ATTN: Realtors Do You Hate Short Sales?

-Banks making you discount your commission?

-No one want to put in an offer on your short sale listings?

-Does the bank take too long?

-Are the buyer's flaking out because of impatience?

-Sick of being on hold with Countrywide?

Make twice the commission (12% in some cases) and do half the work! YOU NEVER HAVE TO TALK TO BANKS! I'm not kidding! I charge NO fees. Call Jason Lucchesi for details...(317) 363.7685

Builder confidence drops as mortgage rates climb

The following article was written by Chris McLaughlin with Short Sales Riches. If you have any questions about Short Sales or would like more information, just click HERE for more information.

Builder confidence drops as mortgage rates climb up

The National Association of Home Builders (NAHB) said its Housing Market Index (HMI), which measures builder confidence in sales of houses, declined 1 point to 15 in June. The drop was largely on account of the rise in mortgage rates over the last few weeks. NAHB Chairman Joe Robson said, "Home builders are facing a few headwinds, including expiration of the tax credit at the end of November; a recent upturn in interest rates; and especially the continuing lack of credit for housing production loans." The drop in HMI in June followed two months of increase that had indicated that builders were hopeful of a recovery. "The housing market continues to bump along trying to find a bottom," NAHB chief economist David Crowe said. The HMI for June was based on a survey of 548 home builders, who answered questions about the current and near-term sales prospects. From a regional perspective, the HMI declined 3 points to 15 in the South, which is the nation's largest housing market. All other regions in the country posted gains.


Foreclosure in your neighborhood can affect your home value

According to a report from the Center for Responsible Lending, a consumer advocacy group, houses located in neighborhood of foreclosed homes experience a drop in value. Center for Responsible Lending said foreclosures are likely to cause 69.5 million nearby homes to suffer price drops averaging $7,200 per home this year. The total loss in property value could exceed $500 billion. John P. Harding, a professor at the University of Connecticut's Center for Real Estate and Urban Economic Studies, says properties under foreclosures may not be maintained well and the sight of peeling paint, broken windows and overgrown lawns often creates a negative impression in the minds of buyers of neighborhood properties. "As the foreclosure crisis continues to worsen, the contagion is spreading," said Ellen Schloemer, the executive vice president of the Center for Responsible Lending. "You can't just say those foreclosures are hurting someone else." If you are a homeowner worried about the value of your property, you would do well to have an eye on neighborhood houses.


Fed's aid for commercial real estate may have few takers

The Federal Reserve (Fed) introduced the Term Asset-Backed Securities Loan Facility (TALF) last November to support issuance of asset-backed securities collateralized by consumer loans including housing loans. The TALF support for commercial mortgage-backed securities (CMBS) will help inject liquidity into the market. That in turn would lower interest rates and stimulate demand for loans for the commercial real estate market. As the first monthly deadline for investors to apply for loans to buy new CMBS under the TALF program passes today, no issuers have announced debt that's eligible for the program. "I would be very surprised" if there are any deals this month, said Kevin Petrasic, a former official at the Office of Thrift Supervision. "Unless the market really starts to pick up within the next couple weeks, I think July is going to be a little challenging as well." Investors are concerned about government restrictions on hiring foreign workers for firms that accepted subs
idized loans and the possibility of Congress taxing earnings retroactively. According to estimates by JPMorgan Chase & Co., CMBS sales plunged to $12.2 billion in 2008, compared with a record $237 billion in 2007. "The more liquidity you can get in the market, the better off the commercial real estate market is going to be," said Chip MacDonald, a partner at law firm Jones Day.

Credit card defaults hit a high

Bank of America, the largest U.S. bank, has announced that the default rates on its card portfolio rose to 12.50% in May from 10.47% in April. American Express, which accounts for 25% of the credit and charge card sales volume in the United States, said its default rate rose to 10.4% in May from 9.90% in April. Other banks such as Citigroup and JPMorgan have seen deterioration in their card portfolios. Analysts expect the default rate to go beyond 10% this year. That would result in a loan loss of over $70 billion to the industry. Industry experts feel there will be no improvement in the performance of credit card issuers unless unemployment drops. Credit card lenders are tightening credit limits, raising standards and closing accounts in order to clean up their card portfolios. "Until lenders show stabilization then trend-bucking improvement over a several month period, we remain bearish on credit card lenders and the U.S. consumer," said John Williams, an analyst at Macquarie Research.

