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