Short Sales... most professionals have mixed feelings at best.
In a period of 109 days we listed, got an approval on the short sale, and closed the deal. I have to say that some of the stories and info on ActiveRain regarding short sales has become the norm... long delays, no communication, frustration. Which at many times is the norm with any distressed sale. This recent transaction with Huntington went wonderfully though!
The seller came to us from a lead on ActiveRain. They had everything in order regarding their info, proper forms, and a contact at the bank. They were truly a joy to work with. The other agent in the transaction prepped the buyer well and the new home owner was very patient and easy to work with.
It looks as though we may have other short sale opportunites with Huntington in the near future and I look forward to more smoothe transactions.
Are there any other banks you've dealt with that have been swift, pleasant, and get the deal closed?
Well, at 1:21pm yesterday, the Dow reached 10,000 for the first time since October 7th of last year. What a long year it has been for so many in our industry.
I remember the day back in 1999 on March 3rd when the market first reached that mark of 10,000. It was almost a new horizon for the folks in the financial business. Reaching the mark this time seems to signal that the confidence we are seeing in our local market is being seen nationally.
After taking a look at local lending institutions, I found that even with the gains being made on the Dow, interest rates were being held to under 6% average for 30-yr fixed rate mortgages according to a survey from FreddieMac. With these rates staying this low for several weeks, it has really spurred activity in my local market.
Since I am not a lender, I am curious what industry professionals have to say about the short-term future of interest rates, assuming the Dow maintains the 10,000 level throughout the 4th quarter of 2009.
What a changing climate we have to try to conduct business in. I have worked several short sales with banks such as Countrywide, Huntington, HSBC, and others. I have a client with a short sale with OneWest/IndyMac. The condo has been on the market for almost a year and is now listed at under $80k. The seller owes over $101k and we have had no activity on the property. We now have an offer also under $80k and have submitted the packet to OneWest. The sheriff's sale happened in March and we have a 6 month redemption period here in MI. I am not sure that OneWest/IMB knows this because they have made a back HOA fee payment already. The seller called the bank and was informed that the packet had not gone to review because the "sell" had already happened. The rep on the phone was not terribly helpful and said to call back next weeke and that she would request a review. Seems very strange that if a property was on the market under $80k with no activity that the bank would think that they would have a chance to collect their $100k+ on the market after going through the time and cost of the foreclosure. It seems as though these irrational decisions have become par for the course. Anyone have any experience or thoughts here?
We have made it past the Inauguration Day of the newest edition to the long list of citizens who have been elected to the position of President of the USA. No matter who you voted for in this election, most folks in our industry are carefully watching what we as a country are going to do differently to jumpstart our sluggish economy. On Inauguration Day, we saw the market dip about 300 points... not the effect anyone wanted to see. On Day 1 we saw the market gain what it lost and then some. Day 2, as I am writing, the market seems to be pretty steady. So, is there an Obama Bounce happening? Not sure...
One thing I know is that our local Northern Michigan market is doing quite well. I have continued to have buyers contacting me, looking at homes, and most importantly... writing offers! So, is this the Obama Bounce? I think its just the combination of several factors playing themselves out and Americans putting one foot in front of the other and getting back to basics to keep America strong. Whatever it is, whoever you voted for, keep the optimism up and make sure to share your successes, rather than your failures, with your clients and coworkers in your local market. Call it what you want, but I think really its the American Bounce!
Whew! We made it into 2009. This has been a very unique time to be in our real estate industry. We have weathered the "perfect storm" of foreclosures bringing the median home value down, mortgage companies and banks folding- making lending somewhat non-existant, along with some of the highest unemployment rates most states have seen. NAR also reports that "The Pending Home Sales Index in the Northeast dropped 7.2 percent to 63.2 in November and is 14.6 percent below a year ago. In the Midwest the index fell 6.7 percent to 74.2 and is 10.1 percent below November 2007. The index in the South declined 2.2 percent to 85.3 in November and is 12.7 percent below a year ago. In the West, the index was down 2.4 percent to 101.2 but remains 19.3 percent higher than November 2007." So that's the past...
