Monday, June 7, 2010
HAFA Training Video Webinar
This hour long video is essential for anyone in the real estate business. Jason Baker goes through the new HAFA (Home Affordable Modification Alternatives) rules and how it effects your short sale business. He also demonstrates the powerful Short Sale Success (tm) software that will streamline your short sales and make compliance and closings easy. Watch it here
Friday, June 4, 2010
Home Affordable Foreclosure Alternatives Update
The governments HAFA program has had some last minute changes that makes the program twice as appealing to potential short sellers. The foreclosure alternative program now pays out $3000 to homeowners who sell their house for less than they owe - a short sale and now $6000 to second lien holders. Previously the government paid out only $1500.
Lenders are compelled under the new rules to answer a valid offer within ten days. Before theses rules lenders did not have any time constraints and short sales were anything but short.
Lenders who offer HAMP modifications must offer the HAFA program before they can foreclose. The HAFA rules apply only to loans made prior to 2009. The borrower must be "at-risk", which means that they have a verifiable hardship. The program only applies to conforming loans under $729,250 and their first mortgage payment must be less than 31% of income.
http://makinghomeaffordable.gov/hafa.html
Lenders are compelled under the new rules to answer a valid offer within ten days. Before theses rules lenders did not have any time constraints and short sales were anything but short.
Lenders who offer HAMP modifications must offer the HAFA program before they can foreclose. The HAFA rules apply only to loans made prior to 2009. The borrower must be "at-risk", which means that they have a verifiable hardship. The program only applies to conforming loans under $729,250 and their first mortgage payment must be less than 31% of income.
http://makinghomeaffordable.gov/hafa.html
Thursday, May 13, 2010
Dialing for short sale leads
For the past 6 months or so, I have been executing telemarketing campaigns to generate short sale leads. We start out with old loan modification leads generated on the Internet or by direct response to a TV ad. These leads are then uploaded to a predictive dialer and agents log in remotely to start dialing the campaign.
The script goes something like this..
Hello, this is ____from the Mortgage Help Center, we are following up on the inquiry you made in____________, did you get the help you were looking for? (pause) Do you still need help with mortgage or would you be interested in selling your home?
If the answer is yes, the telemarketer transfers the call to the agent.
The campaign has had mixed results depending on the area we have been targeting. Below you will see the number and type of leads we got.
2000 calls to Southern California 32 loan mod leads 1 short sale lead.
1000 calls to New York City 16 loan mod leads 4 short sale leads.
1000 calls to Las Vegas 22 loan mod leads 7 short sale leads.
The conclusion I draw from these campaigns is that if you are trying to generate short sale leads, you must be able to offer the homeowner that is intent on saving their home alternatives to a short sale - loan modification. After that process has been exhausted, then a short sale is appropriate.
Here is the 5 step strategy that I recommend.
1. Align yourself with a local, reputable loan modification company or attorney.
2. Execute a marketing campaign to contact people who have previously inquired about loan modification.
3. Take loan mod apps from homeowners and pass them on to your partner.
4. Get short sale leads from your partners old book of failed loan mods. (about 65% fail)
5. Repeat
The script goes something like this..
Hello, this is ____from the Mortgage Help Center, we are following up on the inquiry you made in____________, did you get the help you were looking for? (pause) Do you still need help with mortgage or would you be interested in selling your home?
If the answer is yes, the telemarketer transfers the call to the agent.
The campaign has had mixed results depending on the area we have been targeting. Below you will see the number and type of leads we got.
2000 calls to Southern California 32 loan mod leads 1 short sale lead.
1000 calls to New York City 16 loan mod leads 4 short sale leads.
1000 calls to Las Vegas 22 loan mod leads 7 short sale leads.
The conclusion I draw from these campaigns is that if you are trying to generate short sale leads, you must be able to offer the homeowner that is intent on saving their home alternatives to a short sale - loan modification. After that process has been exhausted, then a short sale is appropriate.
Here is the 5 step strategy that I recommend.
