bank of america

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“Strange New Automation Strategy Closes Short Sales

Fast and Easy in 2010! 

Think of it!  Our newly revised automatic system for finding and

closing short sales is letting people cut their  work-week in

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Just click the link below to join our webinar this coming Tuesday

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More foreclosures coming 

The number of long-term adjustments completed under the president’s foreclosure prevention plan rose to 66,465 at the end of December, or 7.4% of all trial modifications started, up from 31,382 a month earlier.  Another 46,056 modifications are pending borrowers’ final signatures, according to Treasury statistics released Friday. Another 48,924 were denied permanent modifications, mainly because they did not make their trial payments on time, did not hand in the needed paperwork or did not meet the program’s criteria.  Meanwhile, the number of delinquent homeowners in trial modifications rose to 787,231, up from 697,026 a month earlier. 

Housing experts remain concerned that the rate of foreclosures still outpaces the help homeowners are receiving under the program. A record three million homeowners received at least one foreclosure filing in 2009, according to a RealtyTrac report released last Thursday.  A lot of borrowers are too far underwater or don’t have enough income to qualify for a permanent modification, said Celia Chen, senior director at Economy.com. Others will not be able to provide all the documentation needed.  Administration officials said they continue to review the program to make sure it is helping those in need, Chen said she doesn’t think there’s anything the government can do to keep these borrowers in their homes. “As more of these loans fail to make it to permanent modifications, a lot will go back on the market as foreclosures and that will depress home prices,” said Chen, who expects home prices to fall another 10% by the third quarter of this year.

President and Democrats trying to whip up populism in Massachusetts

The Democrats and the White House are scrambling to salvage the special U.S. Senate election in Massachusetts by trying to whip up a populist furor over banks.  Amid reports that financial institutions bailed out by the government are enjoying healthy profits and paying generous bonuses, and as a bipartisan commission began hearing testimony on banks’ role in the economic crisis, Senate candidate Martha Coakley (D), Vice President Joe Biden and others used the issue to portray Ms. Coakley, who is vying to succeed the late Edward Kennedy, as tough on bank executives and Republican Scott Brown (R) as coddling them.  This sort of anti-bank populism was popular in the 1930s by demagogues like Father Coughlin, but rarely has a president engaged in this sort of bareknuckle politics to save his agenda.  Polls show declining voter enthusiasm for Mr. Obama’s health-care plan, and Brown has campaigned on a promise to provide the 41st GOP vote to secure a Senate filibuster to scuttle a health-care bill. 

Democratic strategists concede Mr. Obama’s support in the past for a Wall Street bailout has fueled voter anger, particularly among conservatives and supporters of the antiestablishment Tea Party movement who are pouring money and volunteer hours into Mr. Brown’s race.  With the bank tax, “we can take populism back to our side,” a Democratic Party strategist said.  Mr. Brown he opposed the tax because it would most likely be passed on to consumers through ATM fees, among other things. He said banks would have to pay a hefty tax rather than use the money to extend much-needed loans to small businesses.  “If you’re having an uphill battle selling health care in a blue state like Massachusetts, that should send shivers down the spine of Democrats looking at races across the country,” said Brian Walsh, a spokesman for the National Republican Senatorial Committee.  A new Suffolk University poll finds Republican Scott Brown leading Democrat Martha Coakley, 50% to 46%. If Brown wins, ObamaCare dies. He would be the 41st vote to prevent any compromise legislation from coming to the floor of the Senate.

Questionable practices by banks on second liens?

Diana Olick of CNBC has exposed an alleged practice by banks to recoup second mortgages by demanding cash, off the HUD settlement statements, from either real estate agents or the buyers in short sales.  Olick says she has personally heard a recording of a phone conversation between a short sale real estate agent and a second lien lender, during which the second lien lender clearly asked for cash outside of the settlement and threatened to kill the deal without it. “AGENT: Well yes, I don’t want to lose my license, go to jail, I mean, I have to sign…  LENDER: You’re not going to lose your license – we have plenty of realtors who do this, who actually understand how this whole process goes – and they realize that OK, if I want to get this done, this will take place.” 

