Posted by Rick Fine on November 29, 2009 at 9:40pm
Of late, I find that the markets I work in, (Phoenix, AZ and Sacramento, CA), have slowed to all but a screeching halt as far as receiving REO assignments go.As everyone knows in the business right now, if your selling for Fannie or Freddie, you're a lot busier than the rest of us...I could bemoan the unfairness of the favor Fannie & Freddie REO agents in my office of 300+ enjoy, but what's the point, they got in and I did not.Despite having the trust and regard of my asset managers, their pipelines have also slowed to the point where assignments have all but ceased. They insist that I am rated highly and considered an agent who is one of their preferred choices for assignments.YET none are forthcoming!So now I'm told to hang on because the business is going to pick up after the holidays.In the meantime, this begs the question "Now What???"I am busier than ever doing Titanium assignments, BPO's, and working with buyers to keep afloat.What are you, the other reo agents, doing to survive these lean times?Working at WalMart? Taco Bell? Or worse yet; a CAR LOT!One thing is very apparent, I work harder than ever, earn less than ever and are happy to do so.I will also add this, I know more about what a property is really worth in any given market and have a better idea about what it takes to get an offer accepted than 98% of the agents working today because of all of the extra work I do to survive. To me, that's a good thing. What are the rest of you doing to survive and hopefully grow?My teams are transitioning over to shortsales.Any ideas out there on best practices for finding the not-so-elusive shortsale clients?Times may be tough but Distressed Property Specialists are tougher!
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Posted by Linda Landry on November 29, 2009 at 9:00am
In the current market there are some unusual things you may not know. There is plenty of inventory at a ten year price low and the current interest rate hoovers around five percent. Despite the current economic decline this creates a competitive buyers market. By competitive I am meaning strong buyers are a commodity. To increase your buyer strength in order to take advantage of the current low prices, interest rate and tax credit for those who qualify here are some points you may not have considered.1. You may not need perfect credit. You will need a decent FICO score of around 650. You may have a few blemishes you will need to clear up. You are legally able to obtain an annual FREE copy of your credit report. You should do so and review them extensively and make corrections as needed with your creditors and the credit reporting agencies.2. You will need to talk to a lender about the amount of money you will qualify to finance and what you will need for out of pocket expense for the down payment and closing costs. Your lender can inform you on which of the closing costs you are required to pay and which cost you can request the seller of the property to pay. You will need a ‘pre-qual’ letter (LSR) for your agent to utilize in determining which properties you will be able to secure financially and to submit to the seller with your offer when you find a suitable property. You may need a second LSR if the seller counters your offer at a higher price; which your lender will have discussed with you regarding your ‘bottom line’.3. Your REALTOR ® can assist you in searching for properties in and slightly above your price range. Your REALTOR ® can assist you in determining how much to offer by doing a market analysis on properties in the same vicinity. Your REALTOR ® will assist you in the ‘negotiation’ process when and if the seller does counter your offer. After an agreement on price is made there will be an appraisal on the property for the lender and if the comparative analysis was correct the appraisal should be close to the agreed upon price.4. The property seller pays the real estate commissions. That’s right; the buyer does not pay the REALTOR ® for their service. However, without a Buyer/Broker agreement all agents are representing the seller. If you’d prefer your agent represent you in the process an agreement to sign is available to you.5. In the current market of ‘distressed’ homes (in need of repair, lacking utilities, no warranties, ‘as is’ and buyer to verify statements) there is actually competition for desireable properties. By desireable I mean clean enough to move into and priced right in the location you prefer. When you find one you must be ready to act. That includes having your financing arranged; your down payment available and a date you’re willing to specify to close. Even so there may be multiple offers or even a contract submitted/accepted before you take action. Your agent isn’t kidding when they say time is of the essence.These are the five most important points you may not have considered prior to a selection.There are other points to consider during the process which I will cover in subsequent blogs. Happy House Hunting!Linda Landry, REALTOR ® Exit Realty 1st Choice
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Posted by Howard Bell on November 28, 2009 at 5:05pm
The 17th annual survey shows strong Interest In US Real Estate.1. Foreign real estate lenders say they plan to increase lending by 58% in the U.S. in 2009.2. Equity investors plan to increase investment activity by 40 percent globally and by 73% in the U.S. according to the results of the 17th annual AFIRE surveyPreferencesD.C. trumps New York as the top global city for foreign investment. London and New York were second and third position for foreign investment interest. Five of the top ten cities were American and the U.S. was ranked as the country with the most opportunity for capital appreciation.US Real Estate TrendsOur system certainly can surprise, but politically, we are very stable. There is a great deal of faith in our ability to adjust and change. AFIRE members surveyed find the U.S. continues to provide both the most stable and secure real estate investment environment and the best opportunity for capital appreciation. see chart hereThis year, foreign investors are eying the multi family sector, followed by offices, industrial, retail, and hotel properties. US property is showing signs of an approaching price equilibrium and the dollars decline has made real estate even cheaper for foreign investors. Fed assurances that interest rates will remain low until a full blown recovery virtually assures an inexpensive dollar and once in a generation opportunity for foreign investment.NAR reports International investors bought 154,000 homes and condos in the 12-month period ending in May, down nearly 10% from 170,000 for the same period a year earlier.But Since June, the dollar has tumbled by 9 to 11% against currencies like the Japanese yen, the Euro and the Canadian dollar. Florida leads the country accounting for 25% of foreign purchases, followed by California, Texas, and Arizona.