Journeys End Lake Worth

Foreclosure Fraud Settlement Update…

2012-02-12T10:14:00.001-05:00

Full and complete details are still not available as of today. We have been given only the main points of the agreement. Missing still are the most important aspects; the implementation and enforcement details. As the well known saying goes…’The devil is in the details’ (see below).

A previously ‘settled’ suit by Nevada/Arizona against Bank of America for failing to follow their responsibilities in the Countrywide settlement will be folded into the deal. In that settlement, BofA promised to deliver $8.5 billion in relief for Countrywide borrowers who fell victim to deceptive practices in the mortgage process. In reality, only $236 million was ever spent. Weak settlement terms allowed BofA to take credit merely for offering loan modifications to borrowers. And the Nevada suit alleged that BofA immediately started abusing borrowers who tried to get relief under the deal. But that suit is now gone.

State and federal regulators insist that they learned their lesson with that botched settlement and that this one has tight enforcement guidelines. (Sure!) However, the monitoring process begins with a self-assessment from the banks through quarterly reports, which will then be reviewed by a govt. determined committee. This enforcement process is likely to take months to ‘properly assess’ the settlement.

What has been made public is that 5 billion will go as a hard cash penalty to the states, which can use the monies, for what appears to be, any reason. As a matter of fact, one official close to the talks stated that he feared that much of that cash payout will go in some states toward filling their budget holes. The federal government will get a cash penalty as well (how much? for what purposes?) Out of that $5 billion, up to 750,000 borrowers wrongfully foreclosed upon will get (up to) a $2,000 check if they sign up for it and it is determined that they qualify (who can qualify and what the process is has yet to be disclosed). For someone wrongfully foreclosed on, foreclosed on with fraudulent documents or denied due process, this is the equivalent of saying to them “sorry we broke the law and stole your home, here’s one months rent, now go away quietly.”

The bulk of the money, NOT actually a payment of any kind, around $17 billion, will go towards loan modifications, principal write-downs, short sales and other foreclosure avoidance efforts.

This figure pales in comparison to the negative equity in the country, which sits at, at least, $700 billion. Nationally, 1 in 5 mortgages is currently under water…here in Florida, almost 1 in 2 mortgages is under water. AND the banks have 3 years to implement these processes and procedures.

It will be many years into the future, after this ‘landmark settlement’ has faded from scrutiny, before it can be determined if the promises on loan modifications, etc., have been fulfilled.

Do you think this multi-billion-dollar settlement is tough on the banks?Lets look at the stock prices of the banks involved in this settlement…did they fall through the floor as a result of the drastic penalties invoked?

Well, just before Christmas, Bank of America stock dipped below the $5.00 mark; on Friday, it closed over $8.00…UP OVER 60% in 60 days! Nice…and one would have to have their head firmly in the sand to think that the terms of this settlement were not widely distributed to the ‘in’ crowd in the past 60 days.
Citi..again, from a low point of about $25 the same day, just before Christmas, to a close of about $33 on Friday…a 30% return in 60 days…not as good as BofA, but still not bad for the insiders.

**and the mention of insiders brings up this point: Our elected officials do not have to comply with the rules/laws governing the trading of equities on inside information. I’d like to see how many of the ‘peoples representatives’ (privy to the details/impact of this settlement) bought bank stock in the past 60-90 days.

JPMorgan Chase…Same date of the low…just before Christmas at just under $31, to a close on Friday of just under $38.00…only a 22% return (and that's NOT annualized) on that trade.
Wells Fargo…SAME low date just before Christmas, of about $25.50 to a close on Friday of $30.30. Another tidy return of about 20% in 60 days.

If you laid these charts on top of one another…they are almost identical in movement! The terms were leaked, the impact evaluated, and then the party started!

I’ll post again on this when the FULL details are finally released, whenever that may be!

Thanks for reading and putting up with my heavy dose of cynicism…Steve Jackson

Call or email me any time with your take on the matter, 561-602-1258

The BIG bank settlement…

2012-02-09T18:02:00.001-05:00

Here are the main details of todays multi-state bank fraudclosure settlement…my analysis and opinion will come in a few days, after I have had time to read and digest the full settlement (which I have to diligently search for because it is not readily available)

NEW YORK (CNNMoney) -- The nation's five largest banks have finally struck a deal with 49 states to settle charges of abusive and negligent foreclosure practices dating back to 2008.

Under a deal announced Thursday, the banks will commit $26 billion to help underwater homeowners and compensate those who lost their homes due to improper foreclosure practices…

What did the mortgage lenders and loan servicers agree to do? The banks and servicers have committed at least $17 billion to reduce principal for borrowers who 1) owe far more than their homes are worth 2) are behind on payments.

The amount of principal reduction will average about $20,000 per borrower.

Another $3 billion will go toward refinancing mortgages for borrowers who are current on their payments. This will enable them to take advantage of the historic low interest rates currently available.

The banks will pay $5 billion directly to the states, the only hard money involved in the deal. Out of that fund will come payments of $1,500 to $2,000 to homeowners who lost their homes to foreclosure. Other funds will be paid to legal aid and homeowner advocacy organizations to help individuals facing foreclosure or experiencing servicer abuses.

Another $1 billion will be paid directly by Bank of America to the Federal Housing Administration to settle charges that its subsidiary, Countrywide Financial, defrauded the housing agency.

In addition, the banks agreed to eliminate robo-signing altogether and to use proper and legal procedures when putting homeowners through the foreclosure process. They also agreed to end servicer abuses, like harassing delinquent borrowers for payments, and to include principal reductions more often in their mortgage modifications programs.

Is my mortgage lender taking part in this settlement? Bank of America, Wells Fargo , JPMorgan Chase, Citigroup and Ally Financial
are taking part in the settlement.

In addition, nine other unnamed loan servicers may join the settlement later, and that would bring its value to $30 billion.

Loans owned or backed by Fannie Mae and Freddie Mac, however, are not part of the deal. The Federal Housing Finance Agency, which oversees the two government-sponsored mortgage giants, will not allow any balance reductions for loans insured by the companies under the settlement.

I lost my home to foreclosure; how do I know if I qualify for payment? If you were foreclosed on in the calendar years 2008 through 2011, you may be be eligible for a payment of up to $2,000. People who think they may qualify should notify their bank.

What should I do if I think I may qualify for a principal reduction or refinanced mortgage? Contact your lender/servicer and ask them to review your case.

If I take the money, what rights do I give up? Individual borrowers do not give up any right to sue.

As part of this deal, state attorneys general gave up the right to sue the mortgage servicers for foreclosure abuses arising out of the robo-signing scandal. However, they reserve the right to sue if they uncover improper acts when the loans were originated or when they were securitized.

When will the new rules and bank policies be put into place? Most of them have already become part of bank policies.

When will homeowners get paid? HUD said the settlement will be put before a court for approval within two weeks. It is unknown how long it will then take for a court to rule.

The relief for homeowners has to be completed within three years, but the state attorneys general and HUD want it to be front-loaded and completed within 12 months.

Would I have to pay taxes on the principal reductions or the pay-outs? If the principal is reduced in 2012, it will not be subject to income tax.

That's because the Mortgage Debt Relief Act of 2007 allows taxpayers to exclude income from the discharge of debt on their principal residence. The act is scheduled to expire at the end of this year, however.

So if the act is not extended and the principal reduction occurs in 2013, borrowers may be on the hook to pay taxes on the settlement amount.

It's not clear whether you would have to pay taxes on the $1,500 to $2,000 payout. The IRS declined to comment on the question.

Will the settlement make it harder to get a mortgage? The new rules and regulations the banks have agreed to under the settlement should have little impact on future mortgage borrowing since most of practices are already in place, said Keith Gumbinger of HSH Associates, a mortgage information provider.

Only $5 billion of the $26 billion settlement will be a direct cost to the banks. The remainder will be the cost of modifying mortgages. Many of those modifications may be in the best interests of the banks to make, however, since the alternative may be foreclosure, which can cost banks more than modifications.

Come back in a day for my insight and analysis of the States Attorneys General settlement with these 5 banks! I’m certain it will be a bit different than the popular spin being put on it now.

Thanks for reading…Steve Jackson

561 602 1258 (direct)

––For Every Two Homes Available for Sale, There Is One “In The Shadows”––

2012-01-25T18:52:00.001-05:00

CoreLogic® (NYSE: CLGX), a leading provider of information, analytics and business services, reported today that the current residential shadow inventory as of October 2011 remained at 1.6 million units, representing a supply of 5 months. This was down from October 2010, when shadow inventory stood at 1.9 million units, or 7-months’ supply, but approximately the same level as reported in July 2011. Currently, the flow of new seriously delinquent loans into the shadow inventory has been offset by the roughly equal flow of distressed (short and real estate owned) sales.

CoreLogic estimates the current stock of properties in the shadow inventory, also known as pending supply, by calculating the number of distressed properties not currently listed on multiple listing services (MLSs) that are seriously delinquent (90 days or more), in foreclosure and real estate owned (REO) by lenders. Transition rates of “delinquency to foreclosure” and “foreclosure to REO” are used to identify the currently distressed non-listed properties most likely to become REO properties. Properties that are not yet delinquent but may become delinquent in the future are not included in the estimate of the current shadow inventory. Shadow inventory is typically not included in the official metrics of unsold inventory.

Data Highlights:

As of October 2011, shadow inventory remained at 1.6 million units, or 5-months’ supply and represented half of the 3 million properties currently seriously delinquent, in foreclosure or in REO.
Of the 1.6 million properties currently in the shadow inventory (Figures 1 and 2), 770,000 units are seriously delinquent (2.5-months’ supply), 430,000 are in some stage of foreclosure (1.4-months’ supply) and 370,000 are already in REO (1.2-months’ supply).
Florida, California and Illinois account for more than a third of the shadow inventory. The top six states, which would also include New York, Texas and New Jersey, account for half of the shadow inventory.
The shadow inventory is approximately four times higher than its low point (380,000 properties) at the peak of the housing bubble in mid-2006. A healthy housing market should have less than one-month’s supply of shadow inventory, which would be an easily absorbed stock of distressed assets with little or no discernable impact on house prices, unless the inventory was geographically concentrated.
Despite 3 million distressed sales since January 2009, a period when home prices were declining at their fastest rate, the shadow inventory in October 2011 is at the same level as January 2009.
Because shadow inventory is often concentrated in suburban and exurban submarkets, where distressed sales compete with new construction sales, it is one of the reasons why new home sales continue to be weak. In normal times, new home sales account for 12 percent of all sales, but they are currently running at 7 percent of all sales.
Based on current estimates of the visible inventory (both distressed and non-distressed), the shadow inventory is approximately half of all visible inventory listings. For every two homes available for sale, there is one home in the “shadows”

“The shadow inventory overhang is a large impediment to the improvement in the housing market because it puts downward pressure on home prices, which hurts home sales and building activity while encouraging strategic defaults,” said Mark Fleming, chief economist for CoreLogic.

The full report can be found at http://www.corelogic.com/ShadowInventoryOct2011.

I do follow CoreLogic reporting every month…however, there are other, credible, estimated of the shadow inventory of 3-4 times what CoreLogic reports. And this is what is going to keep our values from increasing any time soon.

Thanks for reading…Steve Jackson

Call me directly at 561-602-1258

What if the Federal deficit was your household debt?

2012-01-20T07:06:00.001-05:00

Freddie Mac offers help for the unemployed

2012-01-06T17:25:00.001-05:00

Just this afternoon I received an email bulletin from Freddie Mac that may give some relief to unemployed individuals having difficulty making payments on a Freddie Mac loan.

Here is a brief overview with a link to the actual Freddie Mac document I received:

Freddie Mac, (Bulletin 2010-17), is introducing new forbearance requirements to provide a “short-term unemployment forbearance” relief option to assist Borrowers who are unable to make their Mortgage payment due to unemployment.

In addition, Freddie Mac is introducing an “extended unemployment forbearance” relief option to provide an extension of the forbearance period if such Borrowers have not regained employment after the short-term forbearance period has ended. Including these additional relief options in our loss mitigation tool kit gives unemployed Borrowers an opportunity to retain homeownership by providing Mortgage payment relief while they seek re-employment.

Servicers will have delegated authority to approve eligible Borrowers for a short-term unemployment forbearance period of six months during which time the monthly Mortgage payment is either suspended or reduced.

If the Borrower remains unemployed at the end of the short-term unemployment forbearance period, the Servicer must consider the Borrower for extended unemployment forbearance in accordance with the Guide.

If the Borrower meets the eligibility criteria for extended unemployment forbearance, the Servicer must obtain Freddie Mac’s written approval before entering into an extended unemployment forbearance plan with the Borrower.

EFFECTIVE DATE: Changes announced in this Bulletin are effective February 1, 2012 for all new Borrower evaluations for an alternative to foreclosure. However, Servicers may begin implementing the unemployment forbearance relief options earlier for all new requests for assistance in which an eligible Borrower’s hardship is unemployment.

If you have any question about Freddie Macs new plan, above, or any other questions regarding foreclosure alternatives, please pick up the phone and call me directly at 561-602-1258...or send me an email

Thanks for reading my blog…Steve Jackson

2012

2012-01-02T10:04:00.001-05:00

To help you celebrate and reflect here is a collection of quotes to start the new year.

In the New Year, may your right hand always be stretched out in friendship, but never in want. -Irish toast

Your Merry Christmas may depend on what others do for you … but your Happy New Year depends on what you do for others. -Author unknown

Your success and happiness lies in you. Resolve to keep happy, and your joy and you shall form an invincible host against difficulties. Helen Keller

We will open the book. Its pages are blank. We are going to put words on them ourselves. The book is called Opportunity and its first chapter is New Year’s Day. Edith Lovejoy Pierce

One resolution I have made, and try always to keep, is this: To rise above the little things. John Burroughs

We spend January 1 walking through our lives, room by room, drawing up a list of work to be done, cracks to be patched. Maybe this year, to balance the list, we ought to walk through the rooms of our lives…not looking for flaws, but for potential. Ellen Goodman

Be always at war with your vices, at peace with your neighbors, and let each new year find you a better man. Benjamin Franklin

May the best of this year be the worst of next. Unknown

Resolve to make at least one person happy every day, and then in ten years you may have made three thousand, six hundred and fifty persons happy, or brightened a small town by your contribution to the fund of general enjoyment. Sydney Smith

2011-12-24T05:34:00.001-05:00

Drawn by me…for you!

Merry Christmas…Happy Holidays!

NAR…”OOPS”!

2011-12-24T05:20:00.001-05:00

I think it's time to tell everyone what I have known for a long time now...What the acronym NAR actually stands for. I know that they would like you to believe that it is 'National Association of Realtors', but the real truth, revealed to all recently is that NAR stands for: 'Numbers Aren't Real'!

The NAR US Housing Home Sales Figures were artificially inflated by at least 11% per year for the period of 2007-2010. Nice work NAR! They said there were a few "errors' in data collection and interpretation". And I think that it goes back to BEFORE 2007...why did they only go back and revise to that year? “Sales were weaker than people thought (or were lead to believe by NAR reports),” said chagrined NAR spokesman Walter Malony. Data firm CoreLogic accused the NAR of over-counting home sales back in May of this year. At the time, the organization insisted that any issues with their numbers would be “relatively minor.” Unfortunately, NAR economist Lawrence Yun has revised that prediction to say that the changes in reporting will be “meaningful,” adding that “this means the housing market’s downturn was deeper than what was initially thought”.

Being in the business every day for a long time now, I began to see a slowdown in the 1st half of 2006 and an 'accelleration' in price and volume declines right at the beginning of 2007. My analysis shows that the air started to come out of the bubble, at least in Palm Beach County, right at the end of 2005. I could go in to their methodology and poke a thousand holes in it...but I'd bore everyone but myself.

The readers who regularly read my blog posts will know that I don't "toe the line" when it comes to the NAR/FAR, etc. Coincidentally, a blog post I wrote just about 5 weeks ago, http://winstontrails.blogspot.com/2011/11/if-they-keep-predicting-market.html skewers the NAR for their inept (intentionally misleading) comments.

Below are the charts that reflect the adjustments.

So...what does this all mean? Why now? And what is the effect of this revision?

Well, I think the "why now" question can be answered by NAR being called out on their numbers by CoreLogic a few months ago.

But the "what does this all mean" question has many possible answers depending upon the angle it is being viewed from. My obvious, but cynical, view is that the NAR and administration can now more easily report "improvments" in home sales. The new sales figures will be compared to the re-benchmarked historical sales and will paint a rosy housing and economic picture going forward. And if the reporters (TV and print) continue to just repeat data rather than dig in to the meaning of the data, the re-benchmarked (lower) figures will fade into distant memory...and the 'improving home sales numbers' will be evidence of our 'robust and recovering' economy.

Lastly, what does this effect? This question is better answered by a formally trained economist, but I have to believe that these numbers somehow impact GDP in a negative sense, retroactively.

If you've read this far, I commend you! Seriously though, if you are considering your options, whether it be selling or purchasing real estate, call me. You don't want to take the chance of ending up getting advice and consulting with an NAR drone who is taught to memorize "objection handling dialogs' and sales tactics.

My direct line is 561-602-1258 or

As always…thanks for reading,

Steve Jackson

A Thanksgiving message to our readers

2011-11-23T15:10:00.001-05:00

2011-11-23T12:37:00.001-05:00

Click above to see the latest housing trends newsletter

2011-11-11T06:49:00.001-05:00

If they keep predicting a market bottom…eventually they’ll all be right!

