2010 IS the year of the Short Sale…..in this market if you aren’t doing short sales…you are out of business. Depending on your market, short sales are the market….

Investors buying homes to rent or sell accounted for only 15 percent of the housing market last month as they competed with large numbers of first-time homebuyers flooding the market to buy in time to qualify for the first-time homebuyer credit. The percentage of first-time buyers closing on homes rose from 42 to 47 percent of all home sales in October, according to an Inside Mortgage Finance/Campbell Communications survey released today.

However short sales—sales for less that the owner owes on the property—soared in October. The shortsale inventory is booming as owners who are underwater on their mortgages seek to dispose of their homes. Short sales nationwide increased from 13 percent in June to 15 percent in October. Some 30 percent of properties sold last month in California were short sales, which were particularly popular with first-time buyers. They accounted for 57 percent of all short sale purchases, at an average price nationwide was $221,414.

UPDATE: Watch the 2 videos we created that explain what massive changes are taking place NOW with short sales. Everything you need to know about the NEW 2010 Treasury Department Guidelines.

Though investor purchases of bank-owned properties is declining, investors still accounted for more than half of the damaged bank-owned foreclosures sold during the month, and more than 72 percent used cash to make their purchases. About 13 percent of all homes sold were damaged REO properties.

Investors paid less on average than first-time and existing homeowners, an average of $186,831. First-time buyers paid $192,884 and existing owners $299,963 on average. Investors concentrated damaged REOs, which have declined from 20 percent to 15 percent of the market supply since July.

Competition is hot for damaged REOs; they attracted an average of four offers each in October. Damaged REOs sold for an average of $129,567, less than move-in ready REOs, short sales and non-distressed properties. However, the average price for damaged REOs has risen more than $30,000 since July while non-distressed property values are falling. Damaged REOs spent the least time on market of any property type, an average of 7.5 weeks.

Short sales, on the other hand, spent the longest on market, 17.5 weeks, and received an average of 3.1 offers. Forty-five percent of short sales were financed by FHA, which reflects their price and their popularity among first-time buyers. Sixty-one percent of first-time buyers used the FHA for their loans.

Agents, as you know we have been offering short sale training for years (and years) now. We were the first national coaching company to teach agents how to do short sales…and we are by far the largest. Thousands of agents have received their HREU CDPD* (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here.

The survey of 1500 real estate agents found that number of first-time buyers was easing as the deadline for the first-time buyer credit neared in October. The credit has since been extended until April 30 and expanded to include move-up buyers as well.

From Real Estate Economy Watch

What do you expect for 2010-2011….a real estate recovery or….more of the same?

Consider the fact that what actions you are taking today will directly determine the results you get next year.

For example, if you believe that the real estate markets have hit bottom…that foreclosures and short sales will soon be a thing of the past….what actions do you take now?

If you believe that boom times will soon be here again,…and homes values will soon recover…..what actions won’t you take now? You won’t learn how to do shortsales…you won’t learn how to list REOs…in other words, you will simply wait, hope and pray that everything will return to ‘normal’.

I know some of you DO believe this…we hear this form agents, we read this on other blogs…… Worse yet, I HEAR other ‘real estate guru’s’ telling agents that 2010 will be the year of the housing recovery.

(for the record, we hate being called Gurus…a Guru wants you to be dependent…they want you to need them forever. Our goal is for YOU to have the skills, mindset and then the education to become your own guru)

Here is the point, what if the real estate markets never ‘recover’. Thats right..NEVER RECOVER. In the sense that they are never like they were during the bubble-boom. What if THIS market is the new normal. THIS market where 30%+ of all sales in most markets are ‘distressed properties’. Where its ‘normal’ for a home owner to never have equity. Remember, Julie and I sold real estate in Central Ohio. In that market, it was normal for a home to not appreciate or appreciate at such a low level that the seller was barely breaking even even after living in the home for years.

We have been telling everyone who would listen for the last 5 years that the Short Sales would eventually become THE solution.

Bottom line, 2010 is the year of the short sale.

If there was any doubt in your mind that being a short sale specialist…having your HREU CDPD (Certified Distressed Property Designation) was optional……thes ground breaking changes happening in 2010 to the entire short sale industry will 100% convince you. There should be no question in your mind that short sales are simply one of the best ways to truly be of service to others and earn an amazing income for doing so. We have made it easy for you. Watch the FREE How-To list Short Sales video and then download the FREE Short Sale Secrets book NOW.

Here is a great article from CNNMoney.com

In November, for the fourth month in a row, the number of foreclosure filings in the United States declined — an 8 percent drop from October. But foreclosure experts aren’t celebrating. They’re bracing for the next wave of default notices, foreclosure auctions, and bank repossessions, which could hit early next year.

“We don’t believe the underlying conditions have actually improved,” says Rick Sharga, senior vice president with RealtyTrac, which released its report of foreclosure trends Thursday. Instead, state and federal efforts to help homeowners work out their problem mortgages are delaying foreclosures, he adds.

Even in a normal year, a third of these attempted workouts end up in default, he says. With high unemployment, tight credit, and depressed housing prices, this period will see much higher failures of workout plans, mortgage experts say.

For the moment, the number of foreclosures continues to fall. In November, the total fell to less than 307,000, the fourth monthly decline in a row after peaking at 360,000 in July. That’s the lowest monthly level since February and, on the surface, represents particularly good news for Nevada.

For the second month in a row, the number of Nevada properties receiving a foreclosure notice fell by a third. Las Vegas, which had topped the list of large cities with high foreclosure rates, fell to No. 5 in November.

The problem is that these drops are artificial, brought about because Nevada recently instituted a mandatory mediation program for problem loans, Mr. Sharga says. That’s a potential boon for some owners of distressed homes. It may help those on the margin restructure loans that might otherwise default. Such programs are also helping to keep the foreclosure problem from spiraling out of control and sending home prices plunging again.

The challenge is that many of these attempt work-out loans won’t work out, so foreclosure isn’t averted, it’s simply delayed. Of an estimated 7 million troubled home loans in this down cycle, 3.9 million will go through foreclosure, predicts William Campbell, a real estate adviser and head of RPC Group in Little Rock, Ark.

