I'm at the bank making a deposit from an REO property that just closed. The teller asked me how business was which I said it was great. He began to tell me that the bank was having a difficult time getting loans closed because homes where not appraising. I asked if any of those loans whent to short sale. He didn't know what a short sale was.
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Friday, February 27, 2009
Short Sales and REO
I'm at the bank making a deposit from an REO property that just closed. The teller asked me how business was which I said it was great. He began to tell me that the bank was having a difficult time getting loans closed because homes where not appraising. I asked if any of those loans whent to short sale. He didn't know what a short sale was.
read more | digg story
read more | digg story
Short Sales and REO
I was at the bank making a deposit from an REO property that had just closed. The teller asked me how business was which I said it was great. He began to tell me that the bank was having a difficult time getting loans closed because homes where not appraising. I asked him if any of those loans went to short sale. To my surprise he didn’t even know what a short sale was. Now I’m telling anyone who wants to make money in real estate really needs to get on board and learn how to become a short sale or an REO agent and make it your niche. I’m not trying to sell gloom and doom, but the reality is this is so wide spread that any agent in today’s market that doesn’t know how to deal with this is just going to have to get another job until the market rebounds.
I have a friend in the business that just did a short sale for a client and the day before closing she was telling me about it. I asked her if she had requested from the bank a deficiency forgiveness letter. She was quiet for a minute and then asked me what that meant. When I told her they could back to her client at some point in time and demand that difference she had never heard of it. She called the bank and postponed the closing in order to get the letter. They did honor her request and it’s a good thing she called me. Agents if you are doing short sales and don’t know what your doing your client’s are going to suffer in the long run. Down the road when the bank sees that the former owner is making good money again without the forgiveness letter they can start collection process or wage garnishment.
The problem is our brokers aren’t teaching us to do short sales or REO’s. Some of them are in the dark as most agents. I’ve done some research to try to help agents out there find a good inexpensive course and for only $77.00 you can get all the information you need to become proficient in short sales. Not only is it reasonably priced but it is also the number 1 in Google. The package includes 25 videos on how to do Short Sales successfully. With one sale of course you’ve earned your money back. Not to mention once you do one you’ll find more and become known as a short sale expert. Just check out this site and see what you think. You’ll be surprised at the things most agents don’t know. Just check it out. Click Here!
I have a friend in the business that just did a short sale for a client and the day before closing she was telling me about it. I asked her if she had requested from the bank a deficiency forgiveness letter. She was quiet for a minute and then asked me what that meant. When I told her they could back to her client at some point in time and demand that difference she had never heard of it. She called the bank and postponed the closing in order to get the letter. They did honor her request and it’s a good thing she called me. Agents if you are doing short sales and don’t know what your doing your client’s are going to suffer in the long run. Down the road when the bank sees that the former owner is making good money again without the forgiveness letter they can start collection process or wage garnishment.
The problem is our brokers aren’t teaching us to do short sales or REO’s. Some of them are in the dark as most agents. I’ve done some research to try to help agents out there find a good inexpensive course and for only $77.00 you can get all the information you need to become proficient in short sales. Not only is it reasonably priced but it is also the number 1 in Google. The package includes 25 videos on how to do Short Sales successfully. With one sale of course you’ve earned your money back. Not to mention once you do one you’ll find more and become known as a short sale expert. Just check out this site and see what you think. You’ll be surprised at the things most agents don’t know. Just check it out. Click Here!
Monday, February 23, 2009
Short Sales And Foreclosures Niche
I am shocked at how many agents in today’s market don’t have a clue about foreclosures and short sales.
With the staggering numbers of these properties that make up today’s market every agent needs to be educated in this process. How can you service your buyers and your sellers if you don’t know the process of foreclosure and the process of a short sale? And where are you going to get an education on this? Is your company going to teach you? Or can you rely on an agent in your office that might have some knowledge?
I am a Real Estate agent that has specialized in both these fields and I live in the Cincinnati area and here in one county alone there are 1,902 pre foreclosures. There are 3,557 homes that are already REO. This makes up a significant amount of listings in the MLS. Ohio is #8 in foreclosures. There has been a 64% increase in foreclosures over 2005, again in 2007, and again in 2008. That is approximately 1 out of every 59 homes. That is a staggering number. With the market continuing to decline and more and more homeowners defaulting on their mortgages these numbers are only going to continue to rise. Do you think the stimulus program is going to get us out of this mess?
