Posted by Howard Bell on January 9, 2010 at 4:30pm
Market Composite Index: (loan application volume) decreased 22.8 percent on a seasonally adjusted basis from the prior week.Refinance Index: decreased 30.5 percent from the previous week and the seasonally adjusted Purchase Index decreased 4.0 percent from one week earlier. The following week, the Refinance Index decreased 1.6 percent and the seasonally adjusted Purchase Index increased 3.6 percent.Purchase Index: decreased 33.1 percent the week of Christmas and increased 5.0 percent the week following. This measure was 26.2 percent and 28.2 percent lower, respectively, than the same period a year ago.Refinance Share of Mortgage Activity: mortgage activity for the week ending January 1, 2010 is 68.2 percent, a decrease from 69.6 percent for the week ending December 25, 2009.MBA outlook: (Excerpted from mbaa.org)In summary the MBAA sees another year of high employment, rising home sales and prices beginning to stabilize. But continued weakness in the job market and excess supply and shadow inventory will slow any recovery in the housing market.The MBAA sees unemployment rate at about 10% at the end of 2010, and core inflation rates of below 2%. Fed rate is expected to remain at its current level throughout 2010.But, property values will not recover until unsold inventory returns to normal levels. Affordability is at record levels, yet there is no strong indication that the demand recovering. People do not yet seem to trust the recovery and many do not have the necessary down payment or can clear tighter loan qualificationsThe MBAA site economic report indicates a fragile recovery, but makes note that without credit the recovery remains tepid at best. The site makes note: Smaller businesses and consumers are heavily dependent on banks for obtaining credit, and there is little evidence that, as yet, banks have loosened the purse strings.Bank loans to businesses and consumers are still falling with few signs of stopping or slowing down. Part of the decline is declining demand, but the fall is too large to be explained by weakness in demand alone. The banks are simply not yet stepping up to fill the vacuum.Thanks for Readingwww.yourpropertypath.comRelated ArticlesFHA and Fannie Mae Propose Rule ChangeFHA Losses: What it MeansFHA Has New RulesRead more…
Posted by Chris Treece on January 9, 2010 at 11:06am
Join me Monday, January 11th on The Chris Treece Show as my guest will be "The Networking Queen" Denai Vaughn. Show Time is 11AM CST. Call in number is 347-633-9495 www.blogtalkradio.com/Chris-TreeceDo more. Be more. Achieve more. YOU ARE WORTH IT! There are simple tools, tips and techniques for increasing our networking success both online and offline. The difference is knowing WHEN you are ready to go to the next level and WHO to have help you shoot for the moon! Denai's skills and talents are capitalized upon each and every day by men & women around the world who seek to grow their business and minimize their bottom line. She is a woman who prides herself in connecting others with WHO they need to know WHEN they need to know them. Through strategic alliances and synergistic partnerships she continues to network with some of America's most loved and most amazing people, companies, and organizations. Many are impacting the nations!Denai has been blessed by having amazing coaches and mentors in her life, to include the renowned Master of influence, Jason Sisneros, ever-knowledgeable Patrick Dougher of Doer Success Systems, and an incredible life coach, Darlene Stark. She continues her quest for knowledge by surrounding herself by the amazing instructors, to include the infamous Niurka, astonishing Michael Bernoff, Three-Time Olympian Rueben Gonzalez, comical Jerry Clark, sensational Chris Widener, and Erik "Mr. Brightside" Swanson. All have provided invaluable training, insight, motivation, and accountability. Another "feather in her cap" is being selected out of THOUSANDS to share the stage with many of these celebrities during their seminars and events throughout the United States!
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As we enter into 2010, I thought it would be nice to share some of the free technology items I have found that have made my job easier. Do you have freebies you want to share?1. PrimoPDF - a free PDF converter. Lets you convert almost any document to a PDF.2. PDFescape - online PDF editor - Great if you need to complete a form and return it, but wait, theres no printer around. Upload the PDF form and make entries or changes and save. Also keeps form neat and readable.3. HP Smart Web Printing - Lets you select only the area of a web page that you want to print and either print it or add itto other selected sections. It allows you to arrange the sections the way you want.4. My Live Signature - lets you have a personalized signature on emails, blogs, etc.Read more…
LAMCO Implements Vendor Management Process- REO asset management company vets service providers with measurable standards, continual performance checks -Lenders Asset Management Corporation (LAMCO), a full-service, nationwide REO management company, announced the formal development of its LAMCO Vendor Management Process, which evaluates LAMCO-endorsed vendors using several measurable qualifications, facilitating a foundation of long-term, mutually beneficial relationships with its service providers.LAMCO qualifies new vendors and manages ongoing service provider relationships using the elements of TQRDCEB, a framework developed by Hewlett Packard Company. Vendors are evaluated on technology, quality, responsiveness, delivery, cost, environment and business impact using a score card system based on a weighted strength ranking. Service providers are selected as a LAMCO vendor based on their performance within the TQRDCEB system and are routinely evaluated on the same scale to measure performance, identify areas of improvement and promote an environment where the status quo is challenged.Each area of the TQRDCEB management process includes expectations and best practices that must be demonstrated by vendors, such as meeting or exceeding service level agreements (SLAs), demonstrating quality and reliability with all work orders, and maintaining familiarity with LAMCO technology and system requirements. By scoring well within the TQRDCEB process and meeting the expectations set forth by LAMCO, vendors increase the opportunity for repeat business, resulting in increased sales and profits.“By developing and maintaining strong relationships with its vendors during the course of 20 years, LAMCO has been able to work on process improvements that continually add value, reduce costs, mitigate risk and enable LAMCO to adapt to market conditions and client needs,” said Brandon J. Hawkes, CEO of LAMCO. “Service providers are selected based on sound qualifications and must maintain a high level of service monitored through repeat evaluations in order to continue as a LAMCO vendor.”
