Rescue Script to Uncover Distressed Property Leads

Current studies show that over 6 million homeowners in the country are potentially facing foreclosure. However, initiating the conversation to find out if a homeowner needs your services can sometimes be uncomfortable or even offensive.  That’s why we have a refined a script that works well in any situation, whether you are on the phone or in person, and we call that script the “Distressed Property Rescue Script.”

It’s simple, effective and most importantly it makes homeowners feel comfortable to open up about their situation.  This is not a sales call, or a referral call; it’s a rescue call.

Here’s the script:

“Do you, or someone you know, owe more on your property than what it is worth and you don’t know what to do?”

This may sound like a simple question, but each word is designed to elicit a specific response.

Let’s take a look at this script and explain why each section is important.

“Do you, or someone you know.” Adding the part “someone you know” is non-accusatory and let’s the person off the hook.  It may also trigger a memory of someone they know who is in trouble which allows you to connect to their market.

“owe more on your property than what it is worth.” Leaving out the words “foreclosure” or “short sale” are important because studies have shown that 65% of homeowners do not understand these terms or know what they mean.  They do understand, however, that they are late on payments and that is something they can definitely relate to.

“you don’t know what to do?” This last section is the most important part.  Foreclosure is an ambiguous term, one the homeowner may not relate too or even understand.  Not knowing what to do has personal implications that every person can recognize, so by communicating in a way that has meaning you help people open up.

When CDPE’s call qualified clients and use this script they report 5 out of 10 and in some cases 10 out 10 calls resulting in referrals.

Begin calling past clients today.  Use this script to generate more listings and, more importantly, help someone in your database that already knows you.

Watch the Rescue Script video on You Tube.

Mortgage Modification Scams Rampant in 2011

Mortgage modification scams made the list of the Better Business Bureau’s Top Scams of 2011, with more than 20,000 complaints. Sadly, there are countless organizations out there preying on desperate homeowners.

That’s why trained, qualified real estate agents are needed now more than ever. The nationwide network of more than 35,000 CDPE-designated agents has helped hundreds of thousands of homeowners find a dignified solution in difficult times.

But distressed homeowners aren’t the only ones being targeted. Unfortunately, even well intentioned agents have been caught up in increasingly sophisticated mortgage fraud scams.

Don’t let it happen to you! Join Alex Charfen for a FREE Webinar:

[FREE Webinar] Short Sale Fraud – What One Agent Didn’t Know that Cost Him His License
Wednesday, January 25 at 2:00 p.m. EST

Register today!

RealtyTrac: Foreclosures Set to Rise in 2012

There’s both good news and bad news on the foreclosure front.

The good news? According to RealtyTrac’s Year-End 2011 U.S. Foreclosure Market Report™, total U.S. foreclosure activity and the foreclosure rate were both at their lowest annual level since 2007.

The bad news? Foreclosure levels were artificially lowered due to delays following the robo-signing scandal. However, those delayed foreclosures will likely reappear in 2012.

“There were strong signs in the second half of 2011 that lenders are finally beginning to push through some of the delayed foreclosures in select local markets. We expect that trend to continue this year, boosting foreclosure activity for 2012 higher than it was in 2011,” said Brandon Moore, chief executive officer of RealtyTrac.

Fortunately, both the financial and government sectors are more committed than ever to finding alternatives to foreclosure, including short sales. In fact, Bank of America expects a 60-70% increase in short sale closings this year.

Agents need to be prepared to assist distressed homeowners during the upcoming surge in foreclosure filings. If you’re not already a Certified Distressed Property Expert®, you’re missing out on an incredible opportunity to serve your community while growing your real estate commissions. Click here to watch a FREE PREVIEW of the CDPE Designation Course to find out how you can get started today!

Fannie Follows Freddie’s Lead in Extending Forbearance Period for Unemployed

Fannie Mae revealed its new Unemployment Forbearance Program, which mortgage servicers are required to implement by March 1 for all Fannie Mae-owned and backed loans.

Servicers can now provide up to six months of relief for eligible unemployed borrowers without Fannie’s review and approval. Borrowers may also apply for an additional six months of forbearance, for a total of 12 months.

Fannie’s announcement follows a similar move by Freddie Mac.

To find out if your loan is backed by either GSE, use the “Fannie Mae Loan Lookup” or “Freddie Mac Loan Lookup” tools on the Useful Links section of our website.

Freddie Mac Announces Up to 12-Month Forbearance for Unemployed

Effective Feb. 1, Freddie Mac is giving mortgage servicers expanded authority to provide six months of forbearance to unemployed mortgage holders without prior approval, and an additional six months (12 months total) with prior approval. This new policy essentially doubles the previously offered forbearance period.

It’s important to note:

• This applies to Freddie Mac-owned or guaranteed loans only.
• There is ACTION required. The homeowner must contact the servicer to request the forbearance.
• Delinquent borrowers in an existing short-term forbearance plan can be evaluated for an extended forbearance term under the new policy. Again, homeowners will need to contact their servicer to apply.

For more information, watch Alex Charfen’s latest Video Blog Post!

