Purchasers at foreclosure need to address new legislation that went into effect May 20, 2009 called the Protecting Tenants at Foreclosure Act of 2009 (note: it is Title VII in this link). There is still the advance rent and security deposit issue as the ACT does not address how the tenant can protect itself from the loss of those monies.New new Act is very broad and effectively covers every residential mortgage in every state. It does NOT apply to tenancies that are not "bona fide" - and that definition is also very broad. For example, if you are in foreclosure and the tenant is your child, the Act will NOT apply.The key is when was the lease entered into - was it before or was it after the foreclosure was filed? If it was before the lease was signed, then it takes precedence over the mortgage foreclosure and the tenant cannot be evicted because fo the foreclosure - provided the tenant does not breach the lease. The ONLY exception is if the buyer is purchasing the property as its PRIMARY RESIDENCE, in which event the 90 days.If the lease was after the foreclosure, then the tenant can be evicted 90 days after notice to vacate is given by the NEW owner after the foreclosure sale. In essence, any lender must give any bona fide tenant 90 days to vacate the premises AFTER the lender or any other buyer at a foreclosure sale acquires title to the property. Of course some state tenant laws still apply, for example, if the prior Landlord (the foreclosed owner) had given a notice to vacate prior to the foreclosure sale occuring (because of a tenant breach) in which event that notice start date would remain applicable.The HUD explanation is simple regarding the notice to vacate:(1) The advance notice applies to tenants in any foreclosed dwelling or residential real property, regardless of the type of loan or other security interest on the property.(2) An advance notice of 90 days is the minimum period of notification. A longer period may be provided, for example, if greater protections are provided by state or local law.(3) Responsibility for providing the advance notice to tenants falls on the immediate successor in interest of the property, which will generally be the purchaser.(4) The notice must be given to anyone who, as of the date of the notice of foreclosure, is a bona fide tenant, whether or not there is a lease.A detailed analysis of the Act is found at: PROTECTING TENANTS AT FORECLOSURE: NOTICE OF RESPONSIBILITIES PLACED ON IMMEDIATE SUCCESSORS IN INTEREST PURSUANT TO FORECLOSURE OF RESIDENTIAL PROPERTY.Remember that during the remaining term of the lease or the 90 days notice period, the terms of the lease still apply - the tenant obligations to maintain the premises, pay rent, etc. must still be adhered to by the tenant or they can be sued and evicted by the new owner! This new law is NOT a free ticket for tenants!!!!It is important to recognize that the new law is only a starting point - STATE LAWS that provide greater protections are still in place and will override the new federal law. I would also note that if the lease term was finished before or during the 90 day period, the lease term is NOT extended by this law and normal state remedies for holdover tenancy would be in effect.MISSING SECURITY AND ADVANCE RENT PROTECTION FOR TENANTS -The ACT does not provide any monetary protections that I spoke about in my previous article and therefore the game plan in that article still applies. The problem is that most tenants gave to the original landlord last month's rent and a security deposit. The new owner has no responsibility to the tenant for those monies!!There can be other more imaginative ways to proceed - but remember that because the old landlord that lost the house isn't the owner anymore does not mean that you get a free 90 day pass to live in the house (althought that is how it is likely to pan out for new owners). The new owner can sue the tenant for unpaid rent for the 90 days. That leaves the tenant in a conumdrum of how to recover the deposit and advance rent and that is why participation in the foreclosure suit with a request to the court to deposit monies to the court registry is going to be the best legal route a tenant can take to demand and get fair treatment regarding its financial obligations. My suggestion is to get involved as a tenant in the foreclosure suit when served with the foreclosure summons and complaint. You may want to seek the advice of an attorney in your State when doing so.Copyright 2009 Richard P. Zaretsky, Esq.Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com. See our easy to find articles at TABLE OF CONTENTS - SHORT SALE AND LOAN MODIFICATION ARTICLES.
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I came across an interesting article in my local newspaper, Arizona Republic, promoting a free loan modification event that will be held through October 5th at the Phoenix Convention Center. It's part of the "Save The Dream Tour" being promoted by Neighborhood Assistance Corporation of America a non-profit advocacy HUD certified couseling agency. According to the agency everyone who qualifies leaves the event with a modified loan which could include not only interest terms modified but also a principal reduction. Inquired how this is possinble, Bruce Marks, Chief Executive Officer, states "It's basically nonviolent terrorism against banks". What do you think?