1. Align yourself with a local, reputable loan modification company or attorney.
2. Execute a marketing campaign to contact people who have previously inquired about loan modification.
3. Take loan mod apps from homeowners and pass them on to your partner.
4. Get short sale leads from your partners old book of failed loan mods. (about 65% fail)
5. Repeat
Sunday, April 18, 2010
News Alerts For Short Sales Sunday April 18, 2010
News Alerts for: Short Sales
March sales help shrink local inventory Mohave Valley News Eight short sales closed in March. Along with the 55 foreclosures that sold, 59 percent of the properties that closed were distressed. ... See all stories on this topic | ||
Selling out for less Jackson Clarion Ledger Uncle Sam has rolled out new legislation aimed at making the alternative - short sales - easier. The government's new legislation, the Home Affordable ... See all stories on this topic | ||
New rules may help homeowners during a short sale The Virginian-Pilot Short sales have gained a reputation for being long and complicated, both for the seller and potential buyers. Sellers first must convince their lender that ... See all stories on this topic | ||
Changes Coming to the Short Sales Program Prescott eNews Well finally Fannie Mae is addressing Short Sales. They are implementing a new short sale policy so here is what your short sale seller has to look forward ... See all stories on this topic | ||
Distressed property boosts sales at SC resort town Myrtle Beach Sun News "There is actually a dangerous trend happening with the decline of regular sellers versus bank-owned property and short sales," Michelle Hallstrom, ... See all stories on this topic | ||
Why a short sale often takes so long Sarasota Herald-Tribune Sometimes short sales bring more cash than foreclosures, and vice-versa. Which one it is depends on a host of factors, not the least of which is whether a ... See all stories on this topic | ||
On the Market: Short sales Los Angeles Times (blog) For more information about HAMP programs, visit Making Home Affordable.gov or call (888) 995-4673. Here are a few of the many short sales on the market. See all stories on this topic | ||
An Alternative to Foreclosure Wall Street Journal By ANNA PRIOR The federal government launched rules earlier this month to help facilitate short sales. But for some homeowners who are unable to complete a ... See all stories on this topic | ||
Housing rebound uncertain Fort Wayne Journal Gazette In addition, Brown said somewhat depressed housing prices might start to rise if foreclosures and short sales ease. In a foreclosure, a lending institution ... See all stories on this topic | ||
Elder-Care Home Foreclosures, Without Warning New York Times (blog) Jeffrey Lai, an administrator of carehomesusa.net, a four-year-old clearinghouse for such properties, said in an interview that short sales — sales based on ... See all stories on this topic |
Wednesday, April 7, 2010
Short Sale News and Links
Homeowners Seeking Short Sales For Underwater Mortgage May Get Help From Lenders Red, White, and Blue Press (blog) While many homeowners are just walking away, caring little for their credit score, others are looking to short sell their home. A short sale has been said ... See all stories on this topic
FHA Guidelines and Seasoning Issues no Problem for Short Sale Funding and ... Emailwire (press release) (blog) Real estate investors who work with pre-foreclosures and short sales have become frustrated due to how difficult it is to close short sales and make a ... See all stories on this topic
Short sales spread to a Sacramento apartment complex Sacramento Bee (blog) It's not news in the least that short sales are a routine now in Sacramento's distressed housing market. But we got a report this afternoon of possibly the ... See all stories on this topic
Short sales are killing market values across entire nation St. George Daily Spectrum The most detrimental trend impacting the market currently is the short sale epidemic. The implications have affected market values nationwide. ... See all stories on this topic
The tax burden for short sales may disappear Santa Rosa Press Democrat (blog) by real.estate Short sales have helped some cash-strapped homeowners get rid of one financial burden, only to be hit by a new one. The term “short sale” ... See all stories on this topic
Federal program aims to shorten the short sale process WWSB ABC 7 Banks now have 10 days to accept or deny an offer on a short sale. This could help the real estate market in Florida and get rid of the flood of short sales ... See all stories on this topic
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New Program Helping Struggling Homeowners Avoid Foreclo...Ozarks First HAFA is a new program working with homeowners to short sale their home, if there are no other options. There's also compensation to the seller doing the ... See all stories on this topic
Monday, March 15, 2010
Bottom in Housing Near?
With the pent up demand from investors, seller capitulation and bank foreclosures and REO liquidations, a market bottom seems near.
Sunday, February 21, 2010
Freeze On Home Foreclosures Says FOX
The White House is considering changes to its mortgage modification plan that could include a freeze on home foreclosures, sources tell FOX Business.
According to industry officials who have been briefed on the plan, the administration is considering changes that would require home-loan servicing companies to push delinquent borrowers into the Home Affordable Modification Program before they consider foreclosure.
Lenders, investors and mortgage-service companies would be prevented from foreclosing on a homeowner while a home buyer is solicited, responds and eventually goes through a trial period under HAMP.
Analysts tell FOX Business that the possible changes, if adopted, effectively prevent virtually all foreclosure action in the country for an extended period.
While home prices have recovered and sales activity has picked up, the latest statistics show that the number of foreclosures nationwide continues to rise. Loans that have headed into the foreclosure process rose to 4.58% of all mortgages in the fourth quarter, the Mortgage Bankers Association said Friday. New delinquencies, however, declined.
The freeze on home foreclosures would be a new step for the Obama Administration, which has pushed banks towards mortgage modifications as part of a solution to solve the ongoing problems in the housing market.
According to industry officials who have been briefed on the plan, the administration is considering changes that would require home-loan servicing companies to push delinquent borrowers into the Home Affordable Modification Program before they consider foreclosure.
Lenders, investors and mortgage-service companies would be prevented from foreclosing on a homeowner while a home buyer is solicited, responds and eventually goes through a trial period under HAMP.
Analysts tell FOX Business that the possible changes, if adopted, effectively prevent virtually all foreclosure action in the country for an extended period.
While home prices have recovered and sales activity has picked up, the latest statistics show that the number of foreclosures nationwide continues to rise. Loans that have headed into the foreclosure process rose to 4.58% of all mortgages in the fourth quarter, the Mortgage Bankers Association said Friday. New delinquencies, however, declined.
The freeze on home foreclosures would be a new step for the Obama Administration, which has pushed banks towards mortgage modifications as part of a solution to solve the ongoing problems in the housing market.
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