Obama Administration’s Bank Smack-Down | Loan Mod Training Popularity: 1% [?]

More information on the Obama Administrations crack down on the lenders.

Anything that helps more folks keep their homes…

Anything that helps to expedite the short sale process….for those who can’t or choose not to keep their homes…

Anything that leads to the end of this housing crisis….

Every agent should support.

In this market agents must know about loan modifications. Even if that simply means having the ability to answer questions about loan mods….agents must be ready and able to be the nations resource for all things housing. Yes, you can mod your own loan…save yourself $100s per month and $1000s per year…yes, you can do loan mods for profit. Watch the FREE Agent Loan Mod Secrets video and download the FREE Loan Mod Secrets book.

Here is the CNBC Video:

Popularity: 1% [?]

Emergency Agent Short Sale Call THIS Week | New Rules, New Guidelines…New Short Sale Process! Popularity: 2% [?]

Emergency Short Sale Secrets teleconference is this week…

Now, click here for all the call in info:
Emergency Agent Short Sale Secrets Event Info <——Go Here Now.

Here is your video invite:

Hello,

Emergency Short Sale teleconference is THIS WEEK….

…..many changes happening now for Short Sales…stuff you need to know…

According to the CEO and Founder of RE/MAX, Dave Liniger, If you are not
doing short sales you need to get out of the business. (That may not be an exact quote
but, you get the idea.)

As we reported on the blog last week..the Treasury Department is now coming out with a stream-lined national standard for short sales!

…..YES, you read that correctly….FINALLY, a standardized short sale system is in the works (we will go over this in detail on the teleconference)

More proof that short sales are gold in this market?

According to the NAR nearly 50% of ALL sales in the US were…..Foreclosures (and short sales)…..

You simply must be doing short sales if you you expect to stay in real estate.

And, I am here to tell you that…when you do it right…short sales are one of the best ways
to make money NOW.

Take action now…join us for this week’s Agent Short Sale Secrets FR-EE Teleconference.

This Thursday November 12th at 12:00nn PST, 3:00pm EST……while you are thinking about it click the link for all the event info:

Emergency Agent Short Sale Secrets Event Info

This is the event where you will learn all of the must-know-now short sale
info..If this call is anything like the last one.. this teleconference will be completely full.
100% of the spots will be taken.

Because you are getting this message…your ’seat’ has been reserved.

Now, click here for all the call in info:
Emergency Agent Short Sale Secrets Event Info <——Go Here Now.

If you’re market is anything like mine nearly every home for sale
is a ‘Short Sale’ listing. Now, you will learn exactly how to:

1) Plug and Play marketing ideas to easily list short sales.
2) Assemble a Perfect ‘Package’ that gets accepted nearly every time.
3) Communicate with the lenders and get them to call you back.
4) Step-by-Step how to do short sales, how to get started now.
5) Plus, many more secrets revealed.
6) How the NEW Obama Housing Plan will make Shorts even better, easier, quicker!

You will love the ideas and energy you will get from this call.
Expect to take pages of great notes.

One more thing..I know this sounds crazy. Please don’t share the
info about this call with other agents. This call will be completely full.

Before its too late……

Click here NOW for all the call in info:
Emergency Agent Short Sale Secrets Event Info <——-Important Link.

Speak with you soon,
Tim and Julie Harris

P.S. This is not a ‘fluff call’. We respect your time and will be
giving you the information you must have to cash in on the Short
Sale listings explosion that is taking place now.

P.P.S. This call is taking place at 12:00 pm PST, 1:00 pm MTN, 2:00
pm CTR, 3 pm EST.

Popularity: 2% [?]

2010 Real Estate Market Predictions | What Is Happening Next In Real Estate Popularity: 5% [?]

Here is a short quiz for you…(HREU Students, this should be easy for you…we have been preparing you for this market)

1) How many homes in the U.S. are vacant?

2) How many homes received a default or auction notice or were repossessed by banks last in September?

3) In the second quarter of 2009 what was the total value of all the homes that the banks were holding (to be sold via REO)?

If you are new to HREU…here is a hint to pass this quiz.

Take whatever numbers you think are correct and double if not triple them.

Answers:1)  Nearly 19,000,000. To put that into perspective..there are currently around 4,000,000 home actively listed for sale now. 2) Nearly 1,000,000. Thats one million NEW REOs coming for sale soon in a town near you. 3) 34 BILLION! Thats the total estimated value of all the homes the banks took back via foreclosure in second quarter alone.

