Short sale vs. foreclosure – May. 8, 2009.  from CNNMoney.com

A. A short sale, in which you negotiate with the bank to sell your home for less than you owe on your mortgage, will have a dramatically negative affect on your credit.

A consumer who has been through a short sale could see a drop in her credit score of up to 200 points, essentially the same decrease as if the homeowner had gone into foreclosure, says John Ulzheimer, president of consumer education for Credit.com.

And like a foreclosure, the negative mark will pull down the score for seven years.

That said, if you’re underwater on your mortgage and you need to move, a short sale is a better option than foreclosure.

Going through foreclosure will make it very difficult for you to get a loan for at least three to five years; if you’ve done a short sale, you may be able to qualify for a new mortgage within two years.

Published: April 24, 2009

Home sales in Virginia — including the Richmond area — continue to fall along with housing prices, but signs are emerging that the worst could be over, according to a report released yesterday by the Virginia Association of Realtors.

In Virginia, the median price of a house, with half selling for more and half for less, was $223,221, down 14.1 percent from the year-earlier period, according to the Realtors’ report.

However, the price was up 7.8 percent from the October-to-December period of 2008, indicating that prices could have reached bottom, housing experts said.

Statewide sales in the first quarter dropped 7.1 from the previous quarter and 4.7 percent from a year ago.

In perspective, sales are down 61 percent from their peak in the third quarter of 2005.

In the Richmond area, sales fell 18.2 percent from a year ago. The median sales price dropped 11 percent to $198,702, according to the report.

The central Virginia report shows the average number of days a house spends on the market in the Richmond area fell from 81 in January to 72 in March.

Most houses sold in the Richmond area in the first quarter were in the $100,000 to $199,999 price range. The next popular price range was $200,000 to $299,999. Only six houses sold for $1 million or more.

Elsewhere in Virginia, Prince William County and Manassas — with the most foreclosures in the state in 2008 — recorded the sharpest increase in sales, up 75.9 percent in the first quarter from a year ago. Median sale prices there fell 37.2 percent to $167,452 — the largest percentage drop in the state.

Sales in Northern Virginia rose 17.5 percent from a year ago, and median sales prices fell 19.5 percent to $325,400, the highest price in the state.

via Hints of upturn evident in Va. home sales | Richmond Times-Dispatch.

The median price for a single-family house fell 14% to $169,000 in the first quarter from a year earlier, the National Association of Realtors reported.

The trade group said first-time home buyers accounted for half of all purchases in the quarter, and many of them zeroed in on foreclosed homes. That dragged down the median, the Realtors said.

The median price for the latest quarter is down 26% from a peak of $227,600 in the third quarter of 2005. The latest median price was down from a year earlier in 134 of the 152 metro areas included in the survey.

Source: U.S. Median House Price Declines 14% – WSJ.com.

Source: RealtyTrac: April foreclosures rise 32 percent

The number of U.S. households faced with losing their homes to foreclosure jumped 32 percent in April compared with the same month last year, with Nevada, Florida and California showing the highest rates, according to data released Wednesday.

More than 342,000 households received at least one foreclosure-related notice in April, RealtyTrac Inc. said. That means one in every 374 U.S. housing units received a foreclosure filing last month, the highest monthly rate since the Irvine, Calif.-based foreclosure listing firm began its report in January 2005.

About 63,900 homes were repossessed in April, down 11 percent from about 71,700 in March, RealtyTrac said. But the mortgage industry has resumed cracking down on delinquent borrowers after foreclosures were temporarily halted by mortgage finance companies Fannie Mae and Freddie Mac, together with many other lenders.

On a state-by-state basis, Nevada had one in every 68 households receive a foreclosure filing, down 18 percent from March but still the nation’s highest rate. In Florida, one in every 135 households received a filing in April. For California, the rate was one in every 138 households.

Rounding out the top 10 were Arizona, Idaho, Utah, Georgia, Illinois, Colorado and Ohio.

My phone rings from my advertising, or my email fills up from my online lead generators.

They leave you a message with their name and property address … what’s your next step?

Here is one step that I follow.

I visit my local county government website.

You can find out some very useful information like who is on the deed to the property, the last sale date, last sale amount, bedrooms, baths, square footage, and much more in just a couple minutes.

This helps to qualify the lead and gives you additional information before you talk to the seller.

Sometimes I discover that the person contacting me is not the seller – I know right away that I’m dealing with a wholesaler, or perhaps someone who didn’t realize they didn’t own the house.

Here’s Your Homework:

If you are unfamiliar with your local county website, go google it now … “<county name> <state> county website”.

