PEOPLE! … THERE IS NO SECRET TO DOING A LOAN MODIFICATION! – Over 9 Million People Will Qualify!

Doing a loan modification is easy. All you need is the right instructions and the forms the lender will require. Frank Wible, the nation’s number one short sale realtor has performed hundreds of these loan modifications for his clients.

NOW, the same documents and instructions that have been used by his staff are now available for download. You will not believe how easy it is to modify your own loan. It’s time to take advantage of this governmental opportunity to reduce your payments and possibly, your entire loan amount.

Take a look at the website we have setup for you and you will see what we mean…
NewLoanPackage.com

Frank Wible, LLC
Turnersville, NJ 08012
fwible@gmail.com
Phone: 856-745-7700
Fax: 856-228-4433

PS: Realtors and Agents are welcome to use this package to provide Loan Modification Services for their clients

Buyers, waiting in the wings to purchase that fantastic deal on their new home may not want to wait much longer. Personally being a major name in the foreclosure and short sale markets, buyers contact me constantly asking me to find them that steal, and willing to wait for it. Working with many of them, I'm starting to advise not to wait for that perfect deal/steal. Being a buyer in this market has afforded you the time to wait and see, but this time may be coming to a close. Interest rates falling to new lows have sparked even the most gun-shy buyers to pull the trigger. Traditionally, February through June has been the busiest months for home sale transactions, and it looks like we are off to a great start for this year as well.

Over one hundred and twenty five showings already logged for my listings the first three days February. This compared to only sixty eight the entire last week of January. Smart buyers are now thinking this is the time to move forward may leave the deal you've been waiting for unavailable. At my closing on Friday, my buyer purchased a $300,000 home with a fantastic payment of around $1574.00. The interest rate was bought down to below five percent, and the value of the home came in at around $340,000. This buyer saw the opportunity to own a new home, with $40,000 in possible equity, for a little more than he was paying for rent.

I cringe when I make the statement "lenders know what's going on," but on my short sales, lenders have started negotiating to "market value" in order to be accepted. What do they know, and what do they see to begin this shift in their short sale and foreclosure decision making? They don't want them back so how do they know they will obtain market value if they wait? Although greed blinded them in lending money during the boom, I guarantee they are monitoring everything closely now.

Buyers in today's market are in a much better position than before, but may need to make their move in order the seal a great deal. So close to the foreclosure and short sale market (a major factor in what drives the market down), I see the winds of change. Thank God for the global economy, it's looking like strong stabilization is coming.

As we all navigate the short sale waters we realize no matter how much training we think we may have, something new seems to arise on every deal. Not because things are different in the methods, they always remain the same, but because the lenders change the rules all the time. The month of January, my team was able to produce 43 short sale closings, and get them to the table! (Yay me!) Each and every one has recently become a gladiator fight to the end.

A simple realization I've had, and have taught to my negotiators, is that the lenders need us more then we need them. Take a hard stance against all the bull crap the lenders dish out, and it will pay off.

I remember one pushy negotiator kept saying "FINE, can I close the file then!" I found myself backing up just to get the deal done for my sellers. I took on this case, because my negotiators could not handle this woman. Finally after being nice and getting my head pounded by this woman, I said "Then close the dam file! The sellers are going bankrupt! You and your investors can have the dam property back. Let your supervisor know that it was your arrogance that made this deal fall apart" and slammed the phone down on her.  She did call back (in about 15 minutes), and we closed the deal with our terms. Wow, it worked!

I can't say that this will work with every deal, but negotiate as if you have nothing to lose. It's not your house, or your loan, or your money. It's in this mindset where you can represent your sellers best.  You should always remember to push extra hard and not give in. Don't forget this!

•1.)    Who do they think they are to cut commissions? Negotiate for this! You work ten times harder on a short sale, so why should we be paid less. Fight for this commission. If you have to, take all listings at 8% and start there. Don't let them push you around on this issue. They will break when you push!

•2.)    Be pleasant but firm, act as if you're the market expert and they need to listen to you. You know values and fight for your case. Tell them you like working with them, and will they continue being the negotiator when the sellers go bankrupt if a deal is not be obtained soon. Befriend them without being their friend.  A fast NO, is better than a slow NO! If you don't see it happening, don't bend just to close the deal! (Within reason!) Get it back on the market (time permitting) and quickly get another offer...and most important; another negotiator!

•3.)    Promissory notes are bad! Lenders seem to be pushing for this much more. With a true hardship, ask the lender how they calculated the formula on how the seller can pay this note. Predicted answer is "they have extra money at the end of each month according to their financial workout sheet." You NEVER give an answer at this point. You will get back to them after you speak to the seller, and breath heavy like this is going to be a major problem. The next day, fax or email the negotiator that the seller said "no way!" Add your own comments like, "Sorry this deal does not look promising, and hopefully your REO department will be able to recover that additional money for your investors. However, in this seriously declining market area, another write off, on a much greater loss may be better for the holding investor. Buyers are extremely scarce in this area, but I will see what I can do for you. Mitigation has not been achieved."

