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Mortgage Man's Top 10 SIGNS WE ARE IN A NEW MARKET

Dear Reader,

This is an actual blog filled with recent everyday facts only for your viewing pleasure. I am sitting here in the office and it is almost 8pm and I thought to myself why not share my recent experiences with you all here on Active Rain and the public who visits my blog on a daily basis. Some of these may be funny but at the same time can be tearful. It is August 20th and we are in a new market folks, a new market!!!

Top 10 Signs That Our Real Estate/Mortgage Market Has Changed:

1.) REALTOR CALLING ME EVERY SINGLE DAY! So I have this purchase closing at the end of September here in Connecticut and the realtor representing the buyer (also my borrower/client) keeps calling me every single morning at 9am sharp and even once over the weekend requesting the commitment letter. The funny thing is that the realtor called me and asked for the commitment letter more than a week ago when I didn't even have a credit card from the borrower and I didn't even start anything on the loan because the borrower had not commited to me just yet. I rarely see this happen so this is a very good reason the market is changing. It is obvious that the realtor wants to be sure that there is a solid deal here and I don't blame her in this new market that we are in. I'm always available to my clients and business partners at the following cell phone number: 203.913.6016 or you may visit my website: http://www.mynimacom/

2.) 128+ MORTGAGE COMPANIES HAVE GONE OUT OF BUSINESS! So yeah, did you know over 128 mortgage lenders have gone down under already? Isn't that just out of this world? Check out my blog from a few days ago that is tracking the lenders as they go under. Click here to view the blog which I am updating on a weekly basis: (VERY INTERESTING) "Imploded" Mortgage Lenders & Ailing/Watch List Mortgage Lenders Did we discuss any mortgage companies going out of business 5 years ago or 4 or 3 or last year? I don't remember much of it but now it is the new hype in this market. Who is next to go? Wow, very scary but its actual life folks, we are in a new market.

3.) FORECLOSURES AT ALL TIME HIGHS FOR THE PAST 5 YEARS! Yes, people who could barely afford homes 2-3 years ago are starting to see their mortgages adjust since they received adjustable mortgages with low interest rates and they can't afford to make their monthly mortgage payments. A lot of people are going into foreclosure. The real estate market is so bad that most of these foreclosures are not selling in auctions. Yes, we are in a new market folks!

4.) REO's AT ALL TIME HIGHS! So if you read #3 then you know what happens to the foreclosures that don't sell in public auctions, the banks/lenders purchase them and are not considered REO's (Real Estate Owned) for the bank. Now they will be heavily discounted and offered to the public like regular listings. Did you know in the first 5 years in the business I did probably 2-3 reo's and in the last 3 months I have done 7 purchase transactions on REO's!!! Holy cow is right, we are in a new market. If you would like a list of the REO's in your state, please contact me by clicking here: Contact Nima now!

5.) BOMBARDED WITH EMAILS, CALLS AND MORE ABOUT MY COMPANY! My company has been in the news in the past 3 weeks and it is causing my current clients, past clients, business partners, family and friends to call me or email me and ask about how my company is doing or how I am doing. This is a negative and a positive in one because if people are calling me because they heard something on the radio or if they heard something on TV or if they read something on the Internet then they also remember what I do for a living and who I work for so that means I did a great job of notifying the people around me as to what I do and who I work for. I work for the largest lender in the country and I personally am happy with my company and what my company has done for my clients/business partners most importantly and lastly what they have done for me. I always put my business partners/clients before me and that is why I am still in the business in a market like this. To view my recent blog on how my company is doing please click here to view my blog: Countrywide Home Loans: The Real Story (Informative Blog)

6.) RATE SHOPPING SPREE! So I have this other purchase closing and my own friend shopped me with 7 other banks. Yes, you just read right, 7 other banks! Okay, so he may not be a best friend and or a good friend but he is a friend that I met through another friend but still, 7 banks? Does he trust me, of course he trusts me and he even purchases his first condo with me 2 years ago. He is in the financial business in Manhattan and he knows better as to the real estate market is down and the mortgage industry is weak so he is taking full advantage of trying to get the best deal. Guess who he is going with for his Purchase? That's right, you guessed correctly, ME! I am with the best lender and I provide the best service so he is going with me. He couldn't find a super slam dunk deal so he is going with me. I remember a while ago, you either went with someone you knew and did not shop for rates but if you did, it was at most cases 3 lenders, not 7. Yes, yes, yes, we are in a new market!

