Realtor Coaching & Training: HREU
This is an updated Credit Suisse chart of the number of mortgages that have reset dates in the near future…
Why do you care about this?
Simple. Many of those homeowners won’t be able to refinance. Their homes are far too underwater and no government intervention is going to help. These homeowners will be short sales listings..or REO listings. You need to get your mind around the massive number of homeowners that will be facing this problem in the very near future.
Most of the resets are expected to occur through 2012. Between 2010 and 2012, the chart indicates that $253.25 billion of option ARMs will adjust, while Alt-A loans totaling $163.71 billion will reset over that time. Altogether, $1.010 trillion worth of ARMs will reset or recast during the three-year period.
An interesting short term delay in the surge of option arm defaults is due to the artificially low interest rates. Thus, when the resets kicked in the house payments didn’t increase. But, what happens when interest rates DO increase…as is expected to happen soon?
Defaults. In the form of strategic defaults and foreclosures. Even IF the homeowner can re-fi..what are the chances that they will be able to afford their new house payment with the increased interest rate.
Currently its estimated that there are around 5 million homeowners who are in some form of default. Lets assume that HAMP (Home Affordable Modification Program) ’saves’ a percent of these homeowners…that still leaves literally millions of homes that must be sold. According to Credit Suisse there will be around 10,000,000 foreclosures over a 5 years period (starting in 2008).
Bottom line, this market is the new normal. Short Sales, Underwater Homeowners, REOs…low (to no) appreciation rates dominate the real estate markets for years to come.
Popularity: 2% [?]
As Promised, here is the email that I sent to all Harris Real Estate University students earlier today….join us for this weeks HREU RSD Agent REO Secrets FREE event!
Hello,
Tim Harris here…
You are serious about taking REO listings…right?
Of course you are…
After all, everyone knows that REO listings are the listings to have in this market. Take a look around your market. Who are the top producers…the agents raking in all the dough?
The agents with the REO Listings.
Go here now for all the call-in info for this Thursday March 4th how-to list REOs Event:
Important Link—> Agent REO Secrets Event Info
Now, the real question is…How do YOU become an REO Listing Agent?
Here’s how…
Several months ago we held the *F-R-E-E* Harris Real Estate University Agent REO Secrets teleconference….As we expected, that call was completely full.
This is the intense live 90 minute teleconference (or webinar) where you get direct access to all the secrets you must have to get started in the make-money-now business of bank owned homes, REOs.
On the last call we announced that we were closing the doors for the Agent REO Secrets class……for at least 90 days…
….and that is exactly what we have done.
Unless you contacted us directly….you couldn’t enroll in the class..
Here is what happened…we received many requests from agents who missed the last REO Secrets Event….They were all asking (make that demanding) that we provide another FR-EE Event…
So, that’s what we are going to do…..THIS THURSDAY March 4th….
We are setting aside 500 spots for this week’s Agent REO Secrets teleconference (or webinar). I suspect that (like the call before) all of these spots will be taken….
In other words, we have limited space and it’s first come…first served. (Call in or log-in at least 10 mins early)
Here is the information for the call..
THIS THURSDAY March 4th, 2009 you are invited to attend the Agent REO Secrets Teleseminar.
Go here now for all the call in info:
Important Link—> How-to list REOs Teleconference
This is going to be another fantastic call. You will get direct take-action-now access to real agents who are making real money listing and selling REOs….
We are interviewing 3 fellow Realtors who have become REO listing machines…
1) An agent from the Midwest who is listing REOs like a mad man…He is now taking 4-6 new listings directly from REOs per week……making more money and its taking 50% less time and effort. Last year alone he sold 144 homes…90% REOs!
2) You won’t believe our next agent expert’s REO experience…he is listing dozens of homes directly from 5 REO sources this month. That is not a typo…20+ listings. You will learn exactly how he is doing it…we are holding nothing back!
3) As promised we will also interview an agent from California…Jennifer. She is making a fortune doing…BPOs. Matter of fact, she has been averaging well over $10,000 per month…from BPOs!