The start of 2009 has continued to be strong in our office. We have seen an increase in calls and new buyers since August and it seems the Holiday Season has continued to build steam in my market. Over the 2 weeks of Holidays, my office received a flurry of phones calls from the internet, signs, and paper ads. These buyers are for real also! I have been generating offers daily and seeing agent showings on my listings greatly increase. So take all of this activity and include a great interest rate on fixed 30yr loans, sounds like a good match!
How has your 2009 started? I'd love to hear what some of the real world statistics are as we head into a new market. What activity has your region been bearing? What price ranges are strong? Where are the buyers coming from? I've heard what the media has to say about our industry, but what are those of us putting in the hours on the front lines saying?! That's the real news!
We are seeing the mortgage industry change before our eyes. Rather than simply foreclosing on borrowers, many folks are being offered loan modifications on their existing loans in order to avoid foreclosure, which costs the bank money and the housing market growth. What is this process? There are several blogs on ActiveRain that explain it in detail. I work with IndyMac Federal Bank and it seems as though they are trying to be the model for this process. I had originally heard that a borrower needed to be 90 days past due to be considered for the process, but after speaking directly to IMFB, have found that 45 days past due is the entry point into the process. If you are an IMFB borrower and feel that your hardship may qualify you for a potential loan modification, the number to call is 877-908-4357. I have heard that the counselors are friendly, understanding, and most importantly... helpful. No one wants to back out on their commitment to pay back what they borrowed, but IMFB seems to be making it less offensive than some of the other 'big box' lenders out there. I'd love to hear about your experience with a loan modification, whether it be IMFB or some other institution and I feel that the ActiveRain community can benefit from pooling knowledge and experience from its members to start making lemonade out of the financial lemons some folks have been dealt. Go ahead and blog away on this topic and let's try to help those that need it in this sticky situation! Make this the loan modification forum for the answers to questions that no one wants to ask.
It seems as though the Thanksgiving hangover may be over and we may be waking up without the headache. Its been a while since I have been able to wake up on a Monday and see some good news. We in Michigan are seeing some news that directly affects us locally. It looks as though the government may be 'very likely' to approve a 'bailout plan' for the troubled auto industry to the tune of $15billion. This at least starts a sense of optimism we haven't seen in Michigan in quite some time. As an added bonus, the government is looking to lock interest rates to spur new home buyers.
The auto industry 'bailout' has asked for specific details from the Big 3. It looks like they got those details. Congress looks to have the amount of infusion may be between $14million and $17million. The plan would create a presidentially named overseer charged with running a broad auto industry restructuring, with the power to require immediate payback of the emergency loans early next year if the companies fail to take the steps necessary to overhaul themselves. It could also include a Cabinet-level oversight board composed of the heads of the departments of Treasury, Energy, Labor, Commerce and Transportation and the Environmental Protection Agency. Under the plan, the carmakers could get emergency loans on December 15th. Then the presidentially tapped overseer would write guidelines, due on the first of the year, for a Big 3 restructuring. If the car companies hadn't taken enough steps to overhaul themselves by February 15th, 2009, the overseer could take back the money. That would essentially mean that a person selected by President Bush would set the terms for an auto industry restructuring, but someone picked by President-elect Obama would have the power to decide whether they were being met.
As far as the government's plans for mortgage lending, sounds like we have some details there too. Under the Treasury's latest proposal, the government would invest tens of billions of dollars to help lower the interest rate on 30-year mortgages to just 4.5 percent, which would be the lowest rate since the early 1960s. But here's the catch. As currently envisioned, that 4.5 percent rate would not be available for refinancing. Which means it would not be available to any of the people who are currently underwater on their loans. The rate would only be available if you're buying a home – which in most cases these days refers to well-to-do individuals who have enough money in the bank that the prospect of their home declining in value for months on end will not keep them out of the market. A 4.5 percent mortgage rate could bring some new blood into the market.
