Forward this e-mail to your friends! 

Then they can subscribe directly at the following link: 

http://www.smartrealestatenews.com/ 

*** Join Chris’ Facebook Fan Page–> http://www.mclaughlinchris.com

*** Follow Chris on Twitter–> http://www.twitter.com/mclaughlinchris

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

What if I could show you how to not only have the

deals coming in automated, but also show you how to

automate your buyers list as well and have all the

money you need for you deals all in one spot?

Let me show you how in our no–charge class this Sunday night at 8:30 PM ET, 5:30 PM PST:

Click below to reserve your spot now! —->

https://www2.gotomeeting.com/register/277256218
*********************************************************
CNBC’s Olick – foreclosure delay means big trouble

“JP Morgan Chase told CNBC on Wednesday that it will delay more than 56,000 foreclosure proceedings due to paperwork that was signed, ‘without the signer personally having reviewed those files.’  That came on the heels of GMAC halting foreclosures and evictions in 23 states for roughly the same reason. All this leads anybody with a heartbeat to figure that other large servicers will likely follow suit, as potential lawsuits abound.  So what will that mean to the larger foreclosure crisis and the already weakening housing recovery?  ‘It’s clear the pace of foreclosures will slow down,’ says Laurie Maggiano, Policy Director in the Treasury Department’s Homeownership Preservation Office.  ‘As of right now this is a policy and procedure issue until proven otherwise, but never underestimate mid-term electioneering,’ says mortgage consultant Mark Hanson. ‘If this does go to the next level (i.e. national foreclosure moratorium, fear that hundreds of thousands of foreclosures have been performed illegally, etc.), the unintended negative consequences on the mortgage market, MBS investors, banks’ balance sheets and ultimately the housing market will be significant. ‘ 

We’re already seeing threats of ratings agency downgrades on all the major servicers, not to mention the threat to housing’s overall recovery. If the bulk of these cases are valid, then delaying them is only going to prolong the pain.  ‘Worst case is that the current foreclosure problems turn out to be industry-wide and trigger a landslide of legal challenges that lock up foreclosures resolutions for a year or more,’ says Guy Cecala, publisher of Inside Mortgage Finance.  That means all kinds of borrowers would sit in their homes free of charge, banks would be unable to get any return at all, and the housing market would still be facing the inevitable: ‘We may then see a [foreclosure] surge at some point in the future,’ notes Treasury’s Maggiano.  We’ve talked an awful lot about artificial government stimulus skewing the housing recovery as it tries to help; that’s nothing compared to the potential for this latest scandal to wreak havoc on housing yet again.”

Dodd-Frank bill more trouble for business

Acting Comptroller of the Currency, John Walsh spoke before the Committee on Banking, Housing and Urban Affairs Thursday, about the challenges facing his office in adapting to the Dodd-Frank Act — citing the transition as a “mammoth effort.”  His sentiment was reiterated in a letter to Congress from the National Association of Federal Credit Unions.  “The additional requirements imposed by Dodd-Frank have created an overwhelming number of new compliance burdens, which will take credit unions considerable time and effort to resolve,” the letter said. “A slightly longer period for implementation of Dodd-Frank — up to 24 months — would help alleviate some of these burdens and give credit unions more time to comply.”  Walsh said the biggest task right now is integrating the Office of Thrift Supervision into the Office of the Comptroller of the Currency, which requires the OCC to not only revise its rules, but review and republish the rules for the OTS also. 

The OCC duties under the bill also include supporting the Financial Stability Oversight Committee, whose first meeting is scheduled for tomorrow. Walsh expects that under Basel III, will help advance the Dodd-Frank Act and help absorb some of the present challenges.  The NAFCU, however, sent its own list of recommended changes and potential provisions for Congress to consider, including changes to the appraiser independence standard (mandatory reporting requirements on credit unions and other lenders who believe an appraiser is behaving unethically or violating applicable codes and laws, with heavy monetary penalties for failure to comply) and the Bureau of Consumer Financial Protection’s power to preempt consumer protection rules.