When asked about the practice, these are the replies from three of the biggest banks:  JP Morgan Chase simply answered, “No Comment,” Bank of America denied the practice, and Citi ’s reply was interesting: “We work very hard to help distressed homeowners find solutions for their financial challenges. In our attempt to amicably resolve the debt, we will generally negotiate a reduced settlement with the homeowner in order to release a second lien. Unlike some lenders who refuse to reduce the payoffs on second liens, we choose to reduce the payoff amounts in some situations to assist the borrower. We do not provide instructions to settlement agents on how to fill out the settlement statement or any other closing documents, and we certainly do not require settlement agents or any other parties to violate applicable laws.”

House List Prices Down 1% in December

Altos Research’s listing price index declined 1% in December and 1.4% during Q409, but the 10-city composite price index was up 5.2% for the year, the company said, adding it projects asking prices to continue to decline during the winter 2010 months.  The average listing price decreased to $494,426 from $499,267 from November to December. The index took a bigger monthly drop in December than it did in November, a result of the season decline in sales activity, Altos Research said.  Miami was the only market of the 26 that Altos Research measures that experienced a gain in listing prices. San Diego and Salt Lake City experienced the greatest listing price declines, down 4.3% and 3.5% respectively. 

Inventories also declined in 24 of 26 markets, the largest drops in Boston and the California markets of Los Angeles, San Francisco and San Jose. New York (2.1%), and Phoenix (0.7%) experienced the only increases for the markets covered. The 10-city composite experienced a 5.1% decrease in listing inventory.  All markets except San Francisco (99 days) had a median days on market of 100 or more days in December. Miami had the slowest turnover with a median of 247 days, more than eight months. The days on market for the 10-city composite was up 8% to 166 days.  The Altos Research study includes existing single-family homes and does not measure condos, town homes or new construction. Each market measured uses results from Census Bureau Metropolitan Statistical Areas (MSA).

Now on to our real estate investing educational section…

In the Know…Startling Starts & Other Frightening Facts

Information is power so it should come as no surprise that savvy short sale investors make a point of staying in the know. Today the ShortSale blog is reporting on startling starts and other frightening facts that should motivate even the strongest procrastinator to begin shopping for short sale deals in earnest.

Housing Starts

Housing starts have traditionally been a lagging indicator for the real estate market but it is a delicate balance at best. On one hand the population continues to grow even as older homes become obsolete. Data recently released by HUD indicates the number of housing starts at the end of 2008 were a mere 905,000…the lowest in recorded history. In fact, the last time housing starts approached this level was in 1975…since then we’ve added several hundred millions to the population. It should also be noted, the late 70’s and early 80’s were marked by rapidly rising interest rates and tremendous price jumps in the rental market. Short sale investors should take note and position themselves for potential gains. Remember, history may not always repeat itself but it often rhymes.

Not Privately Built

For those that point to private builders as possible rationale for the low number of housing starts, it should be noted the number of new privately owned housing units completed has also fallen to one of the lowest rates in recorded history – barely topping 1,119,700 by the close of 2008. In contrast, 1982 recorded the absolute lowest number of private completions with only 1,005,000 yet again reflecting a higher percentage of the total population.

Not Manufactured

Forget manufactured homes – sales are so dismal the entire industry is facing possible ruin. In fact, sales and shipments are so lackluster they are but a fraction of former years with a mere 82,000 units shipped in 2008. Compare to 378,000 ten years ago, it’s easy to see manufactured homes are not picking up the slack when it comes to affordable housing alternatives.

Bottom Line: Although the number of delinquent properties and shadow inventory continue to rise, early indications seem to point toward a day of reckoning in the future. Once existing inventory is purchased, expect a significant lag time to meet growing demand. Currently distressed homeowners have reduced expenses, moved in with family members and made other temporary arrangements in the hope of “riding out the storm” but short term solutions will eventually give rise to the need for permanent housing. The statistics speak for themselves, inventory is no longer growing sufficiently enough to meet long term need. Position yourself for profitable opportunities both today and tomorrow by using short sales to build a long term portfolio from the proceeds of short term profits.

See you at the top!

Chris McLaughlin

**************

Copyright Loss Mitigation Institute LLC 2009.

