Posted by Michael Howard on September 24, 2009 at 1:30pm
From MSN Money today. BofA and Wells Fargo have both been on the record stating that the "shadow inventory" does not exist. This is the third published report I have read that sates otherwise. As servicers continue to trickle product into the market there is a strong chance that this will prolong the housing slump for more than originally thought. The tsunami we have all heard about, while driving prices continually lower might rid the market of this distressed inventory faster and perhaps hasten a quicker recovery...Thoughts?Analysts say 7 million soon-to-be foreclosed properties have yet to hit the market.Posted by Elizabeth Strott on Thursday, September 24, 2009 8:59 AMAny optimists touting a housing recovery might want to pause and think about this: Amherst Securities Group analysts believe the market faces another major hurdle because about 7 million properties that are likely to be seized by lenders have yet to hit the market.The "huge shadow inventory" reflects mortgages already being foreclosed upon or now delinquent and likely to be and, assuming no other properties are on the market, it would take 1.35 years to sell this inventory based on the current pace of existing-home sales, analyst Laurie Goodman wrote in a note to clients.In 2005, there were 1.27 million properties in the same situation.There have been a number of recent economic reports hinting at a recovery for the housing market. In May and June, the S&P/Case-Shiller 20-city index of home prices rose, the first month-over-month increases in values since 2006. Prices for U.S. homes rose by 0.3% in July from June, the Federal Housing Finance Agency reported earlier this week."The favorable seasonals will disappear over the coming months, and the reality of a 7-million-unit housing overhang is likely to set in," the analysts said, according to Bloomberg News .Meanwhile, The Wall Street Journal reported on Wednesday that real-estate agents and analysts worry that when the shadow inventory is unleashed, it could cause a big bump in the road to recovery and add a new layer of difficulty for the housing market.Ivy Zelman, the chief executive of Zelman & Associates, a research firm based in Cleveland, believes 3 million to 4 million foreclosed homes will be put up for sale in the next few years. The question is whether the flow of these homes onto the market will resemble "a fire hose or a garden hose or a drip," she told the paper.
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Club Tsunami at the Five Star Conference was a great success thanks to everyone's hard work. The REOMasters’ executive staff was awesome and most of our membership geared up to support the event. Even if you couldn't attend, the social networking, blogging, Twittering, et al contributed greatly to the success of the event and the visibility of the REOMasters Network.But Club Tsunami was a pit-stop . . . not the destination. There is great interest in our organization. I had dozens upon dozens upon dozens of people notice the REOMasters lapel pin and ask me about the organization. Everyone that asked was quite interested and intrigued with the whole concept. We are going to grow, and rapidly.Since we are all, most likely, "Type-A's" we need goals toward which to strive. Club Tsunami was certainly a good goal, and we did it together. But the ultimate goal remains to set a new standard of conduct and performance for REO agents, a standard that will be prized by the corporate client community. We want the client community to know that it is OK to expect and demand excellence from their REO Agents, and that there is no better choice than an REOMasters member.At the conference and networking events I heard lots of opinions. Some said REOs are going to grow . . . some said they are going to diminish. Whether they do either, the truth is that there will be REOs. No matter what, the pre-marketers and asset managers will be constantly looking for “quick-scan” ways of selecting agent resources that can be trusted to understand, execute and complete “tasks” on-time . . .with no surprises (thanks, Richard.)At Five Star, I sat through a presentation by a board member of a prestigious REO brokers association. What I heard him say was that REO “is all about making money.” Yikes!There are those that deliver excellence and are rewarded for it. That IS us! And there are those that seek the reward by delivering the minimum required to gain the reward. That is NOT us!We have an incredible membership, the best agents/brokers I have ever been privileged to meet. I truly mean that!As a group we can be what we will . . . as individuals we can only be what others allow.As a group . . . lets Rock!.The "bar" has been raised.Clay
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I am writing an article on winterizing properties, which all of you probably do now, but I am including "summerizing". I have done BPO's on too many properties only to be called back 2-3 months of summer later to do an update BPO on a property that now has been destroyed with mold because no steps were taken to fight off the humidity of our summer days (I'm in Baltimore). I would be interested in personal experiences on what works, what doesn't, who takes the initiative (does the lender do it through the property preservation company or look to the listing agent to go ahead with this process) and anything else you might want to contribute. I am also going to go into a new concept, "caretaker in place", where the defaulting owner is paid to stay and take care of the property until sold and then given a nice moving bonus if they do a good job. What do you think?
