A new property we are marketing...

If you'd like to see how we can use this marketing method, along with our other cutting edge marketing to get your home sold for top dollar, call me today...561-602-1258.

Inflation? Deflation?

Every day, from cable news to the local paper, we are told that inflation is coming...then the next expert says we are in a deflationary spiral...what does it all mean and whom do we believe?

It would seem that everyone is right...here is the best and easiest to explain/understand definition/comparison-contrast of inflation and deflation:

I've seen some quotes equating to deflation as the things you own, and inflation as the things you need. Close, but the real explanation is more like this:

Prices declines are occuring in goods/services sectors backed by debt resulting from contracting credit...things that you would normally use a loan/credit to buy (deflation). Price increases are occurring in goods/services sectors acquired with money resulting from increasing money supply (inflation), (things like food, utilities, gas for the car, etc ).

Ben can print money 'til the cows come home, showering every citizen with $10k, $100k, $1m per year/quarter/month. All that will happen is a direct escalation in prices of assets not backed by debt. Price increases for items backed by debt will not resume/recur until there is an underlying organic demand for credit and a corresponding easing in credit terms (inflation). That is, the so-called final (ie private) demand.

And there you have it...

HAFA explained

What is HAFA?
The Home Affordable Foreclosure Alternatives (HAFA) Program is a government-sponsored initiative led by the US Treasury Department, administered by Fannie Mae with Freddie Mac as compliance agents, and executed by participating lenders to help homeowners avoid foreclosure, specifically through short sales or deeds-in-lieu.

Who can participate in the HAFA program?
The participating servicers must assess a borrower for HAFA if they request to short sale or deed in lieu under the terms of HAFA.  They must also consider a homeowner for HAFA within 30 days of not qualifying for a HAMP (Home Affordable Modification Program) modification, having not successfully completed a HAMP trial period, or having missed at least 2 consecutive payments on a HAMP modification. If a homeowner had asked the servicer to allow them to short sell under the terms of HAFA, the servicer is required to first offer them a loan modification or retention program first.

Can sellers trying to do a HAFA short sale also be asking for a HAMP modification?
The two cannot be done at the same time. It is a requirement of HAFA that a homeowner is not participating in a HAMP program.

Does the homeowner have to live in the property to be considered for HAFA?
“The property is the borrower’s principal residence, except that the property can be vacant up to 90 days prior to the date of the Short Sale Agreement (SSA), Alternative Request for Approval of Short Sale (Alternative (RASS) or DIL Agreement if the borrower provides documentation that the borrower was required to relocate at least 100 miles from the property to accept new employment or was transferred by the current employer and there is no evidence indicating that the borrower has purchased a one- to four-unit property 90 days prior to the date of the SSA, Alternative RASS or DIL Agreement.” [From the Supplemental Directive 09-09]

What loans are not eligible for HAFA short sales?
Fannie Mae, Freddie Mac, FHA, or VA

What lenders are participating in HAFA?
As a rule, lenders already participating in the Home Affordable Modification Program (HAMP) are participating in HAFA. For a full list of servicers participating in HAMP, visit Making Home Affordable Participating Servicers List.

When does HAFA expire?
HAFA is set to expire December 31, 2012. Like other government initiatives, if the program is successful, it may be extended.

I heard that Approvals only take 10 days.  Is that so?
This is a misconception and a truth.  HAFA speeds up the short sale process by putting in distinct timelines.  One such time-line is servicer response to a completed application no later than 10 days after submission. The longest amount of time you should expect a HAFA short sale to take is 5 months.  At the servicer’s discretion, the program can be extended up to 12 months. 

Do HAFA short sales require an agent list the property?
YES.  All HAFA short sales must be listed by an agent.

How is HAFA different from a regular short sale? There are quite a few issues that differentiate a HAFA short sale from a non-HAFA short sale, including: 1) set timelines, 2) pre-approved selling prices, 3) payments to the sellers upon completion...

Do the seller’s get an incentive? YES.  HAFA will provide sellers up to $3000 for Relocation Assistance if they complete the HAFA short sale or deed in lieu process. Only one payment per household is given.

Who completes the Short Sale Agreement ?
This form is completed in cooperation with the listing agent so that the servicer knows that the agent agrees to the HAFA program terms and conditions.

Are their tax and credit consequences from a HAFA short sale or deed-in-lieu?
The difference between the remaining amount of principal owed and the amount that the servicer receives from the sale must be reported to the Internal Revenue Service (IRS) on Form 1099C.  It will be reported as debt forgiveness that could be taxed as income. The $3,000 Borrower Relocation Assistance could also be taxable.  Sellers need to be aware of the income tax consequences and/or derogatory impact on credit that may come with a short sale or deed-in-lieu.  Sellers should always consult a tax accountant, the IRS and appropriate legal counsel to determine potential liabilities and to explore other options.

CLICK ON THE HAFA BUTTON BELOW TO SEE IF YOU ARE ELIGIBLE TO PARTICIPATE IN THE HAFA PROGRAM

This blog is designed to provide information in regards to the subject matter covered.  The Jackson Realty Group Inc, any of its founders, employees, contributors, staff, and affiliates are not to be held liable for information shared.  Readers are encouraged to verify all information posted and use at their own risk.

Mortgage applications at a 13 year low...so why is that important?

The Mortgage Bankers Association reported that demand for loans to purchase U.S. homes sunk to a 13-year low last week, and refinancing demand also slid despite near record-low mortgage rates. Requests for loans to buy homes dropped 3.1 percent in the week ended July 9, after adjusting for the Independence Day holiday, to the lowest level since December 1996, the Mortgage Bankers Assn. said....Rock-bottom borrowing costs are helping borrowers with pristine credit to buy and those who still have equity in their homes to refinance.

Take a look at this statistic and chart below: The refinance share of mortgage activity remained constant at 78.7 percent of total applications…so, at a 13 year low number, only 21% of the mortgage applications were for new purchases! On an unadjusted basis, the volume of purchase applications is 43% lower than the same week last year!



If even at sub-5% rates buyers are not interested, what’s going to happen to buying interest if (when) rates go up?

• Unemployed people do not buy homes.
• People who have had their hours or salary reduced 20-30% do not buy homes.
• People with a credit score of 599 or less (25% of the population) do not qualify to buy a home.
• People who lost 30% of their home equity can not sell their existing home to buy a new one.

Where I see the most activity (and a lot of multiple offer situations) is in the sub $150k range…where you can buy and have payments less than a comparable rental. Maybe this is what will happen going forward in all price ranges…activity and competition will greatly increase when the home price/mortgage rate equation delivers monthly payments at or close to what it would cost to rent a comparable home. And, it does not, necessarily have to come from lower prices or lower interest rates….if rental rates increase, that will be the ‘flip side’ of the equation. Rising rental rates, in my humble opinion, are quite possible given the scary statistic of sub 599 credit score Americans. Going forward I can see many, many more people throwing in the “credit score towel”…we will have a decade of renters (and this could raise rental rates)…income reduction, job loss, foreclosures, bankruptcy…some times up to ten years to clear/restore your credit without taking affirmative credit restoration steps.

If you’d like to discuss how this all affects your plans to sell or buy, please give me a call on my direct line at 561-602-1258.

Thanks for reading,
Steve Jackson

A 4th of July gift for you...

How about starting a 4th of July family tradition that doesn't include eating meat cooked outdoors or lighting fireworks?

Below I have given you 4 links to 4 very important documents.

Why not get the family/friends together and read and discuss what is actually behind this holiday. Certainly not all 4 at once...but maybe read the short Declaration of Independence before everyone starts dinner?

1. The Declaration of Independence
2. Constitution
3. Bill of Rights
4. Amendments to the Constitution

Enjoy the holiday...and be safe!

Steve Jackson

Disastrous home sales report - July 1, 2010

The experts expected home sales to drop once the homebuyer tax credit lapsed at the end of April, but the depth of the decrease was shocking (only to the “experts”).

According to the National Association of Realtors (NAR), pending home sales fell a whopping 30% in May. Their index, which measures signed sales contracts but not closed sales, plunged to 77.6 from 110.9 in April. It's even off 15.9% from a year ago when the nation was barely emerging from the recession.

The pending home sales report is a disaster," said Mike Larson, a real estate analyst for Weiss Research. "Sales fell off a cliff after the tax credit expired. It's the biggest monthly decline ever and the index is at its lowest level since NAR began tracking it in 2001."

