Realtor Coaching & Training: Mortgage Bankers Association
Harris Real Estate University students have been aware of the consumer shift away from the so-called McMansions.
The homes that were built by the now aging baby boomers. Status oriented homes that often had 5+ bedrooms and 3000+ square feet. HREU Students who are doing short sales know that a majority of their new short sale listings are these types of homes as downsizing boomers discover they have few options.
Agents, 2010 IS the year of the short sale. New Treasury Department Guidelines take place April 5th. Are you ready for the massive expected increase in short sales? Learn the new ways to list and sell short sales. Earn your HREU CDPD. Watch the FREE Agent Short Sale Secrets video and grab your FREE Short Sale Secrets book NOW.
The glut of unsold McMansions will certainly force a massive continued drop in property values. This will lead to more owners of these luxury homes to be underwater with few alternatives (if they have to sell) other than foreclosure or short sale. Refinancing isn’t an option. Millions of these homes were purchased in the last 5 years using the ARMs. Once those mortgages reset and interest rates rise….the inevitable churning of foreclosures continues.
There is a shift occurring in the housing demands of young professionals away from suburban lifestyles and a renewed interest in urban living, said keynote speaker Carol Coletta, president and CEO of CEOs for Cities, speaking at the 11th Annual North Texas Housing Summit, hosted by the Federal Reserve Bank of Dallas. The firm’s national network of urban leaders specialize in identifying trends for metropolitan development.
Colletta’s assertions at the event included:
- College graduates are a city’s primary economic driver
- Younger generations continue to desire to live in urban, inner city communities, creating communities with a more diverse income spectrum, creating neighborhood stability.
- Stability doesn’t necessarily come in the form of homeownership, because the financial and banking systems haven’t caught up to what consumers and citizens want out of their housing options.
- The millennial generation is more likely to want to rent or own urban apartments and condominiums rather than single-family houses.
Timothy Bray, director of the Institute for Urban Policy Research at the University of Texas at Dallas, said multi-family and mixed-use developments built near employments centers enable potential buyers to spend less on commuting, thereby releasing more disposable income. Fort Worth Mayor Mike Moncrief added that their city planners are demanding more out of developers who want to do business in the city.
CEOs for Cities is a national cross-sector network of urban leaders from the civic, business, academic and philanthropic sectors dedicated to building and sustaining American cities.
Source: HousingZone.com
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What is the state of the housing recovery?
A sharp drop in pending home sales for January is the latest in a string of reports calling into question the health of the housing recovery.
The housing recovery is “in a precarious state,” says Robert Shiller, Yale professor, author and co-creator of the S&P Case-Shiller Index, taking a much more pessimistic view vs. his comments here last July.
Shiller’s eponymous index, which has risen for seven straight months through December, “shows some weakening of the upward burst” from last year, but is still going up on a seasonally-adjusted basis, the professor says. “If I were to forecast based on my usual models of years ago I would think we’ve turned a corner, we’ve bottomed and we’re turning up.”
But that’s a very big “if” and Shiller says there are reasons to wonder whether this time is different, or certainly to be worried about the sustainability of housing’s recovery:
* — Only the Shadow Knows: Housing experts say there’s anywhere from 2 to 5 million homes ready to come on the market, due to pending foreclosure. How soon…this year and into next year. This DOES NOT include the up to 15,000,000 other homes that may go into foreclosure over the next few years.
Do YOU think its too late for you to become a REO Listing Agent…and make money from BPOs? Its not. The banks are boiling over with REOs. Watch the FREE Agent REO Secrets video now…and download the new 2010 REO Secrets book. Free List of Asset Managers and other info you need know to cash in on the explosion of REO Listings!
*– Strategic Default…”I think people will become less resistant to defaulting on their mortgage,” Shiller says. “That’s a real cloud on the horizon.”
* — What happens when the fed stops buying the MBS’s. What this will result in is that the artificially low mortgage rates will increase as the secondary market demands returns greater than what are currently being offered.
*–The home buyer tax credit ends this spring… “We can’t just slam on the brakes and withdraw that — we could but I’d hate to see what happens,” he says. “When [government programs] do end there’s going to be a psychological component of that ending as well, which is really hard to predict.”
For that reason, Shiller expects some or all of the government housing programs will be extended, raising the broader question of how the government removes all the liquidity that’s been provided.
“It’s very hard to get out of this mess,” he says. “We have to transition to a more [market-based] economy. It’s going to be a difficult transition. That’s why I have worries for years forward.”
Agents, as Dr. Shiller is making clear in this video….and as we have been telling you…THIS MARKET IS THE NEW NORMAL. What homes are selling now? Short Sales and REOs. Do whatever it takes to learn how to list and sell short sales. Watch the FREE HREU CDPD Agent Short Sale Secrets video now..and grab your FREE Short Sale Secrets book!