2011-11-10T14:44:00.001-05:00

Just to say it at the outset of this post…why don’t any of the reporters, be it newspaper, online outlets or television, ever do any research and ask any tough questions when they continue to interview and quote the “experts” regarding housing?

Case in point: Here is a headline of an article/interview of Zillow chief economist, Stan Humphries, 18 months ago:

As Housing Market Nears Bottom, Pent-Up Supply Waits…And here is the prediction directly from the article: We forecast that the nation will hit a bottom in home values in the third quarter of this year, (which would have been July-Sept 2010) but that there will be negligible appreciation in home values for three to five years after we’ve reached bottom…

Case-Shiller, an oft quoted research firm has this on-the-money prediction from an interview from November 30th 2009:

U.S. home prices are unlikely to fall much further in the next year even after a “discouraging” report on values in September, said Karl Case, the co-creator of the S&P/Case-Shiller Index.

“If I were betting even odds, I’d bet that we don’t have much further decline, but that we bounce along the bottom,” Case, a retired professor of economics at Wellesley College, said today in a Bloomberg Television interview…

And then here is a quote from an interview Shiller did less than 60 days ago: SHILLER: “House Prices Probably Won’t Hit Bottom For Years”

And the icing on the cake has been our own chief economist(s) of the National Association of Realtors:

04/2006: We can expect a historically strong housing market moving forward, earmarked by generally balanced conditions across the country and fairly stable levels of home sales with some month-to-month fluctuations.”, NAR

07/2006: “Right now we are on course for a soft-landing in housing.”, NAR

10/2006: “The worst is behind us, as far as a market correction. This is likely the trough for sales. When consumers recognize that home sales are stabilizing, we’ll see the buyers who’ve been on the sidelines get back into the market.”, NAR.

12/2006: “At least the bottom appears to have already occurred. It looks like figures will be improving.”, NAR.

01/2007: “It appears we have established a bottom” David Lereah, NAR Chief Economist.

07/2007: “Home sales will probably fluctuate in a narrow range in the short run, but gradually trend upward with improving activity by the end of the year.”, NAR

11/2007: “I don’t anticipate any further major sales declines,” Yun said. However, the NAR didn’t anticipate the sales declines of the past two years, and it’s been predicting a bottom nearly every month since early 2006. (from Marketwatch)

02/2008: Reuters reports that “The NAR’s chief economist, Lawrence Yun, said the market is ‘scratching the bottom,’ with sales holding at a deflated rate of around 5 million units for the past several months.”

02/2008, There is no chance of a large price decline in Rockford, Lawrence Yun told a crowd of more than 400 at Cliffbreakers, 700 W. Riverside Blvd. There is not a price bubble in Rockford., BusinessRockford.com (see July, 2009 news report below)

07/2008: There are signs of pent up demand . I think we are very near to the end of the housing downturn, Yun said.

12/2008: I would not have done anything different. But I was a public spokesman writing about housing having a good future. Ex-NAR Chief Economist Lareah.

04/2009: “We are close to the bottom, says Lawrence Yun, chief economist for the National Association of Realtors. Once home sales begin to rise that could boost home buying confidence and get others off the sidelines.”

04/2009: The “worst may be over” in parts of the West, said Lawrence Yun, NAR Chief Economist.

07/2009: Follow up from 2/08 quote above: BusinessRockford.com – The local housing market showed few signs of rebounding in the first half of 2009, with sales of single-family homes and condominiums falling nearly 20 percent and median sale prices falling in all but two of the Rock River Valley’s largest municipalities... In Rockford, the median prices of the 61104 ZIP code are down 52.3 percent from the first six months of 2008, dropping from $64,950 to just $31,000.

Now, more than ever, it is so important to work with an agent that will consult, diagnose and recommend solutions based upon a multitude of factors…with the MOST important one being; what is in YOUR best interest.

In the past several years, I have ‘converted’ many buyers into renters, but also, some renters into buyers, because that's what we decided, together was the best option for them. I have also dissuaded many sellers from becoming ‘landlords by default’ and putting tenants in their homes while waiting for “prices to go up’ because they didn’t want to “give their house away”. On the flip side of that coin, I just had a conversation with a prospective client yesterday and we decided AGAINST selling, as the cash-flow the home would generate, along with the tax benefits of renting outweighed the prospect of home value declines…their time horizon was sufficiently long to mitigate the risk when compared to the monthly cash flow.

If you would like to discuss all of the factors that you should be considering, whether it be on the selling or buying side, please call me at 561-602-1258…or email me at Steve@TheJacksonTeam.com

Thanks for reading,

Steve Jackson

Home values…Negative equity…etc

2011-11-09T03:23:00.001-05:00

Nationally, on a year-over-year basis, Zillow reports that home values were down 4.4 percent with the Zillow Home Value Index at $171,500. Overall, this quarter could have looked a lot worse considering all of the economic headwinds and turbulence that materialized over the summer. In terms of strict fundamentals, housing affordability looks compelling with big resets in home value levels and historically low mortgage rates. At this point, however, it’s clearly an issue of confidence, and high unemployment and economic uncertainty are not helping on this front. While we still have a ways to go in terms of home value depreciation, the pace at which home values are falling has declined considerably during the course of this year. Nationally, foreclosure re-sales made up 18.9 percent of all sales in September, up slightly from the Q2 level of 18.8 percent. Foreclosure re-sales have, however, significantly increased from their Q3 2010 levels of 15.1 percent. This foreclosure pipeline will continue to depress home prices moving forward...the large shadow inventory will keep pressure on pushing home prices lower. That is why year over year home prices are still falling:

Negative Equity

National negative equity edged up slightly to 28.6 percent , (the local negative equity figure is close to 50% when you count all of the homes that are within 5% of being in a negative equity position) of all single-family homes with mortgages, compared to 26.8 percent in the second quarter. Negative equity fell in the second quarter on the basis of sharp improvements in depreciation rates and flat foreclosure rates. This quarter, however, home values remained relatively flat while foreclosure rates slowed further, and these two factors combined to increase negative equity. (Because Zillow and other firms that calculate negative equity use valuations, each which has some margin of error, and because the number of homeowners just barely in positive equity is somewhat greater than the number who are just barely in negative equity, the estimation error will tend to incorrectly place more people in negative equity (who are, in fact, in positive equity) than is offset by incorrectly placing people in positive equity (when, in fact, they are in negative equity). This subtle point has the possibility of producing an upward bias in the negative equity statistic.)

People selling their homes in Palm Beach County lost money nearly 46 percent of the time during the third quarter of this year, according to Zillow. The percentage of Palm Beach County properties that sold for a loss between July and the end of September, was a 3.4 percent increase from the previous quarter and at an elevated rate predicted to continue through at least next year.

Any homeowner who is in negative equity and who experiences a financial setback, like a job loss, income reduction or divorce, will find their options limited. To sell a home while underwater means the seller must pony up the difference between the mortgage and the current value, or negotiate a short sale with their bank. Therefore, negative equity does open homeowners up to risk they would not otherwise encounter, and it’s important to understand the total universe of homeowners who have this increased risk.

If you happen to fall in to the 50% at or near being upside down and you need to sell or just want to know what your options may be, visit our blog http://www.shortsales123.com/, read some of the posts, then give me a call at 561-602-1258.

Thanks for reading,

Steve Jackson

Have a loan with BofA? NOW IS THE TIME TO DO A SHORT SALE!

2011-10-22T16:46:00.001-04:00

If you have a loan with BofA and owe more on your loan than your home is worth…DO NOT WAIT…CALL ME TODAY

(you’ll see why below)

Below is a partial screen-shot of an email that I recently received from Bank of America.

They are offering a MINIMUM of $5,000 paid to you, the short sale seller, at closing…and possibly as much as $20,000!

BUT…we only have about 6 weeks to get started.

Really, no kidding…if you have a Bank of America (Countrywide too) loan and are upside down…this is a great opportunity.

My direct # is 561-602-1258…if you reach my voicemail, leave me a message…or you can also send me a text to that number.

Thanks for reading…Steve Jackson

Think buying a bank-owned home is a good deal? Not so fast!

2011-10-20T09:59:00.001-04:00

We have always counseled our clients that when buying a bank-owned home there are many pitfalls and caveats...but this Massachusetts court decision casts a very dark shadow on foreclosure sales:

I see many buyers and investors flock to foreclosures because they think that's where the best deals are...but considering the above risk as well as the fact that some of the overall best deals are NOT bank-owned properties..we suggest that our clients consider other options that meet their investment/lifestyle criteria.

Please feel free to call me on my direct line at 561-602-1258 if you have any questions about the above court decision or would like to discuss your investment goals.

Thanks for reading...Steve

Bank Risk Managers: Home Prices Won't Recover Until 2020

2011-10-09T13:50:00.001-04:00

An interview of bank risk managers by Julie Crawshaw this past week on Moneynews.com revealed the sentiment that home prices are unlikely to recover before 2020 and mortgage defaults will persist for years.

The Professional Risk Managers’ International Association latest quarterly survey of bank risk professionals done for Fair Isaac Corporation shows that bankers expect delinquencies on consumer loans to rise, underwriting standards to become stricter, and the housing sector to continue struggling far into the future.

“Housing has been an enormous drag on the economy for over three years as U.S. households lost trillions of dollars in equity,” said Dr. Andrew Jennings, chief analytics officer at FICO and head of FICO Labs.

“While the housing sector will almost certainly gain strength during the next nine years, many bankers clearly believe prices will remain depressed for half a generation." "This puts the devastation of the housing crash into perspective.”

Among bankers surveyed, 49 percent said that recovery would not occur until 2020 and 73 percent believed mortgage defaults would remain elevated for at least five more years.

Furthermore, 46 percent of respondents expected mortgage delinquencies to increase over the next six months, and only 15 percent of respondents believed mortgage delinquencies will decline during that period. Only 15 percent of respondents expect mortgage delinquencies to decline during that period.

Housing prices nationwide could keep falling and might not bottom out for years, says Yale Professor and housing expert Robert Shiller.

In February, Shiller said housing prices could still fall 10 percent to 25 percent in real terms before hitting bottom. He recently told Yahoo’s The Daily Ticker he's standing by the prediction, adding that the economic big picture is looking worse. "I think the economic situation looks more precarious now," says Shiller, one of the authors of the S&P Case-Shiller Home Price Index, which was down 4.1 percent year-on-year in July although up from previous months earlier this year.

My comments: These type of stories always intrigue me for the sheer fact of how superficial and incomplete reporting has become. The sentiment is interesting and accurate, on the surface. However, one of the most important details; What is the risk managers definition of “recovery”, was omitted. Does “recovery” mean that prices will regain the highs of 2005? Does it mean simply that 2020 is when they think prices will stop declining and resume a historical rate of modest appreciation?

And housing is inherently local in nature…while some markets may not “recover” until well after 2020…some have already neared a bottom.

Here in Palm Beach County, with about 50% of all homes with mortgages already in a negative equity position (under water) and a non-existent job recovery, wed are going to have continued mortgage defaults and distressed sales (short sales and bank-owned sales)…which will, in turn, continue the cycle of increasing the percentage of properties in a negative equity position and increasing the probability of further defaults.

I can guarantee, unless we have serious inflation, that 2020 will NOT bring back the good old days of 2005…and inflation may not even accomplish it without serious and stable job growth.

Thanks for reading…Steve Jackson

Ocwen rolls out a new loan modification for underwater borrowers

2011-09-30T04:21:00.001-04:00

Finally a lender gets a brain! Locally based Ocwen recently revealed a plan that incorporates many of the components of a loan mod/refinance that I suggested over a year ago: Reduce the loan amount to today's value, write off the ‘underwater portion’ over a number of years if the owners stays current on all mortgage obligation aspects, and if/when the home is sold, Ocwen will recoup some of the regained equity…Brilliant! The other big added benefit to the lender is that they get to draw up new loan documents without all of the defects that are being challenged in court right now…and I wouldn’t be surprised if they slip in some new restrictive language to the now docs too!

For all of you with an underwater Ocwen loan…CALL THEM TODAY to see if you can qualify, then call me and let me know the details of the process/qualification/final terms so I can spread the news.

Below are excerpts from the article that was in the Palm Beach post.

The company is rolling out a new loan modification plan for underwater borrowers that lowers the amount owed on the loan - thus reducing the monthly payment - but asks for a share in the appreciated value when the house is either sold or refinanced.

The kickback to the lender may deter people who can afford to make their payments from defaulting, while giving an incentive to either the lender or investor to modify the loan.

"We think this answers some of the critics who say that by reducing principal, you are rewarding imprudent borrowing behavior," said Ocwen Executive Vice President Paul Koches. "What we see is unprecedented delinquencies, and we're doing our best to resolve them."

Offered in 33 states, including Florida, the plan is available only on loans where it will earn more for either the lender or investor than if the home went into foreclosure.

Called a shared appreciation modification, it's fairly simple on its face.

A home's principal amount is reduced to 95 percent of the current market value. That portion is forgiven in equal amounts over a three-year period as long as the owner stays current on the loan.

When the house is later either sold or refinanced, the homeowner must give the lender 25 percent of the appreciated value of the home.

For example, say the principal balance on a loan is $125,000, but the current value of the home is only $100,000. Ocwen's plan would reduce the balance to $95,000, putting $30,000 in a non-interest-bearing account that will be forgiven over a three-year period.

If the house is later sold for $120,000 - marking an appreciation of $20,000 - the homeowner would get to keep $15,000, while $5,000 would go to the lender. If the home doesn't appreciate, then the sale occurs as it normally would.

Ocwen, which has about 245 employees in its West Palm Beach office, estimates about 53,000 homeowners nationwide will be eligible for the principal reduction program.

The company specializes in servicing the nation's riskiest home loans and has a portfolio of about 460,000 loans. Ocwen's recent acquisition of Litton Loan Servicing will add 250,000 loans to its portfolio.

A test of the new loan modification program that was launched last year found that of borrowers offered the plan, 79 percent accepted it. The default rate has been about 2.6 percent.

"You have folks breaking their necks to make payments on a home where there is no hope in their lifetime of it regaining equity," Koches said. "A homeowner in a negative equity situation is one-and-a-half to two times more likely to go into delinquency."

In Palm Beach County, nearly 43 percent of homes with mortgages were underwater during the first quarter of 2011, according to real estate analysis firm CoreLogic.

Most home loan modifications result in an interest rate reduction, which can do little in the long run for homeowners who owe more on their loan than their home is worth, said Kathleen Day, spokeswoman for the Center for Responsible Lending.

"We've felt for a long time that unless you do principal write-downs, you really aren't getting at the problem," Day said. "It's in everyone's best interest to keep a credit worthy person in their home."

Thanks for reading…Steve Jackson

10 million more foreclosures in the pipeline

2011-09-20T19:16:00.001-04:00

In August, the Obama administration asked the housing industry for ideas on how to more efficiently sell or unload this overhang, and the Senate heard testimony from various housing players Tuesday.

Roughly 10.4 million mortgages, or one in five homes with a mortgage will likely default if Congress refuses to implement new policy changes to prevent and sell more foreclosures, according to analyst Laurie Goodman from Amherst Securities Group.

At the end of the second quarter, more than 2.7 million long-delinquent loans, others in foreclosure and REO properties sat in the shadow inventory, more than double what it was in the first quarter of 2010. With the market averaging roughly 90,000 loan liquidations per month, it would take 32 months, nearly three years, to move through the overhang…and that number is contingent on NO other loans going into default.

"Many analysts looking at the housing problem mistakenly assume it is limited to loans that are currently non-performing (or 60-plus days past due). Such borrowers have a high probability of eventually losing their homes. However, the problem also includes loans with a compromised pay history; these are re-defaulting at a rapid rate," Goodman told a Senate subcommittee Tuesday.

Most of the proposals included recommendations to sell properties ‘in bulk’ to investors with one of the stipulations being that they be turned into rentals. (italics mine)

Stan Humphries, chief economist for Zillow, said the rental market is currently booming and would be able to handle a mass conversion of foreclosures into rentals. "Investors smell a distinct opportunity in this situation: The chance to buy an asset cheaply and rent it out. In fact, close to one-third of the purchases of existing homes this year have gone to all-cash buyers, the bulk of whom are real estate investors," Humphries said.

This sounds to me like the housing equivalent of ‘cash-for-clunkers’ which resulted in the removal from the market of tens of thousands of good, affordable used cars, as the requirement was to “junk’ the clunker trade-in (the dealers were not allowed to re-sell them)…The same thing will happen with homes; currently, a lot of buyers can’t purchase a great many of the foreclosed homes as they require too much work and/or don’t qualify for an FHA loan. Typically, the buyers in the under $250k market, (where a great percentage of the foreclosed homes sell), are FHA buyers because they DON’T have a lot of cash…so they are not able to ‘buy and rehab’. BUT, that is where cash buyers come in…they buy, rehab to move in condition, and re-sell…quite often to FHA or other low-down-payment buyers and they make a little money doing it…as they should. But if you take away these homes by requiring that they be converted to rentals, how does that help? Well, it helps the big companies, REITS, and investment groups that will get a piece of that sweet deal!

Just read my recent posts regarding the scary legislation working its way through Tallahhssee now…going to make it sooo easy, cheap and fast for the banks to get these homes back…We need everyone to PAY ATTENTION…and thanks for reading!

