TALLAHASSEE, Fla. /Florida Newswire/ -– Governor Charlie Crist today met with Florida REALTORS® to discuss Florida’s housing market. Governor Crist encouraged first-time home buyers to take advantage of the tax credit made available through the federal American Recovery and Reinvestment Act of 2009. The $8,000 tax credit applies to primary residences as long as they are purchased before December 1, 2009.“Even though today is Tax Day, first-time Florida home buyers can still claim the tax savings on their 2008 tax return – even if the closing is after today – by requesting an extension or filing an amended return,” Governor Crist said. “Or they can also claim it on 2009 tax return, which will be filed next year. Either way, I encourage Floridians and newcomers to Florida to take advantage of this tax break and bargain prices on Florida real estate.”Governor Crist also discussed his continued commitment to reduce the tax burden on Florida homeowners and business property owners. He has proposes a set of property-tax reforms that builds upon previous legislation resulting in the largest property tax cut in state history.The National Association of REALTORS estimates that the impact of the federal economic stimulus package and lower interest rates will result in approximately 900,000 additional home sales in 2009 compared to conditions before the stimulus package. According to Freddie Mac, interest rates for a 30-year fixed-rate mortgage averaged 4.87 percent for the week of April 9, 2009, down significantly from the average rate of 5.97 percent in March 2008.According to the Florida Association of REALTORS, Florida’s existing home sales rose in February, making it the sixth consecutive month with an increase in sales activity. Existing home sales rose 20 percent in February 2009 compared to the number of homes sold in February 2008. Statewide, existing condo sales increased 25 percent over the total units sold in January.About the First-Time Florida Home Buyer Tax CreditFor homes purchased before December 1, 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer’s main residence within a three-year period following the purchase. First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, which are due today, or on a 2009 tax return, due April 15, 2010. If the purchase occurs after April 15, 2009, home buyers can still receive the credit on a 2008 tax return by requesting an extension of time to file or by filing an amended return.Information about the tax credit for first-time home buyers can be found at www.FlaRecovery.com in the “Tax Relief” section. For more information about Florida’s use of the federal recovery dollars made available through the federal American Recovery and Reinvestment Act of 2009, please visit www.FlaRecovery.comJason Donn - Real Estate Open NetworkersRead more…
Well, this morning I woke up, the sun was shining, the birds were chirping, school bells were ringing and I had a flash of genius. That’s right, a simple, non threatening, low key, under whelming FLASH of genius. Surprised? Well, so was I.
I want to be Judge Judy and Gordon Ramsey’s love child. Ok, so….maybe you’re laughing out loud at this moment but, hear me out, I am going somewhere with this.
I want Judge Judy’s tenacity, unwavering truth seeking and inability to be duped. I want Gordon Ramsey’s commitment to excellence to both himself and those around him as well as, his eye for talent and his ability to speak what is truly on his mind and people get it.
I also want some traits that they both share, which are, a flare for the dramatic (which I may have been born with but, never really tapped into), an ability to command an audience and, creating success from the ground up.
Truth is, I think Judge Judy and Gordon Ramsey’s love child would make a really strong REO Agent. All of the characteristics I listed above are what you need to be in this business and, if I could develop them to the level of Judge Judy and Gordon Ramsey….well, I would be unstoppable.
Of course, those skills I listed aren’t the only ones you will need but, it’s a great place to start. So for all of you looking to get your first REO then, think about what I have written today and ask yourself, is what you are doing now succeeding? Have you gotten your first REO?
The one attribute I admire the most, of the many very highly successful people have, is adaptation. Learning to change and adapt is how you stay alive, grow and eventually reach your pinnacle. It’s a cosmic fact that the only constant in this universe is that constant isn’t possible.
Whoa….that was deep....maybe too deep for my REO blog…lol
My point is, if what you’re doing isn’t working, why are you still doing it? Are you mad? I am a true believer in engineering your success and, yes…before Edison finally engineered the proper filament to use for the light bulb, it is said he had thousands of trials and error….thousands but, what made a difference for him is that he learned something new about each and every failure that, in my opinion is what separates perseverance and madness.
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I am proud to announce that REOPro’s Google page rank is now up to 2. If you don’t know why that is important, let me explain.
A Google page rank is a number that represent just how important your page is on the web. The more important you are, the more likely you will appear at the top of searches using keywords that describe your page.
In other words, if someone does a Google search for “REOPro”, the more likely our page will appear at the top of the results that come up with a higher page rank. In fact, right now, we are number 8 out of 84,200 results with a current page rank of 2…that’s great!
Now this is true with all our keywords, granted, none of them are as high as REOPro but, the higher our page rank, the more likely all those other keywords will start bubbling to the top.