(via AFIRE)Green MattersWhen asked to what extent a buildings green attributes influenced their decision to purchase a property, 11 percent said significantly so, and 60 percent said somewhat so. In almost the exact same percentages, investors said that green attributes were worth a greater rental premium. This was the first survey in which these two questions were asked. (Via AFIRE)Thanks for Readingwww.yourpropertypath.com" target="_blank">www.yourpropertypath.comRecent ArticlesNAR Report Third QuarterThe official figures indicate recession has endedRead more…
Posted by Howard Bell on November 28, 2009 at 5:05pm
Nearly one in four U.S. borrowers owe more on their mortgage than their home is worth, indicating that the housing recovery could see another wave of defaults. 23% of mortgage holders, were underwater in the third quarter, and 5.3 million have mortgages that are 20% higher than the value of their home since the recession began. Analysts expect prices to dip again this winter as foreclosures increase and economic growth remains modest. The Wall Street Journal reports.Its not a new idea and many have always clamored for the banks to take some responsibility for loose lending practices that helped fuel the boom. But now it seems that a major institution is on board and will spearhead a push for mortgage debt forgiveness.Citigroups quarterly reports on mortgage borrowersAs unemployment rises, more borrowers need principal forgiveness on their mortgages, not just restructured loans, Citigroup Inc.'s mortgage chief said. see chart here To date, Citigroup helped 130,000 homeowners with $20 billion in mortgages outstanding avoid potential foreclosure last quarter. But that number increased 20% from the second quarter. The sub prime debacle is behind us, the culprit now is unemployment.UnemploymentThe Main Cause of DelinquenciesThe main problem of the mortgage industry changes from house-price depreciation to unemployment, the mortgage market needs more programs where there is principal reduction for borrowers with negative equity in their home, as opposed to just a loan restructure, Mr. Das said. (Via Wall street Journal).Loan mods alone are not enough to avoid another tsunami of foreclosures. The housing recovery's momentum has slowed, and it seems likely that house prices will now resume their fall. Re-default rates on loans that had already been modified in the quarter were nearly 39 percent, up 10 percent from the second quarter. High unemployment coupled with a loss of home equity are too big a burden for many home owners and the temptation to walk away, may begin to look like good business sense.Foreclosures initiated in the third quarter rose about 10% from the second quarter but fell about 11% from a year earlier. Completed foreclosures fell less than 1% from the second quarter and about 48% from a year earlier. Things appear to be moderating, although I dont think Citigroup is addressing the Alt A recasts, which are expected to add to the problem, in a big way, beginning this year and into 2012.Citigroup Speaks OutCiti proposes new programs to forestall impending foreclosures. Recognizing that existing programs are not enough, the bank wants to reduce the principal owed and to bring this down to a number homeowners could cover. In return for forgiveness of some debt, Citi wants to share any potential upside. Banks step up and take a hit along with the home owner, home owner gets to stay in the house, Home stays off the market helping home prices stabilize and bank gets equity share for the effort. Having the lenders in an equity share position with home owners is a solid idea.Thanks for Readingwww.yourpropertypath.comRelated ArticlesFannie Mae Allows renters to Stay in Foreclosed HomeFannie Mae Gets Into The Home Rental BusinessNAR Report Third QuarterRead more…
Posted by Robin Whitt on November 24, 2009 at 3:40pm
From the Blogs and Forums I read and the Agents I talk to, it seems most Realtors consider themselves either a Listing Agent or Buyer's Agent. Of course that isn't any different than it has been in decades of Real Estate Markets. BUT today's Agents seem to narrow their category down even further to a REO Buyer's Agent or a REO Listing Agent. That is the Market. There are hardly any Vanilla Sales out there to be had, so we are REO Agents.If you sit down with a group of "REO Buyer's Agents" you will hear a plethora of gripes about "REO Listing Agents"; they are selling everything 'in-house', they are purposely trying to drive up the offers, they make the requirements for submitting an offer 'too hard', they NEVER answer their phones....And the list goes on and on.On the other hand you have an entire set of complaints from the "REO Listing Agents" about the "REO Buyer's Agents"; these dumb Agents can't follow directions, how dare they call me on the phone as busy as I am....You know you've heard these things...you may have even said them! LOLPersonally, I guess I can see each side as my Partner and I have tried to stay diversified. I spend the majority of my time focusing on REO's, my Partner is a great Networker and works with Investors, we have a wonderful Buyer's Agent, a terriffic short sale negotiator and of course our Transaction Coordinator who none of us could live without.Maybe I'm just being sappy with the holiday this week, but we should all be thankful for eachother. If there were no Buyer's Agents, the Listing Agents wouldn't have multiple offers on all their properties. If there were no Listing Agents, I guess the Buyer's Agents would be looking for a new career.So as you give thanks on Thursday, remember to be thankful for that REO Buyer's Agent who just can't seem to get an escrow check made out in the right Title Company's name, be thankful for that REO Listing Agent who you aren't quite sure exists because no one has ever actually talked to him on the phone or seen him in person. Without them, we'd all be working some boring job.Happy Thanksgiving!