Once you find it, see how much information you can uncover before even talking with your seller.

THE HOUSING BUST JOHN F. WASIK

Published: May 11, 2009

We might be looking at a lost generation for U.S. home values.

Far too many analysts are calling a bottom to the housing market after home prices in 20 metropolitan areas declined at a slower pace in February, according to the Standard & Poor’s/Case-Shiller Index.

Don’t be blinded by the glint of optimism in headlines about rising consumer confidence and slowing price declines. Demographic and market realities tell a more sobering story.

You won’t see a widespread housing rebound in an economy in which 600,000 jobs a month are lost and foreclosures ravage the most overleveraged areas. These are just the visible barriers to a recovery.

Mortgage lending also has been an unusually tightfisted process of late. Lenders are demanding a 20 percent deposit for home purchases and want impeccable credit ratings. About 45 percent of U.S. banks surveyed by the Federal Reserve said they had “tightened their lending standards on prime mortgages.” I suspect that number is much higher.

Then there’s the reality that the market is glutted. A record 19 million homes stood empty at the end of 2008.

via Market realities mean rebound is years away | Richmond Times-Dispatch.

Published: April 23, 2009

The sale of previously-owned homes in Virginia fell 4.7 percent in the first quarter from the same period a year ago, according to a report released this morning from the Virginia Association of Realtors.

The median sales price, with half the houses selling for more and half for less, was $223,221, down 14.1 percent from the year-earlier period.

But the price was up 7.8 percent from the last quarter of 2008, indicating that prices may have reached bottom and are rising.

The number of unsold homes on the market at the end of March nationally fell 1.6 percent from a month earlier to 3.7 million. But due to the slumping sales pace, it would still take almost 10 months to rid the market of all of those properties.

via Reports cite Va., U.S. home sales declines | Richmond Times-Dispatch.

In July of 2008, the Housing and Economic Recovery Act established a temporary refundable first-time homebuyer credit equal to 10% of the purchase price of a principal residence, up to $7,500 ($3,750 if married filing separately).

The credit applied to first-time homebuyers who purchased a home on or after April 9, 2008, and before July 1, 2009.

In 2009, legislation passed that extends the credit to qualified first-time home buyers through November 30, 2009.

It also expands the credit from $7,500 to $8,000 for home purchases made after December 31, 2008, and before December 1, 2009.

Generally, a person qualified as a first-time homebuyer if your potential buyer, and their spouses were married and did not own any other principal residence during the 3-year period ending on the date of purchase.

The American Recovery and Reinvestment Act also allows your homebuyers to elect to report a qualifying home purchase made in 2009 as if it occurred on December 31, 2008 (allowing them to claim the credit on 2008 federal income tax return).

What does this mean for your retail buyers? It means that many 1st time buyers that qualify for financing are basically getting paid by the government to buy their new home! That’s why it’s called a stimulus…

What does all this mean to you? Well, with home prices and interest rates at historic lows, this great tax credit program gives potential buyers more incentive than ever to buy their new home by working with you.

One of my students has a house under contract. 

It’s a pretty good deal for his market.  $7000 for the house, need $15,000 in rehab.  Retails about $60K.  It’s in a war-zone area, so the potential buyer is a landlord who wants a cheap cashflowing rental.

He put out handwritten marketing signs near the property:

please help!
must sell house in 3 days

handyman special
call now

investor special
home for sell

100 calls in a day was an understatement.  He felt overwhelmed with tire-kickers and people wasting his time.

We talked a little today about how to handle that kind of response. 

Take charge of the conversation.

As we talked, it became clear that he wasn’t in charge of the conversation.  He was nervous on the phone, and people were walking all over him.

After we talked, I gave him some conversational pointers:

• Don’t just answer their question, listen for their need.
• Are they first time home buyers?  Can they handle a $15,000 rehab job?  If not, this house likely isn’t for them.

He learned some other phrases and spent the rest of the afternoon returning calls with confidence, not frustration.

Teaching sells.  Period.

In this market, people are no longer willing to spend $5000 to attend a 3 day boot camp.  Disposable income is no longer that much.

To survive in the current real estate market, one needs continuing education.

Yet how does one get that kind of education?

Introducing NVALEO…

Complete Virtual Training System

Imagine learning from industry experts in the convenience of your own home, at your own time and on your HighDef TV.

They come to you.

No longer do you need to shell out $2000 in travel expenses to see them.

Whether you are completely new to real estate or you are a seasoned investor you get all of the training and tools that you need to handle every aspect of the Real Estate Investing Life Cycle.

nValeo’s Accelerated Training System is a remarkable collection of entertaining & informative videos you won’t find anywhere else.