Its very important that you are clear what is really happening. You need to be focused on what opportunities you have today…and where the opportunities are in 2010. Clearly, the agents who have become Short Sale Specialists and REO Listing Agents will be the agents with a majority of the business.

Now, given what you now know about the massive number of REOs that must be listed and sold….over the next few months…and years….why wouldn’t you want to become a HREU Certified REO Specialist? Don’t make the mistake in believing that the banks have already selected their REO listing agents. Nothing could be further from the truth. Watch the FREE Agent REO Secrets video and grab your free how-to list REO’s book.

Here is an article from Bloomberg:

About 18.8 million homes stood empty in the U.S. during the third quarter as banks seized properties from delinquent borrowers and new home sales fell in September.

The number of vacant properties, including foreclosures, residences for sale and vacation homes, rose from 18.4 million a year earlier and 18.7 million in the second quarter, the U.S. Census Bureau said in a report today. The record high was in the first quarter, when 18.95 million homes were vacant. The homeownership rate, meaning households that own their own residence, stood at 67.6 percent.

The worst U.S. housing crash since the Great Depression has led to a record number of foreclosures and shaved almost a third off property values. The S&P/Case-Shiller Index of 20 cities in August was 29 percent below its 2006 high, after rising for four consecutive months.

“We are bumping along the bottom of the housing market,” said James Lockhart, vice chairman of WL Ross & Co. and the former director of the Federal Housing Finance Agency. “There is the potential for another swing down.”

Sales of new U.S. homes fell 3.6 percent in September to an annual pace of 402,000, the Commerce Department said yesterday. That was lower than the 440,000 median forecast of 75 economists surveyed by Bloomberg News.

OK, lets take a little breath and think about what you are reading.

Obviously, what is going to happen in 2010 will NOT be any sort of price recovery…if anything, there will be additional home value losses. We are predicting that most markets could see another 10-15% loss in value. For homes in the $200,000 and lower ranges the losses will be less…if any at all. The biggest hit will come from the ‘luxury’ home value segment.

So, what can you do now to help folks avoid foreclosure? Simple, learn how to do Short Sales. Forget EVERYTHING you think you know about short sales. The short sale process has changed significantly over the last 60 days and 2010 will be the ‘Year of the Short Sale’. Bottom line, if you plan on being in real estate…for the next few years….you simply must be doing short sales. Do you really have a choice? Do this…watch the FREE Agent Short Sale Secrets video and download the FREE Agent Short Sale Secrets book.

Vacancy Rate

The percentage of all U.S. homes empty and for sale, known as the vacancy rate, rose to 2.6 percent from 2.5 percent in the second quarter. It hit an all-time high of 2.9 percent in the first and fourth quarters of 2008, the Census Bureau said.

There were 130.3 million homes in the U.S. in the third quarter, according to the report. In addition to the 2 million empty properties for sale, the report counted 4.6 million vacant homes for rent and 4.6 million seasonal properties that are only used for part of the year.

Foreclosures are included in a part of the Census Bureau that also includes vacation homes intended for year-round use and homes that are unoccupied because they are under renovation or tied up in legal proceedings. There were 7.7 million such properties empty in the first quarter, up from 7.5 million a year earlier, the report said.

Foreclosures could also be counted as vacant homes for sale or rent, or as owner-occupied properties if lenders have not yet evicted previous owners, the federal agency said.

U.S. foreclosure filings climbed to a record in the third quarter as lenders seized more properties from delinquent borrowers, according to RealtyTrac Inc. in Irvine, California. A total of 937,840 homes received a default or auction notice or were repossessed by banks, a 23 percent increase from a year earlier, the data company said.

U.S. banks in the second quarter held $34 billion of properties acquired through foreclosure, including repossessed homes and condominium projects gone bust, according to the Federal Deposit Insurance Corp. in Washington. That’s almost double the $18.9 billion of real estate a year earlier.

Popularity: 5% [?]

First Time Home Buyer Credit Being Cancelled? Say It Aint So! (Video) | Real Estate Training Popularity: 1% [?]

Will the first time home buyer credit be renewed…or even better…extended?

THAT is the question…..

As all of you know…the ‘first time home buyer’s’ credit was a huge boost to housing.

