America’s WORST Selling Housing Markets

Forbes Magazine recently published the “Worst” Real Estate Markets in terms of selling. To see the complete Forbes list: In Depth: America’s Worst-Selling Housing Markets

America’s 5 Worst-Selling Housing Markets

No. 1: Milwaukee, Wis. Metropolitan Statistical Area: Milwaukee-Waukesha-West Allis, Wis. Slow Sales Rate Rank: 11 Inventory Increase Rank:2

No. 2: Denver, Colo. Metropolitan Statistical Area: Denver-Aurora, Colo. Slow Sales Rate Rank: 9 Inventory Increase Rank: 5

No. 3: (tie): Los Angeles, Calif. Metropolitan Statistical Area: Los Angeles-Long Beach-Santa Ana, Calif. Slow Sales Rate Rank: 3 Inventory Increase Rank: 14

No. 3: (tie): St. Louis, Mo. Metropolitan Statistical Area: St. Louis, Mo.-Ill. Slow Sales Rate Rank: 14 Inventory Increase Rank: 3

No. 5: San Francisco, Calif. Metropolitan Statistical Area: San Francisco-Oakland-Fremont, Calif. Slow Sales Rate Rank: 6 Inventory Increase Rank: 12

The Road Ahead Is A Long and Winding One

The American Housing & Finance Crisis is a far-reaching epidemic affecting Millions upon Millions of Americans. It goes beyond Our borders. Internationally, directly and indirectly, the American Housing Crisis has reached as far as Europe, United Emirates, China, Japan and Many other “Foreign Investor” interests in Countries all over the World. We all know what happened, we have a pretty good idea what it’s going to take to correct things and avoid this from ever occurring again. What we need now is not amnesty or “bail-outs”… but PATIENCE.

It has been estimated by American Core Logic that the average American Homeowner experiencing negative equity won’t see positive equity appreciations until 2015! In depressed markets like Las Vegas, Detroit and Florida, it may take as long as 2020 until homeowners can benefit from the stake-hold they have in their home-ownership rights.

The White House recently made some sweeping changes in the HOME AFFORDABLE MODIFICATION PROGRAM amidst growing criticism from opposing Party Members and the American Tax Payers. The program itself has been funded with $75bln Dollars as a way to help Troubled Borrowers with a Cash Subsidies directly paid to Banks and Servicing Banks. Many of the critics have cited that not enough is being done to reach out to the Borrowers and more proactive steps from the Banks and Servicer are necessary to quell concerns and bolster active participation by the homeowners. In a report from the US Treasury, some 52% of the Homeowners benefiting from the HAMP Program default yet again within 9 months of approval. The issue is not the relief, but the hopelessness of any future equity gains as the program is a band-aid and not a cure.

The cure will come from the Banks willingness (albeit voluntary or mandated) to make principal reductions to give the homeowner a “light at the end of the tunnel”. Let’s face it, most homeowners would just soon walk away from an upside down mortgage and property and seek another one with positive equity and positive equity appreciations. DUH! The good news is Home Affordable Modification Program now provides:

• Monthly Cash Subsidies Paid Directly to the Bank/Service Providers
• Annual Principal Reduction Payments Predicated on “On-Time” Payments by the Borrower (s)
• Policies Requiring Lenders to “Proactively” Screen Their Portfolios for “High Risk” Defaults and Make Available Options for Resolution
• Payment Deferment for Jobless Homeowners for Up To 3 Months
• Automatic “Stay” on Foreclosures for Homeowners Applying for or Participating in a Loan Modification (Becomes Effective June 2010)
• 2nd or Junior Lien Modification Program to Assist Homeowners

Among these sweeping changes, Banks have pledged to review and analyze their respective portfolios and “shave” principal balances that directly benefits individual homeowners with the negative equity challenge.

“Change” takes time, and as more and more Banks & Financial Institutions realize the fiscal sense in reaching out and “preserving” the current payment streams in their portfolios; which creates more money to lend out and remain capitalized. The better off “We” Homeowners will be… soon markets will begin to stabilize & correct and neighborhoods & municipalities will begin to experience an increase in tax base revenues to fund infrastructures. In the end and if we play our cards right, we may see better times for ALL ahead of us…

BUT! Please remember all this is ONLY Possible with Patience, Resolve and a real passion for “Getting Past This Current Situation”. Hang in there America… “This too shall pass”

The “Value” of a Gift…

All across America, Companies everywhere practice a marketing technique known as “gifting” or gratis as commonly referred to in some circles.  Whether You are shopping the Make-Up/Fragrance counter at your favorite Department Store or cashing in a gift card from the online merchant that Thanked You by providing you with a $10.00 gift card. You have just received a “gift”.  The value of the gift itself is irrelevant, it’s the value or values of the gift giver that is more important and relevant.  Is the gift free from any “strings” or conditions?  Does it come with a “promise” implied or inferred that requires a contract obligating another action on the part of the recipient?  [For example: "Buy Two Get One Free"... an awesome deal if in fact you need the third item, or have someone special in mind to "gift" it to].

