Chase Finds 16% of Mods Are 'Permanent’?A recent article highlights that JPMorgan Chase has over 140,000 borrowers in the HAMP program currently, and that only 16% will be or have been approved for “permanent” modification as they announced in Congress. Additionally only 29% of those made all of their payments on time during their 3 month trial and so now are ineligible for permanent mods. Begging the question, so is even the 16% number accurate?This along with other examples of the fallacy of HAMP I have given in the past conjures memories of an advertisement from my youth… “Where’s the Beef”?HAMP sounds nice, People love acronyms, best intentions and all but like so many things in our society these days no one wants to look beyond the surface. We long to be placated. We want to feel better, eat our government endorsed Hostess products and watch dancing with the stars until our Ambien kicks in. All you are required to do is look at two factors to determine HAMP was NEVER going to work as it is currently configured.1. Out of control unemployment. The numbers are staggering and nowhere close to reality when one factors the numbers of people still employed but on reduced hours, or those that have fallen of the unemployment rolls entirely. You can’t qualify if you have no, or even reduced income.2. The amount of mortgages that are upside down more than 10-20% allowable. Borrowers in California, Florida, Arizona and Nevada are doomed even before they announced the program.In all actuality the servicers are making only a half hearted effort in these programs. The lenders know their hands are tied, Congress and the Administration know this as well. The only ones who don’t? John and Sally Homeowner in Eugene Oregon who actually need and think they are going to get a mod. Adding more fuel to the noxious mix of those who know, the vultures who prey on John and Sally. Telling them their lender will take too long, work with us and we will get you your mod…just give us $995. They believe this right up until me or someone like me shows up at the door with the sheriff. Julia Gordon from the Center for Responsible Lending said as much in her address to congress, saying that HAMP had the “theoretical potential” to help but servicers either would not or could not do what is asked of them.What to do? Do we as a nation bite the bullet and “bailout” the borrowers as well. Should we do a white board erase of all current mortgages and start over as some have suggested? Highly unlikely! Can you imagine the lawsuits generated by those who have previously been foreclosed on and are left to wonder “why was I not bailed out”?I am interested in this group’s insight. What would you propose? I have outlined my ideas here in prior blogs so I won’t beat that drum too loudly but these are the basics (how we create jobs is a blog post unto its own).1. Mod only those who can, and quickly. Release all other inventory on to the market regardless of how far values fall.2. Waive the 3 year restriction on all foreclosed or bankrupted borrowers and allow those that are TRULY qualified to re-enter the market.3. Lift restrictions on the amount of properties investors can purchase.What say you?
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Posted by Jason Donn on December 11, 2009 at 7:41pm
In Florida of Course.But not only do they live in Florida, they live in a special neighborhood just for these types of bank executives. They all live in an upscale subdivision in beautiful, sunny Fort Lauderdale, Florida aptly named Shady Banks, where the homestead laws favor unsavory characters of this sort. Yes, this picture does not lie and many former mortgage executives live there. 21 of them to be exact.Well, now it is 18. 3 are in Federal prison. As for the others - 7 are under indictment, 5 are under investigation and 6 are on house arrest.Jason DonnRead more…
I would like to share this with everyone as I have changed my attitude towards most investors. I have been blessed and I mean that sincerely, by having this one investor that buys some of the crappiest properties that have been on the market forever because it needs a roof, foundation work, mold, etc. My investor will buy this property and turn this piece of crap into a beautiful work of art! I have sold 5 of his properties this year and they all went under contract within the first 30 days! I wish I could take the credit but it is the quality of work that he does, granite countertops, wood floors, frieze carpet, stone floors, stainless steel appliances, light fixtures, crown molding, landscaping etc, etc, etc. These are not high end properties, they are all below $150k geared towards the first time homebuyer. Not only does he give that first time buyer a fantastic home but he improves the neighborhood and increases the value! He has now told me to get ready for more as he plans on doing 2 per month. And now I have picked up another investor that I just put under contract that will be doing the same thing and his goal is to do 4 per month! The wonderful part of this is that I get the commission when I sell them the property and then I get the commission when I list the property for them. I see this as a win, win for everyone. I hope each and everyone of you will find investors like this, they are a joy to work with, they listen and they are LOYAL! The 2nd investor found me on REONetowrk and interviewed me for 3 hours before he decided I was the exact agent he needed. I plan on keeping before and after pictures and will share next time as the transformation is amazing! I would love to hear if anyone else has had similar experiences.
