Realtor Coaching & Training: real estate coach
Stay closely tuned into TimandJulieHarris.com this week…..lots of housing related news happening that you will want to know about the very moment it hits.
Here is an interesting report that Goldman Sachs released earlier today.
Uncle Sam’s interventions in the housing market have pushed home prices 5% higher on a national average than they would have been otherwise, Goldman Sachs estimates in a report released late Friday.
I bet this number is actually low….students from across the US report to us how buyers are OVERPAYING for their Short Sales and REOs….
The government over the past year has slowed the pace of foreclosures through moratoria and the drive to modify mortgage terms to keep more borrowers in their homes. It also has pumped up demand for housing by giving tax credits to many first-time home buyers and by driving down mortgage interest rates.
Will the tax credit be extended? Read the news here.
As a result, home prices in some areas have risen in recent months, particularly for homes that appeal to investors and first-time buyers. Bidding wars for the more attractive bank-owned homes have become common.
We believe that even with further expected home value erosion in 2010 that homes priced below $200,000 have already experienced the bulk of their depreciation cycle.
But these artificial props won’t last forever and may have created a false bottom in the market. “The risk of renewed home-price declines remains significant,” Goldman economist Alec Phillips writes in the report, “and our working assumption is a further 5% to 10% decline by mid-2010.”
This is especially true for more expensive homes…as we reported several weeks ago…the next big surge of residential foreclosures will be homes that are more than the FHA lending limits.
Federal government policies encouraging loan mods have reduced the supply of homes on the market temporarily because it takes months for loan servicers (the firms that collect mortgage payments) to figure out which borrowers qualify. Some states have added their own restrictions on foreclosures that drag out the process further. In many cases, borrowers who get loan mods will default again within a year or so, meaning the problem has been delayed rather than solved.
Mods get a lot of bad press but, the fact remains that banks are doing loan mods. But, the borrower has to qualify. Watch the FREE Agent Loan Mod Secrets video now to learn how YOU CAN mod your own loan….and….learn how to make money from knowing how to offer loan mods to others.
That means there is a large but impossible-to-measure “shadow” inventory of homes that eventually will hit the market.
Goldman estimates the tax credit has boosted sales by 200,000 units. Congress is debating whether to extend that credit beyond Nov. 30. Goldman says it “appears likely to be extended for at least a few months but probably no longer than through the first half of 2010.”
And it appears that this will happen TOMORROW…read the report here.
Mammoth purchases of mortgage securities by the Federal Reserve appear to have held home mortgage rates about 0.30 percentage point lower than they would have been, Goldman says. Those purchases are due to be phased out in next year’s first quarter.
In March to be exact. What does this mean…? Higher interest rates and it WILL become tougher to get a loan.
The outlook for further government policy is “cloudy,” Goldman notes. But it is safe to assume that many politicians will remain loath to let the market run free and wild. Goldman points to legislation introduced by Sen. Jack Reed (D, R.I.) that would require mediation between borrowers and lenders before any foreclosures and mandate loan mods in some cases.
“At a minimum, the Reed proposal would slow the foreclosure process considerably,” helping to prevent price declines in the near term, Goldman says. It adds: “The tradeoff would come later, when many of the properties eventually make their way back onto the market through foreclosure.”
Agents, what does all of this mean to you? Simple, this is the new market. Learn how to help others and make money because of this market. The agents who are thriving NOW are the agents who have learned how to become REO Listing Agents. Know this…its not too late for you. Watch the FREE Agent REO Secrets video and then download the FREE Agent REO Secrets book.
Source: WSJ.com
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Being a Certified Short Sale Specialist is more important NOW than ever…..
As we reported over 2 years ago the number of homeowners choosing to de-leverage their own ‘toxic asset’ would only increase. In the past there was significant moral and social stigma associated with someone ‘walking away’ or doing a strategic default. Now, that has all changed.
For agents who were lead to believe that being a Certified Short Sale Specialist was optional…you need to rethink that mindset.