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Posted by Mykel Martin on November 23, 2009 at 8:53pm
I just read a great article that I thought was worth sharing. Whether you're looking at the glass half full of half empty, you can't help but be excited at the possibility. In it, Brian Buffini, Founder & CEO, Buffini & Company discusses why now is a great time for Realtors to take advantage of the opportunities they are being presented with. It inspired me and I hope it inspires you.Brian BuffiniFounder & CEOBuffini & Companywww.buffiniandcompany.comWhy Do Realtors Get Depressed When Opportunity Is Knocking?Now is the time for real estate professionals across the board to take advantage of the opportunities today's market presents. Having weathered the economic downturn, opportunity is now knocking at the door, and now is the time to make sure you open it. Here, Brian Buffini, Founder & CEO, Buffini & Company discusses why now is a great time for Realtors to take advantage of the opportunities they are being presented with.Over the past 15 years, I've presented to over 1.5 million Realtors at live events and Buffini & Company has coached over 60,000 real estate and lending professionals. I mention all this only to underscore the fact that I have a pretty good feeling for the mindset of the typical agent and our studies have repeatedly demonstrated similar characteristics throughout the industry. One such characteristic we've noticed is that those working in the real estate industry tend to get very focused on the problems at hand.When the market is raging hot, there's no inventory. When the market gets cold, there's too much inventory. When the banks are taking too long with our short sales, we can't get a deal through. When the deal's closed, the banks aren't releasing their foreclosures! And today's major challenge? The appraisal mess.If I could help agents in any one way it would be this: there will always be problems in this industry-that is why we get paid the big bucks.Yes, things have been tough; incomes are down and the transactions are taking twice as much work. However, there's also the other side of the coin. House prices are down...significantly. There are somewhere between 300,000 to 400,000 fewer Realtors to compete with, and housing affordability is the best it's been in decades.Now, if you were looking at another industry that had that set of circumstances, I think it's safe to say the salespeople would be in seventh heaven. If Nordstrom's reduced its prices by 30%, cut financing by a third and there were half as many stores competing with them, you'd see their salespeople out celebrating in the streets.But when faced with the same situation, what do we Realtors want to do? Throw in the towel!No matter what your current circumstances may be, if you've survived this economic downturn, you're already a winner. It's time to take full advantage of the opportunity this market presents. There will be close to five million transactions in the real estate business next year. Why don't you go get yourself a bunch?Opportunity is knocking. Make sure you open the door.