All Rights Reserved.

http://www.shortsalesriches.com
http://www.shortsalescoach.com
http://www.sixfigurebpo.com
http://www.reomillionaireclub.com
http://www.youtube.com/shortsalesriches 

http://www.realestaterichesnews.com/news (subscribe to this newsletter)

*************************************************
Finally, a blog for Real Estate professionals
that want up-to-the-minute news, & how it impacts
us and our market…
http://www.shortsalesriches.com/blog

*************************************************

About the author:

Chris McLaughlin is widely known as America’s top
Real Estate Attorney and Investment Consultant.

    * As the top Florida foreclosure and pre-
      foreclosure expert, he oversees more than
      100 short sale & REO closings each month
   * Long-time authority on real estate investing
      and rapid reselling of distressed homes.  Owns
      portfolio of nearly 100 high-value, high-profit
     properties
    * Owner of one of Florida’s largest Real Estate firms,
     running 4 different offices, supporting over
     400 agents, uniquely positioning him to help
     thousands of investors make money in the
     biggest market opportunity ever!
    * Highly sought-after speaker, consultant, and
      seminar leader for current trends and hot topics
      in Real Estate Investing, Entrepreneurship, and
      Wealth Building
    * Follow me on Twitter: http://twitter.com/mclaughlinchris
    * Join my Facebook Fan Page: http://www.mclaughlinchris.com
–

* Follow me on Twitter: http://www.twitter.com/mclaughlinchris

* Join my Fan Page: http://www.mclaughlinchris.com

****************

Foreclosure filings fall as loan modifications slow judicial process

According to RealtyTrac, an online marketer of foreclosed properties, there were 306,627 foreclosure filings last month, making November the fourth straight month of decline (3% drop in October, 4% in September and 1% in August).  Nearly 307,000 households received a foreclosure-related notice in November, and banks repossessed about 77,000 homes last month.  Foreclosure filings were still up 18 percent from a year ago, and a new wave is expected next year as unemployment stays high and borrowers default out of loan modification programs.  “This is providing a welcome respite for the real estate industry, but a full recovery will only come when unemployment recedes to normal, healthy levels and when availability of credit reaches a more rational balance between the extremes of the past few years,” RealtyTrac CEO James Saccacio said.  RealtyTrac spokesman Rick Sharga isn’t convinced the decline is a natural outgrowth of improved market conditions.  “I really don’t believe we’re looking at a trend that suggests the problem is going away,” he said. “Much of the drop was artificially induced.”  He attributes the stabilization to mandatory mediation programs that some states have introduced. For example, in Nevada, where filings have declined for three months in a row, lenders are required to go through mediation with borrowers before moving forward with foreclosure documents. In many cases, Sharga said, these programs just delay the inevitable.  The “sand states” — Nevada, Florida, California and Arizona — continued to amass the largest numbers of foreclosure filings with Nevada the hardest hit state of all. One of every 119 households had a filing in November, nearly four times the national average of one for every 417. 

Unemployment up

A consensus estimate of economists surveyed by Briefing.com expected 455,000 new claims, but the Labor Department said in its weekly report that there were 474,000 initial job claims filed in the week ended Dec. 5, up 17,000 from the previous week’s unrevised 457,000.  The 4-week moving average of initial claims was 473,750, down 7,750 from the previous week’s revised average of 481,500.  The government said 5,157,000 people filed continuing claims in the week ended Nov. 28, the most recent data available. That’s 303,000 down from the preceding week’s revised 5,460,000 claims.  The 4-week moving average for ongoing claims fell by 123,500 to 5,416,500 from the previous week’s revised 5,540,000.  Unfortunately the slide probably just signals that more filers are dropping off those rolls into extended benefits.  Jobless claims in 21 states declined by more than 1,000 for the week ended Nov. 28, the most recent data available. Claims in California dropped the most, by 28,672, which the state attributed to a shorter work week due to the Thanksgiving holiday and fewer layoffs in the service industry.  Seven states said the claims increased by more than 1,000. Claims in Wisconsin jumped by 8,067, which a state-supplied comment said was due to layoffs in the construction, service and manufacturing industries.

HAMP a failure

An editorial in the Providence Journal succinctly outlines the reasons President Obama’s program to curb foreclosures appears to be failing.  The Home Affordable Modification Program (HAMP) offered incentives to mortgage companies to reduce payments for struggling homeowners, but as of September only about 1,700 homeowners had passed through all the necessary hoops to win a new permanent loan modification. In the meantime, foreclosures are on the upswing and well over a million mortgages were 60 days past due in October.

