Foreclosure Filing Report Numbers Released for June 2011

Total number of active foreclosures and new filings in Colorado and Clark County, Nevada for June 2011. Data courtesy of Claremont Information Systems and Short Sale ProLogic.

For more information visit: www.ShortSaleProLogic.com

Foreclosure Filing Report Numbers Released for April 2011

Total number of active foreclosures and new filings in Colorado for April 2011. Data courtesy of Claremont Information Systems and Short Sale ProLogic.

For more information visit: www.shortsaleprologic.com

Ritz-Carlton Bachelor Gulch in Colorado Faces $61 Million Foreclosure

From: Penny Parker
Denver Post Columnist

The Miami-based owners of the Ritz-Carlton Bachelor Gulch, one of Eagle County's ritziest resorts, are in a $61 million foreclosure, according to Eagle County public records. The foreclosure filing, submitted Wednesday and first reported by the Eagle County Times, shows that Gencom Group in Miami, the hotel's owner, has until a scheduled Aug. 24 foreclosure sale to bring the loan up to date with the lender.


Ritz-Carlton does not own the resort but has a long-term management agreement, which means the company would run the hotel, no matter who owns it, as long as the Ritz contract is in place.

"We remain doing business as usual," said Parool Shah, Ritz-Carlton's director of public relations in Colorado. "This is a financial transaction being handled by our property's owners and their lenders, which in no way impacts our daily hotel operations."

Karla Herridge, Eagle County's chief deputy public trustee, said short of the loan being brought up to date, her office will publish an auction notice in the local newspaper July 7, with an Aug. 24 auction date.

"The foreclosing lender has the right to postpone the auction up to 12 months from the original date — to Aug. 24, 2012," said Herridge, who added that the hotel's foreclosure is the largest dollar amount in Eagle County since she started working there in 2006.

The Ritz-Carlton Bachelor Gulch opened Nov. 21, 2002, with 180 guest rooms , including 40 suites. Amenities include a ski valet, The Ritz Kids program, 24-hour room service and a 21,000-square-foot full-service spa and fitness center. Famed chef Wolfgang Puck operates a Spago restaurant on the property.

Read more:Parker: Ritz-Carlton Bachelor Gulch in Colorado faces $61 million foreclosure - The Denver Posthttp://www.denverpost.com/pennyparker/ci_17954171?source=rss#ixzz1LDeHHiiu

Short Sale Rule From MARS

From DenverPost.com:

Mars is the red planet, but MARS has some real estate professionals seeing red. The National Association of Realtors is working to fine-tune MARS – the acronym for Mortgage Assistance Relief Services Act – regarding real estate brokers, although some brokers already are cheering MARS.

The act, sponsored by the FTC, with relatively little fanfare, went into effect on Jan. 31 to help protect distressed homeowners from mortgage relief scams. Only now, does it appear to have started appearing on the radar screen of many Realtors.

MARS lands on Realtors who do short sales

The 54-page MARS document defines “mortgage assistance relief service” to include “negotiating, obtaining or arranging a short sale of a dwelling.” A short sale is when a bank accepts less than the mortgage amount, and is seen as a less costly alternative to a foreclosure. There were more than 3,300 short sales in the Denver area last year.

Among other things, MARS:

• Outlaws charging advanced fees or passing along a short sale coordinator’s fee to homeowners prior to the seller receiving a written notice from the lender saying the offer is acceptable.
• Broker and others involved in the short sale process must disclose that they and their companies are not associated with the government.
• Consumers must be reminded that it is within their right to reject the offer.
• Mortgage relief companies are prohibited from making a false or misleading claims in about a dozen specific areas. Among other things, misrepresentations are not allowed regarding the likelihood of consumers getting the results they are seeking; the consumer’s payments and other obligations; and the amount of money a consumer will save by using their services. In short: Do not mislead consumers on any aspect of the process. All disclosures must be clear and prominent. It even goes as far to say that text advertisements must have the heading IMPORTANT NOTICE in bold font that is at least two-point type larger than other type in the document.
• Sellers cannot be advised to not contact or communicate with their lenders or loan servicers.

MARS also imposes record-keeping and compliance requirements. Indeed, one criticism has been that the FTC went a bit over-board with multiple disclosures.

There is no exception in MARS for real estate brokers, as there is in the Colorado Foreclosure Protection Act, although there is an exception in MARS for lawyers.

“This means real estate brokers working with short sellers or any seller in foreclosure need to understand and comply with MARS,” according to Damian Cox, a Denver real estate lawyer.

Indeed, violators of MARS could face fines of up to $11,000 per day.

Although it has been in effect for two months, the gravity of it is only now starting to sink in.

Consumers may be hurt

“It was adopted with no real fanfare,” said Cox. “It was intended to help consumers, but, unfortunately, I think it could hurt the ability to get a short sale done. I think it is overly broad. Realtors are starting to become more aware of it, and they should. It is a big deal.”

It’s a national rule and has had a national response.

Earlier this month, Jim Schneider, a Realtor in the Chicago area, criticized the National Association of Realtors for not making a bigger deal about MARS.

“They didn’t do much to rally the troops to change this ruling to make (it) something less difficult to implement; they issued their findings long after the ruling came into effect, and they haven’t exerted any effort to make the Realtor community aware that this exists. Trifecta!” Schneider wrote.

NAR looks to tweak ruling

However, Laurie Janik, an attorney with the NAR, this morning told InsideRealEstateNews that it she is working with the FTC regarding required disclosures under MARS by real estate brokers who are working on short sale transactions.