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1. Avoid contacting your AM’s on the busiest days; Monday’s and at the end of each month.2. Contact your AM’s in the beginning of the month and ask what are their goals for the month and how can you help them reach those goals.3. Avoid calling – use e-mails; Use phone calls only if your AM’s prefer it.4. Always suggest at least two solutions for each problem.5. If you have already made the two suggestions – do not question the decision.6. Write your e-mail requests in such form in which they can respond with "Yes" or "No"(“time is of the essence”)7. Anticipate the needs of your AM’s.8. Find time to know your AM’s; their week and strong sides, (different AM’s have different approach of doing business, even if it is the same company)9. Communicate with your AMs on such high level so they do not need to call you for an update10. When sending updates, make sure that your notes are good enough to be copied into official reports11.Advise your AM’s what will happen in the next two weeks with open escrows12. Ask if an AM needs your opinion (do not want to waste time with Real Estate clichés)13. Address your questions by email to the right person at the AM company and copy your AM; i.e. escrow, closing dept, billing, and accounting questions, etc…14. Always acknowledge the receipt of important documents, e-mails or other requests.15. Make your comments the most important part of our BPOs ; Make the pictures the next important thing. (Take it further... do videos for our AMs)16. Check, double check, triple checks your packets before sending for signature. Pay attentions to details. “Dot your i’s & cross your t’s”.17. Do not to say it wasn't your fault or it's not your job. GET IT DONE!!!18. Do not to question the listing price even if it is far away from your suggested BPO price.19. Bring everything to your AM’s on a “silver platter”: the problem, the research, the cost, the options, the possible outcomes, and the end result.20.MANAGE YOUR AM’s, not the opposite - Be proactive, perceive information, be self directed ,don’t wait to be told what to do, advise and consult, educate and guide, be involved in the decisions, accept high responsibility. (This is the highest level of service your can provide)
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Hello REOPRO,This is my first blog post here, so I am just learning this system, more on that later.So, has anyone got started doing the Fannie Mae outsourced listings, and then moved to being a direct Fannie Mae vendor listing agent? I have done well with outsource companies and I am just starting to consider selling direct for Fannie Mae.I am an agent; soon to be a broker associate for a large firm West USA Realty and I have my own small team. I understand the Fannie Direct listings are Broker specific. There is an agent with my firm but in a different office (same designated broker) selling for Fannie direct I believe. Does anyone know if another agent in my company selling for Fannie will preclude me from getting a Fannie Mae direct listing account?And, like I said 'just learning this system' wow all the blogging and techno stuff is enough to make you crazy these days! Can't live without out, can't take a day off because of it! Hope to hear from members soon, looking forward to meeting new people, and learning new stuff.Jessica Klein, Realtorhttp://www.RealEstateCopa.comRead more…
Posted by Howard Bell on November 22, 2009 at 10:16am
30 Year Fixed Rate Falls Below 5 Percent30-year fixed-rate mortgage: Averaged 4.83 percent with an average 0.7 point for the week ending November 19, 2009, down from last week when it averaged 4.91 percent. Last year at this time, the 30-year FRM averaged 6.04 percent.The 15-year fixed-rate mortgage: Averaged 4.32 percent with an average 0.6 point, down from last week when it averaged 4.36 percent. A year ago at this time, the 15-year FRM averaged 5.73 percent.Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 4.25 percent this week, with an average 0.6 point, down from last week when it averaged 4.29 percent. A year ago, the 5-year ARM averaged 5.87 percent.One-year Treasury-indexed ARMs: Averaged 4.35 percent this week with an average 0.6 point, down from last week when it averaged 4.46 percent. At this time last year, the 1-year ARM averaged 5.29 percent.Freddie SayzInterest rate on 30 year fixed-rate mortgage loans fell for the third consecutive week to the lowest since the week ending May 21st, while 15 year fixed rates were the lowest since our records began in 1991, said Frank Nothaft, Freddie Mac vice president and chief economist. Low fixed rates throughout the third quarter prompted an estimated $1.1 trillion in refinancing activity, saving homeowners about $10 billion in aggregate monthly payments over the first 12 months of their new loan. Moreover, for the fourth consecutive quarter, more than 95 percent of prime borrowers who originally had an ARM selected a conventional fixed rate mortgage in the third quarter of this year.Meanwhile, new home building showed some weakness in recent months. Residential construction eased 10.6 percent (annualized) between September and October, largely driven by a 33.3 percent decline in new condominium and apartment buildings and represented the slowest pace since records began in 1959. And homebuilder confidence in November remained a relatively low level, according to the National Association of Home Builders .Thanks for Readingwww.yourpropertypath.comRelated ArticlesReverse MortgagesARM's - How Do They Work?EEMRead more…
Posted by Howard Bell on November 22, 2009 at 10:16am