We can argue the long term benefits or detriments of these sorts of government handouts later…..we have heard from HREU Coaching Student from all over the US how crucial a continuation of this program is for any sort of meaningful long term housing recovery. At this point everyone knows that the economy goes where housing flows. Homes sell…fewer foreclosures….eventual leveling off of home values…and then a return to a stable market.

Here’s the tough part, there is no guarantee that there will be an extension of this program. We reported on this blog yesterday that there may be movement away from this program towards others by the Obama Administration.

Here’s a new video from CNBC Rock-Star Diana Olick. If you have yet to discover Diana…check her out. No question that she is the best reporter about all things housing. She cuts through the fluff and gives you the bottom line:

More from Diana….

I have to say I was a bit surprised at the crafting of HUD Secretary Shaun Donovan’s statement before the Senate Banking Committee today, specifically with regards to the first time home buyer tax credit. Donovan followed testimony from Sen. Johnny Isakson (R-GA), who is pushing for not only and extension of the credit through the first half of 2010, but an expansion to all home buyers with joint annual income up to $300,000.

In case you didn’t know it..Sen. Johnny Isakson’s family is in the real estate business! They own a very large, successful real estate brokerage.

Isakson told fellow Senators that without such an expansion, “We will have a dramatic and awful situation in the US from which recovery will be more difficult than what we’ve experienced already.”

Yep, we agree. Here’s the rub. Many believe that the folks who would be ’stimulated’ by the $8,000 stimulus…have already purchased. Additionally, the next wave of foreclosures are with more expensive homes….not the sort of homes first timers would want/ could afford.

Going into the hearing, we already knew that the Obama Administration had yet to take a stand publicly on an extension of the credit, which turns into a pumpkin Nov. 30th. A few weeks ago, during a conference call on the government’s loan modification program, I asked a “Senior Administration Official” about the credit, and he responded, “There are a lot of ideas out there for what to do with the extension of the home buyer credit, and other credits, and those issues are not yet finalized from our perspective internally.” At the time I called that a “punt.” Your safest play.

HUD Secretary Donovan, in his opening statement, said:

I am also aware of the strong support in Congress for doing more to support the housing market, including extending the First Time Home Buyer Tax Credit beyond 2009. At the same time, I am mindful that these proposals can be very expensive, especially at a time of significant budget deficits. I can assure you the Administration will work with Congress to fashion appropriate and effective home buyer incentives, mindful of both their benefits to stimulating new demand and their costs to the American taxpayer.

THAT comment makes me nervous. If these guys were going to back the continuation of this program wouldn’t they be shouting from the tops of the tallest (unsold, vacant) buildings? Doesn’t it make sense that if you really want to juice up housing you need to continue the momentum that has already started….Come on Mr. HUD Secretary….you aren’t really going to drain the fuel from the tank just as we are getting rolling are you?

And it seems that I am not alone in my concerns about the lack of clarification….

I don’t know about you, but that sounded more like a “No” to me than a “Yes.” When pushed, by the never-timid and always blunt Sen. Jim Bunning (R-KY) on why the Administration needed more time to study the costs, Sec. Donovan continued to say they would have an answer one way or another in a few weeks.

I think it’s one thing to answer a question by saying we’re considering our options and weighing the costs, and another thing entirely to cite budget deficits and the expense to taxpayers, twice, in a prepared statement. Just my rumination

Popularity: 1% [?]

Making Homes Affordable | Short Sale and Deed In Lieu Program | Short Sale Training Popularity: 6% [?]

Great question from a HREU Agent Short Sale Secrets student:

How does the proposed MHA Short Sale and Deed In Lieu program guidelines effect my Short Sale business?

Recently, on another blog there was an article published that was misleading and (frankly) a little deceptive regarding the effects of MHA on the existing Short Sale process. I don’t often call attention to this sort of thing. But, today…I am making an exception. Why? Simple, our country…our industry doesn’t need anyone passing along incorrect information.

So, starting today….whenever we come across misleading…incorrect information we will let you…our students and fellow real estate professionals know. If this offends the offender then so be it.

The fact is HREU has been coaching our Agent Short Sale Secrets students to the new MHA proposed guidelines for nearly 12 months now. These proposed guidelines are certainly nothing new…and nothing to worry about.