•4.)    A trend I have noticed as negotiators have given up the secrets. "Frank, we would have accepted less on the second if the first was taking a hit as well." WHAT??? Use the fact that lenders are struggling to find a solution to this landslide. Holes still remain in their policy and you need to know what they are. Take notes on every deal while on the phone. Enter those notes into a database or address book so you remember what happened last time you faced off against this lender. Knowledge is power!

Short sale classes can teach you the foundational basics when handling a short sale, but they can't teach you how to handle yourself when negotiating (maybe some can). When all that's on your mind is closing the deal and getting your commissions, you will lose. Remember, it's not your problem. Close or not, you are walking from this deal and it will be a fleeting memory in a month or two. Take this attitude and you're providing your sellers the best possible service. Just don't tell them the details of your negotiating skills, it may make them crazy!

Best of luck with your short sale negotiations! Be prepared, be complete, and be firm. You are the rainmakers helping these lenders, never forget this. Get paid, by providing your sellers the best service.

I write what I experience. Your process or methods may be different. If they work then run with it. If you're frustrated and looking for new angels to win the gladiator showdown, then maybe this will help. I try to provide as much data as I can...take it or leave it.

Frank Wible
REMAX ALL PROS
www.ShortSaleNJ.com

Pulling up to a client's home today I noticed it looked vacant. I looked in the door and saw the young husband sitting on a folding chair watching TV. I knocked and he quickly answered.  A very nice family came running after him and I made my standard small talk. This was their first home and they were very happy to be living in such a nice neighborhood on their budget. 

As time passed, I learned that they signed an exotic loan to buy the home. The mortgage company convinced them they could afford the home of their dreams at a payment they could afford. I think he forgot to disclose the teeth on this loan!

The house looked like they were moving out. So I asked the client where they were moving to.  He replied, oh we do not know yet. I questioned why the house looked empty. The next statement is what shocked me. "The mortgage collections representative told them that they took the loan, and they should be responsible and sell their stuff in order to make the payments or they will be forced onto the streets through foreclosure." This house was cleaned out!

I don't blame mortgage companies, Realtors or anyone else for people not reading the small print.  If they don't, this is what can happen. Anyone can hire a lawyer for a few hundred bucks before they sign on the dotted line for a loan or home. I'm not even upset about what the collections department told these people to do (sell their stuff).  I only type this story to illustrate the casualties of this market are real people that need our help, education and compassion. We're all suffering from this difficult market, but let's be thankful for what we have.

At the very least, a bad day on Wall Street has a definitive end; the sound of the closing bell. After a full day watching the stock market drop, we take comfort in knowing tomorrow it may rally back.  When can we expect someone to ring this closing bell on the real estate market? How much worse will it get?

The past year has been the most painful in decades for residential real estate, as foreclosures increase, and defaults continue to rise on less-creditworthy borrowers creating a broader credit squeeze. House prices fell, home ownership dropped, foreclosures soared, and the housing market emerged as the entire basis of our economy.

Unfortunately, relief from these housing woes is unlikely anytime soon. Daniel Mudd, chief executive of government-sponsored mortgage investor Fannie Mae, expects prices to continue on this decline as foreclosures rise in 2008, possibly well into 2009. RealtyTrac®, the leading online marketplace for foreclosure data, released its October 2007 U.S. Foreclosure Market Report, which shows a total of 224,451 foreclosure filings nationwide.  House prices tumbled in 2007; 6.5% as of October, while an additional 3,711 New Jersey foreclosure have been filed this month alone.  

As bargain seekers line up to purchase their new home or investment property, finding a lender to approve their loan has become a real challenge. Metaphorically speaking, ringing the closing bell for real estate professionals has a whole different meaning.  Buyers not willing to commit, or last minute mortgage guideline changes, makes every closing a challenge.  It's become a nail bitter until the final closing day for all parties involved in the transaction.

Federal Housing Authority (FHA) backed loans may be the only light at the end of this dark tunnel. FHA reform reached an important milestone recently when the U.S. Senate overwhelmingly approved its version of the legislation, the bill passed by a vote of 93-1.

The new FHA reform will raise the limit on FHA loans to at least $417,000. Some areas of the country will see an increase go as high as $829,750. This FHA increase will help people countrywide who are facing foreclosure refinance under these new terms, and help many new home buyers obtain lower interest loans, with less money down (as low as 1%). However, the biggest stumbling block to a compromise is a feature of the House bill which establishes a new housing trust fund for troubled borrowers and would require FHA to contribute to it.

Experts predict a bottom to the housing market sometime in 2009, but only if the economy stays relatively strong. If it slides into broad-based recession, it won't be until the end of the decade that the housing market finds a bottom.

Frank Wible from REMAX All Pros in Turnersville, NJ is a nationwide foreclosure, short sale and real estate market authority. If you have any questions, Frank can be reached directly by emailing fwible@remax.net or calling his office at (856) 228-7990 Ext 150.  Additional information is available at www.ShortSaleNJ.com.