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Clear Capital™ Reports 2009 Year-Over-Year Home Price Decline Smallest in Three YearsWith December numbers in, 2009's national home prices rebound from slow start to post modest -1.3% yearly price change; Detroit's 17.4% quarterly home price gain continues to lead major U.S. markets; and Las Vegas sees first positive quarterly price gain (1.1%) in more than three years.Clear Capital (www.clearcapital.com), a premium provider of data and solutions for real estate asset valuation, investment, and risk assessment, today released its Home Data Index™ (HDI) Market Report. Patent pending rolling quarter technology significantly reduces the multi-month lag time associated with other indices to help investors, loan servicers and individual buyers and sellers make more informed, timely and profitable decisions. This month's report features data compiled through Dec. 24, 2009.Report highlights include:· National / Four Region Overview: National quarterly price gains remain positive (1.7%) this month, as did the Midwest (4.1%), South (1.2%), West (1.2%), and Northeast (0.4%) regions. Yearly national home prices rebounded from a dismal 2008 (-20.4% price change year-over-year) to post a modest yearly price change of -1.3 percent in 2009. The national REO saturation rate also dropped 16 percentage points from the beginning of the year, to 25.5 percent at the release of this report.· Metropolitan Statistical Area (MSA) drilldown: Detroit, Mich. followed up its strong performance last month to once again lead the highest performing markets with a 17.4% gain. Overall, home prices continue to improve with seven of the fifteen highest performing markets posting positive yearly gains. Compare that to this time last year, when only one market returned positive year-over-year marks.· Micro Market Analysis: The Las Vegas, Nev. MSA turned in its first positive quarterly price gain in more than three years (1.1%). While its yearly price decline (-27.4%) is still high, Las Vegas is showing signs of transitioning from home-price free-fall, to more traditional trends.The Clear Capital HDI Market Report offers the industry, investors and lenders a near real-time look at pricing conditions not only at the national and metropolitan level, but within local mar-kets. Clear Capital data is built on the most recent data available from recorder/assessor offices, and then further enhanced by adding the Company's proprietary market data for the most comprehensive geographic coverage available."After watching home prices plummet the past three years, it is encouraging to see the year close with minimal price declines," said Kevin Marshall, Clear Capital President. "The stronger positive gains we saw this summer have softened into the fall and early winter, but it's good to see that they've remained in positive territory. It's remarkable that home prices for the nation as a whole were generally flat for 2009, given this year's volatility that included record declines early in the year, followed by the gains of summer and fall."National/Four Region Market Overview (Nov. 25, 2008 - Dec. 24, 2009)As 2009 draws to a close, national price gains remained positive, returning a 1.7 percent change this quarter. Regional quarterly results remained positive as well, with the Midwest returning 4.1 percent gains, followed by the South and West (1.2%), and Northeast (0.4%).The financial turmoil that began this year has been replaced with a dose of incentivized optimism. Homebuyer credits mixed with low interest rates have helped return homebuyers to the marketplace. At the same time, loan modification programs have helped regulate the new supply of distressed properties. Throughout 2009, these factors contributed to the national REO saturation rate dropping from 41.5 percent in the first quarter, to 25.5 percent at the release of this report. While remaining high by historic standards, this downward swing in REO saturation helped drive prices up during the summer months, stabilizing home prices from the -20.4 percent yearly change experienced in 2008.After sustaining early losses in the winter months of 2009, national home prices rebounded to post a modest yearly price change of -1.3 percent. Stronger summer gains, followed by continued, albeit softening, quarterly gains in the fall and early winter helped make up most of the losses sustained in the first quarter of this year.Continued improvement from the double-digit yearly losses reported in all regions earlier this year is clearly visible—especially the Midwest (4.4%) which experienced a positive bounce off earlier lows. Additionally, the South closed in on positive yearly gains (-0.8%); the Northeast (-2.4%) was able to retain most of its value with improved gains the last half year; and even the more substantial losses in the West (-7.5%) were an improvement from the same time a year ago.Metro Markets (Nov. 25, 2008 - Dec. 24, 2009)This list of the highest performing major markets is quite an improvement over what the markets were experiencing at the end of 2008. All major markets from this month's list experienced positive quarterly price changes, averaging 5.7 percent. Detroit was once again this month's quarterly top performer with price gains of 17.4 percent. Detroit's market continues to be driven by REO sales (50.6%), where prices continue to rise from their steeply discounted levels of early 2009.Seven of the 15 markets posted positive yearly results as well. When you remove the 63.8 percent yearly gains of Cleveland, Ohio (which was subject to dramatic price shifts among its large REO segment), the remaining 14 markets averaged a nearly flat yearly return of -0.3 percent.Compared with this time last year, only one major market (Rochester, N.Y.) saw positive yearly price gains, and all of the highest performing markets were experiencing quarterly losses. Further, Atlanta Ga.; Minneapolis, Minn.; Phoenix Ariz.; Riverside, Calif.; San Francisco, Calif.; and San Jose, Calif.; all on this month's highest performing major market list, were among the lowest performing major markets one year ago. This volatility is largely a reflection of heightened REO influences that continues today.Such swings in price change have made it difficult for nearly everyone, from policy makers to banks and investors, to keep an accurate account of current trends. This has hindered the ability to set policy, adjust REO strategy, price collateral and/or judge the success of loan modification and moratorium programs. While heightened REO activity will continue into next year, the pause in price declines during the second half of 2009 has allowed all parties to gain perspective on current trends, and be better prepared for whatever the market brings in 2010.All markets on both the lowest and highest performing major market lists experienced improved yearly price changes compared to last month, with the exception of Baltimore, Md., which saw its yearly price change slightly drop another 0.1 percentage points to end up at -8.8 percent. Similarly, all markets saw REO saturation rates decline (generally considered an improvement) since last month, except for two—Raleigh, N.C. and Columbus, Ohio. In contrast to the yearly improvements, quarterly prices softened, a continuation of the trend reported last month and a sign of the typically slower winter months.The larger quarterly declines in Milwaukee, Wis. and New Haven, Conn. were more closely aligned with the broader slowing reported last month, as heated summer sales were replaced by more muted sales of fall. However, the changes for all 15 of the lowest performing markets are modest compared to the summer run-up, and the declines have slowed compared to last month's report. With holiday foreclosure moratoriums and the extension of the homebuyer credit now secure, it's less likely a significant upwards swing in REO rates will occur next month.At the end of 2008, the fifteen lowest performing markets posted double-digit quarterly declines, and yearly declines between 20 and 40 percent. The dire straits experienced in 2008 are put into perspective when compared to the conditions at the end of 2009. As of this report, quarterly declines are now all less than four percent, and yearly price changes are a mix of modest gains and, except for Orlando, Fla. (-25.8%), sub-twenty percent losses.Micro Markets (Nov. 25, 2008 - Dec. 24, 2009)This section highlights a single market every month with a deeper dive into how the micro and macro-markets relate to each other.After home prices peaked in mid 2006, Las Vegas saw its percentage of REO sales grow to dominate the market, easily surpassing the 50 percent mark by mid-2008. Las Vegas has seen few signs of hope as home prices have fallen 63.7 percent since their peak, and the city has faced oversupply from new construction and near-new construction re-entering the market as short sales and REOs.Today, while Las Vegas maintains a 53.3 percent REO saturation rate, home prices have flattened with the first quarterly price gain (1.1%) in more than three years. While still considered a distressed market (yearly price change of -27.4%), the transition of home prices from a free-fall to almost flat has been gradual over the past six months for the market in its entirety. The flattening of home declines was fueled by the attractiveness of reduced prices and an inventory shift to short sales. Short sales, generally less attractive to purchasers due to the complexities and timeframes of the process, have made the steeply discounted REOs more attractive to home buyers.While no micro market within the Las Vegas metropolitan area has seen yearly price declines better than ten percent, there are variations in loss severity throughout 2009. Just off the Las Vegas strip, ZIP 89109 was the hardest hit micro market, posting a yearly price change of -45.1 percent. This area suffered from a large supply of investor-driven condominiums (nearly three-out-of-four sales were REO) built just prior to the market's peak. The oversupply of condominiums, combined with limited financing options, prevented any sustained reduction of REO properties.The best performing micro market (ZIP 89134) lies northwest of downtown Las Vegas, in an attractive area west of Interstate 95 and north of Summerlin Parkway. While the area's 48.4 percent REO saturation rate is not considered healthy, it's largely free of the downtown condominium supplies, and since late 2008, has managed to slowly improve its REO picture. Composed largely of decade-old single family residences which many find attractive, this area saw prices change only -14.5 percent for the yearthe smallest loss among the Las Vegas metropolitan area.It will take some time for the REO saturation picture to improve for the greater Las Vegas area, and prices will continue to be subject to its influence. However, the home price stabilization experienced in 2009 improved the sellers' ability to move certain inventories, a hopeful sign that any future introductions of REOs to the marketplace might be better absorbed than in recent years.