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Posted by Daniel Ripper on October 2, 2009 at 7:02pm
While most of the REO agents in my area sit, twiddling their thumbs waiting for this Tsunami/Shadow Inventory/Wave to hit, I've been blessed with keeping a flow of inventory hitting the market making me one of the more "popular" agents on the block. While this is good for my business, keeping me and my staff busy, I've had the unfortunate experience of dealing with buyers agents who are unhappy, frustrated, or just downright negative. They continously complain, threaten me, tell me how to run my business, even demand me to accept their clients offers! The sad part is some of these agents are within my office! Its a shame agents have to go this low. I simply just take a deep breath and stay focused.Initially I thought it was just me, I mean I'm a down to earth guy, really laid back (don't let the picture fool you) but after talking with some of my peers in the same boat, they were experiencing similar reactions. Recently at the 5 Star an agent on the panel was going over productive ideas and one of them was "don't let the buyers agents control you". I was relieved to know that many of the REO agents are going thru the same issues.If you're a buyers agent on this site and are trying to get into REO, until you get that first listing, here are some tips:1. follow directions. Usually a good listing agent will leave instructions on the MLS. For a better response on your offers, please have your contract packages complete.2. have your lender contacts ready. If a listing requires a specific prequal from a direct lender, have your client in touch with that loan officer immediately. With the shortage of inventory, it is very competitive and timing is a huge factor.3. understand the REO market in your area. If your buyer is an FHA first time homebuyer with 3.5% downpayment competing with investors offering cash 20% over list, your buyer does not stand a chance.4. understand the thinking behind the offer accepted. Just because your FHA, 3.5% downpayment offer was 40% over list price, and didn't get accepted, understand why. Banks usualy have a couple of BPOs done from local agents and a appraisal. Its how they get their list price. Just because your client offered 40% over asking dosen't mean they will accept your offer. We know it won't appraise and don't want to deal with it later in the transaction.Staying in control keeps my staff and I busy as we can spend all day arguing with buyers agents who are not even in contract with us. I hope this helps for everybody on this site. OK I'm done venting. Thanks for reading!
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There has always been a cost to become a preferred REO broker on a network--there should be.If it was free to train and become a preferred broker with an REO network, then every Tom, Dick and can't save a buck to save their life agent would be on there. REO is EXPENSIVE! In any given month, I write checks for $20,000+ for utilities, sewer, garbage, repairs, contractors, rehab, signage, marketing and staff. There were months last year, in the winter, when with snow removal and winter power bills I was spending $50,000. If you have a month with no closings and reimbursements are running 45 days, you need to be prepared as a business person for the costs of doing business. If coming up with $600.00 for training is a hardship, you are probably not the agent for the job.There are a lot of new players in the game--good, strong players--people who are branching out from REO as usual and trying to make a go of asset management in an organized way. Companies that are working to earn accounts from large REO wharehouses in the hopes that they can reduce the file to asset manager ratio and improve the quality of listings and reduce days on market in REO deserve a chance--unfortunately, the best asset managers are just that, asset managers, not corporate financiers. They are looking for a little start up capital.If you buy into a new company thinking that your investment entitles you to assets, you might be mistaken. If you buy into a new company knowing that you are making a capital investment in a group of asset managers that you believe in, make sure that they also believe in you and that you will do whatever it takes (in addition to paying a fee) to make their business succeed. That means staying on top of the assets, maintaining them, pricing them well and getting the transaction done with no drama.There is always the alternative--be such an amazing agent that the asset managers will seek you out and waive the fee. As in all other business ventures, your performance speaks for itself--you can put an ad in every website in the world but if your stats don't back up the ad, you're wasting your money.Get 'em the highest price, the best terms and the lowest liability. Works every time. That's just my two cents--and you don't have to buy it. :).
