What will happen when the Fed pulls out the support for the mortgage markets..later this month?

That is one of the biggest ‘unknowns’ in the real estate industry.

Interesting points from this video:

* Home sales DOWN over 7%.

* Despite interest rates BELOW 5% demand is not increasing…why?

* Millions of homeowners are upside down and can’t move up…so interest rates don’t help those folks.

* Jumbo Loans are still VERY difficult to obtain. Lenders have to use their own money vs Fannie/ Freddie.

* Shadow inventory expected to hit the markets….5,000,000.

* Government programs are slowing the correction that must happen inorder for the housing market to completely ‘clear’.

Here is the video:

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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.

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Freddie Mac is buying back the loans they have sold off to investors…when the borrower has missed 4 payments.

Here is how the process traditionally works:

Home buyer needs a mortgage——-> Loan Officer who works for ABC Mortgage originates a Fannie Mae mortgage for buyer/ borrower. ——–> ABC Mortgage has to follow the Fannie Mae lending guidelines in order for the loan to be a Fannie Mae loan. ———-> ABC Mortgage originates and closes the loan for the buyer. ———> ABC Mortgage becomes the servicer for the new FHA Mortgage. They collect the payments etc. ————> Loan is sold off to the secondary market.

Obviously, this is an over simplification. But, this is the process. Now, the problem comes in when ABC Mortgage didn’t follow the FHA Lending guidelines and issued a mortgage to a borrower who didn’t truly qualify. If the loan goes bad (4 payments) because ABC Mortgage’s not following the rules…then the Fannie and Freddie will force the originator (ABC) to literally buy the loan back. Remember, this is a ‘non-performing’ loan…no money is being collected.

(Lenders, feel free to post comments if my details are wrong)

We have also heard that Fannie Mae has hired hundreds of new auditors to ‘audit’ mortgages originated over the last 3-5 years. When they discover the originator (as in the back that originated the loan….) issued a mortgage and didn’t follow the Fannie guidelines…the originator is going to be forced to buy back the loan.

Think about all of this for a moment….all the flaky origination that has happened over the last few years may result in the originating mortgage companies actually being forced to buy back the loan they sold to Fannie Mae! How many of these lenders can afford to cover these bad loans?

Here is the story from CNBC.com

Government controlled mortgage finance company Freddie Mac says it will buy back troubled loans contained in securities it has already sold to investors.

The McLean, VA-based company said Wednesday it would repurchase mortgage loans in which borrowers have missed at least four months of payments. It did not disclose how much it would spend.

Freddie Mac guarantees the mortgage securities it sells. The company said buying the delinquent loans back would cost less than making those guarantee payments.

Freddie Mac and sibling company Fannie Mae have been run under tight government oversight since they almost collapsed in September 2008. They have required $111 billion in federal aid to stay afloat.

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HREU Students…this is not new news to you.…we warned you this would happen……

…..coming soon to a FHA Mortgage Lender near you…NEW FHA Lending Standards, now MUCH tougher.

1) New MUCH tighter FHA Lending  Standards. The FHA has become the lender of last resort over the last few years…and now, they are going to start turning down more borrowers.

2) FHA trying to fight rising mortgage defaults.

3) Premium to 2.5%. Meaning, more money down from the borrower….unless the get the seller to contribute to their closing costs…

4) The seller can only contribute 3% of the sales price to the buyers closing costs…vs 6%.

5) Downpayment requirements…3.5% with 580 FICO and above

6) Less than a 580 credit score? 10% down. However, when you watch this CNBC video you will hear directly from the FHA commissioner on the fact that very few borrowers with low scores will get a FHA loan.

Here is the video:

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Here is a copy of an email that I just sent….in case you didn’t receive the email invite…here it is:

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 that is taking place 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: 1% [?]

Watch this video….THIS IS HUGE!

As we have been expecting to happen for well over a year…the powers that be are now ‘exploring’ reducing outstanding mortgage balances.

You read that right…..reducing the amount a homeowner actually OWES on their home! WOW!

Agents, what can you do to help these homeowners…what can you do now to make money? Earn your HREU CDPD, Certified Distressed Property Designation. Did you know that the guidelines for Short Sales have all changed….? Watch the videos we created for you that explain the New 2010 Treasury Department Guidelines. 2010 IS the year of the Short Sale.

