Top Rated Real Estate Experts Oliver Graf and Sam Khorramian bring a wealth of knowledge to the market in this exclusive Real Estate Blog. Stay informed on the latest cutting edge Real Estate strategies, Important Real Estate News, and great Real Estate Information
Currently over 25% of mortgages are over-leveraged, meaning these properties are worth LESS than the amount of the mortgage.
There is an estimated 7 MILLION foreclosures coming down the pipe over the next few years, and right now luxury homes are going into foreclosure twice as fast as the medium-priced homes.
THIS IS A PERFECT STORM FOR YOUR REAL ESTATE BUSINESS!!
Once you locate a potential short sale deal and you set the appointment with the homeowner, there are three major factors to understand...
1) Homeowners can be skeptical. Many of these homeowners are in a short sale situation because of a loan officer that put them into a bad loan, they were tricked into terms they did not understand, or they got in over their heads.
2) They are most likely in some sort of hardship. It could be anything from Job loss, to death of a spouse, medical issues.
3) They have a lot going on in their heads, particularly fear of making a bad decision.
Learn to be there for them and come from a place of service.
Be real with them and educate them on what their options are. When you put their interests first and show a strong knowledge you will get the deal every time!
Owners of distressed or “up-side-down” properties are face with many choices on both a financial and emotional level. For the struggling homeowner it is important to understand that when they are in a “distressed” position any of the following could have negative credit / tax consequences.
1) Loan Modification: This is where the homeowner and the lender come to an agreement. A modification can involve reducing the interest rate, deferring payments on the loan, an extension of time to pay back the mortgage, reduction in balance, or a combination of all of these possibilities. Note: According to the Treasury Department, only 9% of home owners eligible for mortgage modifications have actually had their payments reduced, Only 1 in 50 have had any debt reduced, 78% see their debt increase as a result of late charges / attorney fees / missed payments, 63% of modified loans end up back in default within 1year. So while this option can sound really great, most banks and lenders are not actually helping the majority of people who apply for a loan modification.
2) Foreclosure: Foreclosure is a legal process through which the mortgage holder gains title to the property form a homeowner show has stopped paying their mortgage. After certain time periods, the lenders can foreclosure with or without the consent of the property owner.
3) A deed in lieu: Also known as cash for keys. A deed in lieu can happen when the homeowner offers to “give back” the property to the lender before the foreclosure date. The lender gets the property back without having to go through the entire foreclosure process and agrees to accept title to the property from the homeowner. In exchange they forgive the loan, and can give the homeowner a small amount of money to walk away. The deed in lieu must be agreed to by the lender and the homeowner.
4) Bankruptcy: A legal action generally filed by a homeowner to have debt (s) discharged. An “automatic stay” happens once someone files bankruptcy, “staying” all actions against the person. While petitioning for bankruptcy can cause delays in the foreclosure process. It does not necessarily prevent a foreclosure from eventually occurring.
5) Short Sale: Many people consider this the best option because the lender agrees to let a homeowner sell the property at today’s market values as opposed to what is owed on the mortgage.
What options have you tried / seen work best?
To your success,
Oliver Graf
Real Estate Expert Follow me on Twitter: Twitter.com/OliverGraf360
How to Get More Business Today With These Simple Easy-to-follow Lead Generation Tips
Many people make the mistake of thinking that prospecting is about making the sale or closing the deal. You will rarely “make the sale” on the first call… It's about getting the chance to make the sale. The ultimate purpose of a prospecting call is to set an appointment to make your “pitch”. You should be focused on simply setting an appointment before you hang up the call.
Find out as much as you possibly can about the individual you are prospecting in advance. This gives you the huge advantage of being able to talk about their needs when you call them.
Always use your script on your prospecting calls (If you don’t have a script, make one! If you need help, feel free to contact me). This should be non-negotiable. Without a script, it's too easy to leave something out or get off track. Remember, after you practice and internalize the scripts this will become second nature to you.
The 5 Critical Points of Prospecting:
1) Selling is asking questions. Questions will help you find out everything you need to go for the sell. This is called question-based selling. When you ask questions, you come off more sincere, and it gives you the ability to find out more about your prospect. Listen to what they are saying and then present all the ways your product or service will benefit them.