Lawmakers propose to end TARP

Two lawmakers have submitted proposals which would effectively put an end to the Troubled Asset Relief Program (TARP), unveiled by U.S. Treasury last October in order to bail out troubled firms. Jeb Hensarling, a Republican congressman, has proposed to end TARP by the end of this year and prevent the Treasury Department from using TARP money returned by banks to lend to other struggling firms. John Thune, a senator, has proposed that the U.S. government should sell its ownership interests in all firms by July 2010 and in future the government should not own any U.S. company. "I can't tell you how many people in my state, as I traveled, are now coming up unsolicited, very concerned about the increasing intervention of the federal government into the private marketplace and the implications that that has for our economy," said Thune. Lawmakers and analysts are concerned with the increasing cost and scope of the TARP program.

In addition, some fear that government may get involved in the day-to-day operations of the firms in which the government has a stake and that would impact the return on taxpayers' money. Some analysts believe an early sale of ownership stakes will not serve the interest of taxpayers since they may lose out on large gains if the shares of struggling financial firms eventually bounce back. "There is no simple way out," said Brian Gardner, an analyst for investment bank Keefe, Bruyette & Woods. "As well intentioned as the idea may be, ending TARP early could have some pretty negative implications."

Mortgage Applications Slip 16.2% But REITs Recover

The below article was written by Chris McLaughlin of Short Sales Riches, and you can find more articles similar by CLICKING HERE.

Mortgage applications decline 16.2% in the week ended May 29

According to the Mortgage Bankers Association (MBA), its Market Composite Index, a measure of mortgage loan application volume, decreased 16.2% to 658.7 from 786.0 a week earlier. Refinancing in mortgages decreased to 62.4% of total applications from 69.3% the previous week. Analysts are concerned about the negative impact of the recent rise in mortgage rates on the housing market. GMAC, a large financial services firm, has stated that the home loan volume at GMAC is now about 75% lower than a few months ago when mortgage rates hit their lows. MBA, in a separate report released yesterday, reported an increase in commercial and multifamily mortgage delinquencies during the first quarter of 2009. Jamie Woodwell, Vice President of Commercial Real Estate Research at MBA, said the delinquency rates on commercial and multifamily mortgages "are all now at levels higher than at any time since the 2001 recession." Economists believe that housing market has to stabilize for the economy to recover, and for housing market to stabilize, interest rates have to stay low.

Real Estate Investment Trusts show signs of recovery

Real Estate Investment Trusts, commonly known as REITs, are funds that make investments in the real estate sector. REITs, which did extremely well some years ago when the sector boomed, have been languishing in the last two years. In 2007, the All REIT Index, an index of REITs, fell 17.83%, and in 2008, the index dropped 37.34%. In March this year, the index rose 4.41% and in April the index rose about 28%. Analysts think that the rise in the index is a sign of optimism in investor expectations. According to Capital Analytics, a firm that follows real estate trends, publicly traded REITs have, over the past several weeks, raised more than $10 billion in equity, demonstrating that REITs are attracting investor interest. As the economy recovers, prospects of inflation loom large. Real estate is seen as an effective hedge against inflation, as property values rise. Peter Slatin, editorial director at Real Capital, says investors in REITs are "buying the prospect of recovery" and REITs are "poised to weather the storm."

Demand for TALF funding grows

The Term Asset-Backed Securities Loan Facility (TALF), announced by the Federal Reserve (Fed) last November, is aimed at lowering cost of consumer credit. Investor demand for TALF funds rose 8% to $1.5 billion in June from May and up 145% from March when the first round of TALF funding happened. The program has taken time to take-off for a variety of reasons including investors worrying about the prospect of scrutiny by the government, and complexity in paperwork involved in receiving funding. Brian Loo, portfolio manager at Metropolitan West Asset Management, says the three-year, non-recourse funding offered by TALF is attractive to investors. Auto and credit card loans are the biggest categories of consumer credit, and according to Michael Feroli, economist at JP Morgan, "that's what the program is hoping to tackle." The Fed estimates that the program could grow to $1 trillion. The next phase of TALF funding starts in mid-June when investors are expected to apply for newly issued commercial mortgage-backed securities.

