The primary goal of our inspection services is to provide
timely / accurate information regarding occupancy, and property
condition. Inspections are completed in compliance with
Investor/Insurer guidelines.
Pumyea Associates provides our Clients with immediate
information. Not only do we perform exterior visual
inspections but we ensure property preservation by
providing a preventative action check list upon completing
interior inspections. This full range service empowers our
Clients to accurately evaluate property conditions and needs,
inside and out.
Pumyea Associates offers:
Initial /
Ongoing Property Inspection An exterior
inspection for occupancy per Client instruction and/or
Investor/Insurer guidelines, with a property description and no
access to the interior. * This inspection can be performed once
or as scheduled by the Client.
Our Professional Team will perform a contact
inspection to verify the names of the property occupants, check
with neighbors, review the utility accounts, and check
phone listings in local directories if contact is not made
with the occupant. Data can be provided in a report our
Clients can utilize for eviction proceedings.
Bankruptcy Property
Inspection An exterior inspection
for occupancy per Client instruction and/or Investor/Insurer
guidelines, with a property description and no access to the
interior, and no contact made with the mortgagor or property
occupant. * This inspection can be performed once or as
scheduled by the Client.
Monthly Interior
Inspections on Vacant and Secure Properties Pumyea
Associates (At the Clients Request) will provides interior
monthly inspections on vacant properties and will provide
information reporting based on a visual "walk-through" inspection
only and will not include any comprehensive testing or certification
of the property condition. The main emphasis and purpose of the
interior inspection is to make the Client aware of any
visible damages that, if not addressed immediately, could lead
to damages or the issuance of a citation by the
governing municipal inspectors.
Contact Attempt Inspections Contact
inspections ordered by mortgage servicers and lenders will be
attempted with the borrower. Up to Three attempt will be
made to contact the mortgagor during a visual exterior inspection
for occupancy verification per Client instruction. A message
will be provided to the mortgagor instructing them
to contact the Client's liaison at a specified phone
number.
Deed in Lieu of Foreclosure
Inspection Upon request, a
member of our Professional Team will meet with the
mortgagor to review the terms and conditions of the "deed in lieu
title transfer". Pumyea Associates will again send
an inspector (On the transfer date) to meet with the mortgagor at
the property to verify the property condition, that utilities
have been maintained, property is broom swept and
the documentation of any property damage. At that
time the inspector will make any arrangements to
secure/winterize the property and finally will acquire any
photo documentation needed to accurately report the
condition of the property. A punch list will then be created
to identify any replacement / repairs needed to place the
property in marketable condition. This check list will be
provided to the Client with attached quotes from locally respected
and approved vendors.
Fannie Mae Form 30 Property
Inspection If so requested by the
Client, Pumyea Associates will visually inspect the
property according to the current inspection guidelines of
Fannie Mae. Photographs will also be provided upon request.
Sale Date
Inspections Our Professional Team will perform a contact
inspection for occupancy performed on the foreclosure sale
date, check with neighbors, review the utility accounts.
Communication with third parties will be limited.
Warren Pumyea "REO Specialist / List
Agent"
Click here to E-mail or call
978-821-7335
As a
full-service REO listing team, we monitor the entire foreclosure
process. From - initiating first contact -
contracting repair and maintenance - listing the property
-to handling the closing.
REO Specialist /
List Agent
The first point of
contact for asset managers
Listing agent for
REO assets
Coordinator - cash for keys and
eviction negotiations
Experienced
investor, list agent, and buyers
rep.
Contact me @
978-821-7335
www.massachusetts-reobroker.com works in conjunction with www.realestate-page.com in an effort to bring maximum exposure to your REO listings.
-- Pumyea Associates is a Keller
Williams Realty Team --
Q: What does REO mean?
A: REO is an acronym for "Real Estate Owned."
Q: Why do people purchase
REO properties? A: The properties are often listed "as is."
That makes them great opportunities for those who want to buy and fix up
the properties and use them as a principle residence or an investment
property.
Q: How is purchasing REO
properties different from regular real estate purchases? A:
REO properties are owned by corporations not individuals which leads
to significant differences in all aspects of the purchase.