2) Prospecting is a numbers game. We have all heard that every no gets you closer to a yes. We have to understand that hearing NO is going to be a big part of our business. The more NO’s you hear in a day the better you did, just keep on going for the YES! If you want more sales… you need to talk to more people.
3) You should set a goal for yourself to keep you on track. An example of this would be: 10-12 contacts an hour for 2-4 hours every day. This alone will get you better results than you ever imagined.
4) You can never lose a deal from too much follow-up. Remember, most sales will happen after several contacts. Don’t leave money on the table with the lack of follow-up. Set a follow up schedule for yourself and try to automate as much of the process as possible.
5) An objection is simply a question in the mind of the prospect that needs to be answered. So script out the answers to your 5 most common objections. Then you will be equipped to handle them as soon as they come up. Since objections never change, simply figure out the answers.
The best place to start is on the PHONE. The sooner you develop and learn your script and objection handlers the sooner we will be able to jump on the phone and get business. If you are persistent every day in making your minimum # of calls you can’t help but to succeed. Do it consistently EVERY DAY and you will receive a flood of business!
What creative ideas are you using to land more prospects?
Sincerely,
Preston Mattix Real Estate Expert
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-- Real Estate Purchase Real Estate Sales Real Estate Buying San Diego Based Real Estate Blog
How you can Easily Make BIG profits with Tax Liens, One of the HOTEST investing strategies in today’s Real Estate Market...
As we all know, there are several big money investing strategies when it comes to Real Estate.
With rising interest rates and economic hardship, one of the strategies Investors are using to make big money in this market is Tax Lien Certificates. How it works.... if a homeowner falls behind on their property tax payments, which is currently happening all over the country, you have the opportunity to come in and pay off the back taxes (generally for not a lot of money) and make a great return on your money, and if the homeowner is unable to repay, you can acquire the property for pennies on the dollar!
Tax Liens and Tax Liens Certificates
Shockingly, there are certain individuals that do not like to pay their real estate property taxes. (hard to believe, right?).
The non-payment of taxes creates a serious cashflow problem for local governments because they count on the money from property taxes to supply vital services like police, schools, and new roads to their local communities. So when people don’t pay, it puts them in a bind.
Tax Liens solve this problem, by creating a win-win situation. By issuing a tax lien certificate, the agency needing the money from property taxes gets paid right away when you invest in a tax lien. In exchange for paying the taxes you will receive the government’s lien for taxes. Basically, you get the governments claim on the property for the delinquent taxes.
The Government wins because they get money now and can pay their bills, and you as the Investor win because you’re in possession of a certificate that entitles you to certain benefits…
Benefits of Tax Lien Certificates
Why would an investor want to invest in tax liens? Because when you buy a Tax Lien certificate you get some incredible benefits:
1) First, you get paid fantastic interest on your money. Not only is the taxpayer obligated to repay you in full, but on top of that they have to pay you interest on your money. This can be a great source of cash flow because depending on state laws and competition, tax sale investors can make returns anywhere from 15-45%! That’s a GREAT return on your money!!
2) On top of making great cashflow, if the property owner can not repay the money, you have the right to acquire the property for Pennies on the dollar! Since tax lien certificates are secured by real estate, if you as the investor do not get all your money back plus interest and/or penalties you (as a lien holder) have the right to acquire the property. Generally the foreclosure of a real estate tax lien will extinguish all junior liens including mortgages. Thus providing you with free and clear ownership of the property for pennies on the dollar!
This is why so many investors are making a killing in tax lien certificates. They've either got a chance to earn a high rate of interest on their investment (15-45%) or they've got an opportunity to buy a home at a fraction of its market value.
Finding Tax Liens to Invest in
If you're interested in finding tax lien information, here are a few links to do state-wide searches of county or federal tax liens and where you can access online tax lien information - both federal and county - for that state:
The “Emergency Economic Stabilization Act of 2008” was passed into law - a barely publicized “sweetner” to the new Bill was an unlimited tax credit for installing some alternate energy systems.
