As you may recall we opened the doors for Agent REO Secrets
coaching program a couple weeks ago. We allowed 100 agents to
enroll during that teleconference.

Those 100 spots were grabbed almost instantly.

We received dozens of emails asking for us to provide another
*F-R-E-E* Agent REO Secrets teleseminar…

So, that is exactly what we are doing..

THIS WEDNESDAY July 23, 2008 you are invited to attend
Agent REO Secrets Teleseminar.

Go here now for all the call in info:

Important Link—> http://instantTeleseminar.com/?eventid=3522045

This is going to be another fantastic call.

We are interviewing 2 fellow agents who have become REO listing
machines…

1)  An agent from LA who just started listing REOs 3 months ago …
and he is now taking 4-6 new listings directly from REOs per week.
He is making more money and its taking 50% less time and effort.

2) You won’t believe our next agent expert’s REO experience…he is
listing 300 homes directly from ONE REO source this week. That is
not a typo…300 listings. You will learn exactly how he is doing
it…we are holding nothing back!

Your spot on this Wednesdays July 23rd Agent REO Secrets
teleconference has been reserved. Remember, this teleconference is
*F-R-E-E* to you.

Go to this link now for important call-in information:

Click This Link—> http://instantTeleseminar.com/?eventid=3522045

We only have 270 spots available for this teleconference. We have
had over 600 agents register (as of this morning) and are expecting
all the spots to be gone shortly.

You will want to call in (or log in using the webinar) at least 10
minutes early to be guaranteed your spot.

When you attend the event this Wednesday here are a few of the
things you will learn:

1)  How to contact the lenders…YES…we are giving out names and
numbers of the largest REO companies.
2) We will tell you exactly how to ‘present’ to the REO companies
so they will want to list their homes with you.
3) You will learn the 3 biggest mistakes you must avoid.
4) How to make money now from BPOs.

On this 90 minute call you will learn our proven step-by-step
process to becoming a REO listing agent. We aren’t holding anything
back on this call. Get ready to take pages of great notes.

Here is the best part about these 2 agents…neither had any REO
listings 90 days ago. They applied what they learned from Agent REO
Secrets and are now having their best years ever.

Here is that link again:
Last Chance—–> http://instantTeleseminar.com/?eventid=3522045

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

Speak with you soon!

Ron Caudle’s from Scottsdale Arizona.

One of the recent homework assignments with HREU Agent Tech Secrets coaching program was to create and post a YouTube video. Ron’s video was viewed more times than the other student videos on YouTube by a large margin. You can see the other videos on YouTube.com. Key word ‘HREU’ and ‘Harris Real Estate University’. So, Ron wins. Here is the video..

LISTEN NOW TO THE CALL REPLAY…90 Minutes of amazing info was shared on this call….MUST LISTEN

Hey,

Tomorrow is Super Star Interview Friday.

Remember, there is no charge when you

attend this teleconference (or webinar).

On the Super Star Interview tomorrow we will

interview a Harris Real Estate Univeristy student

who has become a true Real Estate Super Star.

Here is all the info you need to attend tomorrows call:

EVENT:  Super Star Interview
DATE & TIME: Friday, July 18th at 9:30am Pacific
FORMAT: Simulcast! (Attend via Phone or Webcast — it’s your choice)
TO ATTEND THIS EVENT, CLICK THIS LINK NOW…
http://instantTeleseminar.com/?eventid=3610875

Attention: HREU Students
This is a great article that was just released from Bloomberg.
Here are the important points:
1) Housing prices wont return to their peak values until 2015. That mean years of devaluing homes, flat to no appreciation…then slow reappreciation.
2) Other than the FHA (Fannie and Freddie) there are virtually no other lenders able or willing to originate loans. So, as we told you last year..become best friends with your local FHA lender.
3) The ‘move up’ market is very slow. Why? No equity in existing homes to use as downpayments.
4) Return to 20% down payments on homes. When Julie and I started selling homes most buyers had to put 10-20% down. During the peak of the bubble most buyers put no (or low) money down. Now, lenders require 20% down. How many buyers are out there with 20% down?
5) Retailers are failing right and left. Major stores closing.

Sounds all bad…almost scary doesn’t it?

Not if you are one of the agents who knows how to do short sales….or how to list REOs.
Clearly, that’s where this market is and will remain for years. Learn these skills and thrive in this market.

Learn these MUST KNOW skills now..that’s the best insurance policy for you in this market.

