Realtor Coaching & Training: real estate coach
Realtor coaching clients be ready for what you are about to read…this is actually a historical event. 9% of all homeowners are behind in a mortgage payment.
Understand that there never has been a time…and probably never will be another time when home owners have been in so much need of a caring, competent and skilled Realtor. Learn the skills that this market demands. Have the mindset of service, focusing on what you are hear to give.
When you have the skills and the service mindset…..you will find sellers (and buyers) lining up to work with you. Don’t be afraid of this market. Embrace this market for what it is…an opportunity. Start by learning exactly how to take REO Listings. Download our Free 7 Part Agent REO Secrets Guide Book Now.
This is part of an Associated Press article that will be the headlines of all the major newspapers this weekend…
More than 4 million American homeowners with a mortgage, a record 9 percent, were either behind on their payments or in foreclosure at the end of June, as damage from the housing crisis worsened, the Mortgage Bankers Association said Friday.
All indications are that the number of homeowners missing a mortgage payment will only increase over the next few quarters. This means that millions of homeowners will have to hire a Realtor who knows how to successfully close a short sale listing. Learn how-to now. Download the free 7 Part Agent Short Sale Secrets Crash Course. Instant Free Download Now.
But the source of trouble in the mortgage market has shifted from subprime loans made to borrowers with poor credit to homeowners who had solid credit but took out exotic loans with ballooning monthly payments.
“The problem that policymakers and Wall Street once assured us was ‘contained’ to subprime mortgages has proven to be anything but,” Mike Larson, a real estate analyst with Weiss Research, said in a research note.
The trouble is concentrated in a handful of states, the worst being California and Florida, which had some of the riskiest lending practices and rampant speculation.
“We are unlikely to see a national turnaround until we see a turnaround in the two largest states,” with the most outstanding home loans, said Jay Brinkmann, the association’s chief economist.
New foreclosures rose dramatically in eight states: Nevada, Florida, California, Arizona, Michigan, Rhode Island, Indiana and Ohio, but actually declined in Texas, Massachusetts and Maryland.
Almost 500,000 homeowners, or about 1 percent, entered the foreclosure process in the second quarter.
But for the first time since the mortgage crisis started, delinquencies on subprime adjustable-rate loans declined. While more than one out of every five homeowners with a subprime ARM is still in default, that portion dipped 1 percentage point from the first quarter to 21 percent.
What’s driving the delinquency rate up now is the number of homeowners with risky, adjustable-rate prime loans made with little or no proof of the borrowers’ income or assets.
More than one out of 10 borrowers with a prime adjustable-rate loan is now delinquent or in foreclosure. That portion, 11.3 percent, was up from 9.7 percent in the first quarter and is expected to continue to rise as more homeowners see their monthly payments spike.
Many of these loans allowed the borrower to pay only the interest on the loan for a fixed period. Others gave the borrower the option to “pick-a-payment,” adding any unpaid interest to the principal balance.
Defaults on these mortgages, which earned the nickname “liar loans,” are costing Fannie Mae and Freddie Mac billions of dollars. The Treasury Department has even pledged to bailout the mortgage finance companies if necessary.
With home prices plummeting, particularly in California, Nevada, Arizona and Florida, many borrowers with these exotic loans now owe more on their home than it is worth.
And nearly half of these pay-option loans are expected to reset to higher monthly payments by the end of 2010, Fitch said.
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Everyday I read all of the predictions about the markets bottoming. For the most part these ‘prediction articles’ are looking at the past…past home sales, past market data etc. Of course, sold information is important.
The unique advantage that we have is that HREU has literally thousands of Students who are telling us what is really going on on their markets. Not what was but, what they will be.
For example:
We are hearing from many of our top REO Realtor Coaching Students that the REO companies are flooded with new REOs. So many in fact that they are actually having problems assigning the listings. Real story…had a student tell me the other day that his C21 Broker was told by FHA to ‘Gear Up’ for a massive number of REO assignments.
Additionally, we all know that sellers are still reluctant to drop prices. All the while the market continues to make their homes worth less. If a seller absolutely doesn’t have to sell in this market…they are nuts to have their homes for sale. Talk about swimming against the tide!
Looking back….prices of U.S. single-family homes plunged a record 15.4 percent in the second quarter from a year earlier, surpassing the steep drop in the first quarter, according to the Standard & Poor’s/Case Shiller national home price index reported on Tuesday…
COMMENTS: GARY SHILLING… “It’s more of the same. We are looking for the Case-Shiller measure to eventually show a 40 percent total decline, peak to trough. The key point is we are a long way from bottoming out.
Clearly agents who plan on being in the real estate business must know how to successfully close short sales. Get started here
…Download your Free 7 Part Agent Short Sale Secrets Crash Course Now.
The basic problem is excess inventories of new unsold homes. They are the mortal enemy of prices. We estimate that 2 million houses were built during the boom, and we’ve only worked that excess down to 1.8 million as of the beginning of 2008. We think we will see prices falling until the fourth quarter of 2010.
There will be a lot more write-downs at financial institutions and a lot more problems for consumers. They have run out of borrowing power, principally because they can no longer rely on home equity.”
Some info from Reuters
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Quick reminder for you….
If you missed the recent -FR*EE– Agent REO Secrets teleconference
this is your opportunity to learn now what you must know about REOs.
The teleconference (or webinar, your choice) starts in less than 20
hours from now.
Remember, we have very limited space on this call so first
come..first served.
The call is tomorrow WEDNESDAY August 27th, 2008 at 12nn PST, 1pm MTN,
2pm CNT,3pm EST.
