Government incompetence in lending guidelines fuel foreclosure crisis

admin — Fri, 01 May 2009 23:52:47 +0000

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No end in sight for housing foreclosure crisis

Link above goes to an interesting article on “The Hill”. The Alt-A and Option ARM mortgage defaults are starting to happen

Troy Deierling, REO Network Agent

now. Predictions are that this will be bigger than the sub-prime fiasco we are just now emerging from.

One thing that is apparent, this new wave of REO property will be on higher end homes. It’s not fair but maybe this will get the government to finally do something substantive about the mortgage problem. I can tell you from experience that the bailout money going to the banks is not flowing out again in any meaningful way for buyers.

The Feds have done the usual over reaction as well and tightened down lending guidelines so hard that it is VERY difficult to get buyers qualified. Ask any mortgage officer or Realtor. Deals are falling apart all the time due to overzealous underwriting guidelines.

So, to sum up…. We have banks being given money by the government, the government issuing lender guidelines that make it difficult to lend the money and a housing market that continues to sink with growing foreclosures.

If buyers can’t get mortgages, this mortgage meltdown will not be over anytime soon.

Regards,

“When did entering a REO listing in the MLS become ‘marketing’?”
Licensed in the Commonwealth of Virginia
©2009 Troy Deierling

Post from: REO / BPO Real Estate Services - SE Virginia

Government incompetence in lending guidelines fuel foreclosure crisis

RDCPro Designation and the REO Network Agent

admin — Wed, 22 Apr 2009 03:59:13 +0000

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Written by: Troy Deierling, REO Division, EXIT Realty Deierling Assoc. (757) 715-4793 troy@exitrealtyda.com
www.REOHamptonVA.com www.RealEstateWilliamsburg.com www.VirginiaTeam.com

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REO Business: Is it right for you?

REO is the buzzword amongst Realtors of late, at least the ones still standing! I’m aware of a great number of agents trying to break into the business. Unfortunately, it is a specialized skill that can not be acquired by simply signing up for BPO’s. The fastest and perhaps the best way to learn the REO business is to apprentice for a strong REO Broker. No Asset Manager has the time to teach the business to Agents. They are swamped and need our professional help right now. We learned quite a bit by joining the NRBA back in 2001. They are not taking members now so you’ll need to find alternatives.

Agents also need to understand what they are getting into. This is not the place to wear an Armani suit and roll around in a Mercedes. For me, it’s Levi’s and a 7 year old Durango. Keep it low key when you’re out there taking pictures. If you have a low “gross out” threshold, you are not going to like this industry. It’s not glamorous, it takes a lot of hard work and discipline. You have to be organized. Miss an Asset Manager deadline and you may not see any business from that client again and they do network with each other.

REO Certifications:

Susan and I have been involved with Real Estate Owned (REO) since 2001. The market took a downward turn after the horrific events of 9/11 so we branched out of our successful plain vanilla residential practice and into REO.

With the upturn in foreclosures and the economic downturn, I felt it was time to sharpen up my skills for this segment of the Real Estate Market. REO’s present their own unique challenges and rewards. I and our other REO Division members attended a 6 hour REO Basics Course presented by EXIT Realty’s Jeff Lobb, live, interactive and online. I was actually doing two BPOs during the breaks so it was a good day for it. It’s great to get a refresher and catch up on new trends in the REO foreclosure marketplace.

I also looked into some of the REO and BPO designations available. Make no mistake, plenty of bad (expensive) training is out there but the RDCPro and the 5 Star courses seem to be well reviewed and accepted within the industry. I started the RDCPro Designation (REO Default Certified Professional) at www.defaultschool.com. The first course is “REO Best Practices” and is a comprehensive training module on REO listing management. Cash for keys, winterization, building a contractor team and much, much more. Most importantly, doing what you must to be on time with all work. Valuations are touched upon but the second course “Advanced Evaluations” is an intensive training on proper real estate valuations (typically referred to as BPO’s or Broker Price Opinions). I’m about 3/4 of the way through the second course. What I’ve gained most from the course are some of the finer points that I either did not know or had overlooked in the past. I’m very glad I’m taking it.

I’ll report back if this has helped in getting more REO assignments and BPO’s.

“When did entering a REO listing in the MLS become ‘marketing’?”
Licensed in the Commonwealth of Virginia
©2009 Troy Deierling

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Post from: REO / BPO Real Estate Services - SE Virginia

RDCPro Designation and the REO Network Agent

REO / BPO Real Estate Services - SE Virginia » REO Network

Government incompetence in lending guidelines fuel foreclosure crisis

RDCPro Designation and the REO Network Agent

REO Business: Is it right for you?

REO Certifications:

Service Areas by ZIP Code: