I have recently earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.
Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.
In the Tampa Bay area, more than 1 in 10 homes are in danger of foreclosing. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.
“This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales - it is so rewarding to be able to help sellers save their homes from foreclosure.”
Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® such as me with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.
The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.
“Our goal is to educate as many people as possible so we can help as many homeowners as possible,” Charfen said. If you fear that you could lose your home to foreclosure or know someone that might be in the same situation, call me so we can put together a program to avoid foreclosure
Regards,
John A. Broom III, CDPE, BSME
Licensed Real Estate Professional
Saturday, April 25, 2009
Monday, March 9, 2009
The 7 Most Dangerous Short Sale Myths PANTONE 540 C
© Distressed Property Institute, LLC 2009 800-402-0335 www.cdpe.com Page
“Rumor travels faster, but won’t stay put as long as the truth.”
Will Rogers
One of the most dangerous and pervasive issues the real
estate industry faces today the overwhelming amount of
misinformation in the marketplace. Now t a week goes by
that we don’t hear “someone told me…” or “I once heard…” followed
by the latest rumor or false truth being spread among agents.
It is simple what happens with one of these misconceptions, it goes
from rumor, then the rumor is believed, the belief is repeated and
before long it is accepted as truth. This is only reinforced when the
individual who started the rumor hears it from someone else! Then
it is confirmed!
The reality is it may never have been true to begin with. Following
are the seven most dangerous Short Sale Myths that have been
perpetuated in the market today. With your help we can reverse the
damage that is being done!
Short Sales are Impossible and Never Get Approved
Nothing could be further from the truth!
Are short sales more difficult? Yes.
We have agents who collectively are getting thousands of short
sales approved on a monthly basis. The reality is that while they
do require some extra effort, however with Short Sales and
foreclosures expected to be up to 50% of the market for the
foreseeable future you need understand them, well.
Banks are Not Accepting Short Sales; They are Waiting on a Bailout
Really? We hear this constantly; the reality is
that banks (and the government) are trying to
do anything they can, within reason, to avoid
foreclosing on property. To think that they would
deny a Short Sale in hopes that some future
legislation will pass and pay them for their loss is
preposterous.
The reality is that more banks are aggressively
pursuing Short Sales and agents who understand
how to process them. Freddie Mac® recently hosted
a national training webinar for real estate agents
where they expressly stated the organizational goal
of “eliminating distressed assets through modification
or short sale”.
A Borrower Must be Behind in Their Mortgage in Order to Negotiate a Short Sale
While it is true that initially some lenders wanted a borrower to be
in default before they were willing to consider a short sale—this
trend has almost all together reversed. Today lenders are looking for
verifiable hardship, monthly cash flow shortfall or pending shortfall
and insolvency.
If your client meets these three requirements and is running out
of money to continue paying their mortgage—list the property
immediately! Don’t wait until the countdown clock to foreclosure
has started and you have even less time left.
Buyers are Not Interested in Short Sales and Avoid Them
Again, if we continue to perpetuate this myth it may become
true—thankfully the reality is that today it is not. In fact you may
not have yet however you will soon get a call from a buyer who says
“I only want to look at foreclosures and Short Sales!”
Short Sales and Foreclosures have become synonymous—not with
issues—but with GOOD DEALS. International buyers specifically are
interested in these properties.
Bank Would Rather Foreclose than Bother with a Short Sale
The average foreclosure on a $200,000 property can cost a bank
as much as $30 to $80,000! This is before we take into account the
affect on the bank on their reserve rates, lending abilities, staff and
REO resources or more. If your seller is qualified, rest
assured that lenders are more than ready to work
with you on your short sale now.
Doesn’t it make sense that in a declining market
you would want to sell an asset that is losing money
right now rather tomorrow? It makes more sense to
lenders as well.
There is not Enough Time to Negotiate a Short Sale Before Foreclosure
This is a myth that probably hurts homeowners
the most. Many don’t realize that foreclosure is a
process and there is time. Be aware of the timeframe in your state
and be ready to explain it to your potential clients.
These days many lenders will stall a foreclosure with as little as
a phone call form the borrower letting them know that they are
trying to sell. Almost all lenders will stall a foreclosure with a
legitimate contract, in our view there is time up to the day the ‘gavel
falls’ and the property is lost.