Companies aren't yet in a mood to hire

With economists tracking unemployment data to look for signs of economic recovery, findings from a recent employment survey are not very encouraging. According to a semi-annual survey conducted by Dice Holdings, a provider of specialized career websites and career fairs, most of the employers in the U.S. do not expect to see an increase in hiring this year. The survey found only 10% of the employers expecting to see a recovery in hiring in the second half of this year. About 31% said they expected to see layoffs in the next 6 months. Employers said they have seen significant increase in the number of applicants in the recent past. Once the economic recovery begins, there is a 3-6-month lag before hiring revives. Scot Melland, the chief executive officer of Dice Holdings, said, "Our customers are telling us they feel better about the environment but that has yet to translate into a change in recruiting budgets."

Banks asked to raise capital before repaying TARP funds

The Federal Reserve (Fed) is asking banks to raise specific amounts of capital before repaying funds they took under the Troubled Assets Relief Program (TARP). Some analysts believe that the Fed is applying a more stringent set of standards for measuring the health of banks now, than it did about a month ago when the results of the stress tests indicated that many of the banks would be able to withstand economic slump. Clearly, the Fed is concerned with the prospect of banks' capitalization becoming inadequate due to repayment of TARP funds. Banks such as JPMorgan Chase & Co., Morgan Stanley, and American Express Co. have been asked by the Fed to raise capital. Lawrence Kaplan, a former attorney at the Office of Thrift Supervision, says, "The Fed doesn't want to be criticized for allowing people to repay this and then having the banks say we just don't have the capital to make loans now. It's an exercise to make sure that no one is going to get criticized for allowing these redemptions." The Fed is likely to release a list of banks which have been granted approval to repay TARP funds, next week. Banks feel that the conditions that come with TARP funding are onerous, and have expressed their desire to repay it at the earliest. Earlier this week, Jamie Dimon, the chief executive officer of JP Morgan, in a mock letter to Treasury Secretary Timothy Geithner, wrote, "Dear Timmy, we are happy to be able to pay back the $25 billion you lent us. We hope you enjoyed the experience as much as we did."

Avoid Foreclosure: Working With The Right Team

I've been receiving a lot of questions from realtors, investors and homeowners, in regards to having to repay the remaining balance by doing a short sale. I simply tell individuals, if you know what your doing, and know how to do it very well, it'll get figured out to where the homeowner will not have to pay. We want to help homeowners avoid foreclosure, and get them out of debt, not put them into more, right?

Most people think, "Oh, just file for a Chapter 7 Bankruptcy, and have it taken care of that way!" Why would you advise or tell somebody to file for bankruptcy if your not an attorney. I may refer somebody to a bankruptcy attorney to help out after the foreclosure is over, but I never tell them to file. If your doing that, STOP! That's not your call. Like I said above, if your working with somebody who's experienced with short sales and is successful, you can avoid the promissory note for having to pay the unpaid balance. Now, as a last resort for a bankruptcy, the remaining balance can be included into whichever bankruptcy your filing, but PLEASE check with your local state bankruptcy for further details on this. The only case a homeowner of mine has to sign a promissory note to repay the balance is when I refer them to speak with the bankruptcy attorney. I don't advise them to file, however, I advise to seek legal counsel. This is what you should do in this case. In addition, even the most successful short sale investors can't negotiate that every single loan not have a repayment plan.

The Secret. I'm giving away one of my secrets. How to avoid having your homeowners sign the promissory note and not having to repay the balance...very simple, reduce fees on the HUD, and also raise your price slightly. Remember, a profit is better than no profit, and your ultimately helping a homeowner avoid foreclosure. Also, keep this in the back of your head, even the slightest amount, and even the best hardship letter explaining the homeowner is unemployed without any savings could go a long way with that decision on the promissory note. Remember this!

Have questions, e-mail me at Jason@GlobalFortuneSolutions.com.

Avoid Foreclosure: Save Your Credit!

You know what's really annoying in today's market, is those that listen way too much to the news on avoiding foreclosure! For example, one of the most common excuses I hear from those in foreclosure that say, "My credit is already screwed up...why should I care anymore?" If your a realtor or an investor reading this, and you focus some or all of your business on helping those avoid foreclosure by doing a short sale, you know exactly what I mean. The truth of the matter is that people in foreclosure don't understand what's beyond or after the foreclosure is through. The ONE single most important thing homeowners need to know is that by going through, and not avoiding foreclosure is that if they're trying to get back on track, maybe from a job loss? What's the first thing after your interview do employers do? They run a background check. When they run your credit, and they see that you've been or had a foreclosure, what do you think comes to their mind? NOT HIRED! Employers understand our economy right now and sympathize but, it's a business their essentially looking out for.