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Posted by Dawn Lewis on September 19, 2009 at 6:39pm
REOMasters Making a Difference at the Five Star ExpoThe Five Star Default Servicing Conference and Expo officially kicks off September 20th, 2009 and runs through September 23rd. The event is being held at the Fort Worth Convention Center and Omni Hotel in Texas. Steve Forbes is the featured speaker at this huge event for the default servicing industry. The Five Star attendees have many opportunities to network with others in the industry and to sharpen their skills with the Five Star Academics and the Five Star Institute classes.
Many in the default servicing industry are preparing for the next wave or waves of foreclosures to hit the market. In many areas of the country like here in San Diego this will be a welcoming event. That’s right, welcoming. In many price ranges and in many areas of San Diego County California the inventory has had buyers looking at some pretty slim pickings. Many of the first time homebuyers trying to take advantage of the 8,000 first time home buyer tax credit are left in backup offer position to the cash offers. These first time home buyers also come in second place to offers with conventional loans with lots of buyer money in the deal. Some of the reasons for this are that the asset managers and banks like to accept the cash offers and large downs because they have less of a chance of falling out of escrow due to loans falling apart and appraisals not coming in at loan value. A symptom of the market.Foreclosure moratoriums are being lifted in some areas of the country. California for instance has the California Mortgage Foreclosure Prevention Act that was signed by the Governor on February 20, 2009. The California Foreclosure Prevention Act modifies the foreclosure process to provide additional time for borrowers to work out loan modifications while providing an exemption for mortgage loan servicers that have implemented a comprehensive loan modification program. Civil Code Section 2923.52 requires an additional 90 day period beyond the period already provided before a Notice of Sale can be given in order to allow all parties to pursue a loan modification to prevent foreclosure of loans meeting certain criteria identified in that section. A mortgage loan servicer who has implemented a comprehensive loan modification program may file an application for exemption from the provisions of Civil Code Section 2923.52. Approval of this application provides the mortgage loan servicer an exemption from the additional 90-day period before filing the Notice of Sale when foreclosing on real property as designated by this Section.This next wave of foreclosures as it’s called by many in the default servicing industry has been described by some in the know as a Tidal Wave or Tsunami. Many are wondering what effect it will have on the fragile real estate markets throughout the United States. I welcome the wave and the faster we get through this stagnant inventory the better off the whole real estate and economic environment will be. This elephant in the room, the massive foreclosures that are not being put on the market has to be dealt with. Let’s push through and push on and get through this and on to the next real estate market. I’ll take and sell as many assets as I can to help with the situation. So any asset managers or banks that need an REO Listing Agent in San Diego County California call me – Dawn Lewis 619-981-3917. I joined REOMasters Network to not only be associated with some of the best REO Agents and Brokers in the industry but to network with them to offer the best of solutions for asset managers and banks.REOMasters is sponsoring the biggest Charity Event at the 2009 Five Star in Fort Worth. I was very surprised to see that it wasn’t on the Five Star Conference Schedule. The event is called Club Tsunami – The World’s Largest REO Networking Party and Charity Event. All of the profits from the proceeds of the Tsunami Party go to Foreclosure Angel Foundation. Make sure you read about the Foreclosure Angel Foundation and the difference they are making in the lives of families losing their homes. Your ticket purchase will have a direct impact on helping families stay in their homes. This event is sponsored by REO Masters and is a must make event. It will be a NIGHT TO REMEMBER. Make sure you put this event in your BlackBerry and DON’T MISS IT.