Keep in mind, those of you who blog regularly……the more appearances on the main page, the more likely keywords in your blogs will be ranked as well. For example, if you search “Jesse Gonzalez” you will get 2,800,000.00 results of which, I am in the 6th, 7th, 8th, and 10th slots, putting me in 4 of the top 10. If we change the keyword just a bit and type “Jesse Gonzalez REO” then I appear in the top 9 spots out of 163,000 results, not bad. The best part is, almost all of those 9 spots are my blogs. Do you get the idea?
So, what can you do to help you improve your page rank as well as help out REOPro’s page rank?
Linking is one of the most important things you can do to raise your page rank. Google calculates that if your page is important enough to have someone link to it, then that means something. So, if you haven’t put our REOPro badge on your main page of your website, you need to do so. Links and back links to industry related sites are the key to obtaining a high Page Rank.
Thanks again all and good luck. I look forward to seeing those link request coming in.
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First major national housing survey during current downturn reveals surprising resultsNEWPORT BEACH, Calif.--(BUSINESS WIRE)--The first major survey into Generation Y’s perception of the U.S. housing crisis reveals a surprisingly strong sense of optimism about the future despite cautious near-term sentiment.While the housing industry is readying for this wave of future homeowners (approximately 80 million strong), there is little data on what this influential buying group actually wants in their next home or how the current downturn has affected their future plans.According to the national survey conducted by The Concord Group:50% say they are likely to purchase a home within the next three years50% say tax credits or lower interest rates would motivate them to purchase a residence sooner70% believe home prices will be higher or at today’s levels in two years62% say wealth creation is a very big advantage of real estate ownershipAlthough economic conditions factor strongly in their decision-making process, survey respondents say that lower home prices and/or a raise at work would be the top motivations for buying a home sooner than planned."Generation Y is going to have more impact on the national housing market than any group since the early Baby Boomers. We wanted to better understand their preferences and expectations especially as they will have such an impact on our future,” said Emma Tyaransen, Principal of The Concord Group, a national real estate advisory firm.The majority of respondents to The Concord Group’s survey say they are:Willing to pay a premium to live closer to their jobSeeking out a larger space for their next residenceInterested in living near alternative modes of transportationLikely to put down less than 20% on their next residential purchasePlanning to eventually abandon the cities for a life in the suburbs“What’s so interesting about this data is that it supports our prediction that transit-oriented development will command a premium in the near future. It also proves that suburban development will continue to play an important role in the housing market that emerges from the downturn,” said Tyaransen.The Concord Group is a premiere national real estate advisory firm with offices in Newport Beach, CA; San Francisco, CA; Portland, OR and Boston, MA. The Concord Group provides developers, investors and public planning agencies with vital analytical input throughout all phases of real estate financing, development and operations. www.theconcordgroup.comJason DonnAllStar Realty954-892-6244
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BY KATHLEEN DOLER FOR INVESTOR'S BUSINESS DAILY Posted 3/24/2009 Even as a few rays of hope peek out for housing, a dark cloud of unlisted and unsold foreclosed homes threatens to further delay a recovery and undermine lenders' financials. The government is riding in with new programs almost every week, including Monday, that may rescue lenders. But they also cause paralysis in the short term. Lenders are holding "between 600,000 and 700,000 residential properties that are not on the multiple listing service (MLS) ," said Rick Sharga, senior vice president at RealtyTrac, a foreclosure listing firm in Irvine, Calif. This shadow supply isn't counted as part of the housing inventory. There were 3.8 million existing homes on the market in February, equal to 9.7 months' worth at the current sales pace. Add in the shadow supply and selling all the available homes will take even longer, and that suggests prices have even further to fall. There has been some good news on the home front. February existing-home sales rose 5.1%, the best monthly gain in years. Housing starts shot up 22.2% from a record low. Low mortgage rates and falling prices have made homes more affordable — though that doesn't help if you can't get a loan or you've lost your job. Meanwhile, foreclosure activity has been artificially suppressed. Mortgage delinquency rates have continued to soar in the last several months even as the new foreclosure rate has held steady. That's due to government moratoriums or voluntary lender halts. But most experts say eventually most of those homes will be foreclosed. Lenders also may be understating the impact foreclosures will have on their balance sheets. And the shadow is likely to grow as more homeowners default. Window Dressing? Specialists who handle loan modifications for borrowers say that despite a flurry of new programs, few mortgages are being reworked. "Lenders aren't doing anything," said Jim Richman, president and founder of Richman & Associates, a real estate and debt restructuring firm in Glendale, Calif. "They're waiting to see if the government will bail them out." "Everybody is stalled 100%; the lenders aren't doing anything" with modifications, said Moe Bedard, president of Loan Safe Solutions, a Corona, Calif.