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From DS News- Author: Brittany DunnFannie Mae Adopts New REO Policy01/06/2010 By: Brittany DunnIn an effort to expedite REO sales, Fannie Mae has adopted a new policy. As part of this policy, Fannie Mae may accept offers to purchase homes it has repossessed withoutnotifying loan servicers, and loan servicers may be required to reimburse Fannie Mae for a loss if it turns out the original mortgage on the home did not meet its eligibility or underwriting requirements, Inman News said Wednesday.Previously, if there was a question over whether a mortgage on a repossessed property met Fannie Mae’s requirements, servicers were given 15 days to turn over loan files for review. Rather than reimburse Fannie Mae for an incurred loss, loan servicers had the opportunity to try and find a better offer for the property or buy it themselves.The rules have changed, though. In a recent announcement to loan servicers, Fannie Mae said it has implemented a change regarding assurance reviews. When the company is notified that a property has beenacquired, it will begin the disposition process by obtaining opinions on the market value of a repossessed home and list it with a real estate broker.“When Fannie Mae receives an offer to purchase a property that is also subject to an underwriting or servicing review, Fannie Mae may accept the purchase offer without first notifying the servicer, whether or not a final decision has been reached with respect to the review,” Fannie Mae said in its announcement. “If, after completion of the review, Fannie Mae determines that the mortgage loan did not meet its eligibility or underwriting requirements and Fannie Mae has incurred a loss by selling the property, the lender will be required to fully reimburse Fannie Mae for its loss.”These changes come after recent reports from Fannie Mae showing an increase in the acquisition of foreclosed properties and an escalating rate of seriously delinquent single-family home loans.According to its most recent quarterly report, Fannie Mae acquired 98,428 homes through foreclosure during the first nine months of last year and sold 89,691 REO properties during the same period. However, at the end of September Fannie Mae still had 72,275 REO properties on its books, marking a 7 percent increase year-over-year.Furthermore, Fannie Mae’s monthly summary for November showed notable growth in seriously delinquent single-family home loans held or guaranteed by the company. Up from 1.89 percent in November 2008, loans three or more months behind in payments or in the foreclosure process soared to 4.98 percent in November 2009.
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Posted by Howard Bell on January 6, 2010 at 5:09pm
Quarterly reports are out. NAR, Case Shiller, Consumer Confidence reports all indicate that the housing recovery is faltering to flat. Much of the Govt supports will be slowly exiting as the Fed tests the normal functions of an economy replace Federal aid.ResidentialCase Shiller and NAR reports show continued weakness and everyone is wondering whether the recovery is waning. Case Shiller notes that the rate of decline in home prices slowed in October from the previous month, and prices remain flat after the spring and summer gains. Home price Indices of its its 10-city and 20-city composite indices declined 6.4% and 7.3%, putting home prices at 2003 levels. A flat report is not as bad as much of the last two years, but some Govt programs are being phased out see chartNAR site points out that on a month-to -month basis,only seven of the 20 cities showed improvement. NARs data for November showed prices down 4.3% year-over-year. Foreclosures continue to be the problem, making up 30% of the third quarter’s home purchase.Moodys points out that there are 3 million more homes in the pipe and that another 3 million are 30-60 days late. These homes are in a foreclosure pattern. New Home Sales: The government reported that sales of new homes dropped a sharp 11.3 percent, an indication that supply is still greater than demand.ApartmentsThe apartment market is showing signs of improvement, according to the National Multi Housing Council’s latest Quarterly Survey of Apartment Market Conditions. Although the survey still indicates higher vacancies and lower rents, we see increased sales activity and greater availability of debt and equity capital compared with three months ago. Apartments have long been considered the better investment, partly because there is financing available and they didnt participate in the building boom of single family homesFollow The MoneyThe American Recovery and Investment Act of 2009Will pump more economic stimulus money into federally subsidized apartment units, while HUD’s budget proposal for next year seeks another $1.8 billion for construction of rental housing.GreenHUD and the U.S. Department of Energy are working together to offer more financial incentives for owners to retrofit properties for energy efficiency. Another economic stimulus plan enacted earlier this year provided funds for green retrofits. Larger property owners of commercial buildings including apartment complexes whereconservation of energy had the greatest impact. Hopefully, some of this money will trickle down to smaller owners.Fannie and FreddieCongress had placed a cap on spending of $200 billion dollars on each. On Christmas eve, Obama lifted the cap through 2012, giving the two quasi public institutions a blank check. I think this points very clearly to the next big wave of foreclosure that will stem from the Alt A and commercial mortgage recasts that will be coming due between now and 2012. A blank check (read big money problems) is whats next.The Stock MarketREITSThe Dow Jones Equity All REIT Total Return Index is up 31% this year, reversing a 38% decline in 2008, beating the S&P 500 by 25%. Given all the flat to downright ugly news still coming out it seems counter intuitive that real estate funds would be doing so well.They have been raising money issuing new shares and selling property whenever they can. In short, they have been raising money for whats expected to be a generational opportunity in good properties coming on the market at great prices. The ishares industrial/office and retail REITS are up 10.7% and 11.2% respectively in November/December alone. Even mortgage REITS are up 3.8% for the same period. Heres what they are looking at...Real Estate RubbleBloomberg reports that commercial property prices have fallen by 30 percent to 50 percent wiping out the equity in most debt financed real estate deals since 2005. This equals as much as 54 percent of the $1.4 trillion in loans that will come due in four years, according to Randall Zisler, chief executive officer of Zisler Capital Partners LLC (via Bloomberg News).Mr. Zisler goes on to say that much of the debt is likely worth about 50 percent of par. Many banks will end up insolvent as they reduce the value of their holdings, he wrote, adding that regional and community lenders are especially vulnerable.Stock markets are forward looking mechanisms and the REITS are looking passed the problem to great future buying opportunities. If the banks are holding so much bad paper, then it will be taxpayer money (those blank checks) and private investment money (REITs) likely final owners of all this real estate rubble. I know that investors will cherry pick and to drive hard deals to profit. I wonder if that leaves us, the taxpayers, to buy whats left.... Its all in the oversightThanks for Readingwww.yourpropertypath.comRelated ArticlesNAR: Existing Home Sales ReportShould You Stop Paying Your MortgageStock Market Views On The Housing RecoveryThe Coming Mortgage Debt Reduction ProgramsRead more…