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I have been an REO agent since May of last year. Five Star this year was my first conference and I good learning experience, I went with 3 goals in mind, 1. To meet AM to increase my business. 2. To increase my education on the industry, and 3. To get out of the routine for a couple of days and have fun.I had a great time meeting folks from all over the place, attended some classes to learn more about the industry, the challenges, etc, and I have decide to take the entire Five Star certification in the near future.I met several realtors from all over, some with experience but mostly realtors like me with less than 2 years in the REO business, still trying to find pot of gold at the end of the rainbow. I heard some star struck when they saw some of the people who have the online "universities", I know of one of those companies they were talking about, because I felt for it and paid to hear their infomarcials and pre-recorded calls every week, and call the AM list with wrong numbers and old contacts, etc. The realtors talking about them seem very nice people who were shy and affraid to jump in the business and then try to swim, but rather they were talking about getting all the certifications and classes before tryin to get the business form the AM, I think if they keep on waiting they will miss the REO bubble.I also met some season agents like Jesse, who sugested to work hard in the networking events and the expo hall. I did that and I know it will pay off, I already had a phone call from one of the AM I met with a possible re-assignment. Also I met a few other AM at the parties and at the hotel lobby.I went to the servicer's open house and I felt like I was in church during communion with all the realtors lined up to go shake hands and drop their business cards, borchures, hotel room keys, etc. I feel like that is like the lottery, I am a little cinical about this, but I wonder if they actually go back to their offices with all those cards and brochures, and actuallly sort them by state and find someone in an area that they might need coverage, I went there for the experience, but I am not holding my breath.I will recomend agents to go to Five Star with a flexible agenda and seek the opportunities and take advantage of them. The networking events are like the gold rush, AM are the gold and everybody is trying to get to themm they are the rock stars of the party, and it is important that if you don't have the connections, become friend with someone who has them, and dont' be ashame to tag along, the market is very competitive and everybody is using their best game to get in the door.Yes I got fun too, I met some of the folks that come to this network at lunch and at the parties, free food and open bar, I had a blast at the 90's and 70's bars. I am sure I will attend next year's convention, and I will be more prepare to get more out of it, I am already working on the game plan for REOMAC.
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For many Agents, paying to get listings seems the only way to get their foot in the door. I understand why they do it and, admit…..I was one of those agents to.
As you read this blog, understand that I am jaded, burned and completely angry about this business model, as described above and, for those of you doing this to agents…..well….just wait and see. (Insert evil, diabolical, angry, bone chilling laugh here)
I really can’t remember who said this to me or where I read it but, it has completely stuck and I am more than happy to pass this wisdom on to my fellow REOPro members.
“If the company charging you upfront fees for listings isn’t confident in their leads enough to take a payment out of closing, how can you as the agent ever be confident the leads will ever close?”……unknown.
In that one statement, you can find a lot of wisdom.
Well, I can tell you that many of these firms,
“see a leaf fall and believe they now which way the wind blows but, I tell you that a hurricane is coming that will sweep away their pride.” Elizabeth, The Golden Age
The death of these firms is that they are all doing the same thing. Everyone is charging Realtors, everyone believe us to be the cash cow, everyone wants an up front fee and the moment someone enters this industry with a new, innovative, completely crazy idea, many of these companies will wash away with the tide. The really sad part, a lot of Agents will be out hard earned cash and will bear direct witness to the folly of this business model.
Sorry for all the cryptic writing and vivid imagery but, a Hurricane is coming, I can see it on the horizon, can you?