7.) SOLICITING THE MORTGAG BRANCHES! What? Are you kidding me? I don't even remember people dropping by our offices to ask for our business. I am talking about the homeowners insurance agents, title companies and attorney's! We are getting visitors almost on a daily basis asking for our business. Is it that bad out there? These folks come in and they don't even know how to communicate with us because they have never probably left their offices in the past so and so years in the business. See, when the real estate market is bad and the mortgage industry is bad it doesn't just effect the mortgage professionals and the real estate professionals but it effects a whole wide range of real estate professionals!!! Just ask around or look around, you will see what I am talking about.

8.) LEAVING THE BUSINESS! I know of dozens and dozens of real estate professionals who have left the business. When I say real estate professionals I am including a lot of different professions. So you do what you love and you do it well, all of a sudden you leave the whole industry? Definitely means we are in a new market and the new market is not so nice. I know realtors that are going to do this part time while picking up new day jobs or weekend jobs. I know mortgage professionals who are speaking with recruiters on new office jobs and then doing mortgages part time on the side.

9.) SAY GOODBYE TO SUB-PRIME! The sub-prime market has been going away slowly and slowly in the past 7-8 months. The whole market is almost gone. I can totally remember being recruited by sub-prime lenders and hearing even from people here on Active Rain that being in the sub-prime world is better because I will make more money. Hmmm, more money? How, by charging people who didn't have any other choice extra so that I can become richer off of their bad credit? Hmmmm, that sure did contribute to this whole mess we are in now and will be in for a while to come. I am not in this business to become rich but I'm honestly in this business because I love what I do and I enjoy helping people out with the biggest purchase decision of their lifetime. Take a look at #2 and click on the blog to see how many sub-prime mortgage companies have already closed their doors.

10.) MORTGAGE GUIDELINES ARE GETTING TIGHTER AND THE INVENTORY IS GETTING LARGER!!! So just in case you did not know, the mortgage guidelines are getting tighter at all the banks that are left doing business. All of the risky loans like the sub-prime loans or all of the Alt-A loans are hard to come by now. The guidelines are changing and it is getting harder and harder for consumers to get approved for mortgages. I am not speaking about the people with bad credit but the people with good credit as well. Times are changing fast and it is up to a mortgage professional like me to get you pre-approved and get you a home loan that fits your financial situation. For a no-obligation free mortgage preapproval please click here: FREE Home Mortgage Pre-Approval

Honestly, I could have kept going and going, but this is good enough for now! So do you agree? Remember, all markets are different but the general real estate professional might agree with me here. I am not a person who likes to discuss anything negative but this blog had to be shared with you tonight.

Thanks for dropping by and I look forward to reading your comments and I'm also ready to service all of your Real Estate Financing Needs!

Your Friendly Mortgage Man,

Nima Rezvan

203.913.6016

http://www.mynima.com/

Posted by Nima Rezvan First Time Home Buyer Expert CT FHA Loans - FHA 203k - CT Mortgage on 08/21/2007 12:50 AM

Comments (32)

connecticut, mortgage, real estate, man, nima, rezvan, preapproval, interest, rates, financing, new, market, active rain, purchase, condo, borrower, buyer

This post has been included in Connecticut Information Fairfield County, CT Information Norwalk, CT Information

32 Comments on Mortgage Man's Top 10 SIGNS WE ARE IN A NEW MARKET

AUG

2007

First sign is that many people on Active Rain are writing about it. :)

Randy beat me to it. Yes these are all great signs of change. It has happened 4 times to me in 23 years in the business. We all need to keep on keeping on and doing the best we can for our borrowers and our Realtor partners. Aloha

i'm focusing
i'm focusing

Randy Prothero: Very true, very true!