In ending, when somebody tells you that their credit is already ruined, fire back to them, and ask them what's their plans for rebuilding so that you can avoid foreclosure in the future. Most homeowners don't have a clue that they can get turned down from a job position over a foreclosure. Help them understand the consequences beyond the foreclosure. They shouldn't think twice about doing a short sale then.

Click HERE for more on this information. This website also goes into detail on you can be extremely effected by a foreclosure.

Q & A - If you do Short Sales, check this out!

Want to know what's more disturbing after the foreclosure process has ended? (other than the foreclosure itself) Ask me and I shall tell. It's something that most of us investors/realtors miss to inform sellers that are shaky about doing a short sale in the 1st place.

Housing-Rescue Plan Adds 'Short Sales'

FYI - I'd like to say I wrote the below article, but it actually came from the Wall Street Journal. The link is at the bottom of this article.

The Obama administration on Thursday laid out additions to its housing-rescue plan that are designed in part to make it easier for financially troubled homeowners to sell houses that are worth less than their mortgages.

The newest initiative creates a standardized process and adds incentives for so-called short sales, in which a borrower -- with lender approval -- sells the home for less than the amount owed.

The government also said it would make it simpler for borrowers to voluntarily transfer ownership of properties to mortgage companies through a "deed in lieu" of foreclosure, helping the companies avoid a potentially costly and time-consuming foreclosure process.

Administration officials said the new initiatives could help hundreds of thousands of borrowers or more.

The guidelines come nearly three months after the administration laid out its $75 billion housing-rescue plan, which uses financial incentives to encourage mortgage companies and investors to modify troubled loans. The latest announcement is aimed in part at borrowers who can't be helped by a loan modification.

Efforts to implement the programs are just getting off the ground. Government officials said Thursday that mortgage-servicing companies have offered more than 55,000 trial modifications to financially troubled borrowers and that thousands of those borrowers have begun making loan payments under the program.

In addition, roughly 3,600 borrowers have lowered their loan payments under a program that allows borrowers who have little or no equity to refinance, provided that their loan is owned or backed by government-controlled mortgage giants Fannie Mae and Freddie Mac. Fannie has received more than 51,000 applications for the program.

But not all borrowers can be helped by such efforts, often because they have too much total debt or not enough income or because modifying the loan may not be economical for an investor or lender compared with foreclosure.

The government will pay mortgage-servicing companies up to $1,000 and borrowers up to $1,500 for successful short sales or "deeds in lieu" transactions. It will also spend up to $1,000 to help defray the cost of getting holders of second mortgages to release their liens so these transactions can be completed.

Short sales have accounted for 15% to 20% of sales of existing homes this year, according to the National Association of Realtors. A short sale can result in lower losses to investors compared with a foreclosure but needs lender approval and can take three to four months to complete, said Bill Etchegaray, a real-estate agent with Century 21 Superstars in Yorba Linda, Calif.

The incentive payments to mortgage-servicing companies and streamlined process could help clear the logjam of distressed home loans, said Thomas Lawer, an independent housing economist, adding that "it's crystal clear" that short sales are often preferable to a foreclosure. But "giving borrowers money to encourage them to sell their homes without having to repay their debt is a slap in the face to everyone else," he added.

Another part of the program provides additional payments to lenders, servicers and investors for loan modifications in areas where home prices have been dropping. Payments under this program could in some cases total thousands of dollars per loan, administration officials said, and are designed to offset concerns that investors will face additional losses if the modified loans redefault.

So far, 14 mortgage-servicing companies have signed up to participate in the loan-modification program, and 75% of loans are now covered by the plan. The firms include Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co. and Wells Fargo & Co. Other mortgage companies, including SunTrust Corp., PNC Corp. and American Home Mortgage Servicing Inc., said they are still evaluating the program. HSBC Mortgage Corp. said it has been implementing the Obama program for borrowers with Fannie or Freddie mortgages, but is still evaluating the program for loans it owns. PNC is applying the guidelines of the Obama plan to loans owned or guaranteed by Fannie and Freddie, but hasn't yet signed a contract with the government that would require it to apply those same guidelines to loans it owns or services for investors, a company spokesman said.

The above article came from; http://online.wsj.com/article/SB124230792743919395.html