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There are so many great things to say about the Loan Exit Option program, I don't know where to begin. So I will start from the beginning. When I was initially approached to participate in the pilot of this program, my biggest concern was the stigma that word Short Sale have. Traditional short sales on average take 60 days before a negotiator is assigned to the file. Then an additional 60 days and multiple BPO's before an approval is rendered. By this time buyers are frustrated, sellers are discouraged and the property may or may not be on the chopping block to be sold on the court house steps. Good luck trying to get it postponed if you haven't been assigned a negotiator, and in some cases even when a neog is assigned the property still ends up being foreclosed. This is all too common and what many Realtors and homeowner associate with the word short sale.Having successfully sold five short-sales through the Loan Exit Option program, several short sales the traditional method, as well as with 3rd party negotiators; I can honestly say, Hometelos LEO is by far the most efficient and should be the only way short-sales are sold. On average, within 10 days of initial assignments these properties were placed active on the market with a conditional Settlement Letter on File. I'm 100% positive, marketing these properties as PRE-APPROVED Short Sales, as well as their exceptionally well maintained condition, were the reasons each and every one of them had multiple offers within the first 7 to 10 days on the market. Not only did they have multiple offers, but they all closed and qualified for buyers with FHA financing..Part of the home owner’s responsibility for participation in the program is that the property must be in marketable condition.One of my assigned properties was denied entry into the program until it was brought to a marketable condition by the owner. Within a week the owner brought the property to marketable condition and it was allowed to be placed into the program. This is similar to what REO Brokers refer to as Cash for Keys (CFK) with bank owned properties. The only difference is no cash is given to the owner or previous occupant. The incentive to the owner is they are being allowed to short sale their property instead of having it foreclosed (savings the bank thousands of dollars in fees that would be spent to foreclose, clean, maintain and evict, as well as, several thousand in declining home values that vacant homes are prone to.), and in cases when they are living in the property, they will be given a settlement for relocation upon sale. In a CFK situation the previous owner is given money regardless of the sale of the home, as long as it is left in broom swept condition.Unfortunately many REO (Bank Owned) properties will not qualify for FHA financing due to their inferior condition, and this results in properties selling for lower than what that would if they were in better condition. This is great for investors, and cash buyers that can make improvements, but terrible for comparable values and fist time FHA home buyers.As an experienced Realtor/Broker and REO broker, I can honestly say LEO will play a critical and role and be on the forefront on bringing about stabilizing and appreciating housing values across the nation. I don't know, nor have I heard of any other operation doing what we have already done with LEO. I'm looking forward to our recovery as we approach 2010 with Leo on the forefront. Lenders, Banks, Loss Mitigators, if you haven't got on the shuttle, you should hurry as we are counting down for take off.. You don't want to miss this shuttle!!For more information on Hometelos Leo visit www.hometelos.comwww.code3realty.comwww.firstpreston.comRead more…
I won’t make you guess. The “Big Two” are Wells Fargo and Bank of America. Why are they the big two? They are the big two because during the second quarter Wells Fargo and Bank of America combined, originated 44% of all home loans. http://www.nationalmortgagenews.com/lead_story/?story_id=96Why am I telling you this? Well, despite the fact that many loans are sold or transferred from the originating lender, this still means that the “Big Two” are pretty strong and are likely to have REO asset well into the future. Now you say, “but their networks are closed”. True, so you need to know how to get in to their network. Hmmm…sounds like a great question for “Ask the Asset Manager”!
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Interestingly enough I came across an article that mentions the numbers regarding the cure rate. Basically cure rate is the percentage of portfolio of delinquent mortgages that are brought current or paid. According to Fich Rating, a global credit rating agency, the cure rate among prime fell to 6.6% from an average of 45% during 2000 through 2006. At the same time Alt-A fell to 4.3% from 30.2% average and subprime fell to 5% from a 19% average. Unbelievale numbers that exposes the fragile state of our economy.
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So…Where are we heading in this market? Countless moratoriums at the Federal and State level. Moratoriums from the banks themselves trying to work out loan mod’s. Local Judges refusing to evict homeowners., Local sheriff’s doing the same. Now we have programs like HAMP and Court decisions like National Bank v. Kesler. There is such an underpinning of resentment from the American people against not only the Banks but corporate America as well. Will this sentiment continue to stall the inevitable? I for one am of the opinion that the market must be allowed to run its course. Real estate is and always has been cyclical. Yes, this is one of the worst markets we have seen in decades but “this too shall pass”.There is a huge amount of shadow inventory the banks are holding. Release it. By all means, do loan mod’s for people who are able to, for people who were duped into loans they could not afford. Help those that we can but at the end of the day these loan mod’s are mere Band-Aids, just delaying the inevitable by a year or two. Put the homes that are foreclosed on the market. Foreclose on the homeowners that have no justifiable means to pay those notes and let the market work its way out. It will be ugly or uglier than it has already been…But we will see quicker return to normalcy. The Government would be better served by spending to create jobs so that MORE homeowners do not lose their homes.So, how do we repair it once it hits “Sea Level”?Keep interest rate levels low and keep the tax incentive for first time home buyers.Ease restrictions on investors purchasing multiple properties. (This is key to the rebuilding)Ease restrictions on homeowners who have had foreclosures and or BK’s to get back into the market.Create restrictions so Banks can no longer offer exotic loans (I hear new ARM programs are coming)There are many others but I would love to hear some other ideas.