-based firm that does mortgage auditing for attorneys. Richman is a former banker and former Housing and Urban Development commissioner. He also believes lenders "are illegally operating under current federal rules," by not writing down their foreclosures adequately. "Lenders are doing everything they can to stay in business, but it's against all the rules," said Richman. "(Regulators) are afraid to enforce the rules because if they do the banks will fail, and the feds will have to bail them out." Sharga says he's spoken "directly with foreclosure attorneys in several states (including Texas, Michigan and California) to find out if any of their firms were reappraising properties" during the foreclosure process for their clients. "None did formal appraisals," he said. Sharga says lenders have taken huge write-downs. But if they have not reappraised their foreclosures, are the write-downs adequate? "What the banks can buy with time (holding foreclosures and not listing them for sale) is the tooth fairy," said Thomas Barrack Jr., founder, chairman and CEO of Colony Capital, a Los Angeles-based private equity firm specializing in real estate. "The government has shown that if you wait long enough, it will come out with a new program to modify the obligations of the bank and borrower. Pixie dust comes every week." The Treasury on Monday laid out its plan to partner with private funds to buy up to $1 trillion in so-called "toxic assets." It's as-yet unclear if these purchases will include actual foreclosed properties — these programs tend to morph as they get rolled out. "Why take a loss today if there's any chance that loss could be less (due to changes in government programs)?" said Terry McEvoy, a banking analyst with Oppenheimer & Co. in New York. Some shadow inventory may not be listed publicly because some lenders sell foreclosures via in-house divisions, says Bedard. Or, lenders may be selling the defaulted paper to investors. But these gray market sales can't account for all unlisted foreclosed properties. And the stalling is getting worse. "What we're seeing is slowdowns in the processing of properties throughout the foreclosure cycle . . . it's taking longer to file (default) notices, taking longer to actually foreclose and taking longer to get the properties on the market," said Sharga. "The lenders ease their way into the losses," said Jeff Davis, senior vice president and director of research at Howe Barnes Hoefer & Arnett Inc., Chicago. "If the economy would pick up, a lot of the issues wouldn't be as problematic. But that's not happening and these issues are just compounding." If banks dump their properties at once, it could cause dramatic price erosion in already hard-hit areas. Home prices, which have fallen 30% or more in some areas, still have more to go, many experts say. In some areas they need to drop "another 30% to get down to 1998 normalized levels," Barrack says. Lenders have argued before Capitol Hill to relax or suspend mark-to-market rules for valuing mortgage-backed securities. Lawmakers, in turn, have leaned heavily on the private-sector Financial Accounting Standards Board to make changes. FASB has signaled it'll modify the rule in cases where markets are illiquid. It met Tuesday to discuss the issue. Barrack, who opposes changing the mark-to-market rules, said: "When real estate and securities were booming, the lenders were booking unbelievable earnings. Now the market is going the other way. "They can't have it both ways," Barrack said. Other analysts disagree. "When you mark to the market and there is no market, you're recognizing an economic loss and a loss of liquidity," instead of an actual loss, said Davis. But he said if the underlying assets —the homes — "are collapsing in value, then there's a problem."
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http://money.cnn.com/2009/03/26/real_estate/California_comeback/index.htm?postversion=2009040311I find it incredible that the media continues to have NO IDEA what is actually happening in the real estate market. The same media that help deepen the chasm of the market fall with headlines telling everyone the sky was falling at first sign of a market slow down two years ago. Now they want to overlook that vast majority of economists who predict we are going to be mired in this until mid 2011. California? California has just begun to feel the pain that’s coming. We will now see areas previously un-effected have their own foreclosure challenges. Check the amount of NOD's or the number of short sales in the MLS in affluent South Orange County for instance. I am glad the major newspapers and publications are no longer banging the drum for the death march but now as then, a little more truth in message seems to be in order.