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Posted by Joshua Jarvis on December 10, 2009 at 11:48pm
Good Morning Agents!We here at the Bank as sitting on a lot of inventory. As you know we have been telling you that more inventory is coming to you for the past several months. Well, we REALLY mean it this time. So we thought we would give you about 4 times the BPOs this month that you normally receive so we can get those homes moved... next month.We also wanted to tell you not to listen to the rumors that we are deleting our databases, changing out our account managers or adopting any kind of auction programs. We're in this together. Sure we still want you to carry the cost of preserving the property, fixing the property and sure we'll probably still lose your invoices (the same way we lose short sale packages) and of course, we want the right to sell the property on our own too. We'll take care of you though.At the bank we want to the thank you for your loyalty and service, nevermind that 200 plus agents we just added to our roster.Oh and have a Merry Christmas, just be sure to turn in the BPO on time.
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Posted by Lew Peterman on December 10, 2009 at 6:13am
Well, I don't know if I TOTALLY misread your announcement some time back or if the blog was just not clear. Either way, Jesse, we both went down a path of despair in that thread with each of us thinking wrongly and not knowing.After reading your recent post about an agent receiving a listing through Realty Pilot, it was finally made very clear that I did not understand your intent. I just wish this misunderstanding could have been resolved much sooner.I had the impression from your "partner announcement" blog that you were going to take 25% of every listing we received through Realty Pilot. That is what set me off. I saw this as a hidden agenda that you had all along. I began to vision you not as a "fellow" Realtor, but as a marketing tyrant.Understanding NOW that you only want a referral fee when you (ReoPro) provide a listing through your own efforts (versus the efforts of Realty Pilot), I wholeheartedly support you once more.I would request that all others who have objected to Jesse's referral fee read the BLOG about an agent's first REO from RealtyPilot.Jesse, I sincerely apologize for my prior comments.
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Posted by Chris Treece on December 9, 2009 at 8:16am
According to recent data collected by comScore, GroupM and M80, display ad exposure on social media networking sites lifts consumer response to your ads in paid search.Consumers are more likely to recognize and respond to your paid Google ad if they have also seen your display ads on a site such as Facebook or Linkedin. Research showed a 19 percentage point increase in searches on the study group brand among users who saw social media ads relevant to the brand. In other words---if someone sees your business in an ad on Facebook or another social media site…..and then sees you’re paid in a Google search…they are much more likely to recognize you.“Every day consumers express their intent via search. Now, we better understand how that intent is established via social media and the interplay between the channels,” says Chris Copeland, the CEO of GroupM Search—The Americas. Better yet, shoppers who have been exposed to influenced social media along with a paid search ad had a 50% higher click through rate!Now, that’s something to get excited about!“This finding provides strong evidence that investing in social media marketing can both increase initial brand consideration and drive higher conversion rates once the consumer has decided to purchase,” says Graham Mudd, the VP of comScore.If you are still dragging your heels and not utilizing the amazing opportunities for social media marketing---get with the program! You can build your business tremendously with social media marketing. It’s HOT and it’s getting hotter every day! Catch the wave and get in on the action! Facebook and Linkedin are great social media communities to join, but there are quite a few others. In fact, if you have a more specialized niche, it would be a good idea for you to do a Google search for online communities with users who have interests relevant to your products. For example, if you are selling auto accessories, join a social community of auto enthusiasts.The word is out about how being seen on social media sites can boost your click-throughs in paid search, so get busy making your business visible!