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Having done a number of REO listings over the years, it is still a relatively new field for many of us. I am not an expert, I learn something new every day. Please keep in mind this is meant to be humorous!1 - Got an email today from my asset manager letting me know that I was selected to market and list their property. First though I have 24 hours to obtain an occupancy verification, gain interior access to get pictures, find out the HOA company information and any past due amounts, gain access to all the county records to do a quick search to see if any liens on the property, do a BPO on following that particular companies requirements, find out if there are any utilities on or other pertinent information that I need to pass on to my client. Oh, I best find out what the fees are for getting it switched over into my name along with the deposit required so I can make sure I have enough in my bank account to accept this listing and service it properly for by having all the utilities in my name and which I pay for (of course I get reimbursed as long as I turn in my bills and proof of payment in a timely manner and agree to wait for the payment - most of the companies I have chosen to work with pay very promptly - those that don't go on to find out agents).2 - Whew, got that all done, wait a minute, what are all these other tasks now? They weren't there a minute ago?? Oh, now I have to do a personal property evaluation form and they want pictures of each item (good thing I thought ahead and took pictures while I was doing the interior BPO pictures.) And what's this? Because I marked that the property was occupied, I have to now offer Cash For Keys? What are all these forms? I have another 24 hours to get this done? No problem, I will go back to the house, knock on the door and since I know the family is out I will leave the letter and my card in a envelope taped to their front door (don't forget the picture of that) and if they do answer, I will explain what I am offering and give them the number to the Loss Mitigation department if I have received that. I will set up a time within 2 weeks to a month to allow the occupant to find a new place to live and then I will meet him and get the keys if the property is left in clean condition.3 - Now that the home is vacant (trashed out if it was not an occupied property when I took it over), rekeyed the lock, made sure I had the right combination for the private contractor lock box and have placed a proper MLS lock box on the property, now I can notify my Asset Manager we are ready to rock and roll. Oops, I haven't gotten the listing agreement with the amount they are allowing me to market it at, so I have to remove the sign from the yard cause I can only put it up when I have a signed listing agreement. BUT I can keep the sign in the yard that says the home is in the process of pre-marketing and in case of emergency to contact me at a specific number. I don't accept any offers at this time, but I do keep a running tally of the names that call so that I can call them after I have gotten the listing in the MLS.• Are you wondering why I placed the MLS lock box on the house if there is a private lockbox? Well, I am blessed to have an association whose lockboxes keep track of who entered the property so I don't have to keep a running log of whose has called in to get the lock box code, my log is printed out weekly and placed in the file so when I do my monthly marketing report on that property I can give my AM the correct number of showings and in the meantime I've been able to call back for feedback to since the buyer's agents sometimes forget to call and give that. It's a team effort and I don't mind as I would expect it if I forgot to call and give feed back.4 - Well, now we have the listing agreement all taken care of and I am ready to MARKET AND SELL! First, I am going to go back to the property, make sure all the utilities are on, light bulbs are not burnt out, place a fragrance pot in a couple of rooms, set the air conditioning at about 80 in Summer at 65 in Winter so that when the home is shown, clients are not uncomfortable, I want them to think they are truly home so it will sell better. I am also going to place brochures on the counter, information about special financing and contacts for them to be able to call to see if they can help with the loan. I also leave my agency disclosure brochure, my cards, and if there is an HOA then I try to leave copies of at least the rules and regulations and contact information in case the client and other agent want to gather more information. I also want to make sure the yard looks good and if not I get the landscaper to mow it,5 - OK, the house is set up. I can go back to the office, or home since it is probably about 8 PM and put in MLS and call the people that have been calling about it since the in case of emergency sign went up.6 – Been a month, had 5 offers and they've all been turned down. When will people realize that the pricing is normally set within a realistic range and these 40% and 50% offers are not going to cut it, but I present all offers! I got a task from my asset manager that my Monthly Marketing Report (similar to a BPO) is due in 2 days. Oh I forgot to take pictures yesterday when I was over for my weekly checkup on the property, now I have to go get updated pictures and get them sent in with the new solds and listings that have happened in the last 30 days. Maybe they will lower the price, maybe they won't. My job is to get them the best price possible for the property, not price it at a give away amount! It takes a little maneuvering sometimes to get that right price. But they have lowered the price a little now, and so I go in and redo the MLS, redo the brochures, upload the new MLS to my asset manager, replenish the brochures at the property and call the people that have shown it to alert them to price drop.7 - Just got word after month two and another MMR (Monthly Marketing Report) that the price is down again. Wow, my phone is ringing off the hook from that ad I put in the paper. This price