As you will note…these guidelines are merely proposals and lenders/ servicers can participate if they choose. There has been a lot of chatter in the real estate community that the proposed MHA guidelines will radically alter the Short Sale process. Matter of fact, its been brought to my attention that a few folks have popped up who are trying to convince agents that the MHA proposed changes are something to worry about….they are not. As any HREU Agent Short Sale Secrets student will tell you…when a lender is following the MHA guidelines the Short Sale actually goes smoother and faster.

So, I am going to clear the air.

Before I do..a couple important points you need to clearly understand:

1) HREU is the nations largest online real estate university. As you know, we often report relevant real estate news to you days and often weeks before you read elsewhere. Agents, if there are changes that will effect your business you can rest assured that we will tell you.

2) We have been talking about MHA on this blog since it was proposed months ago. This is nothing new.

3) Lenders are NOT REQUIRED to participate in this proposed program.

4) In case you missed it…this is a proposed program….lenders are NOT REQUIRED TO PARTICIPATE. In preparing this blog post I emailed a few of the folks we are in contract with at the major lenders (Wells Fargo, BOA, Citi) and they confirmed that the guidelines are merely proposals. In other words, Not an actual law/ rule etc. If you are dealing with a FHA owned loan then you probably will be working with a servicer who is using the MHA guidelines.

Watch the video from CNN:

Realtors, in this market….being a HREU Certified Short Sale Specialist is an obvious key for your success. Consider the incredible number of homeowners who are upside down in their homes. When those homes want to sell…or have to sell….if they don’t list their home with an agents who knows how to sell a Short Sale they will lose the home to foreclosure. Watch the FREE Agent Short Sale Secrets video and download the FREE Agent Short Sale Secrets book.

Here are a few exerts from Yahoo News.

Making Homes Affordable Program….

* Eight months later, the plan is plagued by delays, red tape and, some critics say, a reluctance by banks to do their part. Just 17 percent of eligible borrowers have had their loans modified and monthly payments cut. Hardly any have been given a cut in the amount they owe on homes which are now worth less.

* Between July 2007 and August 2009 there were more than 7 million foreclosure filings, according to RealtyTrac, out of a total of 111 million households in the United States.

* To stem the tide Obama launched HAMP, a $75 billion plan offering cash incentives to servicers to cut payments for distressed borrowers with most of the money coming from the $700 billion bank rescue program Congress approved last year.

* The U.S. Treasury Department said on October 8 that under HAMP more than 500,000 people so far had their payments cut, slightly under 17 percent of those deemed eligible, ahead of the department’s November 1 deadline for reaching that number.

* But Treasury officials concede that even if HAMP is a success, millions more foreclosures remain likely.

* Another problem is the number of borrowers who re-default on their modified loans. The U.S. Office of the Comptroller of the Currency says 56.2 percent of loans modified in the second quarter of 2008 re-defaulted after 12 months.

* According to Amherst Securities, an even higher 70 percent of homeowners re-default within 12 months of a modification — but it stresses its data does not include HAMP modifications.

* On October 9, a day after the Treasury announced HAMP was ahead of target, the Congressional Oversight Panel issued a scathing report on the program. It found fewer than half of the predicted foreclosures would be avoided under HAMP.

For those of you who want more info….here ya go:

Topic	Term Sheet Requirements
Borrower Eligibility for Short Sale or DIL	A servicer must offer a short sale or DIL to a borrower who met the eligibility criteria for HMP (including hardship and DTI greater than 31%) and either: Was not offered a trial modification because the loan was NPV negative; Was offered a trial modification but determined that it was still unaffordable (potentially due to very high back end ratio); Failed the Trial Period Plan; or Became 90 or more days delinquent on a HMP modification.
Exceptions	Short sale or DIL will not be available if the option is specifically prohibited by the investor. At the discretion of the Servicer, a short sale or DIL may not be available if the foreclosure sale date is already set .
Program Expiration	Eligible borrowers will be accepted until December 31, 2017.  Program payments will be made upon successful completion of the short sale or DIL if the Short Sale Participation Agreement was executed prior to the program expiration.
Property Eligibility	The approved sales price of the property less any amounts the investor determines necessary to pay transaction costs that are normal and customary in the community where the property is located, must be less than the full payoff of the mortgage, including any mortgage insurance or credit enhancement proceeds. NOTE: If the net return from the sale exceeds the full payoff of the mortgage, including any mortgage insurance or credit enhancement proceeds, the transaction is not eligible for servicer, borrower or junior lien holder incentive compensation. The property must have clear, marketable title or the servicer must have a reasonable belief that the title impediments or liens can be cleared prior to sale. The borrower must disclose to the servicer any title information about any liens or impediments that will impede a sale. If there are title impairments that can be readily resolved, the servicer will work with the borrower and the borrower’s real estate agent to attempt to clear the title following receipt of an acceptable offer. If it is unlikely that the title impairments can readily be resolved, the servicer is not required to enter into a short sale agreement. With respect to DIL, servicers may elect not to accept title to properties, e.g. properties that are unmarketable due to poor physical condition, properties affected by the presence of or proximity to hazardous materials or contamination, properties affected by insolvency of homeowner’s associations, properties affected by pending legal action or properties subject to leases.
Property Value	The servicer will, independent of the borrower or other parties to the transaction, determine the current market value of the property in accordance with the investor’s guidelines.  This may include using either; An appraisal performed in accordance with USPAP, One or more Broker Price Opinions (based on an interior and exterior inspection of the property) provided by a licensed real estate agent(s) actively working in the community where the property is located, or The valuation must be dated within 120 days of the date the Short Sale Participation Agreement (the “Agreement”) is executed by the servicer; however specific investor guidelines may require more frequent valuations.
Participation Agreement	The servicer will prepare the Agreement. The borrower must sign and return the Agreement to the servicer by the date stated therein but in no event will the Agreement be due back in less than 14 calendar days.
Minimum Duration	The Agreement will indicate the duration of the marketing period, but in no event will it be less than 120 days.
Marketing Terms	The Agreement, which may be customized by the servicer, will state the terms under which the property may be offered for sale.  At a minimum the Agreement will: Require that the property be listed by a licensed real estate agent experienced in selling properties in the neighborhood. Require that the transaction be arms-length (i.e. not sold to a family member or sold with the intention to transfer the property back to the former borrower after the sale).  If the borrower or purchaser is a real estate agent, such individual may not receive a commission as part of a short sale. State the minimum listing price and/or net proceeds the servicer will accept (net proceeds may be stated as a dollar amount or percentage of market value).  This value will be provided by the servicer pursuant to investor guidelines and at the servicer’s discretion may be adjusted downward if the market conditions warrant. State that the listing agreement signed between the borrower and the real estate agent must contain a disclosure that any sale is subject to review and approval by the servicer. State that the borrower acknowledges that the transaction is contingent on the release of any junior liens or encumbrances and that the servicer is not responsible for ensuring the liens can be released. State the amount of the real estate commission that may be paid in conjunction with the sale and a statement that the servicer will not negotiate a lower commission as a condition of acceptance of an offer. Provide an expiration date and conditions for extensions thereof. Provide a statement that upon completion of a sale under the terms specified in the agreement the borrower will be released from all liability for the mortgage debt.