Steve Jackson

Foreclosures ramp up: County's 13% jump the trickle before the dam breaks, experts warn

2011-09-15T07:02:00.001-04:00

More Palm Beach County homes received first-time foreclosure notices in August than the previous month, and experts warned Wednesday that the 13 percent increase is just a trickle before the flood.

Statewide, new foreclosure filings were up 10 percent last month from July, according to findings to be released today by the Irvine, Calif.-based company RealtyTrac.

Nationally, initial notices of foreclosure were up 33 percent.

But unlike previous reports that found increases and decreases in foreclosure activity were similar nationwide, there was a marked difference in August between judicial states, where a judge is required to sign off on a home repossession, and non-judicial states.

In the 25 states RealtyTrac considers non-judicial, initial foreclosures leapt 46 percent in August from July, although they were still down 10 percent from August 2010. In judicial states, including Florida, there was only a 21 percent increase in August from July, with a 25 percent drop from last year.

"I've been told by a number of banks' lawyers that they have cases ready to go and are just waiting for approval to file," said Mike Wasylik, a foreclosure defense attorney with the firm Ricardo, Wasylik & Kaniuk, which has an office in Boca Raton. "I've been expecting the dam to break for months now and I think there is still uncertainty about what is going to happen with regulatory actions and pending settlements."

Foreclosures were suspended last fall following questions about the validity of court documents used to take back homes. Activity remained on a simmer through early spring and has jumped around since then as lenders continue to patch up their foreclosure processes.

The nation's largest home lender and servicer, Bank of America, confirmed Wednesday it had ramped up foreclosures in non-judicial states, including Nevada, which saw a 31 percent increase in new filings in August from July. California, also a non-judicial state, saw a 55 percent increase.

"Strong gains like that from July to August demonstrate our progress, clearing more volume to advance to foreclosure once we pass the numerous, improved quality controls we have in place and only after all other options with homeowners have been exhausted," said Jumana Bauwens, a Bank of America spokeswoman. "The industry has not yet returned to normal or necessary foreclosure activity levels, but progress is certainly being made."

Still, lenders face more uncertainty.

Earlier this month, the Federal Housing Finance Agency sued 17 financial firms for selling Fannie Mae and Freddie Mac billions of dollars' worth of risky mortgage-backed securities that turned sour when the market collapsed.

Also, settlement negotiations continue between banks and the nation's attorneys general. The attorneys general joined last year in an effort to investigate the robo-signing scandal, penalize lenders for their paperwork missteps and help struggling borrowers.

"The banks don't know what their exposure is from past problems or that they have resolved the problems to the satisfaction of the attorneys general," said Guy Cecala, chief executive officer and publisher of Inside Mortgage Finance.

But foreclosures have not come to a complete standstill.

Last month, 715 Palm Beach County homes were sold at auction - the final step in a foreclosure - according to Palm Beach County Clerk of Courts data released Wednesday.

Just 31 percent of scheduled auctions were canceled, a decrease from a high of 51 percent in January when banks hurried to delay sales in the wake of the robo-signing scandal.

The Palm Beach County clerk's office tallied 1,126 initial foreclosure filings last month. That's slightly higher than RealtyTrac's 926, but could be a function of when the numbers were gathered.

"We were anticipating another wave of foreclosure filings this year, based on expert forecasts, but so far an influx of new cases has yet to materialize," said Clerk Sharon Bock.

RealtyTrac has lowered its nationwide prediction of total foreclosure filings - initial notices, sale notices and auctions - for 2011 from 3 million to 2.5 million.

"As painful an issue as foreclosure is, it has to get back on track, otherwise we'll slip further and further behind," Cecala said. "The year 2011 will go down as the year that nothing got done."

If you have been reading my blog, you have read about the scary pro-bank bill under review now in Florida…my guess is that the banks are holding back going forward here in full force in the hopes that this bill gets passed in the dark of night. Then, the banks can EASILY FORECLOSE AND TAKE POSSESSION OF HOMES. The bill even has a provision that if you defend your foreclosure but the bank eventually does get to foreclose…YOU AND YOUR ATTY HAVE TO PAY THE BANKS LEGAL FEES!

Thanks for reading…Steve Jackson

2011-09-08T07:18:00.001-04:00

Our sales manager, John Durante, is an accomplished drummer/musician. Just days after the 9-11 tragedy, John and his band wrote this tribute to the victims. Below is the video of John and his band performing that song.

Your 2011 proposed property tax bill…think it’s wrong?

2011-09-05T09:45:00.001-04:00

At the end of last week you should have received your 'proposed' 2011 Tax bill in the mail. If you haven't taken the time to open it up and dig into it...now is a good time to do that. I have put together a short video regarding the tax bill/appeal. September 16, 2011, is the deadline to file a petition with the Value Adjustment Board to challenge a property’s market value, classification, or an exemption.

If you would like some help in determining if your assessed value is accurate, send John or I an email or give us a call: John can be reached at 561-685-1867 and I can be reached at 561-602-1258.

Also, below, I have placed several links that are helpful in navigating the tax appeal process.

Click on the image above to go to the VAB site for all forms and instructions.

And if you haven't received your proposed tax bill, misplaced it already or just threw it away, click on the image above and pull up your tax bill from the property appraiser site directly.

Click on this image, above, to go directly to the appeal form

Here is the link to the Frequently asked questions

portion of the appeal website

Thanks for reading our blog.

Steve Jackson

Is Florida the Next Non-Judicial Foreclosure State

2011-08-24T16:06:00.001-04:00

Please forward this blog post to every Floridian that you know or share it on your Facebook page…if this gets passed, it will be devastating for tens of thousands of homeowners. It will, in essence, take away the right to challenge the banks foreclosure (fraudulent documents and all) AND includes a huge disincentive to foreclosure defense attorneys from even taking your case.

If the mortgage industry has its way, the passage of a new bill floating around Tallahassee will ensure that Floridians will be displaced from their homes without legal representation or due process. In typical Orwellian style, this bill is entitled the Fair Foreclosure Act – it’s anything but . . .

Florida often makes the national news when it comes to foreclosures, and it’s never positive. According to a recent 24/7 Wall Street study, three of the ten housing markets most likely to collapse in 2012 are in Florida. Naples, Miami and Ft. Lauderdale all make the top 10, and the rest of the Sunshine State isn’t far behind.

In its preamble, the FFA actually says, “Once suit has been filed, the public interest is served by moving foreclosure cases to final resolution expeditiously in order to get real property back into the stream of commerce.” Of course, it is this glut of foreclosed homes flooding the real estate market that has all but ensured its collapse. REO properties typically sell far below market value, and when so many REOs exist, it drives the overall market to new lows. The vicious cycle is complete as more homeowners suffer increased losses from a down market.

So the bill’s stated purpose is flawed right from the outset, but getting our homes back into the “stream of commerce” really isn’t the purpose of the Fair Foreclosure Act. Its sole design is to take Floridians’ property without due process or equal protection under the law.

Florida has a proud history of whoring for the mortgage industry, and while states across the country are fighting to restore honor and integrity to our judicial system, Florida has taken a different approach. In Florida, the Supreme Court and our elected state officials are doing what they can to ensure their benefactors . . . the banks . . . get what they want.

Remember Foreclosure Court? It unconstitutionally employed retired senior judges to act as mortgage mercenaries – ramrodding defective foreclosures through the judicial system despite national ridicule. I am actually shocked it fell victim to Governor Scott’s massive spending cuts. That must have been a mistake.

Then, with the addition of Pam Bondi as our new Attorney General, the mortgage industry took firm control of our prosecutors as well. Ms. Bondi all but killed any investigation into foreclosure fraud, and fired two assistant prosecutors who gained national attention for piecing together a massive conspiracy by the mortgage industry to defraud our state court judges in foreclosure cases.

BUT, these acts of treason pale in comparison to the Fair Foreclosure Act, which proposes to do the following:

Where the amount of principal and interest equals or exceeds 120% of the just value of the home, it will allow the mortgage company to foreclose without going through the judicial process. That means no foreclosure complaint, no defense, no due process, no justice. It will be as easy to take your home as it is to repo a car.
It will repeal Florida Statutes § 57.105, which awards attorney fees to homeowners who successfully defeat mortgage companies in court. At the same time, it assesses attorney fees against a homeowner and his lawyer (in equal parts) if the mortgage company prevails. The design here is to stop consumer lawyers from taking any more foreclosure cases by making it impossible to make money and even personally expose the lawyer to penalties. Consumer lawyers will have no upside potential and all downside risk.
It will eliminate the right of a homeowner to set aside a wrongful foreclosure, even if the plaintiff committed fraud in the process of taking the home. The ONLY recourse would be awarding money damages. This language is to appease the title companies by retroactively ratifying all that foreclosure fraud that has taken place over the last decade. Once the bank takes your home, you’ll never get it back, no matter what.

The typical knee-jerk response is always that these homeowners are people who “got in over their head.” But such banking propaganda ignores the fact that 1 in 2 houses in Florida have no equity. So, according to bankers, half of Floridians are irresponsible homebuyers. Wall Street and greedy bankers created this horrible mess, but they want no part of shared sacrifice in cleaning it up. Middle class America didn’t cause this problem, and Middle class America shouldn’t pay for it.

We Floridians suffer from foreclosure fatigue, and the FFA will send us all over the edge.

This article comes courtesy of Chip Parker, A Jacksonville Bankruptcy Attorney. About Chip Parker, Jacksonville Bankruptcy Attorney

Chip Parker is the managing partner of the fastest growing law firm in Northeast Florida (two years running), Parker & DuFresne, P.A., and according to The Jacksonville Business Journal, he is an Ultimate CEO. Mr. Parker represents businesses and consumers facing bankruptcy, and homeowners in foreclosure defense actions. He is the recent recipient of Jacksonville Area Legal Aid's Award for Outstanding Pro Bono Service. Mr. Parker is an active member of the National Association of Consumer Bankruptcy Attorneys and National Association of Consumer Advocates

View all of the Fannie Mae foreclosed homes in Palm Beach County

2011-08-17T17:53:00.001-04:00

Click on the Fannie Mae image and you will be able to see all of the Fannie Mae foreclosures in Palm Beach County.

If you are interested in seeing any of the homes on their list…call us at 561-432-5202 quickly as there typically are limited time periods for viewing/offers.

Palm Beach County webcams

2011-08-09T17:34:00.002-04:00

I thought these were cool...just click on the image above...hope you enjoy them!

Thanks for stopping by our blog.

Credit Ratings Downgrade for Fannie and Freddie Now?

2011-08-08T12:23:00.001-04:00

In what is shaping up to be an erratic trading day, the Dow has dropped below 3% in early trading after the latest news that Standard & Poor's downgraded the debt of mortgage finance giants Fannie Mae and Freddie Mac.

It was widely expected that S&P's downgrade of U.S. debt would roll downhill to other entities that are closely linked to the federal government.

Fannie and Freddie, which were taken over by the government in 2008, fuel home sales by purchasing mortgages from banks.

It's not clear what - if any - effect the downgrade will have on Fannie and Freddie's borrowing costs. And since Treasury yields remain at very low levels, a sharp spike in mortgage rates seems unlikely.

I’ll let you know what effect this is having on mortgage rates as soon as I know!

Thanks for reading,

Steve

Major Lenders Offering Perks on Short Sales

2011-07-29T09:20:00.001-04:00

The nation’s leading mortgage lenders are extending extras for short sale transactions employed as an alternative to foreclosure – both in the form of monetary incentives for borrowers and streamlined procedures for real estate agents.

Wells Fargo says it has been making “enhanced financial relocation assistance offers” that can be as much as $10,000 or $20,000 to certain borrowers who meet undisclosed criteria who choose to go through with a short sale or transfer the title back to Wells via a deed-in-lieu.

This extra incentive is being offered to distressed borrowers in Florida and other states where the foreclosure process is lengthening, a spokesperson for Wells Fargo explained. The exact amount of the relocation funds provided to individual borrowers varies based on a number of factors, the company says.

Wells Fargo noted that this type of additional relocation assistance is only available on first-lien loans that the company itself owns – which represent only about 20 percent of the loans Wells Fargo services.

Chase is also offering a range of incentives to borrowers that agree to a pre-foreclosure sale “because if we can’t work out a modification, a short sale is a better result for the borrower, the servicer, the investor, and the neighborhood than a foreclosure,” the company said in a statement.

Chase says the amount of the offer “depends on a number of factors” but declined to share specific details on how much money it’s been providing to short sellers.

Citi has confirmed that it is offering incentives up to $12,000 for borrowers in cases where Citi owns the loan.

BofA says it is “committed to improving the short sale process” and has made procedural changes to cut some of the red tape for agents working with the bank on pre-foreclosure sales. They now allow real estate agents to submit a backup offer on a transaction if the original buyer has walked away from the sale.

This means that agents no longer have to initiate a brand new short sale if the buyer changes, Bank of America explained. Instead, agents can move ahead with the original transaction and continue to work with the same short sale specialist without having to resubmit all of the same documents and start from scratch.

The ultimate inside job!

2011-07-18T07:07:00.001-04:00

This is a must watch 3 minute video...

50 to 1

2011-07-10T08:45:00.001-04:00

A recent report by LPS (Lender Processing Services) stated that there were 4,084,557 mortgages 90 or more days delinquent or in foreclosure as of the end of May. Contrast that with actual foreclosure sales at 78,676 at month end, the volume of seriously past due loans over-shadowed the number of completed foreclosures by 50 to 1, according to LPS’ May Mortgage Monitor report released last Wednesday.

That is very scary...for every home actually sold at a foreclsoure sale there were FIFTY in line behind it where the owners were 90 or more days behind in their mortgage payments!

Right now I don't have the actual figures of the percentage of people who fall 90 or more days behind and eventually catch up on their back payments, interest, penalties, attorney fees, etc....but I have to believe it is fairly low. Then throw in the possibility that a big percentage of those delinquent homeowners are in a 'negative equity' position and any reasonable person has to assume that the chances of those delinquent owners getting current or even having the desire to get current is miniscule.

Additionally, LPS’ analysis found that inventories of foreclosures in judicial states ( In Florida we are a judicial stae) have increased twice as much as inventories in non-judicial states over the last year as courts have become clogged with high volumes of cases and lenders have slowed their processing of foreclosures, particularly in judicial areas muddled by affidavit issues.

Nationwide, the average time spent in foreclosure continues to extend, with more than 33 percent of borrowers in foreclosure not having made a payment in over two years, according to LPS latest study.

LPS says overall delinquencies are almost double and foreclosures are eight times higher than historical norms.

So..what's my point in writing this post? Basically the same as many of my other posts, mainly "don't rely on what you hear on TV or read in the papers"...those stories present only a sound bite...there is no analysis, follow up or discussion. Many times there is an agenda or spin being promoted. It is easy to hear a 'housing is rebounding' story on a Monday and a 'housing is getting worse' story on Tuesday.

Draw your own conclusions from the above... but that information from LPS tells me that there are many, many foreclosures and short sales that will be continuing to hit the market in the next 3-4 years...continuing to contribute to declining home values.

If you are thinking about selling...call me and lets decide if it makes sense to do it sooner rather than later. If you are thinking about buying, lets sit down and explore your options and see if it makes sense for you to buy now.

My direct line is 561 602 1258

Or you can email me HERE

July 4th, 2011

2011-07-03T10:58:00.001-04:00

I am well aware of the toil, and blood, and treasure, that it will cost us to maintain this declaration, and support and defend these states. Yet, through all the gloom, I can see the rays of light and glory; I can see that the end is more than worth all the means, and that posterity will triumph.

John Adams, letter to Abigail Adams, July 3, 1776

Read our blog…be the first to know!

2011-06-29T12:23:00.001-04:00

Give me a call today if you are interested in this pre-approved short sale...it is not on the market yet, but will be soon.

It is in great shape and is an excellent value. So if you want the first opportunity to view this home,

call me right away: 561-602-1258

NAR's Yun has just entered...The Twilight Zone

2011-06-21T13:38:00.001-04:00

Today, the stock market surged on DECLINING home sales...the 'market' expected the Natl Assn of Realtors report to come in at 4.8M, instead it came in at 4.81M and everyone is ecstatic!

Last months sales were originally reported at 5.05M...but revised downward to 5.0M- (a common tactic...and watch, the 4.81 will get 'revised down' at some point).

And the NAR chief economist, Lawerence Yun, had the following (laughable) reasoning for the decline:...temporary factors held back the market in May... “Spiking gasoline prices along with widespread severe weather hurt house shopping in April, leading to soft figures for actual closings in May,” he said. “Current housing market activity indicates a very slow pace of broader economic activity, but recent reversals in oil prices are likely to mitigate the impact going forward. The pace of sales activity in the second half of the year is expected to be stronger than the first half, and will be much stronger than the second half of last year.”

I have to tell you...most of the time I am embarrassed to be a paying member of NAR. Spiking gasoline prices? Isn't that pathetic? You mean to tell me that Mr. and Mrs. potential homebuyer, just about to sign on the dotted line, decided that they couldn't afford a house because gas rose by forty cents? Let's figure this out; suppose that the average mileage is 18 MPG, the average miles driven per year is 15,000...that would be 834 gallons a year...at 40 cents a gallon hike that is an extra $374 per year, or an $31 per month, or an extra $7.75 per week! If $31 a month is turning buyers into non-buyers...they should not have been thinking about buying in the first place!

When are we going to get some truth out of the NAR PR machine? No wonder agents are regarded on par with the stereotypical used-car salesman...it is well deserved!