When: Monday, September 21st, 2009Where: City Streets Night Club (22,000 sq/ft) 3 blocks from the Five Star Convention)Who: This event is open to agents, brokers, lenders, asset managers and other attendees of the Five Star conference.Time: 8:00 PM to 2:00 AM (All night Long!)To GET TO THE PARTY take the Club Tsunami busses from the Fort Worth Convention Center, Main Street entrance. Busses will travel back and forth from 8:00 PM to 1:00 AMAdmission: $75.00 Advance Registration ($100.00 at the door)Must bring ticket to event. No ticket. No entry.REOMasters™ Network – Get Your Tickets by Calling(866) 446-2977 x 202Register here!Read more…
Posted by Kyle Whissel on September 18, 2009 at 6:38pm
I am an agent with CitiMortgage and received an invite to attend this session.I am not sure what to expect.Has anyone ever been to one of their sessions at a past conference?
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Posted by Kyle Whissel on September 18, 2009 at 6:00pm
To make a long story short, I screwed up and accidentally canceled my room for the conference this weekend and there are no rooms available anywhere near the convention center.I wanted to see if anyone that already has a room booked with an extra bed near the convention center wants a roommate for Sun-Tue night. I will obviously split the cost 50/50 with you.Don't worry, I won't show up in this van:Read more…
I know by now that almost everyone has heard about the Tsunami Networking Party and Charity Event, but it's almost here and it truly is for a good cause so bear with us while we continue to bombard you with blog posts and announcements about it. If we get one more person to contribute, it will be worthwhile. So thank you and please spread the word.OK, now...WHAT ELSE IS GOING ON DURING FIVESTAR?Let's collaborate and share all the events that we know are going on so we can utilize our networking time the most efficiently.Here's what I know...Club Rouge Saturday night 9/19, 8pm - 2am, @ Ft Worth Fine Arts CenterI believe DS News/RedBook is having their party Sunday night at the OmniREOTrans is haveing something on Monday Sep 21, from 5:30 to 7:30 @ the Sheraton (for Platinum agents)There's a Poker tournament going on somewhere early Monday nightOf course Tsunami Monday night 8pm - 2am, @ City StreetsGMAC Associastes Seminar (for GMAC agents) Tuesday, 9/22ServiceLink is possibly going to be meeting iwth people...no other details on that...Anyone want to add to the list?
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Posted by Henry B. Torn on September 16, 2009 at 4:36pm
Rumor or FactI have posted on past blog begging AM's to release more of their inventory to meet buyer demand. I have been hearing 'rumors' lately that there is an anticipated 'dumping' of properties on the market coming up in OCT/NOV/DECdue to the Bank's need to show profits for the calender year.Any truth to this? What are you hearing? I certainly invite any feedback from you AM's who might be in the know!
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Posted by Vytautas on September 16, 2009 at 4:19am
Short sale process takes months if underwritten by Countrywide.A short sale might be the best solution for home owners trying to avoid foreclosure. It also can be a great opportunity for bargain hunters. Unfortunately, some banks handle short sales so poorly that distressed home owners are forced into foreclosure and potential buyers abandon their dream completely.This is a real lose-lose situation that cost a lot of money for the banks. It doesn’t seem the highest management of the banks pays attention to it. And then who can blame people when they express their disappointment about the big bail-out money received by the banks?One day during a discussion at the meeting we decided it’s time to make a list of the worst lenders. So here it goes, the worst five banks to deal with when it comes to a short sale.5. Litton Loan Servicing;4. Tb&W;3. Washington Mutual;2. National City;1. Countrywide.Countrywide, the “winner” of our list, did not change much after it was acquired by Bank of America. Bank of America still handles short sale transactions way better then Countrywide. In fact, our experience with Countrywide is so horrific that now every time we see somebody whose loan was underwritten by Countrywide we think twice before accepting this listing.In many instances short sale cases, handled by Countrywide, are held for 3 moths or more. By this time potential buyers are approved for the loan, but they change their mind and go elsewhere, as they don’t see any closure in this situation.Every time you call their representatives, they have the same answer: “The file is under review.” This is rarely true, because in too many cases we’ve seen our emails sit unopened for weeks.In the most outrageous case we received notification that our email was opened after 100 days. All that time they kept telling there is a negotiator assigned and the package is “under review”. It is a complete mystery how one could review a package without opening it…The longer short sale is postponed, the more value of the property declines. It would be reasonable to think banks are the ones to care most about recouping as much value as they can. They are the ones that lose money anyway. Countrywide just don’t seem to care at all.On the top of it, if one buyer drops out and we find a new one, the whole short sale process must be started over. Essentially it is the same process, why on earth would you treat it as something completely new? Just to make a file sit for another 90 days or so?Unscrupulous home owners who know how to beat the system use that kind of delays to their advantage. They do not pay their mortgage, stay in the house for up to two years and then just let the property go into foreclosure.The way Countrywide handles short sale encourages that kind of behavior. Instead of helping to clear out the crowded market, the banks like Countrywide makes sure we all stay in a recession longer.What a shame, Countrywide!P.S. Have your own story about dealing with Countrywide? Got horror stories about your experiences with other lenders? Send it to me vitos@realtyusagroup.com
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Posted by Vivian Conley on September 16, 2009 at 4:00am
Excitement builds as Five Star draws closer. So many great opportunities for the REO industry. One of the many highlights I look forward to is Club Tsunami, such a great cause; I’m sure to see many of you there.Let’s Do Lunch too! Monday, September 21, I’ll be at the conference lunch area. Let’s meet for lunch for in-person networking. I would love to meet everyone from REOpro. I’ll wear my red suite jacket that I’m wearing in my photo to make it easy to find me.See you Monday.
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Posted by Shawn Bradford on September 14, 2009 at 11:10am
The Hottest Place to be at the 5 Star Conference.....Club TsunamiIf you're going to the 5 Star Conference in Texas you don't want to miss the place to be.....Club Tsunami. The 5 Star, http://www.fivestarconference.com is the largest conference in the default servicing industry and a place for REO agents to network, increase their knowledge of the industry through educational sessions and build new client relationships.So, what is Club Tsunami? http://www.clubtsunami.net/ Club Tsunami is the world's largest networking party and charity event. Club Tsunami is Monday, September 21, 2009 at City Streets Night Club.Everyone is talking about Club Tsunami and all it has to offer: 3 D.J.'s, Casino, 2 Night Club Dance Floors, VIP room, Cigar and Scotch Lounge, and a Top Shelf Bar.Don't miss this chance to make new contacts, have fun, build relationships with clients, and best of all benefit a great charity: Foreclosure Angel Foundation. https://www.foreclosureangelfoundation.com/Make sure you're at the hottest event at the 5 Star. See you there!http://www.shawnbradfordteam.comRead more…
Nuggets from the "Appraisal Jungle" with R.E. Attorney, Nancy CampigliaI just recently attended a continuing ed class and one of the most valuable topics of discussion was about appraisals and inspections and our liabilities as Realtors. I have included some of the helpful hints that Nancy provided:A. Realtors should not talk with OR provide any data to an Appraiser until after the appraisal is done, and only if there are concerns about the appraisal value.B. If a Realtor attempts to "sway" an Appraiser's value for the property on a government-backed loan, the Realtor can be liable for ***criminal and civil penalties! ***C. If you want a local appraiser, she recommends including a term within the Contract that reads, "Per USPAP, Appraiser should be competent in and have knowledge of the location in which he is appraising."D. She recommends including a term in Contract that reads, "Buyer does not have to purchase property if it does not appraise at or above the sales price. If this occurs, Buyer is entitled to an immediate refund of escrow deposit."E. Always use an actual date for the "Closing Date" on the Contract. Without a date, there is NO legal Contract. The only exception for this is if an Addendum or Counter Offer form specify an actual date.F. In the Sales Contract, instead of using, "As per MLS" on line #11, she recommends you use, "See Exhibit ‘A'," and include a printed copy of MLS with, "Exhibit A" written at the top of it.G. Agents should never be present for an Inspection, except to open the home and lock it up afterwards. If the Agent becomes knowledgeable of material facts about the property, the Agent is required to convey them to the Buyer.We as Realtors some times forget that real estate is a serious business and should not be taken lightly. I hope that you all appreciate some of the tips that Nancy offered so that we can continue to help our clients and stay out of trouble at the same time. I know that I do.
