Beginning April 13, 2012, Bank of America will require the following five forms to be submitted to initiate a short sale:

1. Bank of America Third-Party Authorization Form
2. IRS Form 4506-T – Request for Transcript of Tax Return
3. 60-day Estimated HUD-1 (or HUD-1 with closing date if shorter than 60 days)
4. Signed Purchase Contract including Buyers Acknowledgement and Disclosure
5. Bank of America Short Sale Purchase Contract Addendum

If you currently have a short sale file with Bank of America, you will need to complete any outstanding tasks in Equator before April 13. Look for the tasks titled “Submit Short Sale Offer,” “Upload Offer Documents,” and/or “Upload Supporting Documents.”

If these tasks are not complete by April 13, you may be required to re-upload all documents to match the new system (that means five new documents, even if you were only missing one). Your file may also be declined, depending on your open tasks time compared to average timelines.

In addition to these new requirements, Equator will change to allow tasks (after short sale is initiated) to happen simultaneously, rather than sequentially.

We don’t want anyone to be taken by surprise. For full coverage and to make sure you’re as prepared as possible for the changes, join us for an exclusive webinar “Bank of America Short Sale Alert: Changes May Result in Lost Files!”

Register now at http://www.cdpelive.com/120410-bofa

Last month, Bank of America announced a pilot program that will provide some distressed property homeowners with a new foreclosure alternative. This new “Mortgage to Lease” program will allow homeowners facing foreclosure to remain in their homes by converting from home ownership to rental.

In this program, participating homeowners will transfer their home titles to Bank of America for forgiveness of all outstanding mortgage debt. Then Bank of America will lease the home to the former homeowner for up to three years at a rental price less than their mortgage payments, making payments affordable. After the three-year rental period, Bank of America will sell the acquired houses to investors.

For now, the “Mortgage to Lease” program will only affect 1,000 specifically selected Bank of America customers in Arizona, Nevada, and New York. During this initial phase, Bank of America will explore customer, community, and investor reactions and assess the feasibility and practicality of expanding the program.

In order to qualify, the homeowner must meet the following criteria:

• Have a Bank of America loan without junior liens
• Be delinquent 60 days on their mortgage payments
• Be “underwater” on their mortgage
• Must have exhausted other foreclosure alternatives
• Foreclosure must be eminent
• And the homeowner must be occupying the home

Because this program has received national media attention, you may receive questions from homeowners about it. If you do, you can simply explain that this program is tiny and for now will affect less than one-tenth of one percent of all the homeowners with a problem. Remember, Bank of America will be hand-selecting and notifying homeowners for the initial launch.

UPDATE: Bank of America is adding new requirements to their short sale process starting April 13. Alex will give you all the details April 10 on a special, critical update broadcast. Register for the broadcast at http://www.cdpelive.com/120410-bofa.

ATTENTION Agents!

In October’s CDPE Industry Broadcast with Bob Hora, SVP Mortgage Servicing Executive at Bank of America Home Loans, Hora affirmed Bank of America’s commitment to streamlining their short sale process.

In keeping with this commitment, Bank of America is simplifying their third-party authorization process for short sales.

On March 20, Bank of America released a standardized Third-Party Authorization form to be used on all Bank of America short sales beginning April 14, 2012.

For CDPEs, we’ve uploaded the two-page document to the Resources section of the website. Just login, and go to: http://www.cdpe.com/resources/view/906/BofA3rdParty

Or you can download the form from Bank of America’s Agent Resource Center at http://www.bankofamerica.com/realestateagent.

Bank of America will accept other forms until April 14; however, we recommend implementing the form on your next Bank of America short sale!

For those of you who are CDPEs, you should continue to use the “CDPE Short Sale Authorization to Release Information Form” with home owners’ associations, second lien holders, or anyone else you need information from as our contains information specific to those types of organizations.

To watch a recording of CDPE’s exclusive industry broadcast with Bank of America, visit http://www.cdpelive.com/111026-bank-of-america/.

The HAFA updates will go into effect on June 1, 2012, and will allow more distressed homeowners to seek assistance. Most importantly, the deadline for submitting for HAFA eligibility will be extended a full year, from December 31, 2012, to December 31, 2013.