“The rule is not a good fit,” for real estate brokers as far as some disclosure requirements, Janik said. “We are working with the FTC to get some additional guidance. The FTC has been most willing to engage in conversations with us.”

Some Realtors like MARS

But MARS already has its fans.

Bobby Burnett, principal of Keller Williams Realty-DTC, for example, thinks MARS is just what the industry needs.

“I think it is a good thing,” said Burnett, who expects to complete at least 100 short sales this year. He estimates short sales account for 50 percent to 60 percent of the activity by his Burnett Team at Keller Williams.

“No. 1, it has a prohibition of upfront fees, and I like that,” Burnett said. “You can get paid at the closing or after the lender has accepted the offer, but it is illegal to charge upfront fees. I agree with that.”

He also said that he likes the disclosure requirements, such as saying you are not representing the government and that consumers can reject offers.

“I was doing most of this stuff before,” Burnett said. “You know how much I hated these guys that were cheating people and double-selling properties. I hated those guys.”

Regulations inevitable

Ryan Lantz, who works with a number of companies that provide short sale services to brokers, as well as Realtors, months ago said it was inevitable the industry would face more regulations.

Lantz, co-founder and managing director of Claremont Information Systems, which developed Short Sale ProLogic, a software program that helps brokers identify short-sale listings and unsold homes in the shadow market, thinks that MARS is on the right track. He said outlawing upfront fees is a good move, for example.

“I think it is better for the consumer and the industry,” Lantz said. “I think that makes everyone 100 percent incentivized to get the deal closed. Some of the good companies out there are already dong that. PMH Financial, for example, has a fee structure that they only collect their fees at the closing.

“There are other good (short sale companies) out there that collect their fees upfront, and they are going to have to adjust,” Lantz said. “And the good companies will. They will adapt and it won’t be a problem. Some of the other companies, which depend solely on front-end fees, will go out of business. That is a good thing. We want to get the bad actors out of the business, which will be better for the good guys. Honestly, I don’t think this is going to have any impact on the market’s ability to get short sales closed.”

Tara Rogers is chairwoman of RealtyTMS, one of the biggest players is the short sale service field. She emphasized that RealtyTMS is completely MARS-compliant and will follow all of the rules set out by the FTC. She and her lawyers will continue to monitor the ruling.

Bad apples caused problems

“Unfortunately, there were several bad apples out there who were using predatory practices to take advantage of homeowners,” during a very vulnerable time, Rogers said. “We are taking the position that anything that gets rid of those predatory folks is a good thing. That will allow people to get the help they need from legitimate companies and Realtors.”

The act traces its roots to March 11, 2009, when President Obama signed the Omnibus Appropriations Act. A section of the act directed the FTC to seek comments to come up with new rules to combat mortgage fraud.

The ban on charging upfront fees, though, could have a downside for some short-sale coordinators who help brokers navigate the time-consuming and complex short-sale process, said real estate lawyer Cox.

“Upfront fees are now prohibited,” Cox said. “That is going to change the market. I think it could have a chilling effect on the completion of short sales.”

Cox said many brokers use short-sale coordinator firms that help brokers and sellers deal with the banks, when it comes to such things as finding the correct forms to fill out.

“These are the people who will sit on the phone for hours with the bank,” Cox said.

Many of these companies charge an upfront fee for their time and effort, while the broker only gets paid if the home is sold.

Most distressed consumers may suffer

He said he expects that some short-sale transaction firms will “cherry pick,” cases, and only take on the ones that seem almost certain to close. That could mean some of the most distressed homeowners – those with multiple liens on their houses, for example – will be forced into foreclosure.

“It is amazing to me that the government on one hand is encouraging short sales as an alternative to a foreclosure, but on the other hand is making it more difficult to accomplish them,” Cox said.

Colorado Attorney General John Suthers is not only a big fan of MARS, but played an important role in creating the act.

Suthers and the Illinois Attorney General were the lead state attorneys who helped shape MARS in April 2010, when the FTC was considering comments from various groups. Comments by the National Association of Attorneys General group called the ban on advanced fees as the “linchpin” of the new rule.

MARS another tool for Suthers

“We support the FTC rule,” Suthers said through a spokesman. “We believe the rule complements the Colorado Foreclosure Protection Act,” and does not preclude any actions that his office can take under the Colorado act he said.

Suthers said he welcomes MARS as “another tool we have to pursue individuals or companies defrauding Colorado homeowners seeking foreclosure-relief services.”

Ron Woodcock, a broker with RE/MAX Southeast, who has completed more than 400 short sales during the past 22 years in Florida and Colorado, also supports MARS.

“I believe, overall, it is good legislation,” Woodcock said. “It is coming on the scene a little late, but is good legislation. Hopefully, it will help put the brakes on most of the scams out there where people are paying thousands of dollars upfront for mortgage modifications that never happen and were never going to happen, anyway.”

Short Sale IQ Revealed

Short Sale Daily News recently performed a survey to find out the current thoughts of industry professionals on short sales. Over 600 real estate professionals participated, and the results are on par with what we at Short Sale ProLogic have been saying all along: THE SHORT SALE MARKET IS NOT A FAD. Short Sale Daily News asked and you, Realtors and investors, responded. Here’s what was said about the following short sale questions:

Doing a short sale is not much different than a traditional sale.

True     14.1%

False    85.9%

Representing the buyers on a short sale takes about the same amount of time as a traditional sale.