Bank of America Shrinks Window for Short Sale Backup Offers

In an effort to shorten overall cycle times, Bank of America has reduced the window for submitting a backup offer on a short sale from 14 days to eight days after the initial offer becomes invalid.

Once a backup offer becomes necessary:

• Contact your short sale specialist immediately to let him or her know you have a backup offer to submit.
• Within eight calendar days, resubmit the listing data, submit the short sale offer, and upload the offer documents and supporting documents.

Note: All backup offers will require approval, regardless of similarities to the previous offer.

If no backup offer is available:

• The short sale will be closed in Equator by your short sale specialist.
• You should return to marketing the property.
• You may initiate a new short sale in Equator when you receive a new offer on the property.

For more great tips on getting Bank of America short sales approved, download our FREE report!

Where is the Real Estate Market Headed in 2012?

On Thursday, Veros Real Estate Solutions released its
VeroFORECAST real estate market forecast for the 12-month period ending Dec. 1, 2012.

Their findings indicate “the national housing recovery will continue to be gradual and slow without any significant changes in markets.”

Veros predicts up to four percent appreciation in the strongest markets, including Fargo and Bismark, North Dakota; the Washington, D.C. area; Honolulu, Hawaii; and Anchorage, Alaska.

Veros projects the five weakest markets—which include areas of California, Nevada and Florida—to depreciate five to six percent over the next year.

While this is welcome news for the country’s strongest markets, the reality is, 1 in 5 homeowners are underwater on their mortgage. For many of them, the recovery isn’t coming quickly enough. Housing prices remain 33% below 2006 levels, so even at four percent appreciation, millions of homeowners remain in serious peril.

Find out how you can join the 35,000 CDPE-designated agents who are trained to help these homeowners out of a difficult situation, while growing your commissions in a challenging market!

Federal Reserve Recommends Short Sales Among Solutions to Housing Crisis

On Jan. 4, Federal Reserve Chairman Ben Bernanke sent a letter and white paper to Congress outlining his insights and recommendations on restoring the health of the U.S. housing market.

Among the key findings on current market conditions:

• Housing prices remain 33% below their early 2006 peak
• Currently, 1 in 5 mortgage holders are underwater (12 million homeowners)
• In states with the price declines (i.e. Nevada, Arizona and Florida) roughly half of all mortgage borrowers are underwater on their loans
• The number of properties currently in the foreclosure process is more than four times larger than the number of properties in REO inventory

The white paper suggests that no single solution exists and that progress will come through “persistent and careful efforts to address a range of difficult and interdependent issues”—a position we have always stressed.

Among these efforts, the paper strongly recommends incentives for alternatives to foreclosure, namely a short sale or deed-in-lieu.

The white paper also emphasizes a fact we are all too aware of: foreclosures drive down property values in the surrounding area and lead to a “ripple-effect” that harms homeowners, lenders and taxpayers alike.

Watch my Video Blog Post to hear more insights on the Federal Reserve’s recommendations.

Three Surefire Strategies to Multiply Your Short Sale Listings in 2012

With 1 in 10 homeowners not paying their mortgage—and Major Lenders predicting huge increases in short sale closings in 2012—savvy agents are finding new and creative ways to find and attract distressed property listings.

A great place to start your outreach campaign is a list of NODs. Notices of Default, or NODs, are legal notices sent by a mortgage servicer to a homeowner who is 90 days late on their mortgage.

With a few simple modifications, you can use many of the same marketing techniques with NODs that have yielded you results when prospecting for traditional listings. For maximum impact, utilize the following:

Multi-touch Approach

Don’t expect results after one call, mailing or door knock. The foreclosure process can take months, and many distressed homeowners will refuse to face the reality of their situation until their time has run out.

As with any effective outreach campaign, follow the “Rule of 7,” which states that the majority of prospects need to be contacted a minimum of seven times before they notice your message. Distressed homeowners, who are often in denial of their situation, may require even more touches. Stick with it; persistence is key when marketing to NODs.

Multi-method Approach

Not all homeowners will respond to the same type of messaging. A consistent but varied approach to outreach will often yield the best results.

Include the following elements in your NOD outreach campaign:

• Letter
• Postcard
• Free Report
• Door Knock with Flyer or Door Hanger
• Handwritten Note
• Foreclosure Avoidance Seminar Invitation

Be sure to include your contact info, including a website address where they can download informative resources (such as a free report with foreclosure avoidance tips) in exchange for their name, email and phone number. This will help you track the success of your outreach and enable you to follow up with interested leads.

Get in a “Saving” Mindset (not a “Selling” One)

Before you begin your outreach, get centered and set the intention that you are going to help the person you are contacting.

When you have a long list of NODs to tackle, it’s easy to forget there’s a real family on the other end, and they are probably going through one of the most difficult times in their lives. The threat of losing your home is frightening and highly emotional. Be respectful, and always set out with the intention of helping instead of selling.

Additionally, don’t imply that you know the homeowner themselves is in financial distress. For example, when door knocking say, “I’m out here today to let my neighbors know that if they or someone they know is behind on their mortgage payments and doesn’t know what to do, I am here to help.”