Its become very clear that there will be no ‘V’ shaped recovery…and certianly no fast recovery for housing. As you will read in this article, in some parts of the country it will take 10+ years for homes to return to peak bubble prices. With that in mind, millions of homeowners are considering a strategic default.
Disclaimer: We are not here to be the ‘moral’s police’. This is a very important and personal decision. As a Realtor, we don’t think its ethical for you to be advising your sellers to participate in strategic defaults.
Clearly, homeowners are coming to the decision to ‘walk-away’ on their own.
Where do you, a real estate professional fit in?
Simple, a Short Sale is by far a better alternative vs a foreclosure or a deed in lieu of foreclosure. The initial credit hit is roughly the same. But, the lasting effects of a Short Sale vs a Foreclosure are dramatically different. For example, according the FHA guidelines someone can qualify for a new FHA backed mortgage 24 months after a Short Sale. Much longer vs a Foreclosure.
Agents, learn how to become a Certified Short Sale Specialist. There is no question that knowing how to do a Short Sale….how to list it, sell it and get it closed in less than 45 days…IS the opportunity in this market. In come markets 75% of all homeowners are upside down…if they want to sell and avoid foreclosure they will need the services of an Short Sale Listing Specialist. When would NOW be the right time for you to learn how to do Short Sales….Watch the FREE Agent Short Sale Secrets video now…then grab your FREE Agent Short Sale Secrets book. Do this NOW.
Here are excerpts of the article from SeattleTimes.com
Scott Conroy pays the mortgage every month on his one-bedroom condominium in San Diego, even though it’s worth 33 percent less than what he owes and it may take more than a decade to break even.
Homeowners like Conroy who can afford their payments are weighing whether to sell and pay the difference, stick it out until housing prices recover or walk away.
In the U.S., 26 percent of borrowers owe more than their home is worth, said Karen Weaver, global head of securitization research for Deutsche Bank Securities. In parts of California, Florida and Nevada, it’s as high as 75 percent.
Realtors, did you catch that…..in some markets 75% of all homeowners are upside down! Staggering.
So-called strategic defaults, in which homeowners stop paying their mortgages while remaining current on other debts, rose 128 percent to 588,000 last year, according to Experian, a credit-checking company, and Oliver Wyman, a New York consulting firm. Two-thirds of those who walked away defaulted on their primary residences.
“You’re looking at an extremely long horizon in order to see a return of home values to where they were at their peak,” said Stan Humphries, chief economist for Zillow.com, the Seattle real-estate data service. “It could be 15 to 20 years in some markets.”
Trickle for now
Strategic defaulters represent about 4 percent of all homeowners underwater. That trickle could become a flood as the likelihood recedes that home prices will soon return to their peak values, said Rick Sharga, senior vice president of Irvine, Calif.-based RealtyTrac, an online seller of real-estate data.
Re-read that. Proof positive that this trend is just getting started. Learn how to become a HREU Certified Short Sale Specialist. Watch the FREE Short Sale video and grab your FREE Short Sale book NOW.
In San Diego, home values are down about 40 percent since March 2006, according to the S&P/Case-Shiller monthly index. Prices have rebounded for three consecutive months, returning to the October 2002 level, before the start of the housing boom.
Nationwide, home values are what they were in September 2003, according to the Case-Shiller index as of July.
“You have to ask yourself: ‘Are you just renting the home from the bank?’ ” said Michael Joe, a foreclosure expert at the Legal Aid Center of Southern Nevada. “Would it be cheaper to walk away and rent across the street?”
Conroy, 32, and his wife purchased their home for $385,000 in March 2006, a month before marrying. The property was reassessed this summer for $250,000.
Conroy said he and his wife are trying to save, knowing they may have to move to a bigger place within 18 months to start a family.
“We’ve given up on this dream of having equity in our home. We don’t expect to walk away with cash in hand; we expect to pay.”
More homeowners may opt to take a hit to their credit score rather than come up with cash to cover the loss, especially in California and the nine other U.S. states where the legal repercussions of foreclosures are less than in other parts of the country, said Sharga.