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Take a look at this press release. PRESS RELEASEBe a Piece of the Solution. Over ONE MILLION AMERICANS have lost their homes through foreclosure. We know what the problem is, the REO Masters Network is asking REO Agents to Be a Piece of the Solution.The members of the REO Masters Network are hosting what will be the Largest Networking Party and Charity Event in the REO Industry and the proceeds are going to the Foreclosure Angel Foundation. The Foreclosure Angel Foundation is a non-profit agency that is helping people who have genuine hardships stay in their homes, get their homes back or get them back into a home. How can we as REO agents help? Support the cause.I realize that not all the REO agents in the country are going to FiveStar (although it may seem that way), but those of you that are...buy a ticket, come to the event and have some fun. You are contributing just by buying the ticket.Those of you that aren't going to the FiveStar conference can still buy a ticket as a donation to the cause. If you aren't willng to do that, then contact the Foreclosure Angel Foundation and tell them you are willing to do some "leg-work" in your area if they need it. Who knows, there is likely to be someone in your area that Marilyn from the Foundation is trying to help. She can't do it all by herself.Here's a good example, Harry Mallinger, who's wife recently died from a brain tumor and has two mentally challenged adult sons lost his home. Now Marilyn is trying to find a home for him in Florida. This is just one of the MANY stories.None of us can fix the problem on our own, but together we can make a difference so please, Be a Piece of the Solution.
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Posted by Linda Landry on September 13, 2009 at 7:28am
I am astounded at the destruction and mutilation discovered in properties abandoned after foreclosure! Where did the current mentality of homeowners/renters come from in thinking it is their prerogative/privilege to destroy/steal or damage property they vacate? Everyone is aware that renters are 'leasing' property from the owner and that owners require security/cleaning deposits. However, I have spoken to landlords who've had their property damaged or destroyed beyond the limit of the deposit to include arson! Additionally, homeowners who become thieves of destruction to the property they have lost to foreclosure abound. They apparently do not realize they are actually tenants of the bank who holds their loan. They do not yet own this property until the loan is paid in full. Their down payment was just that: a payment they put down towards the repayment of the ENTIRE loan in the amount to which they agreed to pay to purchase the property. Lest we forget, this agreement was in the form of a legally binding contract. Perhaps more defaultees should be prosecuted for default or destruction. If people keep defrauding and defacing it may result in the banks requiring we pay for a loan for thirty years PRIOR to taking possession! Wouldn't that be a kick in the you know what!Linda Landry, REALTOR ® Exit Realty 1st Choice Tucson, Arizona
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I just love negativity! When is the last time your heard anyone say that? We all have them in our office - heck, I can even claim I used to be one...I call them Negative Neds or Negative Nancys...come on, you know you've been one!Don't you just love the agents that completely talk their buyers out of making an offer --- it's true, even in this market where we should be bending over backwards to make the deal happen, I'm hearing comments like "Most likely the market will keep declining - I keep hearing there will be a lot more foreclosures and prices will just have to go down." "They will have to extend the $8000 tax credit, they'd be stupid not to." "You don't want to look at that home, that's a short sale, it will take forever to close." I could continue, but I don't think I need to.All I have to say is that I look these agents in the eye when they want my opinion on the market and tell them this--- "The market is what YOU make it. Buyers and sellers come to you because you are the professional. Be honest with them, but don't scare them to death. There are much better ways to approach our current market than being Chicken Little and talking buyers out of great opportunities. Don't spread false hope (in some people's eyes) that things are going to get worse before it gets better -- if you continue to do that you just may talk yourself out of a paycheck and a career."So I guess my message to all the Neds and Nancys out there is to just STOP. Turn all that negativity into something positive -- it just may change your whole outlook on your career...afterall, if it's as bad as you say it is, maybe you need to move on.
