Posts Tagged ‘foreclosure’
How To Deal With Real Estate Agents Who Are Short Sale “Specialists”
Monday, September 6th, 2010As a short sale investor, you may find that there are times when you find a good short sale deal with the help of a real estate agent. Many times, the agent in question will bill him or herself as a “short sale expert,” which may be a title that helps attract listings and implies a familiarity with the short sale process.
As short sales take over more and more of the market, increasing the numbers of agents are labeling themselves in this way. However,does this actually mean anything, and is the title worth the commission that the individual in question is going to charge someone – probably you?In some cases, working with an agent who specializes in short sales can really smooth the way through a transaction.
If the agent has connections with the lender who has the lien on the property or has already done a great deal of the legwork necessary to set up the property for a short sale, then their commission may be a small price to pay for the time, effort and money you will save getting the deal under way. In cases where the agent actually has standing relationships with lenders or has already set up the property to be short-sale ready, it will likely be worth it to work with them.
However, other “specialists” may have far more limited use. Some agents simply add this description to their list of titles to indicate that they will work with short sales or know the basics about what one is. In this type of scenario, they may be little help and you may end up spending a lot of time explaining what you are doing or trying to work around them rather than being able to utilize them as part of your team. If the real estate agent in question cannot contribute to the process in a positive manner, then their specialization will probably not be something that makes them an attractive temporary member of your deal-making team.
Of course, if you can find the property with the help of an agent who is a short sale specialist, then regardless of whether or not that billing is accurate, you might have to work with them. But, if you have a choice in the matter, look for agents who have the relationships and experience to actually back up their claims before you sign them on.
For some great short sales video training,check out www.FreeShortSaleCourse.com
Latest Housing Statistics Look Dismal
Saturday, September 4th, 2010
Last week we talked about the declining home sales in America. They fell 30% from May to June. Those videos were filmed on Monday, July 5th and since that point in time there have been tons of articles supporting what we are saying.
First of all, if you took our videos last week to think that you should run and hide from this state of affairs, you are totally wrong. We disclose this information with you so that you can stand facing this market head on. We’re merely trying to be realists and move our strategy as the market changes.
One piece of writing remarks that the US economy appears to be in discontent as the effects of government stimulus are already wearing off. Also worth noting is that a double dip recession is very doubtful due to historical precedents. Nevertheless, Kevin wonders aloud how we can engage in a double dip recession if our market never improved. The financial system has constantly been bad. Also mentioned in other writings was the national mortgage deliquency rate. It grew to 9.2% in May, up 2.3% from a month previous and up 7.9% from a year before. This makes you speculate how mortage deliquencies are going up, but there was a rise in our economy.
When we look at writings like this, recognize that there is an opening to help citizens out. Don’t run and be fearful. There will always be purchasers and there will at all times be sellers. People have to have a space to live in. Every home is marketable at the appropriate price.
It is important to note that the non-current mortages are really at a 12.4%. That is awful, because the historical average is close to 1%. One other impressive statistic to note is that the average quantity of days elapsing between when a mortgage becomes 30 days deliquent to foreclosure sale reached a record high of 449 days. So, from the moment that a house owner is a month late in payments, they are not losing their house for 14 months on average.
We will also be teaching a Short Sale Crush It session that continues to get better. Preregister for that August 13th lecture at shortsalepowerhour.com
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Fannie Mae Gets Tough On Mortgage Walk Aways
Wednesday, September 1st, 2010Walking away from a mortgage can now result in a 7 year penaly imposed by Fannie Mae.
In an effort to mitigate losses incurred from borrowers walking away from their mortgage because they owe more than the home value, Fannie Mae said that those who had the capacity to pay the mortgage or did not attempt a foreclosure alternative program would be ineligible for a new mortgage for a period of 7 years.
High loan to value mortgages and falling home values put many homeowners in a situation where they are “underwater”, owing far more than their home is worth. Walking away from the mortgage creates ethical as well as credit issues, but has become more of an acceptable choice, even with homeowners who can still afford to make their mortgage payments.
Fannie Mae, one of the primary sources of home financing in the U.S., continues to face major losses from mortgage defaults and foreclosures. Their plan is to try and prevent more losses by threatening to lock out “strategic defaulters” from financing another home for 7 years after a foreclosure. Borrowers who can prove extenuating circumstances or attempts to prevent the foreclosure, such as a loan modification, may have the waiting period reduced to 3 years.
While some advocates claim this action is necessary to discourage the growth of strategic mortgage defaults, there are others who say the move by Fannie Mae has the potential of derailing the recovery of the housing market. Their argument is that strategic defaulters walk away from a mortgage because of negative equity, but they still have jobs and the required income to qualify for buying another home. Locking out these potential home buyers may reduce the demand for homes, which could affects home sales and eventually home values.
Will Fannie Mae’s strategy of trying to lock out borrowers who strategically default on their mortgage really work? Not unless other government sources of home financing, such as, Freddie Mac and FHA adopt similar restrictive mortgage default policies. Also, having a foreclosure added to a credit report can prevent a borrower from qualifying for a mortgage for at least two years, which may be a sufficient deterrent for borrowers who still have good credit.
The motivation for a strategic mortgage default may depend on how deep a borrower is underwater on their home. Having a mortgage that’s twice as much as the value of a home could be somewhat discouraging. The idea of being stuck with a bad real estate asset that may not reach a break-even point for many years may be enough motivation to walk away.
Written by R. Smith: Home Loan, Mortgage Quote, New Homes Chula Vista
Fresh Article Ranks Banks In Short Sale Promptness
Wednesday, September 1st, 2010
Today’s focus revolves around a report written by Jon Prior. The item was written about the speed of short sales. Deutschbank a short time ago ranked banks as to how fast they closed short sales.
GMAC pulled down the top position by closing short sales, on average, sixty days from the day the loan became 2 months delinquent. Wells Fargo, which positioned third in the rankings, averaged eight months to complete a short sale. Wells Fargo has grown its home prevention workforce by more than 140% since the start of 2009. The bank hired greater than 10,000 people to help ease the short sale pile and rein in foreclosures. That is a gigantic number!
Bank of America currently has 1500 and they are adding an extra 1500, to help out. Yet, Bank of America uses the Equator system which streamlines the program quite a bit.
For prime mortgages GMAC conducted short sales the best, averaging roughly 6 months per contract. The next best servicer was Citigroup, averaging about 7 and a half months per deal.
So, the article references GMAC, Citigroup, Wells Fargo, and Bank of America. On the other hand, there was a lender absent from this account, namely, Chase bank. That is because Chase completely refuses to have a streamline program. The rest of the major banks have enhanced their short sale method.
It’s good to recognize that GMAC, CItigroup and Wells Fargo are doing fine with short sales. If you are having difficulty at any of those three lenders, bear in mind that the heads of these businesses want their processes to improve. So, if you are escalating at any of these lenders, the management is especially accommodating.
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How To Save Your Home From Foreclosure
Wednesday, August 25th, 2010Lenders are conscious about the financial circumstances and problems that may affect their clients. Lately, thousands of individuals have encountered issues trying to repay their home loan, pressuring them to deal with foreclosure of their homes. For anyone who is looking to avoid foreclosure of your home, you should consider a loan modification.
Folks usually think that their loan providers are interested in removing their properties. This really is far from the truth in the present financial situation. Because of the economy, foreclosed houses usually do not sell fast and they usually have to be sold below the market value. So the lenders usually lose more money if the property goes into foreclosure.
For most folks, the loan modification procedure is not simple. Each lender functions differently, with their own rules and restrictions. Knowing these guidelines will boost your chances of approval.
For starters, acquire your monthly income stubs, tax information and any other financial documents. You’ll be required to write a hardship letter, describing the reason why you fell behind (this could be from a loss of job, illness, sudden death in the family, etc). You must say why a loan modification would help you. Make sure to be totally truthful in your letter. Additionally, you will need to supply a financial worksheet. This is where you must record your monthly income and expenditures. Make sure you include every little thing.
You might want to consider a loan modification service to speed up the process, as they’ll do all of the crucial paperwork for you. Because these experts talk your lender’s language, the odds of approval are better.
Many loan modification services offer free consultations, so I highly recommend you make use of a free consult to decide the best strategy. Stopping foreclosure is doable, providing you take quick action.