Christmas time is filled with the spirit of gift giving, people from different Nations and Cultures practice a long-lived tradition of gifting and gift exchanges.  Even Corporate America practices this ritual with it’s “Special” Clientele’ that have purchased X amount of merchandise during the past year or remitted on- time payments or have ordered and paid for services rendered exceeding the average during the past fiscal year.  The Manicurist often treats his/her clients with a “Bonus” manicure on Special Holidays or on Birthdays, Anniversaries.  A great way to introduce yourself and your services to New Clients is to offer a “Complimentary” service off of your menu of services [brilliant strategy for anyone in the service industry].  Even the very best litigators or law advisers will offer at least a one hour consultation at NO CHARGE to their prospects (without obligation) seeking legal advice on any particular legal subject.  Again, a wonderful strategy and prudent maneuver on the part of the Service Provider or Law Professional.   The benefit to the Consumer is clear, “We” get the opportunity to “Try” before We Buy into a service contract or commit to a service provider.

The word “Value” used in the Posts Title is not a question per se. I am not attempting to question or analyze the act itself nor the motive behind it. To the Marketing Strategist that devised this concept and executed it by administering a test market and then released the “Offer” to the masses… I wish to say “Kudos” dude or dudette (as it were), You dreamt it, you wrote it, presented it, tested it, and no doubt cornered the market with it and made Your Client and Your Firm Very Happy and Very Rich!  I applaud the innovative out of the box thinking that led to Your success…Cheers!

As for the Real Estate Professionals struggling with connectivity and marketing concepts or how to successfully “Tether” themselves to their respective sphere.  Anything YOU can do to “Cement” yourself to that sphere is a good thing.  Not only prudent and wise, but WILL lead to  a strong connection between You and the Client!  This simple and often cost effective practice on your part provides you with the peace of mind that in a market which is constantly shifting with variables like supply and demand, fickle buyers & demanding sellers, technological advances, stiff competition and the Spirit of the American Entrepeneur;  it should be CLEAR to all of you why this or any other “out of the box” thinking is a critical move on the part of the Shrewd Real Estate Professional to deploy in a strategy that leads to procuring, securing and cementing a “Valuable” Relationship between Trusted Adviser & Client.

[IDEAS!]

Gift Baskets are GREAT and are appreciated by many homeowners, but let’s face it, it has been overdone. How about providing that “Special Client” with a “Gift that keeps on Giving”… Like a book? It can be anything You deem valuable as it pertains to Home-ownership, Finance, Personal Finance Management, etc. “I LOVE to gift books for many reasons“, as a Child one of the best books I received was from a School Teacher that happened to be My Best Friends Mother.   The book was “Where the Sidewalk Ends” By Shel Silverstein. My Friends Mom personally wrote a very special note to me and signed it. It is by far one of the most valued gifts I have ever received and one need only ask or talk to any of Nieces or Nephews to confirm that impact.

“Ickle Me Pickle Me Tickle Me Too.. Went off for a Ride in a Flying Shoe…Hooray, What Fun, Its time We Flew… Said Ickle Me Pickle Me, Tickle Me Too!”

Thank you Shel Silverstein and Thank You Ms. Jackson!

“Go Ahead…[HELP!] Yourselves!”

Real Estate Professionals can buy “HOME SOS!” ~ “Save My Home!” by Author “Richard T Fernandez” at a discounted rate (well below wholesale with a minimum purchase of just 10 Copies!  Pay for 9 Copies plus shipping and receive ONE Autographed Book FREE)  For more information on this offer, please email: sales@homeiswherethesmartis.com or visit us on the web at: www.HomeIsWhereTheSmartIs.com and click on the “RE PROFESSIONALS” Link on the footer of the website.

There is NO Glory!… in “Strategic Foreclosures”… What Can Professionals DO About This Quandary?

