Archive for the ‘Short Sales’ Category

State Regulators Say Federal Foreclosure Prevention Program Falls Short

So this headline from DSNews.com hasn’t really surprised anyone has it?  Not me, but not because I know every little detail on why or what they offer.  It seems that by the results the government doesn’t either.  Really what tells me about the current and future status of this market is the past results.  That is we have history of the last few years of what and how to handle this.  Obviously there is some good from the programs (for those that they helped) but overall the success has been overshadowed by the failure.  Simply put we are in a market correction of historic proportions.  And, the historical evidence is always shown that a correction must take its course and the INVESTORS HELP THAT PROCESS ALONG.  Buying and selling in this market takes a very well seasoned professional which aligns themselves with other professionals to coordinate a system to move inventory through and back on the market.  And you know what?  It isn’t government funded it is entrepreneurial supported by the hard working, creative minded, and tenacious people that has made this Country great!  So I ask for more support of rallying together as a network of professionals to correct the market the way history has shown.

http://www.dsnews.com/articles/state-regulators-say-federal-foreclosure-prevention-program-falls-short-2010-01-22

Keep it short,

Mike Knows

Hey sports fans!  Sorry for the delay in with the updates.  I literally shut it down for the holidays.  I have to to tell you it was tough….I got so wrapped up in business that I was losing focus of what working really means.  The good Lord stepped in and made an adjustment with my priorities.  Him first, My family next, and everything else…well you know.

I hope all of you got to do the same with your time off.  I am refreshed and ready to go.  I feel new (kinda sorta).  I know this, that I am filled with passion to give and give abundantly.  I know we have so much to do in this market and the latest news only supports that WE have our work cut out for us.  There are new stats showing that we are in for the worst of times with the foreclosures.  Not only with the 5 year ARM recast, but the unemployment rate still in the 10′s, the seasonal slow down with sales, and the ridiculous attempts by the government to help delay the correction with HAMP (better known as CHUMP).  Anyway, do not delay and start today making a New You to change you and others lives during this troubling time.  Short Sales are in!

For more disgusting news…please read!

http://www.dsnews.com/articles/delinquencies-foreclosures-at-record-highs-with-shadow-inventories-looming-lps-report-2009-11-10

Keep it short,

Mike

Dear Family, Friends, Associates,

I send this message with Hope and Love in this Holiday Season. I am not one to really get mushy to everyone, that is unless I am moved. I am moved by the Power of Love and Hope. In this holiday season we are torn with many feelings. There is constant news of challenges in war, economy, life and so on. We are not immune to these things, but through Love and Hope we fill ourselves with the pure ingredients that God has born in us. These 2 Gifts move us out of our own circumstances and into His presence.

In the business I have been blessed to run, I have experienced these two special gifts in my and others lives. I prepare an opportunity to have the ability to handle problems properties that people have been faced with and present these 2 gifts of Hope and Love. If you are or someone you know needs these 2 gifts this season I have them in abundance. To my family to all of you….Happy Holiday’s and Merry Christ-mas.

Mike Ouellette
www.MikeknowsShortSales.com
www.Help-Me-ShortSales.com

Hey look Ma…no hands!  That is about what you are faced with when you have found yourself (or know someone that has) behind on an overleveraged home, and unemployed to boot.  Basically, the highly touted loan modification plan does not apply to homeowners with little or no income.  I have talked with hundreds of homeowners whom have faced the position to try and save their home, but when I ask what they have tried or what position are in to try and keep the payments going, and they tell me they are out of a job, I sigh and say to myself, “you are scrwed.”  This is is the reality and you can read more on the link below.  Here is a sobering way to look at this;

1. Where is your financial future going to be like in the next 6 months?  The same, worse, or better?

2. How much is your house worth now?  Overleveraged, break even, or equity?

3. Would you consider starting over if you could get relieved of the problem property?

This honest evaluation and timely decision could very well help you with a Fresh Start Future! 

Consider this.  www.Help-ME-ShortSales.com

http://money.cnn.com/2009/11/28/news/economy/Obama_mortgage_announcement/

Keep it short,

Mike

Happy Thanksgiving everyone!  I have been blessed to be in such a wonderful position in my life.  It doesn’t have much to what I where, where I live, what I have and what I don’t, except my Lord and Savior Jesus Christ.  Everything is gravy after that!  Sorry for the pun, but it needed to be expressed.

