Realtor Coaching & Training: real estate training
This is a new video from CNBC….
HREU students will watch this video and think to themselves….”Tim and Julie told me about all of this new HAFA info LAST November”
Yep, we did.
And many of your took action late last year and are now ready for all the massive changes with short sales starting April 5th!
Bottom line, 2010 IS the Year of the Short Sale…here are a few of the highlights of the new HAFA Short Sale Plan:
* Standard Short Sale documents. All the forms will be the same regardless of lenders.
* $1500 to borrowers to move. Homeowners will literally earn $1500 for doing a short sale!
* $1000 to the banks to do Short Sales. Lenders will receive $1000 for doing a short sale.
* 6% commissions. No more worrying about reduced commissions.
* Lenders will required to respond to all short sale offers within 10 days!
* fast track short sale closings…we expect to see short sales close faster than even REOs!
Agents, please be clear on this. Your market will want you to know how to do short sales using these new Treasury Department guidelines. Learn now, earn now. Watch the FREE HREU CDPD Agent Short Sale Secrets video now…and download the FREE Agent Short Sale Secrets book.
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Watch out for this one…Principal Mortgage Balance Reductions.
We have watched this topic pop up now and then since 2007. Now, Barney Frank is seemingly championing the idea. In case you didn’t know it….Senator Frank doesn’t mess around. We suspect that Senator Frank is rolling this highly controversial topic out now to put the banks on notice that they sure as heck better abide by the new Treasury Departments HAFA Short Sale Program.
In case you have been living under a rock…2010 IS the Year of the Short Sale. Read this post now for more info on the simply stunning changes to short sales that are taking place 04/05/2010. YES…thats NEXT MONTH!
What does this mean to you?
Imagine a world where almost like magic…all the negative equity for every homeowner simply goes…’poof’. Gone, no more upside down homeowners. Does this sound like a great idea to you? Watch this video and share your comments.
Mor
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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.”
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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:
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Bloomberg News Video on the just released Case/ Shiller House Price Index:
His opinions:
* 2010 will see the housing bottom.
* May of 2009 was the actual bottom for housing.
* On balance sales are up!
* Wild card in his opinion….Lenders Shadow Inventory!
Agents, know this…its NOT TOO LATE for you to become a REO Listing Agent. Earn your RSD (REO Specialist Designation). Watch the FREE Agent REO Secrets video and grab your FREE How to list REOs book.
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There is no question that after April 5 2010 Short Sales will dominate the market. Why?
Treasury Departments HAFA Guidelines! Read this post for everything you need to know about HAFA.
From the homeowners perspective a short sale is the best solution to rid themselves of their own ‘toxic assets’. For example, here are a few of the changes that will occurs as a result of the new 2010 HAFA Guidelines:
1) Commissions can’t be greater than 6%.
2) Lenders must respond to all short sale offers within 10 days!
3) Lenders can’t pursue the borrower after the short sale (or DIL) for any deficiency. In other words, even in states where mortgages are all recourse…even if its not a purchase money loan…no deficiency.
4) Homeowners will receive up to $1500 at closing!
What matters now is that you take action and learn now how to easily list and sell short sales. 2010 IS the year of the short sale. Agents who know the new ways to list and sell short sales are the agents in demand. Watch the free HREU CDPD (Certified Distressed Property Designation) video and download the FREE Short Sale book.
Big US banks including Bank of America, Wells Fargo, JPMorgan Chase and Citigroup are turning to a new tactic to clear their books of troubled mortgage loans: short sales, in which homeowners settle their debts by selling their properties for less than the mortgage value.
Short sales are expected to climb sharply this year as home values continue to plunge, leaving many borrowers underwater on their mortgages.
As moratoriums on mortgage payments and temporary loan modifications expire, a record 4.3m homes are entering or are in foreclosure, up from 3.4m in 2009. This creates an inventory overhang that will weigh on the housing market. Short sales are a way to help clear the pipeline.
Mark Zandi, chief economist of Moody’s Economy.com, forecasts short sales and another type of transaction – known as a deed-in-lieu, in which the homeowner turns over the deed to a property in lieu of paying the debts – to total 20 per cent of all lost home sales this year, up from 15 per cent last year.
After spending most of the past year focusing on largely ineffective loan modification plans, BofA, Wells Fargo, JPMorgan and other large banks said they were shifting their attention to short sales.
“If 2009 was the year of the loan modification, 2010 will be the year of the short sale,” said Jim Klinge, a real estate broker in San Diego, California.
Some of the largest mortgage servicers are scrambling to make the most of this shift. Wells Fargo is holding seminars to teach real estate brokers how to conduct short sales. Citigroup created a unit to expedite short sales and recently announced a pilot programme that gives home owners who voluntarily turn in their deed to the bank a minimum of $1,000 in relocation expenses.
BofA has hired staff to handle increased volume. “Short sales are growing faster than foreclosures and that’s a new development,” said Matt Vernon, a BofA executivenamed to a position overseeing short sales.
The moves come as the US government prepares to launch a programme in April that encourages homeowners, lenders and investors to complete short sales by providing up to $3,500 in incentives.
www.ft.com/usview
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Great CNBC Video..
Pay attention to what they have to say about strategic defaults….as we have been reporting for nearly 3 years…the housing crisis will linger on (and on) as long as homeowners are upside down…no equity, no incentive to stay.
There is no doubt that 2010 is the year of the short sale. Its not too late for you to become a HREU CDPD (Certified Distressed Property Designation). Watch the FREE Agent Short Sale Secrets video now…and download your FREE Short Sale Book!
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