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NCTimes.com Californian.comLast modified Friday, April 3, 2009 8:42 PM PDTHOUSING: Now federal loans are sinking, tooBy ZACH FOX - North County TimesOnce considered among the safest loans available, government-insured mortgages issued last year have performed worse than the subprime loans that kicked off the collapse of the nation's housing market, according to data from a research firm.So far, government bailouts have put up to $2.9 trillion of taxpayer money at risk, according to the government official in charge of overseeing all bailouts.A huge level of defaults on loans insured by the Federal Housing Administration, which analysts called "stunning," raise the specter of further market turmoil and more taxpayer funds sent toward fixing the mortgage crisis."Frankly, I wouldn't be surprised if you called me up in a year from now and asked, 'What do you think about the FHA bailout?' " said Norm Miller, a professor at University of San Diego's Burnham-Moores Center for Real Estate.First American CoreLogic, a prominent mortgage data firm, reported this week that 20.7 percent of all FHA loans issued in 2008 were at least 60 days late by 10 months after the origination date. By the same metric, 14.1 percent of subprime loans issued in 2007 were 60 days delinquent.The main problem with the delinquent FHA loans was low down-payment requirements, said Sam Khater, senior economist for First American CoreLogic.While most mortgages issued by private banks now require at least 10 percent down payments, FHA loans allow borrowers to buy a home who put up just 3.5 percent of the cost.In San Diego County, prices fell more than 2 percent each month from August through January, according to Standard & Poor's Case-Shiller Home Price Index. In Riverside County, prices have tumbled even more.That means within two months of purchasing an FHA-insured home, the borrower probably owed more than the value of the home. And as layoffs mount, a loss of employment typically leaves the borrower in foreclosure or short sale ---- where the borrower resells and the lender settles for less than the amount of the loan."When you put out a (low down payment) product in the context of very high depreciation, it's going to happen," Khater said about the high delinquency numbers.By definition, FHA loans carry little equity. But the risk of failure was increased by the implementation of "down payment assistance" programs implemented by home builders, said Ramsey Su, a San Diego housing analyst.Those programs often covered the rest of the down payment and sometimes even covered the closing costs, meaning a homebuyer could borrow more than the value of the home and pay no money whatsoever up front.The government has since discontinued the programs.But before they did, FHA became the resource for riskier buyers, Su said."FHA became the subprime lender after the subprime market died," he said.As mortgage financing dried up over the past year, the Federal Housing Administration has experienced a renaissance, going from rare to prevalent among new loans. FHA caters to low-income borrowers who have little money to put down, but the loans typically carried stringent qualification requirements such as low debt-to-income ratios.The FHA insures more than 4.8 million loans, according to the department.Locally, Bank of America has seen FHA loans go from virtually nonexistent to 35 percent to 40 percent of the overall business, said Jim Loney, a sales manager at the lender's Carlsbad office.FHA loans were especially rare in San Diego County because the products used to be capped at $362,790. But in 2007, Congress agreed to raise the limit in high-cost areas, upping the maximum loan in San Diego County to $697,500."I didn't do an FHA loan for nine years," said Dave Hopkins, a mortgage broker in Encinitas. Now, he estimates the products constitute 10 percent of his business.
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Well, I've bloged about this several months ago. Pre-Approved Short Sales!! I closed my first one 2wks ago and from list to close total time was 40 days. Yes 40 days, I recieved a list price 96 hours after submitting my BPO, which was priced 10K below my BPO value. I got multiple offers within he first7 days on the market and the property sold for 5K more than list price (Closer to my BPO value). My local board rules require us market any short sale as such, which in the past and sometimes hinders offers beacuse all of us know that there is nothing short about a traditional shortsale.This did not increase the time on the Market, as we advertised it as a HomeTeleos Pre-Approved Short Sale. This program has officially launched and you may see it in a City or County near you. Its true when you see HomeTeloes Pre-Approved short sale, then really are short sales. www.hometeleos.com I'd love the hear from anyone else if they are doing anything similar or have heard of any similar programs launching. I think it will be a matter of time before others follow if they have not already done so.
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I am a Realtor in North Idaho. Coeur d' Alene, ID to be exact. I have been in the business for 8 years. Two years ago I saw that the market was shifting downward. Our foreclosure rates were on the rise and I saw an opportunity in a field that I had always wanted to pursue. I had done three bank owned deals in my career. They were all with local mom and pop banks. How did I break into the REO's?Well for one, I refused to accept the mantra that it is a closed field. I followed FC notices in our paper and followed homes that interested me all the way through the sale. When no one bid at the auction, I googled XYZ bank REO department. I called and stayed on hold forever. I was always polite. When I got through to the right person, I would say "Hi I am an agent that works in the area that your bank just took a home back in. How would I go about getting on the list to be an approved Realtor to help sell this asset for you? Most times they would say "we are not interested". This actually rarely worked but I kept at it. One day I was walking in my neighborhood and I noticed a vacant house with dead grass (the REO calling card!) The neighbor was super helpful and told me she heard a bank out of TX owned it now. I googled this bank and got the right number to call them. I gave the lady my spill and she said "I was just about to assign that one; it is right in front of me. What is your fax number and I'll send you over the agreement!" I don’t know if cloud 9 would be high enough for how high I was floating!I may have been on cloud 9 but I was clueless too! I knew how to sell homes but the REO side was new to me. I never let my seller know how clueless I was. Anytime something came up that I was unsure about I got online and googled till I figured it out. I registered on the various sites to upload the offers and forms, again learning as I went. I paid invoices with no idea of how I was going to get paid back. I was able to get this little home sold for a good price and the asset manager was happy. Not a week later the same bank sent me two more REO listings!From there, I could see that I was on to a good thing and that this is something I needed to pursue all out. I began buying courses, googling, reading blogs, and just getting information anyway I could. One of my courses gave me a list of banks to register with. I built a resume and gathered the necessary forms. I spent one week registering with every single bank on the list. I paid for memberships to several REO platforms so asset managers could find me. I continued following foreclosures in the paper all the way through the sell. I continued calling those banks. My business grew and grew.To this day I continue doing all of the above. I never sit still or take my inventory for granted. I would say that I am one of the smaller fish in this huge pond of REO brokers. I currently have 12 REO's in some stage of the process. Just yesterday I closed two and one more is signing today. I have been able to build a list of investors that want these properties so I find myself doing both sides of about 25% of my properties. I consult with them throughout the remodel and then help them sell them if they are flip deals.I learned early on that you have to build systems to maintain the influx of properties. My scanner and Blackberry are my new best friends! People drive me crazy when they say "ohh, you are so lucky to have all these deals in a dead market." My broker once told me the harder you work the luckier you are. Now that I can believe. If you want to get started in REO's work at it, envision it, be determined, and stick to a plan. I believe this REO boom will be around for awhile. Grasp the opportunity and go for it!P.S. I am envisioning myself working with Bank of America and Wells Fargo! I'm not sure how that is going to come about but I know it will! Any tips?The Holy Grail in my business would be to get in with Bank of America or Wells Fargo. If anyone has any tips there, that would be great.
