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Let's Help Homeowners Save Their Homes From Foreclosure

By Frances Flynn Thorsen | Real Estate Pro in Tucson, AZ

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10 Realtor States with Big Hearts for Distressed Homeowners

Posted Under: Foreclosure | August 23, 2010 6:19 AM | 661 views | 6 comments
The housing crisis presents a host of challenges to homeowners, buyers, sellers, and real estate agents. Foreclosures are mounting in unprecedented numbers. Nevada, Arizona, and Florida posted top state foreclosure rates in July, according to RealtyTrac U.S. Foreclosure Market Report. Nevada and Florida Realtors respond to the crisis with a series of ambitious, consumer-facing outreach programs; Arizona’s Realtor community faces the crisis behind closed doors, with nary a HUD counselor or distressed homeowner in sight.
Last year the National Assn. of Realtors launched a massive Foreclosure and Response Grant Program, allotting more than $2.5 million to state associations, with amounts tied to membership total. Minimum grant allocation for small member states is $40,000.
Realtor associations planned and executed extensive training for their members relative to buyer care and sellers facing short sales, both commission generating consumer groups.

States reaching out to distressed homeowners in their outreach plans outnumber their we-just-want-to-focus-on-income-generating-consumers counterparts by a 3:1 margin. Most of these Realtor groups work in close partnership with nonprofits and government agencies.

(Foreclosure statistical data is taken from RealtyTrac. Realtor grant data is derived from information provided by the National Assn. of Realtors.)

Top 10 States with a Heart for Distressed Homeowners

California is rocked with unprecedented foreclosures. This state alone accounted for 21 percent of the national total in July, with 66,910 properties receiving a foreclosure filing during the month, according to RealtyTrac. The 169,945-member California Assn. of Realtors leadership stands firm, issuing an uncompromising commitment to helping distressed homeowners. The state spent all its $150,000-plus NAR foreclosure grant resources in a multi-faceted program including regional foreclosure prevention seminar, zip form resource library, media campaign promoting California mortgage protection program, media kit for local associations, and funding of continuing education courses for foreclosure prevention. Orange County Assn. of Realtors is an active member of the Orange County Homeownership Preservation Collaborative, consisting of numerous civic, government, advocacy and industry organizations. OCAR scheduled a foreclosure prevention workshop in cooperation with the Collaborative. Pacific SW Assn. of Realtors put its money to a partnership program with the San Diego Housing Opportunity Collaborative, “Sustaining Homeownership – Loss Mitigation and Making Home Affordable Workshop.”

Florida saw 51,557 properties receive a foreclosure filing during July. The Sunshine State is fighting for its life. Its Realtors and homeowners are gasping for air and they face mounting foreclosures as RealtyTrac’s number 3 troubled state. The Florida Assn. of Realtors and local Realtor groups are sending a message loud and clear to 119,721 Realtors and residents in the state: “We are going to do everything in our power to help you!” And they are putting their money where their mouth is - $97,000 is dedicated to a massive outreach program including a statewide “Making Homes Affordable Week” in every district in the state to education Floridians on federal, state, and local foreclosure, loan modification, and refinance assistance. State leaders developed a tool kit to serve as a template for local associations to help host local education events. Local associations commit financial support and energy aligned with state Realtor leadership initiatives.

Nevada. The state leading the country in foreclosures saw one in every 82 housing units receive a foreclosure filing in July. The Nevada Assn. of Realtors devotes its entire grant proceeds to a comprehensive program “designed to educate Realtors, work with homeowners to avoid foreclosure, and partner with communities to minimize the impact of foreclosures.” Community outreach efforts include PSAs on radio and television, and new media (i.e. YouTube, Facebook, and Twitter.) NVAR is reaching out to faith based organizations and civic clubs to education the general public and locate distressed homeowners. The association announced plans to work with a small number of foreclosure prevention counselors to develop a pilot program to help expand their outreach, share best practices learned from other agencies, and perform more efficient assistance through mediation workshops and counseling. NVAR and local associations pledged to contribute financial resources to this project in addition to the $48,579 grant from the National Assn. of Realtors.