Happy Fathers Day

2011-06-19T07:13:00.001-04:00

To a child…LOVE is spelled TIME.

Click on the photo above…it will take you to see a touching and insightful 2 minute video about what is most important to your kids.

Blessings to all of the Fathers out there.

Bankruptcy Basics Video Series

2011-06-14T05:19:00.001-04:00

Questions about bankruptcy come up at a majority of my appointments with sellers who are upside down on their homes and trying to explore their options. I always defer to the experts on the subject: bankruptcy attorneys. But, I recently came across this series of helpful videos that will give homeowners a basic understanding of the various bankruptcy options. Just click on the video, below. You can then watch the entire series of nine short videos.

Home price plunge coming - Shiller - Jun. 9, 2011

2011-06-09T20:14:00.001-04:00

NEW YORK (CNNMoney) -- In an off-hand remark before cameras and microphones, economist and housing market guru Robert Shiller opined earlier this year that he would not be shocked if there was another 10% to 25% in the nation's home price plunge -- and he's not backing down from that statement.

At a S&P Housing Summit in New York, Shiller on Thursday reiterated his fears of falling home prices. It's not a forecast, he said, just a comment on his understanding of housing market trends.

He explained that speculative markets, like stocks or commodities, act like random walks. They go up and down all the time. Housing market direction tends to be more consistent.

"I worry that this is a real and continuing downturn, like in Japan," Shiller said. "It had a boom in the 1980s that peaked in 1991. Prices declined in the major cities for 15 straight years after that."

The U.S. housing market is hard to predict because the boom and bust it went through was unique. Shiller has studied historical price data back to the 1890s and found nothing like it.

"This is the biggest housing boom and bust in U.S. history," he said. "The bubble was unique. "That makes it impossible for statisticians to forecast because they deal with things that repeat themselves. You see a pattern and expect it to repeat."

It's even different from the Great Depression, when the home price plunge was at about the same rate. The big difference, however, was that prices of nearly everything else cratered in the 1930s as well -- which has not been true during the housing bust.

Home price plunge coming - Shiller - Jun. 9, 2011

It's Official...

2011-06-03T08:47:00.001-04:00

The house price collapse is now worse than it was during the Great Depression.

That astonishing piece of information comes from the researchers at the think tank ‘Capital Economics’. It follows Tuesday's news from Case-Shiller that house prices fell again in March, as the double dip gets worse. Writes Capital Economics' senior economist Paul Dales, "On the Case-Shiller measure, prices are now 33% below the 2006 peak and are back at a level last seen in the third quarter of 2002. This means that prices have now fallen by more than the 31% decline endured during the Great Depression."

(This is on a National basis...here in South Florida our price declines are even steeper....over 50% from the top reached in late 2005. We are now back to prices not seen since 1999-2000. (italics mine)).

Capital Economics says the latest double-dip in housing should come as no surprise. It's very much following a pattern seen in the early 30s, when a brief recovery also petered out. (the brief recovery was a govt. induced false recovery via the homebuyer tax credit). The same has also happened in other big housing busts around the world, the think-tank says. It believes prices are going to fall even further before we hit rock bottom, maybe sometime next year.

(Last year, the 'experts were saying 2nd or 3rd quarter of 2011 would be the bottom...next year, they'll move their 'predictions' again. These 'experts' should ask someone actually IN the real estate business their opinion. I have been calling a 'saw tooth bottom' possibly by 2015; and that's only if all other housing factors (interest rates, loan qualification standards, mortgage interest deduction, etc. stay the same! Is there a silver lining? There is if you have a long enough time-line. If you can get the financing, housing is now cheap. At many price points, renting is more expensive than owning).

Capital Economics calculated that housing is now the cheapest it's been in thirty-five years.

(With mortgages rates still at all time lows, and inflation creeping in, housing here can be a good deal. But you'll have to be patient to see the biggest rewards. Capital Economics says, back in the Depression, it took 19 years for house prices to recover to their previous peaks....and it will likely take longer this time around. Now, I'm no Harvard trained economist, but my understanding is that during inflationary periods, having fixed rate debt is a benefit...you're paying back your debt with cheaper dollars. And this is the theory behind what Fed is going to do to pay off OUR debt! So, what does this mean for you? If you're a seller considering selling soon or within the next few years...sell now...be the NEXT home to sell. If you're a buyer...make sure that you have a very good reason for buying (and there are still many good reasons) and a long enough time horizon to ride out the value fluctuations ahead).

If you'd like to further discuss the implications of the current market economics for your specific situation, just call me on my direct line, 561-602-1258.

Thanks for reading,

Steve Jackson

Memorial Day 2011

2011-05-28T19:44:00.001-04:00

"Your silent tents of green
We deck with fragrant flowers;
Yours has the suffering been,
The memory shall be ours."

- Henry Wadsworth Longfellow -

Happy Mothers Day

2011-05-08T07:21:00.001-04:00

2011-04-24T08:36:00.001-04:00

Do you have a Freddie or a Fannie?

2011-04-19T18:19:00.001-04:00

Each GSE as well as each lender has their own rules and guidelines regarding if and how they will proceed with a short sale.

If you are “upside-down” on your home and want to start exploring your options, one of the first things you’ll need to do is to check if you have a GSE loan.

I have provided 2 links below to help you out.

Freddie: https://ww3.freddiemac.com/corporate/

Fannie: http://www.fanniemae.com/loanlookup/

If you’d like to discuss your situation and possible options confidentially, please call me on my direct line at 561-602-1258.

If you’re upside-down, don’t wait…find out who has your loan…then call me.

Thanks for reading…Steve

Foreclosure Backlog Stands at Thirty Times Monthly Foreclosure Sales Volume

2011-04-04T05:05:00.001-04:00

The ‘shadow’ market is not in the shadows any more…it’s becoming plainly visible…and the numbers are staggering. According to a report released recently by Lender Processing Services, “foreclosure inventory levels are at 30 times monthly foreclosure sales volume.” As a result of this massive backlog, we can expect more downward pressure on home values. The statistics on the homes not yet owned by the banks but are currently IN the foreclosure process are also staggering, with LPS reporting that the average loan currently in foreclosure has been delinquent for 537 days, and 30 percent of loans in foreclosure have not made payments in more than two years.

In part, due to slower processing times on foreclosures, it is unlikely that this backlog will disperse any time soon. In fact, although total loan delinquency has fallen nearly two percentage points over last year and foreclosure starts are down 14 percent from last year(partly due to the robosigning fiasco)…with the “non-current inventory” logging in at nearly 7 million, the backlog is likely here to stay.

Many analysts have been predicting that 2011 will be the beginning of a recovery for many sectors of the real estate market…but sadly, I are not on that bandwagon for us here in South Florida. Too much distressed inventory to work through…too many sellers that are NOT upside-down waiting for any evidence of stabilization to put their homes up for sale. Economics 101: Supply and Demand. There’s still an imbalance and will be for the foreseeable future. With this foreclosure backlog that we’ve been talking about for a looong time, we are quite pessimistic about the direction of local home prices.

And, what of the talk of the tightening of lending standards even further. Making 30% down the norm…increasing FHA down payments…interest rates going up…eliminating the mortgage interest tax deduction…does anyone really believe that these will HELP the housing market?

I, too, am a homeowner here in Palm Beach County…I’d love to be able to march in step with all of the so-called analysts/experts and say that the sun is getting ready to shine on our home values once again…but none of the evidence points to that.

However, there are still occasions where it makes sense for someone to buy; up to a certain price-point, thanks to low interest rates and 3.5% down-payment loans, it is less expensive to buy than to rent. And for buyers with a long enough time horizon there are some crazy good deals out there. Also, right now is a great time for investors as the cash-on-cash return is excellent for a big segment of the under $150k market. But when we, at The Jackson Realty Group, work with a buyer…we have them convince US (not the other way around) that now is the right time for them to buy. It’s not right for everyone right now. As a matter of fact, I find myself often recommending that renting is the best option for many clients who thought that they wanted to buy…but that’s what we do…we counsel and consult, we’re not salespeople trying to overcome objections!

For sellers (or those thinking about selling) we are saying “you want to be the NEXT home to sell”…in a market expected to continue its decline, it is expensive to wait.

If you’d like to discuss with me what your best options are at this point, either as a buyer or a seller, please call me on my direct line at 561-602-1258.

Thanks for reading,

Steve Jackson

Thinking of just “walking away” from your house?

2011-03-30T14:46:00.001-04:00

DON’T DO IT!

A recent study estimates that 36% of Americans think walking away is a viable option when they owe more on their home than what it is worth. But few are aware of the severe financial consequences of these actions, and even fewer know the options available to avoid these consequences.

If you are at the crossroads of deciding whether or not to walk away (or “strategically default,”) you will find that there is nothing strategic about foreclosure, especially when there are options that can help you to avoid it.

Destroying your credit is NOT “Strategic”! Walking away from your mortgage can be incredibly dangerous and damaging to your financial future.

In a “strategic default,” homeowners simply choose to walk away from their mortgages—in other words, move out, stop paying and just “”let the bank take it”. Generally, this is done when a homeowner owes more on the home than it’s worth or is “underwater.” Most homeowners do not understand that walking away will expose them to foreclosure, which carries credit issues, current and future employment challenges, issues with security clearances, and the potential for non-stop debt collections.

In a Florida foreclosure, generally, the bank gets the home back at a courthouse auction…actually held as an online auction here in Palm Beach County. At some point in the future, the bank will re-sell the foreclosed property. The difference between what the bank finally ‘nets’ after the sale and what you owed (penalties/interest/legal fees/taxes/hoa fees, etc. added) is the deficiency. The bank can then get a judgment for this amount and attempt to collect, either directly, by giving it to the collection arm of the bank or, they sell it to a collection agency. And these collections efforts can haunt you for 20 years!

One of the first things we strongly recommend to anyone we speak with who is faced with a foreclosure action by their lender is for them to contact an expert foreclosure defense attorney…Be forewarned: Many Lenders have persuaded borrowers to represent themselves when facing foreclosure. Remember, the Lender’s first priority is collecting payments, not to gain a full understanding of your financial hardship. Don’t wait too long to seek help. Foreclosure Defense results are often best achieved with borrowers who seek help as soon as there is a problem.

Also, you don’t have to abandon your home…Borrowers need to understand that they are the legal titleholder to the home until a Judge declares otherwise. Although the Lender may hold a Mortgage Note, this does not mean that they can tell you to leave your home when you miss mortgage payments. Do not take the word of your Lender; seek counsel to advise you of your rights to remain in the property while searching for alternatives to foreclosure.

What about bankruptcy? Although bankruptcy can be a valuable tool when faced with an immediate sale of the property, it will rarely save your home from foreclosure. Many times, bankruptcy should be used as a last resort and only in combination with other large debts (i.e. immense credit card debt).

Do Not Ignore paperwork sent to you by the bank…Upon missing payments, most Lenders will send various documents and require a response. Many times these documents are discarded or there is no response. Save everything your lender has mailed or delivered to you and bring it to your attorney.

A foreclosure will be seen on your credit report for years…it will most likely impact you when trying to rent a home, trying to buy (or lease) anything on credit, applying for jobs, applying for various security clearances, and more!

You have options…one of the best ones right now is a Short Sale. This is where the lender agrees to let you sell the home for less than the amount owed.

We have recently been utilizing a little-known strategy that can: 1) speed up the process, 2) relieve the seller of deficiencies, 3) is FREE to the seller, 4) Get the seller a $3000 ‘relocation’ payment from the lender! You can click right HERE to see if you may qualify to work with us using this strategy.

Now, remember, I am NOT an attorney and this article is NOT intended to be legal advice…for that, please contact a competent legal professional.

But if you’d like to discuss your situation, see how we can help you out of a jam, and see how we’ve helped many, many people in your same predicament…call me on my private line right now: 561-602-1258

And thanks for reading my blog!

Steve Jackson

Nearly 20% of Florida homes are vacant - Mar. 18, 2011

2011-03-19T10:19:00.001-04:00

NEW YORK (CNNMoney) -- On Thursday, the Census Bureau revealed that 18% -- or 1.6 million -- of the Sunshine State's homes are sitting vacant. That's a rise of more than 63% over the past 10 years.

Having this amount of oversupply on the market will keep home prices depressed and slow any recovery.

The vacancy problem is more dire in Florida than in any other bubble market: In California, only 8% of units were vacant, while Nevada, the state with the nation's highest foreclosure rate, had about 14% sitting empty. Arizona had a vacancy rate of about 16%.

In Florida, the worst-hit county is Collier -- home of Naples -- with a whopping 32% of homes empty. In Sarasota County, 23% of the housing stock sits vacant, while Lee County (Cape Coral) has a 30% vacancy rate. PALM BEACH COUNTY has a vacancy rate of about 18%!

The housing recovery will take years, perhaps many years, to complete, according to Ingo Winzer, a housing market analyst and founder of Local Market Monitor.

Not helping is the the fact that the state's rate of population growth slowed in the second half of the last decade to just 5.7%. Still, the 2000s saw the state population grow overall by nearly 18%, the Census Bureau reported. I

"It will take about eight years just to put the vacancy numbers back into the single digits," said DeKaser.

The inventory overhang has sent home prices plunging. The median price for homes sold in January was just $122,000, according to the Florida Association of Realtors. That was down 7% from 12 months earlier and less than half the price at the peak of the market.

Winzer thinks prices in Florida will drop even more, another 5% in 2011 and 3% in 2012. "Even after that, they're not going to rebound, they'll just sit on the bottom," he said.

Celia Chen, a housing market analyst for Moody's Analytics, is also downbeat in her forecasts for Florida. Not only will prices fall another 11%, she said, but the bottom won't hit until mid-2012, about a year later than the nation as a whole. Some metro areas won't get back to their pre-recession peaks until long after the present owners are old and gray.

She doesn't expect Naples, for example, to come all the way back until the late 2030s. Other Florida metro areas with a 20-year wait or longer include Punta Gorda, Palm Bay and North Port.

"If you're buying in Florida for retirement," said Winzer, "maybe you buy next year when prices will be near the bottom. If you're buying for investment -- don't."

90 Day Guaranteed Sale Program? There’s NO free lunch!

2011-03-01T04:10:00.001-05:00

Once again, I have started to see this being promoted by mail and on the radio.

"If we don't sell your house in 90 days...WE'LL BUY IT!"

I have gone to several seminars where they promoted this (tactic/gimmick) and the client pitch starts out sounding something like this: " Mr./Mrs. homeowner, a big dilemma when making your move is deciding whether to buy 1st or sell 1st. Either way is risky as you could end up with 2 homes (or no home). Our unique/innovative/etc Guaranteed Sale Program solves this dilemma...you get our personal guarantee that if we don't sell your home in 90/120/180 days, we will buy it at a price acceptable to you. Now, WE take all the risk from you and you can immediately place a confident offer on another home". The hidden details usually follow some or all of these general guidelines:

Must purchase one of the agents listings...or at least buy a 'full commission' home with them
Seller must still pay a full commission on the 'guaranteed' sale
Quite often an 'upfront' fee or guaranteed sale program fee of anywhere from $295 to fees in the thousands
"Agreed upon" price well below appraisal/market value...could be as low as the 80% range, then subtract commissions, fees, closing costs etc.
Original list price 5% below comparables
Seller is REQUIRED to continually lower the asking price during the 90 day (or whatever the guarantee period is)...for example: 100% for 1st 30 days, 90% day 30-60, 80% day 60-90, at which point they have reached their 'guarantee' point (but minus a full commission, etc.)
Sign the listing agreement first...then the guaranteed purchase details come later
May be a maximum allowable program price
Restrictions on home condition
Use the language "I'll buy it for 'list' price", but fail to say that the 'list' price is the 80% ENDING list price

If they'll buy it for the full price that they agree to list it for...then that's putting their money where their dog and pony show is.

Think about these few points:

With as difficult as it is to get a mortgage now, COULD your agent actually perform on their guarantee? Ask to speak with their mortgage lender...do your due diligence the same as you would with any other buyer.
If they don't need a mortgage and have a few $$million sitting around to buy homes that don't sell in 90 days, why are they a real estate agent?
Are they "flipping" the purchase option to an investor? Are they going to list the home for the investor once they buy it? Then why don't they get the investor to buy it from you...without the middle-man ans with you getting the higher price?
Can they assign the guaranteed sale price (as in a wholesaler)? Again...you're losing out.

Good, solid, cutting-edge marketing, a detailed understanding of the local and national economic factors affecting home values, subdivision level market knowledge, ability to analyze trends...trust and mutual respect...THIS is what is needed today...not a worn-out gimic. Thanks for reading

Large housing inventories to be sold at deep discounts in 2011…and other stories

2011-02-22T07:20:00.001-05:00

From recent HousingWire news and other sources: (all italics mine)

Foreclosure filings and completed foreclosures will reach record levels this year, after lenders exhaust alternatives such as mortgage modifications (which have been hugely unsuccessful)…Analysts expect increased losses to residential mortgage-backed securities, as a result, because large inventories of foreclosed homes will be sold at deep discounts…

DBRS projects delinquency trends to continue climbing this year, as negative home equity persists, home prices remain down, unemployment stays high, and many borrowers have trouble refinancing due to tightened underwriting standards.

Analysts said the number of REO properties could double over the next 12 months to 4 million from 2 million, and it will take at least one to two years to sell those homes, further hindering recovery.