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Posted by Joshua Jarvis on December 9, 2009 at 12:27am
Got a nice e-mail this morning and had to send an announcement to my Short Sale Pros people. Here's what I got:Equator, the default-servicing industry technology leader is pleased to announce the launch of its new Agent-Initiated Short Sale feature. Starting December 8th, Agents have the ability to request a Short Sale through the Agent Portal on www.equator.com. Only certain industry leading Lenders are currently allowing Agents to initiate Short Sales through Equator. Since it is such a great way for agents to help their clients, we expect many more Lenders to follow suit in the months to come. Final determination of whether the property in question qualifies as a Short Sale is at the discretion of the Lender or Servicer.You can read the rest at Short Sale Pros - the Short Sale Specialist Network Inspired by REO ProsRead more…
Posted by Dan Waterman on December 8, 2009 at 12:09pm
In a recent post on Mortgage Servicing News the latest and greatest in the world of default servicing is electronic (on-line) loan modification. Ironically, I'm reading a book right now by Mark Zandi (Financial Shock - I recommend it to everyone in our REO network btw) and he talks about online lending. Albeit, they aren't the same, but I can only imagine some of the fraud and future complications that will be the result of consumers jumping online to apply for a loan modification which, in turn is automatically run through underwriting by a series of codes that do verification based on the honor system.Call my pessimistic, but I don't see this being the salvation to our situation. Don't get me wrong, I'm glad that there are solutions being recommended, however; when's the last time that we, the people (and more importantly the REO professionals) were consulted about potential realistic solutions?Read the article here....it's actually very informative. I don't mean to sound like the write-up is bad. It's not.
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Posted by Dorit Katz on December 6, 2009 at 1:51pm
I have found myself amongst a very small group of agents in my area. I'm sure that many of you are in the same position.If someone would have told me that being an agent would mean that I would have a traveling stove, I would have said, "Huh?" Well, I now officially feel like a mobile Home Depot/Lowes. It all started by making sure I had a flashlight, scissors, and tape measure in my car. Then as the years went on, I collected wire and heavy duty tape. Over the last year, I have started making sure that I grabbed some simple supplies from my home before I left to an asset. Until one day my husband needed the hammer and it was nowhere to be found (and I was nowhere either).My last asset was so overgrown that I needed a machete to expose the oil fill pipe for the oil company before I could get the place winterized, I now carry a machete. I needed window frames painted to cover peeling paint before the appraiser showed up in a day. I now carry all purpose paint and brush. I think the best is when I needed to find a cheap stove because somehow, the homeowners seem to always take their stove, and the lenders require one. I now have a traveling stove with another agent. It gets shifted from one place to another, sort of like using one credit card to pay off another.My arsenal now includes - machete, shears, scissors, metal wire, string, packing tape, duct tape, paper towels. toilet paper, nails, hammer, outlet covers, screwdrivers (phillips and flathead), screws, tape measure, no trespassing signs, lightbulbs, paint, brushes, sandpaper, and utility knife. I'm sure that there is more I could be carrying and that I will slowly add more to my arsenal.Soon I'll get to the point that when my husband tells me that he needs to go Home Depot, I'll just tell him to check my car.
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Hi Members,
Christian Broadwell of Realty Pilot has reviewed our coverage for the asset companies and we have a good start. The coverage we are missing are as follows:
Arkansas, Colorado Denver area, Delaware, Hawaii, Idaho, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan Detroit area, Mississippi, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, Pennsylvania, South Dakota, South Carolina, Tennessee, Utah, Vermont, Wyoming
We have 56% of the country covered for the asset companies but we need to have 80% coverage before several of these companies are willing to commit. If we have 80% then a constant flow of BPO's will be available.
If you are interested in assignments from REOPro, please go to www.RealtyPilot.com and sign up. Don't forget to put, REOPro as one of your memberships.