Get started now..
Download our Free Agent REO Secrets Guide Book. www.AgentREOSecrets.com

July 16 (Bloomberg) — The U.S. housing crisis may accomplish what years of parental hectoring couldn’t: Turn Americans from spenders into savers.

Spending will fall because homeowners can no longer use rising real estate values to borrow cash — $837.5 billion in 2006, according to a report by former Federal Reserve Chairman Alan Greenspan and senior Fed economist James Kennedy. With mortgage lenders requiring down payments of 20 percent, the average household, which puts away less than 1 percent of after- tax pay, will have to save 10 percent for 10 years to buy a home.

The housing market shaved almost 1.6 percent off gross domestic product growth in the first quarter and cut in half the growth rate of consumer spending, which accounts for more than two-thirds of the economy, said Mark Zandi, chief economist at Moody’s Economy.com in West Chester, Pennsylvania.

“The loss of housing wealth is the difference between a recessionary economy and a growing economy,” said Zandi, an adviser to presumptive Republican presidential nominee Senator John McCain. “Consumers have powered the global economy for the past 25 years. For the foreseeable future, maybe the next 25 years, the savings rate will move higher.”

The worst housing crisis in at least a quarter century still has a long way to go, Zandi said. It will take until 2015 for the median home price to return to its July 2006 peak of $230,200, while home sales and residential construction will never again reach the record highs of 2005 and 2006, he said.

Fewer Loans

Lenders will issue 53 percent fewer purchase mortgages this year than in 2006, making home sales difficult and delaying a housing recovery, said Guy Cecala, publisher of industry newsletter Inside Mortgage Finance in Bethesda, Maryland.

Getting a home loan may also be made more difficult by plummeting investor confidence in Fannie Mae and Freddie Mac, which own or guarantee 81 percent of the mortgages issued this year, according to the Washington-based Office of Federal Housing Enterprise Oversight.

Fannie Mae, the largest U.S. mortgage finance company, and Freddie Mac, the second-biggest, have both lost more than 50 percent of their market values since July 7.

“You’ve never seen the mortgage industry this passive in lending in the past 50 years,” Cecala said. “They don’t want any more missteps creating any more losses. The flip side is it’s not helping anybody stay in homes or buy homes. You can’t have a housing recovery without financing.”

`Painful Process’

The residential housing decline will “change the structure” of the U.S. economy by forcing Americans to save, said Neal Soss, chief economist at Credit Suisse Group in New York.

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“The days of wine and roses are over,” said Soss, who worked at the Federal Reserve for former Chairman Paul Volcker in the 1980s. “We were drunk on money. Getting sober is a painful process.”

Consumer spending, which rose 7.5 percent since the beginning of last year, will fall into negative territory after Americans run through their tax rebate checks this summer, said Bill Hampel, chief economist for the Madison, Wisconsin-based Credit Union National Association.

U.S. consumers spent at a record annual rate of $10.2 trillion in May, in part helped by the federal rebates, according to the Commerce Department. That won’t last, said Christopher Thornberg, president of Beacon Economics LLC in Los Angeles.

Delaying the Inevitable

“Throwing out a stimulus check does nothing but put off for a brief period of time the inevitable,” Thornberg said.

Two years ago, lenders made $2.7 trillion in mortgages, $600 billion to subprime borrowers with bad or spotty credit histories. Now, financial firms, responding to $415 billion of real estate-related writedowns and credit market losses, are forcing even the most creditworthy buyers to make higher down payments.

Sixty percent of lenders said they made it more difficult for the most qualified buyers to secure financing in the first quarter, according to a Federal Reserve survey.

“The mortgage industry always works like a pendulum,” said Rick Sharga, vice president for marketing at RealtyTrac Inc., an Irvine, California-based foreclosure database. “Two years ago they were giving loans to anyone who could fog a mirror. Now you need perfect credit and a significant down payment.”

Tougher Lending

Tougher lending guidelines are more prevalent in areas such as California and Florida where home prices have fallen the most, said Chris Hutchens, a mortgage planner with Alpha Mortgage Corp. in Wilmington, North Carolina. Loans with a 3 percent down payment from the Federal Housing Administration are available in his area, where home prices are more stable, he said.

“Banks are tighter than they were, so you have to work harder to get the loan you want,” Hutchens said. “It’s in the declining markets where it’s more difficult.”

