Small Real Estate Investors :: The Construction Management Pro

Property Management for Scattered Site Rental Property

October 4, 2011

A NeighborWorks® Place-based Training brought to you by the Network

October 17 & 18  9:00 AM – 4:00=PM

145 W Hanover St. Trenton, NJ

This two day course will explore how to manage geographically scattered and small-scale rental properties which pose a unique and difficult challenge in affordable housing ownership. A portfolio of small properties requires the owner to possess or obtain special property management skills. Management will not have the advantages of on-site property management staff, or the economies of scale a multiple-unit building provides. This course is designed to help the participant identify ways of mobilizing and adapting a management operation to effectively monitor the operational performance of a scattered-site real estate portfolio. Through case study analysis and discussion of best practices, participants will learn to identify and examine the different property management options available to best meet their organization’s needs. Approaches to keep such housing stock healthy and energy efficient will be addressed. A special module will cover the specifics of managing REO properties

Presented by Brett William, Neighborworks Training Institute

Fee: $150 Members/ Non Members $200.  (a savings of $295/$245 off this NeighborWorks® course) At this time we currently are NOT accepting electronic payments.  Registration includes Continental Breakfast, Breaks, Lunch and Workshop materials. Please address all checks and money orders to The Housing and Community Development Network of New Jersey and send to the following:

Housing and Community Development Network of NJ
attn: Scattered Site Rental Property Training
145 W Hanover Street
Trenton, NJ 08618
 
Event Location: HCDNNJ Conference Room
145 West Hanover Street
Trenton, NJ  08618
 
Parking and Directions
The session starts promptly at 9:00a on Monday, October 17 and Tuesday, October 18. ; We strongly recommend you arrive by 8:30am as parking is limited; Meter parking is available on the streets adjacent to our office, and there are surface parking lots in the vicinity as well.   DO NOT park in the Network’s parking lot, as these are reserved spots and subject to towing if occupied by non-authorized vehicles.  If you need directions, go to
www.hcdnnj.org and select Click Here to view Agenda

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Mortgage Servicer’s turn to Short Sales

September 8, 2011

Mortgage servicer’s contending with attorney general investigations and extended foreclosure delays turned more to short sales in the past year according to industry reports.

In August 2009, short sales accounted for only 8% of all liquidations of distressed properties. That number grew to 25% by the middle of 2011, according to research from Moody’s Investors Service.

Meanwhile, the time it took from a borrower default to eventual REO liquidation grew from an average 14 months in early 2009 to 24 months by the summer of 2011. Part of the added time was a result of servicers having to halt the foreclosure process in October 2010 to correct forged documents and mishandled foreclosures as part of the robo-signing scandal. New regulations from federal agencies and ongoing negotiations between the state AGs have left servicers turning to an early sale of properties before filing foreclosures. The increased time to foreclose has resulted in higher losses on the eventual sale of those properties.

“To reduce their expenses and mitigate the high loss severity on liquidated loans, servicers are increasingly opting to bypass the foreclosure process and liquidate properties more quickly through a short sale,” Moody’s analysts said.

Researchers at Deutsche Bank said servicers are using the transactions to also cut into the shadow inventory of properties stuck somewhere in the foreclosure process. Standard & Poor’s said the market actually cut into the shadow inventory during the second quarter for the first time since 2009.

Deutsche Bank found short sales actually take less time to complete than REO sales because of the documentation problems.

The average REO took 17 months to sell in the middle of 2011, compared to just under 12 months for short sales completed in that time, according to Deutsche Bank.

Loss severities dropped as well. Servicers experienced a 70% loss rate on REOs sold in the middle of 2011, compared to less than 60% for short sales.

These transactions also do less damage to a borrower’s credit score, dropping it between 50 and 200 points compared to an REO sale, which can slash the FICO score for the borrower as much as 400 points.

Borrowers who manage a short sale can buy a new home between one and two years as well, according to researchers. Those whose homes sell through REO must wait between five and seven.

However, short sales continue to be a struggle as investors often squabble over whether or not to approve the transaction.

“Short sales, like other servicer loss mitigation strategies, may stir a fierce ‘class warfare’ between investors in different parts of the deal capital structure,” Deutsche Bank researchers said.

Moody’s analysts said short sales steadied loss severities over the past year, as foreclosure problems continue to plague the recovery.

“We can attribute the stabilization of average loss severities in part to a rising number of liquidations through short sale, which by reducing liquidation timelines, foreclosure expenses, and legal costs, can reduce the losses incurred on defaulted loans,” Moody’s said.

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A Kiss from Irene

August 29, 2011

While Irene wasn’t as devastating as predicted, it still caused several fatalities. My prayers go out to all those who lost someone or had severe property damage.

My last blog post gave you three simple steps to Be Prepared for Irene. Now I have to take some of my own advise.

Aftermath of Irene, Tree falls on house

Tree roots after Irene

 

 

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