Other major changes from March’s updates to the HAFA program include:

• The removal of occupancy requirements. Previously, HAFA required homeowners to have lived in the property within the last 12 months.

• $3,000 relocation incentives will be limited to properties occupied by an owner or tenant at the time of the short sale.

• Mortgage payments will be allowed to exceed 31% of the homeowner’s gross monthly income. This update will allow a homeowner to stay current on her mortgage and still qualify, minimizing the overall impact to her credit.

• Secondary lienholders may receive up to a maximum of $8,500, up from $6,000 previously.

• And one of the most dramatic changes: The Credit Bureau Reporting will be Account Status Code 13 (paid or closed account/zero balance) or 65 (account paid in full/a foreclosure was started), as applicable.

With these updates, a homeowner can be current on their mortgage, qualify for HAFA, continue to make their payments, and execute a short sale with minimum impact on their credit!

Sign up for our webinar “Has Your Short Sale Stalled? Secret Strategies to Escalate Your File and Get a Resolution Fast!” where we will add a BONUS section on HAFA to cover the updates in depth. Register at http://www.cdpelive.com.

I just finished reading “Take the Stairs” by my good friend Rory Vaden, which recently hit these bestseller lists:

#1 on Amazon worldwide
#1 on Barnes and Noble all categories
#1 on USA Today business
#1 on Wall Street Journal hardcover business
#2 on New York Times hardcover

Finally someone has convincingly and definitively taken on the topic of discipline and how it is the single most important factor in your success!

The title of today’s blog post comes from Rory’s book, and it reminds me of what Rick Lara, my high school speech coach, used to say – “You’re only as good as your next speech.”

I have this hanging above the door in my office as a constant reminder that we celebrate achievements but it is what we are yet to achieve that defines us. As CEO of an 80+ person company and leader of a 40,000+ member organization, I have to earn my spot here every day.

Rory’s book focuses on achieving success through discipline, and I think it’s especially relevant to those of us who work in real estate. Very few agents earn an hourly wage or salary; most get paid for their results.  I’ve seen far too many agents fail because they spent their time on the wrong activities—something Rory calls “Creative Avoidance.”

No matter how you define success, it requires self-discipline. In “Take the Stairs,” Rory explains how we live in an “escalator world” that’s filled with short cuts, quick fixes, and distractions, making it all too easy to slide into procrastination, compromise, and mediocrity.

_______________________________________________________

To meet Rory in person, be sure to register for our Breakthrough Conference
in Las Vegas on July 15^th – 18^th where he’ll be one of our keynote speakers!
_______________________________________________________

• Q1: According to your experience, what is the key to success?

It seems that the only thing that ALL successful people have in common is that they have developed the ability to do the things that they know they should be doing in the moments when they don’t feel like doing them. In other words success isn’t about choosing to take the escalator; it’s about choosing to Take the Stairs. In a word I sum it up as discipline. The discipline to do the things we know we should be doing even when we don’t feel like doing them. But self-discipline isn’t as hard as we think – when we think about it the right way.

What we noticed is that the most disciplined people in the world don’t like discipline more than the rest of us, and they aren’t disciplined out of some weird masochistic pleasure for seeking pain. Instead, they simply process their choices through a different set of criteria from the rest of us. In other words, they think about it differently (in 7 specific ways outlined in the book) and that enables them to make choices that most people can’t normally get themselves to make.

• Q2: How did you get to where you are? How is your personal experience one that lends itself to the study of self-discipline?

When I was 5 years old my mother put me into martial arts, and by age 10, I became the youngest black belt in Colorado…to ever get beaten up by a girl! I used to argue with my mom “I don’t like this! It isn’t fun for me! And this isn’t something I enjoy!” and she’d always say back “That’s OK Rory, enjoying it isn’t a requirement of doing it.” So, being raised by a single mom, she taught me to put a lot of faith in self-discipline.

Then when I went to college I worked with The Southwestern Company. I spent 5 summers away from home, waking up at 5:59 am, taking ice cold showers, and knocking on doors 14 hours a day, 6 days a week, on straight commission, paying all of my own expenses, selling educational children’s books door to door. It was the most rigorous and challenging thing I’ve ever done, but I made over $250k in 5 summers and Southwestern taught me the skills and character I needed to be successful in life.