Fannie Mae has a new policyFannie Mae has adopted a new policy in which it may accept offers to purchase homes it has repossessed without notifying loan servicers.Fannie Mae can request Loan Servicers to reimburse them for a loss if the original mortgage on the home did not meet its underwriting requirements and or eligibility requirements.Loan servicers had the option of trying to find a better offer or buy it themselves rather than reimburse Fannie Mae for any loss, only after the allowed 15 days to turn over loan files for review if there was a question over whether a mortgage on a repossessed property met all the requirements."If, after completion of the review, Fannie Mae determines that the mortgage loan did not meet its eligibility or underwriting requirements and Fannie Mae has incurred a loss by selling the property, the lender will be required to fully reimburse Fannie Mae for its loss," the company said in a bulletin to loan servicers.Read the Bulletin:Amends these Guides: Servicing Miscellaneous Servicing Policy ChangesIntroductionThis Announcement contains several updates and clarifications to various servicing policies, as itemized below:Temporary Review Period for Active HAMP Trial Modifications Scheduled to Expire on or before January 31, 2010On December 23, 2009, the Treasury Department issued Supplemental Directive 09-10: Home Affordable Modification Program – Temporary Review Period for Active Trial Modifications Scheduled to Expire on or before January 31, 2010, implementing a temporary review period for all active HAMP trial modifications scheduled to expire on or before January 31, 2010. Effective immediately, Fannie Mae servicers are required to comply with the requirements of Supplemental Directive 09-10 for all conventional mortgage loans with active trial periods scheduled to expire on or before January 31, 2010 that are either held in Fannie Mae’s portfolio, part of an MBS pool that is serviced under the special servicing option, or a shared-risk MBS pool for which Fannie Mae markets the acquired property.Clarification on the Retirement of Risk Profiler Servicing Guide, Part VII, Section 209: Using Risk ProfilerIn Announcement 09-22, Miscellaneous Servicing Policy Changes, Fannie Mae announced that Risk Profiler, Fannie Mae’s behavioral scoring model that predicts the likelihood of default,Announcement 09-38 Page 1would no longer be available on or after October 1, 2009. Servicers were instructed to service all mortgage loans owned or securitized by Fannie Mae by using the servicing guidelines as outlined in the applicable sections of the Servicing Guide.Effective immediately, a servicer may choose to use a model to assist the servicer in predicting the likelihood of default or foreclosure, and to use the results of the model to target its collections and default management practices as long as the servicer's collections and default management practices meet or exceed the minimum standards as outlined in the applicable sections of the Servicing Guide.Quality Assurance Reviews for Acquired Properties Servicing Guide, Part I, Section 301.02: Fannie Mae’s Quality Assurance Reviews; and Part VIII, Section 303: Consideration of Purchase OrdersFannie Mae is announcing a recently implemented change regarding quality assurance reviews. When Fannie Mae is notified that a property has been acquired, Fannie Mae begins the disposition process by obtaining opinions on the market value of the property, preparing the property for sale, and listing it with a real estate broker. If Fannie Mae has required a file for review, Fannie Mae will begin the process of reviewing the file to determine whether the mortgage meets Fannie Mae’s requirements.When Fannie Mae receives an offer to purchase a property that is also subject to an underwriting or servicing review, Fannie Mae may accept the purchase offer without first notifying the servicer, whether or not a final decision has been reached with respect to the review. If, after completion of the review, Fannie Mae determines that the mortgage loan did not meet its eligibility or underwriting requirements and Fannie Mae has incurred a loss by selling the property, the lender will be required to fully reimburse Fannie Mae for its loss.LIBOR Index Servicing Guide, Part IV, Section: 201, Monitoring the Index; and Section 202: “Look-Back Period”Fannie Mae is clarifying that servicers must use the LIBOR index values in the print edition of The Wall Street Journal to determine an interest rate change. Servicers must establish procedures to monitor the index to ensure that the correct index value is used in determining the new interest rate.Servicer Reporting of Address Changes to Fannie Mae Servicing Guide, Part X, Section 203: Transaction Type 82 (Loan Address Change Record)Fannie Mae’s servicer and investor reporting platform captures loan-level detail on mortgage loans that are serviced on behalf of Fannie Mae. It is critical that Fannie Mae have the most up-to-date and accurate information on these loans, and there are established transaction types thatAnnouncement 09-38 Page 2Announcement 09-38 Page 3are used by servicers to transmit updated data to Fannie Mae. These transaction types are described in Part X, Chapter 2 of the Servicing Guide.Effective with this Announcement, servicers are required to transmit property address updates to Fannie Mae using Transaction Type 82 (Loan Address Record Change) to correct not only renumbered or renamed streets or zip code changes due to postal realignments, but also to correct any errors in the property address transmitted to Fannie Mae at the time of delivery, e.g., misspelled street names or missing unit numbers. In addition, Fannie Mae is clarifying that addresses that include a post office box are not acceptable.In accordance with Fannie Mae’s DU Refi Plus™ and Refi Plus™ products that provide expanded refinance opportunities for existing Fannie Mae borrowers, it is imperative that servicers consistently update property address in a timely manner. Fannie Mae will use this information to ensure the existing mortgage is owned or securitized by Fannie Mae, and confirms that the existing loan is eligible for these refinance flexibilities. When the information is not accurate, borrowers may experience delays in the refinance process until such time as the information is updated or eligibility is confirmed through other means.