Ok, so you want to know what the top 3 ways to know if your market has rebounded?  After all it is about trends and that is what makes it safe to track.  here they are:

1. Jobs (or unemployment rate) are they coming or going.

2. Inventory (house total) increasing or decreasing?

3.  Foreclosure rates (Notice of defaults) same as above.

Measure the trends to determine month over month where these go.  Also one other factor for the delay is the season trend.  November-February are typically slow months for sales, and could back up inventory as more foreclosures/bank owned properties hit the market.

Keep it short,

Mike Ouellette

More and more finger pointing and exposed practices occur when things hit the fan.  Like for instance when the refinance craze happened over 2002 to 2007(ish).   You know that period where you would call a lender because you want to squeeze some juice out of that home of yours to maybe do improvements, take a trip, buy that Harley Davidson etc?  And weren’t we just tickled pink when we heard of home much the value of our home was worth…AGAIN!?  Knowing somehow the refinance we did the two years prior was 50 thousand less…Oh, Happy Days!

As we work with over-leveraged homeowners and we notice the mortgage history on the property, it is not uncommon to see that type of trend.  it is unfortunate, and somewhat accurate, as to why now we can see that we were all turning a blind eye to the ability to suck the money out of our homes from thin air.  I hear many homeowners complain that it was the lender and the appraiser that came to that value, thus allowing the refinance (see the link to the article below).    But, we weren’t stopping them as we collected the tens of thousands of dollars to use for some benefit were we?  NO.  Now this is not a judging session on whom was the rat and whom was the cheese.  It is merely sharing that this mortgage mess is a group effort.  Some more on some side and on the other side, with a good portion in the collective middle.

If you may have a overinflated value from a previous refinance(s) then consider what and who it is valued from.  It may help your cause when looking to do a Loan Modification, but it may help you also com to grips that the house wasn’t truly what the value was worth when you got that refinance check.  That may help some come to grips of letting go and starting over.  Sorry, just a little reality in this correction of the market.

http://www.dsnews.com/articles/index/retro-appraisals-raises-doubts-about-lenders-past-valuations-as-foreclosure-defense-2009-11-05

Keep it short,

Mike

For help with shortsales please visit: www.Help-Me-ShortSales.com

Ok, so the pun in the heading is really not about the discount in debt, but the time line of a short sale, duh!  I like playing with words because it is the only thing I can manipulate successfully.  So, the issue is still the same.  If you have ever tried a short sale or have been on the back side of one, you probably have dealt with some serious time delays.  In fact it is probably what makes you not want to try them.  That is if you are not the one needing one (before you are faced with a foreclosure).  Unfortunately, if you are not specializing in these or you do not know how to “play by the banks rules” then you most definitely will fall into the “victim category” and probably left with many scars.  I have mastered my operation to handle the short sale from start to finish in less than half the time than most attempts.  I have found that when preparing for the necessary steps, that each one done correctly can benefit the entire process with a successful outcome.  The one big difference in how I will do them versus 98% of all others….I make offers on all cases!  How can I do that?  I have a property investment company (buyer) that will make offers on the property.  If the offer is accepted then the short sale is bought!  If it is rejected we still can renegotiate the offer, but if it is something that the investment company cannot/will not buy, they have the rights to either buy and resell (for a profit) or step out of the way completely and have it sold for retail 9to the end buyer).  The big thing is that the offer is what stimulates the short sale process.  Without it the bank cannot begin the process.  The bank(s) need several months to work their process (see “playing by the banks rules”) to determine if the offer is worth it or not.  The only way they can do that is to get a accurate value of the property, which you will have to support or force them to get it (interior BPO).  Miss these steps and you can basically expect to be off the mark with your offer, and they will reject it.    After doing over 100′s of cases we now know the positioning of the short sale with the lender so well, that we can predict if we will get an approval or not.  We also know that it will make for a quick decision on whether to buy and hold, buy and resell, or have it sold (step out of the middle).  In short here is the steps and the timeline:

Day 1: Full packet submission to lender (with offer)

Week 2: Assigned to Negotiator

Week: 3 Interior BPO ordered

Week: 4 Confirm receipt of the BPO and await review

Week: 6 Decision on original offer and the BPO negotiations begin

Week: 7-8 Counter offers to determine the final price & if investment company will purchase, purchase & resell, or step out and retail sale

Week: 9 Verbal approval / Market for sale

Week: 10-12 Written approval

Week: 14-16 Purchase and or resell

Case closed.

