Big Industry News affecting Short Sales in California...

Big Industry News affecting Short Sales in California...

Senate Bill 931 was recently passed giving much relief
to sellers who are in a short sale position.

The bill expands existing anti-deficiency laws for first lien
holders regarding loans secured by properties of 1-4
units to short sales and took effect on January 1, 2011.

This is BIG for Sellers, Investors, and Agents!

In part, the new law provides that: "No judgment shall be
rendered for any deficiency under a note secured by a first
deed of trust or first mortgage for a dwelling of not more than
four units, in any case in which the trustor or mortgagor sells
the dwelling for less than the remaining amount of the indebtedness
due at the time of sale with the written consent of the holder
of the first deed of trust or first mortgage."

Simply put, California sellers who are granted a short sale
by a lender holding a first mortgage will now be exempt from
a deficiency judgment.

This is great news for any of your deals your currently working on
and great news for the business over the next year!

One of the most discouraging aspects for a homeowner facing
a short sale is the threat of deficiency they will experience for
selling their property short.

Fortunately, with Senate Bill 931 homeowners will no longer
be responsible for a deficiency on first mortgages in California.

Full text available here:
http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0901-0950/sb_931_bill_20100930_chaptered.html

What impact do you think this will have on the market and sellers in general?

To your success,

Oliver Graf

Real Estate Expert

Follow me on Twitter: Twitter.com/OliverGraf360



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New FICO 8 Mortgage Score Now Available on all Top Three U.S. Credit Reporting Agencies

FICO, the nations leading credit score provider announced some big news....

A brand new FICO® 8 Mortgage Score

This new credit scoring model is designed specifically for mortgage lenders and focuses on providing a more precise risk assessment for the real estate market.

FICO® claims that the new FICO 8 Mortgage Score will reduce borrower, lender, and investor risk, and help support market stability

The FICO® 8 Mortgage Score will analyze the full credit history for the borrower and aids mortgage professionals in better predicting a borrowers risk so they can mitigate the incidence and high cost of foreclosure.

Take a look at this Exerpt from the FICO.com website...

"MINNEAPOLIS—October 26, 2010—FICO (NYSE:FICO), the leading provider of analytics and decision management technology, today announced that its latest credit scoring product, the FICO® 8 Mortgage Score, is now available from all three major U.S. credit reporting agencies. Mortgage lenders now have access to more precise risk assessment tailored for the real estate market, which can help support market stability and reduce borrower, lender and investor risk.

The FICO® 8 Mortgage Score was built specifically to help mortgage lenders better predict mortgage performance and improve credit decisions for both current and prospective homeowners. The score analyzes the full credit history on file to deliver significantly sharper assessment of mortgage repayment risk, and aids servicers in earlier identification of borrowers at risk so they can mitigate the incidence and high cost of foreclosure. Validation results have demonstrated an additional predictive value of up to 15 percent for mortgage servicing over the broad-based, all-industry FICO® Score used most widely today.

“The FICO 8 Mortgage Score’s broad availability means that all U.S. lenders and servicers can now easily access scores that are fine-tuned for mortgage performance,” said Jordan Graham, executive vice president of Scores and president of Consumer Services at FICO. “Moreover, by combining this superior predictive performance with the FICO Economic Impact Service, lenders are able to adjust policies and strategies quickly based upon forward-looking economic modeling. This is what we mean by the FICO analytic advantage: the ability to use the most advanced predictive analytics to compete and win in this highly challenging environment.”

“To do the best job of evaluating risk and increasing profits, lenders need updated credit scoring analytics that incorporate mortgage credit performance since the subprime mortgage meltdown,” said Craig Focardi, senior research director at TowerGroup. “The availability of mortgage credit scores across all three credit reporting agencies will enable lenders to upgrade their loan underwriting and account management practices.”

The FICO® 8 Mortgage Score retains the same 300-850® scoring range, minimum scoring criteria, authorized user and inquiry treatment as the general-risk FICO® 8 Score. To achieve its significant increase in predictive strength, FICO Mortgage Score assesses several additional data variables from consumer credit files to specifically predict mortgage repayment risk. Accordingly, FICO Mortgage Score includes additional score reason codes compliant with the Fair Credit Reporting Act that help lenders understand and explain the scores to applicants."