True     12%

False    88%

“When I show properties to buyers on a time constraint, I don’t tell them if any are listed as short sales because it doesn’t matter.”

True     2%  (shame on you!)

False    98%

You have to cut your commission every time on a short sale.

True     5%

False    95%

Short sales require more work than traditional real estate sales.

True     97%

False    3%

I hate showing short sale properties.

True     25.5%

False    74.5%

Short sales are just a fad and will be gone in the next couple years.

True     6.1%

False    93.9%

I have worked at least 6 short sale transactions, on either the buyer or seller’s side.

True     82.7%

False    17.3%

I try not to call the banks and other parties involved very often because I don’t want to be a pest.

True     7%

False    93%

Expediting a short sale doesn’t do any good. It will close when it closes.

True     6%

False    94%

 

Only a couple surprises with these results. A quarter of you do not like to show short sale properties, which was much higher than we anticipated. We were also surprised that 7% of the quiz takers did not want to call and follow up with the banks and other parties in the hopes of getting a short sale closed sooner. Sadly, you often have to be the squeaky wheel to keep things moving with a short sale.

And finally, we were pleased to see that a whopping 82.7% had worked at least six short sale transactions. That statistic is quite telling. If you were on the fence about the trend in short sales, that stat alone should convince you of the substantial market share that short sales have cornered.

All of this is reflective of what is happening in the real estate market. Short Sales are not a fad and are something every single Realtor is going to have to learn to deal with. The good news is that there are so many great resources out there to help guide Realtors through the process painlessly, so don't just sit there. Do something about it!

Homeowners Frustrated With Home Loan Modification Process

From 9news.com:

DENVER - When many of you told 9NEWS you were frustrated with how banks were treating foreclosures in Colorado, we heard you.

The process is frustrating. The banks don't return phone calls or deny your modification without giving you a clear reason. So we decided to investigate how the system works.

Judy Landrum recently went through a home modification. She calls the experience a big game. Medical bills made it tougher and tougher to pay her mortgage. Like so many Americans, she'd heard of Obama's plan to help Americans avoid foreclosure. She thought her hardship would make her eligible to get help from her bank.

"I've learned that doesn't matter at all. It comes down to numbers," Landrum said.

Housing counselor Caleb Anderson sees that misconception every day.

"The lenders are looking at their bottom line. They aren't looking at hardship, you know," Anderson said. "They are looking at situations that are sustainable. Those are the types of homeowners who are going to get help."

If you are facing foreclosure, there are people who can help. You don't need to pay for help from a free HUD approved counselor. The Colorado Foreclosure Hotline can put you in touch with one. Their phone number is 877- 601-4673.

Read more on 9News.com.

Foreclosure Friday Report

Foreclosure Friday Report

Using Short Sale ProLogic, this morning we took a peek at Golden, Colorado, where there are only 8 properties that are actually listed out of the 188 that are going through the foreclosure process!

Foreclosure vs. Short Sale

Take a look at some of the surprising information in the table below from Fannie Mae about the benefits of short sales vs. foreclosures:

ISSUE	FORECLOSURE	SUCCESSFUL SHORT SALE
Future Fannie Mae Loan – Primary Residence (1)	A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae-backed mortgage for a period of 5 years	A homeowner who successful negotiates and closes a short sale may be eligible for a Fannie Mae-backed mortgage after only 2 years
Future Fannie Mae Loan- Non Primary (2)	An investor who allows a property to foreclose is ineligible for a Fannie Mae-backed investment for a period of 7 years	An investor who successfully negotiates and closes a short sale may be eligible for a Fannie Mae-backed investment mortgage after only 2 years
Future Loan with any Mortgage Company	On any future loan application, you will have to answer “yes” to the question that asks “Have you had a property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” This will affect the interest rates you receive in the future	There is no similar declaration or question regarding a short sale.
Credit Score	Score may be lowered anywhere from250 to more than 300 points. Typically will affect a credit score for over 3 years.	After a short sale the mortgage is usually reported as “settled”, “paid as agreed” or “paid as negotiated”.  This is still a negative reporting, but can lower the score by as little as 50 points, if all other payments are current.  In this case, a short sale’s effect can be as brief as 12 to 18 months. Unfortunately, most short sales are accompanied by multiple late payments and those will be reported, further reducing the score and lengthening out the recovery time.
Credit History	Foreclosure will remain as a public record permanently, and on a person’s credit history for 10 years or more.	A short sale is not expressly reported on a credit history. There is no specific reporting item for a “short sale”.  The loan is typically reported “paid in full”, “settled”. Though this will show as derogatory history, it doesn’t have the same punch as foreclosure, and typically won’t last as long.
Security Clearance	Foreclosure poses a significant challenge to a security clearance, second only to a felony or serious misdemeanor conviction.  A person who is employed as a police officer, firefighter, military personnel, CIA, FBI or any other profession requiring a security clearance being revoked and the position being terminated.	On its own, a short sale does not challenge most security clearances. (3)
Current Employment	Employers have the right to check the credit of all employees who are in sensitive positions and may do so regularly.  In many cases, a foreclosure is reason for immediatereassignment or termination.	A short sale is not expressly reported on a credit report and is therefore not a direct challenge to employment. (4)
Future Employment	Many employers require credit checks on their job applications A foreclosure is one of the most detrimental credit items an applicant can have and inmany cases will challenge employment opportunities.	A short sale is not reported on a credit report and is therefore not a direct challenge to employment. (5)
Deficiency Judgment	In 100% of foreclosures (except in those states where there is no deficiency), the bank has the right to pursue the deficiency judgment.	In s few short sales, it is possible to convince the lender to give up the right to pursue a deficiencyjudgmentagainst the homeowner.
Deficiency Judgment (amount)	The process of foreclosing, holding, marketing and selling a house is very costly for the bank.  Unless it sells at the public auction, the resultingdeficiency will almost always be higher than if the property were sold short.	In a property managed short sale, the home is sold at a price that should be close to market value, and in almost all cases will be better than an REO sale resulting in alower deficiency.