Solar Water Heating systems have been approved for 30% of the cost of the system or up to $2,000. If you install a Photovoltaic System (electricity via solar power) to your house you can claim up to 30% of the total cost! That’s is a potential credit of around $7,500-$9,000 based on the cost of typical system.
Other items that would be considered “energy efficient home improvements” are replacement windows, insulation, small wind energy systems and non-solar water heaters. The maximum claim amount allowed is up to $500 for these types of improvements.
How it works is if you want to install qualifying energy efficient products into your home from January 1, 2009 through December 31, 2009 you can earn tax credits. Unfortunately 2008 installations do not qualify for the tax credit.
So now you will be rewarded for taking the time to make energy efficient improvements to your home and help save valuable resources at the same time.
12-month change in home values: Merced: -42.3 Stockton: -40 Salinas: -38.7 Modesto: -37.9 Riverside: -36.8 Vallejo: -34.5
The market hit hardest by the housing bubble is the Central Valley in California, where aggressive development and price hiking has yielded more homes than jobs. Now many homeowners owe more than their house is worth and are being forced into default.
Still, it's not all doom and gloom for the California housing market. The drop in home values has created an affordable market for first-time home buyers. And, on average, monthly sales have almost tripled from last year. Although the Valley has seen the worst of the crash, it may well be one of the first areas to recover.
To your success,
Oliver Graf Real Estate Expert
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-- Real Estate Home Prices Real Estate News Real Estate Foreclosures San Diego Based Real Estate Blog
Fannie Mae is committed to assisting homeowners impacted by the national housing crisis and is taking additional steps aimed at keeping families in their homes. With the anticipated announcement by the Obama Administration of a foreclosure prevention and loan modification program, Fannie Mae is again instituting a temporary halt to all foreclosure sales on occupied single-family properties scheduled to occur from February 17 through March 6, 2009. The temporary foreclosure halt will apply to portfolio mortgages and MBS pool mortgages owned or guaranteed by Fannie Mae and to foreclosures of homes that are already in process. Fannie Mae is also extending its existing temporary halt of all eviction proceedings through March 6, 2009.
Foreclosures
The temporary foreclosure halt applies to all occupied single-family properties secured by conventional mortgage loans that have scheduled foreclosure sale dates between February 17 and March 6, 2009. Mortgages insured or guaranteed by a federal government agency are not eligible for the temporary foreclosure halt. Foreclosure sales may proceed on vacant properties.
This initiative does not affect mortgage loans that have not yet been referred to foreclosure. Servicers and foreclosure attorneys (or trustees) should follow the foreclosure policy guidance contained in the Fannie Mae Servicing Guide for all loans previously referred and for all new referrals as long as such actions do not result in foreclosure sales being scheduled during the halt period.
During this temporary halt period servicers will have additional time to work with borrowers facing foreclosure using Fannie Mae’s available foreclosure prevention options, including the Streamlined Modification Program announced, Introduction of the Streamlined Modification Program on December 12, 2008.
What do you think is the best way to deal with all the foreclosure inventory? To your success,
Because we want you to be as successful as you possibly can in the world of Real Estate, we are doing something a little bit different with this blog. This blog looks at buying and selling Real Estate with both a telescope and a microscope - at times speaking broadly, at others going into the trenches with specific tactics you can use on a daily basis, or focusing step-by-step on specific niches that you can make big money in. Whether you’re a seasoned veteran or a new to the game of Real Estate, a Realtor/Broker, or a Property Owner this blog aims to expose you to the absolute best information in the industry.
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Oliver Graf - Bringing you the most valuable market information available
This Blog (RealEstateBlog360) is intended to be a general discussion only, and must not be considered legal advice. Your use of it does not create an attorney-client relationship. Any liability that might arise from your use or reliance on these blog posts, or any of its links, is expressly disclaimed. This blog is not legal, loan, accounting, or tax advice, and is not to be acted on as such, it was outdated the moment it was written, and is subject to change without notice. If you are dealing with a potential real estate investment, foreclosure, short-sale or any other type of transaction, you are advised to consult the appropriate licensed professionals.
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