I have spoken before and briefly [on record] about a phenomenon that is spreading rapidly across the United States.  A practice known as “Strategic Foreclosures“, or also commonly referred to [incorrectly] as part of an “Exit Strategy“.  Allow me to first say on record that I am HUGE Proponent of an “Exit Strategy” as this plan or manuever is a very necessary item for American Homeowners in transitioning to a New Dwelling albeit temporary or permanent.  What disturbs me is the practice of Strategic Foreclosures and the ramifications and repercussions as well as impact it has directly on Communities, Tax Revenues, & Neighbors.  It is a chain reaction that causes destruction, leads to crime, bankrupts Cities & Counties and opens up a market demand for dubious business Practices and opportunities for various forms of malfeasance.

YES! It’s that serious and is already being seen in Communities all over the Country.

Please check out these video documentation about the Topic of  Strategic Foreclosures:

My intent here again is NOT to preach… But rather illuminate a growing problem that plagues not only the Real Estate Profession, but the Clients, Friends, Family Members of the Professional Industry itself.  The “Strategy” has far-reaching implications and turns once burgeoning Metropolitan Cities that benefited and thrived from the streams of Retail Revenues and Tax Base Incomes and virtually converted them into Ghost Towns with frightening  shadows off streets where Families once walked/strolled safely and confidently that no harm would come to themselves or their loved ones.  Examples of the damaged caused by Strategic Foreclosures can be seen in Cities like Vallejo CA and Orlando FL among many of the Cities throughout the United States and Beyond Our Borders too.

Clearly one can surmise that there is in fact NO Glory in one’s decision to execute a Strategic Foreclosure as part of their respective Exit Strategy.  I quote one very relevant verse from Plato’s Socrates (Crito, 49c) clipped from “The Golden Rule” that simply reads: “One should never do wrong in return, nor mistreat any man, no matter how one has been mistreated by him” [Period!] (.)

As for the role of the fiduciary on this subject matter, the impact of YOUR actions or in-actions can indeed be far-reaching as well.  In this WORLD “We” are ONE.  Every action has a reaction and every in-action directly impacts the lives of all of those around us.  [Please feel free to ponder this at your leisure].

An ethical professional that practices in transparency and honesty has no compunction whatsoever in formulating the correct response to this question or scenario when posed.  A simple and effective response can go something like this… “Have You Carefully weighed out Your options and given thought to how your decision will impact those around you?“  This is an open-ended reply with thought-provoking words that tap the essence of one’s conscience.  This alone is all anyone needs say when confronted with the aforementioned quandary.

Having said that… PLEASE feel free to use YOUR own words and methodologies that make YOU the effective communicator that YOU are and that garners you the admiration and respect from YOUR peers and clients alike.

“Go Ahead… [HELP!] Yourself!”

Staggering Numbers on Negative Equity in US Homes

According to American Core Logic’s “Negative Equity Report” published 4th Quarter 2009.  An estimated 4,500,000 American Homeowners OWE More than 75% of their Home’s Actual Worth/Value.  ACL goes on to report that this initial estimate will increase.

In American Core Logics Press Release dated 02/21/2010:

“First American CoreLogic reported today that more than 11.3 million, or 24 percent, of all residential properties with mortgages, were in negative equity at the end of the fourth quarter of 2009, up from 10.7 million and 23 percent at the end of the third quarter of 2009. An additional 2.3 million mortgages were approaching negative equity at the end of last year, meaning they had less than five percent equity. Together, negative equity and near‐negative equity mortgages accounted for nearly 29 percent of all residential properties with a mortgage nationwide.”

ACL Home Loan Performance Data 02-2010

Home Is Where The Smart Is “estimated” this number to be near 10,000,000 households in 2009 and references this in the book “HOME SOS!”~ Save My Home! (published by outskirtspress).  The rise in this number is indicative of struggling communities, the direct & adverse impact Foreclosures have on neighborhoods and communities as well as the loss of tax base revenues for Regions and Local Governments resulting in “cuts” that affect these Governments to afford to fund Critical Infrastructure Expenses (Police, D.O.T., Educational Programs, Social Services, & so on)

Although Federal & State Law Makers have passed and “streamlined” processes to offer Immediate Relief to Homeowners grappling with their valuation declinations, The REAL need to communicate effectively to these struggling Families is Paramount.

“Inform, Engage, Cement… That Relationship!”

For more information on American Core Logic’s Negative Equity Report as well access to their “State by State Negative Equity Report (s) and Analysis of Various Loan Performance Data… Please visit them on the web at:

http://bit.ly/aIM4rC

CA Home Buyers [May] Qualify for [Up-to] $18,000.00 In Tax Incentives??