Bruce Bourgault: Making sure you provide the very best to all of your clients/business partners is a MUST in a slow season or a busy season.

Pete Tsakiris: We need to focus on customer service and the way we conduct our business in a market like this.

AUG

2007

Things seem to be changing daily...but then that is life. We're still selling homes...but our qualfied buyer pool may be more limited at a time when inventory is at it's highest.

That is soo funny that first comment about so many people writing about it. That's almost exactly what I was thinking. There are tons and tons and tons of blogs about it...I guess it must be true... =)

Number 9 happens to be my personal favorite! I always hated it and took great exception to people saying that one could make more money in sub-prime. I am not out to screw people over just because they may have been desperate! So, hats off to you. I will be watching and paying very close attention in the days, weeks, months to follow. Best of luck to you...

Renee Norton: Things are changing on a daily basis almost and it is just too much too handle at times. I always spend quality time on each file and now I am concentrating on each file even more than usual. In a slow market like this, all real estate professionals should concentrate even harder on each transaction. Everyone involved in a purchase transaction needs to do his/her part so that everything goes smoothly. A teamwork is recommended so make sure you are working with someone that you has experience and is credible.

Rondel Williams: I think the people who live under a rock even know that we are in a new market. I wish I placed that in my blog but that's what these comments are for.

Sarah Eubanks: My number one way of going about my business was to do as I wanted. I always thought big and performed big. I always followed my heart and did as I wish. This is a market where you need to think out of the box in order to survive. The real estate professionals who have 10+ years of experience will definitely stay in this business. The pros with less than 10 years will be struggling in a market like this. Definitely should think out of the box if you are an RE PRO with less than 10 years. I never listened to anyone who told me to do something differently to make more money. I would rather make my own business plan and run my own business. Being in the business for almost 6 years now, I have learned from watching others fail and watching some of my own plans fail. This is definitely not the best time for newbies to get into the real estate field as I am sure most would agree.

Thanks for dropping by and commenting. Always welcome back to see more of my blogs.

Another good post. We just solved the current mortgage climate in a post we just did. It is an alternative take on what we've been recently reading, with a decided swipe at the media... and we did include your name with a link in it, with Brian, that is the only meaningful part of our solution. We hope you don't mind. And find it helpful.

Thanks again for your continuing discussion on all of this in the last while. It is helpful and appreciated.

Glad you are hanging in there. We has a note from our local Countrywide guy that he is doing ok as well. The media is not helping anyone.

Gary Bolen: Thanks for reading my blog tonight and for commenting as well. I already checked out your blog and I appreciate you mentioning my blog. Definitely enjoyed reading your blog and again, thanks for commenting on my blog today.

Bob & Carolin Benjamin: Hanging in there for sure! I think it is important for a lot of people to hang in there as tough as they can because I personally think that it will get even worse but we have to wait to see for our very own eyes. The colder months here in the North East are approaching us fast and that won't be any HELP for sure. I guess you can say now that no job is easy, no job!

Nima, excellent reasons. The market 'is what it is' & we're finding it great. Obviously that's partly because we have decided to shift to where the business is - short sales / pre foreclosures & on the buy side, many looking for steals :)

You are in an interesting position right now. One of my friends just joined Countrywide from HomeBanc....now with all the talk about Countrywide....well you know.

Glad you are keeping things in check & positive!

Nima,

it appears that you have "A Pulse on the market".

Nima:

Good points. Balanced post. Times they are a changin'.

after close to 30 years in the mortgage business i believe the following to be true.

the only constant in the mortgage business is change.

i would like to add maybe more today than before.

YEs, but with all the changes, how very slow it has been , lenders closing down, the only place to go from here is up right ?

