share:: unchanged at 4.0 percent of total applications from the previous week.MBA outlook: (Excerpted from mbaa.org)The December jobs report was indicates a slow recovery. 85,000 jobs lost and an unemployment holding at 10 percent.Bloated inventories of unsold homes, buoyed by continued inflows of foreclosed properties, will keep a lid on home prices for some time. We do not expect more typical rates of home price appreciation until 2012. The Federal Reserve is unlikely to raise rates in 2010, but they will meet their commitment to purchase $1.25 trillion in agency MBS by the end of the first quarter.The MBAA anticipates that mortgage rates will rise by about a percentage point through the year, to end at 6.1 percent. Eye-popping federal budget deficits and positive economic growth will put upward pressure on Treasuries. Yields on mortgage securities will need to increase to get private investors back into the market once the Fed stops its purchases.Thanks for Readingwww.yourpropertypath.comRelated ArticlesThe Coming Mortgage Debt Reduction ProgramsFHA and Fannie Mae Propose Rule ChangeCitigroup Suggests Mortgage Debt ForgivenessRead more…
Posted by Howard Bell on January 15, 2010 at 4:21pm
Fixed-Rates Down Slightly While ARMs Are Mixed30-year fixed-rate mortgage: Averaged 5.06 percent with an average 0.7 point for the week ending January 14, 2010, down from last week when it averaged 5.09 percent. Last year at this time, the 30-year FRM averaged 4.96 percent.The 15-year fixed-rate mortgage: Averaged 4.45 percent with an average 0.6 point , down from last week when it averaged 4.50 percent. A year ago at this time, the 15-year FRM averaged 4.65 percent.Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 4.32 percent this week, with an average 0.6 point, down from last week when it averaged 4.44 percent. A year ago, the 5-year ARM averaged 5.25 percent.One-year Treasury-indexed ARMs: Averaged 4.39 percent this week with an average 0.5 point, up from last week when it averaged 4.31 percent. At this time last year, the 1-year ARM averaged 4.89 percent.Freddie SayzInterest rates for fixed rate mortgages eased a little further this week, while ARM rates were mixed, said Frank Nothaft, Freddie Mac vice president and chief economist. With fixed mortgage rates staying near a record low, many homeowners are taking the opportunity to refinance. For instance, over the past three-and-a-half months, on average more than 75 percent of conventional mortgage applications were for refinance transactions, according to the Mortgage Bankers Association.The Federal Reserve recently reported positive news in both the housing market and the overall state of the economy in its January 13th regional economic report, which spanned the last few months of 2009. Economic activity improved in 10 of its 12 districts. Home sales, especially for lower-priced homes, increased due in part to the homebuyer tax credit and house prices appeared to have changed little since its last reportThanks for Readingwww.yourpropertypath.comRelated ArticlesFHA and Fannie Mae Propose Rule ChangeFHA Losses: What it MeansFHA Has New RulesRead more…