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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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The S&P Case Shiller Home Price index was just released. Here are the talking points:
* Home Prices RISE for the 7th straight month in a row!
* Government intervention IS a huge factor. Agents, remember….this ‘intervention’ end this spring AND don’t expect for the buyer credit to be extended.
* Very uncertain what will happen once the government stops buying MBS (Mortgage Backed Securities) and interest rates rise. Higher rates = fewer buyers.
* Added insecurity from the ending of the home buyer tax credit. Dr. Shiller seemed to believe that once the credit expires the market will suffer.
* Home prices are almost at pre-bubble values…2000. So…yeah…if you are going to own your home for a long time…it is indeed..A GREAT TIME TO BUY.
* Double dip in housing can’t be ruled out. Dr. Shiller was concerned that once the interest rates rise, the credit expires there may be a ‘double dip’ in national home values.
* Not optimistic for builders in the short run.
* Housing has no momentum..negative or positive.
* Unemployment rate and consumer confidence
* His bottom line, once the bubble appreciation is completely deflated.
* Long term? Slow…boring…moderate to low (or no) home value appreciation for the long run. Homes are a place to live…NOT and ‘investment’.
Here is a video from CNBC:
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We have been hearing from HREU Students for well over a year about this housing trend…Multi-Generational house holds.
In Europe this is normal. Travel to Italy and you will find that most families live together, sharing a home. Will be interesting to see if this is a real estate trend….due to the Great Recession…or if this is a real estate Mega Trend signifying a lasting shift in housing.
From a cultural and real estate perspective, this trend is a good thing for our country. Generally speaking, closer relationships with your family is a beneficial. If we look at this trend from a real estate perspective it makes sense that multi-generational house holds will need more space…more space means larger homes. So, there could be a light at the end of the tunnel for the savagely beaten down McMansion/ Luxury type properties. Maybe the next wave of buyers for these types of homes isn’t the traditional ‘move up buyer’ but, a multi-generational house hold buyer.
Agents, what are you experiencing? Are you working with buyers who are buying for more than just their immediate family?
More generations are living under the same roof and the trend will deepen as U.S. families grappling with near double-digit unemployment share expenses, a study showed Monday.
Demand is escalating for multi-generational housing as buyers scale down during the deepest housing crisis since the Great Depression, according to a survey by Coldwell Banker Real Estate in Parsippany, New Jersey.
Thirty-seven percent of the company’s real estate agents polled in January said that in the past year, buyers were increasingly shopping for homes that fit more than one generation.
Almost 70 percent of the agents said they expect economic conditions will drive still greater demand for this type of housing over the next year.
“More buyers are pooling investments, considering bringing mom and dad into it,” said Diann Patton, a Coldwell Banker real estate consumer specialist based in Grass Valley, California, in an interview with Reuters.
Buyers were primarily driven by financial concerns when deciding to combine generations in a household, the survey found. Health concerns were the second most common reason and strong family bonds a distant third.
Patton said one of her clients sought to bring her mother out of a health care facility. The mother and daughter pooled resources, buying a house with separate entrances with units for each and room for a caregiver.
This shift in homeownership comes as unemployment hovers just under 10 percent and many consumers are being dealt wage cuts. College graduates unable to get jobs are often returning to their parents’ homes.
Merging generations under one roof could foster more demand in the struggling move-up market, with families buying together to get larger homes than the entry-level houses some might otherwise be able to afford. Some current supports for buyers will soon end.
Borrowers eligible for a $6,500 federal tax credit aimed at move-up buyers, as well as the $8,000 first-time buyer credit, need to sign contracts by April 30 and close on loans by the end of June before these programs expire.
Downsizing also comes on the heels of massive overbuying during the housing boom earlier this decade. Many consumers bought more house than they could afford, spurring a tidal wave of late payments and foreclosures.
The government has been compelled to spur lenders to modify mortgage terms for struggling borrowers still occupying their homes. But so far, lenders have been unable to keep pace with the number of mortgages that are failing.
On the plus side, houses are more affordable after prices toppled about 30 percent, on average, from 2006 peaks and with 30-year loan rates holding near record lows under 5 percent.
Coldwell Banker, a unit of Realogy, based its online survey of multi-generational home trends on responses from 2,360 of its real estate agents.
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BREAKING NEWS….
* Strategic Defaults…so-called walk aways..are the rising wild card. 25% off all homeowners with mortgages are now upside down.
* Delinquent 9.47%
* 90 day delinquents…5.09%
* 30 day delinquents..3.63%
* Largest quaterly decline
* In foreclosure 4.58%
* Total number of ALL US HOME Mortgages in trouble: 15%
Agents, the bottom line is…2010 IS the Year of the Short Sale. The number of homeowners in trouble is now at a record rate. Learn how to help those homeowners. Watch the free HREU CDPD Agent Short Sale video and grab your free short sale guide. Learn the new 2010 ways to list and sell short sales.