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The FHA is catching up to the where the market place currently is. YOU NEED TO BE QUALIFIED TO BUY A HOME.It still surprises me when I get a new prospect and give him an initial assesment and they say that they either don't have a job right now or they have a minium wage job or no money in the bank.Right now, although you can get a loan with 3.5% down, your offer is seldom accepted anyway because there are better qualified buyers with more money to put down and therefore present less risk that they will lose their home. Agenys have a rsponsibility too to be sure their buyers can afford a particular home...recently I had a client that wanted to know what the payments would be on a particular home, after I told her , the mom which is helping her started to question how they could pay that type of payment on her daughter's income (daughter's husband does not work), after discussion, we agreed we would look at a lower price point of home. Makes me wonder how Wells Fargo preapproved her for that higher amount in the begining!The FHA will soon require a 5% minimum down. Yes, it will eliminate some buyers from the marketplace, but those buyers will have a hard time getting anything at the minimum level anyway. Buyers will also have to have a better credit score from a minimum of 580 all the way to 620. The thing we are missing though is that most banks want at least a 680 anyway, so again, the marketplace has thinned the weak out already. You need to see also that many listings specify already that they want credit reports and financial proofs. Yes, too they look at the size of the downpayment as well. THE MARKET IS ALREADY THERE!The downside to this that credit repair will start to flourish and people will once again get sucked into a scheme that produces little or nor results. We saw what happened with loan mod business in California. That business has now tanked. They are now barred by the California Department of Real Estate from taking upfront fees. Most credit repair and loan mods can actually be done individually as the techniques are fairly simple...just time consuming!The extension of the homebuyer credit for first time buyers ($8000) and buyer/sellers ($6500) will help to have a decent real estate market into the spring but again like others have said, this is just a band-aid and will cost future generations somehow. These credits in my opinion have caused price inflation that actually discourages buyers, not to mention potential appraisal issues. Imagine going to the store on black friday to get a $99 patio heater only to be disappointed and dismayed when you get to the check out that it now costs $199 because everyone wants one. I even get feedback on a Broker Price Opinion (BPO) that they don't believe me when I say the market is depressed...it still is and the financial powers are just manipulating the market to keep things from "sinking" too fast. Yes, we have price apprieciation, but it is artificial, until the economy is healthy once again.Let's all be responsible players in the real estate arena.
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Ok, first off….I am not going to share this agents information with you. If he wants to speak up…he can. In other words, don’t ask….lol.
I just got an email from Christian Broadwell with Realty Pilot alerting me to the fact that one of our members got a BPO and in return the REO. Now, so that we are clear, this isn’t a “REOPro” assignment so much it was a bank who has been using the Realty Pilot for some time and noticed their coverage is growing…ie, REOPro members and happened to release a BPO to that Zip Code where this member snatched it up, completed it and in return that bank asked him if he wanted the REO.
My point is, Realty Pilot is working for our members and yes, it wasn’t a “REOPro” assignment however, the way the system is set up, you as a member could get any assignment for any of the partner banks that Realty Pilot is already working with. Yes, REOPro will be assigning BPOs, REOs and Short Sales soon but, in the meantime, you could potentially get assignments from other cooperating servicers, asset management companies and lender who have their own Asset Management divisions.
Don’t forget, on December 16, Realty Pilot will be launching their “Activity Counter” so you as agents can also see where assignments are and how much business is going out per zip code. This is a revolutionary concept in this industry and really puts more power in the decisions making process back into the agents hand.
Good luck guys and if you’re not signed up yet, I highly, strongly encourage you to do so. I fully expect REOPro ourselves will be sending out business soon. I know soon is such an ambiguous term but, that is all I can say now without spilling too many beans. Just know, I am completely confident this is going to happen and it’s just a matter of hammering down technology, which Realty Pilot is working very hard at doing.
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Quote: “This Supplemental Directive provides guidance to servicers for adoption and implementation of the Home Affordable Foreclosure Alternatives Program (HAFA). HAFA is part of HAMP and provides financial incentives to servicers and borrowers who utilize a short sale or a deed-in-lieu to avoid a foreclosure on an eligible loan under HAMP.”
November 30, 2009 the Obama White House released their “Introduction of Home Affordable Foreclosure Alternatives – Short Sale and Deed-in-Lieu of Foreclosure. Unlike much of Congress, I have read this document and want to highlight some features for you that you will want to be aware of.
First, you can read the document for yourself by following this link, https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf which was provided by Tere Rice, a member of REOPro.
These guidelines are a part of HAMP, the governments Home Affordable Modification Program and for servicers who participate in HAMP this directive does “require participating servicers to consider borrowers for other foreclosure prevention options, including Short Sale…” In essence, we now have a White House Directive to banks and servicers to use Short Sales as a tool to prevent foreclosure. You would think this was a no brainer however, now with this directive comes objectives and benchmarks.
