Getting Started As A Real Estate Sales Person And What You Need To Know
With an onslaught of foreclosures due on the market in the next couple years it has never been more imperative to understand the HUD 9548 contract. Most licensed agents pass over HUD sales. Many analysts are predicting default rates in the next years that will be higher than all we have ever seen since lending initiated. Why will this alter HUD inventory? Because plenty of loans assembled from 2005-2009 were fha backed, new home buyer loans. Countless of those loans will be foreclosed upon. Subsequently, the value of those homes will now be lower and within the FHA lending range thresholds. So, new home buyers will be possessed to once again attempt to reach for the American Dream. Why does that matter? Read on.
Think about his. When the foreclosure crash initiated in 2005 buyers were running afraid and the "then" current home owners were panicking. What most didn't consider was that there were anxious, potential home buyers waiting in the wings that had been saving for years to buy a home. And, nationwide, they signed up quickly to get a home...tens of thousands.
Fast forward two years to 07. Market in a downtrend. Home prices descending. Anxious, new buyers securing loans and homes. Then, the Feds enact a first time home buyer tax credit and some states followed suit by offering state tax credits as well that continued on through 2010. Another buying explosion.
Why does this matter at this time? Because many banks love fha insured lending as their loan, to a certain percentage, is guaranteed against default and, predatory lending was still happening in 07. The government hadn't regulated these clowns. So, since the tax credits were offered, many persuadable, first time buyers were signing up to get a loan and new home for whatever price and, no matter what the cost. Most of those loans were 3/1 and 5/1 ARM's. So, 2007 until 2010 ='s 3 years and then default. Boom! Another crisis is looming.
While those buyers were motivated, many bought because of the tax credits offered and low down payment. All buyers didn't consider that home prices were crumbling and the country was about to enter into a deep, multi-year recession. They were just in love with the American Dream. Well, scores of those buyers lost their jobs in the past couple of years and have now depleted their saving and are now falling behind on their loans.
Let's be honest, in our opinion, FHA borrowers/first time home buyers, for the most part, are cash deficient. With a double dip recession on the horizon most of these fha borrowers have received an NOD and are on the verge of officially defaulting. Tons of excited, new home owners from 2007 are now in a state of panic trying to preserve their home. The proper processes weren't in place. Another crisis is upon us. We tried to solve a problem with a problem.
So, why is it more important now than ever before to have knowledge of hud home sales and how to efficiently close these transactions? It is because FHA/HUD homes are now going to be the norm in the market place. Previously, home prices were inflated tremendously and many were out of the fha lending thresholds. Not true any more. When getting started as a new real estate agent you need to understand every dynamic associated with the Housing and Urban Development procedures and also the Federal Housing Administration lending. If you learn these simple procedures now and master them you'll never will have a problem with getting an offer accepted or closed.
Think about his. When the foreclosure crash initiated in 2005 buyers were running afraid and the "then" current home owners were panicking. What most didn't consider was that there were anxious, potential home buyers waiting in the wings that had been saving for years to buy a home. And, nationwide, they signed up quickly to get a home...tens of thousands.
Fast forward two years to 07. Market in a downtrend. Home prices descending. Anxious, new buyers securing loans and homes. Then, the Feds enact a first time home buyer tax credit and some states followed suit by offering state tax credits as well that continued on through 2010. Another buying explosion.
Why does this matter at this time? Because many banks love fha insured lending as their loan, to a certain percentage, is guaranteed against default and, predatory lending was still happening in 07. The government hadn't regulated these clowns. So, since the tax credits were offered, many persuadable, first time buyers were signing up to get a loan and new home for whatever price and, no matter what the cost. Most of those loans were 3/1 and 5/1 ARM's. So, 2007 until 2010 ='s 3 years and then default. Boom! Another crisis is looming.
While those buyers were motivated, many bought because of the tax credits offered and low down payment. All buyers didn't consider that home prices were crumbling and the country was about to enter into a deep, multi-year recession. They were just in love with the American Dream. Well, scores of those buyers lost their jobs in the past couple of years and have now depleted their saving and are now falling behind on their loans.
Let's be honest, in our opinion, FHA borrowers/first time home buyers, for the most part, are cash deficient. With a double dip recession on the horizon most of these fha borrowers have received an NOD and are on the verge of officially defaulting. Tons of excited, new home owners from 2007 are now in a state of panic trying to preserve their home. The proper processes weren't in place. Another crisis is upon us. We tried to solve a problem with a problem.
So, why is it more important now than ever before to have knowledge of hud home sales and how to efficiently close these transactions? It is because FHA/HUD homes are now going to be the norm in the market place. Previously, home prices were inflated tremendously and many were out of the fha lending thresholds. Not true any more. When getting started as a new real estate agent you need to understand every dynamic associated with the Housing and Urban Development procedures and also the Federal Housing Administration lending. If you learn these simple procedures now and master them you'll never will have a problem with getting an offer accepted or closed.
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