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Foreclosures

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Foreclosures

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

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