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FINALLY, as we have been predicting for over 4 years…..

….everyone..the Government…the Banks….Real Estate Brokers…Homeowners…Agents… have finally accepted that Short Sales are the only real ’solution’ to avoid foreclosures.

The Obama Administration’s Treasury Department has instituted new 2010 Guidelines which WILL revolutionize the entire Short Sale business.

If you want to get into action, helping homeowners…and making a ton of money…you need to be listing and selling short sales.

As you know we have been offering short sale training for years and years now. We were the first national coaching company to teach agents how to do short sales…and we are by far the largest.  Thousands of  agents have received their HREU CDPD* (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here.

From Bloomberg News:

Banks are beginning to go along with short sales in increasing numbers, three years into a U.S. housing slump that pushed the economy into a recession and cut resale values by 30 percent from the peak in July 2006. Short sales almost tripled to 40,000 in the first six months of 2009 from the same period a year earlier. Yet for each short sale, there were 25 foreclosures started or completed in the first half of this year, according to data from the Office of Thrift Supervision and the Office of the Comptroller of the Currency.

Watch this video NOW so you are prepared for what is about to happen:

Part 1: 2010, Year Of The Short Sale: Treasury Department Guidelines.

Part 2 of the video Further Down On This Post.

“It’s really finally dawning on banks that they’re better off with a short sale,” said Richard Green, director of the Lusk Center for Real Estate at the University of Southern California in Los Angeles. “I think banks were in denial.”

Obama Pressure

Wells Fargo, Bank of America Corp. and JPMorgan Chase & Co. this year have hired and trained more staff, developed software systems for expediting short sales, and increased marketing of short sales to delinquent borrowers.

Banks are increasing such sales under pressure from the Obama administration and lawmakers who criticized them for favoring foreclosures and delaying short sales, Green said. Lenders and loan servicers also stand to receive up to $2,000 in incentives to close short sales under a Treasury Department plan unveiled Nov. 30.

DOWNLOAD Treasury Department plan NOW.

Loan Modifications

The first choice for lenders has been to try to keep borrowers in their homes, offering loan modifications as an alternative to foreclosure, Frantantoni said. More than half of the modifications of delinquent mortgages re-defaulted within a year, according to a Sept. 30 report by the Office of the Comptroller of the Currency.

“The single biggest problem was the lack of a vehicle or mechanism at most banks to handle short sales,” said Walter Molony, a National Association of Realtors spokesman. “You could say they were shortsighted in dealing with the problem.”

Pressure is building to approve short sales as the number of delinquent mortgages has grown to 3.2 million and an estimated 7 million foreclosures loom in the next two to three years, according to Irvine, California-based RealtyTrac Inc., which compiles and sells U.S. mortgage delinquency data.

Part 2: 2010 Treasury Department Guidelines.

Important Note: Don’t overpay for your Short Sale designation…you don’t have to spend $500-$600!

HREU has been offering short sale training for years and years now. We were the first national coaching company to teach agents how to do short sales…and we are by far the largest.  Thousands of  agents have received their HREU CDPD* (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here.

New Treasury Department guidelines for foreclosure alternatives scheduled to take effect in April 2010 will require lenders to consider borrowers for a short sale on their primary residence 30 days after missing two consecutive payments on a modified loan or after the borrower requests a short sale.

Treasury Plan

The Treasury Department would pay up to $1,500 for a homeowner to relocate, $1,000 to loan servicing companies that accept a sale and a maximum of $1,000 to help settle a second mortgage or subordinate lien. A lender must agree to release the borrower from all liability for repayment for the mortgage, under the Treasury plan.

In July, Wells Fargo began mailing notices to delinquent borrowers advising them that short sales might be an option to avoid foreclosure.

“When we determine that a loan is not affordable for the customer — either because a modification was denied or failed – - we obtain the value of the property, run it through our loan decision tool and then send a letter to the customer advising them of our short sale program, including the short sale price we are willing to take on the property,” Debora Blume, a spokeswoman for Wells Fargo Home Mortgage said in an e-mail.

