foreclosure filings

It’s true! The big czar of the Treasury Secretary. The home he bought in Westchester County New York in 2004 for $1.602mm won’t sell for that same amount. He’s dropped the price to $1.575 million and still no buyers. He’s renting.

The answer when you can’t sell. Rent. And hope for almost enough money to cover the mortgage and not kill yourself coming out of pocket for the rest.

He owes $1.25million with 2 loans and is renting the house for $7500 per month.

finance.yahoo.com/news/Geithner-faces-sluggish-apf-15419661.html?.v=6

According to my handy dandy payment calculator, an interest rate as low as 6% ON BOTH LOANS will cover the mortgage payment. You know the 2nd mortgage interest rate is never that low. Unless he got a special deal. And of course there is taxes and insurance on a $1PLUS million dollar house.

I think he might be hurting…or looking for another way, ethical of course, to get his mortgage paid.

Maybe I’ll send him one of my marketing letters to get him to do a short sale.  Maybe we should all send him letters. 

Read the article.  It’s a shame actually.  Maybe he can find a solution…like taking offers from people – whether they are too low – and sell the house for what people want to pay.  We could get more short sales accepted.

My newsletter this month is about just that – Passion – and where is yours, anyway? Have you lost your passion that you had at the beginning of starting in your real estate career? Where did it go?

Are you spending too much time listening to the radio and TV to have any passion left about anything? Even your relationships or your life?

Without passion your days are dreary, your time is spend begrugingly, and not as much ever gets accomplished. And it never gets accomplished willingly.

- Passion is not about your lack of leads from buyers and sellers.
- Passion is not the number of closings you’ve had in the last two weeks.
- Passion is not about the size of your last check at closing.

Passion is about your ideas about money, about your time and how you’re running your business.

Do you know your strengths and weaknesses? Do you do the work that is your weakness because you don’t trust someone else to do it? Maybe payroll, writing the checks, doing the rehab? this takes time and skills and if you don’t like what you are doing…or doing what will make you money every day – I can see why your not passionate.

Do you delegate the work that is your strength because you feel like you need to be doing the other work that you don’t trust others’ to do?

Stay tuned. I’m working with some folks right now who know a lot about vitural assistants, time managment and other ideas to relieve the stress you might be creating in your own life.

To read more, joing the Short Sale Queen’s Royal Court Membership Site to read this month’s newsletter and all the previous newsletters to get and keep your business running like a well oiled machine! Log in here:

Short Sale Queen Members Only Royal Court

You’ll find motivational audios to keep you on tract and lots of information on short sales to keep you closing deals and feeling passionate about what you do!

Deb McMillan
Short Sale Queen® and Coach

Short Sale Queen Members Only Royal Court

Obama’s Real Estate Rescue Plan -

Homeowner Affordability and Stability

Plan

Are you wondering how this new plan will affect short sales and the 9 million people in foreclosure that we’ve been thinking need our help and possibly a short sale?

Worry no more.  I’ve included the details but there will be few people who will get helped by this plan.  Obama says 3-4 million when there is 9 million borrowers to help.  I say maybe 1.5 million.

Short Sales are here to stay.

I’m sorry for the homeowners but as I’ve said before, the criteria from the government makes it pretty tough to qualify.

You can only be mortgaged 5% above the current market value of your house to get refinanced through this program.  That wipes out all of Florida.  Many of
them are 40-50% upside down.

Short Sale Coaching at its Finest!

Here’s the criteria as I got it from CNN.

Homeowner Affordability and Stability Plan

To refinance under the New Plan They must:

• Be current on their loans
• Have conforming loans
• Have loans Owned by Freddie or Fannie
• Owe <$417,000 on your current balance
• and have <105% LTV
• be able to prove their current income will cover the new house payment

Who is NOT eligible to refinance?