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CMBS Outlook Finds Conditions Are Bad and Getting Worse for Office, Retail and Hotel SectorsDeteriorating CMBS Loan Performance Indicates Worst May Not Be OverArticleBy Mark HeschmeyerApril 8, 2009Judging from the latest analysis coming out on the commercial mortgage-backed securities (CMBS) market, the worst may be yet to come for commercial real estate.Recent reports issued by Deutsche Bank, DBRS and Fitch Ratings find that commercial real estate fundamentals have dramatically weakened across most major property segments and markets, with some starting to reach the depressed levels of the last major recession in the early 1990s.And as conditions worsen, borrowers and workout specialist may have fewer and fewer options, the reports warn, which could further depress the industry.Richard Parkus, head of CMBS Research at Deutsche Bank, projected in his firm's commercial real estate outlook last month that property prices are expected to decline 35% to 45% (or more) overall during this recession. That would exceed the sale price declines seen in the early 1990s. Parkus added that declines in rental and vacancy rates may also approach levels of the early 1990s.CMBS collateral performance are currently deteriorating at a historically fast pace and Parkus predicted the total delinquency rate could likely to exceed 3.5% by year-end. That is one of the highest estimates that have been projected by CMBS analysts. Worse still, Parkus added, it could go as high as 6% by 2010. The peak delinquency rates in early 1990s were 6% to 7%.CRE at a PrecipiceBy far the greatest risk facing CMBS loans right now is maturity default/extension risk, not term default risk, Parkus of Deutsch Bank said.A large percentage of CMBS loans made in 2005-2008 may not qualify for refinancing without substantial equity injections due to much tighter underwriting standards, massive price declines and declining cash flow.Multifamily loan performance has been deteriorating at a dramatic pace, Parkus said, with Midwestern "rust-belt" states plus Florida, Georgia and Texas among the worst performing markets. Interestingly, California and Arizona, ground zero for residential mortgage problems, continue to experience very low multifamily delinquencies.Parkus also noted that the deterioration of office properties values are beginning to accelerate due to job cuts. "We expect office to be one of the hardest hit property segments," Parkus said.Parkus noted what happened with 1540 Broadway in New York. Macklowe Properties purchased the office building in Time Square two years ago from Equity Office Properties for $1,080 per square foot.Last month, CBRE Richard Ellis Investors purchased the building for $403 per square foot -- an almost 63% price decline in two years.Retail CMBS Loss Severities To ClimbMeanwhile, Fitch Ratings put out a particularly bleak outlook for retail loan performance, projecting that loss severities on retail loans are likely to trend upward for the next several years as defaults on retail loans increase.Exacerbated by declining consumer spending and the shrinking U.S. economy, retail vacancies will likely increase to new highs as bankruptcies, store closings and retail consolidation continues, the bond rating agency said.Consumer spending has declined 4.3% as of year-end 2008. That contrasts with the Internet-bubble reduced recession of 2002 and 2003 when consumer spending remained positive.Retail delinquencies account for $1.7 billion of the $6.2 billion total delinquencies in the Fitch Loan Delinquency Index. The Loan Delinquency Index across all property types is 1.28%; with 1.17% of all retail loans within the index currently delinquent. Fitch expects defaults in the retail sector to contribute a greater percentage of the index into 2010.Specifically, Fitch said it expects losses on retail loans may increase as much as 34% to 60% from the 5-year cumulative average of 44% for current defaults."Increased vacancies in the retail sector will lead to longer resolution times as it will take longer to re-tenant space which will ultimately result in higher losses," said Mary MacNeill, managing director of Fitch Ratings.Hotel CMBS Loan Performance Deteriorating RapidlyIn a report issued on hotel loans held in commercial mortgage-backed securities by DBRS, the bond rating agency noted that, in a declining economy, commercial real estate investors are seeking long-term leases, low tenant rollover, low expense ratios and the ability to pass along increasing operating expense to tenants. Unfortunately, hotel properties offer none of these features."News coming out of the hotel market is, quite simply, not good. Well, bad actually. No, make that terrifying," the bond rating agency said. "Predicting hotel performance over the next 12 to 18 months is like juggling chainsaws while riding a unicycle."Most informed market participants seem to be gathering consensus around a high single-digit percentage decrease for revenue per available room (RevPAR). Given the apparent inability for most individuals to grasp just how bad the economy is and how bad it will get, it would not be surprising to see decline in RevPAR by well more than 10% in 2009, DBRS said.Options NarrowingAs CMBS loan delinquencies climb, Parkus of Deutsch Bank said, the options available for borrowers will likely start to narrow.As CMBS special servicers are appraised out of their controlling class positions over the next two years, they may have less incentive to extend maturing loan, Parkus said. In addition, senior bondholders are becoming much more activist against extensions."We expect this conflict to intensify significantly over time, bringing the threat of legal action against special servicers that practice widespread extensions," Parkus said.Fitch Ratings also said special servicers may need to explore several different options to maximize recoveries. For example, with single-tenant retail, spaces can be marketed to non-traditional entertainment tenants. Conversely, they can also be subdivided in order to attract smaller tenants. Large vacant mall locations, such as those left vacant by Steve & Barry's or Macys, typically find more interest by subdividing the space or even selling the space back to the mall operator for redevelopment.Barring such options, special servicers could be more likely to foreclose on properties as borrowers become unable to fund operating shortfalls due to the loss of tenants, Fitch Ratings said.