(As expected)…Lawrence Yun, NAR's chief economist, downplayed the damage a bit. According to him, customers rushed into deals to claim the credit, borrowing from May sales. Once the economic recovery comes into full swing, housing markets will heat up. "If jobs come back as expected, the pace of home sales should pick up later this year," said Yun, "and reach a sustainable level of activity given very favorable affordability conditions."

The question is when -- or if -- the job market will ever bounce back.

"We're not creating jobs," said Larson. "The housing problems now are being driven by broad economic problems."

Disastrous home sales report - Jul. 1, 2010

Senate Passes Homebuyer Tax Credit Extension « HousingWire

Wednesday, June 30th, 2010, 11:34 pm

Yesterday, the House pushed through a three month closing extension of the homebuyer tax credit.

Tonight, the Senate unanimously approved the bill — leaving the President to ratify the provision by signing it into law, as early as tomorrow morning.

"I thank my colleagues for joining me to pass this important extension and giving homebuyers in Nevada and around the country the opportunity to purchase their first home," said Sen Harry Reid (D-NV), in a statement following the bill's passage.

"In addition to helping thousands of families experience the American dream, this successful and popular program provides a much needed boost to Nevada's housing market and economy."

The deadline for the tax credit was midnight tonight but only if the mortgage went through, so with Obama's signature, it would have been possible that no contracts currently under offer — but unable to close — would fall through the cracks with the extended deadline.

The Senate approved provision will give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000.

If the President signs the bill into law tomorrow, it is unclear if the provision will apply retroactively to deals that close on Thursday, July 1.

Senate Passes Homebuyer Tax Credit Extension « HousingWire

Strategic Defaults UP – Loan Modifications Down

C-Span is a wonderful thing.  Just listen or watch - The House Oversight and Government Reform Committee hearings yesterday brought in some interesting statements from CEO's and Presidents of Bank of America, JP Morgan/Chase and others.

As I reported in my article WALK AWAY FROM THE PROPERTY - STRATEGIC MORTGAGE DEFAULTS GROW TO 26%, that figure is now updated by the University of Chicago and Northwestern University researchers for the previous figures - a year later the strategic default rate is up another 10%!

Why is this happening?  Industry leaders blame the government programs.  The HAMP program has 800 specific requirements for the borrower  - 800 !!!  No wonder it takes 4 to 6 months for a person to go from trial modification to permanent modification.  Numbers for successful conversions under HAMP is running about 10% of trial modifications.

What makes a borrower ineligible for HAMP or other (proprietary) modification programs of the lender?  Testimony today said that government regulations of easy credit made the banks make loans to people that could not afford the mortgages they got - and this is now the end result - these borrowers still do not qualify even for a modification!  A big reason for rejection - trial mod recipients don't pay the reduced payments or don't provide necessary documents.

Modification requirements always now require real, as opposed to "stated", income revelations.  Many borrowers don't give the required information on their "real" income to qualify for the modification.  Why?   Testimony suggested being afraid of the IRS, or being intimidated because of perhaps false documents in the beginning, are other reasons.

I loved the comments from  Rep Elijah Cummings - his staff sent documents on behalf of constituents to a lender and those documents got "lost" - several times!  And he had proof that payments were made to the lender and the lender failed to acknowledge the payment even when the Congressman's staff showed the lender the cancelled check.

When asked what is the solution - lenders said there needs to be a "dignified transition".  What is THAT?  A "dignified transition" is making homeowners into renters! " Not all homeowners should be owning a home".  Well, I cannot disagree with that, but it just does not sit well.  So they suggest that short sales be the "dignified solution".

Maybe Washington is listening and even feeling the pain.  Keep watching and tell your Washington representatives what you think needs to be done.

Copyright 2010 Richard P. Zaretsky, Esq.

Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make.  This article is for information purposes and is not specific advice to any one reader

 

The 'experts' wrong?...what a shock!

May existing home sales plunged far below expectations, coming in at an annualized -2.2% rate, compared to consensus expectation of +6.0%...This is the second worst monthly drop in history, and shows just how very wrong economists are, and how they will all have to revise their outlooks lower...

Also, in the 1st quarter of this year, 96% of originations were backed by one of the GSE's (Fannie/Freddie). i.e. there is still no viable mortgage securitization market outside of the government.

Animal House, Belushi and Housing?

