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REO industry

REO industry

On November 20, 2014 I was included in a webinar that was hosted by the President and CEO of The Five Star Institute regarding the REO industry. Mr. Delgado has vast knowledge of the REO industry and his take on REO’s for 2015 is that they will increase 2%-4% nationally from where they are today. Right now according to his figures at the end of the 3rd quarter of this year the delinquency rate was 6.9% and he sees it decreasing to 6%. The normal rate of delinquency is 3%-4%. In March of 2013 it was projected by some that the immediate danger of foreclosures would be 7.4 to 9.3 million, the actual shadow inventory in Jan 2013 was 2.2 million and in Jan 2014 it was 1.7M, down 23%. As you can see by the two HAMP charts (courtesy of Special Inspector General Troubled Asset Relief Program) the HAMP program had good intentions but it’s not working; Once the year six comes the payment starts to climb due to the adjustable rate mortgage—then you pay the taxes, insurance etc besides. Ouch! Right now according to the chart furnished by the Mortgage Bankers Association, the foreclosure starts are close to what they were in 1995 so they are not going away but hopefully will not rise back to what they were in the recession of 2009-2011 and the chart from the National Association of Realtors show that the reported foreclosed sales this year continues to slide. Finally the chart showing the supply and demand seems to be slowly improving over the recession years but not enough yet to breathe...
My Listing Expired…Now What?

My Listing Expired…Now What?

Having your listing expire is frustrating to say the least. The way the Freeport IL area real estate market is right now, there are a lot of homes that don’t get sold by the end of their listing period.    The unfortunate fact is that there are about 342 homes and condos for sale in Freeport.  On average about 25 or so get sold each month.  I wish the news was better, but it is what it is.  The homes that sell are the ones that are correctly priced for the market, area, and condition and that are marketed aggressively by the listing agent.    Ok, your home listing has expired so now what do you do. Option A:  Re-List the House If you feel that your agent did a good job, by all means re-list with your original agent.  If they gave you good advice (did you take it?) and worked hard to market the home, you’re better off staying with them and extending your listing.  They already know your home, your financial situation, and your personal goals. If you feel that your real estate agent is partly to blame for your house not selling, then find a new one. Get the real estate agent that you feel will do the best job marketing your home, not based on what they say they will list it for. We don’t decide what houses will sell for.  Buyers do.  Reaching the right buyer is critical, and marketing is how that happens. Speaking of listing price, whichever agent you choose to re-list you’ll need to take another look at your bottom line and your asking price.    With the market...
Seller Tip #1

Seller Tip #1

I get so many questions from home sellers – from what repairs they should make, to what to do with the dog during showings, that I’ve decided to begin a series on seller tips… Tip #1 – Depersonalize Your House When talking with real estate agents, have you noticed that when they talk to you about selling your home they refer to it as a “house”, but when talking to you about buying a home they refer to it as a “home”?   Well, there’s a reason for this. Buying real estate is often an emotional decision, but when selling real estate you need to remove emotion from the equation. You need to think of your house as a marketable commodity. Property. Real estate. Your goal is to get others to see it as their potential home, not yours. If you do not consciously make this decision, you can inadvertently create a situation where it takes longer to sell your property.   The first step in getting your home ready to sell is to “de-personalize” it. The reason you want to “de-personalize” your home is because you want buyers to view it as their potential home. When a potential homebuyer sees your family photos hanging on the wall, it puts your own brand on the home and momentarily shatters their illusions about owning the house. Therefore, put away family photos, sports trophies, collectible items, knick-knacks, and souvenirs. Put them in a box and store them away…far, far away…. Stay tuned – more tips to...
Thinking of Selling By Owner?  Here’s What An Agent Can Do For You

Thinking of Selling By Owner? Here’s What An Agent Can Do For You

A lot of people try to sell their homes as For Sale By Owner, and some do get the home sold.  Staticstics show, however, than in many cases the sellers would ultimately have been better off in the end to have listed their homes with an agent from the start. Top 9 Reasons For Real Estate Representation: To Optimize Asking Price.Properly pricing your home is perhaps the most crucial factor in making a sale, and without access to all the data it can be really difficult.   They’ll compare your home and your asking price to similar homes on the market. If your price doesn’t stack up, they may reject it and move on to the next listing. And the longer your property sits on the market, the less marketable it becomes because buyers begin to wonder if something is wrong with it. Pricing your home too high may increase the time your home spends on the market. That’s why your first step in determining the right price for your home is to have an experienced real estate professional prepare a comparative market analysis (cma) report for your home. The report provides details on recent sales of homes similar to yours, as well as the asking price of homes currently on the market. Your agent will then balance that information with other factors such as location, condition of your home, special interior or landscaping features, age of the house, and your time frame to determine a fair and competitive asking price. To Get Your Home Ready to Show.  Is part of an agent’s job to know what buyers want to...

Are Home Warranties Worth the Money?

If you own your home or are considering purchasing a home you might want to consider buying a home warranty. Home repairs can often run thousands of dollars and a quality home warranty could save you from having to pay costly repair bills. What is a home warranty? Home warranties are a protection plan for certain components of your home. You buy coverage for a year at a time for between $370 and $650 depending on the company and the coverage selected. The coverage can vary between companies so read the policy carefully to determine what is being covered. Typically, a home warranty will cover appliances, water heaters, furnaces, air conditioning, some electrical and some plumbing. Additional coverage can be purchased for such things as garage door openers, water softeners, freezers, well pumps, swimming pools and roof leaks. Some companies now offer options for such things as improper installations, pre-existing conditions, code violations and removal and disposal of old equipment. After the initial purchase of the home warranty you will pay a deductible for each service call you have. The deductibles can range in price from $55 to $150 depending on which company you use. If you have a need for service you call an 800 number and the warranty company will send a repair person to your home. You cannot just call a repair person yourself and expect to get reimbursed for the repair. Home warranty companies have contracts with local repair people all over the country and you must use the repairmen that they send out. Some companies are better than others when it comes to response...

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