Speakers:

 

ForeclosureRadar

Schubb

 

Creating new efficiencies is the key

 

Very small percent of homes current underwater (some 25 million) or homes with delinquent mortgages are current in the foreclosure process

 

Situtation is going to get worse!

 

That means

 

Minimal ongoing governmental change

 

More informed home owner

 

Minimize losses

 

A more timely process

 

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The amount of time to get through the foreclosure process is taking more time

 

Need to adjust mortgage payment

 

Should not need to wait six weeks to get a decision on a short sale

Six months not uncommon, too

 

Pre-foreclosure

Auction

REO

 

Solutions:

Give owner option to use bank asssigned agent, who keeps listing through REO?

Give owner incentive to help get property sold?

 

90% of short sales NOT listed?

 

Average foreclosure in CA discounted by 40%

 

Over $1 BILLION sold on courthouse step, with NO way for agents to profit

 

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Big banks all seem to agree that short sale is best scenario

Unfortunately, no one can figure out a way to make it work very well

 

If lenders gave home owner larger incentive to sell at a loss, would happen more quickly

 

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Problem:  The market lacks systemization

 

Laws very by state

Availability of data varies by county and vendor

Process varies by lender and vendor

Short sales approvals are too difficult to obtain

REO assignment scattered

Valuations and appraisals

 

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Why should I pay you when we can get the data for free?

 

All info is hand entered

 

Offers no longer presented through

Presenting offers through a computer system

Asset managers

 

Large bank typically outsourcing to multi-companies

Each vendor does things differently

 

ResNet

REOTrends

LPS

IndyMac

Fannie Mae

 

Even asset managers within the same company doing things differently

 

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Problem: The market lacks transparency

 

No idea who really owns the loan

 

REO broker doesn't talk to sellers

 

Poor data availability

 

How many not paying and who?

 

Current foreclosure status unclear

 

REO inventories and what's listed unclear

 

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Problem:  Pre-foreclosure minefield

 

Few properties EVER listed, even fewer close!

 

Sellers are often discouraged by agents

 

Banks are understaffed

 

Banks lack local market knowledge and rely on point-in-time BPO's ordered online with no knowledge of broader local conditions

 

ForeclosureTruth?

 

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#1 problem for lenders is that they do NOT trust real estate agents

 

Zillow added more to 

 

Gives everyone a bad reputation

 

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Problem:  No standards in REO

 

Lenders have different approaches and requirements

 

Most lenders outsource to multiple companies

 

These outsource companies do things differently

 

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What do we do?

 

Let the market be the market.

 

Don't know anyone personally who has had a loan modified

How many were principle loan

Government money was supposed to help 4 million home owners

 

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Q&A:  

 

As long as the government can think of ways to keep foreclosures from happen, won't happen.

 

We don't have the will right now to foreclose on one million homeowners, after a year or two of not making a

 

$1-2 billion per month JUST in CA!

 

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Reform agenda:

 

1.  Outlaw conflicts of interest

 

2.  Transparent bid mechanism

http://www.N-Play.com