Connecticut. This New England state is number 20 on the RealtyTrac list, but Realtor associations at the state and local levels and their 12,780 members have embraced distressed homeowners with the vigor of a community fighting for life. Connecticut Assn. of Realtors announced a $30,000 investment in a comprehensive, stand-alone consumer website, Own It, with a focus on homeownership and how to avoid foreclosure. The association’s grant application listed 17,000 as the number of Realtors assisted with this project. CAR obviously believes its members have an interest in a healthy economy and financially stable and secure homeowners. Great Hartford Realtors affiliated with The Partnership for Strong Communities to host three “”Housing Help” public awareness forums in 2010. Greater Waterbury Realtors and Neighborhood Housing Services of Waterbury coordinated an outreach program to help homeowners avoid foreclosure, and NHS provides face-to-face counseling for distressed homeowners.

Maryland. A quick look at the Realtor landscape in RealtyTrac’s number 10 most distressed state finds local associations competing for creative, industrious, and magnanimous consumer outreach. The Coastal Assn. of Realtors helped fund a program administered by the Salisbury Neighborhood Housing Program and a HUD-certified counseling agency. A revolving loan fund assists qualified homeowners with household expenses so they do not fall behind or default on their mortgages. Foreclosure prevention, consumer counseling (private and group workshops), and Realtor education are weaved into a holistic financial program statewide.

Colorado. The Rocky Mountain State is number 13 on the RealtyTrac list and Realtors associations are doing their best to provide balanced training to some 21,000 members. The state association applied a lion’s share of its NAR grant monies to an education program developed in partnership with local governments, mortgage brokers, bankers, and title companies, “Helping People Stay in Their Homes Today and in the Future.” Colorado Assn. of Realtors is working with counselors from the Colorado Foreclosure Hotline and launched a statewide media campaign encouraging homeowners to examine their options. Grand Junction Area Realtor Assn. planned large scale borrower outreach events as co-sponsors with the Grand Junction Housing Authority and other partners. Additional grant monies were applied to Realtor education relative to buyer education and short sales, understanding debt, loan modification/principal reduction, and tax credits.

Ohio has a number 11 RealtyTrac rating for distressed states and state with 13,511 foreclosure filings in July. State and local Realtor leadership rise to the occasion in grand style. Columbus Realtors planned two workshops at a venue seating 400 - 500 attendees, working in concert with Columbus Housing Partnership and Huntington National Bank. Other Realtor groups in the state craft their approach similarly, with strong consumer facing initiatives.

Indiana, number 17 on RealtyTrac’s list, sees a partnership between the Indiana Assn. of Realtors and the Indiana Foreclosure Prevention network to do public service announcements throughout the state. “We want to reach out to Hoosiers with questions on options for avoiding foreclosure,” said Sherry Tilley, senior vice president, IAR. Certified foreclosure prevention counselors will be available at each location.

Illinois foreclosure activity increased 33 percent from the previous month — the biggest monthly increase among states with top 10 foreclosure rates (Illinois ranks 8th). A total of 19,602 Illinois properties received a foreclosure filing in July, the third highest state total and accounting for 6 percent of the national total. Illinois Assn. of Realtors is producing a multi-faced program including courses on short sales and financial programming; they are developing public services announcements and podcasts. Website enhancements include a foreclosure content page.

Virginia ranks 22 on the RealtyTrac list and Realtors there seem inclined to keep the foreclosure numbers down. The Virginia Assn. of Realtors and local associations designed four distinct programs for delivery throughout the Commonwealth. The “Buying TIME” program provides information to the general public, and options available to homeowners who fall behind on mortgages. Richmond Realtors announced a partnership with the City of Richmond, Housing Opportunities Made Equal and the Partnership for Housing Affordability.

Realtor Associations Looking for a Heart

Thirteen states restricted their NAR grant monies to Realtor buyer education and short sales certifications. They report no affiliations or partnerships with consumer housing counselors, nonprofits, or government agencies. NAR reports three states – Arkansas, Maine, and Wyoming, and the District of Columbia, show no grant approvals, even though each of those jurisdictions has a minimum $40,000 allotted by the trade group to its foreclosure and response program.