As many as 500,000 borrowers will get FHA purchase mortgages or refinancings, U.S. Housing and Urban Development Secretary Steven Preston said in a July 10 Bloomberg Television interview.

Wanted: Realtors To List REOs Now. Instant Free Download,. Agent REO Secrets.

The bundling by banks of residential mortgages into securities that are sold to investors and are used to fund home loans was a $1.15 trillion market in 2006, according to Inside Mortgage Finance. In the first half of this year, banks issued $46 billion of the so-called private label securities.

`Big Sideshows’

“Housing and finance are big sideshows,” said Thornberg of Beacon Economics. “The main attraction is consumer spending.”

Saving enough money is the only thing stopping Nick Ruiz from buying a house. The 22-year-old paramedic said he has steady work, good credit and can verify his income. He’s even found foreclosed houses for sale in his price range in his hometown of Hialeah, Florida, a suburb 12 miles northwest of downtown Miami.

The only missing ingredient is the $30,000 down payment.

“I’m getting married in August and we wanted to have a house when we came back from the honeymoon,” Ruiz said. “We’ll have to live with my parents.”

Ruiz said he and his fianc e have credit card debt. Ruiz said he made a decision to postpone saving for a down payment until he can pay off the $12,000 he said he owes.

Rising Consumer Debt

“I figured it makes no sense to put money in the bank because no bank will give me the interest rate that these credit cards are charging,” Ruiz said.

Consumer debt was at an all-time high of $2.59 trillion in the first quarter, according to the Fed.

When real estate prices were rising, the debt was easier to pay down. Homeowners were able to refinance their mortgages and borrow cash equal to the difference between their old mortgages and the new, higher values of their houses. Mortgage debt, unlike credit card debt, is tax-deductible.

So-called equity extraction peaked at $256.9 billion in the second quarter of 2006, just as the median home price reached its all-time high of $230,200, according to the National Association of Realtors in Chicago. In the first quarter of 2008, with the median home price down to $200,100, equity extraction dropped 72 percent to $72.8 billion, according to an estimate based on the study by Greenspan and Kennedy.

Cautious Spending

More cautious spending by consumers has already begun to hurt the U.S. economy, said Patricia Edwards, who helps manage almost $15 billion at Wentworth Hauser & Violich in Seattle.

Retailers selling non-essential items to middle-income consumers, such as Sharper Image Corp., Lillian Vernon Corp., Linens ‘N Things Inc. and Whitehall Jewelers Holdings, were the first to suffer from the housing slump, Edwards said.

Macy’s Inc., J.C. Penney Co., Kohl’s Corp. and Dillard’s Inc. also are affected, Edwards said.

For companies such as Chico’s FAS Inc. and Coldwater Creek Inc., the main customers are women 45 years old and up, Edwards said. “If those women have a spending issue, their kids get clothes before they do,” she said.

The New York-based International Council of Shopping Centers expects 144,000 U.S. retail stores to close this year, a 7 percent rise over 2007 and the largest increase in 14 years, according to a July 11 report.

Wal-Mart Stores Inc. will do well because it has low prices and offers consumers a way to reduce their gas bills because they can buy most of their household items at one stop, Edwards said. The Bentonville, Arkansas-based company also generates about 20 percent of its revenue from overseas, and that’s “a fast growth area,” she said.

With less money available for homeowners to borrow and bigger down payments needed to buy a home, more companies will have to look outside the U.S. for customers, said Andrew Laperriere, managing director at International Strategy & Investment Group, a research firm in Washington.

“That process is already under way,” Laperriere said.

You have to watch this testimonial for HREU.

Thanks Kim and Kris.

Realtor coaching, real estate coaching, coaching for real estate agents, Realtor coaching classes, Tim and Julie Harris, Harris Real Estate University, Harris Realtor Coaching, Tim and Julie Realtor coaching.

READ NOW…New Short Sale Information…NEW LAW PASSED.

This new law is for California…however, this is a clear indication of what we should expect to happen across the US.

FORECLOSURE RELIEF BILL BECOMES LAW
This week, the State Legislature enacted foreclosure reform law to address the adverse effects of high foreclosure rates in California. The new law requires lenders to contact homeowners to explore options for avoiding foreclosure at least 30 days before filing a notice of default. It also requires owners acquiring property through foreclosure to maintain the exterior of vacant residential properties. The new law also extends from 30 to 60 days the time for residential tenants to move out of properties that have been foreclosed upon, unless other laws apply. These requirements will remain in effect until January 1, 2013. The full text of Senate Bill 1137.