 HAMP was not designed to deal with one of the biggest aspects of the foreclosure problem: falling home values that leave borrowers “under water,” owing more than their houses are worth. Primarily, HAMP is aimed at reducing interest payments but not principal. Not surprisingly, underwater borrowers are not rushing to sign up, and they’re not finding much help when they do.  Participants in the program have to show their worthiness by completing a series of trial payments, and around 650,000 borrowers have done that. But many say they are subjected to disorganized claims for additional paperwork, and others fail to provide the necessary documents in the first place.  Last year, foreclosure sales topped 1 million. This year there were fewer, thanks to loan-modification efforts and moratoriums, but the danger of a stalled HAMP is that another new wave of foreclosure sales could swamp the market, sending home prices back down and threatening the economic recovery.

Trade deficit narrows

A Commerce Department report shows the U.S. trade deficit narrowed unexpectedly in October as the weak U.S. dollar helped boost exports and demand for imported oil fell to its lowest daily level since January 2000.  The trade gap shrank 7.6 percent to $32.9 billion, from a downwardly revised estimate of $35.7 billion in September. Analysts surveyed before the report had expected the gap to widen to about $36.8 billion.  The smaller-than-expected trade gap is likely to prompt analysts to raise their estimates of fourth-quarter economic growth and is good news for the Obama administration, which sees export growth as an avenue for creating jobs. 

Overall trade volume remains well below last year. But the bigger drop in imports than exports in 2009 could cut the trade gap almost in half from last year’s $696 billion.  The deficit totaled nearly $304 billion through October versus $611 billion in the same period in 2008.  The closely watched U.S. trade deficit with China widened in October to $22.7 billion, the highest since November 2008.  U.S. exports to China rose to a record $6.9 billion, but were still swamped by the highest imports from the Asian giant since October 2008.

Renting up, underwater foreclosures coming

The Wall Street Journal reports that thanks to a rare confluence of factors — mortgages that far exceed home values and bargain-basement rents — a growing number of families are concluding that the new American dream home is a rental.  The U.S home-ownership rate has charted its biggest decline in more than two decades, falling to 67.6% as of September from a peak of 69.2% in 2004. And more renters are on the way: Credit firm Experian and consulting firm Oliver Wyman forecast that “strategic defaults” by homeowners who can afford to pay are likely to exceed one million in 2009, more than four times 2007’s level.

Analysts at Deutsche Bank Securities expect 21 million U.S. households to end up owing more on their mortgages than their homes are worth by the end of 2010. If one in five of those households defaults, the losses to banks and investors could exceed $400 billion. As a proportion of the economy, that’s roughly equivalent to the losses suffered in the savings-and-loan debacle of the late 1980s and early 1990s.  The flip side of those losses, though, is massive debt relief that can help offset the pain of rising unemployment and put cash in consumers’ pockets.  “It’s a stealth stimulus,” says Christopher Thornberg of Beacon Economics, a consulting firm specializing in real estate and the California economy. “The quicker these people shed their debts, the faster the economy is going to heal and move forward again.”

Now on to our real estate investing educational arena …

How to Pick the Perfect Loan

A lot has been written about interest rates and credit scores but few people focus on how to pick the perfect loan. While it might not sound like the most exciting part of purchasing a short sale property, it is one of the most important decisions you are likely to make. As millions of Americans have already learned, obtaining the wrong loan can be a very costly decision. Fortunately, it’s relatively simple to secure a great loan that works well for your individual situation once you are aware of all your options. Follow these quick steps to help find your perfect loan:

1. Determine your down payment. The larger your down payment the more options you will have available but always leave a little additional cash for emergencies and other needs.

• 0-5 Percent Down Payment: VA loans for veterans or Vendee loans for foreclosures.
• 3.5 – 5 Percent Down: FHA or HUD loan for purchase of primary residence only.
• 5 to 10 Percent Down: Conventional Loan with strong credit score.
• 20 Percent Down: Conventional Loan without PMI or inferior credit score.
• 20 to 30 Percent Down: Investment loans, vacation or second homes.