One of these benchmarks / objectives / procedures is, “The servicer accepts the short payoff in full satisfaction of the total amount due on the first mortgage” In other words, no deficiency judgments on first mortgages. The directive goes further and says, “With either the HAFA short sale or DIL (Deed-in-Lieu), the servicer may not require a cash contribution or promissory note from the borrower and must forfeit the ability to pursue a deficiency judgment against the borrower.”
A second process change is the streamlining of the process. The directive allows utilization of all the borrowers information collected originally for HAMP consideration in conjunction with the Short Sale.
It allows the borrower to receive PRE-APPROVED short sale terms prior to listing the property.
It prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement.
Requires the borrower be fully released from any future liability for the debt.
Provides incentives to borrowers, servicers and investors to cooperate as well as uses standard forms and documents.
Now, we do have some requirements here and they are…..
1. Must be principal residence
2. The mortgage loan is a first lien mortgage orginiated on or before 1/1/09.
3. The mortgage is delinquent or default is reasonably foresseable.
4. Current unpaid principal balance is equal to or less than $729,750.00 and the borrowers total monthly payment exceeds 31 % of the borrowers gross income.
5. Lastly, the borrower must have been declined for HAMP or HAFA before Short Sale or DIL will be considered.
Some other interesting things I read was the requirement that servicers notify borrowers that a Short Sale is an option. The servicer will have to independently assess the value of the property at the servicers expense. The home must have clear and marketable title. All decisions must be communicated to the homeowner in writing. It must explain why a short sale can’t be offered and give the homeowner the option to call the bank and discuss why. The servicer is required to provide the Minimum Net Proceeds hence, the Pre-Approval.
The directive does have a lot of time lines requirements….really too many to log here in this blog so, it’s impearative you read this document before you do your next short sale. Some requirements extend all the way to the agent yourself so, you better be aware of how this is going down otherwise, you may find yourself on the wrong side of the directive.
The best part is, “APPROVAL OR DISAPPROVAL OF SALE. Within 10 business days of receipt of the RASS and all required attachments, ther servicer must indicate it’s approval or disapproval of the proposed sale by signing the appropriate section of the RASS and mailing it to the borrower.” If you are wondering what a RASS is, then you better read the directive.
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Posted by Rick Fine on December 1, 2009 at 11:23pm
So how many of you fellow REOPRO-ers have run into the REOMAC membership brick wall?I've tried to join REOMAC for about 3 years now and have had no luck whatsoever.What is up with these guys? It reminds me of the 'clubs' that kids would put together when I was in elementary school, (not long after the wheel was invented), where the rules for membership were never quite explained, joining was a process cloaked in secrecy and the members were part of the 'popular crowd'.Apparently, they do not want any more real estate agents regardless of our experience, references or genuine desire to see the industry we work in improve, (Which I thought was the goal of REOMAC).I've had non-agent members submit recommendation letters on my behalf, made calls, sent letters and even emails trying to determine if there is even a waiting list to get on and all to no avail.All I've ever received is a form letter-type of reply...I am unsure of why I've expended so much effort to try to join a group that does not appear to actually practice what it preaches..perhaps it's just an OCD thing or that inner need to belong...Whatever the case, it is killing me that I am going to have to pay hundreds of dollars to attend an event promoted by an organization that is apparently harder to join the Bildeburgers, CFR or Skull & Bones.However, I have clients that are attending who've inquired about whether I'll be there, so regardless of my enimity towards their bizarre membership criteria, I will grit my teeth, pay the ransom and attend...WooHoo!So, for those of you out there who enjoy membership within the rarefied atmosphere of REOMAC, what's it like?Do you have secret handshakes?, Stange and cryptic rituals? or is it like the Moose lodge near where I live and used as an excuse for binge drinking?Please Do Tell!For those of you who have tried to join but not managed to make it into the industry organization, what are your thoughts?Lastly, aside from REOPRO, what other trade groups are there where we can network and learn of new best practices?Your thoughts are most welcome!