Related: ham home loan | secrets how to stop foreclosure
Bank Of America Enhancing Short Sale Method
Monday, August 23rd, 2010
From the very creation, shortsalepowerhour.com has spoken about the outback mindset. The outback is a solution oriented mindset to recognize processes that don’t work and generating solutions for them. Most people in a short sale deal are committed to saying I can or I can not do this based on what someone else has told them.
We would like to talk about the HAFA program which rolled out April 5th. It was assumed to be a game changing process. The HAFA program, in my judgment, has been a enormous disappointment. That’s not to say that people have not qualified for HAFA, but the point is that the predefined criterion standards are a slap in the face. The whole idea has been missed because no one understands the program even though the information is out there.
So, sellers come to us and say, “Hey I heard i can get $3000″. That is the initiation for the program and it creates an opportunity for an emotional situation and leads to more victims.
About a month ago, I was up in Scottsdale at a huge event where Matt Vernon, Bank of America executive, chatted about short sales and the troubles that they have had with them. During the gathering he brought up HAFA and I laughed at him. I laughed because HAFA has been a complete catastrophe. Interestingly though, according to Matt Vernon, Bank of America has dedicated themselves to generating their own course that is similar to HAFA to speed up the method and incentivize the home owner. The expectation is that the short sale procedure can be whittled down from 120-150 day short sale down to 60-90 days.
2 years ago, based on results, Coach Collard hated you guys at Bank of America. It is wonderful to see that you are talking about leadership and you are making things come to pass. We appreciate the fact that you are honestly communicating with short sale agents. Stick to the outcome and make it happen.
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Short Sales Are Coming Toward Your Area
Saturday, August 21st, 2010
Welcome to shortsalepowerhour.com. We are joined by our elite guest Pete, who knows short sales. Filming from Mission Beach on another dreary day, we are live on the road during rush hour. If you haven’t turned the installment off yet, let us talk regarding short sales and the short sale marketplace.
If you are one of those realtors that believes that short sales will not arrive in your neighborhood of the state, now is the point in time to transform your frame of mind. There are tons of people saying that short sales won’t be a large part of your marketplace or that short sales will not affect your real estate market. It is maybe time for you to overlook what those people are saying.
Start tuning in to what is occuring in our nation. We have been chatting for the last couple weeks about information in the market. Sales are going down. Prices are going down. And Observably short sales and REO sales are going up. It brought back some recollections of conversations that Kevin and Fred had with some regional real estate agents in the San Diego neighborhood. We told them that we were in real estate and we worked with short sales. They told us that short sales would never get to the beach.
Pete is one of the large real estate agents in the San Diego locale. This road sign used to state Pete knows PB, but now it says Pete Knows Short Sales. Even the people that just rode by on bikes and rang a bell recognize that short sales are share of the market now. So, for those of you that keep saying that short sales are not a share of the market or for those of you that keep saying that short sales will merely be around for a few years, it is time to comprehend that short sales are here and they will be in the future. If Pete has shifted his business practices, maybe it’s time for you to mull over a change in your business practices.
If you are thinking of getting into the short sale commerce, check out our Crush It Short Sale class in the Phoenix neighborhood on Friday, August 13th.
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Take Care Of Your Short Sale Files Or Foreclosure Will Materialize
Friday, August 20th, 2010
Kevin and Fred are hanging out at Taco Surf in Pacific Beach, California. Fred in fact held his wedding reception at Taco Surf. If you are ever in the San Diego area, you ought to check out Taco Surf. The reason Fred is having such a late lunch today is because he has exhausted numerous hours this morning babysitting foreclosure sale dates.
The first folder, serviced by Metlife for Freddiemac, has been a menace during the entire progression. The first time we attempted to complete this file, MetLife sought to foreclose. So, we went to Freddiemac and they happily deferred the auction date. Nonetheless, the buyer on that deal fell through after inspections. At this point we have another buyer and we submitted that deal at the conclusion of June. We have been dealing with Metlife to get them each and every one of the papers that they needed until last week. Last week they notified us that they could not reschedule the foreclosure auction date because it was too late. So, this morning, Fred had to call Freddiemac once more to get the foreclosure auction date deferred. Freddiemac, once again, happily postponed the auction date and sent Metlife an email asking them to put off the auction date for an additional 60 days because the bid on this home is more than the BPO. It certainly makes you speculate what Metlife is doing in the short sale business.