The 7 Most Dangerous Short Sale Myths PANTONE 540 C
© Distressed Property Institute, LLC 2009 800-402-0335 www.cdpe.com Page
© Distressed Property Institute, LLC 2009 800-402-0335 www.cdpe.com Page
“Rumor travels faster, but won’t stay put as long as the truth.”
Will Rogers
One of the most dangerous and pervasive issues the real
estate industry faces today the overwhelming amount of
misinformation in the marketplace. Now t a week goes by
that we don’t hear “someone told me…” or “I once heard…” followed
by the latest rumor or false truth being spread among agents.
It is simple what happens with one of these misconceptions, it goes
from rumor, then the rumor is believed, the belief is repeated and
before long it is accepted as truth. This is only reinforced when the
individual who started the rumor hears it from someone else! Then
it is confirmed!
The reality is it may never have been true to begin with. Following
are the seven most dangerous Short Sale Myths that have been
perpetuated in the market today. With your help we can reverse the
damage that is being done!
Short Sales are Impossible and Never Get Approved
Nothing could be further from the truth!
Are short sales more difficult? Yes.
We have agents who collectively are getting thousands of short
sales approved on a monthly basis. The reality is that while they
do require some extra effort, however with Short Sales and
foreclosures expected to be up to 50% of the market for the
foreseeable future you need understand them, well.
Banks are Not Accepting Short Sales; They are Waiting on a Bailout
Really? We hear this constantly; the reality is
that banks (and the government) are trying to
do anything they can, within reason, to avoid
foreclosing on property. To think that they would
deny a Short Sale in hopes that some future
legislation will pass and pay them for their loss is
preposterous.
The reality is that more banks are aggressively
pursuing Short Sales and agents who understand
how to process them. Freddie Mac® recently hosted
a national training webinar for real estate agents
where they expressly stated the organizational goal
of “eliminating distressed assets through modification
or short sale”.
A Borrower Must be Behind in Their Mortgage in Order to Negotiate a Short Sale
While it is true that initially some lenders wanted a borrower to be
in default before they were willing to consider a short sale—this
trend has almost all together reversed. Today lenders are looking for
verifiable hardship, monthly cash flow shortfall or pending shortfall
and insolvency.
If your client meets these three requirements and is running out
of money to continue paying their mortgage—list the property
immediately! Don’t wait until the countdown clock to foreclosure
has started and you have even less time left.
Buyers are Not Interested in Short Sales and Avoid Them
Again, if we continue to perpetuate this myth it may become
true—thankfully the reality is that today it is not. In fact you may
not have yet however you will soon get a call from a buyer who says
“I only want to look at foreclosures and Short Sales!”
Short Sales and Foreclosures have become synonymous—not with
issues—but with GOOD DEALS. International buyers specifically are
interested in these properties.
Bank Would Rather Foreclose than Bother with a Short Sale
The average foreclosure on a $200,000 property can cost a bank
as much as $30 to $80,000! This is before we take into account the
affect on the bank on their reserve rates, lending abilities, staff and
REO resources or more. If your seller is qualified, rest
assured that lenders are more than ready to work
with you on your short sale now.
Doesn’t it make sense that in a declining market
you would want to sell an asset that is losing money
right now rather tomorrow? It makes more sense to
lenders as well.
There is not Enough Time to Negotiate a Short Sale Before Foreclosure
This is a myth that probably hurts homeowners
the most. Many don’t realize that foreclosure is a
process and there is time. Be aware of the timeframe in your state
and be ready to explain it to your potential clients.
These days many lenders will stall a foreclosure with as little as
a phone call form the borrower letting them know that they are
trying to sell. Almost all lenders will stall a foreclosure with a
legitimate contract, in our view there is time up to the day the ‘gavel
falls’ and the property is lost.
The 7 Most Dangerous Short Sale Myths PANTONE 540 C
© Distressed Property Institute, LLC 2009 800-402-0335 www.cdpe.com Page
Tuesday, February 24, 2009
The Upside of Florida Real Estate
The upside of Florida real estate: 15 market positives
Let’s take a look at some of the opportunities and positive indicators for the future of Florida’s real estate market.
1. Great prices. Statewide, home prices have fallen about 20 percent in the past year. FAR statistics show the existing-home median sales price was $185,400 in the third quarter of 2008, compared with $233,200 in third quarter 2007. By the way, those numbers are still significantly higher than in the early years of the decade. In 2003, the third-quarter sales price was $163,700, which reflects an increase of about 13.3 percent over the five-year period. (The median is a typical market price where half the homes sold for more, half for less.)