2. Determine the term. Right now fixed rate loans are at or near historic lows so if you intend to hold the property for any length of time, it’s a good idea to take a serious look at 15 to 30 year terms. Interest only and ARM (Adjustable Rate Mortgages) remain a solid investment for those who understand the pros and cons.

• 30 Year Term: Select a 30 year term if you intend to remain in the property for many years, plan to turn it into a rental property at a later date, are on a limited fixed income or are expecting to be on a fixed income in the future and want minimum payments with maximum flexibility. Remember, you can always pay more on the loan should you desire.
• 15 Year Term: Select a 15 year term if you want to obtain the lowest possible interest rate with steady fixed payments, become debt-free as soon as possible, save tens of thousands of dollars over the life of the loan and you have ample yet steady income.
• Interest Only: Select an interest only loan if you want to lock in a great price on a property, want to get started in real estate investments with a modest amount out of pocket, expect to have dramatically higher income within a few years (for example, you are in college, paying off significant debt or will have a spouse/other return to work) or are buying in an area experiencing rapid appreciation.
• ARM/Option ARM’s: Select an adjustable rate mortgage if you plan to use the property for cash flow then sell, need the minimum payment for a  short period of time then expect to have significantly more cash in the future and/or wish to use an alternative to a Jumbo Loan.

See you at the top!

Chris McLaughlin

**************

Copyright Loss Mitigation Institute LLC 2009.

All Rights Reserved.

http://www.shortsalesriches.com
http://www.shortsalescoach.com
http://www.sixfigurebpo.com
http://www.reomillionaireclub.com
http://www.youtube.com/shortsalesriches 

*************************************************
Finally, a blog for Real Estate professionals
that want up-to-the-minute news, & how it impacts
us and our market…
http://www.shortsalesriches.com/blog

*************************************************

About the author:

Chris McLaughlin is widely known as America’s top
Real Estate Attorney and Investment Consultant.

    * As the top Florida foreclosure and pre-
      foreclosure expert, he oversees more than
      100 short sale & REO closings each month
   * Long-time authority on real estate investing
      and rapid reselling of distressed homes.  Owns
      portfolio of nearly 100 high-value, high-profit
     properties
    * Owner of one of Florida’s largest Real Estate firms,
     running 4 different offices, supporting over
     400 agents, uniquely positioning him to help
     thousands of investors make money in the
     biggest market opportunity ever!
    * Highly sought-after speaker, consultant, and
      seminar leader for current trends and hot topics
      in Real Estate Investing, Entrepreneurship, and
      Wealth Building
    * Follow me on Twitter: http://twitter.com/mclaughlinchris
    * Add me on Facebook: http://www.facebook.com/mclaughlinchris
    * Join my Fan Page: http://www.mclaughlinchris.com
–

Real Estate News & Commentary by Chris McLaughlin, April 24, 2009
http://www.shortsalesriches.com/welcome.html

——–

No money, no credit – but an honest desire to succeed? 

That’s all it takes to get into the lucrative business of

finding and flipping short sale properties.  We’ve had

people go from zero to six figures in less than six months! 

 

See if there’re any spots left for this webinar this

Sunday at 8:00 PM ET, 5:00 PM PST:

 

https://www2.gotomeeting.com/register/386978354

———

 

BOA loosening short seller policy

 

Bank of America (BOA) says it will relax its policy on payoffs connected with short sales.  Large banks have been demanding money for home equity lines and second mortgages that would otherwise be worthless if the short sale property went to foreclosure.  BOA has been among the least cooperative of all banks in agreeing to short sale payoff terms, demanding 10 percent of what the homeowners owed on the equity line balance or second mortgage before signing off on the short sale, which is necessary for the deal to go through.  BOA spokesman Terry Francisco says the new policy is “less arbitrary, more rational.”

 

New policy

BOA’s new policy is to ask for five percent of the sale proceeds on the short sale, net of realty commissions, closing, and other costs. Some short sellers point to problems, though:  The bank’s previous 10 percent policy meant they’d demand $20,000 on a $200, 000 equity line balance, but under their new policy it will cost the short seller $15,000 if the net proceeds are $300,000″ on a short sale, even though the economic value of their holding may in fact be zero. Says the Realty Times:  “Bottom line for investors: If there’s a Bank of America second mortgage or credit line on the house you’re after in a short sale, work the new numbers.  At least some of the time you might be surprised that the answer from the big bank is now ‘yes.’”