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In an effort to control mosquitos that carry the West Nile Virus in foreclosed homes that have pools with stagnant water (green pools) the Las Vegas Nevada Health District's "Mosquito Control Program" have introduced Gambusia Affinis. It is a minnow like fish that lists mosquito larvae as it's favorite food. The fish were initially introduced to control mosquito population in wetland areas. With the increased amount of foreclosures with pools containing "green pools" they have become the health district's allies to prevent the West Nile Virus. Real estate agents or neighbors are asked to contact the health district when they encounter a "green pool". The health district will show up with fish in tow and get to work. They will only add fish to pools when the pumps are off. The purchaser is asked to call the health district to relocate the fish to a new home and another buffet of mosquito larvae.
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The REO (real estate owned) foreclosed home market is hot right now in the Prescott area with many homes priced under an already depressed market price.When banks price REOs under the market price, multiple offers are often the response. This means buyers can be up against stiff competition for that bank-owned home.It’s not unusual for some bargain-priced REO homes in the Prescott area to receive 3 or 5 offers. Sometimes the bank will throw out all but two offers and then ask the selected buyers to resubmit what is called “Highest and Final” offer. Sometimes the bank simply accepts the best offer at inception, or they can start over. Fun isn’t it?If you’re wondering how you can make your offer rise above all the rest and be the winning offer, here are the top 10 tips to win the REO multiple offer game with right packaging, price, terms and conditions:1. Know What the Bank Note Is For and What they PaidAsk your foreclosure buyer’s agent to find out the bank’s purchase price on the Trustee’s Deed. Compare that price to the price the bank is asking. Then, look at the amount of loans that were once secured to the property. Usually, the amount the bank will accept is somewhere between the original mortgage balance(s) and the foreclosure sale price. BUT, don’t put TOO much emphasis on these numbers when they are low. It a property is worth $300,000 and the bank is holding a note for only $100,000, they are not going to take $100k for it. They not not against making a profit on the rare occasion when they are not upside down. They’ll likely hold out until a reasonable offer appears.2. Know the Comparable Sales DataMake sure you know what properties have been selling for in the immediate area, both REO and traditional sales. The bank already got this data when they received their Broker Price Opinion (BPO) to determine the listing price and might have another BPO once the offers were reviewed. If the comparable sales for REOs has been $120/sqft in the neighborhood and you are offering $90/sqft, you can expect a counter at best and most likely will never hear back from the bank.3. Do an Analysis of the Listing Agent’s REO Pricing RecordMost REO agents focus as listing agents for REOs, and often they do not list any other type of property. Since REO agents deal in volume, they typically apply the same pricing principles to all their REO listings. Have your foreclosure buyer’s agent pull the history of the listing agent’s listings to determine the list-price to sales-price ratio. If most of those listings are selling for, say, 5% under list price, then you will have some guidance as to how much you need to offer.4. Know your Competition - Ask About the Number of OffersIf there are no offers on the REO home, you can probably offer less than list price and get your offer accepted. However, if there are more than two offers, you may need to offer above the asking price. If there are 10 offers, bear in mind that some of those offers might be all cash. Banks like all cash offers. If you are obtaining financing, then you may need to increase the price on your offer to be considered.5. Prepare an Offer Summary as a Cover SheetThis is aimed at simplifying the process for the Asset Manager, who, will more often than not, have 400 - 500 properties under management and often in multiple states with vastly different real estate contracts. This cover sheet will have the basics only (Price, Terms, Concessions, Closing dates, etc.).See a sample cover sheet. If you are an agent and want one emailed to you in Word format, just contact me.6. Choose a Closing Date Before the End of the MonthTry to have close of escrow on or before the 25th of the month. Banks are assessed their handling charges on the first and if they have not received the check before the end of the month then there is an additional charge for them.7. Submit Your Loan Status Report or Proof of Funds with your OfferIt