Seems like John Belushi's classic quote from Animal House: "Over, did you say over, nothing is over until we decide it is!" is the mantra for a few high profile real estate, mortgage and financial industry execs. Below are some excerpts from very recent interviews and reports:

• Stan Humphries, chief economist of Zillow: “Most consumers tend to be overly optimistic about what the future holds,”..."the housing recession is not over, prices are continuing to fall"..."We think the bottom is going to be a long and flat affair"...“Foreclosures are increasing and we will reach a peak in foreclosures later this year. These foreclosure rates won’t recede quickly. They’ll stay high.” ...referencing the recently expired tax credits, he said “We will see payback in July and August,”..."as long as unemployment is extremely high (8 percent to 10 percent, or higher), and large numbers of homeowners (23.3 percent) are underwater (almost 49% of all mortgage holders in Florida), foreclosures will stay high. Also, there are as many as 7 to 8 million housing units in the “shadow inventory,” many of which will turn into foreclosures as well... there are also 5.3 million “sideline sellers” just waiting to jump into the market and list their properties..."If you really want to know when the housing market will return to normal, the real estate experts and economics at my conference are talking about 2013 – or longer".

• This from the 'always optimistic' National Association of Realtors: Twice as many homes were added to the market as were sold in April, according to the National Association of Realtors...the housing inventory is back to where it was in 2009, which is lousy news for home price appreciation.

• Michael Fratantoni, the Mortgage Bankers Association’s vice president of research and economics: "Overall mortgage application volume, which includes loans for purchases and refinancings, dropped by 12.2 percent during the week ending June 4, compared with the previous week...“Purchase applications are now 35 percent below their level of four weeks ago, as homebuyers have not returned to the market following the expiration of the homebuyer tax credit at the end of April".

• James J. Saccacio, CEO of RealtyTrac:  "The numbers in May continued and confirmed the trends we noticed in April: overall foreclosure activity leveling off while lenders work through the backlog of distressed properties that have built up over the past 20 months. Defaults and scheduled auctions combined increased by 28 percent from 2007 to 2008 and another 32 percent from 2008 to 2009 — creating a build-up of delayed bank repossessions. Lenders appear to be ramping up the pace of completing those forestalled foreclosures even while the inflow of delinquencies into the foreclosure process has slowed.” This is precisely the event that CNBC's Diana Olick was warning about a month ago. Housing is about to take fresh new turn lower.

• Michael Pento, Chief Economist for Delta Global Advisors: "We need to sell assets, and we need to allow the deleveraging process to consummate. We are going in a wrong direction and that's the double dip recession is virtually assured. 2008 taught us very clearly that decoupling is a dodo bird's philosophy. The US is headed down. You'll see home starts, permits, sales plummet in the next few months, that's going to add more supply to the housing market..."

Sorry for the gloom and doom. But my job here is to educate my readers and present the information that may not be getting to them in the newspapers or on cable. I try to help my clients and readers make the best housing-related decisions based upon ALL of the pertinent data...

As always...thanks for reading.

Steve Jackson

Last 30 days of sales in Smith Farm

There were four sales recorded in the past 30 days...here are the details:

The sales prices ranged from $210k to $310k

1. 7451 Sally Lynn was listed for $399k and sold as a short sale for $310k. The home was aprox 3300 sq ft under air, on a lake, in a cul-de-sac, with a pool...5 bedrooms, 3.5 baths, 2 car garage
2. 7526 Oak Grove, a 738 model,  was listed at $284k (originally $299k) and sold at $274k. No lake/pool...not a short sale or foreclosure
3. 6546 Stonehurst, a 1609 model, was listed at $259k and sold at $254k. No lake/pool...not a short sale or foreclosure.
4. 7642 Oak Grove, a 739 model, was listed at $220k (originally $250k), and sold at $210k. Lakefront...Short sale

FYI: the above properties were not necessarily listed or sold by us...we're just keeping everyone up to date on the community market activity.

What is everyone searching for?

Recently there has been a ton of good news being reported in the real estate segment. Resale home sales were up huge...new home sales were up big too...every talking head is predicting the end of the housing slump. Not so fast. I have done some research regarding some little publicized web traffic statistics, and that tells us..The Rest Of The Story!

The company, Hitwise, a web-traffic analysis company, recently published the following trend chart:

What this chart reveals is that year-over-year visits to websites in the Real Estate category are down 22% for April 2010...that is 11 consecutive months of traffic decline for visits to Real Estate For Sale sites! It is painfuly obvious that buyer interest is declining. Now, lets look at another Hitwise chart:

The above chart from Hitwise reports that visits to “Home and Apt Rental” websites are up 45% in April 2010 year-over-year, and that represents the tenth consecutive month of increases!

Finally, Hitwise reports: “The most popular term ranked by the overall share of search clicks is ‘apartments for rent’, which has increased 162% for the 4 weeks ending May 8, 2010 when compared to the same time period 2 years ago.” For the Home and Apt Rental websites, visits have increased year-over-year for the past 10 months. 

Now, every real estate agent will tell you that 90% or more of all homebuyers use the Internet during the home purchase process... So, a 22% decline for traffic to real estate sites, combined with 45% increase for rentals suggests that the market demand for housing sales might be a whole lot softer, and headed in a different direction, than widely reported economic data indicates.

People will choose to rent for 2 main reasons...they can't buy a home or they don't want to buy a home.
A large number of people today who CAN'T buy fall into a two categories: 1) No job/job or income instability, 2) credit issues. Hopefully, the job situation will improve consistently going forward, but the number of people with credit issues will most likely continue to rise. Think about the statistic in this following chart: (look at the very left bar in the graph)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The state with the greatest percentage of people at least 30 days late on their mortgage is...FLORIDA! Over 1 out of every 4 people with a mortgage is 30 or more days behind.
 
It is common knowledge that missing mortgage payments will deliver a pretty significant hit to ones credit score. And with the abject failure of the Govt. HAMP (loan modification) program, it is a fairly safe bet that a large number of people currently behind on their mortgage will end up eventually either losing their home in a foreclosure action or successfully completing a short sale (the much better alternative). In either case, these folks will not be purchasing a homeduring the next 2 years, or more. These are ones who can't buy a home.
 
Then you have large segment who still believe that it is not a good time to buy..they are renters by choice, and their numbers are growing daily.
 
Now, I personally know that many investors are plowing money into the real estate market, although they are very selective and are making decisions that factor in NO appreciation for 5 or more years. And, there are still buyers out there. They are balancing the historically low interest rates, low home prices and reduced competition against the chance that home values will decline further. But most of my buyers today have a long enough time horizon to give them the confidence that the combo of interest rate and home prices makes it a good time to buy.
 
Any homeowners reading this who are considering moving in the next 24 months or so should seriously consider getting your home on the market sooner, rather than later. Sell, get you money in the bank now, and rent for a while if you need to. It may be a bit inconvenient, but it appears that this may be the smartest move.

Foreclosures in Smith Farm, Lake Worth

As of today, there are 102 Smith Farm homes in some stage of foreclosure. (On April 1st there were 94)

Alphabetically, by street, here are the numbers:

• Ambleside-3
• Ashburn-5
• Boxleaf-1
• Branchwood-10
• Columbia-6
• Copperfield-3
• Downwinds-2
• Great Oak-4
• Greenville-7
• Kingsley-6
• Marbletree-6
• Oak Bluff-4
• Oak Grove-14
• Prestwick-1
• Ridgefield-3
• Rockport-8
• Sally Lyn-4
• Squirewood-3
• Stonehurst-4
• Waterdance-3
• Waverly-4

Falling home prices raise fears of new bottom - Yahoo! News

 

Tax credits and historically low mortgage rates have failed to lift home prices so far this year. Prices fell 0.5 percent in March from February, according to the Standard & Poor's/Case-Shiller 20-city index released Tuesday .

The co-creator of the Case-Shiller index, who predicted in 2005 that the housing bubble would burst, is raising concerns that the worst may be ahead. That fear is shared by other economists who point to weak job growth, tight credit and many more foreclosures ahead.

"I'm worried still about the risk of a double-dip," economist Robert Shiller said in an interview.

The month-to-month drop from February to March marked the sixth straight decline. Prices in 13 of the cities fell. Only six metro areas recorded price gains. One, Boston, came in flat.

In the first quarter of 2010, U.S. home prices fell 3.2 percent compared with the fourth quarter.

Falling home prices raise fears of new bottom - Yahoo! News

Short Sale Myths

Short Sale Myths De-Bunked


RISMEDIA, May 13, 2010—With short sales making up almost 35% of home sales in March and the country with a national foreclosure problem, I Short Sale, Inc., one of the largest short sale firms in the U.S., sets the record straight on common short sale myths.

