In an effort to stay on top of the latest in the exploding foreclosures market and the ever-adapting mortgage loan servicing industry, I had the benefit of attending the Feb. 17-20Â MBA’s National Mortgage Servicing Conference & Expo in Tampa, Florida. I’m excited to share the crucial insider information I was able to learn and immediately apply to my business.
While there, I met with several seasoned industry professionals and executives representing key direct lenders, mortgage loan servicing companies and asset management firms, including Nations REO, Inc., Franklin Credit Management Corporation, SingleSource Property Solutions, Fannie Mae, Freddy Mac, American Home Mortgage and many others.
It was my first time visiting Tampa. Being there also gave me a wonderful chance to catch up with my brother-in-law, Roy, and his girlfriend.
The focus of the conference was how the loan serving industry is coping with the spike in foreclosures and the current economic downturn. In the words of conference organizers, “Unfortunately, the standard tools of yesterday simply aren’t enough to get the job done.”
The most important information that I took away from the conference are the TOOLS OF TOMORROW: the three innovative strategies banks and loan servicing entities are using to deal with the surging tide of foreclosures (which real estate experts predict won’t slow down until 2012!).
Let’s take a closer look at each:
1) Loss mitigation – The loan servicing industry is currently using short sales, loan modifications and other creative tools to mitigate losses from the current rise in foreclosures. This new phenomenon is forcing the industry to create new, innovative approaches to rebound from their losses.
2) Renting foreclosed properties - Banks and lenders are beginning to rent foreclosed properties instead of selling them, something we haven’t yet seen in real estate. They are holding onto properties and essentially acting as landlords.
3) Selling homes while they are still occupied - I heard this final strategy directly from Fannie Mae. As part of the corporation’s goal to help foster the dream of home ownership in the U.S., as well as to reduce the number of vacant foreclosure and post-foreclosure properties contributing to a rise in blighted neighborhoods, they are beginning to sell homes while they remain occupied. Executives at Fannie Mae feel doing so will help curb the rise in vacant, problem property plagued areas and avoid reducing home prices to the point that they lower neighboring property values.
Thanks for checking in. I truly appreciate your readership and referrals.
Best,
Your trusted connection to the Southern California foreclosures market,
Sincerely,
Mark Shandrow
REO Broker-Associate
Keller Williams Realty
markshandrow.com
