Category Archives for "Working with a Realtor"

More NEW Homeowners are Becoming Delinquent – CDPE

Reposted from a www.CDPE.com Blog entry:

According to the Federal Reserve Bank of New York, 2.7% of current mortgage balances transitioned to delinquency, up from 2.6 percent last quarter. Additionally, industry research firm Foresight Analytics predicts residential mortgage delinquencies at 13.3% for the third quarter.

New threads are popping up every day on ActiveRain, RealTown and other sites posing the question: Has the real estate market hit bottom? Unfortunately, the answer is no … not yet. We actually think we’re a few years away from a recovery.

However, these numbers show an overwhelming need for educated real estate agents to help homeowners in distress. This is where the market is today, and successful agents are working within these conditions, not avoiding them.

Helping homeowners avoid foreclosure, especially through short sales, has kept real estate agents relevant, assisted in community stabilization, and helped families find greater financial stability.

We continue to maintain that real estate agents will lead the housing industry out of the current crisis. And we’re seeing it happen, one homeowner at a time.

For more information regarding foreclosures, short sales and distressed properties visit our CDPESite click here.

Worried foreclosure is coming?

LPS Data Shows GSE Foreclosure Starts Are Accelerating

Fannie Mae and Freddie Mac are beginning to initiate foreclosures at a faster pace.

According to a new study from Lender Processing Services (LPS), GSE foreclosure starts have been accelerating and are currently at all-time highs. From May to June, foreclosures initiated by Fannie and Freddie jumped 21 percent.

The GSEs’ prime borrowers are performing the worst. Foreclosure rates among the agencies’ prime loans have soared nearly 400 percent since January 2008, with a notable hastening tracked over the last two months, LPS reports. That increase is second only to the swell seen in non-agency “jumbo” mortgages, for more than $729,750.

LPS says the recent momentum in GSE foreclosure starts coincides with Home Affordable Modification Program (HAMP) cancellations, with most of the volume concentrated in the very late stages of delinquency (six-plus months).

The latest HAMP statistics from the Treasury showed an extremely elevated number of cancellations from trial plans, as many borrowers who received temporary modifications have not been able to verify their income or have missed trial payments.

As of the end of June, 520,814 HAMP trials had been cancelled – more than have been converted to permanent status. In addition, 8,823 permanent modifications have been cancelled under the federal program.

In contrast, LPS says foreclosure starts have remained relatively stable over the last several months for the rest of the industry. The company puts the overall foreclosure rate as of the end of June at 3.65 percent, but notes that foreclosure inventories are still elevated.

According to LPS’ market data, total foreclosure starts for 2010 are at 1,456,000. That stat is lower than 1,682,000 for the same period in 2009, but up from 1,245,000 in the first half of 2008.

Short Sale NC: Advantages of Working with a Local Realtor During a Short Sale

In the current real estate market, the purchase of a home by a short sale transaction can make a lot of sense. Buying the home at a less inflated price can save you money. If you really want to succeed, you might want to consider working with a Realtor when completing a short sale in NC.

If you were not going to work with a Realtor, what other options would you have? You may or may not get lucky enough to find a home owner smart enough to negotiate such a deal on their home, but they will NOT be looking out for your best interests. It is not necessarily going to be an easy task. At best, you will still need some legal representation.

You might also end up talking to a real estate investment company or specialist. In this case, you may be working with someone who has the expertise to negotiate with your lending company, and guide the transaction through to closing. You gain some legal and technical expertise here, but there is a catch. The real estate investor is not required to be licensed, and therefore does not have to abide by the same code of ethics as a Realtor. These folks are strictly in the deal to turn a quick profit. They can have a buyer waiting for your house, as the property is closed. The REI route has also become quite the “get rich scheme.” There are lots of people that teach the basic concepts of real estate investment to anyone.  Chances are, you may end up working with someone with little to no experience negotiating a short sale transaction.

The final thing to consider is that, most of the time, banks like working with Realtors for short sale NC transactions. They realize the Realtor will be paid a fairly consistent commission for their work, versus the type of profits that real estate investors can often turn. If they know they are working with someone licensed, with a good reputation in the local community, you will often get a better deal from the bank.  Working with a Realtor during short sale can make the transaction a win-win for you and your lending institution.