1. Fannie Mae Announcement 08-16: Michael A. Quinn, Senior VP, Single Family Risk Officer
2. Fannie Mae Announcement 08-16: Michael A. Quinn, Senior VP, Single Family Risk Officer
3. The term “short sale” does not expressly appear on a credit report. –May 14, 2008, Experian.com
4. The term “short sale” does not expressly appear on a credit report. –May 14, 2008, Experian.com
5. Short Sales are currently not explicitly reported on a credit report.

Foreclosure Friday Report

FORECLOSURE FRIDAY REPORT from  Short Sale ProLogic:  

Today Short Sale ProLogic took a look at Littleton, Colorado and found some very shocking, very disturbing results. Currently, there are a total of 1,152 homes going through the foreclosure process in Littleton. Of those same homes, only 56 of those homes are actually listed, which is a mere 4%.

What most people don't understand is that there is something that can be done. If you are facing foreclosure and can no longer afford your home, you may qualify for a Short Sale—even if you don’t think you can (or haven’t been able to) sell your home.

So, what are the benefits of a Short Sale? Take a look:

• Eliminate or reduce your mortgage debt
•  Avoid the negative impact of a foreclosure 
• Start repairing your credit sooner than if you went through a foreclosure 
• May be able to get a Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) than if you went through foreclosure (at least 7 years)

 

With the help of Short Sale ProLogic, Realtors are given the tools to not only find out the exact status of each home that is going through the foreclosure process, but also the training needed to approach the homeowners to begin helping them get their home listed and save them from foreclosure.

More Help Available To Coloradans Facing Foreclosure

From 9News.com:

Colorado Attorney General John Suthers has awarded a two-year, $600,000 grant to the nonprofit Foreclosure Hotline in hopes of helping more homeowners trying to avoid losing their homes. "The Colorado Foreclosure Hotline is the best resource available for consumers facing foreclosure," Suthers said in a Tuesday news release. "It is free and has a proven record of helping homeowners in distress assess their options and make an informed choice." 

The grant will allow the hotline to continue its work for the next two years. The grant money came from fines and penalties from Countrywide Financial Corporation and Wells Fargo. The money was gained in a settlement to resolve allegations related to mortgage fraud by the Colorado Attorney General's Office.

The hotline is managed by the nonprofit Brothers Redevelopment. It serves as a network of more than two dozen HUD-approved housing counseling agencies who work with homeowners in or facing foreclosure.

The hotline averages 3,000 calls per month with more than 132,000 Coloradans seeking help since the hotline was established in 2006.

Consumers can reach the Colorado Foreclosure Hotline at 1-877-601-4673 or visit the website at www.coloradoforeclosurehotline.org. 

Just another confirmation that the short sale market will be around for a long time to come. Visit www.shortsaleprologic.com to see how you can help.

Foreclosure Friday Report

FORECLOSURE FRIDAY REPORT: Highlands Ranch, Colorado. As of this morning, 740 properties are going through the foreclosure process.

ATTENTION REALTORS: of the 740 properties only 43 are actually listed- that is just 5.8%. You have an opportunity to help solve this crisis. What are you waiting for?

www.shortsaleprologic.com

Short Sale Option As An Alternative To Foreclosure

Realtors: by now, you probably already know that by using Short Sale ProLogic, you will be able to discover the names of homeowners whose homes are in pre-foreclosure or in foreclosure in your area. The hard part is how to approach those homeowners to explain to them the benefits of doing a short sale versus letting their home go back to the bank. There are some tips below that can help both Realtors and homeowners make sense of the foreclosure process and how valuable a short sale can actually be. 

Fannie Mae:

If you are facing foreclosure and can no longer afford your home, you may qualify for a Short Sale—even if you don’t think you can (or haven’t been able to) sell your home.

What is a Short Sale?

A Short Sale, also known as a pre-foreclosure sale, is when you sell your home for less than the balance remaining on your mortgage. If your mortgage company agrees to a short sale, you can sell your home and pay off all (or a portion of) your mortgage balance with the proceeds. You may also be eligible for the government’s Home Affordable Foreclosure Alternatives Program (HAFA) which offers short sale and DIL options.


A short sale is an alternative to foreclosure and may be an option if:

• You are ineligible to refinance or modify your mortgage
• You are facing a long-term hardship
• You are behind on your mortgage payments
• You owe more on your home than it’s worth
• You have not been able to sell your home at a price that covers what you still owe on your mortgage
• You can no longer afford your home and are ready or need to leave
  
  

What are the benefits of a Short Sale?