Full Post here: http://www.fico.com/en/Company/News/Pages/10-26-2010.aspx

How do you think this new scoring system will affect the Lending Industry?

To your success,

Oliver Graf

Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360



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The price of a “no-cost” loan

Some home buyers who may be concerned about paying high closing costs might be tempted by a “zero-cost” or “no-cost” loan option, which requires no cash outlay, but typically adds a half percentage point to the rate.

However, some financial consultants say these loans tend to be most beneficial to buyers planning to have the loan for less than five years.

KEEP THIS IN MIND

• One of the primary differences between a no-cost loan and similar loans is that no-cost loans do not tack on closing costs to the balance, but instead increase the rate.

• With no-cost loans, third-party fees including the appraisal, credit report, title insurance, recording, and the use of a mortgage broker are paid by the lender. The fees, including the amount the broker is being paid, are disclosed on the closing statement.

• Home buyers who bypass a broker and work directly with a lender may encounter less transparency, as loan officers are not required to disclose the amount the bank is making on the loan.

• Borrowers weighing their loan options are advised to use a mortgage amortization calculator to compare the costs for a conventional loan compared with a no-cost loan. The Federal Reserve provides an amortization calculator on its Web site at www.federalreserve.gov.

Read the full story:
http://www.nytimes.com/2010/10/24/realestate/24mort.html?ref=realestate


What are your thoughts on "No-cost" Loans?



To your success,

Oliver Graf

Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360



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The FHA’s 203(k) Rehab Program provides loans that cover Rehab & Renovation costs

Here is a great loan program if you are looking to do Rehabs or buy a property that needs work...

A little-known loan program for fixer-uppers

Home buyers thinking of purchasing a distressed property in need of repair, but who are concerned that the cost of the repairs could drain their savings account may qualify for the Federal Housing Administration’s (FHA) 203(k) rehabilitation program.

MAKING SENSE OF THE STORY FOR CONSUMERS

* The FHA’s 203(k) rehabilitation program provides loans for covering renovation costs as well as the purchase price of the primary residence. Investors are not eligible for this program. Additionally, similar to traditional FHA loan programs, the rehab program allows for a down payment of as little as 3.5 percent.

* A common misperception about the program is that the house needs to be unlivable. Realistically, the property just needs to be outdated, according to a lender familiar with the program. The property “just has to appraise below market value and then at market value with the repairs.”

* Improvements deemed “luxury” are ineligible; however, the program has a wide range of definitions for “repairs” and “modernization.” Covered repairs include items such as a new roof or heating system, as well as decorative changes, like replacing vinyl with ceramic tile on the kitchen floor or painting the interior.

* In addition to putting down at least 3.5 percent of the current value of the property, buyers also must use a HUD-approved lender, appraiser, and a contractor approved by the lender for the repairs. One list of approved businesses can be found at 203kcontractors.com.

* Borrowers considering the FHA rehab loan program should be aware that loan rates typically run around a percentage point higher than conventional loans, and come in 15- to 30-year terms, either fixed or adjustable. Additional paperwork for inspection, appraisal, title updating, and the like can increase closing costs by $1,000 or more higher than the average.

* For additional information about the FHA 203(k) rehabilitation program, please visit http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

From Oct. 21st, 2010. Market Matters Weekly Advisory
Reprinted with permission of the CALIFORNIA ASSOCIATION OF REALTORS®

How do you think buyers can benefit from this program?

How to Get More Business Today With These Simple Easy-to-follow Lead Generation Tips - For Real Estate Investors, Agents, and Brokers

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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How to Price a Property correctly - Sell Real Estate FAST

How to Price a Property correctly so you can sell it quick and get the most amount of money - Sell Real Estate FAST

When you put a property up for sale, the price you set is the most critical factor in terms of the return you’ll receive on your investment. That’s why you should always get a professional evaluation before deciding the price (You can contact me anytime if you would like a FREE help pricing property). Look at the facts and do an honest assessment of the property, based on several factors, including but not limited to:


• Market conditions
• Condition of your home
• Repairs or improvements
• Selling timeframe


In real estate terms, “market value” is the price at which a particular house, in its current condition, should sell within 30 to 90 days.