Your spot on this THURSDAY’s March 4th Agent REO Secrets teleconference has been reserved. Remember, this teleconference is no cost to you.
Go to this link now for important call-in information:
Important Link—> Agent REO Secrets, List REOs Event Info
Remember, we only have 500 spots available for this teleconference.
Once those ’seats’ are taken..they are gone.
To guarantee your seat… here is what you need to do…
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 THURSDAY 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 at all costs.
4) How to make money now from BPOs.
5) Here is a new topic…IF you have REO listings we will tell you the top 3 reasons you will lose those listings…YES, the banks are pulling listings…you must know these 3 crucial mistakes to avoid.
On this 90 minute call you will learn our proven step-by-step process to becoming an 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 3 agents…none of them had any REO listings 6-12 months ago. They applied what they learned from Agent REO Secrets and are now having their best years ever.
Go here now for all the call in info:
Important Link—> How-To List REOs Teleconference (or Webinar) Info.
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!
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 REO
listings explosion taking place right now.
P.P.S. This call is taking place at 12:00 pm PST, 1:00 pm MTN,
2:00pm CTR, 3 pm EST.
Popularity: 2% [?]
URGENT BREAKING NEWS:
Harris Real Estate University Students…and future students. THIS IS POTENTIALLY HUGE NEWS.
President Obama is considering forcing ALL lenders to stop ALL foreclosures!
His goal maybe to literally force every distressed homeowner (and their lender) to attempt a loan mod using the governments HAMP Program. We can assume that once the borrower chooses not to do a mod (or doesn’t qualify for a mod) they will then be pushed to the HAFA program. Remember, the HAFA program is all about SHORT SALES (or deeds in lieu of foreclosure).
What effect will this have on REOs? Virtually none. Why? Because of the sheer number of homes that are already in the foreclosure pipeline. Any temporary moratorium would be just that…temporary. So, REO Listing Agents…you need to prepare for a years of REO listings to come. If you would like to learn how to become a REO Listing Agent..watch this video and grab your FREE How to list REOs book.
Obviously, the Obama Administration is watching the dramatically increasing foreclosure rates….and will do something more radical to attempt to slow the rate of folks losing their homes.
Bottom line…AGENTS…please be 100% clear about this. 2010 IS the Year of the Short Sale. It NOT too late for you to learn the new ways to do short sales. Earn your HREU CDPD (Certified Distressed Property Designation). Watch the FREE Agent Short Sale Secrets video now…and download your FREE Short Sale guide book.
Believe me, we will be watching this emerging story 24/7. If any new news breaks…we will let you know.
Here is the story from Bloomberg.
The Obama administration may expand efforts to ease the housing crisis by banning all foreclosures on home loans unless they have been screened and rejected by the government’s Home Affordable Modification Program.
The proposal, reviewed by lenders last week on a White House conference call, “prohibits referral to foreclosure until borrower is evaluated and found ineligible for HAMP or reasonable contact efforts have failed,” according to a Treasury Department document outlining the plan.
“It is one of the many ideas under consideration in the administration’s ongoing housing stabilization efforts,” Treasury spokeswoman Meg Reilly said in an e-mail. “This proposal has not been approved and there are no immediate planned announcements on the issue.”
She confirmed the authenticity of the document, which hasn’t been made public.
At present, lenders can initiate foreclosure proceedings on any loan that hasn’t been submitted for HAMP eligibility. Under current HAMP rules, foreclosure litigation can proceed while borrowers are under review for the program or even in a trial modification.
The proposed changes would prohibit lenders from initiating new foreclosure actions before loan screening by HAMP and would require lenders to halt existing proceedings for borrowers once they are in a trial repayment plan.
‘Improved Protections’
The Treasury Department will soon release guidance “which will include a set of improved protections for borrowers” in HAMP, Phyllis Caldwell, chief of Treasury’s Homeownership Preservation Office, said today in testimony prepared for a House Oversight and Government Reform subcommittee. She didn’t provide details.
Earn your HREU CDPD (Certified Distressed Property Designation). Watch the FREE Agent Short Sale Secrets video now…and download your FREE Short Sale guide book.
