A new report from the Boston branch of the U.S. central bank warns that servicers have been reluctant to renegotiate mortgages since the foreclosure crisis started in 2007. Regardless of the workout scenario – whether short sale, deed in lieu of foreclosure or loan modification, the Federal Reserve economists who spearheaded the research concluded that lenders invariably expect to recover more from foreclosure than from a workout scenario.
In analyzing a database of more than 650,000 residential mortgages, the researchers were able to document that during the past two years, lenders and their servicers performed payment-reducing modifications on only about 3 percent of seriously delinquent loans, and another 5.5 percent received workouts that did not lower payments.
In the meantime, RealtyTrac released the latest figures in Foreclosure Filings for May: 321,480 - Down 6% from April, Up 18% from 2008. My own closings on REO’s have been delayed last week due to the deluge of foreclosures in this county and the inability of our system to process the Master in Equity Deeds.
My 80 hour weeks spent dealing with these Short Sales and REO’s have impacted my own life in ways that are difficult to explain. My family is urging me to reevaluate my practice and scale down on the number of transactions I take on. Each deal is laced with a multitude of problems, an obstacle course of sorts. Although I very much enjoy the work and the results, I have to agree with the people who love me: after it’s all said and done, I am left with very little time and energy for a quality life.
For those of you deep in the trenches of this arduous market, I have two questions:
How has your business changed?
What specific steps have you taken in order to cope with it all?
I look forward to hearing from you on this!
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I enjoy what I do, but it's been taking a toll on me. I would love to hear from you on how you cope with this labyrinth of problems. I find myself doing nothing but solving issues all day long.
"That which does not kill you, makes you stronger..."
Or?
Last fall, I started working the buyer side of foreclosures with a vengence. Most of the foreclosures on the market back then were severely distressed,( frozen pipes, no heat etc). so I worked with investors. Grateful for the ones I worked with, but made this foreclosure thing my only focus... not on the listing side.. but the buyer side. My income took a nosedive, as my time spent in the business increased. This was not a good decision for me. Hindsight is always 20/20.
Now I am focused and doing very well in traditional real estate. Thank God!
Lori: My income has not suffered one bit. I closed over 4MIL in the last 6 weeks and I have 3MIL ahead. I just have very little time for anything else and my quality of life has suffered.
Mirela,
Funny you should write this blog, I was just thinking the same thing...it just never ends...
I live in the most beautiful part of south Florida. I cannot tell you the last time I did anything for myself, nor did I have the time. I cannot recall when I could spend a few hours at the pool or the beach...I love what I do as well, however...
BTW, just FYI, your blog log readers pics are not showing up.
Karen: I know the bottom part of my blog log doesn't show the pictures, but the top half does, doesn't it? I have no idea how to drop that second "blank" half. If anyone at AR wants to help, please do!
You know Karen, we can't go like this forever; this market will kill us...
Mirela, I have only done a few short sale listings in the last 2 years. One that I have on the books right now received an offer on June 26th that I forwarded to the Loss Mitigation dept. and on July 7th I called to inquire the status of said offer! I was told that US Bank has 11,000 short sales in process at the moment and when this one gets a foreclosure date they will respond to the offer. I told the lady that I didn't care about the 10,999 other short sales, I just care about my clients, who are trying to avoid foreclosure and did the right thing by listing it, oh and by the way it is in pristine condition! Well as I talked to several people I actually got some action, they called for a BPO and that evening I had a call from an agent who had a request for a BPO to be done by 2pm the next day! We will see what happens.
I hate what the banks and lenders are doing to good people who have bad things happen to them and cannot help their present situation. I hope they come to their senses and make this monster right~~
Thank you for the timely question Mirela, I too enjoy what I do, I have learned to love this business of mine since 1985, this market has been very challenging and I agree with you about the amount of time spend and the income generated, they seem to be going in different directions! I have not made an effort to go after foreclosures or short sales, I have done a couple of short sales as a listing agent, and several as buyers agent, not fun at all. I am concentrating my efforts in more "traditional" type of real estate, farming, probates, past clients, sphere of influence and the like.
We look for buyers by giving them free dance classes at our home. We keep an eye in the budget, spend a lot more time in the garden, take longer siestas... and plan to survive this market with less money and more sanity also making adjustments to our life style. No more ballroom dance competitions out of town, no more expensive ballgowns for Alexia (she does not read these posts) no vacations, stay home, stay healthy and sane, I have taken more webinars, taught myself some computer skills on line and pretty much chill out and wait it out. This too will pass.
Antonio
Mirela,
Our market is so different and the community I market in has only had one foreclosure in the past 2 years. Our prices are down but those wanting to sell can as long as they are realistic about the price. Educating sellers on pricig has been my biggest concern but they can't argue with the results!
Mirela,
I understand completely. I have plenty of business but, I am getting sucked into the short sale market. I have several listings and buy side also. But those transactions take so much more time and effort versus the "normal" transactions.
Mirela,
I handle about four New bank listings a week - so am very busy not making money all this activity has it's plusses:
1. I by necessestiy, have become better organized
2. The extra customers this business attracts has been a profitable by-product.
3. I "truck fools" less than I used to
4. "Paperless" is the way I must be - esp when we have 15 offers on one listing.
5. i have been "using every arrow in my quiver" - all the tools.
Thanks,
Gregg
I follow another agent here that tends to know the market and changes way ahead of others. So I have been fortunate to stay ahead myself. We are currently dealing with investors and first time buyers that we normal don't see.
Only because the homes are in move in condition.