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Premiere Provider of Collateral Valuation for Residential Mortgage Backed Securities Now ASF LINC™ CompliantClear Capital (www.clearcapital.com), a data and solutions leader for real estate asset valuation, investment and risk assessment, today announced the company has updated its systems to accept the American Securitization Forum Loan Identification Number Code (ASF LINC™)—a new standardized universal code that creates greater data transparency at the collateral level. ASF LINC, jointly developed by ASF and Standard & Poor’s Fixed Income Risk Management Services (FIRMS), is designed to identify crucial information about individual loans that are securitized in the mortgage- and asset-backed securities markets.Clear Capital’s use of the most progressive technology available and its speed-to-service mindset enables the Company to respond quickly to industry needs such as integrating ASF LINC data into its systems. “We’re eager to work with the industry to help facilitate a new generation of more transparent reference data for origination and securitization models,” said Kevin Marshall, Clear Capital President. “We strive every day to offer deeper levels of transparency at the loan level while providing intelligent valuation solutions for residential mortgage backed securities.”The sixteen-digit ASF LINC captures the loan type, origination date and country of origin, as well as randomized alphanumeric data, to create a unique ID for a wide range of loans that may be pooled and sold into the capital markets.A sample of the code can be found at the ASF website:http://www.americansecuritization.com/uploadedFiles/ASF_LINC.pdfRead more…
Contract activity for pending home sales fell after a surge of activity in preceding months to beat the original deadline for the first-time home buyer tax credit but remains comfortably above a year ago, according to the National Association of Realtors®.The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in November, fell 16.0 percent to 96.0 from an upwardly revised 114.3 in October, but is 15.5 percent higher than November 2008 when it was 83.1.Lawrence Yun, NAR chief economist, said a drop was expected. “It will be at least early spring before we see notable gains in sales activity as home buyers respond to the recently extended and expanded tax credit,” he said. “The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own. We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.”Buyers who have a contract in place to purchase a primary residence by April 30, 2010, have until June 30, 2010, to finalize the transaction to qualify for the tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.The PHSI in the Northeast dropped 25.7 percent to 74.4 in November but is 14.7 percent above a year ago. In the Midwest the index fell 25.7 percent to 82.0 but is 9.2 percent higher than November 2008. Pending home sales in the South fell 15.0 percent to an index of 97.8, but are 14.7 percent higher than a year ago. In the West the index declined 2.7 percent to 124.6 but is 21.4 percent above November 2008.Yun projects an additional 900,000 first-time buyers will qualify for the extended tax credit in addition to about 2 million who have already purchased; 1.5 million repeat buyers also are expected to benefit from the credit.“Many trade-up buyers, who have historically timed their purchase based on school-year considerations, will have to accelerate their buying plans if they need the tax credit to make a trade,” Yun said. Repeat buyers do not have to sell their existing home to qualify for the credit, but they must occupy the home they buy as their primary residence.Yun added that mortgage interest rates cannot remain at rock-bottom levels for a sustained period and will likely inch higher in 2010. But the tax credit impact in the first half of the year and expected job growth impact in the second half will support home buying activity and absorb enough inventory to bring a rough balance between buyers and sellers. Home prices are expected to stabilize or even modestly rise as a result in 2010.
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It’s funny, we have all heard the same things over and over, that it’s all between the ears, keep a positive attitude, it’s what you think, keep a vision board, etc. etc. I have always been an open minded person, however; I have also been skeptical when it comes to visualizing. Approximately one year ago, I decided to test the law of attraction. My husband and I had been living in our previous home for 10 years. It was one of those cookie cutter types built by a mass builder and we had every intention of staying there at least another 5 years. I was showing property at the time to a middle aged couple and one of the homes that I showed them was a 2,100 square foot, one level, newly constructed beauty with custom wooden floors, granite counters throughout kitchen, bathrooms and laundry room, it had all the bells and whistles that my future home would one day have. It was beautiful. My couple decided on another state entirely. I found out the home had been on the market for 10 months and could not believe it had not yet sold. On a whim I showed the home to my husband and said this is what I want us to have one day. The market had slowed down at this time and I knew it wasn’t a good time to put our home on the market; it also needed a lot of updating. The dream home was on my mind constantly; I took the MLS sheet and put it on my experimental vision board. I saw myself and my husband in this home when I had the time to day dream. I showed the home several more times including to my team partner. Two weeks after my initial showing, the listing agent called me and wanted to know if my husband and I were interested in purchasing it, I said no, we would have to fix up our home and put it on the market and by that time, this listing would be gone. A couple of days after this conversation, the listing agent called and said that the seller/builder wanted to buy my current home if we purchased his home (my dream home). He had not even seen my current home, it was a bit unrealistic, but he came that weekend, did a walk thru and that was that. We wrote up the contracts and my husband and I are now living in our dream home. Does The Law of Attraction really work? Try it, it can’t hurt.