Tuesday, “we” [Wall Street Journal] told you that the state of California is poised to offer home buyers up to $10,000 to get off the fence and to the dotted line. The $200 million program, split between first-time buyers of existing homes and new units, should keep the Golden State’s sales moving along post spring-selling season. But, it might not get off to a peaceful start on May 1: Get ready for a stampede early on as some buyers rush to overlap with the federal tax credit that’s dangling as much as $8,000 to buyers. (Yes, that’s up to $18,000 for buying a house.) For the federal incentive, contracts must be inked by April 30, while closings have to happen by June 30. The California credit covers closings on existing or new homes on or after May 1, leaving a short window for double dipping. [Read this article]

Okay Ladies & Gentlemen… Please remember to practice grace, humility and above ALL else Ethics & Decorum.   YES! There is a GOLD RUSH yet again the Great State of California as it pertains to Real Estate.  “Ready, Set, INFORM!”

Good Sales to ALL of the Fabulous Real Estate Professionals that Practice and Deploy a Business Ethics Methodology predicated on Fiduciary Standards!

“Oh Yes!, just one other thought… “Go Ahead [HELP!] Yourselves.. Then PLEASE kindly Pass it On.”

www.HomeIsWhereTheSmartIs.com

REAL ESTATE PROFESSIONALS!, Please Check out HIWTSI’s RE PRO Page on The HOME IS WHERE THE SMART IS official Website by <<<<Clicking on Our Logo <<<<<

White House to Announce New Program for Troubled Borrowers in the Form of Low Interest Refinances

The White House will announce [Friday, March 26th 2010],  a new program benefitting Troubled Borrowers.  This move on the part of the Administration comes amidst criticism that the present program: HAMP is “not doing enough” to offer direct aid to the Borrowers afflicted by the Housing Crisis.  The plan involves the active participation of over 100 Mortgage Banks/Companies and essentially involves direct aid to responsible homeowners with lowered payments (in the form of a refinance) and iinterest rate reduction to as low as 2.0% as well as amortization stretched out of 40 (forty) Years. For more on this story: Yahoo News!

U.S. Treasury Announces Policy Changes for H.A.M.P.

The U.S. Treasury announced that under its Home Affordable Modification Program [HAMP] that it will require Lenders to FIRST notify the Treasury of “their” intent to file a foreclosure notice with the Borrower and prove WHY they would NOT qualify for a Loan Modification.

In an aggressive move on the part of the U.S. Treasury and the $50bln dollars allocated towards battling Foreclosures from the T.A.R.P. (Troubled Assets Recovery Program).  The Treasury announced that it will continue in its resolve to work towards making available and providing relief directly to the struggling Americans either presently in a default or rapidly approaching one as a result of loss of income or Rapid Asset Depreciation.

Despite criticism that the HAMP Initiative has done little in staving off looming foreclosures and stabilizing the huge number of existing Foreclosures (with estimates as high as 1.7 Million Properties in “shadow inventories” which climbed 55% in Sept.2009 and are presently being held in Lender Portfolios).  The success of the program comes from the Guidelines &  Prerequisites, as well as a $75 Billion Dollar Budget directly from TARP to fund the various programs and projects aimed at providing relief to American Home-owners.

Some of the Program Benefits Include:

The HAMP Project provides payment reductions with a qualifying DTI (debt to income ratio) of <31%. The program reduces the interest rates on loans (conventional and government backed) to effectively cut monthly payments to allow Borrowers an opportunity to get their head’s above water and formulate their own respective plans and strategies to “ride” this out as the housing market (s) improve or at the very least reach a reasonable level of stabilization. The program provides “incentives” for the Borrower/Home-owner to make “on-time” payments and continue a this discipline with $1000.00 Principal Payment Reduction Payments on behalf of the Borrower and up to a maximum of 5 Years post enrollment and Approval of entry in HAMP.

The U.S. Treasury announced in a report dated December 2009 that the number of Borrowers that received a Permanent Loan Modification tripled to over 66,000.

This new policy update coupled with a well-funded program and initiative will surely give some much-needed and much-anticipated RELIEF to the many American Homeowners struggling and living in turmoil amidst the strife and worry of “How” they can survive financially and securely in this still very volatile economic climate.