Ten states are so-called non-recourse, prohibiting deficiency judgments after most home foreclosures: Alaska, Arizona, California, Hawaii, Minnesota, Montana, North Dakota, Oklahoma, Oregon and Washington, according to the Boston-based National Consumer Law Center. The bank can repossess your home in those states, not other assets, to settle the debt.
In California, a second-mortgage holder may try to pursue a delinquent borrower to repay through litigation, said Rick Brooks, a financial adviser with the San Diego-based wealth-advisory firm Blankinship & Foster. Banks generally prefer not to sue because it can easily cost $60,000 or more, said Debra Guzov, co-founder of the New York law firm Guzov Ofsink.
In a short sale, the borrower finds a buyer for the home at an acceptable price and the bank agrees to forgive the difference, said Greg McBride, senior financial analyst with Bankrate.com.
In a deed-in-lieu of foreclosure, the bank sells the home after a similar debt negotiation.
Tax break
A 2007 law exempts from tax up to $2 million of debt forgiven in a foreclosure or similar proceeding for a primary residence, according to Internal Revenue Service spokesman Eric Smith. The tax break extends to 2012.
The lender’s willingness to negotiate varies and depends on the loan balance, condition of the property, location and resale opportunities, said Alberta Hultman, CEO of USFN, an association of mortgage-banking attorneys based in Tustin, Calif.
Short sales or deeds-in-lieu of foreclosures are considered the same as a foreclosure on your credit score, said Craig Watts, spokesman for FICO Corp., owner of the credit-scoring formula most widely used by U.S. lenders.
A foreclosure remains on a credit report for seven years. Credit scores can begin to rebound in as little as two years if bills are paid on time, according to FICO.
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Hello,
What I have for you here….
….is a great opportunity for you to experience the same hands-on “transformational” process…..
…that Top Producing agents (agents selling 100+ homes per year) freely admit opened the floodgates of success for them, changing their lives forever.
The best part?
You will learn what the in-the-know Top Producers are doing now to make money…and how you too can quickly and easily follow in their footsteps……
Tomorrow, Friday August 21st at 9am PST/ 12nn EST we will be interviewing several agents who are way ahead of the curve and making a fortune from….
Social networking and online marketing.
Yes, I am talking about Facebook, Twitter, Linkedin…and many others. You must know by now the importance using these sites….now we will show you how.
Here is the link for tomorrow’s event. (It’s Fr-ee)
Social Media/ Agent Tech Secrets Call (or Webinar)
This is a journey ALL successful agents must take. You already know that virtually every buyer and seller starts their search for an agent online….the question that you must be asking yourself now is…are they finding YOU or your competitor?
Attend this FR-EE event tomorrow you will learn how-to:
1) Make it so your name always comes up high in Google.
2) Correctly and effectively interact on the social networks.
3) Generate leads NOW from Twitter…Facebook.
4) Most importantly, we will show you exactly how to make money from the social networks.
Here is the link for tomorrow’s event. (Its Fr-ee)
Social Media/ Agent Tech Secrets Call (or Webinar)
And let’s cut the bull here: You may be quite capable of figuring it all out for yourself, but it will take you a few years to get good at it, without help. I know that many of you are a little scared of all this Internet Social Media stuff…..some of you were probably hoping that you could get away with not ever having to adapt to this new technology.
But I am here to tell you that not only is all of this stuff easy to learn….it also can be a heck of a lot of fun.
Should you attend this Fr-ee Agent Tech Secrets teleconference or webinar?
Answer these 3 questions:
1) Are you generating at least 20 leads per month from your website, blog, social networks?
2) Have you closed any transactions as a result of your online efforts?
3) When your city’s name is ‘Googled’ for example: “Columbus Ohio Homes”…does your name come up on the first page of the search results…(or does your competitors)?
4) Do you have ‘profiles’ set up with at least 20 of the top social networking sites?
If you answered “no”…or even “maybe” to any of these questions, tomorrow’s Agent Tech Secrets call is for you.
Listen, we won’t waste your time. We are giving you the no-bull, in-your-face…”here’s how it’s done” information you need to master to make money NOW from social media and Internet marketing.