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Posted by George Bellino on September 11, 2009 at 4:52pm
We received an email today from one of our clients and finally the banks are cracking down. Recent Chase field inspections revealed that 48% of the properties they inspected did not have active utilities and a great number didn't even have signs up.Now AM's will be checking on their properties and if they find any violations such as no utilities or signs (without prior permission) that agent will lose that listing and all of their other listings will immediately be reviewed for possible reassignment.I knew agents weren't doing all that they were supposed to be, but I didn't think that number was so high. I'm glad this is finally happening and it should open more doors for agents that do everything that they're supposed to be doing. It should finally start to weed out the agents that were just coasting with all their listings because they knew the right person or were just plain lazy & cheap. It should also help more established brokers get more listings because newer agents might not be financially able to handle all the costs of maintaining these REO's.I think there's going to be a pretty sizable consolidation of the numer of REO agents currently receiving listings. Green River Capital has already started as i'm sure others have. So all of you agents out there you better go put your signs up and get those utilities on or i'll be getting your listings!!!
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There is a group of REO professionals who do care! And they are pulling together to benefit the Foreclosure Angel Foundation. This foundation came to life from an unselfish act to help a neighbor and we want to be the foundation's next neighbor.There will be a series of coaching sessions that will culminate in the largest REO network party: Club Tsunami. The sale from the tickets will go 100% to the Foreclosure Angel Foundation. And it gets even better. The coaching sessions are free and if you missed any, you can download them. Come join the party!Be a pice of the solution!Read more…
In today's active Real Estate environment with so much information delivered and shared we somehow get through the day only skimming over the relevant facts. To prevent inaccuacies and manage Real Estate Risk Slow Down and Read. Start with your Agreements, Contracts, Assignments, Disclosures and Real Estate Transaction Documents and don't stop there because it is our responsiblity Real Estate Professionals to stay current and provide accurate information as it pertains to the sale of real property with minimum risk to our clients and employers.
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I am going to share with you the secret to your REO success. No matter if you are wanting to be a REO Realtor or a REO Property Clean Out Crew....the secret is the same for each of us.
Before I tell you the secret however, I need to share a little story with you, indulge me...if you don't mind.
At age 15, my family moved from our home in Dallas Texas to a small town, Hendersonville, TN. To give you some idea of just how big the change was, the high school I left in Dallas, graduated approximately 8,000 students each year, where as my high school in Hendersonville had about 4,500 students total! Now, I am sure for some of you, a high school with 4,500 students is huge but, for me, it was small.....too small but, it was what I had and, not much I was going to be able to do about that, or so I thought.
Not many of the students in Hendersonville were ready for someone like me. I was a bit of a duck out of water. I was a white inner city Latino with flare so, those country, out on the lake, tanned, well off farm boys and girls really didn't know how to handle me. Now that I think of it....I really could of had some fun but, whatever.
So, in order to make the transition a bit smoother, I got involved...I tried to get to know these kids and figure out what they were all about. We joined the local church, I got involved in some after school activities, like Drama, Taekwondo, Table Tennis and, of course, spending time chilling on the lake. Well, before I knew it, I was in, they liked me....it was my magnetic personality, I am sure. In fact, I realized, I liked this life much more than I did in the inner city.
I tell this story because, I need you to understand the secret to your REO success is in the hands of those already successful in REO. You need to get involved however, because we all live spread across this great country, we can't just up and go to Taekwondo training on Wednesday night up at the church activities center or we can't spend the weekend on the lake together however, we can get to know each other through our blogs.
I have made some valuable friendships here on REOPro and the whole time, I have never met some of these people however, we have helped each other succeed because we seem to know each other through our commitment to blogging.
Think of your blog as a personal diary. What would happen if someone picked up your diary, picked the lock and read it's contents, would they know more about you than they ever did? Of course, they would know a great deal about you and that concept is exactly how you should be using these blogs. People will get to know you, they will see you as an expert, they will develop trust and before you know it, you will be getting that call that changes your life forever.
good luck and get bloggin people!
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