“We’re going to see a long drawn-out housing recovery that will gradually dispose of these distressed properties over the next three years,” says Sharga of RealtyTrac, an online marketplace for foreclosure properties based in Irvine, Calif. “Modifications will help, but they won’t solve the problem. It’s too big.”

Join us for this weeks HREU Superstar interview…

Shortsale Commander

Tomorrow’s Superstar is the founder of a company that specializes in helping agents list and sell more short sales.

No, not a short sale processing company (we are still in search of a processing company we feel comfortable with…don’t hold your breath)

Shortsale Commander is an online software system that manages the entire Short Sale process for you. We recognize that Short Sales have many moving parts…extra forms…extra paperwork. Its easy to lose track of all the details.

That’s where Shortsale Commander comes in. Think of this as Top Producer…for short sales (and its easier to use).

As you know, 2010 IS the year of the Short Sale. If you have any doubt about this, check-out this post.

Here is the information you need for your schedule:

EVENT: Super Star Interview
DATE & TIME: Friday, December 11th at 9:00am Pacific
FORMAT: Simulcast! (Attend via Phone or Webcast — it’s your choice)
TO ATTEND THIS EVENT, CLICK THIS LINK NOW…
http://instantTeleseminar.com/?eventid=9769062

More on tomorrow’s Superstar..this is from his blog:

Short Sale Commander is web-based, easy-to-use management & processing software that perfectly integrates all parties involved in the short sale process to more efficiently handle more leads, process active files and close more deals. It is the complete management solution with the essential ingredients to work smarter, minimize risk and cut costs in today’s changing market.

GET MORE PEOPLE WORKING – With Short Sale Commander, working with your team is easier than ever. Easily change file access to allow any one in your team to help with any file. Allow multiple people to work jointly on deals, even if they work in different offices. Keep everyone on the same page with centralized data access and a standardized process. Work closer with short sale partners by giving them limited file access and document upload capabilities.

GROW FAST – Short Sale Commander’s system allows for rapid growth without all the headache. Quickly identify deals that are ready to close and make money, using a simple 7 step process. Effectively manage your overall pipeline and staff with flexible reporting tools. Reduce errors using automated document management. Stay on top of each deal using time-stamped activity log.

FINGERTIP ACCESS – All of your data is a click away. Easily navigate between multiple property files or directly to specific details within an individual file. Improve negotiation efficiency by recording property problems, seller hardships, counter-offers & other details. Leverage “bad” and “good” photos stored in the file when negotiating with lender or attracting a buyer. Keep track of all offers and buyer info in one place.

GO PAPERLESS – Store important documents centrally, in any file format. Ensure completeness of short sale packages utilizing document checklists. Easily create professional, lender specific short sale packages automatically. Eliminate redundant data entry using pre-populated forms and lender packages.

Top Features

Document checklist – the system now automatically maintains a document checklist as you upload documents. This will help reduce errors and make it easier to track all documentation required to complete the short sale.

Packages – You now have the ability to easily create professional bank packages from the documents that have been uploaded to the file. All you have to do is assemble the documents in the desired order and the system will automatically generate a cover page, summary page with document checklist, header, footer and page numbers.

Auto-forms enhancements – Some banks require that you utilize their specific forms when creating the short sale package. We’ve now included many of these lender specific forms so that they can be automatically populated with the data you’ve already entered for the property, thus eliminating redundant data entry and reducing the chance for errors. You can save these pre-filled documents and upload them to the property file for inclusion in the final short sale package.

Email – You can send an email related to the property to one or more recipients. Any document or package stored with the property file can also be emailed to any of the parties involved in the short sale, streamlining the process and eliminating the need to print as much (saving a few trees!). All emails are tracked in the file’s activity log for easy reference.

Follow-up date for events – Now you can quickly hone in on which properties need follow up on any given day. As you add activities to the activity log, you can specify a follow up date and associated note. Follow-up dates also appear in the pipeline reports. This enables you to sort based on follow up date, and identify all files that require attention.

Property mapping – From within Short Sale Commander, you can map individual properties, saving you the extra steps required to do that separately on another website.

Photos – Photos of the property can now be stored and viewed within Short Sale Commander. Once uploaded, you can designate them as either “good” photos or “bad” photos. You can also identify a main picture to be displayed in the file header at all times.

Many agents are still confused about commissions when it comes to short sales.

Here is what is important:

1) If the INVESTOR is Fannie Mae or Freddie Mac the commission can’t be any greater than 6%.

2) There is an appeals process if you have any (or had any) issues collecting your commission as a result of the servicer (or more traditionally called ‘the Bank/ Lender/ Mortgage company etc) not paying you 6%. (this is assuming the listing contract that the seller signed was for 6%)

3) To learn if its a Fannie/ Freddie loan go here: http://www.makinghomeaffordable.gov/loan_lookup.html

As you know we have been offering short sale training for years and years now. We were the first national coaching company to teach agents how to do short sales…and we are by far the largest. Thousands of agents have received their HREU CDPD* (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here

FannieMaeConfirmsShortSalesCommissionsPolicy andEstablishesAppealsProcess

NationalAssociationofREALTORS®GovernmentAffairsDivision
500NewJerseyAvenue,NW,WashingtonDC,20001

IndiscussionsbetweenNARandFannieMae,FannieMaehasreconfirmeditsshortsalecommissionpolicy
andestablishedaprocessforREALTORS®tofollowifissuesarise.OnFebruary24,2009,FannieMaesent
Announcement09?03toitsservicersinstructingthemnottonegotiatecommissionsonshortsalesbelow
theamountnegotiatedbythelistingagent,unlessthecommissionexceeds6percent.

Privatemortgage
insurancecompaniesandsecondlienholdersmaystillseektoreducecommissions.Inresponseto
concernsraisedbyNARthatsomeservicersofFannieMaeloansareunawareofthispolicyorbelieveitis
notbinding,FannieMaehasestablishedaprocessforNARmemberswhenshortsalecommissionissues
arise.

Step1:DeterminewhethertheloanisownedorguaranteedbyFannieMae.Onlytheholderoftheloanis
allowedtodothis,sodosointhepresenceofyourclientorafterobtainingtheirwrittenpermission.