is really a great price and seems to be attracting a lot of attention. Listen to my efax tell me I have three faxes waiting, TERRIFIC, multiple offers on this property. But 2 of the agents didn't call to let me know they were submitting offers.8 - I start filling out the forms for the new offers, oh no, those two agents that didn't call me and just faxed over the offers did not include their contact information, no letter of preapproval on one, no proof of funds on the other, and I have no way to easily find their phone numbers. So I put everything off to the side, go into my MLS system to the agent roster and hope that the name that is scribbled on the last page where they signed it is legible and now I start calling the numbers to verify their contact information. I hope that since it is after hours, they have updated their cell number in the agent roster so I can contact them tonight and get this submitted. Great, it's 11 PM and I've got all these offers submitted in the system and I am closing up shop!9 - 1 PM the next day, I get an email from my AM, notify all parties involved we are in a multiple offer situation and to submit their highest and best offers by 5 PM the next day. Back on the phone, contact all agents and make the notifications and wait for the new paperwork. In the meantime made a notation in the MLS so that other agents will know what is going on and that they have to submit their highest and best by 5 PM the next day.10 - New offers are in - 1 at the same price and two updated ones and look there, three more new ones. And who said there were no multiple offers anymore. Way to go to all you agents out there with buyers!! Ok, all offers are submitted again, now I am off to bed and hey it's only 11:30 PM.11 - Start the next day off, excited cause I know that one of those offers is going to be accepted. Wow, locked up the office tonight and no emails, calls or information from my Asset Manager.12 - Day two - still no word13 - Day Three - I've gotten calls from agents wanting to know if I have heard anything yet. No, nothing yet,14 - Day Four - Yeah, an email! Offers 1,2,3,5 and 6 are rejected. Offer 4 is accepted with the counter proposal paperwork and all addendum's attached. I notify all the rejected agents that their offers have been rejected, I call agent with offer 4 and let them know that I am forwarding the paperwork for review and signatures and I have 24 hours to get it back to my asset manager. Mind you, offer was an all cash offer, but had a couple of contingencies on it and offer 4 was the same price, all cash but no contingencies. The bank accepted the easiest one with a quicker close date as the only counter proposal. Mind you offer 2 was higher than all of them, but was a conventional loan with 10% down.15 - Day Five = Got a call back from the agent with offer 4, his buyer has decided that he is not willing to meet the contingency with the new closing date and has chosen not to sign anything. He had given his highest and best offer! Back to the drawing board. To cut a long story short, we were able to get Offer 5 resurrected and put on the agenda to close. Got everything to lawyers, agents, etc. set up closing date in 2 weeks. I am all smiles!!16 - Day before closing, I get a call from the sellers attorney that the deed had not been recorded yet and we are not able to get the closing done in time because the deed is still in transit and it will be a few more days. Ok, no problem!! I call the buyer's agent and alert them and suggest we get an extension signed for 10 - 15 days or earlier, make sure the buyer's attorney has been notified and wait this out.17 - My asset manager calls me, they never call me they only email me this is scary, and ask if I can help the process along by going to the courthouse and seeing if there is anything I can do to walk the deed through for signatures. Ok, sure I will be happy to. I've learned, don't upset the people at the Recorder's office and don't upset the people at the Master In Equity office. I do my due diligence, find that the deed is actually at the recorder's office, they are recording it as I stand there, I go back to the office, call my asset manager and I am a hero!!16 - Ok, closing is just a couple of days late, but that's ok. Now I have to get all the lock boxes off the property, remove all the information from inside, pick up my sign and call and have all the utilities removed out of my name. I then have to get the utilities to send me an expedited bill as I only have 10 days after closing to get ALL bills submitted for payment.17 - Closing is done!!! Check is in my hand!!! Whew, that was good!18 - 30 days have gone by, I still haven't received my check for my utility payments, collection call made.19 - Oh look, three new listings just came across the email - and I wanted to be an REO agent WHY???The above is purely HUMOROUS only! I love what I do and it is an exciting business. I meet great people and have wonderful experiences to share. Please though, if you are thinking of becoming an REO agent, do your due diligence and research. Understand that your asset manager and banks have guidelines they must follow and you have guidelines you must follow. It is your responsibility that you are legal and ethical in everything that you do. If you are a member of a local, state and National Association of REALTORS you have a Code of Ethics that you must follow and you need to make sure that you keep yourself AND your asset manager out of trouble. Your biggest job outside of marketing and selling that property is to make your asset manager's job easier so they can get the other 200 files on their desk completed a little faster, and they will remember you and the extra efforts you did to help get the property sold AND closed.Remember, when the closing is done, send your thank you cards to everyone and include that Asset Manager also. They may have missed their bonus because of the delayed closing and they may need a little smile to cheer them up to help remember you on the next go round of properties in your area.Under Promise, over supply and as always - Have A Better Than Great Day!!