Highlights of the new law are as follows:

- Contact Between Lender and Borrower: Effective on or about September 8, 2008, a lender, trustee, or authorized agent may not file a notice of default until 30 days after contacting a borrower to assess the borrower’s financial situation and explore options for avoiding foreclosure. A lender must generally contact the borrower in person or by telephone, or satisfy due diligence requirements for contacting a borrower. During the initial contact, the lender must inform the borrower of the right to request a meeting with the lender within 14 days. The lender must also give the borrower the toll-free number for finding a HUD-certified housing counseling agency. A subsequent notice of default must include the lender’s declaration that it has contacted the borrower, tried with due diligence to contact the borrower, or the borrower has surrendered the property. A lender who had already filed a notice of default before the enactment of this law must include a similar declaration in the notice of sale. This requirement to contact borrowers applies to loans secured by owner-occupied residences made from 2003 to 2007. Certain exemptions apply if the borrower has filed for bankruptcy, surrendered the property, or contracted with a person or entity whose primary business is advising people, who have decided to leave their homes, on how to extend the foreclosure process and avoid their contractual obligations.

- Maintenance of Vacant Properties: Effective July 8, 2008, anyone who acquires property through foreclosure must maintain the exterior of vacant residential property. Violations of this law include permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action against trespassers or squatters, failing to take action to prevent mosquitoes from breeding in standing water, or other public nuisances. This law authorizes a governmental entity to impose a civil fine up to $1,000 per day for any violation, as long as the owner has been given notice and an opportunity to remedy the violation. A violator must be given at least 14 days to begin, and 30 days to complete, such remediation before a fine can be assessed.

- 60-Day Notice to Terminate Tenants: Effective July 8, 2008, a tenant or subtenant in possession of a rental housing unit that has been sold through foreclosure is generally entitled to a 60-day written notice to quit, not just 30 days. However, a borrower who remains on the property after foreclosure may be served a three-day notice to terminate. This law does not affect, among other things, rent-controlled properties with just-cause evictions. Effective on or about September 8, 2008, the lender, trustee, or authorized agent posting a notice of sale must also post and mail a specified notice of a tenant’s right to a 60-day eviction notice from the new owner, unless other laws apply. This requirement to notify tenants of their rights applies to loans secured by residential real property where the borrower has a different billing address than the property address.

What does all of this mean to you as a Realtor…simple, learn how to do short sales. This new law CLEARLY indicates that the business will flow to the agents who know how to do short sales. Free 7 Part Agent Short Sale Secrets Crash Course. Download your free copy now. Go here now: www.AgentShortSaleSecrets.com

We had a GREAT Agent Short Sale Secrets teleconference today. We had many
requests for a replay of todays call…so, you asked and we deliver!

LISTEN NOW TO THE REPLAY:

http://instantTeleseminar.com/?eventid=3433341 <—LISTEN NOW

Nearly 500 fellow agents attended this ‘Sold Out’ teleconference. The secrets
that were shared will simply amaze you. Learn what you need to know NOW to
build a powerful short sale business.

We interviewed 2 Realtors who are selling dozens of short sales every month.
On this 90 minute call replay you will learn:

1) 5 Proven Techniques To Get Motivated Sellers To Call You Now. List Dozens Now.
2) How To Avoid The 3 Biggest Mistakes Agents Make When Doing Short Sales.
3) The Single Biggest Landmine You Must Avoid When Doing Short Sales.
4) How To Submit A Lender Approved Package..The First Time.
5) Create A Consistent Income From A Predictable Business.

Again, here is the replay of todays call:

http://instantTeleseminar.com/?eventid=3433341 <—IMPORTANT LINK.

Realtor coaching, real estate coaching, coaching for real estate agents, Realtor coaching classes, Tim and Julie Harris, Harris Real Estate University, Harris Realtor Coaching, Tim and Julie Realtor coaching.

There is a lot of misinformation concerning how a short sale or a foreclosure affects a FICO score. From our research the initial credit hit of a foreclosure and a shortsale are virtually the same. Credit experts report that there will be up to a 300 point credit hit when someone does a short sale or a foreclosure. However, the long term effects of either are radically different..

The main difference is how long the credit is damaged and if there will be any deficiency judgements.

Even well known financial experts like Suzy Ormond ( we love Suzy btw) are offering misinformation about this. I was watching her on Larry King just last night offering advice to a home owner who was upside down in their home….Suzy told her to “send the keys back to the lender”. She didn’t even mention doing a short sale. Nor did she explain the credit ramifications.