1. You must be default on your mortgage to negotiate a short sale. Short sales are not a function of default status on a mortgage. They are the result of the bank mitigating a potential default situation that, in the long run, will cost more money to the investors. We have completed many short sales in instances when the borrower was not in a default situation.

2. Listing my home as a short sale is embarrassing. Anytime we get ourselves into a tough financial situation it can cause some embarrassing feelings. It is important to remember that those feelings will not help us get back onto stable financial ground. We need to overcome our feelings and do what is right to protect our financial futures.

3. Buyers aren't interested in short sale properties. Short Sale properties are often times available at a competitive price to other properties on the market. In many cases, short sale properties are very well cared for and have not had to endure the deferred maintenance of a REO property. Short Sale properties are in great demand in the marketplace.

4. There's not enough time to negotiate a short sale before foreclosure. A good negotiator takes into account the timeline affiliated with a foreclosure. There is always a chance that a short sale can be negotiated. However, the only way to know for sure is to try.

5. The bank would rather foreclose than complete a short sale. Banks do not want to foreclose on property. It is expensive and carries a high level of liability once the bank owns that property as an REO. Wherever possible, banks are seeking other loss mitigation options before foreclosure.

6. Short sales are impossible and never get approved. Short sales are complicated, but not impossible. We negotiate short sale approvals every day.

Smith Farm market activity report...last 90 days of sold properties

Looking at the properties that have sold within a subdivision in the previous 90 days is a big factor in arriving at a valuation that an appraiser may report back to a lender. Generally, appraisers will try to find enough "comparable" (not identical) sales going back only 90 days. If there are not enough, they will continue to go back further.

I have seen instances that, for whatever reason, where appraisers have passed over recent sales and used older sales in their valuations...and it has resulted in an "appraisal review" being called for and usually ends with a lowered appraisal.

Below are all the reported sales in the last 90 days:

1. 3 BR. 2.5 bath, 1 car - 1737 sq ft. - (model 719) - Rockport - $175,000 - (bank owned)
2. 3/2/2 - 1600 sq ft. - Oak Grove - (model 745) - $198,000
3. 3/2/2 - 2166 sq ft - Copperfield - (model 1141) - $206,000 - (short sale)
4. 3/2.5/2 - 1821 sq ft - Rockport - (model 722) - $206,250
5. 4/2.5/2 - 2050 sq ft - Columbia - $217,000 - (bank owned)
6. 3/2.5/2 - 1821 sq ft - Rockport - (model 722) - $218,000
7. 3/2.5/2 - 1821 sq ft - Rockport - (model 722) - $220,000 - (bank owned)
8. 4/3/2 - 3017 sq ft - Copperfield - (model 1139) - $227,000 - (short sale)
9. 3/2.5/2 - 2694 sq ft - Pool - Columbia - (model 718) - $229,000 - (short sale)
10. 3/2/2 - 2166 sq ft - Copperfield - (model 1141) - $245,000
11. 5/2.5/2 - 3638 sq ft - Great Oak - $315,000 - (bank owned)

Smith Farm homes currently under contract

There are currently 13 Smith Farm homes "under contract"

The asking prices range from $189,000 to $399,000.

7 of the 13 are marketed as Short Sales.

2 of the 13 are bank-owned sales.

Days on market range from a low of 17 to a high of 468.

Smith Farm homes currently on the market

19 homes currently on the market, ranging from $185,000 to $499,000. If you remove the 'outlier' home at $499k, the next highest asking price is $340,000.

9 are being marketed as Short Sales

4 are bank-owned properties

CBS The Early Show...Rebecca Jarvis; Selecting a real estate agent

Yesterday, Rebecca Jarvis on CBS The Early show did a piece on how to avoid the common mistakes in selling real estate...her #1 mistake: Picking a bad agent

But, through lack of research or lack of expeirence she failed to give any concrete advice on how to judge if you are picking a good agent or a bad agent. The best advice is be diligent and careful when hiring an agent...you won't know you hired the wrong one until it is too late.

Personally, I have seen sellers select an agent because (in their own words) "they send me postcards all the time". Others have selected neighbors, friends, church associates etc. as their agent with no other qualifying criteria.

A recent development is the "mega agent" who advertises under their name but actually has less experienced "team members" handle just about all aspects of a transaction, all the time selling the client on how this is good for them. The "mega agent" doesn't meet with the client, doesn't write or negotiate the contracts, doesn't interact with the buyers agent and may not ever speak with the client...they are involved in the clients transaction in name only.

