The sale price of homes continues its downward spiral. Forbes this week is saying that it doesn’t matter where you live, you are not invulnerable. From Bel Air where a 31% decline has been seen to Greenwich Village where the drop is 45% during the past year, we are surrounded by a wide-ranging epidemic.
It is like looking at a Polaroid of the economy; not only have prices fallen, but home sales themselves have been following that downward spiral. The available inventory, as you can guess, has increased tremendously, and “It’s a buyer’s market” has never been truer!
We’ve been saying this for a long time, and we will continue to proclaim that this is the best of times for the savvy investor who knows where to put their money by following up-to-date leads, and who has the ability to hang on to a prime piece of property for a while. The market is changing; if you haven’t yet done so, now is the time to get in!
Wednesday, July 29, 2009
Thursday, July 23, 2009
…AND YOUR BUSINESS CONTINUES TO GROW….
Mid-year 2009, and “foreclosure” is a word that has not gone away. According to one expert, approximately ½ of all homes sold today are a result of properties sold through short sales or the foreclosure process. Let me repeat that -- one-half! That means neighborhoods across the country are being devalued at an astonishing rate. Think of it…if an owner near you moves out or is forced out of their home and the property stands empty and deteriorates, the result is your home’s value (and the value of surrounding properties) is negatively affected. Multiply that by the large number of neighborhoods across the country experiencing the same problems and you can see that now is the time for savvy investors to strike deals and also help families in trouble.
No matter what area of real estate you are in, as a seasoned or even fresh real-estate professional, you can be instrumental in mitigating some of the effects of this prevalent swing in losses. Just remember that this method of business is growing and that means there are unlimited possibilities for you!
No matter what area of real estate you are in, as a seasoned or even fresh real-estate professional, you can be instrumental in mitigating some of the effects of this prevalent swing in losses. Just remember that this method of business is growing and that means there are unlimited possibilities for you!
Wednesday, July 15, 2009
New Michigan Foreclosure Law Went into Effect on July 5th, 2009
The new state foreclosure laws in Michigan were signed on May 20th, 2009 and went into effect on July 5th 2009. Together, the three laws (2009-PA-0029, 2009-PA-0030 and 2009-PA-0031) aim to increase the duration of the foreclosure process. Currently foreclosures in Michigan happen in about 5 weeks. These three new mandates will delay the foreclosure for 90 days, or approximately 12 weeks.
Under this new foreclosure law, lenders must send a homeowner a notice of default and give them 14 days to contact a credit counseling advisor. If the homeowner responds to the letter, they are given 90 days to attempt to modify the loan with the lender.
What does this mean to Default Research clients? These laws provides a great opportunity for those interested in loss mitigation, credit counseling, real estate investing, short sales, and/or bankruptcy. With more time in the pre foreclosure stage, our clients can work with homeowners before their properties go to sale.
Many people have avoided working in Michigan because of the quick foreclosure process. That process is no longer in effect and now is an excellent opportunity to capitalize on the new law while helping homeowners in distress.
Under this new foreclosure law, lenders must send a homeowner a notice of default and give them 14 days to contact a credit counseling advisor. If the homeowner responds to the letter, they are given 90 days to attempt to modify the loan with the lender.
What does this mean to Default Research clients? These laws provides a great opportunity for those interested in loss mitigation, credit counseling, real estate investing, short sales, and/or bankruptcy. With more time in the pre foreclosure stage, our clients can work with homeowners before their properties go to sale.
Many people have avoided working in Michigan because of the quick foreclosure process. That process is no longer in effect and now is an excellent opportunity to capitalize on the new law while helping homeowners in distress.
Thursday, July 9, 2009
TAKE IT FROM A U.S. SENATOR: “STUDY, STUDY, STUDY!”
Former Senator and Presidential candidate Bill Bradley is known for saying, “when you aren’t studying, somebody else is.” And, that holds true in real estate too – especially now! When you aren’t studying, somebody else is learning that pre foreclosure and foreclosed properties have become essential elements of today’s real estate market and no matter what segment of the industry you are in, from broker to seller, lawyer to lender, the current times will definitely find you handling pre foreclosure or foreclosed properties.
While Bradley didn’t offer any specific ways to study and improve your knowledge base, we have several solid methods for you to study when that other person is too.
1. For example, there are conferences to attend that will help hone your skills in working with properties in distress. These conferences are an excellent opportunity to take classes, mix and mingle with respected members of the real estate scene, and also a great place to promote your real estate business too.