Mortgage Bankers Association for the week of November 18, 2009Market Composite Index: (loan application volume) decreased 2.5 percent on a seasonally adjusted basis from one week earlier. .Refinance Index: decreased 1.4 percent from the previous weekPurchase Index: decreased 7.9 percent compared with the previous week and was 14.7 percent lower than the same week one year ago.Refinance Share of Mortgage Activity: increased to 72.9 percent of total applications from 71.5 percent the previous week. This refinance share is the highest share since the week ending May 15, 2009ARM Refinance Activity: decreased to 5.4 percent from 5.5 percent of total applications from the previous week.MBA outlook: (Excerpted from mbaa.org) The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 9.64 percent of all loans outstanding as of the end of the third quarter of 2009.Its job loss that is now hurting people. Job losses continue to increase and drive up delinquencies and foreclosures because mortgages are paid with paychecks, not percentage point increases in GDP. A perfect observation by Jay Brinkmann, MBAs Chief Economist.According to the MBAA.org site: T he outlook is that delinquency rates and foreclosure rates will continue to worsen before they improve. First, it is unlikely the employment picture will get better until sometime next year and even then jobs will increase at a very slow pace. Perhaps more importantly, there is no reason to expect that when the economy begins to add more jobs, those jobs will be in areas with the biggest excess housing inventory and the highest delinquency rates.Thanks for Readingwww.yourpropertypath.comRelated ArticlesFHA Losses: What it MeansFHA Has New RulesLoan Modification: A PrimerRead more…
Posted by Chris Treece on November 22, 2009 at 8:09am
Well....the plain, unvarnished truth is this: You can’t. Lots of very smart people on working on ways to track and measure social media marketing success, but to date there ain’t no such animal. All you can do if you’re going to be active in social media marketing, which you definitely should be, is to try and evaluate your goals in using social media and whether or not you are achieving those goals, or at least making progress.Here are some things to take into consideration when attempting to determine the success of your efforts in social media marketing and which approach you should take:• Remember what social media really is! It isn’t just about you trying to sell your stuff or promote your business. Social means just that---so socialize and don’t ram your products down the throats of all and sundry. Otherwise, your results will be much different than what you hoped for! It’s okay to promote your business some, naturally. But don’t overdo it and do make a point of giving other members something of value such as information or even entertainment. If you don’t think you can do this, then social media will not be successful for you.• Whatever you do in social media, try to assess a value. In other words, try to take stock of whether or not a particular tweet or comment produced the desired results for you. Obviously, you want keep doing the things that get the best results. If a certain photo or comment netted new followers or fans, then try to ascertain what it was about that particular thing that people liked, so that you can duplicate it.• Remember that having tons of followers or fans is not necessarily your ultimate goal in using social media marketing. In fact, quality is preferred over quantity. If you have 20,000 fans or followers and 75% of those people are spam accounts or auto followers, then what have you really got?In using social media marketing, since it’s basically impossible to track analytics of success, you should have a very clear goal for what you hope to accomplish by using this marketing technique. Then, simply do what needs to be done to try and achieve that goal!
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Posted by Lew Peterman on November 20, 2009 at 3:30am
BROKERS, NOW IS THE TIME TO STAND UP AND BE COUNTED.The above email subject (less the portion in parenthesis) hit your inbox if you have signed up with Equity Pointe to perform their cumbersome and time consuming BPO's.The email continues...you are required to do this....and oh by the way...don't ask for REO/BPO assignments from REOVM because they do not supply those.What a great idea....sign up with REO Vendor Manager so they can remind you when your license, insurance, etc. expiration date is approaching.......AND THEY WILL DO SO FOR A MERE $200/PER YEAR (disclosed after you begin entering your data).Then when you refuse to COUGH UP THE $200.00, EP will cancel you and explain how sorry they are that you will miss out being listed on the REOVM data base where other asset managers MIGHT find you.LET"S PUT THESE MONEY_GRUBBERS OUT OF BUSINESS ONCE AND FOR ALL !!(any takers on who owns REOVM?)PS: If you happen to do business with a certain other AM company whose 3-6 letter name starts with a letter between k and m, I would strongly suggest you consider cutting your losses and get out now......according to my little bird friend. This company and their 33% referral fee need to also feel the pressure we can exert when we unite versus feeding the greed.
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VIENNA, VA – Nov. 19, 2009 The REO & Distressed Asset Management Division of RE/MAX Preferred Properties today reported that, the nationwide default rate on home loans has risen to, over one in seven (1 in 7) borrowers, according to a Mortgage Bankers Association (MBA) survey released this morning. The MBA survey indicates that the foreclosure rate will likely continue to increase through early to mid 2010 as national unemployment rates are expected to continue to rise.Unemployment remains “the principal problem,” according to the Mortgage Bankers Association, survey. Homeowners in delinquent status now include a larger portion of borrowers previously considered credit-worthy and even includes borrowers with home loans insured by the Federal Housing Administration.This market syndrome is and has been, for several years, “collateral damage” said Clay Kime, General Manager of the REO and Distressed Asset Management Division of RE/MAX Preferred Properties of Vienna, VA. The “sub-prime” borrowers were washed out a long time ago. We are now dealing with the market consequences of credit-worthy homeowners who, faced with job loss, divorce, illness, relocation, etc. cannot financially extricate themselves from their homes and loans . . . when “forced to sell,” said Kime. Everyone . . . homeowners as well as banks, is having a “severe solvency/balance-sheet” problem, Kime went on to say.Nearly 9.6 percent of borrowers were delinquent on their home loans during the Q-3 09, according to the MBA survey, and another 4.5 percent more were actually some formal stage of the foreclosure process. The MBA survey report shows that, about 14 percent of home loans or 7.4 million households were either in a delinquent status or in the formal foreclosure process during the quarter. This is approximately one-half of the 12-15-million foreclosures predicted by many economic experts over the next 3-5 years.MBA’s Chief Economist, Jay Brinkman, stated "The outlook is that delinquency rates and foreclosure rates