• Q3: One of my favorite things in your book is the concept of creative avoidance. What is it, and how do we watch out for it?

Creative Avoidance is a new and much more pervasive form of procrastination that is subtly different. Procrastination is consciously choosing not to do something that we know we should be doing. But what most professionals are really struggling from today is unconsciously filling the day with menial work or trivial work where they can be working long hours, in lots of meetings, answering lots of emails but really they are nothing more than busy just being busy.

Distraction is a dangerously deceptive saboteur of our goals. It’s amazing how much time we lose to mindless minutiae that really doesn’t forward our progress to completing anything substantial. One of the key strategies presented in the book is learning how to ignore the small stuff temporarily so you can focus in on the big stuff. The book also works hard to empirically quantify some of the impacts of the various forms of procrastination, which helps readers ultimately realize that anything that wastes our time is a waste of our money.

• Q4: One of the most popular concepts you share is your Rent Axiom.  Can you explain that?

It always cracks me up because at the end of every keynote presentation or interview I do people are always thinking “you’re right Rory. I’ve known for a while that there are some changes I need to make in my life and I need to do some things differently. So let’s say I start choosing to Take the Stairs and I start making sacrifices, and paying the price, and start being disciplined…how long do I have to do that for?” Makes me smile.

The truth is we never get to stop being disciplined. Now that doesn’t mean that our life will be one great big giant trip to the gym or that we’re only going to eat foliage for every meal but the reason we never get to stop being disciplined is because of something we, at Southwestern, call the rent axiom. And it says, “success is never owned, it is only rented; and the rent is due every day.” And even though it sounds like bad news at first, if you embrace that attitude as truth then you’ll enter into your commitments understanding that the change you are about to make is not a temporary one but a permanent one. Something magical happens and that is that your appetites begin to change. Until one day what was once a challenge to get yourself to do later becomes the very thing your body craves and what was once a sacrifice to give up later isn’t even much of a temptation.

• Q5: Tell us about your “Take the Stairs tour.” What is it all about?

We decided with all of the momentum of this book that we should do something more productive then just go around to bookstores and beg 3 friends to come out to get their book signed. So instead we are taking a tour bus across the country to 20 states between Feb 20 and Mar 20 to support Youth Character Education. We are hosting 2.5 hr FREE events in every city where members of the community come to a live event at a local venue (high school auditorium, college, church, etc) WITH their teenagers and I teach all 7 strategies of self-discipline and the Take the Stairs mindset. We then collect a $10 suggested donation at the door and give 100% of the money we raise that night right back to that local school district foundation or some other local youth charity that supports character education. Our plan is to hopefully raise at least $10,000 at each event and over $250k total for the whole tour.

Anyone can register, its absolutely free (other than the suggested donation), and we are inviting people to come with their teenagers (8^th grade and up) so they can do something fun together as a family and learn about the importance of self-discipline together. The complete list of tour locations where they can register and all of the information is available at www.takethestairstour.com

Anyone wanting to buy the book can do so at www.buytakethestairs.com.

In recent news, major publications including USA TODAY and CNNMoney have spotlighted the incentives provided by banks. These incentive programs, which offer anywhere from around $2,000 to upwards of $35,000, are intended to provide homeowners with the resources and motivation to pursue a short sale.

As banks look to ramp up short sales, such incentives are becoming more frequent. JPMorgan Chase began their incentive program last year, for example, and Bank of America (which plans a 60-70% increase in short sales this year) piloted a program in Florida this past December. Wells Fargo offers incentives as well, though primarily in states where the foreclosure process is particularly lengthy.

For banks, short sales can be a cheaper alternative to foreclosure. The foreclosure process is lengthy and costly, so much so that providing up to a $20,000 alternative for a short sale is still a cheaper option.

In USA TODAY’s article “Lenders paying borrowers to do short sales,” Jim Gillespie, chief executive of Coldwell Banker, is quoted as saying “It’s a lot cheaper to shell out $10,000 or $20,000 to someone than it is to go through a long foreclosure.”

In addition to the cost of the foreclosure process itself, foreclosed properties sell for less than short sales on average. According to the National Association of REALTORS®, foreclosed properties sold for 22% less than conventional sales, while short sales sold for around 14% less.