Usethiswebsite:www.fanniemae.com/loanlookup,or

Ifyoudon’thaveconvenientinternetaccess,call:1?800?7FANNIE(8amto9pmEasternTime)

Step2:Iftheservicerisunawareofordisagreeswiththepolicy,provideacopyofAnnouncement09?03to
theservicerandnegotiateanappropriatecommissionbasedonthelistingagreement(upto6percent).

Step3:ContactFannieMaeifthedisputeisnotresolveddirectlywiththeservicer.Bepreparedtoprovide
thepropertyaddress,nameofowner,andFannieMaeloannumber(ifavailable):

Call:1?800?7FANNIE(8amto9pmEasternTime),or

Email:Resource_center@FannieMae.com.
FannieMaeAnnouncement09?03(2/24/09)
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0903.pdf

AND FreddieMac’s Commission Guidelines….

Freddie Mac Issues Written Short Sales Commission Policy
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001

On August 20, 2009, Freddie Mac confirmed in writing that its servicers are not allowed to renegotiate short sales commissions. According to the policy, as a condition of the servicer’s acceptance of a short sale offer, servicers cannot renegotiate the sales commission below the amount agreed to by the real estate broker and the seller/borrower. However, if the negotiated commission exceeds 6 percent, servicers are required to limit it to 6 percent. This Freddie policy is consistent with Fannie Mae’s policy. Private mortgage insurance companies and second lien holders may still seek to reduce commissions.
NAR has asked Freddie to establish an appeals process for cases when servicers refuse to comply with Freddie Mac’s policy.
Freddie Mac Single-Family Seller/Servicer Guide Bulletin 2009-22 (August 20, 2009)
http://www.freddiemac.com/sell/guide/bulletins/pdf/bll0922.pdf
Fannie Mae Short Sales Commissions Policy and Appeals Process
http://www.realtor.org/wps/wcm/connect/4fb4f4804e824cf0a6e8e696c79aa288/government_affairs_fannie_short_sales_policy.pdf?MOD=AJPERES&CACHEID=4fb4f4804e824cf0a6e8e696c79aa288
NAR’s Short

Do Mortgage Loan Modifications work?

Is the Obama administrations 75 BILLION dollar ‘Home Affordable Modification Program’ (HAMP) doing anything to end the seemingly never ending foreclosure crisis?

Will mortgage loan modification’s end the housing crisis?

Read this…watch the video….and you tell me!

Here are the facts:
1) 78 banks and servicers in the HAMP, which represent 85 percent of the total mortgage market, have just over 3 million loans on their books that are at least 60 days past due. So they sent out notices to those 3 million borrowers requesting more information.
2) A lot of those borrowers (as high as 50 percent) didn’t respond, according to the banks. Some don’t even live in the houses anymore. Gone.
3) 1,032,837 were offered modifications. But only 759,058 modifications were started. Why? Because a lot of the borrowers just didn’t want them. They would rather try to sell the house or go into foreclosure and walk away. Remember, some borrowers are so underwater on their loans, that they will never see equity again, so why bother making any modification payment, even if it is affordable.
4) Of the 759,058 modifications started, 697,026 are still in the three month trial phase.

AGENTS: As you know we have been offering short sale training for years and years now. We were the first national coaching company to teach agents how to do short sales…and we are by far the largest. Thousands of agents have received their HREU CDPD* (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here.
5) Treasury reports that 31,382 trial modifications are now permanent. It also reports, well I had to do the math because they didn’t put it on the report, but a spokesperson did independently confirm, that 30,650 modifications were disqualified.
6) Treasury officials noted the 31,000 number in the release: “the report shows that servicers have only converted 31,382 modifications to the permanent phase.”

Watch this video now….

Realty Tracs data on foreclosures…scary stuff:

As you know we have been offering short sale training for years and years now. We were the first national coaching company to teach agents how to do short sales…and we are by far the largest. Thousands of agents have received their HREU CDPD* (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here.

At this point there should be no doubt in your mind that this market…with short sales and REOs is here to stay. Making 2009-2012 real estate market predictions is easy…more of the same!

I search daily for any ‘optimistic’ housing news…believe me, I want the housing markets to return to ‘normal’ as much as you do. But, we can’t replace mere hoping with focused action. This is the market of the moment and as a real estate professional..you either learn how to do short sales and list REOs or chances are…you won’t be in the business much longer. Watch the videos that we created earlier this week that will help you to prepare for what will happen in 2010. Watch videos NOW.

In a dour year for the economy, the housing market has offered some glimmers of hope. Home sales have improved, recently hitting their highest level in more than two years. There’s been talk of bidding wars resuming in places like Silicon Valley and New York City. And cocktail party chatter everywhere has started to turn to talk of a bottom. So at least where housing’s concerned, things are looking not so bad — right?

If that’s what you think, you may not want to invite Mark Zandi to your next cocktail party. The chief economist of Moody’s Economy.com, Zandi has some sobering predictions: Home prices are going to fall 5% to 10% more — and over 30% in places like Miami — between now and this time next year. Then they might start turning around. (Emphasis on “might.”)

At the top of Zandi’s list of worries are foreclosures — specifically, the millions of loans that are in foreclosure or headed there that can’t or won’t be modified. According to RealtyTrac, nearly 2 million housing units in the U.S. are in foreclosure or bank-owned, and millions more are likely to join them.

Zandi estimates that 2.4 million homes will find their way into foreclosure next year. He expects banks to start putting those properties on the market more aggressively during the first half of the year, resulting in a flood of cut-rate inventory that will drag prices down.

As you know we have been offering short sale training for years and years now. We were the first national coaching company to teach agents how to do short sales…and we are by far the largest. Thousands of agents have received their HREU CDPD* (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here.

It would be one thing if banks could sell into a hungry real estate market. But that brings us to Zandi’s second concern: skyhigh unemployment.

October’s 10.2% figure was higher than what most economists forecast for the peak. A soft job market, especially one this soft, means potential buyers don’t have money to pour into new homes or the confidence that they’ll be able to hang on to their jobs and pay the mortgage on their existing home.

Another concern: Policymakers will pull their support from the market prematurely. Aggressive government moves, like the recently extended first-time-homebuyer tax credit and the Fed’s purchase of mortgage-backed securities, have been propping up the market.