I was in a class today sponsored by my Company about Foreclosures and Short Sales. The class was made up of about 200 or so agents. The instructor made it quit clear that any one that doesn’t know this aspect of the business needs to learn it and learn it now and make it their niche. Niche is right. There was even an agent in the class that asked what does REO stand for? This is amazing to me that agents in this market are so uneducated. The market has changed and we have never ever seen this kind of crisis in real estate ever. Not even in the 80’s when interest rates sky rocketed. The economy is a mess with job loss, adjustable rates, and sub prime loans being defaulted on. Mortgage companies going bankrupt the list just on and on.
Where is your business going to be in six months from now?
Are you going to be working with buyers and showing them 20 to 30 homes before they buy? If you have a buyer that will even qualify for a mortgage in this market. And what if they buy a short sale or a foreclosure property? Will you know what paper work to submit to the selling agent? What if you are the listing agent of a short sale? Will you be able to represent your seller with the full knowledge of what to present to the bank? The biggest and number one mistake agents make is that they do not know how to negotiate with the seller’s lender. Suppose they owe $100,000.00 and you get an offer for $80,000.00 What about the deficiency of the mortgage? That is the second biggest mistake agents make. Did you know if you don’t request that they forgive the deficiency the bank can come back to the seller and demand payment? They can at some point in time garnish their wages. So how do you get the bank to forgive the deficiency of the mortgage? And what paper work do you need to send in with an offer? Will they even talk to you in the first place? There is paper work you have to send to them before they will even talk to you. If you don’t send the right documentation in it will sit on someone’s desk and cause a major delay. Can you tell your seller of a short sale how long this will stay on his credit report? Is a short sale better than a foreclosure? What about Deed in lieu? Can you stop a sheriff’s sale date with a short sale? How will a bankruptcy affect the sale?
What if you where lucky enough to get the listing of a lender owned property?
Do you know how long the confirmation of sale is? What if the bank buys it back and the seller redeems the property? Suppose the property goes to sheriff’s sale and the previous owner doesn’t leave. Once the writ of possession is in place how long does the occupant have to vacate? How is the eviction process handled? Who do you get to re key the property? How are you going to handle disposing of personal property? Who is responsible for utilities? What if there are unpaid utilities on the property because the former owner left with unpaid utility bills? Who pays them? Can they become a lien on the property? Do you know how to handle the process of marketing, inspections, BPO’s and offers? What responsibility do you have with listing the REO?
When doing your BPO
It needs to done in a very precise way because it will affect the pricing of the property. Banks today do not want to hang on to these properties they are looking for a price to get them sold within 90 days. Pricing is important for as is properties.
Buyers and repairs after offers…
Please inform buyers that asking for repairs on items that are visible during normal inspections will be rejected and they should figure that in their offer. Sellers do not want to do repairs these are as is. The clients are becoming much pickier on this.
If this seems overwhelming
It will be with out the proper knowledge. These are all questions that you need to be able to answer when working in these specialized fields. Even if you just work with buyers you’re going to end up showing some of these properties. You need to be able to explain how this has affected the market.
WHAT’S IN IT FOR REAL ESTATE BROKERS?
Knowledge of pre-foreclosure investing can greatly expand a real estate broker’s earning potential. In today’s markets, it is critical to understand properties in foreclosure.
The benefit of becoming well versed in foreclosure is being one of the few who are able to understand such transactions. Most real estate brokers do not want to work with or do not understand such listings. Because of this, it is easier to directly obtain listings or obtain listings referred by other real estate brokers. Many successful careers have been made out of this misunderstood market segment.
The main goal in the real estate business is to have clients for life.
Not past clients that may hold it against you for not knowing all the ins and outs of your business. When someone is in trouble they are looking to their realtor for advice and knowledge. The obvious is we want all of our clients to use us again. Not to be past clients we want clients for life.Click Here!
Just $77.00 for a complete online course of 25 step-by-step, sequential videos and an ebook with every form and document that you would need to complete a successful Short Sale.
Learn all the tips, secrets and strategies of executing a Short Sale the right way. If you can take and follow simple and direct instruction you WILL be successful in your Short Sales and your income will rise along with your closing ratio and standing among other Realtors in your community. Here is some of what you will learn in this online video course:
With the staggering numbers of these properties that make up today’s market every agent needs to be educated in this process. How can you service your buyers and your sellers if you don’t know the process of foreclosure and the process of a short sale? And where are you going to get an education on this? Is your company going to teach you? Or can you rely on an agent in your office that might have some knowledge?