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Interesting research from PEW Local Trends that goes into great detail about Strategic Defaults..

What will be surprising to many is the dramatic increase in the number of homeowners willing to walk away from their underwater home. Just 3 years ago when we started reporting on this phenomena similar studies were done that resulted in fewer than 10% of those surveyed deemed strategic defaulting as ‘acceptable’. Now, that number is approaching 40%…

What this will mean going forward is that homes that are not even on the banks radar for potential default/foreclosure will be going back to the bank in record numbers, increasing the already lofty numbers of expected bank-owned properties.

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The mortgage interest tax deduction is being lead to the gallows for a little meeting with the guillotine…better known as the Obama Administration.

The National Association of Realtors is the lone voice in the blood thirsty crowd calling for the tax deduction to live on…

Here are the two sides of the argument:
The Off With Its Head…end the deduction argument: Why should non homeowners owners subsidize homeowners? Why are we punishing people for renting? Why create system that motivates people to buy more home than they otherwise would have? Why should the government incentive people taking on a mortgage thus, debt. (Sounds noble, does it not?….).

The ‘Let it live’ crowd’s argument: Owners are more stable, move less..invest more in communities. Owners spend more on home improvements and the like..thus, putting more money back into their communities.

I can tell you this for certain…regardless if you are red or blue…if the mortgage interest tax deduction, that will be quite a few nails in the housing coffin.

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Looming changes for Fannie and Freddie. The White House outlined last Friday its plans to begin shrinking their support of both of the government sponsored entities (GSEs) Fannie Mae and Freddie Mac. While the process could take several years, the effects will be felt in coming months.

Everything about obtaining a mortgage loan is about to change. Vastly fewer people will have the financial ability to obtain a loan.

It seems that the current administration is attempting to move us away from a homeownership society to a generation of renters…however, if the tax benefits of owning a primary residence are removed, do you think that the tax benefits of investor-owned properties will be left intact? If there are greatly reduced incentives (or even restrictive penalties i.e.. rent control) for investors, whom do you think will own all of the properties that people will need to rent?…It will be local/state or federal agencies that become the new landlords…watch out for this!

--------------------------------------------------------------------------------

I post these stories and opinions not to alarm but to inform…there is so much ‘spin’ out there from the various interest groups that it is hard to know which way is up or down.

For certain individuals and investors, in very specific circumstances…now is a great time to buy. Conversely, with what I think is going to be happening in the next few years to the housing market, now is also a good time to sell…it is hard to see, but will be clear in retrospect.

I'll just let the bank have it...

2011-02-15T12:58:00.001-05:00

Courtesy of our friend and expert real estate attorney, Richard Zaretsky, comes this article that addresses a question that we get from everyone who is upside down or behind on their mortgage...(thanks Richard)

In the series of questions I get when interviewing a potential client who is upside down on his or her mortgage, one question always asked (especially after I quote my fee) is "What if I decide to do nothing?"

It is a legitimate question and with all the press (and misinformation) that abounds, it is hard for those in need of the facts to separate the reality from the imaginary. For example, The New York Times reported on December 2, 2010 that Florida was a "non-recourse" state (meaning that the lender could not pursue a borrower on the promissory note). That information was corrected but not until December 19th - and of the over 1 million print edition readers that saw the wrong information - how many saw the "correction"? To many readers with Florida properties, walking away and doing nothing for their underwater Florida property became a reality - albeit a false reality the fallout from which many a homeowner has yet to realize.

FALSE INFORMATION - The reality is that in all recourse states (Florida being one) and in many non-recourse states to the extent the mortgage and note do not qualify as a non-recourse obligation, doing nothing has essentially the same outcome.

As I pointed out in several of my articles and interviews (see CNN, Banks Begin to Go After Deficiencies, Foreclosure Consequences) unless the borrower has in writing from the lender that they are releasing the borrower from the further liability of the deficiency, there remains a valuable right to collect that deficiency from the borrower. That "valuable right" is just like a negotiable instrument - it can be sold for consideration (ie: $$$) and the lender does not even have to get a judgment first to be able to sell that right.

IT JUST DOESN'T MAKE SENSE - SO WHY BELIEVE IT?
So many people tell me "the banks are not going after deficiencies - because no one has money to pay them". Get real!!! First, my office has seen, since the first of this year (just 7 weeks), more people saying the bank is trying to collect the balance of the loan than ALL of last year! Why? Let's look at the economics of this deal. An accountant friend of mine created a sizable side business of buying defaulted credit card debt and uncollectable obligations like these deficiency rights. He would typically pay 3 to 10 cents on the dollar. Do you think he just wallpapered his office with these obligations he bought? No way! He had a machine of lawyers and collection companies that pursued these debtors and if necessary, sued them to collect. If he got only 15% of them to pay even a portion of the debt, he was way ahead and made a nice profit. He also had the luxury of waiting - since he had the statute of limitations to first even sue the debtor and then when he got a judgment, he could ride it out for years (20 in Florida). He even would sell the judgments he got so he recouped his attorney fees and filing costs and made a profit - and then the new owner of the judgment would do the nasty things to collect the judgment, like garnishment, attachment of bank accounts, and dragging the debtor to a deposition or court to expose and explain his current finances.

FALSE SECURITY
And a word to those that say they are judgment proof. That may be true, but that won't prevent a lender from being able to file an attachment or garnishment. What then happens is the bank with the account that may indeed be exempt, must freeze the account until a judge decides that the money in the account is exempt from the attachment, or the pay is exempt from the garnishment. In the meantime, the defaulted borrower has checks bouncing all over town! So judgment proof is not aggravation proof.

Now you decide - Is it a good idea to do nothing?

Copyright 2011 Richard P. Zaretsky, Esq.
------------------------------------
Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.
Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 email: RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com Website http://www.florida-counsel.com/.
See our easy to understand articles at:
TABLE OF CONTENTS - SHORT SALE AND LOAN MODIFICATION ARTICLES

We have a better option...Don't let the process be a unilateral one wherin the bank dictates everything...including how much you eventually owe! Call me directly to see how we can make the outcome shift in your favor with a bi-lateral negotiation. My direct line is 561-602-1258

Thanks for reading,

Steve Jackson

Too Good To Be True; There's No Free Lunch; ___insert cliche here

2011-01-29T23:40:00.000-05:00

I have started to see this being promoted recently by mail and on the radio.

"If we don't sell your house in ___days...WE'LL BUY IT!"

Sounds great...especially in this market. Worth checking out? That's what the agent is hoping you'll think. Get their phone to ring...but they'll most likely never discuss the details over the phone..."much to complicated and need to see your home to see if it qualifies"...get the foot in the door. But there is NEVER a free lunch; there is always a cost associated.

But, particularly in this type of market, it would be "good business" if the agent NEVER bought any homes, or if they did, that they were purchased at such a drastic discount that the seller could do better selling the home themselves.

I have gone to several seminars where they promoted this (tactic/gimmick) and it starts out sounding something like this:
" Mr./Mrs. homeowner, a big dilemma when making your move is deciding whether to buy 1st or sell 1st. Either way is risky as you could end up with 2 homes (or no home). Our unique/innovative/etc Guaranteed Sale Program solves this dilemma...you get our personal guarantee that if we don't sell your home in 90/120/180 days, we will buy it at a price acceptable to you. Now, WE take all the risk from you and you can immediately place a confident offer on another home".

The hidden details usually follow some or all of these general guidelines:

Must purchase one of the agents listings...or at least buy a 'full commission' home with them
Seller must still pay a full commission on the 'guaranteed' sale
Quite often an 'upfront' fee or guaranteed sale program fee of anywhere from $295 to fees in the thousands
"Agreed upon" price well below appraisal/market value...could be as low as the 80% range, then subtract commissions, fees, closing costs etc.
Original list price 5% below comparables
Seller is REQUIRED to continually lower the asking price during the 90 day (or whatever the guarantee period is)...for example: 100% for 1st 30 days, 90% day 30-60, 80% day 60-90, at which point they have reached their 'guarantee' point (but minus a full commission, etc.)
Sign the listing agreement first...then the guaranteed purchase details come later
May be a maximum allowable program price
Restrictions on home condition
Use the language "I'll buy it for 'list' price", but fail to say that the 'list' price is the 80% ENDING list price

If they'll buy it for the full price that they agree to list it for...then that's putting their money where their dog and pony show is.

Think about these few points:

With as difficult as it is to get a mortgage now, COULD your agent actually perform on their guarantee? Ask to speak with their mortgage lender...do your due diligence as with any other buyer.
If they don't need a mortgage and have a few $million sitting around to buy homes that don't sell in 90 days, why are they a real estate agent?
Are they "flipping" the purchase option to an investor? Are they going to list the home for the investor once they buy it?
Can they assign the guaranteed sale price (as in a wholesaler)?

Making your mortgage payments to BofA? GOTCHA!

2011-01-25T06:04:00.001-05:00

Bank of America has recently (and quietly) redefined their “grace period”.

When is a grace period not really a grace period? When you have to pay a $6 fee for using it. In a nutshell, you’ll have 6 fewer days of the old grace period to make your payment without being charged additional fees.

Consumers who use the bank's online payment tool, Mortgage Pay, will be subject to a $6 fee if they fund payments using another bank's checking account and the payment falls during the final six days of the traditional 15-day grace period. Consumers who make payments from Bank of America accounts are not subject to the fee.

"Let me get this straight. They tell you that you have a grace period, (then) they say, 'Oops, you only have half of it if you don’t bank with us,'” said Gail Hillebrand, a lawyer for Consumers Union who specializes in banking issues. "That doesn't seem fair. ... This looks like a new ‘gotcha,’ and we have enough of those already."

Some consumers who are being hit with the change didn't apply for a mortgage with Bank of America. Instead, the bank inherited their mortgage later by acquiring it as part of an investment portfolio purchase.

This is just another sneaky tactic form one of the TBTF banks that received billions of taxpayer dollars. basically, it’s either switch your account to a BofA account that has a bunch of garbage fees or pay us garbage fees directly for the privilege of paying us!

Nice.

Journeys End homes for sale...under contract

2011-01-21T06:29:00.000-05:00

I just wanted to update my post from a month ago (http://journeysendinfo.blogspot.com/2010/12/recent-closed-sales-in-journeys-end.html) regarding homes under contract. As of 12/21/10, there were NO Journeys End homes under contract...and as of today 1/21/2011 there are still NO Journeys End homes under contract.

Three homes have come on the market since last month and three homes have been removed from the market in the last 30 days.

When I meet with a seller, we discuss what it will take from both of us to "be the next home sold"...as a seller in a declining market, that should be a primary goal.

Shadow inventory threatens housing recovery

2011-01-21T06:16:00.001-05:00

NEW YORK (CNNMoney) -- There is a growing glut of foreclosed homes threatening to hit the market over the next couple of years, potentially delaying any recovery.

There were 1.7 million homes either owned by the bank or in some stage of foreclosure at the end of the third quarter of 2010, according to a recent report by Standard & Poor's. It would take 44 months, at the current rate of sales, to sell them off -- a 25% increase from the beginning of 2010. (S&P does not count home loans backed by Fannie Mae and Freddie Mac.)…

next, my commentary…

The paragraph above, in and of itself is troubling…but when you look at the statement within the parentheses, it becomes horrifying! The most recent statistic that I’ve read estimates in excess of 65% of all loans as being backed by Fannie or Freddie…and this S & P report just decides to leave that out? I have been telling my clients for a year or more that this distressed inventory backlog will continue to drag home values down for several more years…coupled with no real plan or prospects for meaningful job and income growth, and the market looks very, very soft to me.

The following is from the recent Mortgage Bankers Association Delinquency Report, and will be a real eye-opener:

Number of properties that are 30 or more days delinquent or in foreclosure: (A+B loans) 6,870,000 !

Big difference from the widely published news story in CNNMoney…over 5 million more at least 30 days past due or further along in the foreclosure process.

And Numero Uno on the list of states with highest percentage of non-current loans…you guessed it: FLORIDA

So, 44 months to sell off 1.7M (and this doesn’t count all of the “non-distressed” homes on the market)…so how many months to sell off 6.8M? Well, using my middle school math, I came up with 176 months of inventory…That’s over 14 years!

Not to beat a dead horse, but if you are thinking of selling, even (especially) if you owe more than your home is worth…lets talk about your options, market direction, etc. Call me directly at 561-602-1258. If I don’t answer, please leave me a message

Florida is one of the eight-states-running-out-of-homebuyers

2011-01-20T04:48:00.001-05:00

by Douglas A. McIntyre, Michael B. Sauter and Charles B. Stockdale
Tuesday, January 18, 2011

provided by

The single biggest problem in the U.S. real estate market is simple: There are very few homebuyers.

That seems obvious, but the "buyers' strike" has caused house prices to drop, along with an epidemic of foreclosures. What's worse, the long depression in real estate is probably not over. S&P has forecast that home prices will drop by 7% to 10% this year. The S&P Case-Shiller Index has dropped for most of the 20 largest real estate markets over the last several months. RealtyTrac recently reported that more than 1 million homes were foreclosed upon in 2010.

Many economists argue that the housing market may take four or five years to stabilize. Even if that's proven to be true, the all-time highs of 2006 may never be reached again.

24/7 Wall St. looked at a number of the standard measures to find the housing markets facing the biggest problems attracting buyers. After a detailed examination, six metrics were chosen: (1) vacancy rates for 2010; (2) foreclosure rates for 2010; (3) November 2010 unemployment rates; (4) change in building permits from 2006 to 2010; (5) change in population from 2005 to 2010; and (6) price reduction by major cities for 2010. Taken together, they create a strong statistical base to describe markets which buyers have largely abandoned.

The real estate crisis has gone on for four years. In the states 24/7 Wall St. has chosen here, the crisis will go on much longer:

Michigan
Nevada
Arizona
California
Illinois
Georgia
Oregon

And: #8. Florida

Vacancy Rate: 21.03% (2nd Worst)
2010 Foreclosures: 5.51% (3rd Worst)
Decrease in Building Permits 2006-2010: -81.37% (3rd Worst)

Unemployment in Florida is 12%, the fourth worst in the country. (The REAL unemployment and under-employment is much higher) Approximately 1.1 million residents are out of work. Statistics show that 21.03% of the state's housing units are vacant. Furthermore, 5.51% of homes have been foreclosed upon. Florida was among five states that had the largest real estate booms from 2000 to 2006. Residential prices in some areas like…Palm Beach rose by much more than double during that period. New home and condominium construction soared. Many of those residences have never been occupied and are still part of the inventory of homes for sale.

If you are thinking about selling, now or in the near term, even if you owe much more than your home is worth, please call me directly at 561-602-1258, or email me: Steve@thejacksonteam.com. We just know how to sell homes, even in this market...This week, I put a home in under contract in about 5 days and had a closing yesterday for another seller for whom we applied a secret strategy that generated overwhelming property interest and a top price in about 2 weeks.

Top lenders set for foreclosure settlement: report | Reuters

2011-01-04T12:36:00.001-05:00

And so it has come to pass..even the state Attorneys General are in the pocket of the TBTF financial institutions. The Attorneys General , on behalf of Fannie and Freddie, have ‘settled’ with the five biggest TBTF banks, for ‘future losses’ from the fraudulently written, fraudulently packaged, fraudulently rated and sold loans. Possibly the biggest fraud ever perpetrated will now, effectively, be swept under the rug in exchange for 1 or 2 cents on the dollar…I’d sure love a deal like that!

(Reuters) - The five largest mortgage loan servicers, including Bank of America Corp and JPMorgan Chase & Co, may be the first to settle with 50 state attorneys general who are investigating foreclosure practices, Bloomberg reported, citing Iowa Attorney General Tom Miller…

Ally Financial, Bank of America, Citigroup, JPMorgan and Wells Fargo could not be immediately reached for comment by Reuters outside regular U.S. business hours…

Here’s another report, below, from CnnMoney.com:

Is Fannie bailing out the banks?

Posted by Colin Barr January 3, 2011 10:11 pm

Financial stocks just caught fire. Someone must be getting bailed out, right?

Why yes, say critics of the giant banks. They charge that Monday's rally-stoking mortgage-putback deal between Bank of America (BAC) and Fannie Mae and Freddie Mac is nothing more than a backdoor bailout (QE4?) of the nation's largest lender (emphasis mine). It comes courtesy, they say, of an administration struggling to find a fix for the housing market while quaking at the prospect of another housing-fueled banking meltdown.

Monday's arrangement, according to this view, will keep the banks standing -- but leave taxpayers on the hook for an even bigger tab should a weak economic recovery falter. Sound familiar?…

And you don't need to be a conspiracy theorist to see that austerity talk in Congress means no more upfront support for financial firms. At a time of double-dipping house prices and nearly 10% unemployment, you can see where some people might find themselves devising new ways to prop up BofA and its housing-exposed rivals JPMorgan Chase (JPM), Wells Fargo (WFC) and Citi (C).

"This looks to me like a gift from Tim Geithner," said Chris Whalen of Institutional Risk Analytics. "There's politics all over this."…how sharp is Freddie if all it can do is squeeze a $1.28 billion payment out of a giant customer in exchange for relinquishing fraud claims on $117 billion worth of outstanding loans? The very best its million-dollar executives can do is claw back a penny on each bubbly subprime dollar?

…"How Freddie can justify this decision to settle 'all outstanding and potential' claims before any of the private-label putback lawsuits have been resolved is beyond comprehension," says Rebel Cole, a real estate and finance professor at DePaul University in Chicago. "This smells to high heaven and they should be called out."