The proposal goes further than rules adopted amid the crisis by federally controlled mortgage-finance companies Freddie Mac and Fannie Mae, which require lenders to review borrowers for a federal loan modification before a foreclosed property can be sold.
Foreclosure proceedings can still be initiated without a review, said Freddie Mac spokesman Doug Duvall. Fannie Mae spokeswoman Amy Bonitatibus said it adopted the same policy last March.
About 89 percent of outstanding residential mortgage loans are covered by the voluntary HAMP program.
About 2.82 million U.S. homeowners lost properties to foreclosure last year and 4.5 million filings are expected in 2010, RealtyTrac Inc., an Irvine, California data company, said last month.
Seven Million
Obama’s foreclosure prevention initiative, announced in February 2009 to help as many as 4 million Americans avert foreclosure, has modified 116,297 loans through steps such as lowering interest rates or lengthening repayment terms. More than 830,000 borrowers received trial repayment plans through January, according to Treasury data.
“Foreclosure processes differ among states, and the process is often confusing to homeowners already facing distress,” Caldwell said in her prepared testimony. “Treasury has been reviewing guidelines around outreach and the foreclosure process as part of its continual assessment of program effectiveness and transparency.”
Foreclosures may reach as many as 7 million mortgages, and an additional 5 million are at risk of default because borrowers owe more than the property is worth, Laurie Goodman, senior managing director at Amherst Securities Group LP in New York, said in a Feb. 17 interview.
Republican Criticism
“This is a problem of mammoth proportions,” Goodman said. “You can’t throw 12 million people out of their homes, so you need a successful modification program. My fear is that this isn’t it, but I’m highly confident that the administration will continue to iterate until they succeed.”
The Treasury proposal would require all borrowers who are 60 or more days delinquent on their mortgage to be sought out for participation in HAMP. Mortgage companies would need to try to contact the borrower at least four times by phone and twice by certified mail over 30 or more days before going to foreclosure.
Under current Treasury policy, foreclosure proceedings are only halted when a borrower receives a permanent modification plan.
Earn your HREU CDPD (Certified Distressed Property Designation). Watch the FREE Agent Short Sale Secrets video now…and download your FREE Short Sale guide book.
House Republicans criticized HAMP as a failure today, saying in a report that it is prolonging the economic crisis and harming homeowners.
“By every empirical measure, HAMP has failed,” according to the 18-page report released by Republicans on the House Oversight and Government Reform Committee. “In its current form, HAMP both hurts homeowners who might otherwise spend their trial-period mortgage payments on rent and also distorts the housing market, delaying any recovery.”
Popularity: 5% [?]
UPDATE: Listen to the FREE Replay Of This AMAZING CALL NOW. <—–CLICK HERE NOW!
I have to admit, I am excited about this weeks HREU Superstar Interview.
In the real estate world, Sean O’ Toole is a bit if a celebrity. You may remember Sean from his contribution to the 60 Minutes News story about housing, featured on this blog.
Join us for tomorrow’s FREE Superstar interview. Listen in as we ask Sean what you need to know about what is coming next for housing. If someone knows, its Sean.
Here is the link you need to attend tomorrow’s event:
Harris Real Estate University Exclusive Superstar Interview With ForeclosureRadar CEO Sean O’ Toole. <—-CLICK HERE NOW.
Here is a little background about Sean and his company, Foreclosureradar.com
Sean nearly lost his first home to foreclosure twenty years ago. With the help of a local Realtor, he was able to negotiate a short sale with the lender and move on. Years later, after a successful career as a Silicon Valley entrepreneur and executive, Sean returned to the foreclosure market — as an investor. It did not take him long to realize that the foreclosure data and tools he was forced to rely upon were sorely lacking. In purchasing more than 150 foreclosures, it also became clear to Sean that the marketplace itself was deeply fragmented in ways that harmed both consumers and real estate service providers. So he pulled together a development team from his days in technology and got to work.
Just so you know that we are not messing around on tomorrow’s interview…here are the questions we have prepared:
1. How bad is it going to get…lets bottom line it…how much worse will the real estate market become in terms of foreclosures?