will continue to worsen before they improve."The reported delinquencies are at the highest level recorded ever by the survey, which has been conducted since 1972. This rate of delinquencies is up nearly ten percent (10%) during the same period last year. Year-over-year increases in this index are of great concern to the administration.MBA’s Brinkman said that if, as expected, unemployment rates peak by the middle of 2010, foreclosures could not reach their highest levels toward the end of 2010. He went further to say that even after peaking, foreclosure rates are likely to remain elevated as homeowners that have seen steep market price declines now owe more than their home is worth. There is no margin for error, or adverse financial change for most homeowners.The late 2008 Credit Suisse study paints a darker potential, as the ALT-A and Option-ARM loans go through the already pre-defined re-set period, which does not climax until early 2011. Kime said that as long as interest rates remain low, the default rates are expected to remain low. But as interest rates rise, the interest rate indices to which these loans are tied will increase to the point that more than fifty percent (50%) of the borrowers for these loans will statistically default.MBA’s survey revealed that the southern states, including California Nevada, Arizona and Florida, accounted for about 43.4 percent of the foreclosures commenced during the third quarter of 2009. Unfortunately both delinquency rates and foreclosure rates also grew in the Washington, DC metropolitan area..The number of homeowners delinquent or in foreclosure in the District of Columbia rose to 10.3 percent during the third quarter, compared with 7.4 percent during the same period in 2008. In Northern Virginia, 9.9 percent of borrowers were delinquent with their mortgage payments compared with 7.0 percent last year. Suburban Maryland has the highest percentage of borrowers in delinquency or foreclosure, rising to 13.9
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When I found out the NAR SFR designation and that the annual membership dues are free if completed before Dec. 31, I signed up and took the all day class last Saturday. The class is the REBAC's short sale and foreclosure class. Most of the agents there were taking the class for CE and I it was a nice surprise for me that I received 6 credits for the class, on top of part of my SFR training. The other half of the SFR training is 3 webminars of 1 hour each.The class was interested and different from the classes I tood at Five Star or other REO workshops, webminars, etc. This class was gear toward buyer's agents and the needs of a buyer's agent dealing with REO and short sales. At one point it was like a mob forming and ready to take on all the REO agents in Maryland. It was to see the transactions from the other side.There were several complaints and among them these are the ones that I remember:1. REO listing agents doesn't return my calls and only wants to be contacted by email.2. REO agents can't give na answer within 24 hours and buyer's have to wait sometimes weeks.3. Most REO properties are not in livable condition.4. REO agents don't clean, paint, repair the properties.5. Utilities are off.6. REO agents never call back or talk to buyer's agent, but they only get communication from assistants.7. Why do their buyers' have to be qualify by bank selling the property.8. Lack of property pictures on MLS.9. Why they can't get any REO listings and only a few agents do?10 Why the bank didn't take the cash offer that was 50% less than the asking price, if it is a cash offer ready to close in 2 weeks?10. and my favorite," Why is it that the REO agent in my office have 100 listings and he doesn't share with the rest of us?"I think the problem is that some agents are greedy and they want to swallow more than they can chew, I know some agent's that can't keep on with their listings, offers, etc. and they are doing a poor job to their clients and the buyers, but maybe they are just afraid that if they turn any listings down, they will loose the business. I am not naive I know what kind of business this is.There is a problem with little knowledge of the REO business by most agents. We need to educate the other agents out there and let them know what we are dealing with so they can also understand our frustrations. For most realtors we are the black sheeps of real estate. Also there were several complains about short sales, but I don't want to go there. I am glad that NAR has taking the step to recognize a designation that deals with our niche. I hope this designation continues to grow and the quality of the content continues to improve. I don't think any agent is ready to go list REO after just completing the requirements for this designation, too much content in too little time and the unique issues of listing REO properties were not addressed. I think the designation should teach realtors more about completing good quality BPO's, what entails to manage and list reo properties, from accepting assignments to evictions, repairs, negotiating the offers, reimbursement, settlement, etc. How to select a good property management company, the eviction rules in every county in the state, etc.Also I think for an agent to be a good REO agent he/she should have some transactions under the belt as reo buyer's agent and regular listings. Experience is very important and valuable, I hear a broker in my area told a brand new agent to lie in the applications to the banks and tell them that he has more experience in order to get the reo business.It is also important for agents to learn that there is more than doing bpo's and registering with every bank and asset management company in the world to get listing, we have to continue learning, and developing relationships with asset managers and other agents by attending conferences, dinners. and participating in social networks like REOPRO.It is good to hear how the other agents feel about us. I apologize to other agents if I ever did something that can be consider rude, or if my clients ever made their clients wait for an answer longer that they were expecting. I have only been listing REO for 2 years and I haven't deal with a buyer in 6 months, but it is easy to forget what it is to be a buyer's agent.I encourage all agents to take the SFR designation, I knew a lot of the content covered, but I didn't know everything and I learned a lot from the class and my classmates.