Nice…

Palm Beach County Bar Association - Residential Mortgage Foreclosure Mediation Program

2011-01-03T04:26:00.001-05:00

Below, from the Palm Beach County Bar Association website, I have the details, forms and FAQ’s regarding the Florida State Supreme Court mandated pre-summary judgment mediated meeting between the foreclosed-upon homeowner and their lenders representative…

What is foreclosure?
Foreclosure is a legal process by which the mortgage holder causes the judicial sale of the secured real estate to pay a defaulted loan. The mortgage on real estate acts as collateral for the repayment of the loan so when this loan is in default, the mortgage holder exercises its rights to take the collateral by selling the home.

What is the RMFM Program?
The RMFM Program is the Residential Mortgage Foreclosure Mediation Program that has been ordered by the Florida Supreme Court, and the Fifteenth Judicial Circuit Court. This program mandates that all homestead foreclosure lawsuits filed on or after July 12, 2010, be sent to mediation prior to any final order being issued.

How do I enter the RMFM Program?
All homestead foreclosure suits that are filed on or after July 12, 2010 will be automatically referred to the RMFM Program. The Program Manager will contact you based on information received from the lender. However, if you have been served with a foreclosure suit and/or your contact information has changed, please contact the RMFM Program directly at (866) 900-4254 (toll free)

I am a Homeowner who was served with a foreclosure lawsuit filed before July 12, 2010. Can I participate in the RMFM Program?
You may request a referral to this Program by filing a Borrower’s Request to Participate in the RMFM Program (download copy here). File this request with the Court and mail a copy of the request to the lawyer for the Lender.

Is there a cost to me to participate in the RMFM Program?
There is no cost to homeowners for this program. The Plaintiff (usually the bank) pays the required fees, which include financial counseling and the mediation session. In the event that you choose to have a second mediation session, you will have to pay $100, which is one-half of the fees for this session. The Program anticipates that one mediation session will be sufficient for most cases and this second mediation is optional.

What financial disclosure information will I need to provide to the lender to proceed to mediation?
Most borrowers will need to file the Foreclosure Mediation Financial Worksheet (click here for that document).
Homeowners must sign and then mail, hand-deliver or fax the Release (last page of the financial agreement) to the RMFM program before the Program can schedule mediation.
Mail or hand-deliver to: Palm Beach County Bar Association, RMFM Program, 1601 Belvedere Road, Suite 304E, West Palm Beach, FL 33406.
Fax to: (561) 828-3922
Email with Release as a pdf to mediations@palmbeachbar.org
Borrowers will need to file Fannie Mae Hardship Form 1021 if they are seeking a Short Sale or Deed in Lieu of Foreclosure. (click here for that form)
For short sales, borrowers also need to file a signed purchase contract for the residence or a listing agreement for the sale of the residence, a preliminary HUD -1 form, and written permission from the borrower authorizing the bank or the bank's representative to speak with the real estate agent about the borrower's loan.
For Deeds in Lieu of Foreclosure, a current title search for the residence should also be uploaded.

What is a short sale?
A short sale is a sale for less than you owe on the mortgage loan.

What is a Deed in Lieu of Foreclosure?
A Deed in Lieu of Foreclosure is when you voluntarily execute a deed that transfers the property to the lender in exchange for the lender canceling, in part or in whole, the debt owed on the property.

Do I have the right to consult with an attorney?
Yes. You have the right to consult with an attorney at any time during the mediation process and to bring an attorney with you to the mediation session. You do not have to have an attorney; you may represent yourself. If you cannot afford an attorney, you may call the Legal Aid Society of Palm Beach County and inquire about their pro bono foreclosure assistance program, Monday through Friday, 9:00 a.m. to 5:00 p.m., (561) 655-8944 ext. 325 or (toll free) 800-403-9353 ext. 325. You may also contact the Lawyer Referral Program at the Palm Beach County Bar Association by calling (561) 687-3266 or (561) 451-3256 (Boca/Delray). There is a $30 fee for a half-hour consultation with an attorney through the Lawyer Referral Service.

Do all Borrowers who signed the mortgage need to attend the mediation session?
Yes, all Borrowers must be present at the mediation session. If not all Borrowers can attend, the Borrower not attending should bring a completed Power of Attorney for the other Borrower.

What happens if we cannot settle during the mediation?
The parties can agree to continue to another mediation session. If that session cannot be scheduled for the same day, this session is optional and both parties have to pay one-half of the fee, or $100 each for this additional session. If the parties cannot agree at all, and reach an impasse, then the case is returned to the court.

What happens if I do not attend mediation?
The case is returned to the court.

Link to Frequently Asked Questions About Mediation

Homeowner Forms

Help for Homeowners in Foreclosure – FREE!
presented by the Palm Beach County Bar Association & The Legal Aid Society of Palm Beach CountyFind out how the Residential Mortgage Foreclosure Mediation Program Can Help You
Space is limited. To reserve your seat, call the Palm Beach County Bar Association at (561) 687-2800
or RSVP by email

StreetInsider.com - Schiff: Look Out Below! Home Prices to Fall Additional 20%

2010-12-30T12:23:00.001-05:00

A ‘Happy New Year’ news story from Peter Schiff…one of the earliest predictors of the ‘pop’ of the housing bubble.

December 30, 2010 10:50 AM EST

According to Peter Schiff, the recent drop in home prices is unnerving, but there is still another 20% drop to go before we reach a historical trend line. (emphasis mine)

Schiff notes that some economists anticipate a further correction, but most don't believe that the vicious correction of 2007 and 2008 could return. To counter, Schiff notes that many underestimate how distorted the market had become.

From the start of 1998 through the middle of 2006, arguably at the peak of the market, the Case-Shiller 10-City Index rose an astounding 173% at 19.2% per year. Schiff notes that we now know that the gains had little to do with fundamentals and more to do with "distortionary government policies that mandated loans to marginal borrowers, and set off a national mania for real-estate wealth and a torrent of temporarily easy credit."

One of the co-founders of the Case-Shiller index, Robert Shiller, contends that home prices, from 1900 - 2000, followed a more muted 3.35% average growth rate, which included the Great Depression, post-war eras, and the boom of the 90's.

So, Schiff notes that in 1998, the Case-Shiller index was at 82.7. Following the 3.35% average annual price increase predicted by Shiller lands us at a point of 126.7 in October 2010. However, the Case-Shiller Index came in at 159.0, suggesting an additional 20.3% decline in the index to get it back to more normalized levels.

Schiff continues that no one is making a case that fundamentals have gained traction, and most point to government intervention as an artificial stop to the free fall. Programs like "the home buyer's tax credit, record low mortgage rates, government mortgage-assistance programs, and the increased presence of Fannie Mae, Freddie Mac and the Federal Housing Administration in the mortgage-buying business" have put the kibosh on falling prices for now.

But, contends Schiff, with "bloated inventories, 9.8% unemployment (and much higher REAL unemployment), a dysfunctional mortgage industry and shattered illusions of real-estate riches, does it makes sense that prices should simply fall back to the trend line?" He argues that they will overshoot to the downside.

So what's the outcome? A major market correction in the next year.
Schiff thinks not, rather that there may be potential for an additional 10% dip below the 100-year trendline in the next five years, especially if mortgage rates continue upwards to more historical rates of 6% or more. He notes that that would put the index at 114.02, or about 28.3% below where were at now. Even a 5% dip would put the index at 120.36, about 24.3% below current levels.

Concluding, Schiff comments that, "In trying to maintain artificial prices, government policies are keeping new buyers from entering the market, exposing taxpayers to untold trillions in liabilities and delaying a real recovery. We should recognize this reality and not pin our hopes on a return to price normalcy that never was that normal to begin with."

A little Christmas gift for all of my blog readers in Journeys End

2010-12-22T13:10:00.002-05:00

I have put together a report...a quick read...with many interesting stories and details regarding the origins of contemporary Christmas Traditions. Click on the image and read or download the entire booklet if you like. Feel free to pass it along to others too!

Recent closed sales in Journeys End

2010-12-21T04:52:00.000-05:00

Below is a recap of the closed sales in Journey's End from August 1st until today:

Pecos - Pool - Lake, 1 story, 2400 sq ft:, 2 car gargage: $290k
Yuma - No pool/lake, 2 story 2800 sq ft, 3 car garage: $290k
Santa Fe - Pool - Lake, 2 story, 3000 sq ft, 3 car gargae, BANK OWNED: $295k
Kensington - Pool - Lake, 3700 sq ft, 2 story, guest house, 2 car garage, SHORT SALE: $335k
Santa Fe - Pool - Lake, 2 story, 3000 sq ft, 3 car garage: $360k
Versailles - Pool - Lake, 2 story, 3200 sq ft, 3 car garage: $395k
Kensington - Lake - 2 story, 3700 sq ft, 2 story guest house, 1/3 acre: $416k

Also, there is a very unusual and interesting, (troubling) statistic...there are currently NO Journey's End/Grande Estates homes under contract.

Has anyone seen my $3.3 Trillion?

2010-12-08T05:40:00.001-05:00

Now, you and I might lose track of where we spent that $20 bill we had in our pocket...but Mr. Bernake can't seem to remember where he spent (our) $3.3 TRILLION! Courtesy of my friends, Brian and Frank, at Think Big, Work Small

Journey' End foreclosures, Foreclosures in Journeys End

2010-12-04T05:27:00.001-05:00

As of December 4th, 2010 there are 35 Journey's End homes in some stage of foreclosure. This doesn't mean that there are 35 bank-owned homes in Journey's End, but these 35 have had a Lis Pendens filed, perhaps had a sale date set (courthouse sale) or have actually been sold at a foreclosure (courthouse) sale but have not yet been placed on the market.

Below I will identify these properties by street:

Bither - 3
C Durham - 8
Ethan - 1
Eugene - 1
Finamore - 8
Houlton - 8
Jessica - 1
Kevin - 1
Kirsten - 1
Nikki - 2
Wilbur - 1

Doing some further research reveals that only one of the 35 properties is 'under contract' attempting a short sale. Perhaps some of the other 34 have short sale contracts in at the bank already but their home is no longer listed in the MLS, are attempting to negotiate a loan modification, forebearance agreement, deed-in lieu, or some other solution. But I have found that mostly, homeowners in default tend to ignore the issue until it is too late to have a good, workable, solution available.

Click on the image above to order our free report

A Thanksgiving wish

2010-11-25T08:40:00.001-05:00

Finally! One of the big franchises ADMITS IT!

2010-11-22T11:56:00.000-05:00

Thanks to the NotoriousROB blog for the heads-up on this video. Keep in mind while you watch this that this is a Keller Williams agent recruiting video...

And this is why I opened a small, personalized office long ago...I realized that it was me, my wife and our like-minded agents that our clients were hiring...not some company logo.

I don't think many realty companies, large or small, make ANY promise to the consumer other than vague platitudes "we are the biggest/we sell the most etc., nothing like "we hire only the most highly skilled/we fire the bad agents...you know what I mean. And the ones that do make consumer based promises often do absolutely nothing to actually KEEP AND ENFORCE that promise, from recruiting, to rules, to marketing, to service standards.

But it is refreshing to finally see one of the big guys admit what the consumer already knows: It is the AGENTS, not the company.

All of the big franchises say that they have the best agents...etc, etc. But if you've ever gone on an interview as a real estate agent, you would know that there is never a competency test, ethics test or any kind of test for that matter. As a matter of fact, it is usually a 'reverse' interview...with the agent deciding whom THEY want to go work for. It's almost: If you have a license, you have a job.

There's no free lunch

2010-11-19T11:58:00.003-05:00

I have started to see this being promoted recently by mail and on the radio.

"If we don't sell your house in ___days...WE'LL BUY IT!"

Sounds great...especially in this market. Worth checking out? That's what the agent is hoping you'll think. Get their phone to ring...but they'll most likely never discuss the details over the phone..."much to complicated and need to see your home to see if it qualifies"...get the foot in the door. But there is NEVER a free lunch; there is always a cost associated.

But, particularly in this type of market, it would be "good business" if the agent NEVER bought any homes, or if they did, that they were purchased at such a drastic discount that the seller could do better selling the home themselves.

I have gone to several seminars where they promoted this (tactic/gimmick) and it starts out sounding something like this:
" Mr./Mrs. homeowner, a big dilemma when making your move is deciding whether to buy 1st or sell 1st. Either way is risky as you could end up with 2 homes (or no home). Our unique/innovative/etc., Guaranteed Sale Program solves this dilemma...you get our personal guarantee that if we don't sell your home in 90/120/180 days, we will buy it at a price acceptable to you. Now, WE take all the risk from you and you can immediately place a confident offer on another home".

The hidden details usually follow some or all of these general guidelines:

Must purchase one of the agents listings...or at least buy a 'full commission' home with them
Seller must still pay a full commission on the 'guaranteed' sale
Quite often an 'upfront' fee or guaranteed sale program fee of anywhere from $295 to fees in the thousands
"Agreed upon" price well below appraisal/market value...could be as low as the 80% range, then subtract commissions, fees, closing costs etc.
Original list price 5% below comparables
Seller is REQUIRED to continually lower the asking price during the 90 day (or whatever the guarantee period is)...for example: 100% for 1st 30 days, 90% day 30-60, 80% day 60-90, at which point they have reached their 'guarantee' point (but minus a full commission, etc.)
Sign the listing agreement first...then the guaranteed purchase details come later
May be a maximum allowable program price
Restrictions on home condition
Use the language "I'll buy it for 'list' price", but fail to say that the 'list' price is the 80% ENDING list price

If they'll buy it for the full price that they agree to list it for...then that's putting their money where their dog and pony show is.

Think about these few points:

With as difficult as it is to get a mortgage now, COULD your agent actually perform on their guarantee? Ask to speak with their mortgage lender...do your due diligence as with any other buyer.
If they don't need a mortgage and have a few $million sitting around to buy homes that don't sell in 90 days, why are they a real estate agent?
Are they "flipping" the purchase option to an investor? Are they going to list the home for the investor once they buy it?
Can they assign the guaranteed sale price (as in a wholesaler)?

Nobody likes an 'I told you so'...but

2010-11-13T19:12:00.004-05:00

"GET READY FOR THE GREAT MERS WHITEWASH BILL"

"Wall Street money is pouring into the coffers of those who are receptive (i.e., almost everyone in Congress). The legislation is already being drafted under the interstate commerce clause to ratify MERS and everything it did retroactively. It appears that the Obama administration is ready to pardon all the securitization deviants by signing this bill into law. This information is corroborated by several people who are in sensitive positions — persons who would be the first to know such proposals. Fortunately, there are some people in Washington who have a conscience and do not want to see this happen."

John Carney, CNBC--"When Congress comes back into session next week, it may consider measures intended to bolster the legal status of a controversial bank owned electronic mortgage registration system that contains three out of every five mortgages in the country.

The system is known as MERS, the acronym for a private company called Mortgage Electronic Registry Systems. Set up by banks in the 1997, MERS is a system for tracking ownership of home loans as they move from mortgage originator through the financial pipeline to the trusts set up when mortgage securities are sold.

The system has come under scrutiny by critics who charge MERS with facilitating slipshod practices. Recently, lawyers have filed lawsuits claiming that banks owe states billions of dollars for mortgage recording fees they avoided by using MERS...

Now it appears that Congress may attempt to prevent any MERS' meltdown from occurring. MERS is owned by all the biggest banks, and they certainly do not want it to be sunk by huge fines...And be subject to court challenges on mortgage ownership by foreclosure defense attorneys.

Investors in mortgage-backed securities also do not want to see the value of their bonds sink because of doubts about the ownership of the underlying mortgages.

Remember, this is the SAME Congress that "almost" passed the "Notarization Act" by voice vote and it reached Obama's desk. We will never know who voted for it, as a voice vote is not recorded, and it flew threw BOTH House and Senate.

So it looks like the stage may be set for Congress to pass a bill that would limit MERS exposure on the recording fee issue and perhaps retroactively legitimize mortgage transfers conducted through MERS' private database...."

Just look at my post of 10/26 on my Winston Trails blog at www.WinstonTrails.info ...this is EXACTLY what I feared would happen. Too big to fail also means too big to have to comply with the laws I guess. When was the last time you broke the law and then had legislation passed on your behalf? I don't want to turn this into a politcal blog...but...

That one heck of a 5 o’clock shadow

2010-11-05T04:43:00.001-04:00

Standard & Poor’s, known as a leader of financial market intelligence, has revised estimates for when we can expect this much-talked-about shadow inventory to clear up. S&P now estimates that it will take 41 months—or nearly three and a half years—to get through and sell off all that shadow inventory lurking in the national real estate market background.

This number is up drastically from it’s assessment a year ago when it estimated it would take 33 months to complete this process…(That’s 25% longer than their last estimate and these guys are the “leader in financial market intelligence”?) S&P’s report states that the growth in the nation’s shadow inventory is affecting the housing market in three ways.

First, low liquidation rates are artificially skewing the visible supply of these distressed properties on the market. Second, this ever-growing inventory is having a negative affect on existing home prices. And finally, home prices will only begin to stabilize once this shadow inventory backlogged is cleared out.

Check out my video-tip blog....lots of helpful info

2010-10-31T06:57:00.002-04:00

Just click on the image above

Foreclosures gone wild...the trilogy.