• Eliminate or reduce your mortgage debt
• Avoid the negative impact of a foreclosure
• Start repairing your credit sooner than if you went through a foreclosure
• May be able to get a Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) than if you went through foreclosure (at least 7 years)
  
  

What is the process for a Short Sale?
If you qualify for this option, the process is similar to a normal real estate sales transaction. You will work with a real estate agent to market and sell your home. However, your mortgage company will also be working with you and your real estate agent every step of the way to:

• set the sale price (based on current market value),
• collect financial information and negotiate with other lien holders (i.e., your second mortgage company) if applicable,
• review acceptable offers,
• agree to the terms of the sale once a buyer is in place, and
• work with the buyer’s real estate agent and mortgage lender to finalize the sale.
  
  

In some cases, you may be eligible to receive relocation assistance to use toward your moving expenses and to make the transition to new housing easier.

A Short Sale may take up to 120 days, but this could be shorter or longer depending upon your specific situation. If you are unable to sell your home, you may be able to transfer the ownership of your property to the owner of your mortgage (also called a Deed-in-Lieu of Foreclosure).

 
Next steps

	Gather your financial information—Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need: your mortgage statements, including information on a second mortgage (if applicable) your other monthly debt payments (e.g., car or student loans, credit card payments), and your income details (paystubs and income tax returns).
	Explain your current situation—Be ready to outline your current hardship and explain why you are having trouble making your mortgage payment, the reasons why this is a long-term problem and inform your mortgage company that you want to sell your home to avoid foreclosure. Your mortgage company will need to understand the reasons why you are having difficulty in order to find the right solution for you.
	Contact your mortgage company—Tell them you are interested in a Short Sale and you want to see if you qualify.
	Contact a licensed real estate agent—Tell them you are interested in listing your home for sale (if you have not already done so).

Your mortgage company wants to help you avoid foreclosure and, in most cases, will be willing to work with you. The biggest mistake you can make is to wait any longer to take action. Contact your mortgage company today to determine if you are eligible for a Short Sale.

Real Estate Investing With Short Sales

From Short Sale Daily News:
Now is the time for folks who can take advantage of today's real estate market to beef up their investment portfolios with short sales. Banks are closing them faster than ever before and, from start to finish, it’s not as painful anymore. There are plenty to choose from, and short sale homes make good investments because they are priced at or below market. As a general rule, short sales take a little longer to buy than the foreclosed homes (but not always) and they are in much better condition most of the time.

As agents, it’s important to remind our buyers not to be afraid of short sales. In many cases, the banks will pay closing costs and an HOA transfer fee. This is not always the case in a foreclosure sale. Some of the home foreclosures are in pretty rough condition and they will cost some cash to fix up enough to be rented or lived in.

Consider talking to your investors and buyers about short sales as we’ve seen a jump in short sale purchases by investors which is great news for short sale agents.

Sellers complete a successful short sale and stay current on your loan and you can BUY another home – no kidding.

There is a new government program that allows people to do a short sale and move to another more affordable home, with no penalty, so long as their payments are current.

Right now one out of every three homes is upside down in our state, Colorado, and statistics show this is going to continue for up to 10 more years. Numerous other states like Nevada and Florida have similar issues.

The next decade of housing will be suppressed and how exciting that the government is doing something about it. Keep in mind, the program only applies to homeowners who are current and have no late payments. Also, make sure your sellers get pre-approved. It requires a minimum 620 credit score. The program is limited to sales prices of about $360,000 and require at 3.5% of the home price as a down payment. Contact lenders in your area for more information on this new program. Then be sure to educate and inform your clients of this program.

CLAREMONT INFORMATION SYSTEMS LAUNCHES SHORT SALE PROLOGIC IN NEVADA

Software service provides real estate professionals with access to real time data for thousands of unlisted distressed properties across Nevada

(Las Vegas, NV)– March 7, 2011– Claremont Information Systems, the real estate industry’s leading provider of distressed real estate data, today announced the launch of its online software system, Short Sale ProLogic. Recently launched in Colorado, this powerful online distressed property tracking tool is now available to real estate professionals in Nevada. It allows first access to nearly 8,039 foreclosures and pre-foreclosures in Nevada.

“For the fourth consecutive year, Nevada has the highest foreclosure rate in the country with one in nine homeowners in Las Vegas receiving a foreclosure filing in 2010,” said Ryan Lantz, managing director of Claremont Information Systems. “We launched Short Sale ProLogic in Nevada to help real estate professionals accurately assess the market to retool their businesses to meet the changing needs of the market while also providing the best possible assistance to homeowners facing the stress of foreclosure.”

Powered by Short Sale ProLogic’s ActiveTrack™ technology, agents can identify real-time unlisted distressed property leads to stay way ahead of competitors.  Agents know immediately when specific properties enter foreclosure, when foreclosure sales information is published, when the lender sets the minimum bid amount, when bankruptcies are filed, when a property becomes an unlisted REO and much more. 

Customized functionality allows agents to define a market search and determine a preferred method of instant notification (email or SMS text). The technology not only alerts agents of leads, but continues to report on a customized list of properties. 

KEY FEATURES

• Real-time distressed property data
• Accurate information about what’s happening in a given neighborhood or zip code
• Customizable functionality
• Instant notification via email or SMS text
• Complete real estate market intelligence
• Tools to support value and pricing strategy
• Opportunities to identify potential customers who don’t think they have any options
• Industry leading short sale negotiations and distressed property transaction management 

To try ShortSale ProLogic risk free for 30 Days in Nevada and increase your business, contact the team at Claremont Information Systems via email at support@ShortSaleProLogic.com or call 1.888.404.4766. No credit card is required.