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Posted by Howard Bell on November 15, 2009 at 9:31am
Sales Up Prices DownThis same story has been playing our for quite a while now. The trend towards lower prices will probably continue even as the recession winds down. Continuing job loss, a weak recovery and real problems in all real estate sectors, now focused on commercial property and Alt A high end homes, should keep a lid on prices. That said people are beginning to feel good again, or at least less wary. They are stepping out and buying homes and that is a good good sign. see chart hereExisting-Home Sales Surge While Price ModerateMost states saw rising existing-home sales in the third quarter, with price declines in many metro areas, according to the latest survey by the National Association of Realtors.NAR reports that total state existing-home sales of single-family and condos, increased 11.4 percent and are now 5.9 percent higher than the third quarter of 2008. Sales increased in 45 states and 28 states saw double-digit gains. Year over year sales were higher in 32 states and D.C. Buyers are coming back and in some parts of California we are seeing multiple bids and homes selling for more than list.During the third quarter, 123 out of 153 metropolitan statistical areas, 2 reported lower median existing single-family home prices while 30 areas had price gainsNAR chief economist,Lawrence Yun spoke of the the tax credit. He goes on to say: We cant underestimate just how powerful a catalyst the first-time home buyer tax credit has been for the housing sector. Its given buyers the confidence they needed to get off the fence and take advantage of extremely affordable housing conditions. The buying conditions this year are the most favorable on record dating back to 1970, but the tax credit is allowing buyers to set aside any reservations about waiting for a better deal.The decline in the national median price has moderated recently, and a shrinking supply of unsold inventory suggests we are getting closer to price stabilization in many areas, but we need a steady stream of financially qualified buyers to further reduce inventory and get us to a self-sustaining market, Yun said.Soaking up supplyForeclosures will continue to come on the market, but rising sales from the expanded tax credit should stabilize home prices by next spring and help to stem future foreclosures. To be sure the numbers are mixed and some areas are experiencing reversals, but over all we are beginning to pull ourselves up out of this slump. As long as we continue to see a Fed willing to support the markets until they are strong enough to stand on their own, we should be able top avoid a double dip. Encouraging was to hear the G20 come out with a continuation of supports. This recovery is still in the hands of policy makers.Thanks for Readingwww.yourpropertypath.comRelated ArticlesHome Values Boosted by Walking ConvenienceThe official figures indicate recession has endedGreen Homes and Sales TrendsRead more…
Posted by Howard Bell on November 15, 2009 at 9:30am
Good News for foreclosure victims. Some homeowners will get an option to rent the home that they just lost. Its possible to stay in your home as a renter. Fannie Mae will give borrowers facing foreclosure an option to rent their homes for a year.Foreclosed home owners will be able to sign a one year lease, with possible month to month extensions with Fannie Mae. Good for everybody.Homeowners get a little relief and are able to remain in their homes for a year or more. This will buy them the time they need to regroup. It will also help keep neighborhoods from going missing. Rather than rows of abandoned homes with all the crime and destruction that vandals create.. Neighbors that have not lost their homes will not see more equity loss as squatters and criminals move into vacant homes. The banks are reluctant landlords and they are allowing property to decline.It will keep supply off the market for at least another year and that is good for all the handlers, Fanne Mae because it can put off the expense of a foreclosure, the banks because less supply will protect equity in homes they are off loading and everyone one because it will help stabilize home prices. I dont think we can have a strong recovery without real estate.To qualify, homeowners have to live in the home as the primary residence and prove that they can afford the market rent, which will be established by the management company running the program. In many cases, rents will be less than the mortgage because properties that are now worth far less than they originally paid.The downside is seems to be that homes that might normally have been foreclosed and sold will now remain owned by taxpayers. Homes, according to Dr Shiller have risen faster in the last few months than he has ever seen. Perhaps Fannie will profit a little while doing a good thing for families that must be a little traumatized by it all.And even if prices don't rebound quickly. Fannie Mae gets rental income, avoids foreclosure expenses gets to helps people.Thanks for Readingwww.yourpropertypath.comRelated ArticlesThe Fed and The Housing RecoveryBanks and the Housing RecoveryFHA has New RulesRead more…
Posted by Howard Bell on November 15, 2009 at 9:29am