2010-10-25T01:59:00.003-04:00

Rather than repeat the entirety of all three recent posts that attempt to explain this recent foreclosure mess/fraud...here are the links to the actual posts over on my Winston Trails blog.

Foreclosures Gone Wild 1

Foreclosures Gone Wild 2

Foreclosures Gone Wild 3

Finally, Jon Stewart gets to the bottom of this foreclosure fraud thing...

2010-10-11T18:29:00.001-04:00

Be forewarned...this IS a Jon Stewart video...make sure no one easily offended is watching over your shoulder!

U.S. Home Prices Face 3-Year Drop as Inventory Surge Looms - Bloomberg

2010-09-20T12:03:00.002-04:00

The slide in U.S. home prices may have another three years to go as sellers add as many as 12 million more properties to the market…
“Whether it’s the sidelined, shadow or current inventory, the issue is there’s more supply than demand,” said Oliver Chang, a U.S. housing strategist with Morgan Stanley in San Francisco. “Once you reach a bottom, it will take three or four years for prices to begin to rise 1 or 2 percent a year.”…
Fannie Mae Forecast
Fannie Mae, the largest U.S. mortgage finance company, today lowered its forecast for home sales this year, projecting a 7 percent decline from 2009. A drop in demand after the April 30 tax credit expiration “suggests weakening home prices” in the third quarter, according to Fannie Mae…
8 Million
Douglas Duncan, chief economist for Washington-based Fannie Mae, said in a Bloomberg Radio interview last week that 7 million U.S. homes are vacant or in the foreclosure process. Morgan Stanley’s Chang said the number of bank-owned and foreclosure-bound homes that have yet to hit the market is closer to 8 million…
In addition to the as many as 8 million properties vacant or in foreclosure, owners of another 3.8 million homes -- 5 percent of U.S. households -- said they are “very likely” to put their properties on the market within six months if there is improvement, according to a survey</a> by Seattle-based Zillow.
“This has the potential to create a sawtooth pattern along the bottom,” Stan Humphries, Zillow’s chief economist, said in a telephone interview. “Homes begin to sell and a few sidelined sellers rush into the marketplace and flood the marketplace.” …
The Obama administration’s effort to help mortgage holders, HAMP, is another source of future inventory as owners with new loan terms re- default, Ritholtz said. About half of the modifications done in 2009 were behind in payments by the first quarter of 2010, according to the Treasury Department…

Read the full article by clicking the link below…(if you dare)
U.S. Home Prices Face 3-Year Drop as Inventory Surge Looms - Bloomberg

WHY IS THE BANK FORECLOSING IF I AM DOING A SHORT SALE (OR LOAN MODIFICATION)?

2010-09-16T05:34:00.001-04:00

A local attorney who counsels many of our clients, Richard Zaretsky, has just posted this excellent article on his blog. It answers the very common, but perplexing question posed above.

Do We All Have A Common Goal? Do all short sellers cooperate with the short sale process? The answer is a resounding NO. The short seller is typically living in the house "for free" and is not all that interested in moving out and paying rent. Therefore, short sellers are notoriously delay oriented. Banks believe this to be a fact.

I Want To Stay! Loan Modification borrowers are in a somewhat different boat. They don't have any plan to move out of the house as they want to modify the loan to something more affordable.

They Want WHAT!?!@? Short Sellers and Loan Modification borrowers have something in common - they have to accept the lender's terms of the short sale or loan modification or face loss of the home through foreclosure. The alternative of the loss of the house in foreclosure is usually not an desirable option. The lender can never be sure that (a) the buyer in a short sale is not going to walk away from the sale at the last minute, (b) the seller will accept the demands the lender conditions the short sale approval upon, or (c) the borrower will accept the loan modification terms offered by the lender (if any are offered at all).

Hurry Up and Wait? So knowing or believing all the above, if you were the lender and you knew that from start to finish the mortgage foreclosure process was going to take 300 to 700 days and the short sale or modification may or may not end up successful, would you wait 3 or 5 months for a short sale contract or for the borrower to submit complete loan modification information - BEFORE you started the clock on the foreclosure process? OF COURSE NOT! Therefore, even if you have a good faith intention to proceed with a short sale or loan modification, the lender will NOT stop a pending suit or delay filing an otherwise ripe suit for foreclosure. The result is one hand of the lender pursues solutions with the borrower and the other hand of the lender pursues solutions against the borrower - all at the same time.

Remind Me To Stop Before I Drive Off the Cliff! Even the HAFA and HAMP programs have guidelines for participating lenders that state that the lender will not have to stop the foreclosure process - but only that if a borrower is accepted into the processing of under HAFA or HAMP, the lender will not actually have the foreclosure sale! But they can go all the way to getting a foreclosure sale date set!

So if you are trying a short sale or modification, don't be surprised when the Sheriff rings your doorbell at 6 a.m. with a subpoena and summons and complaint for foreclosure even though the nice people at the bank are helping you in your "solution". If you are 90 days or more late (typically), you should expect that visit and introduction to your foreclosure complaint very very soon. And once you get served BE SURE TO IMMEDIATELY CONTACT YOUR ATTORNEY TO DISCUSS THE FORECLOSURE AND WHAT SHOULD BE DONE ABOUT IT.

Read Richards entire article here: WHY IS THE BANK FORECLOSING IF I AM DOING A SHORT SALE (OR LOAN MODIFICATION)?

Freddie Mac estimates home sales to fall another 23% in 3Q

2010-09-14T11:36:00.001-04:00

Below are a few of today’s housing industry headlines:

Freddie Mac expects 4 million new and existing home sales in the third quarter, a possible 20.7% decline from last year and 23% drop from the previous quarter.
Kondaur (distressed note buyer) chief executive Jon Daurio joined Moody's Investors Service analysts saying he expects prices to fall another 20%…Daurio said he expects the drop to occur over the next three years.

You can read the article here: Freddie Mac estimates home sales to fall another 23% in 3Q « HousingWire

Thinking about pursuing a loan modification? In the middle of a loan modification negotiation? Read this...

2010-09-10T06:50:00.000-04:00

Working on the inside of this industry, it is easy to see through the smoke and mirrors being used by the TBTF (too big too fail) lenders when it comes to "extend and pretend". They will do what is in THEIR best interests regardless of public statements to the contrary.

I have seen too many borrowers taken advantage of when attempting to negotiate a forebearance or loan mod without professional and legal assistance. The banks are no better than low-life debt collectors that will say anything to get some more money out of someone. But now, people have had enough and it is getting some national press...consumers are suing the banks for not following through on loan mod committments.

Read the full article from today's USA today HERE

If you have ANY questions regarding your loan, please give me a call. I promise that if I don't know the answer or solution right away, I will find out or point you in the direction of the person who does know. My direct line is 561-602-1258.

Thanks for reading

FDLE Florida Sexual Offenders Search

2010-09-09T09:08:00.001-04:00

You can search for sexual predators by zip code here:

FDLE Florida Sexual Offenders and Predators - Offender Search

Experts and news outlets surprised: Home sales plunge!

2010-08-24T15:07:00.001-04:00

But if you read this blog…YOU shouldn’t have been surprised at all. I have been counseling my sellers for many months now…you want to be the NEXT home to sell!

Here are some snippets from some of today's press releases:

1) Sales of previously occupied homes plunged last month to the lowest level in 15 years, despite the lowest mortgage rates in decades and bargain prices in many areas.

July's sales fell by more than 27 percent to a seasonally adjusted annual rate of 3.83 million, the National Association of Realtors said Tuesday. It was the largest monthly drop on records dating back to 1968, and sharp declines were recorded in all regions of the country.

2) With home sales plunging to their lowest level in 15 years, economists warn that a double-dip in housing prices is just around the corner, threatening to further slow the overall recovery.

Existing home sales sank 27.2% in July, twice as much as analysts expected, to a seasonally adjusted annual rate of 3.83 million units. Much of that drop is attributed to the end of the $8,000 homebuyer tax credit. Sales of single-family homes, which account for a bulk of the transactions, are at the lowest level since May 1995.

Inventory has also continued to climb, rising 2.5% to 3.98 million existing homes for sale. That represents a 12.5-month supply at the current sales pace, the highest since October 1982 when it stood at 13.8 months. A six-month of supply is considered normal.

Chart of existing home sales…watch out for that falling knife!

"....Purchases of existing homes plunged 27.2 percent to a 3.83 million...Estimates in the Bloomberg survey of 74 economists ranged from 3.96 million to 5.3 million..." Good job experts

Still want to listen to the ‘experts’?

If you are even thinking that you may want/need to sell anytime in the near and not-so-near future…please give me a call so we can have a lively discussion regarding my recommendations. My direct line is 561-602-1258

Thanks for reading,

Steve

Foreclosure report for Journeys End as of 8/4/10

2010-08-05T07:07:00.000-04:00

Lots foreclosures in Journeys End...and lots more to come.

Now, just because I report them as "foreclosures" does not mean that they are owned by the bank and are for sale for pennies on the dollar....at least not yet. What it means is that these homes have a Lis Pendens filed on them. From Nolo Law Dictionary: Lis Pendens: Latin for "a suit pending." A written notice that a lawsuit has been filed concerning real estate, involving either the title to the property or a claimed ownership interest in it.

There are currently 35 Journeys End homes reported to be in foreclosure as of today. A few of the ones on this list have already been taken back by the bank at the courthouse sale. Below I will report them by street, alphabetically.

Bither - 3
C Durham - 9
Eugene - 1
Finamore - 5
Houlton - 11
Kaleb - 1
Kevin - 1
Kirsten - 1
Melissa - 1
Nikki - 1
Wilbur - 1

If you are 1 of these 35 homes, or if you may be on this list next month...PLEASE call me today so you can learn what options you have and which is the best one for your particular situation. Don't ignore the issue...it won't just go away, and "letting the bank take it" is most likely the worst option you have. Here is my direct line: 561-602-1258

Inflation? Deflation?

2010-07-23T05:40:00.003-04:00

Every day, from cable news to the local paper, we are told that inflation is coming...then the next expert says we are in a deflationary spiral...what does it all mean and whom do we believe?

It would seem that everyone is right...here is the best and easiest to explain/understand definition/comparison-contrast of inflation and deflation:

I've seen some quotes equating to deflation as the things you own, and inflation as the things you need. Close, but the real explanation is more like this:

Price declines are occuring in goods/services sectors backed by debt resulting from contracting credit...things that you would normally use a loan/credit to buy (deflation). Price increases are occurring in goods/services sectors acquired with money resulting from increasing money supply (inflation), (things like food, utilities, gas for the car, etc ).

Ben can print money 'til the cows come home, showering every citizen with $10k, $100k, $1m per year/quarter/month. All that will happen is a direct escalation in prices of assets not backed by debt. Price increases for items backed by debt will not resume/recur until there is an underlying organic demand for credit and a corresponding easing in credit terms (inflation). That is, the so-called final (ie private) demand.

And there you have it...

Mortgage applications at a 13 year low...so why is that important?

2010-07-15T06:35:00.000-04:00

The Mortgage Bankers Association reported that demand for loans to purchase U.S. homes sunk to a 13-year low last week, and refinancing demand also slid despite near record-low mortgage rates. Requests for loans to buy homes dropped 3.1 percent in the week ended July 9, after adjusting for the Independence Day holiday, to the lowest level since December 1996, the Mortgage Bankers Assn. said....Rock-bottom borrowing costs are helping borrowers with pristine credit to buy and those who still have equity in their homes to refinance.

Take a look at this statistic and chart below: The refinance share of mortgage activity remained constant at 78.7 percent of total applications…so, at a 13 year low number, only 21% of the mortgage applications were for new purchases! On an unadjusted basis, the volume of purchase applications is 43% lower than the same week last year!

If even at sub-5% rates buyers are not interested, what’s going to happen to buying interest if (when) rates go up?

Unemployed people do not buy homes.
People who have had their hours or salary reduced 20-30% do not buy homes.
People with a credit score of 599 or less (25% of the population) do not qualify to buy a home.
People who lost 30% of their home equity can not sell their existing home to buy a new one.

Where I see the most activity (and a lot of multiple offer situations) is in the sub $150k range…where you can buy and have payments less than a comparable rental. Maybe this is what will happen going forward in all price ranges…activity and competition will greatly increase when the home price/mortgage rate equation delivers monthly payments at or close to what it would cost to rent a comparable home. And, it does not, necessarily have to come from lower prices or lower interest rates….if rental rates increase, that will be the ‘flip side’ of the equation. Rising rental rates, in my humble opinion, are quite possible given the scary statistic of sub 599 credit score Americans. Going forward I can see many, many more people throwing in the “credit score towel”…we will have a decade of renters (and this could raise rental rates)…income reduction, job loss, foreclosures, bankruptcy…some times up to ten years to clear/restore your credit without taking affirmative credit restoration steps.

If you’d like to discuss how this all affects your plans to sell or buy, please give me a call on my direct line at 561-602-1258.

Thanks for reading,
Steve Jackson

A 4th of July gift for you...

2010-07-04T05:41:00.002-04:00

How about starting a 4th of July family tradition that doesn't include eating meat cooked outdoors or lighting fireworks?

Below I have given you 4 links to 4 very important documents.

Why not get the family/friends together and read and discuss what is actually behind this holiday. Certainly not all 4 at once...but maybe read the short Declaration of Independence before everyone starts dinner?

Enjoy the holiday...and be safe!

And here is a beautiful acapella version of the national anthem

Steve Jackson

Disastrous home sales report - July 1, 2010

2010-07-01T11:46:00.001-04:00

The experts expected home sales to drop once the homebuyer tax credit lapsed at the end of April, but the depth of the decrease was shocking (only to the “experts”).

According to the National Association of Realtors (NAR), pending home sales fell a whopping 30% in May. Their index, which measures signed sales contracts but not closed sales, plunged to 77.6 from 110.9 in April. It's even off 15.9% from a year ago when the nation was barely emerging from the recession.

The pending home sales report is a disaster," said Mike Larson, a real estate analyst for Weiss Research. "Sales fell off a cliff after the tax credit expired. It's the biggest monthly decline ever and the index is at its lowest level since NAR began tracking it in 2001."

(As expected)…Lawrence Yun, NAR's chief economist, downplayed the damage a bit. According to him, customers rushed into deals to claim the credit, borrowing from May sales. Once the economic recovery comes into full swing, housing markets will heat up. "If jobs come back as expected, the pace of home sales should pick up later this year," said Yun, "and reach a sustainable level of activity given very favorable affordability conditions."

The question is when -- or if -- the job market will ever bounce back.

"We're not creating jobs," said Larson. "The housing problems now are being driven by broad economic problems."

Disastrous home sales report - Jul. 1, 2010

The 'experts' wrong?...what a shock!

2010-06-22T12:35:00.001-04:00

May existing home sales plunged far below expectations, coming in at an annualized -2.2% rate, compared to consensus expectation of +6.0%...This is the second worst monthly drop in history, and shows just how very wrong economists are, and how they will all have to revise their outlooks lower...

Also, in the 1st quarter of this year, 96% of originations were backed by one of the GSE's (Fannie/Freddie). i.e. there is still no viable mortgage securitization market outside of the government.

2010-06-20T07:05:00.001-04:00

San Messina beauty...

2010-06-19T19:57:00.000-04:00

Journeys End market activity...and some other stats

2010-06-06T07:46:00.001-04:00

Only 2 reported sales the past 30 days....

6946 Houlton...Kensington, Short Sale: $310k
6995 Houlton...Buckingham, Short Sale: $299k

Here is what is currently 'under contract'...3 homes currently...some have been under contract for a long time as they are short sales, and these negitiations can take anywhere from 60 days to over a year in some cases!

A Laredo on C Durham...Short Sale, has been under contract since Dec. 9th, 2009
A Kensington on Houlton...Short Sale...went under contract for the 4th time on April 5th
A Pecos on C Durham...not a short sale or bank owned...went under contract on April 30th

There are 19 homes currently on the market.
7 Short Sales
1 bank Owned
11 traditional sales

Looking at the sales figures for the previous 12 months - 24 total sales. If we were to apply this rate of sales to the current 'for sale' inventory, we arrive at an absorbtion rate of 9.5 months to liquidate the current inventory on the market in Journeys End.

Thanks again for taking the time to read our blog. If there is a subject you would like us to post on, please send us an email.

Steve and Jackie Jackson

What is everyone searching for?

2010-06-01T05:46:00.002-04:00

Recently there has been a ton of good news being reported in the real estate segment. Resale home sales were up huge...new home sales were up big too...every talking head is predicting the end of the housing slump. Not so fast. I have done some research regarding some little publicized web traffic statistics, and that tells us..The Rest Of The Story!

The company, Hitwise, a web-traffic analysis company, recently published the following trend chart:

What this chart reveals is that year-over-year visits to websites in the Real Estate category are down 22% for April 2010...that is 11 consecutive months of traffic decline for visits to Real Estate For Sale sites! It is painfuly obvious that buyer interest is declining. Now, lets look at another Hitwise chart:

The above chart from Hitwise reports that visits to “Home and Apt Rental” websites are up 45% in April 2010 year-over-year, and that represents the tenth consecutive month of increases!

Finally, Hitwise reports: “The most popular term ranked by the overall share of search clicks is ‘apartments for rent’, which has increased 162% for the 4 weeks ending May 8, 2010 when compared to the same time period 2 years ago.” For the Home and Apt Rental websites, visits have increased year-over-year for the past 10 months.

