Educational Webinar for Homeowners

Educational Webinar for
Homeowners
December 18, 2010

http://stevenwblack.com

background

13 years Experience


background

Top-Producing Realtor in Napa

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background

Been through it personally

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background

Driven by passion to help other
Americans keep their homes

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we’re going to talk about

Why we’re here
Who is aﬀected
How it happens
What you can do


the ﬁne print

* Steven W. Black & Associates oﬀers
information on the state of the market
and insight into what has worked in
the past. Each situation is unique and
you are responsible for the use of
the information presented.

✴ Steven W. Black & Associates offers information
on the state of the market and insight into what
has worked in the past. Each situation is unique
and you are responsible for the use of the
information presented.


the fine print

* Steven W. Black & Associates offers
information on the state of Don’tmarket are happy to
the worry, we
o er help specific to your
and insight into what has workedafter this presentation
situation in
the past. Each situation is unique and
you are responsible for the use of
the information presented.

✴ Steven W. Black & Associates offers information
on the state of the market and insight into what
has worked in the past. Each situation is unique
and you are responsible for the use of the
information presented.


Why Are We Here?

http://www.flickr.com/photos/joao_trindade/4363157652

how it SHOULD work

Change in ﬁnancial situation

ARM Adjusts
Job Loss
Injury
etc.


how it SHOULD work

Change in ﬁnancial situation Loan Modiﬁcation

ARM Adjusts Priniciple reduction
Job Loss Restructuring
Injury (interest rate )
etc. Enabled by TARP


how it SHOULD work

Change in ﬁnancial situation Loan Modiﬁcation one.
D
D
ARM Adjusts Priniciple reduction
Job Loss Restructuring
Injury (interest rate )
etc. Enabled by TARP


How it Really Works


how it really works

Change in ﬁnancial situation

ARM Adjusts
Job Loss
Injury
etc.


how it really works

Change in ﬁnancial situation Loan Modiﬁcation

ARM Adjusts Rarely happens
Job Loss ~10% include
Injury principle reduction
etc. Where is TARP?


how it really works

Change in financial situation Loan Modification Short Sale

ARM Adjusts Rarely happens Bank drives
Job Loss ~10% include terms of sale
Injury principle Multiple Offers
etc. reduction
Where is TARP?


how it really works

e--
re e
or
Fo ur
F
Change in financial situation Loan Modification Short Sale c los
c !!!!!
!
ARM Adjusts Rarely happens Bank drives
Job Loss ~10% include terms of sale
Injury principle Multiple Offers
etc. reduction
Where is TARP?


Who is Directly Aﬀected?

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who is directly aﬀected?

home purchased in the last 13 years



home purchased in the last 13 years
that’s back to 1997



reﬁnanced in the last 13 years
that’s back to 1997


Who is Indirectly Aﬀected?


who is indirectly aﬀected?

friends and family

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communities

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local businesses
schools
marriages
taxpayers


Everyone.


Who Proﬁts?


bank proﬁts *
$60

$45

In
$30
Billions

$15

3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 $0
3/10 6/10 9/10

* Source: Federal Deposit Insurance Corporation (FDIC; http://www.fdic.gov) http://stevenwblack.com

bank proﬁts * $51 Billion
292% annual increase
$60
34% quarterly increase
$38 Billion
533% annual increase
124% quarterly increase $45

In
$30
Billions

$15

3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 $0
3/10 6/10 9/10

* Source: Federal Deposit Insurance Corporation (FDIC; http://www.fdic.gov) http://stevenwblack.com

How it Happens


pine st. napa

$220,000
2 Bedroom
1 Bath
~0.3 Acre
Regular Sale

$165,000

$110,000

$55,000

870 ft2

Oct 28, 2010
Dec 10, 2010


pine st. napa

$220,000
2 Bedroom
1 Bath
~0.3 Acre
Regular Sale

$165,000

Sold by REO
Bank owned
$110,000

$55,000

870 ft2
1150 ft2
Oct 28, 2010
Dec 10, 2010

* Intentionally pulled one of the lowest comps in timeframe closest to close of escrow of affected property

pine st. napa

$220,000
2 Bedroom
1 Bath
~0.3 Acre
Regular Sale

$165,000

Sold by REO
Bank owned
$110,000

$55,000

870 ft2
1150 ft2 $50,100 devaluation
Oct 28, 2010
Dec 10, 2010
for a house 32% larger
in ~5 weeks


westwood neighborhood

$230,000
2 Bedroom
1 Bath
~0.12 Acre
Regular Sale

$172,500

$115,000

$57,500

880 ft2

Sept 4, 2009
Sept 18, 2009



$230,000
2 Bedroom
1 Bath
~0.12 Acre
Regular Sale

$172,500

Sold by REO
Bank owned
$115,000

$57,500

880 ft2
760 ft2
Sept 4, 2009
Sept 18, 2009



$230,000
2 Bedroom
1 Bath
~0.12 Acre
Regular Sale

$172,500

Sold by REO
Bank owned
$115,000

$57,500

880 ft2
760 ft2
Sept 4, 2009 $81,800 devaluation
Sept 18, 2009 in 14 days


Ja
n 31
, 20
Ap 07
r1 Regular Sale
0,
20
M 07
ay
29
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00
Oc 7
t2
6,
20
07
Oc
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1,
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N
ov
9,
20
07
Ap
r4
,2
00
Ap 8
r2
autumn run neighborhood

3,
20
08
M
ar
24
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00
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ay
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00
9
Ju
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9,
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$350,000
$700,000
$1,050,000
$1,400,000


Ja
n 31
, 20
Ap 07
r1 Regular Sale
0,
20
M 07
ay
29
,2
00
Oc 7
t2
6,
20
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1,
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N
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9,
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Ap 8
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3,
20
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M Bank owned
ar
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9
*

Ju
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$350,000
$700,000
$1,050,000
$1,400,000


$1,400,000

$765,000 devaluation $1,050,000
over 3 years while
bank proﬁts are at record highs
$700,000
Regular Sale

Bank owned
$350,000

* *
07

07

7

07

07
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20

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*911 Napa Properties in
foreclosure/pre-foreclosure/
bank owned

* Source: Foreclosure Radar (http://www.foreclosureradar.com) http://stevenwblack.com

What Can You Do?


what you can do

Get Educated

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what you can do

Being here is a
great start!

Get Educated

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what you can do

Get Help

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what you can do

*
Get Help

http://www.flickr.com/photos/soldiersmediacenter/4748766022/
* Or someone like us

Next Steps


next steps

Upcoming Webinars: Professional Assistance:
How to Choose a Realtor Steven W. Black & Associates
Protecting your Home Real Estate Lawyer
CPA


we are here for you

info@stevenwblack.com
@stevenwblack
Facebook
1.707.931.4700


Questions
&
Answers


ﬁnishing up

We Encourage Sharing
You are free to download and distribute this presentation under
the terms of the Creative Commons Attribution-Non-Commercial-
ShareAlike license

That means you can use the information in this presentation for
non-commercial means as long as you share your work under the
same license and give credit to
Steven W. Black & Associates


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