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Every year at this time I have to sit down and think about what to spend my REO budget on again. RES.Net & reotrans (now equator) are always at the top of my list but there are TONS of other sites and some look good but I don't have enough feedback to make an informed decision. Others looked good last year but didn't make the cut in production. Many are affiliates (read: owned by) the banks, asset managers & other interrelated companies and others lead to bpo business only and nary an REO in sight. What to do?? It's easy to spend a fortune and our budgets need to be targeted to produce results.I'd love to hear what the rest of you are budgeting for this year and what companies are producing the best results. I haven't tried Lamco before and would like to hear from anyone who is with them. They've been at it a long time and have just come out with a new platform that is supposed to be good.Happy Closings in 2010 :)
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Posted by Chris Treece on January 4, 2010 at 4:52am
Social bookmarking has become a powerful tool for many online business people, and you are losing a lot if you do not know how to use social bookmarking for your website's advantage. Take note that almost everybody has been using this traffic generating tool, so you have to make the most out of social bookmarking.Social bookmarking is one of the top techniques that you can use to promote your website and build more traffic. If you're not involved, it's time to get with the program!Social bookmarking started for me when I joined a few of the top social bookmarking sites. You may think this is all you need to do to get involved, but trust me – there is more to social bookmarking than simply joining the social bookmarking circles!The first thing to do is visit a few of the top social bookmarking sites: Digg, del.ici.ous, Furl, and Yahoo, just for example. You can do a Google search for these to find them if you've never been there before.Then, sign up for a free account with each of these. When signing up for an account, you will have the opportunity to select buttons that you can add to the end of each of your blog posts. This will allow readers of your blog to "Digg" your post over at the Digg social bookmarking site.When someone clicks on your Digg button, it will bring them to the Digg site, where they would login with their account username and password. The blog post or article would then appear as a URL, and the person who clicked "Digg" will have the opportunity to post a comment about your post.This can do nothing but good things for your website. If everyone gives your post a Digg, think of all the links in Digg you will have pointing back to your site. This will certainly increase your traffic when someone goes onto Digg looking for a post on a topic that interests them.This is where I initially went wrong in my social bookmarking efforts. You don't want to stop after just joining these social bookmarking sites and leaving a button on your blog posts for everyone else to find and click. You want to get actively involved in the social bookmarking process by becoming an active member of these sites.What I mean by being "active" is that you want to visit these sites, and find topics of interest to you, or topics that relate to your online business. Once you find other posts on your topic of interest, then you have the opportunity to bookmark, or "favorite" those posts, and add a comment.Doing this can really increase your traffic, as evidenced by my own increasing website stats just by doing this one thing alone. If you "favorite" other people's sites and they "favorite" your site and you each comment on other's posts, then you will soon have a network of links pointing back to your site.This important piece of the social bookmarking puzzle is something I didn't even realize myself until I got involved with my latest social bookmarking site called "Squidoo". Apparently, Google just loves Squidoo at the moment, so I jumped on the bandwagon along with others I know joining the site.The great thing about Squidoo and sites like MySpace is that you can create a "lens" which is just like a mini web page, or landing page that gives visitors to that lens a quick overview of what you have to offer. This will hopefully entice them to click your links and bring you more traffic.I've made darn sure this time that after creating my lens I did not just leave it at that. I have visited other lenses on my topic of interest, added those lenses to my "favorites" list, and sent comments to others in hopes that others will visit my links as well. So far, this has increased my traffic very quickly and I may even reach a personal goal thanks to this technique alone!Next, I am going to try creating more than one lens and link one to the other, which will hopefully entice visitors to read one of my lenses, and then click on to the other, increasing my traffic even more!The thing to watch out for when using social bookmarking sites is that you don't want to be a spammer who is out there just to get your links seen and clicked. As with anything in internet marketing, like forum posts, no one likes someone who is just there to advertise themselves. You want to offer valuable information, and make a valuable contribution by offering good advice, and great content.
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Posted by Linda Landry on January 3, 2010 at 5:50am
Yes it is true. I am one of the homeowners underwater. I recently disclosed that to a friend and her reply was 'I won't tell anyone'. Nice gesture on her part but totally not necessary. Within the last week I was approached by a financal adviser who volunteered to review my docs on the premise that his company has been able to negotiate through the Courts and prove that the current lien holder was unable to provide a deed to coincide with the loan thereby allowing the mortgagor to obtain the property free and clear from the current mortgagee. Although he qualified his statement by saying he could not give me legal advice he suggested, as a friend, that I stop making payments toward the mortgage as being in the foreclosure process would add a sense of urgency to the Court. The written contract requires a minimum $1500 non refundable fee and a promise to expunge negative credit bureau reports if/when the suit is won as well as other stipulations too detailed to enumerate. My point is this: Yes, I am underwater but I am not drowning. I cannot in good faith arbitrarily stop making my house payment. Not only does it go against my personal grain; I do think that a Court would see that I was intentionally attempting to pull one off on the lender. Despite the fact that the lender may deserve it since I have been negotiating, to no avail, with them for more than a year to modify my loan to a fixed rate at minimum. However, this seemingly rampant rush to jump overboard seems to be exacerbating the current dilemma in the housing market. Yes, I am underwater but still able to row the boat. If I loose my oars I will need to rethink. For the time being I will continue my trek to shore and my a diligent effort not to become a statistic for foreclosure.Linda Landry, REALTOR ® Exit Realty 1st Choice Tucson, AZ
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Posted by Howard Bell on January 2, 2010 at 4:36pm
30-Year and 15-Year Rates Still at Incredibly Low Levels30-year fixed-rate mortgage: Average 0.7 point for the week ending December 31, 2009, up from last week when it averaged 5.05 percent. Last year at this time, the 30-year FRM averaged 5.10 percent.The 15-year fixed-rate mortgage: Averaged 4.54 percent with an average 0.7 point, up from last week when it averaged 4.45 percent. A year ago at this time, the 15-year FRM averaged 4.83 percent.Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 4.54 percent with an average 0.7 point, up from last week when it averaged 4.45 percent. A year ago at this time, the 15-year FRM averaged 4.83 percent.One-year Treasury-indexed ARMs: Averaged 4.33 percent this week with an average 0.6 point, down from last week when it averaged 4.38 percent. At this time last year, the 1-year ARM averaged 4.85 percent.Freddie SayzAlthough long-term mortgage rates rose for the fourth week in a row, they still remain affordable by historical standards, said Frank Nothaft, Freddie Mac vice president and chief economist. Based on todays median loan amount of $138,000, monthly principal and interest payments for a 30-year fixed-rate mortgage are close to one third less than a decade ago when rates peaked at 8.6 percent in May 2000.This translates into almost 50 percent less in interest payments over the full 30 year term. Nationally, the housing market is slowly improving. House prices rose for the fifth consecutive month in October to the highest level since the beginning of 2009, according to the S&P/Case-Shiller 20-city composite index . Eleven of the cities experienced positive growth.Thanks for Readingwww.yourpropertypath.comRelated ArticlesFHA Has New RulesLoan Modification: A PrimerRead more…