 

MBA Chairman testifies

David G. Kittle, CMB, Chairman of the Mortgage Bankers Association (MBA) testified yesterday in front of the House Financial Services Committee at a hearing on H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act of 2009.  He expressed reservations about some aspects, including the patchwork of state and local mortgage lending laws and the requirement that lenders retain at least five percent of the credit risk of non-qualified mortgages.  According to Kittle, the risk retention provision would make it impossible for many lenders to compete, lessening credit availability increasing costs to borrowers.  He also asserted that the definition of “qualified mortgage” was too restrictive, including in its present definition some jumbo loans, fixed 25 – 40 year mortgages, FHA, VA, and even some Fannie and Freddie mortgages.

 

Freddie Mac grows portfolio and delinquencies

Freddie Mac, announced that its mortgage investment portfolio grew by an annualized 65.8 percent rate in March, while delinquencies on loans it guarantees accelerated.  Its portfolio increased to $867.1 billion, for an annualized 31.0 percent increase year to date, up from  $712.5 billion in March 2008.  The delinquencies that increased stress on the company’s capital jumped to 2.29 percent of its book of business in March from 2.13 percent in February and 0.77 percent in March 2008.  Freddie Mac said the temporary suspension of foreclosures, which expired on March 6, contributed to the increase in single-family delinquency rates.

 

Durable good sales fall again

The Commerce Department said today that new orders for U.S. durable goods slipped 0.8 percent in March, falling for the seventh month out of the last eight, even though the fall was less than expected.  Analysts polled by Reuters had forecast orders for long-lasting manufactured goods to drop 1.5 percent.  Anna Piretti, senior economist at BNP Paribas in New York says, “I wouldn’t really read this as positive news, but clearly I would say the momentum is less negative than we saw a couple of months ago.”  Where have we heard that before?

 

Now on to our real estate investing education section…

 

Ride the Green Tide: Timely Short Sales Tips

 

Short sale investors searching for unique ways to differentiate their property from the competition need only go green. Whether or not you are a tree-hugger or simply business savvy, riding the green tide is an excellent way to attract the attention of prospective buyers, qualify for potential tax breaks, take advantage of tax credits and actually increase the selling price of homes in your portfolio.

 

Use these calculations to determine if it is worth the time and money to transform a former energy hog into a lean, green energy efficient money machine:

 

Tally up the total cost of the improvement including labor, taxes and supplies.

 

Discount city, county, state or federal tax incentives or other credits you may be eligible to receive.

 

Calculate the long term potential energy savings as compared to standard builder’s model of the same item. Be sure to quantify this in very specific terms for each upgrade put into place. For example, let’s assume you install a new water heater expected to save an additional $20 per month or $240 annually. Over a 30 year mortgage that water heater would save $7,200 in energy costs alone.

 

Since most people don’t think that far ahead also include a five to seven year calculation…ie, in five years it would save an additional $1,200. Do this for each item in the home to show potential buyers how buying your home makes financial sense both today and in the future.

Add up the five, seven and thirty year savings then do a little bragging. Don’t assume it is obvious…make it a selling point to show how cost effective this home is compared to others on the market.

 

Get creative. Often some of the best ideas cost the least. For example, changing bulbs to energy efficient models is an inexpensive modification that adds significant savings to the bottom line of buyers. Here are a few other green ideas to get you started:

 

Appliances – stove, refrigerator, dishwasher, microwave etc…

 

Lighting – search for florescent and/or LED

 

Water Heater, Pool/Jacuzzi Heater

 

Local landscaping – less water and less time

 

Tile floors – easy to keep clean and never need to be replaced like carpeting

Ceiling fans, whole house fans and other alternative cooling methods

 

See you at the top!

 

 

Chris McLaughlin

http://www.shortsalesriches.com/welcome.html  

 

P.S.