** There may timelines that can be extended due to several steps being delyed, but this is the ideal process doing the short sale process as I had mentioned.  I welcome comments and feedback.

As always, Keep it short.  Mike

I am giving my 2 cents on the article (link below) on the “here we go again” analyst’s predictions.  The ability to tie the GDP to the housing market’s performance has merit, but is it really enough of a trend to tell?  Since there is new inventory being released by  the banks (REO’s) and we are ready to reset with the 5 year ARM (over 1 million mortgages, and more than half the country will be effected by the seasonal change in sales (it’s called winter) for the 5 months, and the Unemployment rate still carries itself in the 9′s, and so on…

So the real question is how low will it go from here?  And, will it be best to invest in a home later.  Well here is the way I look at it….it depends on how and why you invest.  if you are investing in your home for a place to live and hold for a while, then yes the time has been and will be NOW.  If you are buying to flip (as in fix it up, wholesale it etc.) then it will depend on your strategy.  The reason why I do short sales is because it is the BEST WAY to create a discount and resell for a profit. I can even say that if you were to short sale and buy the property for an investment it is great way to DO IT NOW (see the 1st reason I said buying now was good).  Now this main seem elementary, but I have to tell you that confusion and fear play a major factor in buyers decisions to buy.  When I first started real estate investing I remember a seasoned investor telling me, Mike, “You want to deal in motivation, that is motivated sellers and motivated buyers, but you have to get past their fear of getting screwed, versus their motivation of needing to decide.”  And ,yes that told me the historical truth of people not doing the obvious until they are absolutely sure.  We’ll that is when you trust an expert and go off their advice, even in this crazy market.  So whether you NEED to SELL, or WANT to BUY, I suggest this one question.  When would NOW be a good time to do it?

http://realtytimes.com/rtpages/20091020_realestateoutlook.htm

So it doesn’t take Nostradamus to predict (or continue to forecast) the driection of the market.  Sure, we have had some growth and some positive results from the Government programs, but that still will not stop the NEXT WAVE of inventory about to FLOOD the market.  The prediction is pretty clear becuase of the factors with reset ARM, unemployment, poor results with HAMP (sepcifically Loan Modifications), and the deappreciation of housing values….That is why they call it a CORRECTION.  The market has to correct itself to the point of bottoming out and then gradually returning to a median price for a period of time, and then (of course) graduate in incrementss where values of properties come back.  The benefit of Short Sales is to accelerate the correction (beating the decline) so that buyers see the value of buying a dicount price today….make sense?  So why aren’t more people taking advantage of the short sale syndrome (I just made that up)?  Becuase FEAR is what holds people back from making steps TODAY, and they usually catch on when the WAVE has subsided.  Take it from an expert (yes, me) that this is the time to JUMP IN….here is an article to only support my commentary.  Keep it short,  Mike “Knows”

http://money.cnn.com/2009/10/15/real_estate/foreclosure_crisis_deepens/index.htm?postversion=2009101507

Yes of course I was a big roller in my younger days….but only in board games. Think about the game of Yahtzee for a second. You always wanted to roll the higher numbers right? Sure, that meant getting bigger scores to ultimately WIN THE GAME. The luxury home market is affected in this market as well. Well isn’t that what we should be doing in the short sale market? You betchya! But, unlike a board game (or the online games of Texas Hold em”) this is real stuff. However, so are the profits. I am currently looking at higher end homes to generate greater spreads for a great profit. We are epxerienced and staffed to roll for the FIVE 6′s! Mikeo@lmsgnow.com. Keep it short, Mike Ouellette

http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN1354170020091014?pageNumber=2&virtualBrandChannel=0