Posted by Howard Bell on January 2, 2010 at 4:35pm
Quarterly reports are out. NAR, Case Shiller, Consumer Confidence reports all indicate that the housing recovery is faltering to flat. Much of the Govt supports will be slowly exiting as the Fed tests the normal functions of an economy replace Federal aid.ResidentialCase Shiller and NAR reports show continued weakness and everyone is wondering whether the recovery is waning. Case Shiller notes that the rate of decline in home prices slowed in October from the previous month, and prices remain flat after the spring and summer gains. Home price Indices of its its 10-city and 20-city composite indices declined 6.4% and 7.3%, putting home prices at 2003 levels. A flat report is not as bad as much of the last two years, but some Govt programs are being phased out.NAR site points out that on a month-to -month basis,only seven of the 20 cities showed improvement. NARs data for November showed prices down 4.3% year-over-year. Foreclosures continue to be the problem, making up 30% of the third quarter’s home purchase.Moodys points out that there are 3 million more homes in the pipe and that another 3 million are 30-60 days late. These homes are in a foreclosure pattern. New Home Sales: The government reported that sales of new homes dropped a sharp 11.3 percent, an indication that supply is still greater than demand.ApartmentsThe apartment market is showing signs of improvement, according to the National Multi Housing Council’s latest Quarterly Survey of Apartment Market Conditions. Although the survey still indicates higher vacancies and lower rents, we see increased sales activity and greater availability of debt and equity capital compared with three months ago. Apartments have long been considered the better investment, partly because there is financing available and they didnt participate in the building boom of single family homesFollow The MoneyThe American Recovery and Investment Act of 2009Will pump more economic stimulus money into federally subsidized apartment units, while HUD’s budget proposal for next year seeks another $1.8 billion for construction of rental housing.GreenHUD and the U.S. Department of Energy are working together to offer more financial incentives for owners to retrofit properties for energy efficiency. Another economic stimulus plan enacted earlier this year provided funds for green retrofits. Larger property owners of commercial buildings including apartment complexes whereconservation of energy had the greatest impact. Hopefully, some of this money will trickle down to smaller owners.Fannie and FreddieCongress had placed a cap on spending of $200 billion dollars on each. On Christmas eve, Obama lifted the cap through 2012, giving the two quasi public institutions a blank check. I think this points very clearly to the next big wave of foreclosure that will stem from the Alt A and commercial mortgage recasts that will be coming due between now and 2012. A blank check (read big money problems) is whats next.The Stock MarketREITSThe Dow Jones Equity All REIT Total Return Index is up 31% this year, reversing a 38% decline in 2008, beating the S&P 500 by 25%. Given all the flat to downright ugly news still coming out it seems counter intuitive that real estate funds would be doing so well.They have been raising money issuing new shares and selling property whenever they can. In short, they have been raising money for whats expected to be a generational opportunity in good properties coming on the market at great prices. The ishares industrial/office and retail REITS are up 10.7% and 11.2% respectively in November/December alone. Even mortgage REITS are up 3.8% for the same period. Heres what they are looking at...Real Estate RubbleBloomberg reports that commercial property prices have fallen by 30 percent to 50 percent wiping out the equity in most debt financed real estate deals since 2005. This equals as much as 54 percent of the $1.4 trillion in loans that will come due in four years, according to Randall Zisler, chief executive officer of Zisler Capital Partners LLC (via Bloomberg News).Mr. Zisler goes on to say that much of the debt is likely worth about 50 percent of par. Many banks will end up insolvent as they reduce the value of their holdings, he wrote, adding that regional and community lenders are especially vulnerable.Stock markets are forward looking mechanisms and the REITS are looking passed the problem to great future buying opportunities. If the banks are holding so much bad paper, then it will be taxpayer money (those blank checks) and private investment money (REITs) likely final owners of all this real estate rubble. I know that investors will cherry pick and to drive hard deals to profit. I wonder if that leaves us, the taxpayers, to buy whats left.... Its all in the oversightThanks for Readingwww.yourpropertypath.comRelated ArticlesNAR: Existing Home Sales ReportShould You Stop Paying Your MortgageStock Market Views On The Housing RecoveryThe Coming Mortgage Debt Reduction ProgramsRead more…
Each New Year gives us the opportunity to start again. Most of us like fresh new starts, I know I do. Now that I think about it; my life has been nothing but a series of new beginnings, one after another, each opening a new door and closing and old one. This repeating theme has been a light at the end of the tunnel for me. When times have gotten tough, I have always been able to rely on the fact that this to shall pass.
By all measure, I believe myself to be an optimist but, I have never stopped to ponder where this outlook comes from. I am a faithful man and believe that most, if not all of my understanding of this universe comes from the Divine but, I want to take a more scientific approach to comprehend what makes me see the glass half full.
Like any good psych major, we must first look to the past. Let’s gaze into the midst of the distant and pull forward those instances where hard decisions were made. As any good Freudian will ask you, “Tell me about your mother.” Considering my mother was a single mom for much of my life, I guess it would be as good a place to start as any.
My mother is a drug addicted, incarcerated, overly obnoxious, one way or the highway, street living, hard walking, knife carrying thug.
Maybe for some of you reading this blog, I just made you a bit uncomfortable. It’s ok….this will all related back, I promise. Just stay with me.
So, my mother wasn’t gong to win any “Mother of the Year” awards and I can’t say she was always a loving mother but, I do remember a time for about 2 years when life seemed so promising……where the possibilities were endless. I was 12 years old and my mother had managed to be accepted at a 6 month housing shelter called Exodus Ministries out of Dallas Texas. Exodus would re-unite our family, provide us with faith based counseling and workshops as well as provide my mom with tools to become more financially stable. Up to this point, Exodus represented the best time of my life.
We graduated Exodus and moved into a transitional housing shelter called Interfaith, which was right across the street. Unlike Exodus, Interfaith was more of a “halfway” house for the family. We didn’t have mandatory classes anymore but, we did have to pay rent and utilities however, if and whenever we needed support or help, it was there.
After a year had passed, it was time for us to be on our own. My mom, brother, sister and I all moved into a 1 bedroom 800 sq ft apartment just down the road from Exodus and Interfaith. It was very hard but, my mother maintained her 2 jobs and I ran the house taking care of my brother and sister. In fact, we were doing so well, Exodus and Interfaith got together and put my families name on the waiting list of a Habitat House…..the whole idea of becoming a homeowner was life changing for us and once again, our future was the brightest it had ever been.
The Summer right after my 14 birthday, everything was going to change and the possibilities were going to come crashing down around me. To make a long story short, upon my return home from Summer camp, I had been completely and utterly abandoned. Apparently my mother had relapsed and violated her parole with a dirty Urine Analysis and they didn’t ever let her out of the office, the Sheriff came and picked her up instantly. At the time, my brother and sister had been spending time with their father so, everyone was taken care of….except me. Imagine if you can, a 14 year old boy, walking up to his apartment door step, knocking to get in and no one answering. That was my reality. I had been completely abandoned.