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Posted by Ray Milliman on October 1, 2009 at 10:49am
The government's First-Time Home Buyer Tax Credit program expires November 30, 2009 -- a scant 60 days from today (10/1/2009).Considering it can take up to 60 days to close on a home, first-time buyers have 2 weeks at most to find a home.Buyers not under contract by October 15 have little chance of meeting the November 30 deadline and, therefore, little chance of claiming the tax credit.This is especially true for purchases involving short sales and foreclosures.Congress passed the First-Time Homebuyer Tax Credit program as part of the 2009 economic stimulus plan. IRS Form 5405 outlines the program criteria and includes the following stipulations:* Buyer may not have owned a "main home" in the past 36 months* The home may not be purchased from a parent, spouse, or child* Adjusted gross income for the household must be below $95,000 for single tax filers and $170,000 for joint tax filersThe credit is capped at $8,000 or 10% of the purchase price, whichever is less. And don't forget -- the First-Time Home Buyer Tax Credit is a true tax credit. It's not a deduction.This means that a tax filer who claims the full $8,000 and whose "normal" tax liability is $5,000 would receive $3,000 cash from the US Treasury when their tax return is processed by the IRS.If you can't close by November 30, 2009, though, you can't claim the credit.The clock is ticking. If you're planning to use the First-Time Home Buyer Tax Credit, the time to act is now.
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Agents, be advised that your property condition has a great impact on your business! If your properties are being managed by SPI, FAS or anyone else, you still need to keep your eyes on it weekly! If weekly is too much to ask, based on distance or any other reason, than perhaps its time to forfeit the listing to another agent!
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Buyers have realized that short sale is a great opportunity to get a real bargain. Unfortunately, the opportunity is often ruined by simple impatience. If you are looking for a dream house with a short sale sign, follow these tips to close on property successfully.1. Be patient. The importance of patience cannot be overestimated.If you wait long enough, you'll prevail and walk out with a great deal. If you withdraw, you'll not recover the time lost and possibly lose an opportunity to save a lot of money.2. Be prepared to wait somewhat from 3 to 7 months. The wait time depends on the bank you are dealing with. After you give an offer, most banks will let you know what their counteroffer is. If the house is owned by Countrywide, that might not be the case.In 90% of all short sale deals Countrywide will only tell you whether they accept your offer or not, leaving you guessing on what's next.3. Before submitting the offer, ask your realtor to do a comparable market analysis (CMA). More often than not buyers make a necessarily generous offer.4. When your CMA ready, make an offer, which is 10-15 percent less than the value cited in CMA. If you follow this advice your file has greater chances of sailing through banking bureaucracy smoothly.5. Look for a realtor that has a proven short sale record. Ask him or her to process your application to buy a house that is listed as a short sale.6. Negotiation is a key. The more experienced your realtor is, the speedier your application will be reviewed and you will be able to close on the property.