Q: What should I know about
buying at a "Trustee's Sale"? A: Do your research before
buying and use extreme caution before investing. Properties purchased at a
Trustee's Sale are sold "as-is" for cash. There are no refunds.
Q: What does BPO mean?
A: BPO is an acronym for "Broker Price Opinion."
Q: Why are BPO's conducted?
A: Camille's team performs a BPO of a residential property
for use in collections and loss mitigation.
Q: What is contained in a BPO
report? A: The report combines information from a drive-by
exterior examination, external data sources, previous sale data, property
assessment data, recent comparable sales and current neighborhood
listings, as well as a photograph of the subject property.
Q: What are the advantages of a
BPO? A: BPOs significantly lower loan costs and decrease
turnaround time. They also provide reliable valuations to minimize credit
risk. Also, an up-to-date property photograph helps assist in
identification of visible deferred maintenance.
Total REO Asking Price: $941,083,901 (As of October 7, 2009) Source: http://www.countrywide.com/purchase/f_reo.asp Click on state below for detailed listings.
"So this rescue plan is a huge and massive bailout of the shareholders and the unsecured creditors of the financial firms (not just banks but also other non bank financial institutions); with $700 billion of taxpayer money the pockets of reckless bankers and investors have been made fatter under the fake argument that bailing out Wall Street was necessary to rescue Main Street from a severe recession. Instead, the restoration of the financial health of distressed financial firms could have been achieved with a cheaper and better use of public money."
emphasis added
And a video clip below of Jim Rogers calling Paulson's Plan 'Welfare for the Rich':
The BIS, also known as the Central Bank of Central Banks, is one of the most respected economic institutions. Prior to the start of the subprime crisis, I had posted an article where the BIS warned and in essence, predicted this current crisis. Now, the BIS is warning again. This time, with the threat of deflation!
BIS:
"The eventual global slowdown could prove to be much greater and longer lasting than would be required to keep inflation under control. This could potentially even lead to deflation, which would evidently be less welcome."
"In the aftermath of a long credit-driven boom, it would not be surprising to see turmoil in financial markets, slowing real growth and temporarily rising inflation."
The Fed also believes that inflationary pressures will eventually come down as growth slows. The only difference being that a rebound in growth seems unlikely as this recession could last well over a year. Professor Shiller is not kidding when he says more stimulus will be needed. See: One Rebate Isn't Enough - New York Times
Inflation will probably still be the main theme this month, as the oil bubble (a.k.a. "oil crisis") continues to dominate. The price of a barrel of oil could easily spike to $200 if the conflict with Iran escalates within the next few weeks. If this be the case, then Professor Roubini deserves some serious credit for making the call. See: Rising Risk of a Military Confrontation between Israel and Iran? - Nouriel Roubini
About BIS The Bank for International Settlements (or BIS) is an international organization of central banks which exists to foster cooperation among central banks and other agencies in pursuit of monetary and financial stability. It carries out its work through subcommittees, the secretariats it hosts, and through its annual General Meeting of all members. The BIS also provides banking services, but only to central banks, or to international organizations like itself. Based in Basel, Switzerland, the BIS was established by the Hague agreement of 1930
A grim first quarter report from the Mortgage Bankers Association's shows the housing crisis is getting worse. Mortgage delinquencies rose in the first quarter to 6.35%.
From CNN:
The Mortgage Bankers Association's first quarter report showed that a record 2.5% of all home loans being serviced by its members are now in foreclosure, which works out to about 1.1 million homes. That's up from the 2% of loans, or about 938,000 homes, that were in foreclosure at the end of 2007.
The report also showed that 448,000 homes, or about 1% of loans being serviced, began the foreclosure process during the first quarter. That's up from about 382,000 homes, or 0.83%, that entered foreclosure in the last three months of 2007.
This marks the sixth straight quarter in which a record percentage of loans went into foreclosure. The trend has led to widespread declines in home prices, as well as huge losses for banks and other financial firms that issued or invested in the loans.