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Posted by Raul Novales on December 1, 2009 at 5:08pm
I received an interesting call today from one of my lender contacts. The discussion covered when the next wave of REO properties would be really coming to market. I was informed that many of the banks holding REO's will need to change their accounting reporting and will actually have to show their non-performing assest on their books. They are also taking this time to clean out their Realt Estate Agent data base. The agents that were not performing to their standards will be removed from their list. So get your applications in and get ready for the next wave expected to begin arriving in the begining of the third quarter of 2010.
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Posted by Kelli Owens on December 1, 2009 at 4:16pm
In addition to doing property preservation I am a traveling Real Estate Closer. I have 12+ years experience as an escrow officer, loan officer and was an Operations manager for a wholesale lender.I had a closing this evening that went downhill from the Very start.Docs are late, I get 2 of the 3 emails with the docs. Have to push closing back 30 minutes, then 45 minutes, then 1 hour.Finally get last set of docs, call borrower and let him know I have them and I am printing. I am about 12 pages from being complete when I get the dreaded message toner low. 5 Pages print then NOTHING! I pull out the backup printer and print the last 5 pages almost out of ink in that one need to restock it as well. Jump in my car and I am ready to go. Jump OUT of the car and run in to get phone, don't see it, get back in the car and head off. Thinking phone is in purse drive a little further, realizes,,,, no phone. Look down and very low on gas, have enough to get to closing and fill up on way home because already pushed closing back didn't want to spend the 5 minutes (by the way it is 48 degrees outside and raining) Get to clients house, ready to close. He informs me his wife lives at a different house and we need to go there for the closing, so we jump BACK in the car and head about 1/2 way back to my house. I flash the lights because I am on fumes, didn't want to run completely out of gas, and I have no phone to call him. Pull over into the gas station. And realize this one has no awning covering the pumps; first pump I tried was broken, jumped back in car pulled up to next pump. Jumped out swiped card, open trunk, realized I opened the trunk not the gas door. Ran through the puddle of water to close trunk, get gas started, (5.00 due to raining and freezing, and now I am wet, my hair kinks up (curly/straight combo makes for frizzy kinky when wet). Get back in car realized left driver door open, seat is wet. Therefore back of pants are now wet. Get to wife’s house, she has a great Dane, sweet dog, I have about 2' on him (when he is on all 4 legs) he acts like he is about to jump up and give me a hug, which you can imagine my facial expression at that point. Anyway, dog leans on me the majority of time we are standing. We get to the table; I sit down dogs head comes above the table and decides he is going to check out the inside of my purse with this nose. I am hoping I don't have any chocolate in there for him to take; at this point I need either chocolate or a glass of wine. We start going over the docs, he finds out what his monthly payment is ...... it went up instead of down. Closing cancelled and now a glass of wine!Moral of the story, always keep tank full, back up toner, and make sure everyone has spoken with the loan officer about final payment. Have a great night!!
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One of the biggest changes our industry has seen, is the level of competition for listings has exploded exponentially. This increased level of competition for listings has created a nightmare situation for tenured default agents. Many of these agents had a fairly high level of job security and took their 100 + listing inventory for granted. These tenured agents could set back and rest assured that they had locked down their area and never had to worry about some rookie agent coming in and stealing their listings however, the default industry is changing.
The first problem, as I see for these tenured agents, is the recessed economy. Granted, many would see this time as a boom for a tenured REO agent because an increase in their inventory couldn’t be a bad thing. Many of these tenured agents had become so comfortable with their workload that they never saw an actual need to update or change their business procedures to handle any future change. In fact, it still isn’t uncommon to walk into a high producing REO agents office and see large dry erase boards with color coded charts, large stacks of files all overflowing with paper and an agent who can’t return a single call from prospective buyers or selling agents. These agents are becoming antiquated. They are being bogged down by their own procedures and becoming less and less effective. What many don’t understand is that with an increase in inventory comes an active almost aggressive demand for technological solutions that can streamline the process of REO. Either you get on board with these changes or you loose your inventory.