2. The time is right. Home sales volumes are rising again – a signal that the market recovery may be underway. In third quarter 2008, statewide sales of existing single-family homes were up 5 percent compared to the same period last year, according to FAR statistics.
3. High inventory levels. Conditions are ideal for buyers to find their dream home. Inventory is plentiful in all price ranges. But as sales volumes increase, inventory levels are likely to shrink. That reality translates into this advice for buyers: Don’t wait too long.
4. Low mortgage rates. Mortgage rates are still at the lowest levels since the 1960s. Lower rates multiply a buyer’s financial power. Even half a percent can make a sizeable difference. For example, on a $200,000 home, half of 1 percent could save the homeowner about $815 a year. Buyers can get more home for the money, which is a perfect scenario for families looking to upsize.
5. Incentives to buy. Federal, state and local housing programs can help buyers make that big purchase. The U.S. Housing and Economic Recovery Act of 2008 includes a $7,500 tax credit for first-time buyers on a home purchased between April 9, 2008, and July 1, 2009. President Obama’s 2009 economic stimulus package promises to enable programs that will assist homeowners. Talk to a local mortgage lender about state and federal incentive programs.
6. A long-term-growth state. Long-term economic and demographic trends continue to favor Florida. By 2010, economists forecast that Florida will be the third-most-populated state in the country. Florida has been one of the 10-fastest-growing states in the U.S. for each of the past seven decades, and often the state has been in the top four, according to Census data. Population growth will continue to provide a foundation for other economic development, such as new jobs and growing incomes. All of these trends are positive indicators for real estate growth.
7. A migration magnet. Even with a slowdown in economic growth nationally, projections call for Florida’s population to return to more normal growth levels of about 317,000 a year between 2010 and 2020, similar to the 1980s and 1990s, said Stan Smith, director of the University of Florida’s Bureau of Economic and Business Research. That’s a lot of new buyers coming into the market.
8. A favored retirement destination. Over the long term, Florida stands to benefit from the migration of the aging Baby Boomer generation, roughly 80 million strong. Demographic studies show that the Sunshine State’s mild climate and outdoor amenities continue to make Florida a favorite retirement destination.
9. A diverse economy. Florida’s economy, like that of the rest of the nation, is impacted by the recession. Some business sectors, though, appear promising for the Florida economy. The healthcare and technology sectors are quickly becoming an important economic force in South and Central Florida. The Milken Institute/Greenstreet Real Estate Partners ranked five Florida communities on its “Best Performing Cities Index 2008,” which ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. Florida’s business climate ranked fourth among executives and sixth overall on “Site Selection” magazine’s 2008 Top State Business Climate rankings.
10. Investment outlook. Every quarter, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a survey of industry executives, market research economists, real estate scholars and other experts. In the fourth quarter 2008 survey, the investment outlook for various types of Florida properties declined from the third quarter of 2008, although it is noted that the investment outlook remains higher than it was at times in 2006 and 2007. “We have 40 pages of comments from our respondents, and although the dominant theme is the disruption of financing, perhaps the second theme, as one person put it, is people being on the sidelines with full pads and helmets just waiting to jump back in,” said director Dr. Wayne Archer, when referencing the 2008 third quarter results.
11. Homeownership has value. Realtors believe – and research supports that belief – that homeownership provides a variety of tangible and intangible benefits to the community and homeowners. Studies show that home equity is still the largest single source of household wealth.
12. Greater sense of well-being. Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal self-esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.
13. Beneficial for kids. Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They’re also shown to have a higher lifetime annual income.
14. Community involvement. People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact more with their neighbors and communities. Compared to renters, homeowners join up to 41 percent more civic and/or nonprofessional organizations, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.
15. An unsurpassed lifestyle. Finally, let’s not forget the things that brought people to Florida in the first place, and will continue to attract them – beautiful beaches, fabulous weather and a friendly business climate, with no state income tax. It’s no wonder that Florida’s combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put Florida in the top three of Harris Poll’s “Most Desirable Places to Live” survey.
Let’s take a look at some of the opportunities and positive indicators for the future of Florida’s real estate market.