Great post. #1 caught my eye. I would never call every day (yikes!), but I love your attitude about being there to answer questions and taking it all in stride. I'm currently representing a seller and I called the buyer's lender exactly 3 times during the past 2 months. The first time was when I received the offer and I wanted to verify the pre-approval letter (was credit pulled, income verified, dates workable, etc.). The second time was to let him know that I was available during the 4th of July holiday in case the appraiser wanted to meet with me. The third time was to request a copy of the commitment on the day the mortgage was supposed to be approved. And guess what? He complained to his buyer that I was hounding him (causing a ruckus and making the buyer think that I was overstepping my bounds), he never called me back (not once) and he also did not furnish the commitment on time but was over a week late! I don't expect him to be in business for much longer!

Most people in this Atlant market are looking at it as a great market for finding good deals. there are alot of them out there. I think the mortgage market needed this correction, and it will be good for real estate long term.

Dwayne West

"Atlanta Real Estate experts"

Good summary, Nima. There's no point in denying what is going on, as long as one does not believe everything they read in the papers. Continued discussions about what is happening in forums like this will be most useful to practitioners and consumers.

Jeff

Ugh... that lender commitment letter.....

I have been asked for that before we were out of option period. Uh, I ain't spending my clients money on an appraisal until AFTER option period. And you can't have the commitment until well after the appraisal is complete. <== and then I have to explain it several more times.

Nima,

Thanks for the update,

I been working with you for a while and all i can say is: YOU ARE THE BEST.

Always on top of everything,

Thanks for the referral.

Great Summary of what we all know has been happening and I appreciate hearing it from you as a lender because "We're all in this together". I'm glad to hear that while you could always use a few more transactions, you're such a strong swimmer that you've not been sucked into the whirlpool!!!

Thanks for stating the obvious.

Not to harp on this approach, but blogs are about thought leadership.

A leader by definition shows the masses hope when the future looks glib. By not adding to the conversation we bloggers become part of the problem instead of the solution.

Its easy to talk about how bad things are. It is easy to chat about how the market sucks. But what about being a leader and talking about why it is a great time to buy? Because if you do not believe that, then are you not bordering on scam? How in Gods name can you put someone into a home if you think the bottom is falling out? And this post sells me on why it is a horrible time to buy. When in fact it is a great time to buy.

You are correct. Things they are a changin'. I have thought about getting out of the business but at the end of the day. I am hooked on this job. Its tougher but hopefully it will push out the people that were in the business for all the wrong reasons. I keep saying to myself, if I can survive this market, I can survive anything the mortgage arena has to hand me. I will be stronger, smarter and more connected than in the ever in the past. Hang in there, everything is cyclical. You take pride in what you do that's obvious. Best of luck to you.

Nima,

Excellent post. I hope Countrywide appreciates you! You are one of those people who rise above it all and shine. I wish you the very best and I have no doubt you will succeed, no matter what the market brings. I read your "Real Story" earlier and Brian Bradys predictions. I wish Kristal Kraft would use her Kristal Ball. No one, knows what the outcome will be. We all need to get ourselves situated if we want to stay in our fields. I for one, have no plans on leaving.

Things have stopped changing here. August is usually one of our two busiest months and there is nothing happening this month.

Slow quarter. Although I will say the media is "talking up" the problem --- the reality is the problem is here and its news to talk about it. Not much blowing up is being done. When the banks started to annouce they were in a "a little trouble" that was the biggest sign yet. When the top of the line is having a problem.... what do you think the little ones underfeet is going through on an individual basis.

I was having a friend to friend conversation and ask me how we got on the market, but anyway we did. And she told me that one of her friends told her that Wells Fargo had a branch meeting and she was told that their loan activity has dropped, the money is funny and the lender is suffering worst than they have let on... that they just may be coming back and annoucing a cut back. She's been there 12 years and she is worried because she is a loan processor.

Really this problem started back with the war.... but that is a subject I do not want to touch.

Countrywide announced layoffs yesterday...Hope you're not affected.

I had a gut feeling over a year ago that this was going to happen.

Dang Nima, if you know any Vegas area agents leaving the business, please send them my way! I shifted with the market and have the need for a buyers/renters agent!

Hope you are hanging in there, sounds as if you are!

Hey great job. Well thought out and presented. Lots to think about.

Changed it has...thanks, good post.

AUG

2007

Big 5! Great post. Bookmarked to come back and browse the comments. Thanks!

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