About Claremont Information Systems
Claremont Information Systems is a technology company created specifically to bring efficiencies to the distressed real estate market. Founded in 2008, Claremont provides real estate professionals with reliable, real-time data to make actionable decisions on foreclosed properties. Currently covering the Colorado, Arizona, Nevada, and California markets, Claremont data is delivered to consumers through Web interface and sold in report format to Institutional Companies and Governmental Agencies. For more information www.ShortSaleProLogic.com or call 1.888.404.4766.

Foreclosure Friday Report

Foreclosure Friday Report 

Short Sale ProLogic Foreclosure Friday Report

 

This morning, we looked into the Colorado zip code 80238 using Short Sale ProLogic. We found an astounding number of properties currently going through the foreclosure process: 1,754! What is worse, only 112 of those properties are actually listed.

There is an incredible opportunity for Realtors to use this information to not only make money, but to help guide the homeowners facing this crisis to a better solution. It is a win-win! Short Sale ProLogic is able to provide Realtors with the right tools to be able to approach the homeowner, guide the homeowner and take them through the short sale process.

If you haven't done so already, head to shortsaleprologic.com and see what this tool can do for you. Trust us, it is worth your time.

True or False? Common Foreclosure Myths That Homeowners Should Know About

COMMON FORECLOSURE MYTHS

Shannon Peer, Colorado's Foreclosure Prevention Hotline Director uncovers several foreclosure myths that homeowners should know about:

Myth: You need to be two to three payments behind before the bank can help.
Truth: Contact you bank even before you miss your first payment.

Myth: The bank is stalling and losing my paperwork because they want to foreclose on my house.
Truth: The bank does not want to own your house.

Myth: The bank has an obligation to work with every homeowner.
Truth: Most banks want to work with homeowners, but not every bank is required to work with homeowners.

Myth: A loan modification can fix every foreclosure.
Truth: There a many different workout options used to prevent foreclosure.

Myth: All loan modifications are the same.
Truth: There are lots of differences among loan modifications.

Myth: The foreclosure process stops once you have submitted your documents for review.
Truth: The foreclosure process will more than likely continue while your documents are being reviewed.

Consumer Foreclosure Tips: You Still Have Options

Many homeowners across the  metro area are facing foreclosure and don’t know what to do – it’s stressful, scary and often embarrassing,  but contrary to belief there are things that can be done.

If you are like millions of Americans and you are having trouble keeping up with your mortgage payments or your property has already gone into foreclosure, you have options. Foreclosure doesn’t happen overnight!

STAGE 1 – YOU ARE HAVING TROUBLE KEEPING UP WITH PAYMENTS AND/OR HAVE MISSED ONE OR MORE PAYMENTS

1)     Don’t ignore the problem! 

Open all letters and take all phone calls from your lender so that you have all of the information. Often the first notices have foreclosure prevention options but it is imperative to react immediately.

2)     Contact your lender immediately to discuss a loan modification program.

Explain your situation and what you have been doing to resolve it. There may still be time to make one payment to prevent yourself from falling three months behind.

3)     Contact a housing counseling agency toll free at (800) 569 - 4287.

Be sure to contact an HUD approved housing counselor to avoid scams.

STAGE 2 – YOU HAVE RECEIVED A FORECLOSURE NOTICE (MISSED 3 PAYMENTS OR MORE)

1)     Contact a housing counseling agency toll free at (800) 569 - 4287.

A housing counselor can still help and a loan modification may still be a possibility.

2)     Take phone calls from your lender.

Explain your situation and what you have been doing to resolve it. There may still be time to work something out with the lender. The time between first notice to sale varies by state but foreclosure is NOT the only option at this point. You have until the date of the sale to make arrangements with your lender or pay the total amount owed.

STAGE 3 – A PUBLIC TRUSTEE’S SALE DATE HAS BEEN SCHEDULED

1)     Contact a Realtor who Specializes in Short Sales (The experts at Short Sale ProLogic can provide a list of referrals)

After all other options have been explored, the next step is to sell your home in a short sale. A short sale is where the lender agrees to sell at a moderate loss rather than pursuing foreclosure.  Proceeds are turned over to the lender.

2)     Avoid Foreclosure at all Costs

Homeowners often don’t know that they will be responsible for all legal fees incurred by the lender in addition to losing their home and damaging their credit scores. Foreclosure is the WORST option and also an avoidable option. Contact a realtor to determine your short sale options.

Foreclosure Friday Report

Short Sale ProLogic Foreclosure Friday Report

 

Today we searched the zip code 80104 for Castle Rock, Colorado using Short Sale ProLogic and found within a 3-mile radius, 208 properties are currently going through the foreclosure process. ONLY 14 of those properties are actually listed. That is just 6%.

Realtors: you can help! Not only does this information present you with a very profitable opportunity, but it also gives you the tools to actually help guide the people going through this painful process to achieve a better ending. 

www.shortsaleprologic.com

Avoiding Foreclosure: How To Help

Going through the foreclosure process? If not you, do you know someone who is? Unfortunately, chances are you do, but you don't know it yet. Here is a testimonial from a Realtor who has just begun using Short Sale ProLogic:

A person near and dear to me recently went through a painful foreclosure on her family's primary residence, all the way to the point of having the home sold at auction and getting the eviction notice posted on her door.  They had been working for months in advance trying to forestall the inevitable, but, strangely enough, I don't sense that they ever truly believed a foreclosure and eviction could become a reality in their lives until it was, literally, at their doorstep.  