Arizona foreclosure activity decreased on a year-over-year basis for the sixth straight month, but the state still posted the nation’s second highest state foreclosure rate. One in every 167 Arizona housing units received a foreclosure filing during the month — more than twice the national average. This state is devastated by the housing crisis and rates second on the RealtyTrac list of most severely affected states. There is a huge chasm between sales-centric Realtor outreach and the home retention efforts of nonprofits and government agencies. There is no Realtor presence on the Arizona Foreclosure Prevention Task Force, Don't Borrow Trouble Coalition, or consumer friendly resource lists. Realtor associations in the northern part of the state spent more than $50,000 in NAR grant monies to educate 12,660 buyer agents and short sale agents. NAR grant proceeds did not reach the southern area of the state, including Tucson and Yuma.

Foreclosures are no small potatoes in Idaho, RealtyTrac’s number 5 state for distressed homeowners. Idaho Realtors respond to the housing crisis with a series of continuing education classes for 668 of its 2,891 members. Focus of the education is what buyers’ representatives need to know about short sales and foreclosures. There is no mention of distressed homeowners in their outreach plan.

Overall, 13 states restricted their foreclosure outreach to education courses, primarily “What Buyers’ Representatives Need to Know,” “Foreclosure: Prevention and Opportunities for Buyer-Clients,” and the NAR “Short Sales and Foreclosure Certification” program.
Petition to Add Pro Bono Proviso to Realtor Code of Ethics (in memory of Joe Ferrara)

Posted Under: Home Buying | August 4, 2010 12:46 PM | 286 views | 4 comments

Joe Ferrara was an attorney, a real estate broker, an educator, a blogger, and a thought leader. He was the consummate consumer advocate and he was unafraid of poking sticks in mighty Goliath’s eyes. The real estate industry lost a maverick this week.

Joe used to say he felt like a “lone voice howling at the moon.” He advocated a pro-bono provision to the Realtor Code of Ethics. He was excited about presenting the idea at the first REBarcamp in San Francisco in 2007. He wrote the words, “Pro Bono Real Estate” on a sticky note and pasted it to the calendar in the old firehouse that was home to a revolutionary concept in real estate education.

I had my own sticky on the wall, “Help Distressed Homeowners Who Want to KEEP Their Homes.” Joe and I moved our sticky notes to the same time and space block to create more buzz as co-presenters.

Our topics did not create much buzz. Real estate agents were not drawn in large numbers to our presentation. We gathered in a small corner of a second-floor balcony with half a dozen people and we talked about public service.

Joe continued his crusade on his beloved Sellsius blog. Read his thoughts, “NAR Must Add Pro
Bono Provision to Realtor Code of Ethics.” (Excerpt below)

Such interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which REALTORS® should dedicate themselves, and for which they should be diligent in preparing themselves. REALTORS®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor. (Preamble, National Association of Realtors Code of Ethics, 2008) (emphasis added)

Here is a simple starting point:

Voluntary Pro Bono Public Service

Every Realtor who is able has a professional responsibility to provide real estate related services, without compensation, to those unable to pay or of limited means. Every Realtor should aspire to render pro bono service on at least one (1) real estate transaction per year.

Let’s honor Joe Ferrara and make this happen. He said:

Let’s do more than just think about it. Let’s do it.

If you support this initiative, add your voice and share this with other real estate professionals, especially those who are in position to effectuate or influence change.

Let’s honor Joe and let’s get this done in his name.

Let’s do more than just think about it. Let’s do it!

SIGN THIS PETITION, NAR MUST ADD PRO BONO PROVISION TO REALTOR CODE OF ETHICS. Let's collect 100,000 signatures before NAR meets in November!
Petition to Add Pro Bono Provision to Realtor Code of Ethics (in memory of Joe Ferrara)

Posted Under: Home Buying | August 4, 2010 12:44 PM | 71 views | No comments

Joe Ferrara was an attorney, a real estate broker, an educator, a blogger, and a thought leader. He was the consummate consumer advocate and he was unafraid of poking sticks in mighty Goliath’s eyes. The real estate industry lost a maverick this week.