Sadly enough, many of these agents are behind the eight ball when it comes to these technological advances our industry is making. They can’t or won’t integrate and become more a burden to their asset managers than a benefit. Many asset managers will simply start looking for more technologically savvy agents rather than wait on their tried and true agent to get up to par. The truth of the matter is, for many asset managers, their own income is largely derived from competing against their fellow asset manager or obtaining very aggressive goals in closing rates and ratios. Because of this aggressive environment, they do not have time to work with an agent who is ineffective so, to reduce their risk they begin spreading out their inventory to newer agents who are more aggressive, less complacent, more tenacious and hungry for the work. Before you know it, the asset manager is impressed with this “new” blood and decides to move inventory around. The default industry is changing.
The second problem, as I see it for tenured agents is the rise of Default Servicing Networks. Now, these networks aren’t anything new, for example, NRBA (National REO Brokers Association) has been around for years and has really been a benchmark for our industry but now we see the rise of more and more of these networks that are heavily vested in technology with blogs, forums, chat rooms, RSS, real time news updates, automation, online offer submission, and much, much more. These older established networks are scrambling to stay relevant, let alone an industry leader. Some networks like NRBA have managed well and have maintained their status in our industry however, I speculate that for every one that is successful, three or four are not. These networks are establishing themselves as powerhouses in our industry by offering their clientele, the servicers and asset management companies a level of expertise and professionalism that is unmatched. Because of this, servicers and the such are taking notice and choosing to do business with only those agents who are affiliated with these networks. Many independent, un-affiliated REO agents who don’t belong to a network find themselves out in the cold when some other agent in their area joins a network and start “stealing” their listing inventory.
Most of these networks offer and sometimes even require their agents to have a particular level of experience, education and commitment to reach different levels of responsibility. It is this hands on agent management style that creates a strongly developed agent committed to success and the industry that makes these networks so enticing to servicers. Ultimately these networks force servicers to decide, do they go out and find Joe Blog agent extraordinaire or do they choose from this network where the agents are already defined and they are assured of experience and education. The network, property managed, will almost win out every time.
The third problem and final one I will discuss today, is the hybrid network like REOPro. Networks like REOPro that offer agents the chance to network both socially and professionally while adding value by researching technology and developing strategic partnerships to help their agents grow and become successful will ultimately be a mega player, if properly managed and structured. These networks will offer incredible networking opportunities, un-matched member driven education, technologically driven solutions to servicers and finally do all of this while increasing value by adding tools, modules and updates while keeping pricing highly competitive if not virtually free. These hybrid networks will corner this competitive market by giving servicers no other choice but to come on board, simply because cost savings back to the servicer can’t matched. These networks will in essence become Default Servicing Companies offering comprehensive robust value driven tools to all involved, from the Asset Manager to the agent. In return, they will be taking / stealing listings right out from under the nose of the unsuspecting agent who is still sitting in their office using a dry erase board.
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Posted by Doris Wright on December 1, 2009 at 5:24am
Just a reminder to be careful when showing REOs. HUD, & Bank owned homesMy husband usually accompanies me to all showings.....this is what happened on a rare exception!I had an experience recently where upon entering a vacant home, I smelled cigarette smoke. It smelled too fresh, not the stale kind that comes with an old home with rancid carpet! We then proceeded to see the home, calling out "hello" as we went through the home. I think from the signs, the squatter was hiding in the attic space when he heard us coming. Needless to say, we made a quick exit. In retrospect, this was stupid.No sale is worth sacrificing your safety. My clients husband was a big guy, so we had some "safety in numbers and size" and "don't mess with me" to our credit....but if that squatter had a gun, well, it really doesn't matter how big your clients husband is....Just TRUST YOUR INSTINCTS.Get the heck out of there, and have the police check the place out before going back in. Report any suspicions to the listing agent as well. Hey, they always want feedback!
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Posted by Kelli Owens on December 1, 2009 at 3:28am
We get the standard eviction assistance order in Harris County. As with all evictions we check the house out the day prior to meeting with the constables. I drive out there, peek through the windows and notice A LOT of furniture. So proceed as usual. We load up a team of 7 and we are at the house 15 minutes early. Pop the lock and we are in. We realized very quickly that we were in DEEP! The moving company walked around shaking their heads and left everything as is. They didn’t want to go through everything to find anything of value to haul off. We go through the house, and count up all chemicals, tires, gas cans, oils, paint and on and on. We have to do this for the bank. THIS house had OVER 65 CU debris inside not counting the attic *we’ll get to the attic soon.