2. How much more property value loss are you anticipating.
3. Are there any markets that are actually Appreciating now?
4. Will there be a ‘bottom’ in home values…as in a month (some are calling 2010 Q4 the hard bottom, for example)…or will the market go through a slow processing of ‘bottoming’ taking perhaps years?
5. Do you think there has been a fundamental shift in the way Americans think about housing?
6. Is ‘owning a home’ going to be so hardwired into the American psyche as a rite of passage going forward or will homeownership be considered optional as folks accept being long term renters? (like most of the rest of the world)
Harris Real Estate University Exclusive Superstar Interview With ForeclosureRadar CEO Sean O’ Toole. <—-CLICK HERE NOW.
7. Housing trends…we reported on the blog the other day that a new housing trend is multi-generational housing…are you seeing any other trends?
8. What is happening in housing now…that will surprise the market. IS there any under reported real estate news that you want to let the market know about?
9. How many more years of this type of market will be have…is this the new normal?
10. Ok, hard question…lets talk about strategic foreclosures. We have been reporting on this since 2007…now doing a SF seems to becoming almost viral…so…how big will this become…are the banks preparing for this?
11. In terms of numbers, how many homes (on the high end) are projected to go into foreclosure (assuming they don’t sell via a short sale first?)
12. With that many foreclosures…when will home values re-appreciate to 2006-2007 values?
13. Is it likely that some homes will never be worth what they were at the peak of the bubble?
14. Lets chat about housing trends. McMansions…the big subdivision homes….demographically speaking…who is going to buy them?
15. Lets talk about short sales…we have seen that the major REO conventions rebranding themselves around short sales…how significant will short sales be here forward?
16. What do you think of the new HAFA program from the Treasury Department?
17. So, clearly the market is all about working with distressed homeowners…lets talk about how Foreclosureradar Fits in. What do you guys do?
18. How can an agent use your service?
Harris Real Estate University Exclusive Superstar Interview With ForeclosureRadar CEO Sean O’ Toole. <—-CLICK HERE NOW.
Popularity: 3% [?]
How much underwater does a homeowner have to be before they walk?
In other words…is there a magic number…a number that once reached triggers a strategic default or ‘walk-away’?
Turns out there is.
That number is $70,000 or 25%.
From Diana Olicks blog:
With more and more evidence of more and more borrowers walking away from their mortgage commitments due to overwhelming negative equity, I got to thinking: What exactly is the monetary tipping point for a homeowner, someone occupying the home, hanging pictures on the walls, perhaps raising their kids in the second and third bedrooms, going to the neighborhood block parties…what exactly is the negative equity number that makes them say, “We’re outta here.”
Negative $70,000.
At least according to First American Core Logic. FACL put out its quarterly negative equity report today, showing that the number of “underwater” loans is rising, from 10.7 million in Q3 to 11.3 million in Q4 or 24 percent of all borrowers from 23 percent.
What interested me was a paragraph lower down in the report:
“The rise in negative equity is closely tied to increases in pre-foreclosure activity and is a major factor in changing homeowner default behavior. Once negative equity exceeds 25 percent, or the mortgage balance is $70,000 higher than the current property values, owners begin to default with the same propensity as investors.”
This behavior is apparently measured by the actual data, that is, the default rates of investors vs.. owners and comparing that to loan-to-value ratios.
Agents, don’t think for a second that homeowners doing strategic defaults is going to be a short term problem.
The mortgage industry/ mortgage lenders are living in fear that this trend will become viral. For example, if you hear your neighbor is doing a strategic default you will at least consider doing one yourself.
We are not advocating agents telling their homeowners to strategically default. We ARE advocating agents leaning how to help homeowners who choose to strategically default to short sale vs allowing the home to go into foreclosure. The advantages to the homeowners for doing a short sale massively out weigh a foreclosure….The New Treasury Departments HAFA Guidelines that take effect April 5th will be the next step in streamlining the short sale process.
Bottom line…
Learn how to become a HREU CDPD (Certified Distressed Property Designation) agent. Watch the FREE Agent Short Sale Secrets video and grab your FREE Agent Short Sale Secrets book.