1. Great prices. Statewide, home prices have fallen about 20 percent in the past year. FAR statistics show the existing-home median sales price was $185,400 in the third quarter of 2008, compared with $233,200 in third quarter 2007. By the way, those numbers are still significantly higher than in the early years of the decade. In 2003, the third-quarter sales price was $163,700, which reflects an increase of about 13.3 percent over the five-year period. (The median is a typical market price where half the homes sold for more, half for less.)
2. The time is right. Home sales volumes are rising again – a signal that the market recovery may be underway. In third quarter 2008, statewide sales of existing single-family homes were up 5 percent compared to the same period last year, according to FAR statistics.
3. High inventory levels. Conditions are ideal for buyers to find their dream home. Inventory is plentiful in all price ranges. But as sales volumes increase, inventory levels are likely to shrink. That reality translates into this advice for buyers: Don’t wait too long.
4. Low mortgage rates. Mortgage rates are still at the lowest levels since the 1960s. Lower rates multiply a buyer’s financial power. Even half a percent can make a sizeable difference. For example, on a $200,000 home, half of 1 percent could save the homeowner about $815 a year. Buyers can get more home for the money, which is a perfect scenario for families looking to upsize.
5. Incentives to buy. Federal, state and local housing programs can help buyers make that big purchase. The U.S. Housing and Economic Recovery Act of 2008 includes a $7,500 tax credit for first-time buyers on a home purchased between April 9, 2008, and July 1, 2009. President Obama’s 2009 economic stimulus package promises to enable programs that will assist homeowners. Talk to a local mortgage lender about state and federal incentive programs.
6. A long-term-growth state. Long-term economic and demographic trends continue to favor Florida. By 2010, economists forecast that Florida will be the third-most-populated state in the country. Florida has been one of the 10-fastest-growing states in the U.S. for each of the past seven decades, and often the state has been in the top four, according to Census data. Population growth will continue to provide a foundation for other economic development, such as new jobs and growing incomes. All of these trends are positive indicators for real estate growth.
7. A migration magnet. Even with a slowdown in economic growth nationally, projections call for Florida’s population to return to more normal growth levels of about 317,000 a year between 2010 and 2020, similar to the 1980s and 1990s, said Stan Smith, director of the University of Florida’s Bureau of Economic and Business Research. That’s a lot of new buyers coming into the market.
8. A favored retirement destination. Over the long term, Florida stands to benefit from the migration of the aging Baby Boomer generation, roughly 80 million strong. Demographic studies show that the Sunshine State’s mild climate and outdoor amenities continue to make Florida a favorite retirement destination.
9. A diverse economy. Florida’s economy, like that of the rest of the nation, is impacted by the recession. Some business sectors, though, appear promising for the Florida economy. The healthcare and technology sectors are quickly becoming an important economic force in South and Central Florida. The Milken Institute/Greenstreet Real Estate Partners ranked five Florida communities on its “Best Performing Cities Index 2008,” which ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. Florida’s business climate ranked fourth among executives and sixth overall on “Site Selection” magazine’s 2008 Top State Business Climate rankings.
10. Investment outlook. Every quarter, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a survey of industry executives, market research economists, real estate scholars and other experts. In the fourth quarter 2008 survey, the investment outlook for various types of Florida properties declined from the third quarter of 2008, although it is noted that the investment outlook remains higher than it was at times in 2006 and 2007. “We have 40 pages of comments from our respondents, and although the dominant theme is the disruption of financing, perhaps the second theme, as one person put it, is people being on the sidelines with full pads and helmets just waiting to jump back in,” said director Dr. Wayne Archer, when referencing the 2008 third quarter results.
11. Homeownership has value. Realtors believe – and research supports that belief – that homeownership provides a variety of tangible and intangible benefits to the community and homeowners. Studies show that home equity is still the largest single source of household wealth.
12. Greater sense of well-being. Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal self-esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.
13. Beneficial for kids. Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They’re also shown to have a higher lifetime annual income.
14. Community involvement. People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact more with their neighbors and communities. Compared to renters, homeowners join up to 41 percent more civic and/or nonprofessional organizations, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.
15. An unsurpassed lifestyle. Finally, let’s not forget the things that brought people to Florida in the first place, and will continue to attract them – beautiful beaches, fabulous weather and a friendly business climate, with no state income tax. It’s no wonder that Florida’s combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put Florida in the top three of Harris Poll’s “Most Desirable Places to Live” survey.
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