Marketing Terms	Provide a notice that forgiveness of debt under a short sale or DIL may have tax consequences and a recommendation that the borrower consult a tax advisor. 10.  Include a requirement that the borrower cooperate fully with the listing and sale and will not materially alter the property during the term of the agreement. 11.  State that the borrower will not receive any proceeds from the sale transaction other than borrower incentive offered under the Home Affordable Short Sale/DIL program, which incentive will be paid by the servicer after closing. 12.  At the option of the Servicer/Investor, the Agreement may include a condition that the borrower agrees, subject to the ability to deliver marketable title, to execute a deed in lieu of foreclosure in favor of the investor if the property does not sell prior to the expiration of the Agreement or any extension thereof. 13.  Other terms as determined by the servicer.
Forbearance	1. While a servicer is determining a borrower’s eligibility for a short sale or DIL, waiting for the timely return of the signed Agreement and for the duration of the Agreement and any extension thereof, the servicer may not conduct a foreclosure sale or refer new loans to foreclosure.  During the forbearance of legal action, no monthly mortgage payments will be required from the borrower.
Offer receipt and response	If a bona fide purchase offer is submitted at the agreed upon sales price prior to the end of the marketing period specified in the Agreement, the servicer will respond with an Offer Response Letter (Response) within the number of business days specified in the Agreement but in no event more than 10 business days. The Response will indicate acceptance, rejection or specific terms of a counter offer and may be conditioned upon the release of any junior liens or approval from an investor or credit enhancement provider. Servicer may work with the borrower and real estate agent to attempt to clear title and secure release of junior liens, but the servicer is not responsible for ensuring the release of liens. With the borrower’s permission, the borrower’s incentive compensation may be used to obtain release of junior liens or non-real estate title impediments. Upon sale and receipt by the servicer of acceptable net proceeds, the servicer will execute a full release of the mortgage and the servicer will pay the borrower any incentives due under the Agreement.
DIL Offer	Must be in accordance with investor guidelines. In the event the property does not sell prior to the expiration date of the Agreement or no bona fide purchase offer is received by the end of the marketing period specified in the Agreement or any extension thereof and if the borrower complies with all other requirements of the agreement, the servicer, or the servicer’s legal counsel as required by the investor’s guidelines, will prepare and mail to the borrower a warranty deed and DIL agreement, if: The servicer indicated in the Agreement that it was willing to accept a DIL, The property’s condition and circumstances have not changed materially, and The borrower is able to deliver clear and marketable title. The DIL agreement will state the date by which the property must be vacated and any other terms or conditions, including the incentive compensation payable to the borrower upon vacancy. The borrower must sign and return the DIL agreement and a signed and notarized deed to the servicer by the date stated therein, but in no event will the DIL agreement and deed be due back in less than 14 calendar days. Following receipt of the executed and notarized deed and DIL agreement, verification of clear title and verification that the property was vacated in accordance with the conditions of the DIL Agreement, the servicer will pay the borrower any incentives due under the agreement. Upon recordation of the deed the servicer will execute a full release of the mortgage.
Incentives	Borrowers are eligible for incentive compensation from TARP funds to assist with relocation expenses of $1,500 following successful closing of a short sale or recordation of a DIL. Servicers are eligible for incentive compensation from TARP funds of $1,000 following successful completion of a short sale or a DIL. Investors may, at their discretion and utilizing their own funds, offer additional incentives to borrowers or servicers to secure a successful short sale or DIL.
Release of Junior Liens	In conjunction with a successful short sale or DIL: Investors will be entitled to partial reimbursement from TARP funds of amounts to secure the release of any and all junior liens, non-real estate debts or other title impairments on the property not to exceed: The greater of $250 or 1.5% of the balance due on the account(s). The total lien release amount payable on any property by a servicer will not exceed a cumulative cap of $3,000. Investors are entitled to reimbursement from TARP funds of up to $1,000 per property paid at a rate of $1 for each $2 paid by the servicer/investor. In return for the incentive compensation, junior lien holders or other creditors must waive all future claims against the borrower(s). Servicers that execute a 2nd Lien Servicer Participation Agreement must agree to release liens to facilitate a Home Affordable Short Sale/DIL in exchange for the compensation provided herein.
Fees and Charges	Servicers may not charge borrowers any fees for participation in a short sale or DIL. Usual and customary selling expenses paid to third parties for services rendered related to the short sale may be deducted from the sale proceeds.
Borrower Default	Should a borrower fail to comply with the Agreement, the servicer may: Terminate the agreement and re-commence foreclosure or pursue another foreclosure prevention alternative. Place the borrower on a forbearance plan for the duration of the Agreement period. Immediately offer the borrower a DIL.
Mortgage Insurers	For loans that have mortgage insurance coverage, the investor will seek delegations from mortgage insurers to execute a short sales or DIL in accordance with the program terms and waivers by mortgage insurers of their rights to collect additional sums from the borrower.