I asked for a little deeper explanation from their economist, Mark Fleming.
“The closing of the gap between owners and investors represents the change in owners behavior because up to that point investors default at higher rates, but beyond that point owners propensity to default increases to nearly match that of investors. It’s not necessarily strategic default – I don’t even like that term because it can’t be identified – but I would characterize it as the behavior becoming more rational or calculating. Put another way, when someone is 25% or on average $70k in the hole, they know they will not climb out of that hole for some time and they figure that they can default and repair their damaged credit while saving money faster than they can ride out the price recovery.”
Popularity: 3% [?]
More on the just released Case Shiller Home Price Index:
* US Home Prices have been rebounding since April 2009.
* Shadow Inventory…bank owned homes….are going to be a huge problem.
* Many buyers entering the market now because many people simply…feel better…more confident.
* Dr. Shiller thinks the banks Shadow Inventory could reverse the positive trend and there will be another 10% of home value loss in the next 24 months.
Agents, read this post about how to become a REO Listing Agent:
Popularity: 2% [?]
ExcellentREO is selecting their Asset listing agents…we have been hearing from Harris Real Estate University students for the last 2 days thanking us for helping them to become ExcellentREO Listing Agents.
Congratulations to all of you
If you were not selected…or would like to become a REO Listing Agent do this now:
1) Enroll Now with Harris Real Estate University to earn your RSD (REO Specialist Designation) <—–Enroll NOW, List REOs.
2) Listen to the exclusive HREU Interview we did with the President of ExcellenREO. <——–Listen NOW, Free Cary Sternberg Interview replay.
Congratulations HRC Agent! You are receiving this notice because you have been selected to partner with Excellen REO based on your efforts with Titanium Solutions and experience with REO properties. In order to assist you in making your decision, we have outlined a few major topics below and included an attached “Broker REO Assignment Guidelines” document which details our expectations during the life cycle of each asset. This information should answer many of your questions and help you make a decision to join Excellen REO or not. You will receive a second email shortly with a personal link to update us on your decision and to submit questions and comments. We hope you decide to join Excellen REO as a listing agent but due to the nature of our business, we cannot guarantee you will receive any listings.
RES.Net
RES.Net has been selected as Excellen REO’s primary platform. In order to receive REO assignments (when they become available) from Excellen, you must be signed up with RES.Net. There is a $250.00 a year fee for basic RES.Net membership which is all that we require. The upgraded AMP membership is preferred but is not required. An AMP approved agent will receive priority over an approved Basic Agent. RES.Net offers a 5-Star certification training program and all agents are strongly encouraged to complete. Signing up with RES.Net does NOT Guarantee any assignments from Excellen. However, being signed up with RES.Net means that you are at least qualified to receive assignments from us as well as other servicers and outsourcers that use RES.Net.
Education
In addition to your RES.Net membership and training, you will be required to complete two online real estate training courses at Default Resource, www.defaultschool.com : REO Best Practices and Advanced Evaluations. These courses are $249.00 each and must be completed with a minimum score of 80 within 30 days of receiving your first assignment. After completion, you will receive the RDCPro designation which will satisfy our requirements, and you will be added to Default School’s database of graduates for all of their clients to access on a daily basis.
Agent Compensation
A 6% commission will be paid on closed sales or a $2,000.00 minimum fee. If there is a co-broke situation, the 6 % commission will be split equally. Listings agents will in turn pay Excellen REO a case management fee equal to 1% of the sales price or $350.00 if the minimum fee is earned.
Marketing Strategies for Assets
Agents sign a 90-day listing agreement with Excellen REO. If property is not under contract within 90 days, the agent submits a 30-day quick-sale price. If this suggested price is more than 20% deviation from the original list price, a third-party reconciliation will be completed to determine the new quick-sale list price. Agents will sign a 2nd listing agreement for 30 Days at the new quick-sale price. At the same time, Excellen will notify our auction company that this asset may become theirs to sell if it is not under contract within 30 days. If the agent is unable to negotiate a sale for the asset by the 120-day mark, the listing with Excellen REO will terminate. Agents will not be paid a commission for assets sold at auction unless they have been engaged by the auction company to assist them, and any commission paid will be between the agent and the auction company.