Personal income up

The Commerce Department says personal income rose 0.5% in August, the largest increase this year, while spending by individuals rose only 0.1 percent for a fourth straight month.  Personal income increased $59.3 billion, or 0.5% last month, said. That’s more than the 0.3% rise economists expected.  Meanwhile, spending by individuals rose $41.3 billion, or 0.4%, matching the gain from the previous month.  Analysts polled by Reuters had forecast spending, which accounts for about 70 percent of U.S. economic activity, rising 0.3 percent in August.  A consensus of economists polled by Briefing.com had also expected personal spending to climb 0.3% in August. In August, spending was supported by a 0.5 percent rise in personal income, the largest rise since December, the Commerce Department report showed.

The rise in incomes was above market expectations for a 0.3 percent increase and followed a 0.2 percent gain in July.  Spending adjusted for inflation rose 0.2 percent after a similar gain in July. The fourth straight month of gains offered hope that consumer s continued to prop up economic growth in the third quarter. Spending grew at an annual 2.2 percent pace in the second quarter, with overall gross domestic product expanding at a 1.7 percent rate, the government reported on Thursday.  With spending a touch below the 0.5 percent rise in disposable income, the saving rate edged up to 5.8 percent from 5.7 percent in July. Savings rose to an annual rate of $661.9 billion.

New York prices stabilize

Manhattan apartment prices were up year-over-year in the third quarter as more residents bought larger apartments, according to the city’s biggest brokerages.  The median price was $914,000, up 7.5% from a year earlier, according to a report from Prudential Douglas Elliman.  The Corcoran report said the median price was up 9% to $900,000 since last year.  “Prices are jumping because of a shift in the mix,” said Jonathan Miller, who writes the Elliman report.  Studio apartments’ share of the market fell by 8% while two-bedroom apartments’ share rose by the same amount, he said.  The median price of a two-bedroom is about three times higher than a studio’s median price.  “Market-wide price metrics have stabilized” and even in some cases improved, Liebman said.  Prices of new housing as opposed to resale on the West side rose compared with both last year and last quarter, while the median price of existing condominiums on the East side rose 28%, according to the Corcoran report.  This quarter, 27.7% of Manhattan’s listings sustained price cuts, but that is 14% less than last quarter and 29.4% less than a year ago.  Also, condo resales spent 17.5% less time on the market than last year, while co-ops spent 19% less time, StreetEasy.com said.  Manhattan’s Midtown East section, within walking distance of its main office district, saw the most home closings, with 300 closings at a median price of $687,500, according to StreetEasy.com.”

Stimulus gone, jobs gone

Tens of thousands of low-income workers lost their jobs Thursday as a stimulus-subsidized employment program came to an end.  About a quarter of a million people in 37 states were placed in short-term jobs thanks to a $5 billion boost to the Temporary Assistance for Needy Families program, according to the Center on Budget and Policy Priorities. States used about $1 billion to provide subsidized employment, with the remaining funds going to cash grants, food programs, housing assistance and other aid.  About half the jobs were summer employment for youth and the rest were for disadvantaged parents. Each state configured its initiative differently. Some covered all the workers’ wages for a few months, while others paid for a portion of their salary.  With the program expiring, many of the adults have been told not to report to work anymore.  A handful of states will continue to operate the programs for another few months, but most of those will be downsized considerably.

Now for our real estate education section…

Learn a Lesson from the Big Boys…aka What’s in the Works for 2011 and Beyond

Ever wish you had a crystal ball to know what is in the works for next year’s marketing campaigns? Today we are going to give you a taste of what is to come for 2011 and beyond. Not only is it a great way to position your own real estate and short sales messages to appeal to the same crowd as that targeted by the big boys but riding the wave of something “bigger” is a great way to cash in on the top trends for the coming year.

Cause Marketing -  Forget “shock and awe”…today’s hottest trend in the financial, service and even communication industry is “cause” marketing. Need a new credit card? Select one that automatically donates to your favorite charity. Savvy real estate and short sale professionals trying to reach a concerned target market should consider visible support for charitable or other common causes. It’s a great way to show your support and gain visibility while taking advantage of tax incentives.

Back to Basics – Making memories never goes out of style but it’s time to get serious about family, friends and social support networks when major outlets like Disney are making it the foundation of their upcoming promotional efforts. Family oriented neighborhoods and other areas that support lifestyle choices are prime targets for the back to basics marketing message.

Ambush Marketing – Have a rowdy crowd that tends to be impulsive, spontaneous and excitable? Build on it by creating exciting campaigns using the latest in technology combined with special events, location related incentives and other fun, festive ventures. Not only does it set you apart but it’s a great way to gain a bit of local press and notoriety.

Green – Eco friendly alternatives might sound like yesterdays news but everyone from car manufacturers to pet products are planning major marketing campaigns around healthy and sustainable living. Real estate and short sale professionals can tap into this growing trend via a number of new ways including environmentally friendly appliance upgrades, access to public transportation or even the re-use of older homes. Take stock of your properties to determine which are able to attract the green market segment.

Local Marketing – Everyone from LexisNexis to the farmer next door is interested in local visibility and because all real estate is essentially local – well, you should be too. Local is the new global in that the appeal extends beyond the normal reach of those buyers or sellers in the immediate area; instead, the new local creates customized opportunities and services that serve the needs of buyers and sellers from diverse backgrounds in a well defined area and context. Specialized expertise and experience is essential.

Price – Bargains still sell….use the recession to your advantage by competing on price whenever possible. Think it won’t work…how long does it take most people to complete this sentence…

“Five – Five dollar…..”

Yes, it’s the Subway theme that you love to hate but it does demonstrate the successful sales strategy of affordable quality. Stay away from “cheap” and emphasize the intelligent aspect of making a great sales transaction. This is an especially helpful solution to those less than impressive properties in need of extensive repairs or renovation.  Add a few discounts or free products (ie, home warranty for someone just starting out, big screen television for a retiree couple, Disney vacation for a family) to up the ante and make them feel great about the decision. Just do what it takes to close the deal and move on to the next transaction.

See you at the top!

Chris McLaughlin
**************

Copyright Loss Mitigation Institute LLC 2010.

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.smartrealestatenews.com (subscribe to this newsletter)

*************************************************
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
–

Real Estate News & Commentary by Chris McLaughlin, July 13, 2009

http://www.shortsalesriches.com

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

How Loan Modification Can Make You Rich:

Join Us Tuesday Night for a Special Webinar

Join Nathan Jurewicz as he interviews the

nation’s leading expert on Loan Modifications

and how you can take this information and make

an extra $10,000 or $30,000 a month working PART TIME!

This incredible webinar will give you exact details

of how you can do 3 simple things that you can even

farm out and it will Fix this Economy, Make You Money,

and Help Home Owners all in one very easy 3 step

process that is repeatable and is guaranteed!

And it doesn’t cost you a cent to find out about it:

https://www2.gotomeeting.com/register/675252714

Commercial construction activity to drop in 2009 and 2010

Economic downturn will lead to a drop in construction activity this year and next, according to the American Institute of Architects (AIA). In its report, AIA says spending on construction of offices, retail centers, and hotels will fall 16% in 2009 and 12% in 2010. “We’ve had a really rocky six months in the economy and in the construction sector,” said Kermit Baker, AIA’s chief economist. “People are seeing a real tough environment out there and not a lot of incentive to invest in projects.” Economists do not see any of the indicators being conducive to growth in commercial construction. Jobless rate is nearing 10% while consumer sentiment is showing no signs of improvement. Economic recovery is critical to commercial construction since non-residential construction lags behind the economy. “Why do you build new office buildings? You need to see job numbers pick up,” Baker said. “Why do you build new retail centers? You need to see consumer spending pick up.” According to AIA, hotel construction is likely to drop 26% in 2009 and 17% in 2010, while industrial spending will drop 0.8% in 2009 and 28% in 2010.