This is a Fr-ee call but, we have limited space.
Here is what you need to do now.
Go to here for all the event information:
Social Media/ Agent Tech Secrets Call (or Webinar)
(Tip: Call in (or log-in on the webinar) at least 10 minutes early to be guaranteed your spot. We are limiting the size of this call to the first 300 agents.)
You owe it to yourself to get the full story, and get it now (while spots are available).
Again – you know that the Top Producers in your market are already making money from the Social Networks and online marketing. This is your opportunity to learn how you can do the same.
Last chance:
Here is the link for tomorrows event. (Its Fr-ee)
Social Media/ Agent Tech Secrets Call (or Webinar)
Speak with you tomorrow!
Tim and Julie Harris
HREU
P.S. Even if you already are ‘online’ and have a blog…maybe you are already on ‘twitter’…are you closing any transactions..making any money from your efforts? Attend this call tomorrow and you will learn a few tips and secrets that you may not know.
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My Testimonial is not your usual testimonial
For those of you who are impatient, 30 second types, I highly recommend Harris Real Estate University. The real question is why? Why would I do that?
I believe that it will make the positive effect in your life that you are looking for during these difficult times, or any other time.
How sad.
I originally discovered Harris Real Estate University years ago. I briefly looked at their site and went on with my regular business, life was good. Who needed Harris? What a bonehead mistake that was. I really wish that I had been open minded and forward thinking way back then, as I would be enjoying life now.
Then one day HREU had the temerity to email me again, unfortunately years later. I can honestly say that they do have an issue that needs to be resolved. They need to send out their email more frequently! I might have been receptive last year! I blame them for my extended ignorance! Are you receptive this year?
Wasted Time and Money.
I have spent thousands of dollars on other well known coaching programs and got a lot of “BLAH”, “BLAH”, “BLAH”, “BLAH”! They were trying to teach me (read old school tripe) how to rev up my business engine. What a waste of money most coaching is!
HREU is a BARGAIN (maybe underpriced?)
HREU is not a waste of money! Knowledge gained at HREU will make a positive difference in your life. Take control today.
I didn’t know it at the time, but HREU actually delivers on its educational, coaching, meaningful and business building charter. It is not for everyone. Not for the 80% of you who can’t see beyond HREU trivial cost.($97 per month!) Not for someone who doesn’t want to have their future business solutions handed to them in a tidy package. Not for someone who doesn’t want to be proactive in shaping their future!
By the way, I am not the success that I want to be. I don’t have the business that I want to have. The good thing is that I know all of that and I know that with the education and hand holding provided by HREU I can change all of that in time. Life is long and full of time. It is the journey that makes the life.
What are your options?
You are reading this because you received an email or were told about HREU by a friend (now that would be a real friend). I wish I had a friend who recommended HREU. Here are your choices
1). Continue doing what you have been doing; maybe get out of this horrible business, or
2). Get into the knowledge game. Have an eye opening experience.
I chose to get into the game with the best source of knowledge, education, resources, helpful coaching and timely application you could possibly ask for.
Did you catch that?
“Timely application”! NOW! I need to do something NOW! I need to make an income, a change NOW! Today is a good day, it is NOW! My own personal HELL is killing me! Was killing me, well, still is killing me. I want to stop being killed!
The difference, provided by HREU, is that now I have recognition, an understanding and belief that I can make a tsunami like change in my life. And, if you are reading my tome of a testimonial, Harris U may make a difference in your life. I am experiencing a lifetime change and a lifetime difference.
I am in the process of making a life changing decision. Are YOU?
At first blush HREU seems to have a number of classes, any one of which you can take and turn into a business. After enrolling in one of their courses, say Agent REO Secrets you soon realize that this program is just one part of a puzzle of income. You then sign up with their Agent Short Sale Secrets program and realize that presents its own opportunities for the NOW!
An “AHA” moment occurs. You have found another piece of the puzzle of cash flow! You are building a business with income for the NOW and long term income for the FUTURE! Your are not a victim any longer! You have a plan! By the way, before these classes I had a plan, which wasn’t working all that well. How about you?
