In an attempt to broaden the market for refinances (due to the fact that many who have the need do not qualify) Fannie Mae has made the following announcement -
This change is in an effort to increase the population of eligible borrowers for the Refi Plus manual and Desktop Underwriter options and provide more lender flexibilities which include:
As quoted from Fannie Mae' recent published info -
In the past, we have all heard and seen attempts to put the industry "back on track" with much fewer then expected results. The many recent announcements within our current administration have made several statements re: people that are "behind at least 3 payments" can benefit. Many of us in the industry have found that this has done very little to help. Others may disagree. This is not meant to cause a debate about the current administration but rather to get people thinking.
If you have seen areas that have helped you with your continued success, please feel free to share and best of luck.
Doing what we did in years past simply does not work in today's market. Are you frustrated with lower rates, lower home prices and slumping sales? In this market, sales should be UP! How to do it is the question.
Please keep in mind that the following is simply based on statistics alone. Nothing re: "sub-prime" borrowers that follows is meant to be negative towards "sub-prime" borrowers but statistical facts.
The straight forward approach that we all used when the market was going strong is simply not going to work today. Don't allow logic to come into the picture. If you understand what's going on in today's market, you know that logic plays a very small part. The time is now to re-think your marketing strategy.
It's estimated that the number of foreclosures that have occurred to date are, for the most part, borrowers who were statistically headed for foreclosure anyway. The 2nd wave of "bad" news is on the way. People with good credit and income are now facing the same fate. They do have options. Options that can be found outside the normal way of thinking.
The "2nd" wave of possible foreclosure bound borrowers are quite different from the "1st" round. These borrowers have good income and credit. They don't have a track record of missed payments and are statistically not coming out of a "sub-prime" mortgage. These borrowers can get help in more ways then most think.
The problem with the "2nd" round is, in many cases, more simple and controlable then those that came before them.
Again, this is not in any way intended to put any negative light on the "sub-prime" borrowers but rather identify the difference between the two and make some changes.
Statistically, many involved in the "2nd" round have taken a beating with current 401K's or investments. We can and have turned many of these "2nd" round borrowers into investors. When the numbers work, we have taken these borrowers and re-financed the current mortgage they have. We then either take out equity or money that has not been "working" for them and they have taken advantage of the much lower home prices that we all see today.
If you simply sell a home and buy another one, you are going to take a beating on the home you sell which makes the new pruchase "relative" and not that great of a deal. If you are simply buying a home without selling one, the benefit is far greater.
In a nut-shell (that's funny, this is a long nut-shell) if you spend more time on investor sales then on "new" sales, your numbers will go up. If a borrower has a home that they want to sell in this market and take a $50K hit, then buy another home that has taken a "hit" its not a great deal. If your client is only looking to buy and not sell, the costs savings are much better.
With home sale slightly up and new home sales down, its time to re-think and focus on the investor. We are doing this and when the numbers work, so does the deal.
You can do it on your own or we can do it together. Either way, best of luck and hope this helps in some way.
We've all heard it before.
Why not take this time when things are slow to re-think the basics. No matter what you're selling, the basics are usually the foundation to all success. As we get caught up in "life" it seems the first things that go are the basics.
I recently noticed during a meeting one of the customers in the room was a "watcher". They looked at everyone. Body movements and how they spoke. Everything. It seemed that everyone in the room was "interviewing" for this person and didn't even know it.
We have two ears and one mouth so listen twice as much and talk less. All things we have heard before right? Well after this meeting, I spoke with this person and asked him what he was "watching"? He says to me, "I was looking for the Realtor I am going to use to list my home and help me find a new one!
Wow, pretty cool stuff. How we act in normal day to day life can have a HUGE effect on not only our personal life, but professional as well.
The "needy" looking people were glossed right over, the ones that were "stuffy" "didn't get a second look" he told me. "It was the 2 that looked as if this market was on fire that got my attention. They were confident, self assured and looked like they were movin-on!" (as it turned out, these two people were in the bottom half of the"sales leaders") - One very new and the other, a veteran, was out of the "game" for almost a year and was making A"come back"!
If any of you are single, or have gone through a divorce you may relate to this. When you're out on "the hunt" looking for a mate, have the spear in your hand and you're aggressively hunting - have that look in your eye................. usually nothing happens. It's when you put your guard down, stop the "hunt" and just be you that something usually happens. Well, the same holds true in this case. The term "fake it till ya make it" came to mind.
The customer is scared in this market. They look to us as they would a doctor when they're ill. We know our market and have the best interest of the customer in mind. We're educated! We follow the market as it pertains to us!
The media has turned our customer into a timid one. We're here to give them Real Estate "therapy" and they need it.
So next time you're out and about, stop and think how you come across to others. Do you look like the successful Real Estate professional they are looking for?
Sometimes, when you're living your life, you too will be observed by others and not even know it. You may be interviewing for the next listing or sale that could really help about now and not even know your being interviewed.
As always, thanks for reading!
Jeff
Despite what is happening in the market today re: our industry, industry professionals still maintain that home ownership is still the best investment Americans can make. Despite falling prices overall it is still the best investment you can make.
Many homeowners think that wealth accumulation is to re-fi out equity every few years and that way of thinking simply does not work " Taking out cash on constant refinances is not the route to wealth".
As it seems at this very moment, the bail out is going to happen and Wall Street seems to think the same way. We may be a long way off from getting this thing fixed, but it appears as of now, that the powers that be seem to think its going to happen.
What that means to people like us is this - more waiting. Waiting this thing out, if possible, should end up paying off.
Sure many of you may disagree and rightfully so, but if the trend on Wall Street proves to be correct, we may just very well be on our way - Our way out of this mess.
We can all hope!
Thanks for reading
As always, please check out www.easywaytoshop.com and request to be added to the directory, Its free! Its good business! Space is limited.
I was at the foreclosure auction on Fri and something came up that I have not heard in a long time.
In past years, a typical foreclosure (under certain circumstances) the person being foreclosed on had the right to purchase the home back within 1 year. I was under the impression that at the foreclosure sales at the court house, this was no longer the case.
In speaking with a person that recently attended a Sheriff's sale who bought a house, they were told that the person being foreclosed on does in fact have the right to purchase the home back within 1 year.
The obvious questions started to pop in and out of my head.
What if the buyer sells the house within 1 year? Makes a profit then the person who lost the home wants it back within that 1 year. They pay what it sold for at auction. The new buyer sells for a profit. What happens to the person that bought the home from the person that bought it at the Sheriff's sale?
Does anyone have any insight on this at all?
I am always looking to keep on top of the changing rules and regulations and any help would be appreciated.
As always, thanks for reading and check out www.easywaytoshop.com and request to be added to the directory. Its free! Its good business! Space is limited to 25 vendors per profession per state.
Loan Network, LLC - www.loansnjobs.com Customer service and Hard to place loans have always been our speciality - even in this market! Of course, we like the easy one's as well!
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