“The credit pendulum is stuck at stupid”

While analysts say buyers are getting great deals in the housing market, home buyers are not finding it easy to get a loan. Blame it on tightening of credit norms; even people with good credit score are denied loan. In addition, new norms such as borrowers having to produce at least 2 years of sufficient tax returns are posing problems for first-time buyers who have just begun their career. Bankers and brokers believe many borrowers who are being refused home loans now would have most definitely been accommodated in the past when lending norms were lot more lenient. “The credit pendulum is stuck at ‘stupid,’” said Lou Barnes, an owner of Boulder West Financial Services, a mortgage bank. “I am turning down loans every day that my grandfather in his Ponca City, Okla., savings and loan in 1935 would have been happy to make. And he was tough.” Fannie Mae recently changed its policies to count only 70% of the value of stocks and bonds towards valuing borrowers’ assets while considering their loan application. Earlier, 100% of the value was considered. Stuart Fraass of Guaranteed Rate, says, “If you’re self-employed, you have virtually no chance of getting a mortgage now.” While no one wants to return to lax lending standards of 2006 which led to the housing bubble, analysts believe excessive tightening of credit norms could hurt a housing market recovery. Banks, having been bitten, are shy now; at least for the time being.

No takers for luxury homes

Remember Veblen goods, those that defy law of demand? Veblen goods are high-status goods, the demand for which rises when price increases. Buyers’ perception of exclusivity may go up when the price rises, thereby making the good even more preferable. Luxury homes, which seemed to defy the law of demand in the past, have been impacted in the current economy. “In the high end we always kind of thought we were immune to this stuff,” says Christy Smith, president of Casas del Oso Luxury Homes. According to Smith, his company sold luxury homes even before they were completed, in this past. Things are changing now. “After 9/11 we didn’t miss a beat,” says Smith. “But this time with all the stuff on Wall Street there’s a lot of hesitancy.”

A study of decline in the housing market reveals that high-end homes have fallen more in value than lower-priced homes. Ken Shuman, spokesman for Trulia, says sellers reduced prices of $2 million and above homes by 14.3% in June as against a 9.75% drop for homes that are less than $2 million. In addition, large mortgage loans are more difficult and expensive to get than smaller loans. “There is no second market for jumbo mortgages right now,” says Peter Grabel, a mortgage banker with Luxury Mortgage. Analysts don’t see the high-end housing market recovering in the near-future. “I think it’s going to be a long time,” says Jim Randel, a Connecticut real estate attorney and author of “The Skinny on the Housing Crisis.” Randel said: “I don’t know if that means five years, ten years or what.”

States introduce program to help homeowners

According to a report prepared by the State Foreclosure Prevention Working Group of the Conference of State Bank Supervisors last spring, about 80% of the struggling homeowners had not taken advantage of the mortgage-modification program. State governments, realizing the need to do their bit, have introduced programs to help homeowners. New Jersey and Connecticut have programs which require lenders to meet with borrowers and court-appointed mediators during the process of foreclosure. The idea is to see if the number of foreclosures can be brought down. Roberta Palmer, who oversees Connecticut’s Foreclosure Mediation Program, says, “When people are in crisis, the more you ask them to do, the less likely it is they’ll participate.”

According to Palmer the program has so far attracted 2,500 borrowers to mediation and nearly 60% have reached settlements that permit them to remain in their homes. In New Jersey, 614 borrowers qualified for mediation by end May, and of those, 223 have reached settlements allowing them to keep their homes, according to Eric Max, the director of the Office of Dispute Settlement at New Jersey’s Department of the Public Advocate. New York has introduced a pilot project with $20 million of city funds, to convert empty or stalled condominium developments into affordable housing. “It’s not going to solve all of these problems by any means but it allows us to throw out a net and see what we pull in,” said Marc Jahr, president of New York City’s Housing Development Corporation. “We see an opportunity here to really capture affordability at a relatively inexpensive price to the public and to do it in a timely manner.”