We’ve said it before, and we’ll say it again: This year looks to be the year of the short sale. Make sure you’re prepared!

For more information on the distressed property market and tips for listing a successful short sale, watch a free preview of the CDPE course. Click here to watch!

The Obama administration announced its latest plan to help troubled homeowners, enabling an estimated 3.5 million underwater mortgage holders to refinance at today’s historically-low interest rates.

However, experts speculate the proposal—which is expected to cost up to $10 billion and would be paid for by imposing a fee on major banks—could have a difficult time getting Congressional approval.

This proposal follows a string of government-initiated programs that have had mixed success, including the Making Homes Affordable Program. The difference is, Obama’s latest plan would assist borrowers with private (non-government backed) loans.

Under the current proposal, to be eligible borrowers must:

• Have not missed a mortgage payment in the past six months, and have no more than one late payment in the six months prior;
• Have a credit score of 580 or higher;
• Have a current mortgage balance within loan limits for FHA-insured loans in their communities; and
• The property must be their primary residence

As an agent, it’s important to understand the details and restrictions of the program so you can effectively advise your clients on their options. This proposal is already getting a lot of attention by the media, and distressed homeowners may view this as a viable solution to their problems.

However, it’s important to remember that this program would require Congressional approval, which may never happen. If you have clients who are on the edge, if they are facing foreclosure and desperate for help, don’t let the media talk of this proposal distract them from finding a real solution.

Are you well versed on foreclosure alternatives, such as short sales? Test your knowledge with our brief quiz!

The settlement, worth $25 billion dollars, was the largest government negotiated industry settlement since the Tobacco Industry settled in 1998.

In the Settlement, $5 billion is earmarked for $2000 payments to be distributed to borrowers who were illegally foreclosed on between January 1, 2008 and December 31, 2011. The remaining $20 billion will be used to help homeowners who are currently in danger of losing their homes by helping with loan modifications, principle reductions, refinancing, short sales, relocation assistance and other alternatives.

Join us on February 16th, 2012 for an Industry Broadcast, which will give you all the details of the agreement and what it means for agents and their clients. Click here to register!

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 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!

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 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.

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!

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!

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!

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.

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!

Whenever possible, I make it a point to seek out and take advantage of media relations opportunities as they arise. I see national television appearances and even local newspaper coverage as a great chance to represent you and to reinforce the value of the CDPE designation. It’s an ongoing strategy and I cannot urge you enough to cultivate the media in your own market.

The fact is, successful media relations is very much within your skill set as a top-producing real estate agent.  It’s a matter of consistently reaching out, adding value, knowing your scripts, and owning the message.

Remember: there are at least two ways to view any issue. Opportunity in Chaos is one of the underlying tenets of our company.

Always be prepared to position housing news to your advantage.  On the surface, there’s nothing good for a homeowner in the fact that their home values have declined, but as I mentioned in on Fox this morning, declining home values can mean lower property taxes.  Make it your job to point this out to your clients.

After viewing the above broadcast, consider forwarding it to your sphere (including local reporters), via Facebook, Twitter or email.  Include a value-added message along the lines of: “Here are some end-of-year housing tips for you from the company I’m connected to for training and expertise concerning our real estate market!”

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 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.

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!

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.

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!

The article references major lenders—including Bank of America, JPMorgan Chase and Wells Fargo—that are offering cash incentives at closing for distressed homeowners who successfully close on a short sale.

In many markets, these attractive incentives have helped short sales outpace foreclosures, resulting in a “win-win” situation for the banks, homeowners and community at large.

Get the inside scoop on Bank of America’s new program to increase short sale closings by 60 to 70% in 2012. Click here to watch our exclusive interview with Bank of America SVP Bob Hora!

(Photo courtesy of IowaPolitics.com)

In a recent blog post, CNBC’s Diana Olick slams the Republican presidential candidates’ plans for solving the nation’s housing crisis.

Political beliefs aside, Olick makes some astute observations regarding the bank’s preferences for short sales over foreclosures and the important role that Fannie Mae and Freddie Mac play in keeping the market liquid.

Given the major impact housing has on the overall U.S. economy, it’s vital that our political leaders have a thorough understanding of these issues.