• >105% LTV

• Jumbo loan holders

Mortgage Modification

• Originated before 1/1/09
• Unpaid balance <$729,750 SF
• 55% Debt to income may still qualify and requested
  to accept debt counseling in a HUD program.
• Mortgage payments would be reduced to 31% of
  gross income (by reducing the interest rate, length
  of loan to 40 years, last resort to reduce the principal
• Payments stay the same for 5 yrs then the interest is to
  increase to market rate.-at no more than 1% per year.
• Have to modify all eligible mortgages unless
  prohibited by contract signed with investors who own the note.

Who is NOT eligible for a Mortgage Modification?

• Speculators
• Investors
• Property must be owner occupied,
  not vacate or condemned.
• Homeowners who were Irresponsible in
  borrowing, misrepresenting their income in a no-doc loan

The article said go to www.hud.gov for “self assessment” to determine if a person is eligible for the plan but I can’t find anything about it on the website

It might be up in a couple days.  If you find it, let me know.  But knowing this information will help you respond to your seller’s objections if they want the government to help them instead of a short sale.

Look at their income, expenses and the current market value of their house versus the amount they owe.  If they don’t fit the above categories, –

Short Sales It Is!

Short Sale Coaching at its Finest!

Deb McMillan
The Short Sale Queen and Coach

PreForeclosures and The Government. Help or Hinder?
or
Is the Bail-Out Really going to Bail Us Out?

We certainly hope it will make a difference. There are lots of doubts. And whose to say that with the same people overseeing the new money that was overseeing the money before (which is why we got into this problem) the same thing won’t happen.

Money would go to congressional, legislative and presidential candidates for their campaign fund. Bad governmental policy is what got us here.

• allowing anybody to get a loan whether their credit qualified or not
• allowing the banks to give their reserves to congress in the form of campaign contributions (Obama was #3on the list for receiving the most in money from Fannie Mae)

http://www.opensecrets.org/news/2008/09/update-fannie-mae-and-freddie.html
http://www.opensecrets.org/news/2008/07/top-senate-recipients-of-fanni.html
More Buyers, More Lending

It could give banks the money they need, clear off the bad debt and let there be buyers. People who can get a loan and buy our houses after we get “shorter” short sale. (I have to say I didn’t create that phrase. Nathan Embry did. But I really like it and I’m using it. I think it describes exactly what we can do in this market. And it will only get better or shorter )

And we should be able to get a shorter short sale. The banks want these houses off their books. The government will feel the same when they get them. They will be overwhelmed.

I believe the same banks will service them. They can’t afford to train thousands of new loss mitigators to re-work loans and short sales. There will just be new guidelines. And, like always, and the way business is in Corporate America, if the new guidelines don’t provide the desired results, they will change the guidelines.

How do I know this? What I do know is Fannie Mae called Countrywide on Friday September 26th. They said and I repeat “if a rebuttal BPO comes in, split the difference and accept the price” Is that something good to know?

Did you hear what they said? Submit a rebuttal BPO!!!!!!Usually submitting a lower bpo that the realtor isn’t difficult. I’m not saying lie. I’m saying don’t lie! The property values today are decreasing (depreciating) just about everywhere. You will 99% of the time be able to find lower value properties.
Easy! Think outside of the box!

Use houses that are distressed…have already gone to foreclosure sale. Let the bank know. The bank is looking for something in writing to confirm their sale price. They don’t want to be seen as only giving friends good prices. (The loss mitigators don’t want to make the news headlines like the CEO’s etc. are) They must have data. And now they will accept it. Stay tuned right here. The www.shortsalequeen.com to get monthly coaching and all the updates you’ll need to get your deals closed in these new “shorter” short sale times!

Deb McMillan
Believe in Your Own Success!

Well here we are 3 months later.  We’ve been promised money to bail people out of foreclosure.  We’ve been promised more people won’t go to foreclosure.  We’ve been promised to buy stocks at the failing banks not the properties that are in default.  And we are still waiting for something. 

A few counties are reporting a decrease in foreclosure filings but I’ve not seen it in my county yet.  Get the government involved and you guessed it, wait.