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Foreclosures Foreclosures Presentation Transcript

  • Foreclosures Sales Meeting October 6, 2010
    • RealtyTrac's Rick Sharga on
    • July 2010 Foreclosures
    • Foreclosure Expert Mary Berry
    • Century 21 All-Pro Realty Inc.
    • Oklahoma City
  • Foreclosures
    • Procedure whereby property pledged as security for a debt is sold to pay the debt in event of default in payments or terms
  • Causes
    • Unemployment
    • Falling Home Prices
    • Supply exceeds demand
    • Qualified buyers waiting for the “bottom”
    • Hard to take advantage of great deals if sellers cant get value for their current home
    • General lack of consumer confidence
  • Working with Foreclosures
    • Not all banks require you to list their properties on the MLS. You are free to "pocket" list them
    • Most banks, if they do want you to place the property on MLS, will not allow you to mention that they are bank-owned (some do, some don’t)
    • In any market in the United States, at least 25-45% of vacant homes on the local MLS system are either bank or corporate-owned
  • NRBA
    • Offers form library, custom database, publishing a directory, marketing materials
    • A group dedicated to keeping up with the changes…and the opportunities
    • Membership fee is $165.83/month, annual fee $1990
  • Obtaining Foreclosure Properties Through NRBA
    • The best way to get on a bank's list is to be recommended by another broker who is already on their list
      • That’s one of the greatest advantages of NRBA membership: they are the networking group for REO
    • By having several NRBA members in an area, you work with each other and help get on to the different banks’ lists
  • Steps to Selling
    • When you hear about a property getting a foreclosure notice, leave a door hanger with your business card
    • Have buyers get preapproved for a loan and apply for the loan after approval
    • Have property inspected by a professional
    • Stay educated on the market
  • BPO Broker Price Opinion
    • Very similar to a CMA. Some have a little more information, some a little less
    • Done as "drive-by”: drive by the outside of the property, take a picture, and leave.
      • Fill out the bank's BPO form and send it in along with a picture
    • Difference between BPO and CMA is that you get paid for a BPO
    • *NRBA charges between $50 and $125 per BPO
  • BPO & Negotiating
    • Exterior BPO’s almost always come back too high
    • Explain to the loss mitigator that the exterior BPO does not reflect true value of the property
    • Get an Interior BPO or an appraisal to get the true value
  • Fannie Mae Incentives: Home Path
    • Fannie Mae is offering buyers up to 3.5% in closing cost assistance and a $1,500 bonus for selling agents on HomePath properties through December 31, 2010.
    • Buyers and selling agents must meet the following qualifications to be eligible for the incentive:
      • HomePath property sale must close on or before December 31, 2010 and close within 60 days of offer acceptance
  • Fannie Mae Incentives: Home Path
      • Only owner occupants will receive up to 3.5% in closing cost assistance
      • Only selling agents representing owner occupants will receive a $1,500 bonus
      • To be eligible for the agent’s bonus, the initial offer must be submitted on or after September 23 , close within 60 days of offer acceptance and close on or before December 31, 2010.
      • No bonus will be given for investor purchases
      • Buyers and selling agents must request incentive upon submission of initial offer in order to be eligible 
  • Omaha Market
    • Ranked 7 th in lowest unemployment @4.9%
    • 120 th & L Center: 1 St National is trying to sell the loan on wall street
    • Nowhere near as bad as National Rates
  • Nebraska
    • 1 in every 2,320 households received a foreclosure notice in August 2010
    • U.S. Housing and Urban Development Secretary awarded an additional $25,783,085 in funding to Nebraska communities struggling to reverse the effects of the foreclosure crisis
    • September 8, 2010
    • Aug 2010:
    • 3 banks put foreclosures on hold in 23 States:
      • Bank of America, JP Morgan Chase, GMAC
    • Foreclosed homes accounted for 24 percent of all second-quarter sales
    • Top Cities: Las Vegas, Miami, Chicago, Phoenix, Fort Lauderdale, Modesto
    National Statistics Foreclosures Sold New Foreclosures Avg Sale Price 17,090 338,830 $170,514
  • Resources
    • (Fannie Mae)
  • Questions/Comments