At that point, it became scramble time when they had to swallow the hard pill of reality and scurry to find a rental and then box up their life before the authorities did it for them.  I honestly don't believe they ever thought about taking the short sale route and I'm quite certain no Realtor ever approached them to educate them about that option.  We didn't even know they were facing this problem or I would have pointed them in your direction [ShortSaleProLogic.com]. 

I think this painful and embarrassing crisis could have been avoided had a knowledgeable and gentle real estate counselor offered a better solution.

Think if this Realtor had only known about this person's situation before it was too late.  Short Sale ProLogic gives Realtors the tools to find the properties in foreclosure in an particular area and get the necessary training to be able to approach the family with compassion and knowledge of the foreclosure process. This way, they are able lead them in the right steps to save their credit, short sale their home and help save the market values of other homes in the area.

Don't wait until it is too late.  

The Bleakest Year in The Foreclosure Crisis Has Only Just Begun

Two reports from separate credit rating agencies are drawing the same conclusion: foreclosures will reach new heights this year, even after setting records in 2010.

It was hoped until recently that mortgage delinquencies and subsequent foreclosure filings had peaked. Until the peak occurs, the stockpile of properties facing imminent default -- the so-called "shadow inventory" -- will continue to glut real estate market supply, depreciating home values.


Standard & Poor's currently estimates that the principal balance of distressed homes amounts to about $450 billion. S&P expects that it will take 49 months to clear the supply of distressed homes on the market in the U.S. -- an 11 percent increase over the previous quarter and a considerable 40 percent increase from 4Q 2009.

Associated Press reports that "the bleakest year in the foreclosure crisis has only just begun." Lenders are poised to take back more homes this year than any other since the U.S. housing meltdown began in 2006, according to AP.  About 5 million borrowers are at least two months behind on their mortgages and industry experts say more people will miss payments because of job losses and also loans that exceed the value of the homes they are living in.


"2011 is going to be the peak," said Rick Sharga, a senior vice president at foreclosure tracker RealtyTrac Inc. The firm predicts 1.2 million homes will be repossessed this year.

The blistering pace of foreclosures this year will top 2010, when a record 1 million homes were lost, RealtyTrac said Thursday. One in every 45 U.S. households received a foreclosure filing last year, a record 2.9 million of them. That's up 1.67 percent from 2009.

One in every 17 Arizona households got a foreclosure filing last year, while one in 18 received a notice in Florida. California, Utah, Georgia, Michigan, Idaho, Illinois and Colorado rounded out the top ten states with the highest foreclosure rates.

This is markedly different from the situation one year ago, when tax incentives started to have what turned out to be a short-term effect on the housing market.

Foreclosures have affected not only local homeowners, but local economic development projects, as well. The Cancer Treatment Centers of America is in the process of clearing the final hurdles to ramp up construction on the new regional cancer hospital in Newnan.


Construction on the new 50-bed, 200,000-square-foot hospital was originally supposed to begin last month, but the CTCA filed for a one-year extension due to problems with gaining access to the land title. The state Department of Community Health approved that request, setting a new date of Dec. 17, 2011, for construction to commence on the $179,767,423 facility.

Economic and housing experts tend to agree that the slide in the real estate market will likely extend through at least the end of 2011, and probably even longer. Nationally, for almost two years now, foreclosures have remained above 300,000 per month, an unprecedented event in American history.

Visit www.shortsaleprologic.com today to find the properties going through foreclosure in your area and what steps to take next.
From Times-Herald.com

No Property Price-Point Immune to Foreclosures

 

Myth: most foreclosure properties are located in low-income housing areas.

Fact: Within a 3-mile radius of Cherry Hills Village (where the average home price is $1,241,748), 352 properties are currently going through the foreclosure process.

No property price-point is immune to the foreclosure crisis, giving Realtors hundreds of opportunities in ANY area in the state. Even better (sort of): how many of the distressed properties within the 3-mile radius of Cherry Hills Village are actually listed?

22. That is just 6.25%. 

Realtors: head to ShortSaleProLogic.com and see how this extremely powerful tool can help you.

Short Sale Firms Aid Realtors

From InDenverTimes.com:
Heather Davis is a “short-sale goddess.”
The deity designation was bestowed on her by Catherine Rogers, a Coldwell Banker broker in Fort Collins, who has used Davis to facilitate short sales, the complicated and frustrating process in which lenders agree to take less than the mortgage amount. Davis is part of a growing, cottage industry – short-sale transaction management – that help take the hassle out of the mind-numbing but growing part of the home sales market in the Denver area and across the nation.

“Heather is such a star,” said Rogers  a top Coldwell broker. Collins said she had a “tough experience” with other groups in the industry, before learning about Realty TMS, the Broomfield-based company Davis works as a short-sale transaction specialist. Rogers praised Davis for her connections with banks, procedural knowledge and communication skills.”I’m very flattered,” by Collins’s praise, said Davis, who said on average she helps Realtors close six short-sales each month. Davis said she encourages any broker tackling a short-sale transaction to enlist the help of a reputable transaction specialist. “Short-sales are really complex and every bank handles them a little differently,” she said. “And it can be very emotional. I typically have to speak with the seller to get financial documents and information.”

Help relieves short-sale stress
Tara Rogers, chairwoman of Realty TMS, said that her firm “basically takes a lot of the headaches out of handling a lot of the administrative process that eat up a lot of time. That way, the Realtor can focus on keeping his or her pipeline filled and serving their clients.”