The purchase plan is set to expire in March, which Zandi says could bump mortgage rates up as much as a full point. “That raises the cost of buying a home, and in this fragile market people won’t buy,” he says. “And that’s a problem.”

All those factors are figured into Economy.com’s housing price outlook for 2010 — as are local figures for income, population, interest rates, and foreclosures.

The results are broken into 100 metropolitan areas. (Last year the projections were pretty accurate, forecasting a 14.5% decline in 2009; the actual figure is likely to come in around –13.2%.)

As the sea of red above shows, the numbers are negative across the country.

Agents, is there any question that 2010 IS the year of the Short Sale? We were the first national coaching company to teach agents how to do short sales…and we are by far the largest. Thousands of agents have received their HREU CDPD* (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here.

The weakest areas are Florida, California, Nevada, and Arizona — what Zandi calls the “usual suspects” — where foreclosures are highest and likely to rise. The worst market: Miami, where the 2009 median home price of $183,530 is expected to fall 33%.

But Zandi also points to less discussed regions where prices are still inflated relative to rents, like the Pacific Northwest and New York through Virginia.

If there’s a bright spot, it’s pockets of the Midwest — states like the Dakotas, Kansas, and Nebraska, which have stronger economies based on agricultural and energy industries.

Then there’s Pittsburgh, which didn’t have much of a housing bubble to begin with and is the only market projected to grow next year, up 0.41%.

The good news? “It’s clear we’re closer to the end of this crash than the beginning,” says Zandi. Housing is more affordable, and construction is still low, so sales will eat up excess inventory. “We’re moving in the right direction, and that’s reason for optimism,” he says.

Another plus: He says there’s almost zero possibility of another U.S. housing bubble anytime soon. Great article from CNNMoney.com