 

Don’t miss our webinar Sunday at 8:00 PM ET, 5:00 PM PST:

 

https://www2.gotomeeting.com/register/386978354

 

Copyright Loss Mitigation Institute 2009.
All Rights Reserved.

http://www.shortsalescoach.com
http://www.shortsalesriches.com
http://www.reomillionaireclub.com 
http://www.sixfigurebpo.com *************************************************
Finally, a blog for Real Estate professionals
that want up-to-the-minute news, & how it impacts
us and our market…
http://www.shortsalesriches.com/blog

*************************************************

About the author:

 

Chris McLaughlin is widely known as America’s top
Real Estate Attorney and Investment Consultant.

 

    * As the top Florida foreclosure and pre-
      foreclosure expert, he oversees more than
      100 short sale & REO closings each month

   * Long-time authority on real estate investing
      and rapid flipping of distressed homes.  Owns
      portfolio of nearly 100 high-value, high-profit
     properties

    * Owner and Supervising Broker of one of Florida’s
     largest Real Estate firms, running 4 different
     offices, supporting nearly 450 agents, uniquely
     positioning him to help thousands of investors
     make money in the biggest market opportunity ever!

     * Highly sought-after speaker, consultant, and
      seminar leader for current trends and hot topics
      in Real Estate Investing, Entrepreneurship, and
      Wealth Building

     * On twitter: http://twitter.com/mclaughlinchris
     * On facebook:

http://www.facebook.com/addfriend.php?id=709199143

—

Real Estate News & Commentary by Chris McLaughlin, April 20, 2009
http://www.shortsalesriches.com/welcome.html

——–

No money, no credit – but an honest desire to succeed? 

That’s all it takes to get into the lucrative business of

finding and flipping short sale properties.  We’ve had

people go from zero to six figures in less than six months! 

 

See if there’re any spots left for this webinar this

Tuesday at 8:30 PM ET, 5:30 PM PST:

 

https://www2.gotomeeting.com/register/530620442

———
Freddie Mac says housing sales are near bottom

 

Frank Nothaft, chief economist of Freddie Mac, said on Saturday that housing sales are nearing a bottom, with foreclosures accounting for a third of all sales.  But you knew there’s a “but” coming, right?  Yup…Nothaft added that unemployment and house price declines will trigger foreclosures as prime borrowers become delinquent and add to foreclosure risk.  But he did point out that Federal Housing Administration lending is up sharply, with FHA loans at the largest share of the U.S. housing market since 1942, and mortgage rates at a 50-year low.

 

BoA reports profit-sort-of-maybe

 

Bank of America joined the parade of sort-of-profitable banks, reporting a first quarter profit of $4.2 billion — well ahead of expectations.  But like the others, it warned of “deteriorating credit quality,” which drove the stock sharply lower in early trading.  Lewis cited growing credit problems at the bank, specifically the firm’s consumer-related loan portfolios, as more and more Americans found themselves out of work or filing for bankruptcy.  Bank of America’s credit card division, for example, swung to a net loss of $1.8 billion during the quarter, hurt by rising credit costs.  The bank also added $6.4 billion to its loan loss reserves in the quarter.  No one knows the extent of the credit card meltdown – the next wave of trouble to hit the economy, and even printing bundles of money won’t help that.  Ken Lewis, Bank of America’s chairman and CEO said in a statement:  “We understand that we continue to face extremely difficult challenges primarily from deteriorating credit quality driven by weakness in the economy and growing unemployment.”

 

Key survey says recession slowing

 

The key National Association of Business Economics’ (NABE) April Industry Survey “provides fresh evidence that the U.S. economy’s recession is abating,” said Sara Johnson, an analyst on the survey and an economist at IHS Global Insight.  “Declines still out number gains, but fewer firms are reporting declines and more are reporting gains,” Johnson said in a statement.  “This suggests that the economy is at an inflection point but has not yet reached a turning point.”  Employment also remained depressed in the first quarter, with 39% of firms reducing payrolls, and only 14% adding workers.  But the outlook for jobs in the near future is slightly better: 33% of companies plan to reduce payrolls over the next six months, while 16% plan to increase employment.  More telling is that income levels were dismal in the first quarter.  For the first time in the history of the survey, more firms were reducing wages and salaries than raising pay.  The survey is based on data from 109 businesses and industry groups from the first quarter of 2009. 