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Posted by Dawn Barrier on October 1, 2009 at 5:50am
NEVER PAY a Mortgage payment to someone who comes to your door!!I posted a blog recently on AR regarding Titanium in the news and it as well as some recent happenings prompted me to write this post...To minimize potential fraud by imposters, representatives will not be permitted to accept mortgage payments or any other money from borrowers...this is except from recent article about Freddie doing loan mods door-to-doorLas Vegas has become known for having lots of scammers showing up at the door and calling people to try and get their $ by whatever tactic they can and there are still people falling for the scams and giving people money up front before they even check the person or company out.I recently had a couple ask me if they could give me their mortgage payment to turn into the bank...NO!!!Unfortunately, I have also been meeting a lot of people who have been scammed out of thousands of dollars by loan modification companys as well.NEVER PAY a Mortgage payment to someone who comes to your door!! Spread the word!Read more…
There have been several posts regarding the Five Star Conference and how worthwhile it may or may not have been for the attendees so I thought I would throw in a few of my thoughts and tips.My experience is that, like everything in life, what you get out of a conference is in direct proportion to what you put in.For me, the conference was a huge success. I was a panel member discussing advanced valuations. This put me in direct contact with some of most dynamic people one could ever hope to meet in our business. (Did I mention that most are potential clients?)I met with a new client and received our first listings from them before I left the conference. In the current environment of closed broker lists, that alone made the trip worthwhile. For me, it usually takes no more than three listings to pay for a conference trip. I have not attended a conference that did not pay for itself in less than 90 days.I do have some suggestions to make. Go with an agenda and a plan. Make it specific. Weather it is a client or an agent or broker whose brain you want to pick, target specific people and clients you want to get “face time” with and make appointments to meet with them at a specific time and place. “Stop by the booth and see me” does not cut it. An appointment, even if it is for five minutes in the hall to say hello does. Make sure you follow up with EVERY new client contact you make after you get home. Make sure you stay in touch with those agents and brokers you met and shared ideas with.Do you have other clients in the area? I usually arrange to see at least two of my other clients that are in the area. I start setting up appointments sometimes weeks or months in advance. Not all of our clients are at every conference and most likely the AMs and Pre-Marketers we talk to on a daily basis will not be there. Show them some love, too.Sure, it seems to be just common sense to combine a conference trip with client visits but I would guess that the vast majority of attendee’s flew into town, sat through some classes and lender open house sessions, went to a sponsored party and flew out of town. Hopefully, when they left it was with some new knowledge and education, but probably it was also with the sinking feeling that it could have been better.Remember: Don’t just show up hoping you will run into an opportunity, create the opportunity. Make a plan for a rewarding conference trip and then execute your plan. Make every trip worthwhile for YOU!
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According to the Regional Multiple Listing Service, the average supply on hand has declined by approximately 7.5 months since the beginning of the year. As the supply has declined, the demand appears to be increasing with more units being sold.The number of single family homes sold year to date as of Aug 31 is almost 14.6% greater than last year, year to date.Median Sale price for a Palm Beach County home was $242,000 in August 2009 compared to $303,000 in August 2008. which represents a decline of 20.3%.The Median active DOM was 152 days , Median Sold DOM was 132 days and Median SP to LP was 60.8%
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Ok, so....I have been hearing from some friends...Skype THIS, Skype THAT and, honestly....I really didn't care but, I had to recently use Skype for a video conference call and BAM! I was astonished, it was the coolest, craziest, most incredible thing I have done in a long time.
I was amazed at how I could, over my lap top, see my friend talking to me. Now, I don't have a camera set up on my lap top....yet but, I will soon because it was just to darn cool!
Some of the great features of skype are....
1. Video Conferencing, which was bombastic!
2. Instand Messaging while in a call. So, if your in a conference call and you need to have a private side bar conversation about what everyone is going to be doing for lunch, that is totally possible.
3. View conversation histories. I can take a look at txt conversation histories, from past conversations of course.
4. Call recording...for making sure people remember what they said.
and so on....it's just amazing.
I can see a lot of application potential here on REOPro and for my own business, so...I hope each of you have the time to check it out and, if you already use Skype, look me up, I would love to add your contact information into my address book. Search Jesus (Jesse) D. Gonzalez Jr. out of Hermitage, TN. You'll see my beautiful face smiling back at ya.
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