Rank by 2010 price change Metro Area 2009 median house price Projected price change 2010 Projected price change 2011 1 Pittsburgh, PA 114,750 0.41% 2.23% 2 Rochester, NY 114,630 -0.39% 1.93% 3 Birmingham, AL 139,330 -0.78% 1.29% 4 Memphis, TN 107,690 -1.53% 2.41% 5 Buffalo, NY 108,170 -1.54% 0.86% 6 Houston, TX 146,350 -1.75% 0.38% 7 Kansas City, MO 135,420 -1.81% 0.16% 8 Louisville, KY 124,660 -2.24% 1.05% 9 Little Rock, AR 130,380 -2.27% 2.01% 10 Charlotte, NC 185,880 -2.30% 1.42% 11 Wichita, KS 115,260 -2.32% 0.42% 12 St. Louis, MO 115,720 -2.39% 0.28% 13 Dallas, TX 149,320 -2.57% 0.39% 14 Fort Worth, TX 118,920 -2.59% 0.44% 15 Columbia, SC 135,980 -2.66% 1.96% 16 Omaha, NE 131,290 -2.75% 1.46% 17 Denver, CO 204,570 -2.79% 3.02% 18 Greensboro, NC 135,920 -2.80% 0.95% 19 Albany, NY 188,600 -2.82% 0.78% 20 Baton Rouge, LA 160,370 -2.85% 0.39% 21 Tulsa, OK 131,600 -2.86% 1.50% 22 Syracuse, NY 122,420 -2.87% 2.32% 23 New Orleans, LA 158,900 -3.10% -0.69% 24 Indianapolis, IN 105,100 -3.23% 0.73% 25 Gary, IN 101,180 -3.30% 0.44% 26 Austin, TX 187,590 -3.33% 0.96% 27 Seattle, WA 340,050 -3.42% 6.54% 28 San Antonio, TX 148,580 -3.71% 0.71% 29 Grand Rapids, MI 76,620 -3.88% 0.83% 30 Milwaukee, WI 199,820 -3.92% -0.22% 31 Oklahoma City, OK 127,740 -4.02% 0.98% 32 Greenville, SC 140,430 -4.10% 1.26% 33 El Paso, TX 131,350 -4.27% 1.03% 34 Chicago, IL 200,650 -4.30% 2.24% 35 Raleigh, NC 215,510 -4.38% 1.91% 36 McAllen, TX 62,280 -4.54% 2.29% 37 Boston, MA 315,020 -4.56% 3.42% 38 Cambridge, MA 341,430 -4.73% 4.17% 39 Oakland, CA 360,660 -4.97% 11.96% 40 Minneapolis, MN 178,870 -4.99% 2.31% 41 Atlanta, GA 117,910 -5.12% 1.71% 42 Lake County, IL 223,770 -5.39% 1.10% 43 Richmond, VA 203,100 -5.50% 1.29% 44 Tacoma, WA 210,430 -5.57% 10.82% 45 Knoxville, TN 141,240 -5.76% 0.90% 46 Toledo, OH 74,940 -6.00% 2.40% 47 Washington, DC 288,280 -6.26% 4.61% 48 Nashville, TN 166,150 -6.36% 0.64% 49 Warren, MI 142,450 -6.40% 2.59% 50 Columbus, OH 129,030 -6.54% 2.02% 51 Cleveland, OH 86,910 -6.98% 1.34% 52 Allentown, PA 219,080 -7.17% -0.78% 53 Worcester, MA 199,410 -7.39% 1.70% 54 Dayton, OH 91,420 -7.43% 1.17% 55 Bridgeport, CT 377,710 -7.62% 2.30% 56 San Francisco, CA 510,210 -7.97% 14.30% 57 Cincinnati, OH 113,320 -8.30% 1.19% 58 Akron, OH 68,030 -8.42% 1.17% 59 Virginia Beach, VA 202,660 -8.58% -2.37% 60 Portland, OR 241,650 -9.01% 5.35% 61 Hartford, CT 228,810 -9.02% 4.89% 62 Springfield, MA 181,150 -9.18% 4.48% 63 Peabody, MA 292,300 -9.23% 4.80% 64 Philadelphia, PA 209,070 -9.23% 5.20% 65 Detroit, MI 83,360 -9.40% 2.82% 66 New Haven, CT 226,560 -10.50% 3.97% 67 Youngstown, OH 60,330 -10.71% 1.61% 68 Bethesda, MD 332,910 -11.02% 1.05% 69 Albuquerque, NM 177,680 -11.03% 2.89% 70 Poughkeepsie, NY 220,170 -11.24% 0.72% 71 Newark, NJ 367,380 -11.29% 4.53% 72 San Diego, CA 325,600 -11.65% 9.62% 73 Providence, RI 208,170 -12.09% 3.51% 74 Honolulu, HI 551,910 -12.81% 3.31% 75 Sacramento, CA 169,100 -12.87% 6.10% 76 Nassau, NY 368,260 -13.14% -3.65% 77 Santa Ana, CA 436,680 -13.15% 6.32% 78 Edison, NJ 323,260 -13.25% 2.77% 79 Wilmington, DE 199,940 -13.28% 2.34% 80 Salt Lake City, UT 215,530 -13.31% 2.31% 81 Baltimore, MD 243,980 -13.87% 2.65% 82 Camden, NJ 197,470 -14.12% 1.36% 83 San Jose, CA 461,660 -15.28% 6.14% 84 New York, NY 416,730 -15.63% -1.33% 85 Tucson, AZ 170,650 -15.93% 2.97% 86 Stockton, CA 166,300 -15.98% 10.08% 87 Bakersfield, CA 159,070 -16.31% 9.82% 88 Oxnard, CA 283,240 -17.52% 8.58% 89 Fresno, CA 184,720 -17.71% 7.19% 90 Riverside, CA 162,240 -18.90% 7.71% 91 Los Angeles, CA 260,250 -19.41% 8.43% 92 Phoenix, AZ 122,770 -20.50% 0.74% 93 Jacksonville, FL 145,250 -22.31% 0.09% 94 Tampa, FL 135,260 -22.77% 1.26% 95 Las Vegas, NV 137,410 -23.65% -0.93% 96 West Palm Beach, FL 223,470 -23.85% 1.39% 97 Bradenton, FL 152,640 -25.98% 0.60% 98 Fort Lauderdale, FL 187,170 -30.16% -1.59% 99 Orlando, FL 142,920 -30.73% -2.40% 100 Miami, FL 183,530 -32.99% -4.20%
Rank by 2010 price change Metro Area 2009 median house price Projected price change 2010 Projected price change 2011 1 Kansas City, MO 135,420 -1.81% 0.16% 2 Wichita, KS 115,260 -2.32% 0.42% 3 St. Louis, MO 115,720 -2.39% 0.28% 4 Omaha, NE 131,290 -2.75% 1.46% 5 Indianapolis, IN 105,100 -3.23% 0.73% 6 Gary, IN 101,180 -3.30% 0.44% 7 Grand Rapids, MI 76,620 -3.88% 0.83% 8 Milwaukee, WI 199,820 -3.92% -0.22% 9 Chicago, IL 200,650 -4.30% 2.24% 10 Minneapolis, MN 178,870 -4.99% 2.31% 11 Lake County, IL 223,770 -5.39% 1.10% 12 Toledo, OH 74,940 -6.00% 2.40% 13 Warren, MI 142,450 -6.40% 2.59% 14 Columbus, OH 129,030 -6.54% 2.02% 15 Cleveland, OH 86,910 -6.98% 1.34% 16 Dayton, OH 91,420 -7.43% 1.17% 17 Cincinnati, OH 113,320 -8.30% 1.19% 18 Akron, OH 68,030 -8.42% 1.17% 19 Detroit, MI 83,360 -9.40% 2.82% 20 Youngstown, OH 60,330 -10.71% 1.61%
Rank by 2010 price change Metro Area 2009 median house price Projected price change 2010 Projected price change 2011 1 Pittsburgh, PA 114,750 0.41% 2.23% 2 Rochester, NY 114,630 -0.39% 1.93% 3 Buffalo, NY 108,170 -1.54% 0.86% 4 Albany, NY 188,600 -2.82% 0.78% 5 Syracuse, NY 122,420 -2.87% 2.32% 6 Boston, MA 315,020 -4.56% 3.42% 7 Cambridge, MA 341,430 -4.73% 4.17% 8 Allentown, PA 219,080 -7.17% -0.78% 9 Worcester, MA 199,410 -7.39% 1.70% 10 Bridgeport, CT 377,710 -7.62% 2.30% 11 Hartford, CT 228,810 -9.02% 4.89% 12 Springfield, MA 181,150 -9.18% 4.48% 13 Peabody, MA 292,300 -9.23% 4.80% 14 Philadelphia, PA 209,070 -9.23% 5.20% 15 New Haven, CT 226,560 -10.50% 3.97% 16 Poughkeepsie, NY 220,170 -11.24% 0.72% 17 Newark, NJ 367,380 -11.29% 4.53% 18 Providence, RI 208,170 -12.09% 3.51% 19 Nassau, NY 368,260 -13.14% -3.65% 20 Edison, NJ 323,260 -13.25% 2.77% 21 Camden, NJ 197,470 -14.12% 1.36% 22 New York, NY 416,730 -15.63% -1.33%
Rank by 2010 price change Metro Area 2009 median house price Projected price change 2010 Projected price change 2011 1 Birmingham, AL 139,330 -0.78% 1.29% 2 Memphis, TN 107,690 -1.53% 2.41% 3 Houston, TX 146,350 -1.75% 0.38% 4 Louisville, KY 124,660 -2.24% 1.05% 5 Little Rock, AR 130,380 -2.27% 2.01% 6 Charlotte, NC 185,880 -2.30% 1.42% 7 Dallas, TX 149,320 -2.57% 0.39% 8 Fort Worth, TX 118,920 -2.59% 0.44% 9 Columbia, SC 135,980 -2.66% 1.96% 10 Greensboro, NC 135,920 -2.80% 0.95% 11 Baton Rouge, LA 160,370 -2.85% 0.39% 12 Tulsa, OK 131,600 -2.86% 1.50% 13 New Orleans, LA 158,900 -3.10% -0.69% 14 Austin, TX 187,590 -3.33% 0.96% 15 San Antonio, TX 148,580 -3.71% 0.71% 16 Oklahoma City, OK 127,740 -4.02% 0.98% 17 Greenville, SC 140,430 -4.10% 1.26% 18 El Paso, TX 131,350 -4.27% 1.03% 19 Raleigh, NC 215,510 -4.38% 1.91% 20 McAllen, TX 62,280 -4.54% 2.29% 21 Atlanta, GA 117,910 -5.12% 1.71% 22 Richmond, VA 203,100 -5.50% 1.29% 23 Knoxville, TN 141,240 -5.76% 0.90% 24 Washington, DC 288,280 -6.26% 4.61% 25 Nashville, TN 166,150 -6.36% 0.64% 26 Virginia Beach, VA 202,660 -8.58% -2.37% 27 Bethesda, MD 332,910 -11.02% 1.05% 28 Wilmington, DE 199,940 -13.28% 2.34% 29 Baltimore, MD 243,980 -13.87% 2.65% 30 Jacksonville, FL 145,250 -22.31% 0.09% 31 Tampa, FL 135,260 -22.77% 1.26% 32 West Palm Beach, FL 223,470 -23.85% 1.39% 33 Bradenton, FL 152,640 -25.98% 0.60% 34 Fort Lauderdale, FL 187,170 -30.16% -1.59% 35 Orlando, FL 142,920 -30.73% -2.40% 36 Miami, FL 183,530 -32.99% -4.20%
Rank by 2010 price change Metro Area 2009 median house price Projected price change 2010 Projected price change 2011 1 Denver, CO 204,570 -2.79% 3.02% 2 Seattle, WA 340,050 -3.42% 6.54% 3 Oakland, CA 360,660 -4.97% 11.96% 4 Tacoma, WA 210,430 -5.57% 10.82% 5 San Francisco, CA 510,210 -7.97% 14.30% 6 Portland, OR 241,650 -9.01% 5.35% 7 Albuquerque, NM 177,680 -11.03% 2.89% 8 San Diego, CA 325,600 -11.65% 9.62% 9 Honolulu, HI 551,910 -12.81% 3.31% 10 Sacramento, CA 169,100 -12.87% 6.10% 11 Santa Ana, CA 436,680 -13.15% 6.32% 12 Salt Lake City, UT 215,530 -13.31% 2.31% 13 San Jose, CA 461,660 -15.28% 6.14% 14 Tucson, AZ 170,650 -15.93% 2.97% 15 Stockton, CA 166,300 -15.98% 10.08% 16 Bakersfield, CA 159,070 -16.31% 9.82% 17 Oxnard, CA 283,240 -17.52% 8.58% 18 Fresno, CA 184,720 -17.71% 7.19% 19 Riverside, CA 162,240 -18.90% 7.71% 20 Los Angeles, CA 260,250 -19.41% 8.43% 21 Phoenix, AZ 122,770 -20.50% 0.74% 22 Las Vegas, NV 137,410 -23.65% -0.93%