The company, which has been offering the short-sale transaction management service since 2008, is working with several hundred brokers along the Front Range.” She has signed an agreement with RE/MAX Alliance, as well as Land Title Guarantee, a sponsor of InsideRealEstateNews. Brian Hamilton, a senior vice president at Land Title Guarantee, said it became apparent that because of the huge volume of short sales of short sales – by some estimates accounting for 20 percent or more of sales in the metro area – that it needed to offer its clients a solution for dealing with the complicated process.

Land Title  chose Realty TMS
“We investigated starting up a department within Land Title,” but rejected that idea. Instead, it out-sourced the service to what it determined to be “the best of class.That is how we found Realty TMS. They already had two years of experience behind them. They knew the lenders. They knew their submittal process. Their fee structure seemed fair.” TMS Realty charges an initial fee of $299 and another $699 fee at the closing. The former, in about 80 percent of the cases, is paid by the home seller, while the latter typically is paid by the lender at the closing, Rogers said.

TMS Realty has relationships with more than 65 banks, including all of the big players, such as Bank of America, Wells Fargo, Citicorp and others. “We have contacts at each bank and we have a proprietary system that provides all the different paperwork required by each bank. For example, Wells Fargo might want some additional paperwork and forms that other banks don’t require. So we have all the forms on file and know what to include when we send a package to the lender.”

Fees vary
Some short-sale management firms charge on a percentage of the deal basis, but Rogers said she thinks a flat fee is more fair. ‘The reality is that we do not see a big difference in the process, whether it is a $600,000 or $250,000 home,” she said. “We don’t feel we are entitled to take a bigger fee just because it is a more expensive sale.”

Rogers said the industry is “fragmented,” right now, with a lot of mom-and-pop operations. “Some title insurance companies offer it as a service. Sometimes someone who used to work with a title insurance company will offer their services to a Realtor.” TMS Realty recently signed an agreement as a preferred vendor with Short Sale ProLogic, which sells a search engine to Realtors that helps them quickly and easily find short-sale prospects. Short Sale ProLogic doesn’t make any money from the short sale management companies it recommends, but it does screen them first. It doesn’t have an exclusive relationship with TMS.

Short Sale ProLogic sees value
“We’ve got four or five of them engaged in our system right now,” said Ryan Lantz, a co-founder of Short Sale ProLogic and its parent company, Claremont Information Services. Lantz doesn’t want to publicly name all of the short-sale management companies he has on board, but another one he is high on is PMH Financial. And it has another company on its roster, Carpe Diem Partners,  “whose claim to fame is that it doesn’t charge the Realtor or the seller a fee. It negotiates its fee directly from the banks. There are all different kind of fee structures out there.” Lantz said it is crazy for a real estate broker not to use a short sale transaction manager.

“If a Realtor is going to have three or four short-sale listing that becomes a full-time job,” he said. “It is really pushing that rock up the hill. Every minute a Realtor spends on hold or negotiating with a bank, is time he could better spend on listing presentations, marketing a property or finding more listings. If you have a partner like a Realty TMS, they are doing the heavy listing for you.”

Success rate climbs
He said statistics show that a broker tackling a short sale on his own, has only a 20 percent to 24 percent success rate. But if they use a transaction management firm, the success rate jumps to 75 percent to 82 percent.

“So they will be able to close almost four times the amount of short sales,” Lantz said. “If you are closing only one out of five of your deals, that is not a sustainable business model.” Despite the benefits, Lantz said that few Realtors he meets with has ever heard of them. “The No. 1 response I get is, “What is a short-sale transaction management company? The No. 2 response I get is, “I work with some lady.”

Ryan Carter, a broker with 8z Real Estate, fits into that former category. Some brokers almost exclusively do short sales, but Carter has only done one. But when told about TMS Realty, he was intrigued by the concept. “That sounds like a great model and their fees sound reasonable,” Carter said. “Although I’m not immersed in doing short sales like some brokers – they’re not a huge part of my clientele – I think a short-sale facilitator is worth having on your team. They can be very valuable.”

Questions to ask:
Realtors, however, should screen companies before they decide who to choose, advised Lantz, of Short Sale ProLogic. Questions should include:

• Who is going to handle the files? A team or an individual? Lantz said he prefers having one individual assigned to each file.
• The number of short-sale closings it has facilitated and its success rate?
• Are they experienced with dealing with HOA liens?
• Can they help negotiate removing any potential deficiency judgements against the seller?

“And always get some referrals from other Realtors,” Lantz said.

Regulation needed?
Lantz said that he expects a great deal of consolidation in the field. He also said he would like to see it regulated, something that may not be endorsed by everybody in the business. “Right now, it is is totally unregulated,” Lantz said. “You and I could open a short-sale transaction company tomorrow. No degree or experience is required and you don’t have to pass a test.” Marcia Waters, director of the Colorado Division of Real Estate, said that it would be up to the General Assembly to decide whether the industry should be regulated.

She said she is not aware of any complaints against companies engaged in short-sale transactions, but even if she received complaints, she could not pursue them, unless it was alleged that they were negotiating  between the buyers and the sellers, as that could be construed as selling real estate without a license.

In any case, Waters said that an improving housing market may eliminate the demand for the services.
“If we continue to see foreclosures drop and that ultimately leads to fewer short sales, there may not be a need for these kind of companies,” she said. For now, however, most observers expect the short-sale market to continue to grow in 2011 and probably 2012, and possibly beyond.

And that gives Heather Davis, the short-sale transaction specialist with Realty TMS, plenty of time to add a word to her business card: “Goddess.”