2. Your local community college may offer a class in dealing with distressed properties and if they don’t already have a class, you might encourage them to do so! Many of the professors at the community college level are main players in the real estate industry in that region, so they are excellent people to know and to learn from.
3. Explore any local group that will help you enhance your knowledge in this prevalent area of the industry. Local real estate groups can be found in every major city in the country and they are a great place to network and learn from others people in your same shoes.
4. The web offers unlimited resources for self-education. Study the laws governing the specific area in which you are interested. Did you know that Default Research offers information regarding state foreclosure laws on our website? And, our monthly newsletter is available for reading and it offers a great variety of valuable information. This is not just a shameless plug for Default Research, but it also brings up a very important point – wherever you do research pre foreclosure, make sure the source of the information is trusted and well respected in the industry.
The real estate world is changing everyday which means that each day there is something new to learn. Remember it or write it down so you don’t forget; when you are not studying, somebody else (quite possibly your competition) is studying and getting that much smarter, savvier, and in the end, wealthier.
While Bradley didn’t offer any specific ways to study and improve your knowledge base, we have several solid methods for you to study when that other person is too.
1. For example, there are conferences to attend that will help hone your skills in working with properties in distress. These conferences are an excellent opportunity to take classes, mix and mingle with respected members of the real estate scene, and also a great place to promote your real estate business too.
2. Your local community college may offer a class in dealing with distressed properties and if they don’t already have a class, you might encourage them to do so! Many of the professors at the community college level are main players in the real estate industry in that region, so they are excellent people to know and to learn from.
3. Explore any local group that will help you enhance your knowledge in this prevalent area of the industry. Local real estate groups can be found in every major city in the country and they are a great place to network and learn from others people in your same shoes.
4. The web offers unlimited resources for self-education. Study the laws governing the specific area in which you are interested. Did you know that Default Research offers information regarding state foreclosure laws on our website? And, our monthly newsletter is available for reading and it offers a great variety of valuable information. This is not just a shameless plug for Default Research, but it also brings up a very important point – wherever you do research pre foreclosure, make sure the source of the information is trusted and well respected in the industry.
The real estate world is changing everyday which means that each day there is something new to learn. Remember it or write it down so you don’t forget; when you are not studying, somebody else (quite possibly your competition) is studying and getting that much smarter, savvier, and in the end, wealthier.
Wednesday, July 1, 2009
The Dreaded Cold-Call
Making cold-calls is almost always seen as a terribly unpleasant job! If you’ve ever done any cold calling, you know you’ll hear the word “NO” or a very audible hang-up more often than not. To succeed at this sales tactic, you want a few weapons in your arsenal of skills:
1. Don’t allow yourself to be deterred by a negative response. Develop the mind-set of “what’s the worst that could happen, someone is going to tell me that they’re not interested, so what, who cares, next call.” And then it is time to move onto the next phone number and prospect!
2. Always remember cold calling is not about making the sale; it’s about creating an interest in the product you offer, and successfully setting up a second conversation or meeting where you can prove the value of that product. This first cold call gives you the chance to start building rapport, respect, and a strong relationship with this customer.
2. Have a friendly introduction ready but make sure to avoid sounding like a rehearsed advertisement! As you speak, include some knowledge you have of the prospect’s business (i.e., a recent achievement they have accomplished or goal they are trying to meet) and try to strike up a conversation.
If you are able to generate interest on the prospect’s part, then consider that a successful cold call! Whether you end up getting the sale or not, hopefully you have established a link that will aid in future negotiations. The key is to be personable, understanding, and knowledgeable in both what the prospect’s business is about and that what you have to offer that person will be extremely valuable to them!
1. Don’t allow yourself to be deterred by a negative response. Develop the mind-set of “what’s the worst that could happen, someone is going to tell me that they’re not interested, so what, who cares, next call.” And then it is time to move onto the next phone number and prospect!
2. Always remember cold calling is not about making the sale; it’s about creating an interest in the product you offer, and successfully setting up a second conversation or meeting where you can prove the value of that product. This first cold call gives you the chance to start building rapport, respect, and a strong relationship with this customer.
2. Have a friendly introduction ready but make sure to avoid sounding like a rehearsed advertisement! As you speak, include some knowledge you have of the prospect’s business (i.e., a recent achievement they have accomplished or goal they are trying to meet) and try to strike up a conversation.
If you are able to generate interest on the prospect’s part, then consider that a successful cold call! Whether you end up getting the sale or not, hopefully you have established a link that will aid in future negotiations. The key is to be personable, understanding, and knowledgeable in both what the prospect’s business is about and that what you have to offer that person will be extremely valuable to them!
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