FINALLY, as we have been predicting for over 4 years…..

….everyone..the Government…the Banks….Real Estate Brokers…Homeowners…Agents… have finally accepted that Short Sales are the only real ’solution’ to avoid foreclosures.

The Obama Administration’s Treasury Department has instituted new 2010 Guidelines which WILL revolutionize the entire Short Sale business.

If you want to get into action, helping homeowners…and making a ton of money…you need to be listing and selling short sales.

As you know we have been offering short sale training for years and years now. We were the first national coaching company to teach agents how to do short sales…and we are by far the largest. Thousands of agents have received their HREU CDPD (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here.

From Bloomberg News:

Banks are beginning to go along with short sales in increasing numbers, three years into a U.S. housing slump that pushed the economy into a recession and cut resale values by 30 percent from the peak in July 2006. Short sales almost tripled to 40,000 in the first six months of 2009 from the same period a year earlier. Yet for each short sale, there were 25 foreclosures started or completed in the first half of this year, according to data from the Office of Thrift Supervision and the Office of the Comptroller of the Currency.

Watch this video NOW so you are prepared for what is about to happen:

Part 1: 2010, Year Of The Short Sale: Treasury Department Guidelines.

Part 2 of the video Further Down On This Post.

“It’s really finally dawning on banks that they’re better off with a short sale,” said Richard Green, director of the Lusk Center for Real Estate at the University of Southern California in Los Angeles. “I think banks were in denial.”

Obama Pressure

Wells Fargo, Bank of America Corp. and JPMorgan Chase & Co. this year have hired and trained more staff, developed software systems for expediting short sales, and increased marketing of short sales to delinquent borrowers.

Banks are increasing such sales under pressure from the Obama administration and lawmakers who criticized them for favoring foreclosures and delaying short sales, Green said. Lenders and loan servicers also stand to receive up to $2,000 in incentives to close short sales under a Treasury Department plan unveiled Nov. 30.

DOWNLOAD Treasury Department plan NOW.

Loan Modifications

The first choice for lenders has been to try to keep borrowers in their homes, offering loan modifications as an alternative to foreclosure, Frantantoni said. More than half of the modifications of delinquent mortgages re-defaulted within a year, according to a Sept. 30 report by the Office of the Comptroller of the Currency.

“The single biggest problem was the lack of a vehicle or mechanism at most banks to handle short sales,” said Walter Molony, a National Association of Realtors spokesman. “You could say they were shortsighted in dealing with the problem.”

Pressure is building to approve short sales as the number of delinquent mortgages has grown to 3.2 million and an estimated 7 million foreclosures loom in the next two to three years, according to Irvine, California-based RealtyTrac Inc., which compiles and sells U.S. mortgage delinquency data.

Part 2: 2010 Treasury Department Guidelines.

Important Note: Don’t overpay for your Short Sale designation…you don’t have to spend $500-$600!

HREU has been offering short sale training for years and years now. We were the first national coaching company to teach agents how to do short sales…and we are by far the largest. Thousands of agents have received their HREU CDPD (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here.

New Treasury Department guidelines for foreclosure alternatives scheduled to take effect in April 2010 will require lenders to consider borrowers for a short sale on their primary residence 30 days after missing two consecutive payments on a modified loan or after the borrower requests a short sale.

Treasury Plan

The Treasury Department would pay up to $1,500 for a homeowner to relocate, $1,000 to loan servicing companies that accept a sale and a maximum of $1,000 to help settle a second mortgage or subordinate lien. A lender must agree to release the borrower from all liability for repayment for the mortgage, under the Treasury plan.