I am a Real Estate agent that has specialized in both these fields and I live in the Cincinnati area and here in one county alone there are 1,902 pre foreclosures. There are 3,557 homes that are already REO. This makes up a significant amount of listings in the MLS. Ohio is #8 in foreclosures. There has been a 64% increase in foreclosures over 2005, again in 2007, and again in 2008. That is approximately 1 out of every 59 homes. That is a staggering number. With the market continuing to decline and more and more homeowners defaulting on their mortgages these numbers are only going to continue to rise. Do you think the stimulus program is going to get us out of this mess?
I was in a class today sponsored by my Company about Foreclosures and Short Sales. The class was made up of about 200 or so agents. The instructor made it quit clear that any one that doesn’t know this aspect of the business needs to learn it and learn it now and make it their niche. Niche is right. There was even an agent in the class that asked what does REO stand for? This is amazing to me that agents in this market are so uneducated. The market has changed and we have never ever seen this kind of crisis in real estate ever. Not even in the 80’s when interest rates sky rocketed. The economy is a mess with job loss, adjustable rates, and sub prime loans being defaulted on. Mortgage companies going bankrupt the list just on and on.
Where is your business going to be in six months from now?
Are you going to be working with buyers and showing them 20 to 30 homes before they buy? If you have a buyer that will even qualify for a mortgage in this market. And what if they buy a short sale or a foreclosure property? Will you know what paper work to submit to the selling agent? What if you are the listing agent of a short sale? Will you be able to represent your seller with the full knowledge of what to present to the bank? The biggest and number one mistake agents make is that they do not know how to negotiate with the seller’s lender. Suppose they owe $100,000.00 and you get an offer for $80,000.00 What about the deficiency of the mortgage? That is the second biggest mistake agents make. Did you know if you don’t request that they forgive the deficiency the bank can come back to the seller and demand payment? They can at some point in time garnish their wages. So how do you get the bank to forgive the deficiency of the mortgage? And what paper work do you need to send in with an offer? Will they even talk to you in the first place? There is paper work you have to send to them before they will even talk to you. If you don’t send the right documentation in it will sit on someone’s desk and cause a major delay. Can you tell your seller of a short sale how long this will stay on his credit report? Is a short sale better than a foreclosure? What about Deed in lieu? Can you stop a sheriff’s sale date with a short sale? How will a bankruptcy affect the sale?
What if you where lucky enough to get the listing of a lender owned property?
Do you know how long the confirmation of sale is? What if the bank buys it back and the seller redeems the property? Suppose the property goes to sheriff’s sale and the previous owner doesn’t leave. Once the writ of possession is in place how long does the occupant have to vacate? How is the eviction process handled? Who do you get to re key the property? How are you going to handle disposing of personal property? Who is responsible for utilities? What if there are unpaid utilities on the property because the former owner left with unpaid utility bills? Who pays them? Can they become a lien on the property? Do you know how to handle the process of marketing, inspections, BPO’s and offers? What responsibility do you have with listing the REO?
When doing your BPO
It needs to done in a very precise way because it will affect the pricing of the property. Banks today do not want to hang on to these properties they are looking for a price to get them sold within 90 days. Pricing is important for as is properties.
Buyers and repairs after offers…
Please inform buyers that asking for repairs on items that are visible during normal inspections will be rejected and they should figure that in their offer. Sellers do not want to do repairs these are as is. The clients are becoming much pickier on this.
If this seems overwhelming
It will be with out the proper knowledge. These are all questions that you need to be able to answer when working in these specialized fields. Even if you just work with buyers you’re going to end up showing some of these properties. You need to be able to explain how this has affected the market.
WHAT’S IN IT FOR REAL ESTATE BROKERS?
Knowledge of pre-foreclosure investing can greatly expand a real estate broker’s earning potential. In today’s markets, it is critical to understand properties in foreclosure.
The benefit of becoming well versed in foreclosure is being one of the few who are able to understand such transactions. Most real estate brokers do not want to work with or do not understand such listings. Because of this, it is easier to directly obtain listings or obtain listings referred by other real estate brokers. Many successful careers have been made out of this misunderstood market segment.
The main goal in the real estate business is to have clients for life.
Not past clients that may hold it against you for not knowing all the ins and outs of your business. When someone is in trouble they are looking to their realtor for advice and knowledge. The obvious is we want all of our clients to use us again. Not to be past clients we want clients for life.Click Here!
Just $77.00 for a complete online course of 25 step-by-step, sequential videos and an ebook with every form and document that you would need to complete a successful Short Sale.
Learn all the tips, secrets and strategies of executing a Short Sale the right way. If you can take and follow simple and direct instruction you WILL be successful in your Short Sales and your income will rise along with your closing ratio and standing among other Realtors in your community. Here is some of what you will learn in this online video course:
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