The home buyers' tax credit has been extended to April 30, 2010. Obama approved the extension as part of a $24 billion economic stimulus bill.The housing tax creditQualifiersThe measure limits the purchase price of the home to $800,000.It also imposes income caps so that people who make more than $125,000 annually and couples who make more than $225,000 would not be eligible for a refund.Anyone who collects the tax credit but sells their home within three years of buying it must return the refund.Current homeowners who are buying a new primary residence would be eligible for a $6,500 tax credit starting Dec. 1 if they owned their home for five consecutive years in the previous eight.Military families who have been deployed overseas for 90 days or more in 2008 or 2009, would have until April 30, 2011 to sign a contract.The program is estimated at $11 billionDouble Bubble TroubleDr Shiller, co-developer of the Case Shiller home price index and Yale economist points out that the price recovery of the last few months is the sharpest snap back he has ever seen. he is concerned that that in supporting a real estate recovery we may again be fueling a bubble.NAR reports that total state existing-home sales of single-family and condos, increased 11.4 percent and are now 5.9 percent higher than the third quarter of 2008. Sales increased in 45 states and 28 states saw double-digit gains. Year over year sales were higher in 32 states and D.C. Buyers are coming back and in some parts of California we are seeing multiple bids and homes selling for more than list.Thanks for Readingwww.yourpropertypath.comRelated ArticlesFannie and Freddie: And How We Got to Own it AllEnergy Efficient MortgagesRelocation TipsRead more…
Fitch Solutions reported this week that its pricing index for subprime residential mortgage-backed securities (RMBS) originated in 2004 fell by 16.7 percent in November compared to just one month earlier.Other vintages included in Fitch’s study, from 2005, 2006, and 2007, showed small gains on a month-to-month basis. The gains helped to temper Fitch’s total market subprime RMBS price index so that it recorded only a “marginal” decline, according to the firm.While prices among recent vintage U.S. subprime RMBS continue to stabilize, 2004 is seeing a substantial drop-off in performance with no signs of improvement, Fitch said in its study.At first glance these statistics may seem to paint the more recent vintages in a better light … showing “gains”, “stabilizing”, and other affirmative-sounding depictions. But Fitch says the reason its 2004 subprime price index is deteriorating is because the 2004 loans are higher quality.Recent loan level analysis conducted by Fitch Solutions of the indices’ constituents revealed a significant uptick in the constant prepayment rate (CPR) of the 2004 vintage, meaning the credit-quality of a large number of these loans is high enough that they are being refinanced to allow mortgagors to take advantage of current low interest rates.The CPR for the 2005-2007 vintages, on the other hand, remained unchanged due to the lower quality loan-to-value ratios precluding much refinancing, Fitch explained.“As the good quality loans are refinanced, the remaining pools are on average of lower credit quality, a factor that largely caused the drop in price for the 2004 Subprime Price Index,” said Thomas Aubrey, managing director at Fitch and author of the study. “Credit quality among the pools will continue to converge over time as better quality borrowers take advantage of refinancing opportunities, thus leaving the remaining pool with more consistent weaker borrowers.”With these weaker, diminished quality loan pools also comes a higher default rate – another factor contributing to the declining performance of the 2004 subprime RMBS, Fitch said.DSNews 11/13/09
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Man, I get a bit crazy sometimes when a buyer agent refuses to control his clients and "keep them in the deal". REO process is slighlty different than straight residential and we give all the clues we're allowed to give by law and I'm amazed how a buyer's rep, maybe not experienced in REO, will disregard the "keys to the kingdom". We have experience and besides we represent the asset! I think my kids listen better (most of the time) :) I hope that agents representing those intending to buy/invest in REO will take the cue, and take the time, to please listen to the agent representing the REO asset. We can make the transaction smooth, get it done, and please our asset managers at the same time. That's the ultimate. Well this is today's rant, it's over, but I'm sure I'll have a new one tomorow!
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According to the Indiana Association of Realtors (IAR Advocate 11/06/09), it is now Indiana state law that lenders must acknowledge short sale offers within 10 days. Under the 2008 law, lenders then have 30 days from receipt of the offer to accept or reject the offer.There is an on-line complaint form that can be filed with the Indiana Department of Financial Institutions (DFI). The DFI uses the complaints to track and establish patterns with certain lenders and use regulatory authority to investigate.Additionally, the Homeowner Protection Unit of the Indiana Attorney General has enforcement authority over the complaints. The complaints should continue to be filed with the DFI, with the field that the Homeowner Protection Unit should investigate marked (Field #18 on the Indiana complaint).We repeatedly hear from agents that the reason short sales do not move to closing is that it sometimes takes the sellers months to respond to offers.I strongly suggest that every agent check and see if their state has a similar law on the books and let the lender know you know about it when submitting a short sale offer. I know somewhere on our future short sale offers will be a sentence requesting a response by a certain date “per Indiana Statute” as a reminder to the lender that there are statute imposed time limits in place. This would also do to notify the lender of the time limits if they were not aware of them.Perhaps we can use our state laws to move our short sales along and keep them from becoming “long sales”.I also strongly suggest that agents working with lenders as short sale reps make their clients aware of any local or state laws of this nature. Be aware that just like a like a REO AM, the short sale AM is most likely dealing with properties in multiple states and jurisdictions and it is our job to protect them and make sure our clients are within the local laws.
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