goes without saying that you do not want to submit an offer without showing the REO manager that you have the means to purchase the home. If you are getting a loan, then it’s of paramount importance to submit the Loan Status Report (LSR) with your offer. If you are paying cash, you need to show proof of funds. Often buyers submit copies of money market account or bank statements (with the account numbers obscured) to show that they are capable of completing the purchase.8. Give Enough Time for the Bank to RespondUnlike homeowners who are typically working on one transaction at a time and can respond within 24 or 48 hours, REO asset managers usually hundreds of homes they are trying to dispose of. And since many of these are getting multiple offers, the amount of workload can be be overwhelming. This is why we suggest allowing 7 - 10 days as the response time on offers. Sometimes responses will come much quicker, but other times even longer. Manage your own expectations for response as well and make sure your agent is following up.Don’t take it personally when you don’t hear back…it’s not personal, it’s business!9. Don’t Try to Choose your own Title CompanyChoosing the escrow company who will help close the transaction is normally the buyer’s decision, but when buying a bank-owned home, buyers need to be flexible. One of the items that your buyer will need to be flexible about is that the bank will, more than likely, want to choose the title and escrow companies. This is due to the fact that they have significant amounts of title work done during the foreclosure process so they usually want to stay with that title company. Please be aware that many of the escrow and title companies that banks choose to use are not local, and that they are usually low bidders who are overwhelmed by transactions as well. They will have traveling notary services or local options for document signing, but don’t expect the same service you get from your favorite escrow officer. If you are an agent, take an active role in trying to help the title company get the contacts they need locally, like the HOA information, etc.10. Shorten the Inspection Period and Don’t Ask for Repairs at the Offer StageIf other buyers are asking for 15 days to conduct inspections, and you ask for 10, you will be deemed the more serious buyer. Banks, just like traditional sellers, don’t like the “Free Look” that the Arizona contract offers buyers during the inspection period. If your agent can’t make everything happen within 10 days, (home inspection, termite inspection, special inspections) ask why not. Sometimes banks will pay for repairs, but typically will not agree to do so at the offer stage. If there are serious problems are found during a home inspection, try to renegotiate after your offer has been accepted. Banks are much more likely to offer concessions once your offer is in the hopper, especially if the repairs are required as a loan condition.Bonus Tip: Offer to Split Transfer Fees if You Ask for Any Concessions at AllAs a rule, banks do not like to pay transfer fees, but if the buyer offers to split those fees, the bank will feel more amenable to accepting the offer. We suggest offering 50-50 splits on all transfer fees and do not ask for further concessions like seller paying buyer’s escrow costs, etc.Keep all of these tips in mind when you are making offers and you will experience far less frustration and and much more success when trying to buy bank-owned properties in the Prescott area.Bonus Tip #2: Write your contract in English and not legalese.Forget what the last CE instructor taught you at your renewal hours, and go back to writing the contract in plain English.Want to see an example of how not to write a contract?Read more…
I have many clients who call me looking for deals on short sales and foreclosed homes in the Prescott Arizona area market including Precott Valley, Chino Valley and Dewey-Humboldt. Many think that short sales are better deals than foreclosures, but his is rarely the case.What the difference?The short sale process has many moving parts that must be aligned in order for the sale to close. First of all, the lenders have to agree to a short sale, but sometimes banks won’t agree to a short sale without an offer. This means that the home has been listing for a price that the bank hasn’t agreed to, and once the offer comes in, the bank will assign a loss mitigator to review the process. This could take several months and most likely will involve a counter offer by the bank close to the loan amount…regardless of whether or not the loan has any bearing on market value. Then the games begin.When you buy a foreclosure in the Prescott area, the process is much more straightforward and the prices are set by the bank and not a by the homeowner and REALTOR, who have nothing to lose by listing it below market value. In fact, it stimulates demand and clients for the listing agent and the homeowner thinks there is progress because people are looking at their home and making offers.That’s not to say that all short sales are not good buys. The key to success is being prepared and having a full understanding of the process.For links to more information, see my Prescott AZ Area Foreclosures BlogRead more…