If the price of your property is too high, this could cause several things:

• Limits buyers visiting the property. Potential buyers may not view the home because it appears to be out of their buying range or “over priced”.

• Limits the number showings. Other salespeople may be more reluctant to view your home and show it to their prospective buyers.

• Used as leverage against you. Other Realtors® may use the price of the subject property to drive the sale of other homes that are more competitively priced.

• Longer time on the market. When a home is on the market too long, it may be perceived as “stale” or defective. Buyers wonder, “what’s wrong with the property,” or “why hasn’t this sold yet?”

• Lower price. An home that is priced too high, still on the market beyond the average selling time, could lead to a lower selling price in the end. To sell it, you will have to reduce the price – sometimes more than once. In the end, you run the risk of getting less than if it had been properly priced in the first place.

• Wasted time and energy. A bank appraisal is most often required to finance a home, so if it is overpriced it will not appraise and they buyers lender will force a reduced price.

Real Estate Professionals have known it for years – well-kept homes that are priced right from the start get you the fastest sale for the best price! And that’s why you need a highly trained professional to assist you in the selling of your home.

Often, in a seller’s market, homes that are priced slightly below market value initially will sell for more, simply because of the extra interest they incite. This can be a risk, however, and when it comes to such a decision you can contact me for help any time.



If you have any other questions please contact me anytime


Oliver Graf
Real Estate Expert


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How to STOP a Foreclosure Sale: Tips on getting a Foreclosure Sale Date (Notice of Trusee Sale) Postponed

How to STOP a Foreclosure Sale: Tips on getting a Foreclosure Sale Date (Notice of Trusee Sale) Postponed

If you are a Realtor, Investor, or Homeowner who has a property that has an upcoming foreclosure sale date soon, use the following....

Submit everything on the list below and more important is the actions taken after you submit it. Call and note the account multiple times until you get someone who is ready and willing to help you. Leave messages, send emails, and fax them, hit them on every front possible until you receive the postponement. DO NOT “wait for them to get back to you”, keep calling until you confirm

1) URGENT cover letter – Outlining the entire situation
2) Authorization form – All loans
3) Hardship Letter – Highlighted and Emphasizing “Permanent Nature”
4) Listing Agreement and Short Sale Addendum
5) NODPA – Notice of Default Purchase Agreement (Price Filled in)
6) COMPS – Underlined, Circled and Broken down with cover letter
7) HUD – Make sure all names, numbers, and payoffs are correct and settlement agent states “buyers choice”

Complete Every Step in this order… Get all rep names and numbers and save/note them. Start this process a minimum of 3-7 days before the projected sale date.

1. Send a FORMAL STOP SALE request with “Urgent” cover letter to every fax number and email that you have on the file. Resend Entire package above if necessary.

2. Call Negotiator and Supervisor to Note in the account that you are trying to postpone the sale. Also have rep review the account and make sure that all the required postponement items are showing up and ready for review. Stay on the phone with them until they confirm both.

3. Call Foreclosure AND Customer Service department to confirm that the request to post pone was made. If they say they cannot help you, keep calling back until you find someone that will help you.

4. Get the Trustee Sale Number and Trustee contact info one of three ways: 1) Check the NOTS letter, 2) Request Trustee Company Name and Contact Number from Customer Service, or 3) Get it off title.

5. Also, check if the Trustee Sale company is co-owned by the servicer / lender, if so any postponements can be made directly in house via email or phone by the negotiator (stay on the phone with them while they do it).

6. Call and confirm with Trustee Company that the request to postpone was received. If the request was never made, call lender back and escalate the postponement. Keep checking back until confirmed.

7. Go higher up with all parties if necessary. Repeat by phone until all parties confirm the postponement.

Obviously nothing is guaranteed, but using these techniques will help you get a Foreclosure date postponed.

Let us know about your success with these tips

To your success,

Oliver Graf
Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360



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