Property Preservation Companies
Excellen REO has contracted with two national property preservation firms to manage repairs and maintenance of our assets. They will activate utilities, perform a list of initial services to bring the asset to marketable condition, and perform recurring services throughout the listing agreement to make sure the asset is maintained. The listing agent will rarely have any out-of-pocket expenses for the asset other than the usual marketing and listings costs. Please note that some clients may not permit us to use national preservation companies and will ask that the agent take on those tasks normally performed by the PP companies. In those cases the agent will be responsible for paying the contractors and billing the client or Excellen REO depending upon the assignment. If you are unable or unwilling to make that commitment, please advise the asset manager and the property will be re-assigned.
Frequently Asked Questions
o How many assets can an agent be assigned to at any given time?
§ 20, unless special circumstances exist
o Where will my property assignments be located?
§ Assets may be assigned to agents whose service address (home or office) is within 15 miles of the asset.
o When can I expect to start receiving listings from Excellen?
§ We are expecting our first portfolio in the near future. How many assignments you might receive from Excellen depends upon who we service for and where their assets are located.
§ If there is more than one approved agent in a market area, the assignments will be made on a rotating basis. When it appears that any agent(s) might exceed the 20 asset limit, we will recruit additional agents that meet our qualifications
o Can I work with an REO Team to manage my listings or do I have to personally perform all of the services?
§ Yes, you can work as a team but as the listing agent, we expect you to be completely up to speed on every asset and able to answer any questions that may arise from our asset managers on a moment’s notice. We have listed the property with you and not your team, so it is critical that you are our expert on the property.
Other Requirements
o Agents must have a digital camera with the ability to upload photographs
o Agent must have scanning and email capabilities
o Agent must have office or cell phone with detail message capability, preferably text and email
Please respond within the next 48 hours to let us know if you wish to partner with Excellen REO. If you decide to decline, we can assure you that it will not affect your relationship with Titanium Solutions and future HRC assignments.
Thank You
If you weren’t selected…read this:
Dear HRC – Last month when we put out our initial survey for HRC’s to indicate an interest in becoming an REO agent for Excellen REO we received over 5,000 responses. After the initial survey was closed we received another 1,000 or so inquires.
Our Vendor Relations Department headed by Ashley Ackerman has been working diligently to review each application. From the initial inquires of over 6,000 agents we have narrowed down the field to approximately 1,100 agents who have or will be receiving email communication regarding their selection TODAY! Congratulations to all those selected. Please follow the directions on the email to complete the process and welcome aboard.
If you did not receive an email today from Mr. Ackerman it means that you were not included in the first round selection process. It does not mean that you did anything wrong or that you do not have a chance to become an REO agent for Excellen. It just means not today. We have a number of areas throughout the country and you can imagine which ones they are, where we have dozens of HRC’s who are both qualified and interested in becoming an REO agent for Excellen. We have initially limited selection to 5-7 brokers maximum per market. Once we start taking in assets and assigning them out, if we find that we need additional agents in any areas we will immediately go back to our list and notify the next in line.
Selections were based on the following criteria in their order of importance. Length of time as an HRC. Number of assignments as an HRC. Recent past REO listing experience. Present REO listing and sales experience. Current REO listing inventory. RESNET AMP member. RESNET basic member. Default School certification. REO Association affiliation.
If you are a loyal HRC but were not selected in the initial round, please understand that you could be called into action by Excellen at any time and we look forward to having enough business to give everyone interested a chance to work with us.
I am sorry that Ashley and I cannot talk with each of you but the numbers are just too great. Please do not call or email to find out if you are on the initial list and if not, why not. As soon as we have additional openings we will be in touch.
We thank you for your service to Titanium Solutions and you interest in working with Excellen REO. We will be in touch.
Thank You
Cary B Sternberg
President, Excellen REO
Popularity: 3% [?]