Joe used to say he felt like a “lone voice howling at the moon.” He advocated a pro-bono provision to the Realtor Code of Ethics. He was excited about presenting the idea at the first REBarcamp in San Francisco in 2007. He wrote the words, “Pro Bono Real Estate” on a sticky note and pasted it to the calendar in the old firehouse that was home to a revolutionary concept in real estate education.

I had my own sticky on the wall, “Help Distressed Homeowners Who Want to KEEP Their Homes.” Joe and I moved our sticky notes to the same time and space block to create more buzz as co-presenters.

Our topics did not create much buzz. Real estate agents were not drawn in large numbers to our presentation. We gathered in a small corner of a second-floor balcony with half a dozen people and we talked about public service.

Joe continued his crusade on his beloved Sellsius blog. Read his thoughts, “NAR Must Add Pro
Bono Provision to Realtor Code of Ethics.” (Excerpt below)

Such interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which REALTORS® should dedicate themselves, and for which they should be diligent in preparing themselves. REALTORS®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor. (Preamble, National Association of Realtors Code of Ethics, 2008) (emphasis added)

Here is a simple starting point:

Voluntary Pro Bono Public Service

Every Realtor who is able has a professional responsibility to provide real estate related services, without compensation, to those unable to pay or of limited means. Every Realtor should aspire to render pro bono service on at least one (1) real estate transaction per year.

Let’s honor Joe Ferrara and make this happen. He said:

Let’s do more than just think about it. Let’s do it.

If you support this initiative, add your voice and share this with other real estate professionals, especially those who are in position to effectuate or influence change.

Let’s honor Joe and let’s get this done in his name.

Let’s do more than just think about it. Let’s do it!

SIGN THIS PETITION, NAR MUST ADD PRO BONO PROVISION TO REALTOR CODE OF ETHICS. Let's collect 100,000 signatures before NAR meets in November!
What is a Realtor's role in loan modification?

Posted Under: Foreclosure | July 3, 2010 6:47 AM | 146 views | No comments

I wrote an article for Arizona Assn. of Realtors July magazine:
Loan Modification: Homeowner Help or Hype?
There Is Growing Chasm Between REALTORS® and Consumer-Friendly Nonprofits
Excerpt:
“If you help homeowners navigate a loan modification, be aware that your E&O policy might not cover your actions if you’re sued,” says Michelle Lind, general counsel for Arizona Assn. of Realtors. “Providing such help is considered the business of housing counseling agencies, not brokerages…”
Lind’s other concerns include: Is this activity outside the scope of a real estate agent’s expertise? Does the agent’s broker permit it? Is a license required (depending on the scope of service to be provided)?
Who am I ? Passions and Promises

Posted Under: Agent2Agent | May 23, 2010 6:35 PM | 209 views | No comments
Home Rescue Fair in Phoenix May 22 - REAL Help for Homeowners Facing Foreclosure

Posted Under: Foreclosure in Phoenix | May 20, 2010 6:47 PM | 232 views | No comments
The Alliance for Stabilizing our Communities has organized this event to help provide you with the tools and resources you need to make informed decisions about the options available to you. Bring your loan documents and other financial information to get advice from industry experts. Together, we’ll work to give you valuable information and hope during this difficult time.
Place: Grace Inn- Phoenix, 10831 South 51st St., Phoenix, AZ
Time: 10 am – 2 pm

Take advantage of these free services:

One-on-one sessions with loan specialists, HUD-approved housing counselors, and attorney

Foreclosure-prevention workshops

Translators
For more information, call 602.253.0838.
Please bring copies of the following documents so we can better assist you:
Current pay stubs (within the last 30 days)

2008 and 2009 income-tax returns

Three months of bank statements

Household expense budget

Copy of closing documents and most recent correspondence from your mortgage company

Most recent property insurance and mortgage statements

A letter explaining reasons for current financial situation
'BUY, CLOSE, MOVE IN! How to Navigate the New World of Real Estate'

Posted Under: Home Buying | April 14, 2010 11:09 AM | 389 views | 3 comments

What is a prospective homebuyer to do in 2010 following the worst financial crisis since the Great Depression? The aftershocks of the housing crisis still find the economy reeling. Real estate professionals and consumers posture for millions more foreclosures, increasingly complicated short sales negotiations, and stricter lending standards.