In July, Wells Fargo began mailing notices to delinquent borrowers advising them that short sales might be an option to avoid foreclosure.

“When we determine that a loan is not affordable for the customer — either because a modification was denied or failed – - we obtain the value of the property, run it through our loan decision tool and then send a letter to the customer advising them of our short sale program, including the short sale price we are willing to take on the property,” Debora Blume, a spokeswoman for Wells Fargo Home Mortgage said in an e-mail.

Agents…did you read that…PREAPPROVED SHORTSALES….learn how to get on the banks lists to have them refer those listings to YOU!

Thousands of agents have received their HREU CDPD (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here.

‘Pick a Pay Loans’

Wells Fargo is focusing on delinquent borrowers in Florida and California homeowners with “Pick-a-Pay” loans originated by Wachovia Corp., Blume said. Wells Fargo acquired Wachovia in December 2008 and owns the “Pick-a-Pay” loans outright, said J.K. Huey, the bank’s senior vice president overseeing short sales and bank-owned properties. That allows the company to approve a short sale without consulting investors or parties that can hold up transactions.

“Pick-a-Pay” mortgages have among the highest rates of negative equity, because borrowers could select their monthly payments, often paying less than the interest, with the difference added to the principal. That formula means that total loan debt was increasing at a time property values were falling.

Wells Fargo held $87.8 billion of such loans as of Sept. 30, down $7.5 billion from the end of last year. Wells Fargo Chief Financial Officer Howard Atkins said on an Oct. 21 earnings call that the bank is reducing the number of loans with “negative amortization potential.” As of the end of the third quarter, 26 percent of the loans in that portfolio now have minimum monthly payments that fully cover the interest due so that the total principal does not grow, up from 16 percent at the end of last year.

As of Sept. 30, Wells Fargo had modified 43,500, or 22 percent, of the distressed loans to reduce borrowers’ payments, Atkins said.

Reaching Out

JPMorgan doubled the number of staff trained to handle short sales after adding 5,000 people since Jan. 1 to deal with distressed mortgages, said Thomas Kelly, a spokesman for the New York-based bank’s home lending division.

Chase services 10.3 million mortgages worth $1.4 trillion, according to Kelly. Of its portfolio, Chase reported 422,000 loans more than 60 days delinquent, about one third of which were in loan modification programs, according to a Nov. 10 Treasury Department report on the Obama administration’s Making Home Affordable Program.

“We’re reaching out to people who are struggling with the Obama loan modifications or our own,” Kelly said. “Approaching customers is a very recent phenomenon.”

Bank of America, the nation’s largest loan servicer, had one of the lowest loan modification rates, with 14 percent of problem loans in trial workout plans as of Oct. 31, according to the Obama Administration.

The Charlotte, North Carolina-based bank started a “cooperative short sales” program in October and may close its first short sale through the program this month, said Dave Sunlin, senior vice president for foreclosure and real estate management.

Pay-Option Mortgages

Many are borrowers with pay-option adjustable-rate mortgages issued by Countrywide Financial Corp., Sunlin said. BofA bought Countrywide, once the nation’s largest mortgage originator, for $4 billion in stock in 2008.

Short sales benefit a neighborhood because they clear out stagnant properties that may have an adverse effect on values, said Sean Shallis, a senior real estate strategist with Weichert Realtors in Hoboken, New Jersey. Shallis has one home with bank approval for a short sale and three others waiting approval on the same street in Jersey City with views of the Manhattan skyline.

“In every case we had multiple offers from people who had plenty of money to put down,” Shallis said. “Americans are out there still buying homes and trying to move it along.”

Cutting Losses

Short sales also help the bank, because foreclosed properties lose more value when they are vacant or a homeowner vandalizes a house on the way out, Sunlin said.

“We typically expect a 10 to 15 percent decrease of loss severity with a short sale,” Sunlin said.

Agents….thats one of the many reasons BANKS want you to do short sales…the lose less. At this point there is no doubt in your mind that 2010 IS the year of the Short Sale. The only question now…how will you benefit? SImple, learn how to be a HREU CDPD…

We were the first national coaching company to teach agents how to do short sales…and we are by far the largest. Thousands of agents have received their HREU CDPD (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here.

Losses on prime loans going through the foreclosure process averaged 49 percent versus 34 percent for a short sale as of Oct. 1, according to a Nov. 10 report by Laurie S. Goodman, senior managing director of Amherst Securities Group LP. For subprime loans, losses averaged 73 percent for a foreclosure compared with 59 percent for a short sale, Amherst reported.

“The loss severity of short sales is lower but it’s not low,” Goodman said.

Join us for tomorrow’s FREE Harris Real Estate University Superstar Interview

Featuring, Michael Krisa.

Here is the info you need for tomorrow’s FREE Superstar Interview.

EVENT: Super Star Interview
DATE & TIME: Friday, December 4th at 9:00am Pacific
FORMAT: Simulcast! (Attend via Phone or Webcast — it’s your choice)
TO ATTEND THIS EVENT, CLICK THIS LINK NOW…
http://instantTeleseminar.com/?eventid=9768999

Exactly who is Michael?….this is from his website…

When it comes to getting in front of the top names in real estate and getting them to open up and share their insights … I really shine.

BUT … when it comes to having to sit here and write something about myself … well you can almost hear the crickets in the background )

Let me start by saying that I love this business of real estate!

I got my license in 1989 and have seen it all … Buyers’ Markets, Seller’s Markets, a recession or two, managed a top producing office, columnist, freelance marketing consultant, VP of Business Development … did I mention I play the banjo?

The thing that always fascinated me was the elusive question: Why are some agents so successful while others are barely getting by?

This question became an obsession for me and is what motivated me to start my interview series. Like Tony Robins I believe that success leaves clues. So I started to interview the top agents in the country and got them to share their tactics and strategies.

What started out as a simple self help exercise has taken on a life of its own!

My audio interviews have been syndicated – they have been featured in almost every major online real estate publication.

But now for something completely different … I am also doing Video Interviews and loving it.

Daniel Craig (the new James Bond) has nothing to worry about here but I’ll bet you I’m as, if not more passionate about providing great content .. especially if it will have a positive impact on the viewer.