So, my Sunday School teachers, who drove me home that day, saw I couldn’t get in the door and decided to take me to their home till my mother got home. It wasn’t till late that night that I learned she was back in jail and I had no where to go. I can’t imagine what was going through my Sunday School teachers heads…..they had to be completely shocked. Well, they new my history and new I once lived at Exodus and Interfaith so, they called the Executive Directors up and ultimately, a week later I found myself in a new home with a family I knew very well. In the course of about a week, my life changed from food stamps, AFDC, Medicaid, clothing closets, food pantries, free school lunch, to upscale family who could go into Neiman Marcus and buy most anything they wanted.
Obviously, a lot more of this biography exist and I promise, it is riveting however, we don’t have enough time to share everything but, I don’t want to make my point so bear with me just a bit longer.
You see, I thought life was set up, planned out, pre-determined. I figured the cogs in the wheel were just going to turn and my family was going to be in our Habitat home, my was going to continue with her 2 jobs, I was going to take care of my brother and sister and our life was going to be grand. I never imagined, not even in my wildest dreams that my life was going to turn out so much better. I know that may sound strange to you now and, yes….you are missing a lot of this story but, if my mom hadn’t made the fatal decision to relapse, if I had not been abandoned, if the people who loved me had not stood up to take me in, I can guarantee you, I would not have the life I have today. It took a terrible end, to give me a miraculous beginning and, this has been true through most of my life and, I would have it no other way.
So, now…..when you make your 2010 resolutions, when you stand back rapt in awe at your own lives. You maybe going through hell now….things may be tough but, this too shall pass and what could be awaiting around the corner potentially could surpass anything you ever imagined.
I wish you the best for 2010, make it special.
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I'm really excited about 2010. With all of the new technology, education and ways to network I'm looking forward to experiencing more growth in my business.Last year I was so busy with BPO's, Home Retention Consulting and networking to get more listings. Guess what? It's starting to payoff! Quite a few people in my office took noticed of how busy I was and made comments about how "crazy" I was/am and how they "don't think it's worth it" to do so many BPO's. Sad to say many people think BPO's are a waste of time and money. Wow! I mean....really? Are you kidding me?Since I put more time and effort into BPO's and networking my confidence level has gone to an all new high and I've grown even more in love with my business. I know my market area(s) and thoroughly enjoy listing properties. Granted, I don't list them all but that's okay. If it means helping someone keep their home instead of it going into foreclosure then to me that's productive and worth my time too. If they end up listing with someone else then okay. I don't take it personal but do reflect on it to see if and how/what are the best ways to improve, realizing that at times it's not me that's the issue.Many times we hear people quote "It's a numbers game". Do you believe that? If so, hopefully you're not building your business on that standpoint. Going round and round, spinning your wheels, hoping to get that 1 out of 20 or 50 or whatever number you think it is. Don't get me wrong...yes, the more listing appointments you go on, the more leads you have, the more networking you do the better. But make sure it's going in the right direction. Make sure it's productive in some way and not just about money. Learn new technology. Network with more people in AND out of our industry. Help and educate others. Don't forget to set goals no matter how long you've been in the business. Make money and Grow!My business is not "a numbers game". It's a business based on ethics, integrity, growing while working diligently with follow through and putting others first. One of my goals (like many others) for 2010 is to break into REO's and I will. That's how my business will continue to grow in 2010.How do you see your 2010?
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Check us out at www.preservationmonthly.com - we are also on Facebook now - signup for our page.Property Preservation Contractors BewareProperty Preservation contractors, make sure that when you go to a property you have your work-order in your hand, you may need more. You may never know who you are going to run into.A suit was filed Tuesday in Cook County Circuit Court, suing the Chicago Police after a Property Preservation Contractor’s were mistaken for burglars and they were arrested while trying to repair a lock on a vacant home’s door.Jonathan Cooper was assisted by his wife Ashley Cooper on January, 29 2009 while rendering services as the owner and operator of J-Coop Corp., They were given a work-order to perform work on a foreclosed property, the suit stated the property was vacant. The neighbor observed the Coopers and Called 911, allegedly saying, “The house next door to mine is empty and there’s some people trying to break in to the garage.”Chicago Police Officers Kevin M. Ryan and David. P. Griffin and others responded to the call and allegedly handcuffed and arrested the Coopers despite being furnished with a written work order that requested the property be locked and winterized and a running a search by name that came back clean for both Jonathan and Ashley, the suit said.Neither Jonathan or Ashley were read their Miranda rights. They were taken into custody at the Chicago Lawn District police station where Ashley was allegedly strip-searched and Jonathan was charged with burglary -- possession of tools with the intent to commit a theft -- and aggravated unlawful use of a weapon for an unloaded handgun that was found in his vehicle's glove box, the suit said.On Feb. 5, Officer Ryan allegedly falsely testified at a hearing to determine probable cause regarding the charges against Jonathan, allegedly saying that Jonathan never provided a work order and that the handgun was uncased and loaded at the time of the incident among other things, the suit said.All charges against Jonathan were dropped, but he is seeking a punitive amount over $50,000 for two counts each of false arrest and imprisonment and intentional infliction of emotional distress and one count of malicious prosecution.
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Posted by David Gubler on December 29, 2009 at 11:13am
To Use A Short Sale Negotiator Or Not?Tough Question! There are a handful of good companies providing a great service to listing agents. Unfortunately there are many that simply obtain the components of a short sale package, submit it to the lender, and then cross their fingers and wait. This is NOT short sale negotiation! If that is all they are doing then we need to use different nomenclature... they are then merely a short sale facilitator or processor.The concept of using a short sale negotiator has merit. An experienced negotiator does have a better chance of obtaining a beneficial outcome from the lender(s) than most real estate agents. Why? Because if they really are negotiating short sales in volume then they do have...1. More experience with lender procedures and parameters.2. Actual contacts with decision-makers & a bona-fide ability to escalate a lingering short sale transaction.3. Enhanced ability to maintain persistent follow-up.4. Effective solutions for rebutting the lenders value determinations, settlement amounts, deficiency judgments, promissory notes, etc.All short sales will NOT be approved by the lender(s)! Noone can guarantee that! A good short sale negotiator will provide the following to a listing agent and their clients:1. Reduce the time it takes to complete the transaction.2. Improve the commission retention rate of the agents.3. Effectively negotiate better settlements (lower!) and reduce the incidence of deficiency judgments and promissory notes.4. Most importantly... free up more of an agents most important asset... TIME! Affording agents more time to focus on business development and acquiring more listings.
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