“There has never been a better time to shop for financing,” declares author Ilyce Glink, if you can pass the muster of credit and run the gauntlet of new lending benchmarks.

“BUY, CLOSE, MOVE IN!” (Harper Paperbacks 2010) holds a prism to the 2010 real estate market and casts a wide-ranging, holistic spectrum of the home buying process, for both primary homes and investment properties. Author Ilyce Glink is a best-selling real estate writer with almost a million books in print. Her new book unravels the mystery of the cabal that brought housing to its knees. Her explanation is simple and elegant, and she ties it to readers’ expectations and specific, ordered action plans.

It’s time to clear the shelves of outdated get-rich-quick real estate books and dusty infomercial CDs. Glink’s book promises to show readers “How to Navigate the New World of Real Estate – Safety and Profitably – and End Up with the Home of Your Dreams.” The book delivers on her promise from one chapter (“Ten Things That Have Changed in Real Estate, Ten Things That Haven’t”) to the next (“What Buyers Need to Know Now”) … and the next (“The New World of Mortgage Finance”) … and the next.

“It isn’t that a few things have changed; the whole industry seems to have been upended by the collapse of the housing bubble. One thing that hasn’t changed is that in order to play the real estate game well – including buying, financing, and closing on your new home – you must know the rules.” (Excerpt)

My favorite chapter is “Identifying Amazing Opportunities: Short Sales, Foreclosures, Fix-And-Flips, and Buy-And-Holds.” Glink talks candidly about the emotional aspects of buying foreclosures and short sales, offers keen insight into the auction process, calculating the cost of improvements, and why there are different strokes for different folks.

Glink lays out the rules of the new financial order, and she shares recent anecdotes attesting to the soundness of her plan. Novice investors see opportunities in short sales and foreclosures. Using safe, legal, and common sense reasoning, one young couple builds a portfolio of several million dollars of real estate equity in 18 months. There is no sleight of hand, no rule bending, no secret formulas. This is not the chicanery of adrenaline-pumping, late-night TV real estate gurus.

Glink does not subscribe to popular blame games. Other members of the working press point accusing fingers at real estate agents and lenders for their high crimes and misdemeanors in the financial crisis. Real estate agents and brokers indict the press as chief evildoers, and lenders are quick to point to buyers’ greed. The author presents historical facts in a measured tone leading to homebuyer action plans.

“BUY, CLOSE, MOVE IN!” fills a void on book store reading shelves in a market where extreme changes in lending culture render most real estate “how-to” books uselessly dated. Glink brilliantly mixes the right measure of longstanding good real estate sense with sound advice about dealing with new demands on the buying public.

Glink’s advice for new age investors mirrors sage real estate advice of the last 20 years. Consumers will appreciate comprehensive discussion of the home buying process – setting a bar for expectation, negotiation strategies with sellers and with banks, choosing a real estate professional with savvy in niche markets, shopping for mortgage financing. At each juncture, Glink offers a range of choices for custom tailoring a real estate team and plan, honoring the notion that real estate is not a one-size-fits-all financial solution.

Real estate agents and brokers and mortgage lenders will appreciate the skillful way Glink frames the decision making process. If they are smart, realty pros will order this book by the box, keep one copy for personal use, and share the rest with their clients and customers. “BUY, CLOSE, MOVE IN!” makes a strong case to consumers finding a good real estate agent partner to share their journey and help them navigate the changing currents in a fluid market.

It’s about time consumers can reach for a real estate book that is complete, easy to read, up to date, and fosters smart choices!