The bank sends us the approval to remove the trash, cut down tree, clean backyard and clean the house. We are off and running. My business partner found a company that would do the haul off for us. (I couldn’t have my crews there because we had just gotten 6 new initial secure and REO orders.) They bid the job, we approved the bid and they start hauling it all away, well most away. They moved a lot in the corner so they could get photos without anything in the rooms. However, what they didn’t realize is that we spot check all work a new contractor does.My crew heads out the next day and removed all the additional debris that was left in the house. Then we ventured into the attic where we found an additional 15 Cubes of debris. All is hauled off. We clean the house top to bottom and start on the backyard.
The backyard was so overgrown with vines we found a motorcycle, role of chain link fence, 2 dog houses and the ac unit buried under the growth.
However we took a house that had you shaking your head is dismay and made it look like it could have potential. There are several things that need to be done to the house but now you can see what it is.Enjoy some of the before and after shots.
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It is all about the market, we will have fewer of frustrated buyers and buyer’s agents if there were 10 properties for each buyer not one property for 10 buyer’s. In that situation, REO agents will bend backwards to get all the paperwork on one or two offers they get, asset managers will accept buyer’s demands even on AS IS property. When fewer buyers out there one can get away with closing cost and other items but not in current market in 4th Quarter of 2009, when slightly lower priced or at the market priced properties are getting 10-20 offers.Price is but it is not the only determining factor. I have asset managers declined the higher priced offers for a better-financed offer. Also had the agents get upset why their offer was not accepted. Some even get more upset when they saw the property closed at lower than their offer price. They do not know the details what happened during the transaction, why it closed at the lower price, may be appraisal, may be some other issues with the property, may be first offer fell out then next available best one, who can close quickly was picked, instead of putting property back on the market.I am not saying that there are not agents out there who play the system. To buy property for my own self I had to write 5 different offers, offered the full price and over and got beaten up by other offers many times before I could get one accepted. It all matters, financing, FICO score, what buyer have in the bank and under whose name. If the proof of buyer's funds is not under buyer's name, then forget about it. I have seen those transactions fall out because of the donor issues. Being an REO agent, I screen all the offers and drawbacks of the offer, are written into my notes to the asset manager. I even call the lender to make sure it is legitimate pre approval. I had noticed fake pre-approval letters, written under the name of big banks.I had agents who will not listen what is being said, I had agents call and ask bunch of questions and will politely ask, if they read the private remarks in the MLS. Sadly, one answer that I still remember was “what private remarks, oh! you mean at the bottom, let me read those”.I have set up an offer submission system through www.eBrokerHouse.com so everyone gets a confirmation of the submission. Not only that, if their offer is deficient I could communicate with the agent as their contact information is right there and I don’t have to look on page 8 try to read fax of a fax or search my email to locate it. I have agents call me and ask that they do not know how to upload the file, that they do not have a scanner. In REO world, the whole transaction is done by scanning and uploading the documents. Who would want to deal with that agent for next 45 days? Does that go in the remarks, yes it does.Not all agents are alike, there are some very savvy buyer’s agents and I wish everyone to be that way. However, there is so much bash about REO agents, that one have to be on the other side to see what REO Agents go through, especially the ones who deal with their transactions first hand. At the end, in grand scheme of things, it is about: would it close and would it close on time?http://www.namneet.comREO Specialist Orange County CARead more…
But not only do they live in Florida, they live in a special neighborhood just for these types of bank executives. They all live in an upscale subdivision in beautiful, sunny Fort Lauderdale, Florida aptly named Shady Banks, where the homestead laws favor unsavory characters of this sort. Yes, this picture does not lie and many former mortgage executives live there. 21 of them to be exact.Well, now it is 18. 3 are in Federal prison. As for the others - 7 are under indictment, 5 are under investigation and 6 are on house arrest.Jason Donn