Now, every real estate agent will tell you that 90% or more of all homebuyers use the Internet during the home purchase process... So, a 22% decline for traffic to real estate sites, combined with 45% increase for rentals suggests that the market demand for housing sales might be a whole lot softer, and headed in a different direction, than widely reported economic data indicates.

People will choose to rent for 2 main reasons...they can't buy a home or they don't want to buy a home.
A large number of people today who CAN'T buy fall into a two categories: 1) No job/job or income instability, 2) credit issues. Hopefully, the job situation will improve consistently going forward, but the number of people with credit issues will most likely continue to rise. Think about the statistic in this following chart: (look at the very left bar in the graph)

The state with the greatest percentage of people at least 30 days late on their mortgage is...FLORIDA! Over 1 out of every 4 people with a mortgage is 30 or more days behind.

It is common knowledge that missing mortgage payments will deliver a pretty significant hit to ones credit score. And with the abject failure of the Govt. HAMP (loan modification) program, it is a fairly safe bet that a large number of people currently behind on their mortgage will end up eventually either losing their home in a foreclosure action or successfully completing a short sale (the much better alternative). In either case, these folks will not be purchasing a homeduring the next 2 years, or more. These are ones who can't buy a home.

Then you have large segment who still believe that it is not a good time to buy..they are renters by choice, and their numbers are growing daily.

Now, I personally know that many investors are plowing money into the real estate market, although they are very selective and are making decisions that factor in NO appreciation for 5 or more years. And, there are still buyers out there. They are balancing the historically low interest rates, low home prices and reduced competition against the chance that home values will decline further. But most of my buyers today have a long enough time horizon to give them the confidence that the combo of interest rate and home prices makes it a good time to buy.

Any homeowners reading this who are considering moving in the next 24 months or so should seriously consider getting your home on the market sooner, rather than later. Sell, get you money in the bank now, and rent for a while if you need to. It may be a bit inconvenient, but it appears that this may be the smartest move.

Journeys End Foreclosure Report

2010-05-25T17:07:00.001-04:00

May 25th, 2010

As of today, there are 35 Journeys End homes in some stage of foreclosure. (On 4/1/10 there were 31)

>11 on C. Durham

>10 on Houlton Cir

>7 on Finamore Cir

>1 on Kaleb

>2 on Melissa

> 2 on Bither Way

>1 on Nikki

>1 on Eugene Ct

2010-05-09T06:19:00.001-04:00

Sold in the last 60 days - Journeys End

2010-05-04T11:21:00.000-04:00

1) Houlton Circle - Buckingham, pool - $365,000
2) C Durham - Short Sale Taos - $333,000
3) Ethan - Yuma - $315,000
4) Kaleb - Bank Owned Taos, pool - $365,500

CBS The Early Show...Rebecca Jarvis; Selecting a real estate agent

2010-04-23T05:11:00.005-04:00

Yesterday, Rebecca Jarvis on CBS The Early show did a piece on how to avoid the common mistakes in selling real estate...her #1 mistake: Picking a bad agent

But, through lack of research or lack of expeirence she failed to give any concrete advice on how to judge if you are picking a good agent or a bad agent. The best advice is be diligent and careful when hiring an agent...you won't know you hired the wrong one until it is too late.

Personally, I have seen sellers select an agent because (in their own words) "they send me postcards all the time". Others have selected neighbors, friends, church associates etc. as their agent with no other qualifying criteria. Still others pick the agent that tells the the highest listing price.

A recent development is the "mega agent" who advertises under their name but actually has less experienced "team members" handle just about all aspects of a transaction, all the time selling the client on how this is good for them. The "mega agent" doesn't meet with the client, doesn't write or negotiate the contracts, doesn't interact with the buyers agent and may not ever speak with the client...they are involved in the clients transaction in name only.

While this is just my opinion and there may be no way to prove this, I would argue that the best agents occupy the "80th to 90th percentile" of a bell curve of relative real estate production. I say this because my years in the business have led me to believe that the absolute "top" agents in terms of total # of homes sold tend to be focused primarily on SALES and SELF-PROMOTION and most of the actual work is delegated to other individuals, while the agents just below that tend to be more client-centric and personally involved in the clients transaction.

It's time to get a CLUE

2010-04-19T05:41:00.002-04:00

HAFA...all the benefits of a regular short sale...hafa the headaches!

2010-04-07T06:11:00.007-04:00

Monday, April 5th, was the 1st day, officially, of the new government sponsored intiative, HAFA: Home Affordable Foreclosure Alternatives. HAFA was introduced to simplify and streamline the short sale process and to provide incentives for the homeowner, loan servicer and lender/investor.

We have already received specialized, in depth training on this new program and will briefly summarize the features and benefits below:

Qualifying Factors

Must be HAMP eligible
Principal residence only (must be living there, with 1 allowable exception)
1st lien mortgage originated prior to 2009
Mortgage balance less than $729,750
Mortgage payment exceeds 31% of monthly gross income
NOT a Fannie Mae or Freddie Mac backed loan

Here are the Fannie and Freddie loan look-up tools:
Fannie Mae Loan Lookup
Freddie Mac Loan Lookup

How is the HAFA program different or better than what is being done now?
The main problem, for both sellers and buyers, with traditional short sales was that they took too long and the process was wholly unpredictable. It was always difficult to keep buyers interested in, and committed to, the process. The HAFA program was designed to speed up and standardize the short sale process and give incentives for each short sale completed. During a non-HAFA short sale, there is no government incentive for banks to help you. Also, a VERY important benefit to homeowners is the requirement that participating lenders release you of any further libility for the deficiency amount!

What are the incentives?

As a qualifying homeowner, you would be entitled to a $3000 "relocation" incentive payment at the time of closing and funding of your short sale.
Servicers participating in the program will receive $1,500 for a completed short sale
Investors (lenders) can receive up to $2,000 for payments made to junior lienholders
Junior lienholders can receive up to $6000

Do I have to hire a real estate professional for a HAFA short sale?

Yes, but it won't cost you anything. Under HAFA, our fee will be deducted from the sale proceeds and paid by the lender. It is a requirement of a HAFA short sale that you work with a real estate professional throughout the HAFA short sale process. The Jackson Realty Group is now the areas HAFA specialists, having received the most up-to-date training available on the HAFA program.

Also, any time there is a new program announced, there are people who set up scams based upon the publics ignorance of the details, and the HAFA program will be no different. Other than an attorney you may hire to assist with a pending foreclosure or associated issue, beware of anyone requesting "up front fees" to assist you in processing a HAFA short sale. MakingHomeAffordable.gov (MHA) provides the following guidelines:

• Beware of anyone who asks you to pay a fee in exchange for counseling service or modification of a delinquent loan.

• Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes.

• Beware of people who pressure you to sign papers immediately, or who try to convince you that they can "save" your home if you sign paperwork or transfer over the deed to your house.

• Never make a mortgage payment to anyone other than your mortgage company without their approval.

• Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.

If you would like to meet with me to discuss if you may qualify for this program and to review the process as well as your options, please call me at 561-602-1258 or CLICK HERE and send me an email with your contact information.

2010-04-04T06:15:00.002-04:00

Foreclosures in Journeys End...breaking down the numbers

2010-04-01T04:58:00.000-04:00

As of 4-1-10, there were 33 homes in some stage of foreclosure in Journeys End.

11 on C. Durham
8 on Houlton Cir
7 on Finamore Cir
1 on Kaleb
2 on Melissa
2 on Bither Way
1 on Nikki
1 on Eugene Ct

Below is the map of the properties with a Lis Pendens, color coded as follows:
Yellow=scheduled for auction
Green=Bank Owned
Red=Pre Foreclosure

1 on Melissa is set for auction on April 19th...2 others were set for auction but had Short Sale contracts pending so the foreclosure auction my have been postponed.

Don't let the bank foreclose...do a short sale

2010-04-01T03:47:00.003-04:00

By Les Christie, staff writer March 29, 2010: 2:30 PM ET

NEW YORK (CNNMoney.com) -- Short sales are the hottest thing going in the distressed-property market, and the trend is expected to get even hotter in coming weeks and months, when the government starts handing out cash to encourage lenders to close these deals.

"In the past, many short sales would never come to fruition and the ones that did averaged over half a year to complete," said Chris Saitta, CEO of Equator, which produces short sale software. "Things would just fall into a black hole and not come out again".

But, recently, a few things have happened: 1) the banks have finally begun to get an organized, trained staff and 2) the banks may be realizing that they lose less money in a short sale as opposed to a foreclosure 3) the govt has just come out with the HAFA program that incentivizes the lender, the investor and the homeowner when they complete a short sale according to HAFA guidelines. Under the new Home Affordable Foreclosure Alternatives program, borrowers will earn a $3,000 "relocation incentive" and servicers will get $1,500 for handling a short sale. And the investors who actually own the mortgage notes will get $2,000 in exchange for sharing proceeds of the short sales with any second-lien holders. And, finally, those second lien holders will receive up to $6,000 for releasing their claims.

Lenders participating in the program must also determine the market values of properties early on and inform the owners of just what price they're willing to accept. Then, if owners come back to the lenders with bonafide offers, they have to be accepted within 10 days. Also, not mentioned in the article was the requirement that the lienholder release the homeowner of any deficiency.

If you are behind on your mortgage, or believe that you will fall behind soon and your home is worth less than you owe...please call me 561-602-1258. Or email me with your contact information if you prefer. Just don't ignore the situation, get in front of it and get your lender working with you, not against you.

Foreclosures: Housing defaults soar in Palm Beach County

2010-03-16T16:54:00.002-04:00

Foreclosures in Palm Beach County were up 63% from January to February.
Click here to read the full article

Recent market activity update

2010-03-06T05:56:00.004-05:00

There are currently 12 homes on the market in Journeys End.

Asking prices range from $264,000 to $450,000.

3 of the 12 are being marketed as short sale...with maybe 4 more that would be short sales if they were listed at market value.

A few of the homes have been on the market only a week or 2...but then you have 3 of them on the market 400+ days, 1 at 500+ days and one OVER 800 days on the market!!
____________________________________________________

Under Contract Homes: currently there are 6 homes with a pending contract on them. Asking prices on the six range from $249k to $365k

4 of the 6 are short sales.
_______________________________________________
The SOLD properties for the previous 90 days are as follows:

Windsor/Lake/Pool - $415,000
Windsor/Canal/Pool - $369,000
Kensington/Lake/Pool - $345,000
Taos - $340,000
Biltmore/Lake/Pool - $335,000
Santa Fe - $327,500
Santa Fe- $325,000
Santa Fe/Lake/Pool - $300,000

CNN Money reports 25% home price decline ahead for our area!!

2010-02-28T10:26:00.000-05:00

Take a look at this eye-opening post on our Winston Trails blog...If you're a home owner, you NEED to read it. Just click right here

New credit card rules to take effect soon...H.R. 627

2010-02-10T00:38:00.000-05:00

The Credit Card Act of 2009 phases in, with the majority of consumer protections kicking in Feb. 22, 2010. If you are into reading lengthy government documents, click on the blog post title ( or the link below) and you will be redirected to the 33 page, HR 627 document entitled: ‘‘Credit Card Accountability Responsibility and Disclosure Act of 2009’’

If you'd rather just see a brief summary... here you go:
Sec. 101. Prior notice of rate increases required. Prohibits increase in APR without 45 days= notice. Prohibits applying rate increases retroactively to existing balances. Requires clear notice of right to cancel credit card when APR is raised.

Sec. 102. Freeze on interest rate terms and fees on canceled cards. Prevents APR from being raised, or repayment terms being cancelled, if a cardholder cancels a card.

Sec. 103. Limits on fees and interest charges.

< Prohibits double cycle billing: Prohibits credit card issuers imposing interest charges on any portion of a balance that is paid by the due date.

< Over-the-limit fee restrictions: Cardholders must be given the option of having a fixed credit limit that cannot be exceeded, and card companies cannot charge overlimit fees on cardholders with fixed limits. Cardholders may elect to prohibit the creditor from completing overlimit transactions that will result in a fee or constitute a default under the credit agreement. Overlimit charges can only be charged when an extension of credit, rather than a fee or interest charge, causes the credit limit to be exceeded. Overlimit charges can only be applied once during a billing cycle.

< Prohibits charging interest on fees: Prohibits the charging of interest on credit card transaction fees, such as late fees and overlimit fees.

< Limits on charging certain fees: Prohibits credit card issuers from charging a fee to allow a credit card holder to pay a credit card debt, whether payment is by mail, telephone, electronic transfer, or otherwise. Requires fees to be reasonably related to cost. Foreign currency exchange fees may only be imposed in an account transaction if the fee reasonably reflects costs incurred by the creditor and the creditor publicly discloses its method for calculating the fee.

Sec. 104. Consumer right to reject card before notice is provided of open account. Gives cardholders who get preapproved the right to reject the card up until they activate it without having their credit adversely affected.

Sec. 105. Use of terms clarified. Prevents card companies from using the terms fixed rate and prime rate in a misleading way by establishing a single definition.

Sec. 106. Application of card payments. Prohibits credit card companies from setting early deadlines for credit card payments. Requires payments to be applied first to the credit card balance with the highest rate of interest, and to minimize finance charges. Prohibits late fees if the card issuer delayed crediting the payment. Prohibits card companies from charging late fees when a cardholder presents proof of mailing payment within 7 days of the due date.

Sec. 107. Length of billing period. Requires credit card statements to be mailed a least 21 days before the bill is due (current requirement is 14 days).

Sec. 108. Prohibition on universal default and unilateral changes to cardholder agreements. Prevents credit card issuers from increasing interest rates on cardholders in good standing for reasons unrelated to the cardholders behavior with respect to that card. Prevents credit card issuers from changing the terms of a credit card contract for the length of the card agreement. Allows penalty rate increases only for specific, material actions or omissions of the consumer specified in the card agreement. Requires issuers to lower penalty rates that have been imposed on a cardholder after 6 months if the cardholder commits no further violations.

Title II B ENHANCED CONSUMER DISCLOSURES

Sec. 201. Payoff timing disclosures. Requires credit card issuers to provide individual consumer account information and to disclose the period of time it will take the cardholder to pay off the card balance if only minimum monthly payments are made. Also requires issuers to disclose the total amount of interest the cardholder will pay to pay off the card balance if only minimum monthly payments are made.

Sec. 202. Requirements relating to late payment deadlines and penalties. Requires full disclosure in billing statements of required payment due dates and applicable late payment penalties. Requires that cardholders be given a reasonable period to make payment. Requires that payment at local branches be credited same-day.

The above summary only details a small portion of what the bill regulates...if you have any credit cards (and who doesn't), it may pay to print out and read the entire bill.

I hope this is helpful to you.

The next chapter in the book entitled: The housing crisis..what they DON"T want you to know!

2010-02-03T06:10:00.000-05:00

On our main blog, I just posted a startling entry which details the reasoning behind the likelihood of a "second leg down" in local home values...rather than duplicate the entire post here, just click here or on the post title to read the entire post.

Thanks...Steve Jackson

Kensington short sale...SOLD after 653 days on the market!

2010-01-28T12:24:00.000-05:00

A Kensington model on Houlton Circle that had been on the market since April of 2008 has finally sold for $345,000.

The original agent placed it on the market at $549,000, eventually reducing it to $410,000. After 269 days on the market, the owner switched agents. The new agent priced it at $400,000, had it on the market for over a year, and eventually sold it for $345,000. A selling price over $200,000 less than the original asking price...think someone made a pricing error here?

I see this too often, where wrong pricing, whomever is at fault (agent, owner, or both) ends up costing the seller tens of thousands..and in this case hundreds of thousands of dollars...as well as a great deal of time and stress.

Journeys End homes currently under contract...a very informative breakdown

2010-01-26T04:05:00.000-05:00

There are currently 8 Journeys End homes under contract...which is good news.

But...look at the map graphic below for "the rest of the story"

There are only three homes (of 8 total) that are NOT Short Sales

This does not bode well for property values going forward as short sales typically sell at a discount to non short sales. And with the ratio being 5 "under contract" homes being short sales and only 3 being non short sales, this could cause an appriasal problem with sales later this year...this is an excellent graphic backing up the advice that I have been giving to sellers/potential sellers in Journeys End lately: the window of opportunity is small, try to get on the market, under contract, and sold in the next 3-5 months.

Thanks for reading,

Steve Jackson

Journeys End sales the previous 60 days...map view

2010-01-26T03:59:00.000-05:00

There were 6 recorded sales in Journeys End in the previous 60 days...only 1 of them was a short sale.

Santa Fe...short sale...$300,000...pool/lakeview
Biltmore...$335,000...lake/pool
Windsor...$415,000...lake/pool
Santa Fe...$327,500
Biltmore...$315,000...pool
Windsor...$369,000...pool/canal

Journeys End Foreclosure details

2010-01-19T03:58:00.000-05:00

As of 1/15/10 there were 26 Journeys End homes in some stage of the foreclosure process...below is a breakdown by street:

C Durham - 7
Houlton Circle - 6
Finamore - 4
Bither - 2
Nikki - 2
Kaleb - 1
Jessica - 1
Eamlyn - 1
Eugene - 1
Wilbur - 1

Buckingham under contract....

2010-01-10T07:59:00.002-05:00

The extended Buckingham with a pool that went on the market a month ago at $365,000 has gone under contract.

The current owners purchased the home for $387,500 in 2003.

This is the basic Buckingham floorplan...I believe the original owners had the builder make the covered patio a part of the home.