You are in a new paradigm.
Listing and selling homes isn’t what it once was. Everything that you once knew is still applicable, but different, horribly different. Don’t stop doing it, it is still part of your business- just not your business. It is a lot harder and has less certainty of success today. It is a lot of work begging for business and wondering if you are in the wrong business. You need to continue your quest for an income and job you love. But there is something happening out there.
Your choices are to keep doing what you have been doing, get out of the business, and maybe you should, or figure out that you are standing beside a river of business and you just need to dip into it in order to get your share.
I hate change. I hate uncertainty. I hate real estate today. Everything is a short sale. Everything is a mortgage modification. Everything is an REO, a BPO. Everybody wants a good deal and I hate making those offers. Everyone is losing their home. How do those successful agents pull it off?
The real estate business and home ownership is in crisis. A horrible self induced crisis and it is going to last for years! Like some horrible nightmare it has a life of its own! Or it is an opportunity for those who finally recognize today’s reality! There is that old Chinese thought that Crisis is just the other side of opportunity.
Enter the new paradigm. You are in a different real estate market and are kicking and screaming your way into it, or getting out of the market (and into this jobless economy).
Recognition of this change first brings on the donkey reaction of digging in your heals and doing more of the unsuccessful same old stuff that really didn’t work all that well when the market was working the way “you liked it”. You were just in a no brainer market. Now you need to use your brain.
I was just like you! Except that I took the step to become educated into the new paradigm. With HREU I am learning a new job, an adjunct to my old real estate career. I am learning something that will outlive the current malaise.
Dick Todhunter Real Estate Broker 206-898-3776
http://www.realtyandamortgage.com/blog/
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Robert J. Shiller
HREU Students and future students…listen to this guy… Dr. Robert Shiller was among the very few to warn of a housing bust before it happened. Shiller is the co-creator of the closely watched S&P/Case-Shiller Home Price Indices.
Dr. Shiller believes that housing could indeed be approaching a bottom. But, don’t pop the champagne corks just yet…
He predicts that prices might remain ‘at the bottom’ for years to come as the United States remains in a liquidity trap very similar to what caused the Great Depression.
During a recent interview, Newsmax.TV’s Dan Mangru asked Shiller where he sees the housing market going from here.
“In the United States, home prices have been dropping at a rapid clip,” Shiller responded.
“However, in the latest S&P/Case-Shiller data, the rate of decline seems to be reduced, and in fact, in seven of our 20 cities, home prices were rising in April. So it does seem to me that we are getting closer to a bottom at the very least.”
Last week, demand for home-purchase loans decreased and the unemployment rate now stands at 9.5 percent, Mangru pointed out, and asked: Are home buyers just scared?
“I think having really high unemployment is naturally scaring people,” Shiller said.
“And we don’t know that it’s over yet. We had a really bad unemployment report, and unemployment could easily exceed 10 percent. People know that. That’s one reason the personal savings rate has risen to 6.9 percent, levels we haven’t seen in decades.
“Even though the confidence surveys seem to be relatively upbeat, I don’t know if it really translates into willingness to purchase yet.”
Even though this is a housing lead recession..housing WON’T lead up out as some have hoped for.
He told Newsmax.TV he doesn’t think some proposals calling for increased tax credits for all home buyers is a good idea.
He sees the $8,000 tax credit for new home buyers as stimulative because it forces new home buyers into the market rather than existing homeowners who would put their existing properties up for sale.
In discussing the overall economy, Shiller said the United States had avoided an economic catastrophe because of intervention by the Federal Reserve and Treasury, but the nation remains in a bad recession.
Instead, Shiller foresees a risk of a weak economy for years to come.
Popularity: 2% [?]
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.
Realtor coaching, real estate coach, real estate training, bank owned homes, bank owned properties, real estate owned by banks, short sale coaching, short sale training, reo coach.
Popularity: 1% [?]
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
Realtor coaching, real estate coach, Realtor coach, real estate training, bank owned homes, bank owned properties, real estate training.
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