Brian Buffini calls me “Scary Smart” … Walter Sanford says “That Michael’s content changes lives” … my goal is to brighten your day and hopefully have you discover something new that will make your life better.

All Good Wishes,
michael krisa
michael@ThatInterviewGuy.com

Harris Real Estate University students (and future students)…here is the information about that we have been promising you…

As you know we have been offering short sale training for years and years now. We were the first national coaching company to teach agents how to do short sales…and we are by far the largest. Thousands of agents have received their HREU CDPD (Certified Distressed Property Designation).

Why am I telling you all of this?

Simple, because rarely do we have the opportunity to share with you information that is this exciting…this ground breaking…and (frankly) this rule changing.

In October we reported that there were massive changes coming that would make 2010 the year of the short sale.

Drum roll please…here is the info:

* No reduced commissions! Lenders can’t ask or demand brokers lower their fees.

* Lenders to PRE-APPROVE short sales.

* Lenders must FULLY RELEASE borrowers from any future obligation (no more deficiency judgment fear!)

* No more money out of pocket demands from second lien holders….or any payback of the debt what-so-ever.

* Borrowers who do a short sale will be PAID up to $1500 to do a short sale! (read that one again)

* Seconds to receive no more than $3,000 TOTAL from the sale.

Bottom line, 2010 is the year of the short sale. if there was any doubt in your mind that being a short sale specialist…having your CDPD (Certified Distressed Property Designation) was optional……these ground breaking changes to the entire short sale industry will 100% convince you. There should be no question in your mind that short sales are simply one of the best ways to truly be of service to others and earn an amazing income for doing so. We have made it easy for you. Watch the FREE How-To list Short Sales video and then download the FREE Short Sale Secrets book NOW.

From Inman New Features:

The Obama administration has released long-awaited guidelines for a program that will provide incentives for loan servicers and homeowners to engage in short sales when borrowers who are eligible for the Home Affordable Modification Program (HAMP) don’t qualify for a loan mod.

The guidelines prohibit loan servicers from demanding that real estate brokerages reduce the commission stated in the listing agreement as a condition of approving a short sale — a practice that’s been a sore point with many real estate agents.

Troubled borrowers interested in exploring a short sale will also be allowed to receive preapproved short-sale terms prior to the property listing, and servicers must agree to fully release them from future liability if the sale goes through.

The incentive program, which includes payments to second-lien holders who often stand in the way of short sales, was announced in May, but issuance of the guidelines was stalled over legal concerns.

Troubled borrowers who agree to a short sale or deed-in-lieu of foreclosure will receive up to $1,500 to assist with their relocation expenses. Loan servicers and investors who sign off on payments to subordinate lien holders will earn up to $1,000 for successfully completing a short sale or deed-in-lieu.

Subordinate lien holders are limited to recovering no more than $3,000 from sale proceeds, although those who object to the cap can engage in short sales outside the program.

Jeff Lischer, the National Association of Realtors’ managing director of regulatory policy, told the groups’ members last month at their annual conference in San Diego that the incentives should make a difference but won’t be a cure-all for foreclosures.

Watch the FREE How-To list Short Sales video and then download the FREE Short Sale Secrets book NOW.

Separately on Monday, Treasury and the Department of Housing and Urban Development (HUD) kicked off a program intended to help convert as many of the 375,000 borrowers who have received trial loan modifications into permanent ones (see story).

In order to “hold (loan) servicers accountable for their commitment to the program,” they will be required to submit schedules for making a decision on each HAMP-eligible loan. Servicers failing to meet performance obligations under a servicer participation agreement may be subject to monetary penalties and sanctions, the Treasury Department said in announcing that initiative.

The initiative also offers new Web tools for borrowers, including links to all of the required documents and an income verification checklist to help borrowers request a modification in four easy steps.

Some economists and housing analysts have warned that lenders’ foreclosure prevention efforts aren’t keeping pace with deteriorating loan performance.

An industry coalition of mortgage servicers and investors, HOPE NOW, says its members have provided 2.1 million loan workouts in the first eight months of 2009. While nearly half of homeowners entering the foreclosure process in in 2007 ended up losing their homes, only about one in three do today, the group said.

But the number of homes in foreclosure or headed there continues to grow. A record 14.1 percent of homes with mortgages were at least one payment behind or in foreclosure at the end of September, according to the latest numbers from the Mortgage Bankers Association.

Nearly one in 10 loans outstanding on one- to four-unit residential properties — a seasonally adjusted 9.64 percent — were delinquent, up from 9.24 percent at the end of June and 6.99 percent a year ago.

Another 4.47 percent of outstanding loans were in the foreclosure process, up from 4.3 percent at the end of June and 2.97 percent a year ago.

MBA Chief Economist Jay Brinkmann said delinquencies and foreclosures continue to rise despite the recession having ended in mid-summer, “because mortgages are paid with paychecks, not percentage-point increases in (gross domestic product),” and unemployment remains high.

Over the last year, the ranks of the unemployed have increased by about 5.5 million people, Brinkmann said, increasing the number of seriously delinquent loans by almost 2 million.

Prime, fixed-rate loans accounted for the largest share of foreclosures starts and were the biggest driver of the increase in foreclosures, Brinkmann said. One in three foreclosures started in the third quarter were on prime fixed-rate loans, and those loans accounted for 44 percent of the quarterly increase in foreclosures, he said.

The foreclosure numbers for prime fixed-rate loans will get worse, he said, because they also represent most of the recent increase in loans 90 days or more past due, but not yet in foreclosure.

Watch the FREE How-To list Short Sales video and then download the FREE Short Sale Secrets book NOW.

More than 4 million loans were in foreclosure at the end of September or “seriously delinquent” — more than 90 days past due, the MBA said. That’s slightly more than the total number of homes currently on the market, although there’s some overlap between the numbers.

Brinkmann said he expects delinquency and foreclosure rates will continue to worsen before they improve. It’s unlikely the economy will begin adding jobs until sometime next year, he said, and then only at a very slow pace.

When the economy does begin to add more jobs, those jobs probably won’t be in regions of the country with the biggest excess housing inventory and the highest delinquency rates, Brinkmann said.