The biggest mistake we see politicians make, however, is to claim they have a new plan or program to fix the housing crisis. The reality is, no such “magic bullet” exists. What’s needed is a series of rational financial decisions that will eventually return us to a rational housing market.

Little by little, the housing market is coming back. It’s not going to happen overnight, and it shouldn’t. While creating temporary relief, a return to the irrational housing boom of the past decade would only create future instability.

Educated and experienced real estate agents are playing a crucial role by getting homeowners out of houses they can’t afford, and qualified buyers into existing inventory in a responsible way. Savvy investors have already returned to the market and are helping to relieve oversaturation and fill the increased need for rental units.

If we can change the misconception that housing is a risky investment, we will also see the return of primary homebuyers, and a return to stability in the market.

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Learn more about the role of Fannie Mae and its new Short Sale Assistance Desk, created to help agents get short sales closed faster. Watch our exclusive interview with Fannie Mae VP Marcel Bryar or download our free report.

TransUnion ascribes the increase to the tumultuous economic climate. Continued high-rates of unemployment and a caustic stock market hurt homeowners’ financial stability and leave many unable to pay their mortgages.

This increase in the national mortgage delinquency rate shows that Certified Distressed Property Experts (CDPEs) are needed now more than ever.

CDPEs have the resources, systems, and knowledge to help homeowners in distress exit with dignity.

For more information on CDPE and what the training can do for you, watch a free preview of the course here.

Alex Charfen and Bank of America’s Bob Hora during industry-wide broadcast

When the book is written on how our country emerged from the foreclosure crisis, chances are that Bank of America’s broadcast from the Charfen Institute studio last week will be cited among the turning points. If any of you missed my interview with Bob Hora, Senior Vice President of Mortgage Servicing at Bank of America Home Loans, you can click here to view the broadcast in its entirety.

As the nation’s largest loan servicer, Bank of America’s influence cannot be underestimated. And with 35,000 real estate agents having been trained in the Certified Distressed Property Expert (CDPE) curriculum, the influence of CDPEs cannot be underestimated either. It’s no wonder than tens of thousands of industry members joined us on the call.

Together, we represent two of the housing industry’s most prominent powerhouses that have stepped up in alignment to do what it takes stem the tide of homes going into foreclosure.

For those of us who have been helping distressed homeowners to negotiate short sales for any length of time, the mere fact that banks and short sale agents are now sitting on the same side of the table declaring a mutual commitment is a quantum leap forward. And this is just the beginning.

What’s important for you to know as a CDPE agent is that it’s no accident that Bank of America chose our Charfen Institute studio as the location from which to announce its increased momentum to accelerate short sales. Your training, your effectiveness and your commitment to your clients has captured the attention of major banks. Banks have made it clear that they hope to work with agents like you who have the education and professionalism to efficiently navigate short sale transactions through to completion.

Your CDPE designation means more now than ever before. Make sure your clients and your market is clear on your competitive edge and what you have to offer. And more importantly, make sure that you are continuing to build your business and sharpen your edge with the latest strategies and support that we have to offer.

“Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has.”
Margaret Mead

This week’s announcement that CDPE trained agents have surpassed the 35,000 mark is a significant milestone in the recovery of our country’s real estate market.

35,000 thoughtful, committed agents who have what it takes to help homeowners at the end of their rope, to avoid foreclosure are having a huge impact. One homeowner at a time, we are stemming the tide of foreclosure, giving hope, and keeping homes in the hands of families—and off the books of banks.

When we look back at the humble, but highly committed, beginnings of this company and the awesome agents who have gotten on board with us every step of the way, it is not hard to believe that anything is possible.

A recent conversation with Denise Nuno, who is an agent with Taylor Realty Associates in Dallas, summed up for me what we are all about as a company.

Denise said that at the time she met her client, he had $30 to his name and was about to have his utilities turned off. Feeling no reason for hope, his plan was simply to walk away from his home. Denise talked him into taking a shot at a short sale, and he gave her to the end of the month to make it happen.

Denise helped him to sell his appliances so that he could pay for basic living expenses and she got a donation from a rescue organization that she supports so that he could feed his dog.