For more information on HAMP and access to the December 2009 Report, Program Guidelines & Enrollment affidavit; please visit: http://makinghomeaffordable.gov/

To learn more about HOME IS WHERE THE SMART IS and access to MORE Resources and TOOLS as well as references, please visit:

www.HomeIsWhereTheSmartIs.com

Even MORE Good News…

Today, California State Governor Arnold Schwarzenegger signed into Law a piece of legislation that makes available to California Residents up to $200,000,000 in tax credits for Home Buyers seeking to acquire “New Homes” and “Un-Occupied Homes” within the State.

The Official California State Flag

In a move to increase tax bases and revenues within a State struggling with budget shortfalls, critical program cuts, U.C. Educational Tuition Fee Increases, reduction in Law Enforcement & Community & Social Programs and so on.  The legislative branch authored, voted and passed a bill that provides an incentive of up to: $10,000.00 to Individuals/Families seeking to buy a home in California in the form of Tax Credits.

The legislation has a reach potential of 32,000 Home Buyers Statewide.  The strategy benefits existing home-owners too by creating occupancy demands and reduction of obsolesced housing units in Communities marred by the increasing number of foreclosures and vacancies and the ramifications and result of those vacancies have on Crime, Home Values, and Neighborhood Gentrification/Rehabilitation Projects.

The passage of the bill comes just ahead of the expiration of the Federal Tax Credit Program which is scheduled to expire in Mid April of 2010.

As for the Real Estate Industry, EVERY little bit helps in fostering and promoting Home Sales within the State in a shrinking market share and decreasing demand for housing within the State.

No doubt Real Estate Professionals EVERYWHERE will launch a broadcast movement consisting of information sharing and making the details not only available to their immediate sphere but accessable as well.

This news coupled with Bank of America’s Announcement to reach out to its troubled borrower base is a positive and beneficial move on the part of Government and Private Commerce to effectively help it’s Clients and or Tax Payers with Real Solutions.

Yay to BofA!!

In a REUTERS report obtained by REUTERS from Bank of America about a New “Principal Reduction” initiative to aid “Troubled” Home-owners who effectively owe more >120% of their home’s present value or are struggling with a “Negative Amortization Loan” and the effects those loan types have had on appreciated equity values and payment (s) volatility.

Bank of America will first offer an interest-free forbearance of principal offer that the affected home-owner can accept or reject and by accepting could benefit for up to 5 Years (providing the home-owner remains current on their regular scheduled payments). [This is according to Bank of America's Plan and Strategy to reach out and "work" with present Borrowers]. BofA’s plan and strategy is slated to begin in May 2010 is the first American Bank to unveil a comprehensive consumer centric program to make practical strategies and solutions available to its Borrowers directly affected by Loan Programs underwritten and approved by the Bank’s Mortgage Division and or acquired via merger or acquisition from Countrywide Financial portfolio and the many loans and various loan programs it made available to the public whilst it was actively and feverishly originating Residential Mortgage Loans for its investors and stockholder to bolster interest revenues and profits.

Bank of America has announced that it will proactively reach out its Borrower Base directly that meet the profile as a potential beneficiary of the proposed program and the offers and programs made available by the Mortgage Bank.

Now it’s probably no coincidence that the announcement from Bank of America comes just two days after Two Washington State Plaintiffs filed a law suit against Bank of America alleging that BofA was acting complacently towards other wise “qualified” prospects for Bank of America’s Loan Modification Program and that because Bank of America accepted in excess of 25 Million Dollars in Tax Payer Monies under the TARP Program [or Troubled Assets Recovery Program that became Law in 2008]. That the bank effectively “reneged” on its promise to these Borrowers and further charge Civil Culpability as a result of said negligence to “modify” the loan.

As for the thousands upon thousands of home-owners and dare I say “et-al” plaintiffs in a would-be Class Action Law Suit against Bank of America, I say… “Listen to the offer”. It may behoove you and you’re Family in terms of home-ownership retention plans and strategies and a real opportunity to recover and recuperate present and future market appreciations.  Not to mention the self capitalization benefit (s) from starting with a “clean slate” and building equity should your future plans include acquisition of a new home or even second or investment property.

All in all,  this is a positive direction amidst calls for Financial Reform in America, when an Industry Giant like Bank of America announces and makes available to  its troubled borrower base an olive branch and invitation to exchange what “we” hope is productive and open dialogue leading to an equitable and fair solution for “both” parties (thus the term equitable).  Then this is a positive step for America as it embarks on the path to a Capitalist Democracy that benefits it’s Citizens and creates a level playing field for ALL.

Needless to say… This is a HUGE break-through and has me in closing to simply say:  “Go Ahead…[Help] Yourself!”