Now that you’ve connected with homeowners in your area who need help, make sure you’re listing their property the RIGHT way. Download our FREE report: The 5 Steps to Listing a Successful Short Sale!

Own the message!

Rising Tide of Foreclosures Coming in 2012

On Dec. 21, the Office of the Comptroller of the Currency released its latest report, which shows delinquencies remained elevated during the third quarter of 2011.

The number of new foreclosures increased by 21 percent during the quarter, partly due to servicers lifting the voluntary “foreclosure freeze” implemented in late 2010 as a result of the robo-signing scandal.

The overall increase has resulted in the number of foreclosures in process increasing to 4.1 percent of the overall portfolio, or 1,327,077 loans, at the end of the third quarter of 2011.

This supports RealtyTrac’s latest data, which also predicts increased foreclosure activity in 2012.

“November’s numbers suggest a new set of incoming foreclosure waves, many of which may roll into the market as REOs (bank-owned homes) or short sales sometime early next year,” said James Saccacio, co-founder of RealtyTrac, in a statement.

Agents can help stem the tide of foreclosures in their market by educating distressed homeowners on alternatives, such as short sales.

Click here to learn more about how you can save families from foreclosure while growing your real estate business in 2012.

Fannie Mae & Freddie Mac Announce an “Eviction Moratorium” for the Holidays

The holiday season should be a magical time of year. However, for a growing number of families, the usual holiday celebrations are trumped by financial troubles, foreclosure and the looming threat of eviction.

Fannie Mae and Freddie Mac offered some relief to such families by announcing an “Eviction Moratorium” through January 2, 2012. During this time, families living in foreclosed homes will not be forced to leave, though legal proceedings may continue as scheduled.

Undoubtedly, Fannie and Freddie’s efforts will prove comforting to homeowners who find themselves in this situation. However, the relief is short lived.

Remember, the “eviction moratorium” is only a short reprieve, so we urge you to continue reaching out to homeowners during the holiday season. Simply knowing that options exist can provide them with peace of mind. And during the holidays, a little peace of mind is an invaluable gift.

If you are not yet a CDPE and would like to learn how you, too, can help homeowners in distress, watch our FREE PREVIEW of the CDPE Designation Course.

Bank of America Announces HAFA Process Improvements

In an effort to reduce cycle time and improve customer service, Bank of America (BOA) announced several changes to their Home Affordable Foreclosure Alternatives (HAFA) short sale process, which agents should be aware of.

Highlights include:

• When a short sale is submitted with an offer and the homeowner is HAFA eligible, BOA will no longer halt work on the file while waiting to contact the homeowner.
• Short sales initiated on Equator.com that receive a HAFA eligibility message no longer require homeowners to call Customer Care to confirm their interest.
• If homeowners wish to participate in HAFA, agents must submit the requested documents within 14 days.  (Note: the 14-day period begins the day the HAFA solicitation letter is mailed to the homeowner. Agents can obtain the date of the letter from the homeowner.)

These changes impact all short sales submitted with an offer in which the homeowner is eligible for the HAFA program.

Want more info on incentives available to homeowners through the federal government’s HAFA Program? Access our FREE video and report for all the details!

Why are CDPE’s founders so passionate about saving families from foreclosure? Because they’ve been there.

Sometimes we reach our greatest successes when we refuse to accept our failures as just that.

In a revealing profile, the Westlake Picayune’s Dale Anderson takes an in-depth look at our founders Alex and Cadey Charfen’s humbling fall into bankruptcy and triumphant rise to success.

After riding high on the South Florida housing boom, the Charfens came crashing down as the market turned, losing their Boca Raton home and 23 investment properties to foreclosure in 2007.

This is a familiar story. But it takes an unfamiliar twist when the young couple—left bankrupt and desolate—decide to turn their misfortune into a vehicle to help others.

Since launching the Certified Distressed Property Expert® Designation in January 2008, Alex and Cadey have helped more than 35,000 real estate agents grow their businesses during the worst real estate market in decades, while saving countless homeowners from foreclosure.

It’s an inspiring story that many of us in the real estate industry can relate to.

These past few years certainly haven’t been easy. But those of us who have survived—while helping to rescue our neighbors from foreclosure—have already begun to reap the rewards.

Click here to view the full Westlake Picayune article: Bounce Back.

Report: Bank of America Plans 60-70% Increase in Short Sales Next Year

Recently, CDPE author and Charfen Institute CEO Alex Charfen hosted an exclusive broadcast with Bob Hora, Senior Vice President of Mortgage Servicing at Bank of America Home Loans.

Bob Hora provided insight into Bank of America’s evolving approach to managing their distressed mortgage portfolio, which includes plans to increase short sales by as much as 60 – 70% next year. To achieve this increase, Bank of America is improving their short sale process and implementing a number of new programs to help both homeowners and agents.

In CDPE’s newest report, we detail the information covered in the broadcast, such as Bank of America’s new community outreach campaigns and homeowner transition guides. You’ll also learn how increases in manpower and improvements to Equator will effect you, the agent, and the homeowners you serve.

Download your copy of the report today!