Go here now for all the call in info:
Important Link—> http://instantTeleseminar.com/?eventid=3946854
We are really excited about this 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=3946854
We only have very limited spots available for this teleconference.
We had 718 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=3946854
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
Harris Real Estate University
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, 2:00
pm CTR, 3 pm EST.
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The state of the housing market remains dismal, based on data released Aug. 26. Still, it appears the pace of declines for U.S. home prices is moderating, and the glut of unsold homes is easing—offering some reason for cheer.
New U.S. home sales jumped 2.4% in July to a 0.515-million-unit annual pace, but after a downwardly revised 0.503 million rate in June (from 0.530 million) and below the 0.525 million expected. May’s pace was also revised down to 0.514 million from 0.533 million previously. The months’ supply of homes for sale declined to a still-high 10.1 from 10.7 in June. The median sales price rose to $230,700 from $230,000, though it’s still down 6.3% over last year.
“The weaker than expected July sales rate, together with downward revisions in May and June, will likely add to market fears that the housing correction has further to go,” wrote S&P senior economist Beth Ann Bovino.
New Construction Builders Homes Inventories Drop….
Miller Tabak strategist Tony Crescenzi wrote in an Aug. 26 note that “inventories are now at their lowest level since February 2005, 154,000 below the June 2006 peak of 570,000, and not all that far from normal levels of about 350,000. The supply of new homes is controlled by home builders and is not subject to the direct influence of foreclosures, which explains why the supply of new homes is falling and the supply of older homes is continuing to rise.”
Decelerating Declines
The U.S. S&P/Case-Shiller 20-city composite home price index fell 0.5% in June to 167.69, a new record low. However, 11 of the 20 cities posted month-over-month declines, while 13 posted month-over-month declines in May. Phoenix (–2.6%) led the pace of declines, followed by San Francisco (–1.8%), Miami (–1.7%), and Las Vegas (–1.6%). The June index was down 15.9% on a year-over-year basis, after a 15.8% decline in May. All 20 cities saw year-over-year declines, with 10 cities seeing double-digit percentage declines. The biggest year-over-year declines were in Phoenix, Miami, and Las Vegas, down 27.9%, 28.3%, and 28.6%, respectively.
“[T]he monthly pace of decline is slowing rather dramatically from the hefty 2.1% to 2.6% monthly declines over the November-March period, which may mark the maximum rate of collapse for the U.S. real estate market in this cycle,” wrote Action Economics analysts in an Aug. 26 Web site posting.
“The bubble markets, such as California, Florida, and Arizona, which are struggling with excess inventory and rising foreclosures, continue to lead the decline in national home prices. On a positive note, home prices in some non-bubble markets are declining at a slower pace or even increasing,” wrote Lehman Brothers (LEH) economist Michelle Meyer in an Aug. 26 note.
The U.S. Office of Federal Housing Enterprise Oversight home price index was flat in June, after declining 0.4% in May (revised from –0.3%). On a quarterly basis, prices fell 1.36% in the second quarter, less steep than the –1.68% in the first quarter. The home price index was down 4.80% in the second quarter a year ago, below the –3.03% year-over-year pace in the first quarter.
“The deceleration in the pace of declines over the past three months, together with the better than expected Case-Shiller reading, may give markets hope that the housing market is nearing the bottom,” wrote S&P’s Bovino in a separate note.
Business Week.
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Interest rates are INCREASING for the best borrowers….
Rates on average 30-year fixed mortgages rose to 6.37 percent this week, about the highest in six years. More than 70 percent of new home loans are bought or guaranteed by the government-chartered companies, known as “prime” mortgages.
Higher rates for the safest borrowers may exacerbate the worst housing market since the Great Depression and thwart efforts by Federal Reserve Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson to bring mortgage rates down. The slowest-growing economy since 2001 is already shutting out some buyers and increasing costs for those seeking to borrow with smaller down payments or below-average credit scores.
“New home buyers are going to have to get credit at reasonable terms for the decline to stop,” said Christopher Mayer, a real-estate professor at Columbia University’s business school in New York. “The price issue alone is having a very, very big effect.”
As rates rise, sellers are forced to lower prices for buyers seeking to make the same monthly payments. A rate of 6.37 percent equates to a monthly payment of $1,871 on a $300,000 mortgage, up from $1,739 when rates were as low as 5.69 percent in May, according to data from Bankrate.com in North Palm Beach, Florida.
Record High
Applications for mortgages fell 34 percent to the lowest level since 2000 in the week ended Aug. 15 from a year earlier, partly because of the increase in loan rates, according to the Washington-based Mortgage Bankers Association.
Paulson received authority from Congress last month to pump unlimited amounts of capital into Fannie and Freddie in an emergency after the debt yields rose and their shares tumbled 90 percent from a year earlier. Freddie paid its highest yields over Treasuries on record in a debt sale Aug. 19.
Fannie, the largest mortgage-finance provider, was created as part of Franklin D. Roosevelt’s New Deal in the 1930s and became a publicly owned company in 1968. Freddie was started in 1970, when the economy was strained by the Vietnam War.
The economy’s growth is forecast to slow to 1.5 percent this year, the slowest since 0.8 percent growth in 2001.
Outside People
Home foreclosure filings rose 55 percent in July and banks repossessed almost three times as many homes as a year earlier as falling prices made it harder to sell or refinance, according to RealtyTrac Inc., an Irvine, California-based seller of foreclosure data. U.S. home prices fell 15.8 percent in May, the most since at least 2001, according to the S&P/Case-Shiller home- price index.
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