Agents…did you read that…PREAPPROVED SHORTSALES….learn how to get on the banks lists to have them refer those listings to YOU!

Thousands of  agents have received their HREU CDPD* (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here.

‘Pick a Pay Loans’

Wells Fargo is focusing on delinquent borrowers in Florida and California homeowners with “Pick-a-Pay” loans originated by Wachovia Corp., Blume said. Wells Fargo acquired Wachovia in December 2008 and owns the “Pick-a-Pay” loans outright, said J.K. Huey, the bank’s senior vice president overseeing short sales and bank-owned properties. That allows the company to approve a short sale without consulting investors or parties that can hold up transactions.

“Pick-a-Pay” mortgages have among the highest rates of negative equity, because borrowers could select their monthly payments, often paying less than the interest, with the difference added to the principal. That formula means that total loan debt was increasing at a time property values were falling.

Wells Fargo held $87.8 billion of such loans as of Sept. 30, down $7.5 billion from the end of last year. Wells Fargo Chief Financial Officer Howard Atkins said on an Oct. 21 earnings call that the bank is reducing the number of loans with “negative amortization potential.” As of the end of the third quarter, 26 percent of the loans in that portfolio now have minimum monthly payments that fully cover the interest due so that the total principal does not grow, up from 16 percent at the end of last year.

As of Sept. 30, Wells Fargo had modified 43,500, or 22 percent, of the distressed loans to reduce borrowers’ payments, Atkins said.

Reaching Out

JPMorgan doubled the number of staff trained to handle short sales after adding 5,000 people since Jan. 1 to deal with distressed mortgages, said Thomas Kelly, a spokesman for the New York-based bank’s home lending division.

Chase services 10.3 million mortgages worth $1.4 trillion, according to Kelly. Of its portfolio, Chase reported 422,000 loans more than 60 days delinquent, about one third of which were in loan modification programs, according to a Nov. 10 Treasury Department report on the Obama administration’s Making Home Affordable Program.

“We’re reaching out to people who are struggling with the Obama loan modifications or our own,” Kelly said. “Approaching customers is a very recent phenomenon.”

Bank of America, the nation’s largest loan servicer, had one of the lowest loan modification rates, with 14 percent of problem loans in trial workout plans as of Oct. 31, according to the Obama Administration.

The Charlotte, North Carolina-based bank started a “cooperative short sales” program in October and may close its first short sale through the program this month, said Dave Sunlin, senior vice president for foreclosure and real estate management.

Pay-Option Mortgages

Many are borrowers with pay-option adjustable-rate mortgages issued by Countrywide Financial Corp., Sunlin said. BofA bought Countrywide, once the nation’s largest mortgage originator, for $4 billion in stock in 2008.

Short sales benefit a neighborhood because they clear out stagnant properties that may have an adverse effect on values, said Sean Shallis, a senior real estate strategist with Weichert Realtors in Hoboken, New Jersey. Shallis has one home with bank approval for a short sale and three others waiting approval on the same street in Jersey City with views of the Manhattan skyline.

“In every case we had multiple offers from people who had plenty of money to put down,” Shallis said. “Americans are out there still buying homes and trying to move it along.”

Cutting Losses

Short sales also help the bank, because foreclosed properties lose more value when they are vacant or a homeowner vandalizes a house on the way out, Sunlin said.

“We typically expect a 10 to 15 percent decrease of loss severity with a short sale,” Sunlin said.

Agents….thats one of the many reasons BANKS want you to do short sales…the lose less. At this point there is no doubt in your mind that 2010 IS the year of the Short Sale. The only question now…how will you benefit? SImple, learn how to be a HREU CDPD…

We were the first national coaching company to teach agents how to do short sales…and we are by far the largest.  Thousands of  agents have received their HREU CDPD* (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here.

Losses on prime loans going through the foreclosure process averaged 49 percent versus 34 percent for a short sale as of Oct. 1, according to a Nov. 10 report by Laurie S. Goodman, senior managing director of Amherst Securities Group LP. For subprime loans, losses averaged 73 percent for a foreclosure compared with 59 percent for a short sale, Amherst reported.

“The loss severity of short sales is lower but it’s not low,” Goodman said.

* ‘HREU CDPD’ is in no way affiliated with CDPE.

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