Popularity: 6% [?]

Every 13 Seconds, Another Homes Goes Into Foreclosure! | How You Can List REOs Popularity: 1% [?]

Realtors, its easy to be lulled into a false sense of security this time of year. Many of us become dangerously complacent pinning all of our hopes on the idea that…

“it will be better next year….in the spring…the housing market can only get better”

Understand, no one wants this long painful housing depression to end more than Julie and I. I don’t know about you but, we have had enough bad news!

The challenge for all of us come when our hopes for “the better” replaces action. Fortunately (or unfortunately depending on your perspective) we are in the market cycle for a long time to come. The bottom line is….

THIS IS THE NEW NORMAL.

Facts: Every 13 Seconds Another Home Goes Into Foreclosure.

Fact: Nearly 7,000 Foreclosure Filings PER DAY.

Fact: There are Roughly 7,000,000 lender ‘Shadow Inventory’ homes….homes destined to become REO listings.

Fact: Its Simply Impossible That There Will Be Any Sort Of ‘Market Correction’ For Years.

Fact: The FHA Will Have To Raise Standards For Loans, Rates…Credit Scoring etc.

Fact: Over the next 3 years more than 6,000,000 more homes maybe lost to foreclosure (thats in addition to the 7,000,000!)

No amount of positive thinking…or mere ‘hoping’ is going to change those facts. Only one thing will….Educated Action. You will have nothing to fear once you have mastered the skills that THIS MARKET demands.

Important: 2 things…focus on what you are here to give..be of service to others…and….learn the new skills that this new market demands.

Realtors, one last point before you get to this article…..Its NOT Too Late For YOU To Become A REO Listing Agent. The simple fact is that there are more bank controlled homes that must be sold than there are agents who list and sell them! Banks are looking for new…REO Listing Agents NOW. Now the only question is…are YOU ready to become a REO Listing Agent? Watch the FREE Agent REO Secrets video…then grab your FREE Agent REO Secrets book.

Here are exerts from an article sourced: Reuters.com

Every 13 seconds in America, there is another foreclosure filing.

That’s the rhythm of a crisis that threatens to choke off hopes for a recovery in the U.S. housing market as it destroys hundreds of billions of dollars in property values a year.

There are more than 6,600 home foreclosure filings per day, according to the Center for Responsible Lending, a nonpartisan watchdog group based in Durham, North Carolina. With nearly two million already this year, the flood of foreclosures shows no sign of abating any time soon.

If anything, the country’s worst housing downturn since record-keeping began in the late 19th century may only get worse since foreclosures, which started with subprime borrowers, have now moved on to the much bigger prime loan market on the back of mounting unemployment.

In congressional testimony last month Michael Barr, the Treasury Department’s assistant secretary for financial institutions, said more than 6 million families could face foreclosure over the next three years.

“The recent crisis in the housing sector has devastated families and communities across the country and is at the center of our financial crisis and economic downturn,” Barr said.

A September report by a foreclosure task force appointed by Florida’s Supreme Court pointed to a shift in the root cause of foreclosures: “People are no longer defaulting simply because of a change in the payment structure of their loan. They are defaulting because of lost jobs or reduced hours or pay.”

Florida had the nation’s highest rate of homes — 23 percent — that were either in foreclosure or delinquent on mortgage payments in the second quarter, and the report said “the latest news for Florida is horrifying.”

A recent pickup in sales and home prices in some regions has been heralded as a sign that the crisis in residential real estate may be close to bottoming out, after the steepest price decline since at least 1890.

But nearly half of recent sales have been attributed to foreclosures or “short sales” at bargain-basement prices.

Agents, Learn how to easily list and sell Short Sales. Watch the FREE Agent Short Sale Secrets video…then download your FREE Agent Short Sale Secrets book.

The Center for Responsible Lending says foreclosures are on track to wipe out $502 billion in property values this year.

That spillover effect from foreclosures is one reason why Celia Chen of Moody’s Economy.com says nationwide home prices won’t regain the peak levels they reached in 2006 until 2020.

Realtors, are YOU ready to become a REO Listing Agent? Watch the FREE Agent REO Secrets video…then grab your FREE Agent REO Secrets book.

In states hardest-hit by the housing bust, like Florida and California, the rebound will take until 2030, Chen predicted.

“The default rates, the delinquency rates, are still rising,” Chen told Reuters. “Rising joblessness combined with a large degree of negative equity are going to cause foreclosures to increase,” she added.

Anyone doubting that the recovery in U.S. real estate prices will be long and hard should take a look at Japan, Chen said. Prices there are still off about 50 percent from the peak they hit 15 years ago.

Jay Brinkmann, chief economist with the Mortgage Bankers Association, said foreclosures are expected to peak in the second half of 2010. But that forecast is based on a projection that unemployment will begin falling after topping out “barely in double digits by the middle of next year.”

Last week the Labor Department reported the unemployment rate rose to a 26-year high of 9.8 percent in September, in the latest evidence that a turnaround in the jobs market is the missing link in the economic recovery.

Since the start of the recession, the number of unemployed people has soared 7.6 million to 15.1 million. In Florida, unemployment is hovering at a nearly 40-year high of 10.7 percent, led by a steep decline in construction jobs.

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