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Axelrod calls for fairer mortgage finance, support of Cordray for CFPB
David Axelrod, former senior adviser to President Obama, said repairing housing and a creating fairer mortgage finance system would help ease the anger and frustration the country has with Wall Street as the economy remains stagnant.
“America and the American people need a strong financial system — a need you provide,” he said, making his comments Tuesday at the Mortgage Bankers Association annual conference in Chicago.
The mortgage finance system must be completely transparent, he said. Further, the frenzied packaging of toxic subprime mortgages into securities, as he put it, contributed greatly to the economic downturn and should have been prevented.
And while he doubts such mortgages will return, he called for fair lending standards.
“Loans need to be given on terms borrowers can understand and afford,” he said, adding some borrowers share the blame for agreeing to these problematic mortgages.
One way to help this along, he said, is with the immediate appointment of Richard Cordray as head of the Consumer Financial Protection Bureau.
“There is little energy in real estate reform,” said Jeb Bush, former governor of Florida. “Businesses have got too timid in pushing themselves. People are marching on CEOs in New York. Stand up for yourself,” he advised the crowd, in a reference to Occupy Wall Street, a three-week protest in Manhattan in which protesters promised Tuesday to march outside the homes of wealthy CEOs in New York.
Bush said the mortgage business needs to be more aggressive with promoting solutions to the housing crisis. He also criticized the sheer bulk of the Dodd-Frank financial reform to loud applause.
Axelrod said calls to reduce regulation in order to drum up business should be clearly thought out.
“Simply fighting reforms under the guise of protecting the economy is not going to fly,” he said. “The American people demand solutions that, at the core, demand the security they have lost.”
He also said government-sponsored enterprises remain part of the housing finance problem.
“We have to end Fannie and Freddie as we know them,” Axelrod said, while citing several steps the administration could take to help wind down these institutions’ involvement in the mortgage market. “There is no reason Fannie and Freddie should own 300,000 homes.”
Axelrod added that a bulk REO sales might work, if lenders let investors buy the home for rentals. “We need to take advantage of these low interest rates,” he said.
Bulk REO Sweet Spot Video 1
It’s Not Your Fault the Government Caused This Real Estate Disaster… But you can make a fortune from it when you know what to do. Please Read on…
Click To Play Video 1 on This Series On Bulk REO.
The ‘foreclosure phenomenon’ has plagued the housing market; bank repossessions, REO real estate, has become an uncomfortable norm in a housing market ridden with foreclosures. Many real estate investors have taken this opportunity to try to buy foreclosed properties through the “Short Sale” process, but have faced many unexpected obstacles while questionable marketing practices have begun to overpower the infomercial industry targeting new investors just wanting to capitalize on obvious potential.
Mark Bradley, successful commercial and residential real estate investor, describes his process of disrobing the short sale real estate myth. Instead applies real estate principles that can land investors huge profits in today’s real estate market.
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Bulk REO $1,000,000 Deals Video 2
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And Find Out What The Short Sale Gurus Haven’t Been Telling You!
Right now 85% of all foreclosed homes are being taken back by the banks and lenders.
One of the reason the real estate market is so bad is it can take up to 1 year to close a short sale deal.
You may recall from my last video, there are 5 step s you must complete to close just one short sale deal.
Your probably a lot like me your wondering what to do now in this real estate market. I was too. I tried to make money with shortsales and foreclosures. But I found out that we needed to complete this five steps to get just one short sale done.
Each of these steps is hard because there are about a gazillion steps to each of these 5 steps.
Remember, you must complete each step or you don’t make any money.
Step 1
You must find people who have the type of property you want to invest in, who are in foreclosure.
This means you need to learn marketing from door to door, cold calling homeowners in distress, direct mail, pay per click, flyers, networking and the list goes on.
You must get good at marketing and this takes time, money, and expertise. Picture Sherlock Holmes with his magnifying glass tiring to fine the right criminal. Searching like a needle in a haystack for the right person with the right property.
This is the first step in investing in short sales. If you fail here everything else is secondary. Meaning no money for you.
Step 2
They must respond to you and not a competitor.
You must be the one! The one they trust out and above all the other short sale investors who went to a seminar and bought a foreclosure course. You must cut through the clutter and get the right message to make this work. If they don’t respond you’ve got nothing. Get tripped up here and no money in your checking account.
Step 3
They must be down with working with you.
The ball is in their court. They must work with you for the long run and not bail on you. One of 100 things can go wrong here. They may finely get a job, they may re negotiate the loan, a competitor may come along that they like better than you. Nothing is guaranteed even if the home owner has agreed to work with you.
All you have is the limited ability to work on as many deals as humanly possible to increase your odds of finding “The One”
If “The One” flakes here all your time, money, and effort is wasted. Strike three, you must start over from step one.
Step 4
The bank, lender, creditors, and other lien holders must work with you.
You must get this cooperation for the duration of the short sale process.
They are getting shafted! These people are less than thrilled. They will be losing money on their own bad deals with the home owner.
Once you get the 2nd lien holders to settle you must pay a lawyer to make sure all the satisfaction of liens are recorded properly at the court house. “Imagine putting in all this work just to have one pain in the rear creditor who wants a full payoff on their bad loan.”
So many deals get killed at this step. Much pain and no gain if you get knocked down on step 4.
Step 5
Congratulations if you are persistent and good enough to reach the step. But you’re not out of the woods yet because the distressed homeowners are emotional frozen.
Like a deer in the headlights and a cornered animal they are Unpredictable.
Plus, they may file bankruptcy which can add 6 months to 1 year to the foreclosure process. Or the distraught homeowner do a deed in lieu of foreclosure and just turn the keys in and split.
Regardless, you must successfully complete each if these 5 major steps to close one short sale deal.
That’s just one deal. Even if you get real good at short sales think of all the road blocks, obstacles, pitfalls and problems you have to overcome for one darn deal?
This is the end of The 2nd Video in this series.
Look for my next video on How I finally gave up on the short sale business and started a multi-million dollar Bulk REO Real Estate Business.
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