Nation Assoc of Realtors Release

The group is now forecasting an 8.6 percentage drop in the pace of existing home sales this year, which is not only worse than its previous estimate of a 6.8 percent decline but also would top the 8.5 percent drop seen in 2006. While the group believes existing home sales should rebound 5.8 percent in 2008 that would still leave the volume of sales more than 11 percent below the record sales of 7.1 million seen in 2005.

New home sales volume is expected to drop even more sharply, posting a 23.8 percent drop this year, and another 7.4 percent drop in 2008. Housing starts are expected to post similar declines each year.

Conversations among members

FROM OUR MEMBERS…

 
 

Our average house meeting (with seller) is 15 minutes. I tell my field guys not to spend any more time than that and to be in and out ASAP. As you get into this business you structure your business based on your personality/traits and what works for you.

*************************************************

 
 

I use to be the 15 minute guy that ATC speaks about. I have found out the longer that I spend with a QUALIFIED person (seller) the more money I can make.

 
 

*************************************************

 
 

Common sense dictates your behavior at different times. If you have many people calling you wanting you to 'buy their homes', then you can 'maybe' take a 'short cut or two'. If you aren't getting that 'many calls' then it makes 'sense' to take 'more time' with the ones you are getting. When Jonathan 'spends time' with the potential sellers, he is 'working every minute', finding their 'hot buttons' and looking for ways for him to 'make more money' from the deal. Remember always, that this is a SALES JOB! You have to 'sell them' on yourself and what you are doing. People do this in different ways because everyone's

personality is different...and everyone's level of 'life experiences' is different. The way Jonathan handles people will be different because of his 'vast experiences'. And everyone here knows I 'preach' CONTROL, CONTROL, CONTROL from second one. Well there are 'many ways' to get and keep control. The way I get control and keep control 'may be different' than the way Jonathan 'gets and keeps control' of his deals.

 
 

People it still 'boils down to this'...EITHER YOU SELL THEM OR THEY SELL YOU! A SALE IS GOING TO BE MADE EVERY TIME ONE WAY OR THE OTHER!

 

Credit Quality Terms

 
 

Prime Loan – A conventional single-family mortgage made to a borrower with strong credit. Also known as an A loan.

A- (A-Minus) Loan – A conventional single-family mortgage made to a borrower with slightly impaired credit.

Alternative-A (Alt-A) Loan - A conventional single-family mortgage made to a borrower who typically provides limited income or asset verification or no evidence of an employer. Such loans may have other non-standard underwriting.

Subprime Loan - A conventional single-family mortgage made to a borrower with impaired credit.

Loan Type/Size

Conventional Mortgage – A loan that is neither insured nor guaranteed by the federal government (such as by the Federal Housing Administration or the Department of Veterans Affairs).

Conforming Loan – A conventional single-family mortgage with a principal balance eligible for purchase by Fannie Mae and Freddie Mac (in 2007 that limit is $417,000) and that otherwise meets the credit quality standards of the Enterprises.

Jumbo or Non-Conforming Loan – A conventional single-family mortgage with a principal balance exceeding the conforming loan limit (in 2007 that limit is $417,000).

http://money.cnn.com/2007/10/12/real_estate/mortgage_alliance/index.htm?postversion=2007101216 CNN report on another blunder in the buyer's market


In the mean time, the only cure for people in preforeclosure is easy to work out by two simple... and already in place, actions.
1. If the homeowner truly had a short term income/expense problem and is no over it, then any bank will work a 25%-50% down payment toward the back payments and legal fees... and monthly payments on the remainder over the next 12 months until they are caught up.
2. If it is otherwise and the homeowner doesn't have the ability to make payments and get caught up, then they need to quick sale to an investor or at least deed the home back to the bank and try to prevent a deficiency judgment for the bank's loss.

It is not and should not be on the tax payers to bail out the mortgage companies nor the people that bought homes they couldn't afford. Unless the tax payer wants to continue paying for people's home mortgages, the government needs to stay out of curing the past problem and only deal with passing measures to prevent the bad practices of lenders from continuing to do "bad business".

In the mean time, this is actually what is happening. The government is beating the drum of fixing the problem while really doing nothing other than pressuring lenders to clean up their house. Which means that foreclosures will continue at the highest rates ever until the last "bad loans" are either refinanced, or sold and paid off. This gives us the investor community the real power to fix the problem. It has always been up to us that pick up the pieces of "homes and loans gone bad" and resale them to a family that can actually "afford" the home and achieve the American Dream of Home Ownership.

In my current training series in Level 2, I'm teaching how to pick up these shattered dreams and fixing the problem before anymore harm is done to either the homeowner or the economy. My Inverse Purchase Land Trust System is the cure to the current mortgage and foreclosure crisis. This system works on the basic principals learned at Level 2 Inverse Purchase Boot camp on Video found at http://www.johnlivetv.com/