While this is just my opinion and there may be no way to prove this, I would argue that the best agents occupy the "80th to 90th percentile" of a Bell Curve of relative real estate production. I say this because my years in the business have led me to believe that the absolute "top" agents in terms of total # of homes sold tend to be focused primarily on SALES and SELF-PROMOTION and most of the actual work is delegated to other individuals, while the agents just below that tend to be more client-centric and personally involved in the clients transaction.

It's time to get a CLUE

HAFA...all the benefits of a regular short sale...hafa the headaches!

Monday, April 5th, was the 1st day, officially, of the new government sponsored intiative, HAFA: Home Affordable Foreclosure Alternatives. HAFA was introduced to simplify and streamline the short sale process and to provide incentives for the homeowner, loan servicer and lender/investor.

We have already received specialized, in depth training on this new program and will briefly summarize the features and benefits below:

Qualifying Factors

• Must be HAMP eligible
• Principal residence only (must be living there, with 1 allowable exception)
• 1st lien mortgage originated prior to 2009
• Mortgage balance less than $729,750
• Mortgage payment exceeds 31% of monthly gross income
• NOT a Fannie Mae or Freddie Mac backed loan

Here are the Fannie and Freddie loan look-up tools:

Fannie Mae Loan Lookup

Freddie Mac Loan Lookup

How is the HAFA program different or better than what is being done now?
The main problem, for both sellers and buyers, with traditional short sales was that they took too long and the process was wholly unpredictable. It was always difficult to keep buyers interested in, and committed to, the process. The HAFA program was designed to speed up and standardize the short sale process and give incentives for each short sale completed. During a non-HAFA short sale, there is no government incentive for banks to help you. Also, a VERY important benefit to homeowners is the requirement that participating lenders release you of any further libility for the deficiency amount!

What are the incentives?

• As a qualifying homeowner, you would be entitled to a $3000 "relocation" incentive payment at the time of closing and funding of your short sale.
• Servicers participating in the program will receive $1,500 for a completed short sale
• Investors (lenders) can receive up to $2,000 for payments made to junior lienholders
• Junior lienholders can receive up to $6000

Do I have to hire a real estate professional for a HAFA short sale?

Yes, but it won't cost you anything. Under HAFA, our fee will be deducted from the sale proceeds and paid by the lender. It is a requirement of a HAFA short sale that you work with a real estate professional throughout the HAFA short sale process. The Jackson Realty Group is now the areas HAFA specialists, having received the most up-to-date training available on the HAFA program.

Also, any time there is a new program announced, there are people who set up scams based upon the publics ignorance of the details, and the HAFA program will be no different. Other than an attorney you may hire to assist with a pending foreclosure or associated issue, beware of anyone requesting "up front fees" to assist you in processing a HAFA short sale. MakingHomeAffordable.gov (MHA) provides the following guidelines:

• Beware of anyone who asks you to pay a fee in exchange for counseling service or modification of a delinquent loan.

• Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes.

• Beware of people who pressure you to sign papers immediately, or who try to convince you that they can "save" your home if you sign paperwork or transfer over the deed to your house.

• Never make a mortgage payment to anyone other than your mortgage company without their approval.

• Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.

If you would like to meet with me to discuss if you may qualify for this program and to review the process as well as your options, please call me at 561-602-1258 or CLICK HERE and send me an email with your contact information.

Smith Farm Foreclosures...more detail

As of April 1st, 2010 there were 94 Smith Farm homes in some stage of foreclosure. Here is a breakdown by street, alphabetically:

• Ambleside - 3
• Ashburn - 5
• Boxleaf - 1
• Branchwood - 9
• Columbia - 6
• Copperfield - 3
• Downwinds - 2
• Great Oak - 6
• Greenville - 6
• Kingsley - 7
• Marbletree - 4
• Oak Bluff - 3
• Oak Grove - 12
• Prestwick - 1
• Ridgefield - 3
• Rockport - 8
• Sally Lynn - 4
• Squirewood - 2
• Stonehurst - 3
• Waterdance - 3
• Waverly - 3

Now this does not mean that next week there will be 94 bank-owned homes on the market for sale...but it is a good indicator that there is still a lot of distressed inventory to come...which will serve to further soften up prices.