No wonder people are so confused.

Lets be clear about this next point. There are definite advantages to a short sale  but it has little to do with how many points a short sale will drop a FICO (in the short term) versus a foreclosure.

Realtors: Download Your Free 7 Part Agent Short Sale Secrets Crash Course Now. Free Download Now.

Unfortunately, in most communities, houses are over valued and markets will no longer support asking prices. There was a study released recently that reported that at least 50% of all homes in the US were ‘upside down’ or at least have no equity. Another report showed that there are  only three communities in the US that have rising appreciation, strong sales and few if any foreclosures. Did you read that…ONLY 3. In many cases the homeowner is unable to structure a workout or a forbearance agreement with the foreclosing lender. A short sale is the next best option.

Clear benefits of the short sale. (New Information)

Fannie Mae recently established a 2-year elapsed time period for reestablishing credit for homeowners who sell their homes through a short sale. Two years may seem like a long time to wait before being able to get a new loan, but compare this to what happens if the homeowner goes through the foreclosure process. According to the Fannie Mae guidelines, effective May 31, 2008, a homeowner who has filed a foreclosure will be “ineligible” for a loan for five years. (You can get a full report on the new guidelines on
www.TimandJulieHarris.com)

Again..this is a crucial point. Someone goes through foreclosure…no Fannie Mae backed mortgage for FIVE YEARS…in all reality that means that they will be renters for at least 5 years. To put his into perspective if someone has a bankruptcy they can’t buy for 7 years. This should tell you how much Fannie Mae prefers homeowners short selling over foreclosure.

Consider the fact that property values will most likely fall for the next 12-24 months anyway so, not being able to buy a home for 24 months really isn’t all that bad.

The other huge benefit of doing a short sale involves something called a deficiency judgment. When a house is sold at auction (foreclosure), the chances of the foreclosing lender filing a deficiency judgment increases dramatically.

How does this work?… , a deficiency judgment is obtained when a property is foreclosed and sold (usually at the courthouse by the clerk of the court) to the highest bidder. In most states a deficiency judgment can be obtained for the difference between the high bid and the higher foreclosure judgment amount. Usually the court determines which value is higher, the high bid or the appraised value of the property on the date of the public sale. The higher of the two is taken to determine the difference from the judgment amount, and this difference is the deficiency judgment (what was owed subtracted by the final sale price).

Deficiency judgments are just that: judgments. In other words, a debt that has to be paid. They are an albatross around the neck of the debtor and can only be removed by paying it off or by bankruptcy. Furthermore, deficiency judgments usually earn interest until paid.

If a homeowner has deficiency judgment, guess what? They won’t be able to buy anything using credit. New house? Forget it. New car? Nope!

In the past few deficiency judgments have been filed against foreclosing homeowners, that may change. Banks seldom enforce deficiency judgments, they sell the judgments for 5 to 10 cents on the dollar. Here’s the deal that the bank has to consider . . .for a $100,000 deficiency judgment they invest $500 in attorney fees and get $10,000 in return just for pushing paper. In other words, they get the judgement…then sell it to a 3rd party for 10% of the amount.

Free 7 Part Agent Short Sale Secrets Crash Course. Download Your Free Book Now.

Our short sale students know that they can negotiate an unsecured promissory notes.  Sometimes when the second lien holder won’t  release their lien in order for the short sale to close our students know how to structure an unsecured load for 10% or less of the amount. Usually at no or very low interest. The banks do the same thing –– getting 5 cents on the dollar.

Another point of consider, if the house goes into foreclosure and is taken back by the bank to be listed as an REO, the meter keeps running on the costs incurred by the bank until the REO dept. sells the house. This can make the deficiency huge. In other words, the former homeowner is on the hook for all the banks costs…not just the loss from the negative equity.

Realtors who know how to do short sales offer homeowners a way out. Whatever effect a short sale has versus a foreclosure on one’s FICO score pales in comparison to the long term harm of a deficiency judgment and the inability to be approved for a loan for years to come.

WANTED: Realtors to list REOs. Grab out newest book..Agent REO Secrets…NOW. Free Instant Download.

Realtor coaching, real estate coaching, coaching for real estate agents, Realtor coaching classes, Tim and Julie Harris, Harris Real Estate University, Harris Realtor Coaching, Tim and Julie Realtor coaching.