Download - Foreclosures
Foreclosures
Sales Meeting
October 6, 2010
RealtyTrac's Rick Sharga on
July 2010 Foreclosures
Foreclosure Expert Mary BerryCentury 21 All-Pro Realty Inc.
Oklahoma City
Video
Foreclosures
Procedure whereby property pledged as security for a debt is sold to pay the debt in event of default in payments or terms
Causes
Unemployment Falling Home Prices Supply exceeds demand Qualified buyers waiting
for the “bottom” Hard to take advantage of
great deals if sellers cant get value for their current home
General lack of consumer confidence
Working with Foreclosures
Not all banks require you to list their properties on the MLS. You are free to "pocket" list them
Most banks, if they do want you to place the property on MLS, will not allow you to mention that they are bank-owned (some do, some don’t)
In any market in the United States, at least 25-45% of vacant homes on the local MLS system are either bank or corporate-owned
NRBA
Offers form library, custom database, publishing a directory, marketing materials
A group dedicated to keeping up with the changes…and the opportunities
Membership fee is $165.83/month, annual fee $1990
Obtaining Foreclosure Properties Through NRBA
The best way to get on a bank's list is to be recommended by another broker who is already on their listThat’s one of the greatest advantages of
NRBA membership: they are the networking group for REO
By having several NRBA members in an area, you work with each other and help get on to the different banks’ lists
Steps to Selling
When you hear about a property getting a foreclosure notice, leave a door hanger with your business card
Have buyers get preapproved for a loan and apply for the loan after approval
Have property inspected by a professional
Stay educated on the market
BPOBroker Price Opinion
Very similar to a CMA. Some have a little more information, some a little less
Done as "drive-by”: drive by the outside of the property, take a picture, and leave. Fill out the bank's BPO form and send it in
along with a pictureDifference between BPO and CMA is
that you get paid for a BPO *NRBA charges between $50 and $125 per
BPO
BPO & Negotiating Exterior BPO’s
almost always come back too high
Explain to the loss mitigator that the exterior BPO does not reflect true value of the property
Get an Interior BPO or an appraisal to get the true value
Fannie Mae Incentives: Home Path
Fannie Mae is offering buyers up to 3.5% in closing cost assistance and a $1,500 bonus for selling agents on HomePath properties through December 31, 2010.
Buyers and selling agents must meet the following qualifications to be eligible for the incentive: HomePath property sale must close on or before
December 31, 2010 and close within 60 days of offer acceptance
Fannie Mae Incentives: Home Path
Only owner occupants will receive up to 3.5% in closing cost assistance
Only selling agents representing owner occupants will receive a $1,500 bonus
To be eligible for the agent’s bonus, the initial offer must be submitted on or after September 23, close within 60 days of offer acceptance and close on or before December 31, 2010.
No bonus will be given for investor purchases Buyers and selling agents must request incentive
upon submission of initial offer in order to be eligible
Omaha Market
Ranked 7th in lowest unemployment @4.9%
120th & L Center: 1St National is trying to sell the loan on wall street
Nowhere near as bad as National Rates
Nebraska
1 in every 2,320 households received a foreclosure notice in August 2010
U.S. Housing and Urban Development Secretary awarded an additional $25,783,085 in funding to Nebraska communities struggling to reverse the effects of the foreclosure crisis
September 8, 2010
Aug 2010:
3 banks put foreclosures on hold in 23 States: Bank of America, JP Morgan Chase, GMAC
Foreclosed homes accounted for 24 percent of all second-quarter sales
Top Cities: Las Vegas, Miami, Chicago, Phoenix, Fort Lauderdale, Modesto
National Statistics
Foreclosures Sold
New Foreclosures
Avg Sale Price
17,090 338,830 $170,514RealtyTrac.com
Resources
Homepath.com (Fannie Mae)HUD.comNAREB.comReoNetwork.comRealtyTrac.comFDIC.gov
Questions/Comments