The second folder, working with Chase, has been very frustrating. Fred was told last week that the auction date has been postponed and all is good. Fred has talked to a couple of people that have been very helpful and polite, but the trustee has previously told Fred that the house is going to foreclosure sale tomorrow. Fred called the trustee for the second time today and he confirmed that it is positively going to sale.
At last, the Chase worker called Fred back and confirmed that the sale had not been deferred. Evidently, Chase delayed the sale internally, but Chase forgot to get consent from the investor. So, Chase had to go to the backer and request that they sale date be deferred.
We are not picking on any servicers or investors, but we need other realtors to understand that you must confirm foreclosure auction dates with the trustee. Trust no one inside the banks and corroborate everything.
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How You Profit From Using The Right Real Estate Software
Tuesday, August 17th, 2010Millionaires are made every day in the real estate industry. Even though this is a true proclamation, there are numerous investors who have lost everything by investing in real estate. Some started out with real estate as a diversion, but to sincerely succeed, you need to treat your real estate investments as a business. As a business, choosing the suitable business tools and software are essential to your success.
Choosing A Good Real Estate Software
Regardless of whether you are a first time investor, or a seasoned specialist, having the right investment analysis software can help you avoid the pitfalls that may not otherwise be visible. In the past years, because real estate was such a blistering market, countless investors skipped the analysis and just bought property. Sadly, now countless of individuals investors have lost their life savings and their property to foreclosure. Using the suitable real estate investment tool would have helped countless of individuals investors avoid this unfortunate circumstance.
Getting The Best Real Estate Tools To Maximize Your Business
When trying to profit from investing in real estate there are numerous tools that will minimize your risk. Aside from financial analysis, you will need the programs that will help you track your revenue and expenses and help you to profit from your real estate investment. If you plan to purchase property and rent it out as part of your business, you will need tools to track rents. If you flip the properties that you invest in, contract management programs and tools may be needed to track expenses. Regardless of your goals, choosing the appropriate real estate software will help you minimize your risk and maximize your return.
Before investing in a real estate software program, or even before you make your first investment, you first will need to write down what your specific goals are for your real estate business. Are you going to be a short term flipper, or a long term investor? By setting up your specific business and real estate investment goals, you can identify the tools and software programs that you will need to help you succeed in real estate.
Believe it or not, the right software is critical to your success when buying real estate. Although you can succeed by investing in property without using the analysis and tracking tools, your risks are much much higher. There are a lot of buyers who have bought without the use of any type of software. However, the number of investors who have lost everything because they could not quantify the risks is even more staggering.
Download multi tenant residential investment software from Freetrainer.com. FreeTrainer.com provides a number of tools to improve your success.
Wells Fargo Short Sale Conflict
Monday, August 16th, 2010
Every once in a while, we want to vent our frustrations to keep our sanity in the difficult short sale industry. It also helps us keep fueling the flames to contest the banks because some days are more complicated than others.
We don’t detest Wells Fargo. Nevertheless, they are failing us at the moment. The loan that we are having difficulties with is an FHA loan. So, that might be part of the trouble holding things up. We will have to escalate with this folder. Here is the tale.
We received an offer on a house, a town house in Maple Grove. The listing price was lowered to $129,900 and we received a very good bid on the property. We actually counteroffered and received an even higher offer. So, now we are sitting on an appraisal clash because the lender is not content with the value that they received.
Wells Fargo showed us the appraisal details and they were using comparables from six months ago and failed to contemplate any houses that were short sales or REOs. Also, the entire town home development is short sales and REOs. They will only consider active listings that were of normal sales.
Noticeably, this is a short sale. Nevertheless, we are not permitted to use the exact same town homes that were sold through foreclosure or short sale. We have a closing that is assumed to be in August. This progression with Wells Fargo is unreasonable. Why don’t we go back four years ago and glance at those sales?
We will get this sale completed. This has happened before, but we sought to give people some insight as to why loan modifications don’t work and why other realtors don’t close short sales and why short sales take so long. We have submitted seven comps that were lesser than the offer on this town home. We will happily pay for a airplane ticket for Wells Fargo to come and see the comps and visit the home. We know the market and we will complete this deal.
Get more help from short sale Realtors, Josh and Sarah, at Short Sale Shift presented by the Short Sale Specialists of Minnesota