President Obama says stimulus plan is working

President Barack Obama in a statement last week said the stimulus plan is working as intended. “It has already extended unemployment insurance and health insurance to those who have lost their jobs in this recession,” said Obama. Critics of the stimulus plan say the $787 billion initiative has not done enough to stimulate the economy. House Minority Whip Eric Cantor of Virginia said the economic recovery plan was “full of pork- barrel spending, government waste and massive borrowing cleverly called ‘stimulus.’” Cantor said: “The plain truth is that President Obama’s economic decisions have not produced jobs, have not produced prosperity, and have not worked.” The rising jobless rate is having an impact on Obama’s rating. A survey by Quinnipiac University conducted in June shows 49% of Ohio voters approved of Obama’s job performance, down from 62% in the May survey. The disapproval figure for Obama was 44%, up from 31% in May. Obama said the measure “was not designed to work in four months — it was designed to work over two years.”

Now on to our real estate investor education section…

Five Habits of Highly Effective Short Sale Entrepreneurs

What differentiates those that achieve success in short sales from the rest? Often less than you might imagine. With a bit of practice, patience and planning anyone can go from novice investor to self-made success with these five habits of highly effective short sale entrepreneurs.

1. Courage. Sounds easy enough but like the cowardly lion in the Wizard of Oz, acting upon that which we already own isn’t always easy. Courage is expressed in many different ways but unlike other activities, investing in real estate can’t be invented – there are no guarantees and very few ways to “spin” losses. In some ways investing in real estate is a lot like a sales job that is paid on compensation – it’s a direct measure of your own personal productivity and effectiveness.  Now, here is a little known fact discovered by researcher Thomas Stanley in his ground-breaking work regarding the affluent…the number one reason top sales professionals are more successful than others is their ability to ask one simple question; “Will you do business with me?”. It’s the key to self-made success and requires little more than the courage to ask.
2. Knowledge. The second most important habit of effective short sale entrepreneurs is a constant thirst for knowledge. They routinely stay up to date on the world around them as well as invest in their own success by working with mentors, reading and taking the time to know more than others. Plain and simple, learn everything there is to know about your market, your type of investment property, your financial options and other relevant information. Hire experts for those areas outside of your expertise.
3. Think Big. Effective short sale entrepreneurs might start small but they think big. They are not satisfied with the status quo nor do they falter when confronted with resistance or obstacles; instead, they merely recognize these as the natural growing pains associated with expansion. Likewise, the most successful entrepreneurs surround themselves with people more successful than themselves rather than vice versa. Forget the ego trip that comes from being the wealthiest, smartest or most savvy investor in the room…instead, opt for the opportunity, knowledge and networking potential that comes from being the least successful in the room.
4. Credible. Without a doubt, the most successful short sale entrepreneurs take great pains to differentiate themselves through a stellar reputation, high level of integrity and credibility. Rather than empty promises, effective entrepreneurs rely upon testimonials, proven results and a track record of success.
5. Consistent. “When the going gets tough the tough get going” is a sentiment that accurately reflects those that earn success versus those that eventually falter or fade away. Short sales are not easy profits – contrary to what some might think. While it is true you can earn a sizable income and provide ample time for other interests in life, mastering short sales from the ground up without the benefit of training, resources or mentors can literally take years. Success comes to those that are prepared for the long haul and differentiates the men from the boys (so to speak). While it might be possible to “get lucky” now and then, most short sale investors fail to achieve meaningful results – the life changing results that make a true impact for years to come- because they didn’t invest in their own training, networking or knowledge. Instead, they took the ‘Easy come –easy go” route.

See you at the top!
Chris McLaughlin

http://www.shortsalesriches.com

Copyright Loss Mitigation Institute 2009.
All Rights Reserved.

http://www.shortsalesriches.com

http://www.shortsalescoach.com

http://www.sixfigurebpo.com

http://www.reomillionaireclub.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 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 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
* Follow me on Twitter: http://twitter.com/mclaughlinchris
* Add me on Facebook: http://www.facebook.com/mclaughlinchris