This is scary. The San Francisco Chronicle reports that lenders are sitting on hundreds of thousands of foreclosed homes that haven’t even been listed yet. If this “shadow inventory” hits the market, we’ll have a new definition of bottomless pit.From the article:“We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market,” said Rick Sharga, vice president of RealtyTrac, which compiles nationwide statistics on foreclosures. “California probably represents 80,000 of those homes. It could be disastrous if the banks suddenly flooded the market with those distressed properties. You’d have further depreciation and carnage.”The Chronicle suggests several reasons why banks might not be selling off their foreclosures:— The “pig in the python”: Digesting all those foreclosures takes awhile. It’s time-consuming to get a home vacant, clean and ready for sale. “The system is overwhelmed by the volume,” Sharga said. “In a normal market, there are 160,000 (foreclosures for sale nationwide) over the course of a year. Right now, there are about 80,000 every month.”— Accounting sleight-of-hand: Lenders could be deferring sales to put off having to acknowledge the actual extent of their loss. “With banks in the stress they’re in, I don’t think they’re anxious to show losses in assets on their balance sheets,” O’Toole said.— Slowing the free-fall: Banks might be strategically holding back some foreclosures so prices don’t fall as fast. “They want to be careful about not releasing them too quickly so they don’t drive prices down and hurt the values,” O’Toole said.And then, there are people scamming the system. Two dozen people have been indicted for “allegedly conducting a wide-ranging mortgage fraud based in San Diego and led by a street gang member.” From Reuters:The defendants allegedly used straw buyers and inflated appraisals to purchase homes that had sat on the market for extended periods and had been reduced in price.They submitted offers that exceeded the homes’ asking prices, and had the overage paid to a shell construction company that they claimed would make upgrades or handicap modifications to the properties, prosecutors said.The defendants instead disbursed the “kickback amount” to members and associates of the enterprise as payments for their participation, the indictment said.Lenders later foreclosed on the properties, taking “severe financial losses,” after the straw buyers failed to make payments, the indictment said.Jason Donn - Real Estate Open NetworkersRead more…
Ok, maybe I am old fashioned maybe, I am a bit of a dunce maybe, I don’t know my A$$ from a hole in the ground….or, maybe, just maybe….I know what I am talking about.
So, I got this listing, it’s a short sale…my fav and, I put on the MLS sheet…
“Pre-Approval REQUIRED WITH, NO STIPULATIONS, NO EXCEPTIONS”
So, I get 15 offers on this house in less than 2 weeks and out of all those 15 offers, not a single one sent me a pre-approval letter as requested.
Some pre approval letters were 1 page long, some were 2 pages long. Some had pretty scripted letter head and some had large bold printing. Some were from local mortgage brokers and some were from out of state but, they all had one thing in common. They all said “PRE-APPROVED” yet, they all also had stipulations!
Some said things like, “Pre-Approved at time of application” or “Pre-Approved with the following stipulations” and my favorite, “Pre-Approved however not verified”
I have to ask, what is a pre-approval? Do our words mean anything now a days or is it just that everyone is pre-approved.
I even had one lender tell me that, the buyer is pre-approved but the house isn’t……WHAT DOES THAT MEAN? Is the buyer credit worthy and can buy whatever home he wants or is he teetering on the edge of credit worthiness and the bank requires some sort of inspection or appraisal…..WHAT DOES IT MEAN?
So, I need to convey the following message in my MLS forms in one line or less….how do you suggest I state it? Just curious?
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I have been listing REOs for about a year and a half....what I have discovered is growing my REO business has proven to be more of a challenge than I could have imagined... I work for approximately four companies, listing their properties....as I started to branch out, looking to apply to work with other companies..of course I was told that I needed "references" Sounds easy right??I have a good releationship with my Asset Managers.....since I am a small fry (don't work for a large franchise brokerage) , in the grand scheme of the REO world...I have to work that much harder to make a name for myself.....I have contacted the companies I work for and 3 of them are "not allowed" to give references......WHAT!!! One of my Asset Mangers, who I have gotten to know.......is very upset about the policy..but it is what it is......What's a Girl to do....? Growing my business, is going to pretty much be just like starting all over......my anology, is I am 4 ft. tall in a room of 6 ft. tall people...having to jump up...to get noticed...much like Horshack on "Welcome back Cotter" :) :)Anyone else run into this problem....:)Konnie McKee, RDCpro703 407 7088 (cell)www.KonnieMac.comREO, Short Sale Specialistwww.KonnieMacSellsREOs.com
Realty Direct14505 Holshire WayHaymarket, Virginia 20169703 407 708
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This is by far the best news piece I have seen on the credit crisis created by housing and the road to recovery. It does not take "Party" sides. It features Willam Black an Econ and Law Professor who worked as a regulator during the Saving and Loan Scandel in the 1990s.http://www.pbs.org/moyers/journal/04032009/watch.htmlI have a feeling this brings a new tone to our financial situation and gives some make sence ideas.
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I would like to know from a AM's perspective, what designations do you prefer and do you specifically look them out when you are searching for agents within your property areas? Or is just plain old years of hard work better than any designation you can add to your name?
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