 

Paul Volker says recession will slow

 

Adding to NABE’s prognosis, Paul Volcker, senior economic adviser to President Barack Obama, said that the U.S. economic recovery will be a “long slog” but that the rate of decline “is going to slow.”  Speaking at a financial markets conference at Vanderbilt University in Nashville, Tennessee, Volcker called it a “great recession,” as opposed to a Great Depression.  “The lack of a good strong recovery works against a strong financial system,” he said.  The financial system “is not quite comatose, but it’s on life support.”  Volcker warned against a rush by Congress to act too hastily on financial reforms and an overhaul of the financial system.  “The temptation is to act quickly, but we have to act comprehensively,” he said. 

 

Now on to our real estate investing education section…

 

Fighting Fair – Foreclosure Requirements Take Toll on Short Sales

Short sale investor are increasingly confronted with the prospect of losing out on a short sale deals as sellers seek to maximize the time they are able to live in a home for “free.”   A plethora of informational items are advising sellers to fight foreclosure and use stall tactics including entertaining multiple short sale offers and fighting foreclosure technicalities.

Learn how to identify stalling tactics and avoid wasting time on sellers playing the waiting game by understanding the basics of foreclosure requirements and delay techniques.

Foreclosure Requirements

1. Notice of Default – must contain information on money owed and time allotted for payment.
2. Recording of Notice of Default
3. Notice of Property Sales Date
4. Notification of Redemption Period
5. Notification of Foreclosure Commencement
6. Publication of Intended Foreclosure in public forum/legal notices.

Each of these may be governed by specific state requirements but should provide a general overview of the major steps. If any of the above are not specified or fail to conform to time or other legal requirements the current homeowner has the right to petition or file a complaint, effectively extending the time period to comply.

Short Sale Steps

Short sale investors may be able to spot potential delay tactics merely by asking if the seller is entertaining other offers; be cautious when working with a seller that seems minimally concerned with the details and overly concerned with obtaining a written offer of any type. While it could simply be an indication of a motivated seller, it may also be a play designed to keep the stream of offers rolling in while they are busy at work elsewhere.

Some short sale investors have the opportunity to actually review paperwork held by the seller.  If you are fortunate enough to do so, keep an eye out for glaring inconsistencies which could trigger a protracted dispute. The last thing you need to become involved with is an extended closing or convoluted scheme designed to keep the seller in a home rent free while your time and money is tied up with a trip to nowhere.

Learn how to qualify and quantify your positions. Just like any good investor, short sales should have a time and profit potential in mind prior to actually making an offer. Use deadlines and escapes clauses to your benefit in order to maximize returns and minimize headaches. Sweeten the pot by offering a few hundred dollar reward for a quick closing or negotiate other items important to the seller and/or bank to get the deal done in a timely manner. Don’t be afraid to think out of the box but avoid unnecessary complications that could become a stumbling block in their own right.

See you at the top!

 

 

Chris McLaughlin

http://www.shortsalesriches.com/welcome.html  

 

P.S.

 

Don’t miss our webinar Tuesday at 8:30 PM ET, 5:30 PM PST:

 

https://www2.gotomeeting.com/register/530620442

 

P.P.S.:

Check out one of the ShortSalesRiches students holding himself as well as us accountable to whether the system truly works!  Go here now to

watch the videos from John Michailids:

http://www.youtube.com/shortsalesriches

and

http://www.willjohnmakeit.com

 

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All Rights Reserved.

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About the author:

 

Chris McLaughlin is widely known as America’s top
Real Estate Attorney and Investment Consultant.

 

    * As the top Florida foreclosure and pre-
      foreclosure expert, he oversees more than
      100 short sale & REO closings each month

   * Long-time authority on real estate investing
      and rapid flipping of distressed homes.  Owns
      portfolio of nearly 100 high-value, high-profit
     properties

    * Owner and Supervising Broker of one of Florida’s
     largest Real Estate firms, running 4 different
     offices, supporting nearly 450 agents, uniquely
     positioning him to help thousands of investors
     make money in the biggest market opportunity ever!

     * Highly sought-after speaker, consultant, and
      seminar leader for current trends and hot topics
      in Real Estate Investing, Entrepreneurship, and
      Wealth Building

     * On twitter: http://twitter.com/mclaughlinchris
     * On facebook:

http://www.facebook.com/addfriend.php?id=709199143

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