All I can say is... Let's hope so! Every lender I have talked with has been calling all of their leads. I have also had a reason other than the Holidays to reach out to the old leads in my file. With the outreach done from 2 different industries spreading the good news, we can all expect to start out 2009 with a better head of steam than 2008. Stop blogging and start making calls to get those buyers in the market... then blog about it later this afternoon!
Well another Thanksgiving being over can only lead to one thing... Black Friday. Traditionally, this is the first Friday of the Holiday shopping season and is called such because its the day that retailers all over run sales, promotions, and a ton of marketing to get you in their store and to sell, sell, sell to get out of the red and into the black. This season is seeing a few different things than the past few years in the housing market. We have inventory making a turn with homes selling. We have historic lows for housing prices. We have mortgage rates that have dropped again to great rates. And, for the first time in a few seasons we have more well-qualified buyers in the market ready to buy homes. In effect, we have our own Black Friday going on in our local market here and it is happening in markets all over the US.
As a buyer, now is the time to find that home. You have been waiting this thing out for a couple years, listening to friends who scare you away from making the purchase... most of whom likely bought in the height of the market between 2003-2005 and now wish they had your ability to make a steal. I have had more multiple offer situations with my buyers since August than I have had in the past several years combined. I also am now getting a sense of urgency from buyers that I have been working with for 18 months or more. You may not have heard it here first, but understand that we are losing the "buyer's market" that most markets have been experiencing since 2006.
No matter who you voted for, we have a change at the top that we haven't had in 8 years. We have more cooperate restructuring going on and cooperate America is under more scrutiny than ever. Most markets have hit the bottom and are working towards a rebound. Its not too late, but the advice I give buyers is that we will likely look back on the deals had in 2008 and wish we would have made more out of many opportunities. After you go to your favorite big box store and pick up the Wii, LCD TV, or leather sofa... take some time to think about a new home to put them in.
Waking up this Thanksgiving morning, I am thankful for one thing... the banks are closed! As our market sees a mixture of bank-involved properties, the interaction with the various departments (or lack there of) can make you want to pull your hair out. I am involved in quite a few and if you reference my picture, you'll see that its been a while since I have had an easy bank interaction. I find that with each new bank or servicer the process changes. The departments have different names and the numbers are never published. As a bonus, when you think that you're making some progress talking with a human and they give you the "right" number to call... you get transferred to silence. Then, of course you call the number back and again... silence.
Home Retention Dept, Loss Mitigation, Workout Dept, Executive Team... all the usual suspects when trying to submit an offer to the bank. But, with ActiveRain I think there may be a light at the end of the tunnel. We are fortunate to have a network of top-producing agents, title agents, and lenders here. It seems to me that we can tap that network and compile a list of contact numbers and departments for the various banks, asset managers, and loan servicers here that can help to streamline the process and make life easier for the overburdened banks and frustrated real estate agents. I think that in the end this will also help to keep the borrowers out of foreclosure and keep those buyers that are hard to come by, interested in the bank-involved property.
So let's get to typing and pool the resources to get some info in a concise blog, here. If you have had some experience, either bad or good, in communicating with a bank... speak up! Help your fellow agents and share your experience. Most importantly, share which bank/servicer you dealt with, the department that worked best, the most appropriate number to call, and if you have a contact that did a really great job... let's get his/her name also.
With FannieMae holding off on foreclosures for a short period, this gives us a moment to circle the wagons and really figure this process out before the backlog that will likely start '09. We can make some lemonade out of the banking lemons and take it upon ourselves as real estate agents to help these banks move through REO inventory and prevent foreclosures. If we do all of that, we might even get some good media coverage as an industry. Let's have '09 be a time to shine for housing markets all over this great country!
In thinking of the Thanksgiving Holiday coming tomorrow, I thought of all the real estate agents who will be traveling and meeting with families all over the country. What better time to make sure that your family members that may be selling or buying a home in the next year contact a top-selling agent. I love referrals and send out many for folks moving from MI to warmer climates. I would love to use this blog to get a list together of other top producing agents providing great real estate service around the country. Post a comment and let us know where you are and why we should send you referral business. If anyone has clients moving to Northern Michigan, send 'em my way and I am always happy to send a referral fee along!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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