Popularity: 1% [?]
This article cites the increasing unemployment rate as the primary culprit for the projected increase in foreclosures later this year…
We suggest that is only part of the picture.
The real drivers in the seemingly never ending foreclosures are:
1) Higher end homes unable to sell because the move up buyers can’t move up…because their homes are upside down.
2) Virtually not financing available for non FHA qualifying mortgages.
3) Massive number of ARMs adjusting and those owners can’t refinance. Why? They are upside down and no programs exist to help them…
As the biggest driver for new foreclosures in 2010:
4) Strategic Defaults. Homeowners making the economic decision to strategically default vs keeping their underwater home. With the advent of the HAFA Guidelines starting in April, expect even more homeowners to bail on their homes….HREU Students, remember…2010 IS the year of the short sale.
Source: LATimes.com
Reporting from Washington – Experts fear that a new wave of foreclosures will hit this year as prolonged unemployment makes it difficult for millions of homeowners to pay their mortgages — and many of them aren’t likely to get much help from a federal program aimed at keeping them in their houses.
Banks participating in the Home Affordable Modification Program, announced a year ago this week by President Obama, have been slow to turn temporarily reduced mortgage payments into permanent ones.
“The overarching sense is that the mortgage modification process has not worked that well,” said Bert Ely, an independent banking consultant.
Obama administration officials acknowledge that the $75-billion program, which offers banks cash incentives to reduce payments, has had growing pains, and they said they were considering revisions to make it more effective.
Still, the program is expected to show continued progress when data from January are released Wednesday after a strong push by Treasury Department officials to get banks to make more of the modifications permanent.
For example, Bank of America Corp., the nation’s largest servicer of mortgages, said Tuesday that it had increased the number of permanent mortgage modifications to 12,700 last month from 3,200 in December. BofA said an additional 13,700 permanent modifications were in their final stage.
But that’s a drop in the bucket considering that BofA holds about 1 million mortgages that are at least 60 days delinquent. About 4 million homeowners nationwide are 90 days or more delinquent on their mortgages or in foreclosure proceedings, according to Moody’s Economy.com, which analyzes data from credit reporting company Equifax Inc.
Trial modifications and other delays have kept many of those mortgages out of foreclosure, but by the end of this year, 2.4 million borrowers are expected to lose their homes, said Celia Chen, a housing economist at Economy.com.
OK, Full stop! Read that number again….2.4 million short sales and foreclosures in 2010. There are expected to be less than 5 million total home sales….that is staggering.
As an agent you simply must know how to do short sales. When this much of the market is dominated by short sales…what choice do you have. Do this, watch the FREE HREU CDPD (Certified Distressed Property Designation) Agent Short Sale Secrets video…then grab the FREE Short Sale Secrets book. <———Go NOW.
That would be up from 2.1 million foreclosures and short sales last year and five times the annual numbers earlier in the decade.
It’s unclear when those distressed properties would hit the market, but their large numbers are likely to push home prices back down this year, to a bottom in the fourth quarter, Chen said. And that would make things worse for the 25% of homeowners who already owe more on their mortgages than their houses are worth.
We have been predicting that 50% of all homes in the US with mortgages would be upside by mod 2010…..and that prediction appears to be coming true.
The biggest blows will be felt in California, Florida, Nevada and other states where home prices have dropped the most and the ranks of struggling homeowners have swelled.
As of December, 11.4% of California homeowners were 90 days or more late on their loans, according to First American CoreLogic, a Santa Ana real estate data firm. That compares with a delinquency rate of 8.4% nationwide.
Despite an increasing number of foreclosure-prevention efforts, lawmakers and community advocates say they haven’t seen enough improvement.
A report last week by Moody’s Investors Service called the Obama administration modification program’s effect “underwhelming.” But administration officials said the program was on track to reduce payments for 3 million to 4 million homeowners through 2012.
As of Dec. 31, the program had helped get 787,231 home loans modified for three months and had helped make an additional 66,465 modifications permanent.
Officials noted that not all homeowners are eligible — the program is only for owner-occupied homes, and excludes a variety of mortgages, including jumbo loans. And the administration continues to make changes, including a requirement added last month that homeowners document their income before a trial modification is granted.
But the program continues to draw criticism. Banks have complained they’ve had trouble getting homeowners to provide the necessary documents. Frustrated homeowners have complained of bureaucratic runarounds from their servicers. Federal watchdog agencies have criticized the program. And last month the chairman of the House Oversight and Government Reform Committee announced an investigation.
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