“At the end of the four-week mark,” she said, “I asked him if he could hang in and by that time, he was totally different. His attitude had shifted from ‘why bother,’ to being very engaged in the process and working hard to make sure his home was in shape for every showing and attractive to a buyer.”

The offers came in, the short sale was approved and Denise said that “It was a very exciting to witness his transformation as he realized that he was going to have a chance to start over in a new location. He now has a new job that he loves, and things are going well.”

And here’s the part of my conversation with Denise that I trust all of us can relate to in some way:

“Nothing I’ve ever done in my life has made me feel better about myself than helping my client to get a new lease of life. It’s beyond belief.  I really could not do anything that could make me feel better about what I’m doing with my life. As a CDPE agent, I am very fortunate to be able to help people in such a meaningful way.”

The new HARP is by no means a game changer, but the media’s attention will spark questions from your clients. Your ability to offer an informed perspective is critical to the value you bring to the relationship.

Here’s essentially what we’ve had to say about the revamped government mortgage refinancing program:

HARP 2.0, as the media has started to refer to it, has some merit, but it’s scope is very limited and it will have little or no impact on foreclosures or the estimated 6.4 million homeowners nationwide who are behind on their mortgage payments. The new HARP just expands the net of those who were eligible for help under the original version.

HARP was created in April of 2009 to help borrowers whose loans were backed by Fannie Mae or Freddie Mac, but did not have enough equity or negative equity to refinance. Under the original version of HARP, borrowers who were current on their payments and owed up to 125 percent of the current value of their homes could refinance their mortgage.

The original HARP fell short of expectations. Over the past two and a half years, only 838,000 homeowners have benefited from the program. The new HARP has broadened the base with looser eligibility requirements.

Borrowers with FHA, Fannie Mae or Freddie Mac mortgages that were sold to Fannie or Freddie before May 31, 2009,  will be able to refinance, no matter how far underwater they are. Banks will only have to verify that borrowers have made their last six payments, that they’ve haven’t missed more than one payment over the past year, and that they have a job or another source of regular income.

Other key changes:

• Appraisals are no longer required if there is a reliable automated valuation model (AVM)–a significant hurdle in the previous plan.
• Risk-based fees have been eliminated for borrowers who refinance to 15-year mortgages.
• Existing mortgage insurance coverage can be transferred much easier than under the original HARP.

While the new HARP won’t help homeowners who are behind on their payments and at risk for foreclosure, it is a welcome relief for homeowners who have been caught in the Catch-22 of not being able to refinance because they owe more on their mortgage than their home is worth, and at the same time, don’t qualify for a short sale or a loan mod because they are current on their payments and still have  income and assets.

More money into the pockets of this segment will mean more dollars back into the economy, potentially heading off strategic defaults and keeping and stemming the tide of homes entering the foreclosure pipeline.

Bottom line: Our clients are looking to us for answers and perspective. The new HARP plan presents an awesome opportunity to reach out and connect.

Need to check whether you clients’ mortgages are guaranteed by Fannie Mae or Freddie Mac?  Go to:
http:loanlookup.fanniemae.com/loanlookup/
https:ww3.freddiemac.com/corporate

The excerpt from following email that I received last week from Joe Pryor with Redbud Realty & Associates in Oklahoma City, is testimony to the caliber of people who have joined forces with us. Joe had participated in our LEAD Experience event earlier this month, and participated in the tour of our offices on the second day of the three-day LEAD Experience event.

Alex,

As always, I am grateful for what you and Cadey and all the team have created. There is nothing like it in real estate for its energy, and like Steve Jobs you have defied conventional wisdom when you say it was not wisdom at all. That I hope will be a lasting legacy. I need to share a few observations. I visited twice last year and this time I thought that maybe the Huddle would be old hat and it was not. I was impressed with an extra energy but maybe the energy was also in me and I just connected better.

I am always impressed that with all the folks there because I never feel like a guest, rather as one of a team trying to do great things. As for LEAD: what a concept or maybe I should say a dream in honor of your inspiration from Martin Luther King, Jr., that “Almost always, the creative, dedicated minority has made the world better.”

Joe Pryor

Thanks for sharing your thoughts with us, Joe. It is a privilege to be a part of your life and the lives of so many determined business owners such as yourself who inspire us every day with their determination to let go of limits.

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