Learn at your own pace. All courses are archived online giving you the ability to watch, listen or review at your convenience.

Unlimited monthly access to The Real Estate Enrichment System™ is only $199 a month.

Real Estate Investing Back Office.

the nValeo system provides you with a web-based Back Office to manage your deals.

How to start with nValeo

To access this high quality training, you start with acquiring the nValeo HD Pro Pack.  A little black box that hooks up to your TV.  Our “experts” hooked it up and had it working in under 45 seconds.

The NVALEO HD Pro Pack

INCLUDES:

- NVALEO HD
- NVALEO Data Stick that contains over 30 hours of video training and downloadable files including:
- The Roadmap to Residential Real Estate Riches
- Making The Shift Into Commercial Real Estate
- How To Live In Your Dream Home For Less Than The Property Taxes
- NVALEO Pro Workbook
- First Month Real Estate Enrichment Membership
Your cost – $899

To access this High Quality training, your start up cost is only $899, + $199 a month ongoing subscription.

Make Money Reselling nVALEO

Why Direct Sales through nValeo?

Direct Selling is a $32 billion dollar business, with 15 million direct sellers in the United States.

Earn Extra Money for:
-  Investing
-  Travel
-  Savings
-  Education
-  New purchases
-  Living comfortably

Create multiple income streams to enjoy time and financial freedom.

Become an Apprentice with nValeo…

Buy your HD Propak and subscription, and then enroll a NVALEO Independent Representative for and additional $98.

Total start-up cost is $997 and ongoing cost is only $199 a month.

Remain an active Apprentice by selling a Pro Pack for $899 and maintaining at least one monthly Real Estate Enrichment System customer for $199 (200PV Personal Volume) per month.

*Purchase of products and/or monthly memberships are not required to participate in compensation plan. Retail sales can be used for qualification.

nValeo Pro Pack Sales Bonus…

Earn $250 for every Pro Pack you sell on your 1st Level.

Personally sell 5 and you earn $1,250,

Sell 10 to earn $2,500

When you sell 20 you will earn $5,000.

Level 2 – Earn $125 for every Pro Pack sale.

Personally enroll 5 distributors that all sell
5 Pro Packs: 5 x 5 = 25 x $125 = $3,125

Level 3 – Earn $50 for every Pro Pack sale.

Level 4 – Earn $25 for every Pro Pack sale.

Level 5 – Earn $50 for every Pro Pack sale.

Pro Pack sales bonuses are unlimited.

The first Pro Pack Sale made by your personally enrolled distributors qualify as 1st level bonus for you. Pro Pack Sales Bonuses pay up to 5* levels deep.

*Must maintain at least one personal Monthly Enrichment Membership sale for $199 (200PV)
*Qualifications are detailed in complete compensation plan.

Become a Builder…

Start two teams.

Enroll one active Apprentice* on your left team and one active Apprentice* on your right team.

You are now a Builder.

*An Apprentice is a Distributor that has made at least one Pro Pack sale and has at least one Monthly Enrichment System member.

Then Develop Builders…

Help all the Apprentices* you enroll become Builders by helping them enroll one Apprentice* on their left team and one Apprentice* on their right team.

*An Apprentice is a Distributor that has made at least one Pro Pack sale and has at least one Monthly Enrichment System member.

nValeo Team Commissions…

You are paid Team Commissions on the sales volume created by your teams.

Commissions are calculated on your lesser leg’s volume. Each Pro Pack sale and active Monthly Enrichment System carries 200 points.
Examples of your potential Team Commissions:
25 Systems per team = $500
100 Systems per team = $2,000
200 Systems per team = $4,000
500 Systems per team = $10,000
1,000 Systems per team = $20,000
Up to $10,000 per week/maximum

Additional Ways to Earn Income…

Retail Sales to Customers

$25 per month for each monthly Enrichment System customer
$250 per Pro Pack retail sale

Developer Check Match*
- Receive a percentage of Team Commissions earned by members of your personal enrollment group

Leadership Pools*
– Share in up to 2% of company volume

*Certain rank advancement qualifications are required to participate in these income levels. See NVALEO Group compensation plan for details.

What To Do Next with nValeo…

1. Enroll by calling (804) 915-9475

2. Make a contact list (your cell phone).
3. Set your goals.
4. Use the system and tools.
5. Develop your knowledge as you build your business.
6. Host a NVALEO event at your home.
7. Share NVALEO with everyone you know.
8. Reach your goals and live your dreams!

Go and Watch the Movie that Everyone is Talking About at www.nValeo.com!

Fill Out an Application and Fax it Back to Our Office at 1-804-915-9476