The problems in California and Florida are extraordinary and they are the main drivers of the national trend. The quarterly rate of foreclosure starts on subprime ARM loans in California was 9.24 percent. This rate, combined with Floridaâs rate of 8.25 percent, drove up the national average foreclosure start rate to the point where 43 states were below the national average of 6.32 percent. California saw a total of approximately 109,000 foreclosure starts and Florida 77,000. The next highest states were Texas, Michigan and Ohio with between 24,000 and 20,000 each.
Okay, I'm kidding but Stephanie Valdez is not. Matt and Stephanie Valdez are a couple who can afford to continue paying their mortgage payments but see no point in making them. Is it really worth it to continue making payments on an underwater mortgage and at 11% [usury] interest rate? âThere is a certain cold logic to just walking awayâ, says Steve Kroft.
But Matt and Stephanie Valdez say they knew exactly what they were doing when they bought a small two-bedroom for $355,000. They could afford the initial payments and planned to refinance the mortgage before the interest rate jumped to 11 percent. But they couldn't do it because the value of the house had fallen below what they owed on the mortgage. They say they can afford the higher payments, but see no point in making them.
"The house keeps going down, payments keep going up. Where's the logic in that? And how can we fix it? I mean, that's what this whole thing's about for us is how can we fix this? And if we can't fix it, then what do we do?" Matt Valdez asks.
"Why pay a $3,200 payment on a 1200-square-foot home? It makes no sense," Stephanie Valdez adds.
"That's what you agreed to do when you bought the house," Kroft points out.
"Fine. If the value is going up. But we're not going anywhere. The price or the value is going down. It makes no sense because we will never be able to refinance and get a lower payment. There's no way," Stephanie Valdez replies.
"You're saying, essentially, that you're going to stop making payments on it? You're just gonna let it go into foreclosure?" Kroft asks.
"You know, that's the only advice we've gotten so far is walk away from the home. We don't want to do that to our credit. Why can't our mortgage company work with us?" she says.
The full video does a nice job at explaining the whole ponzi scheme. Also from Mish's Global Economic Trend Analysis: Does 60 Minutes Legitimize Walking Away?
It appears that REDC (US Home Auctions) is going to be quite busy this month and earning some nice commissions (5% âBuyers Premiumâ). If you visit their site and click on an area, there is a detailed break down on all the homes being offered and an option to download them to an excel file. REDC also lists what the previous REO asking prices were. Adding up that column comes up to about $650 million worth of REO that "MUST BE SOLD" in one month (11 auctions). Lenders are now in liquidation mode as foreclosures continue to climb. (Dataquick: California Foreclosure Activity Still Rising)
While obvious that we still haven't hit the "bottom" yet as far as home prices are concerned, and according to a Merrill Lynch report, home prices will drop another 15 percent this year, and declines will continue in 2009. The unknown is just how serious will the upcoming recession be? The FED is in full battle now in fighting against a monstrous deflationary force caused from the collapse of the housing bubble.
Should I buy yet? It really depends on your area. Real estate is local to a greater extent, just make sure you get a good deal, and by that I mean a very good deal. If you can negotiate a good price and intend to live there, I'm guessing you should be okay (yes, i did say guessing). Mortgage rates are at a 2 year low and expected to come down even further. This will make a difference and will bring in a lot of people who were on the sidelines back into the market. Okay, I'm starting to sound like a Realtor(TM) now. Simply put, I don't believe you should put your life on hold waiting for the absolute bottom and in some areas it may not turn out as you expect.
Be sure to do your homework and figure out what a property would rent for and and compare that to what your monthly mortgage payments would be. Here's a calculator from the New York Times and another one from the Center for Economic and Policy Research (2005). If you are looking to buy and flip a house, then be sure to check out one of my favorite sites on flipping houses. Good Luck to all those attending the auctions and be very careful on how you bid.
Update: (And thanks Bubble Sitter for posting this)
âUS Home Auctions allow SHILL BIDDING.The quote below is right out if their brochure (and this is the second time I have posted this quote on your web site):â
âOn page 122 paragraph 3, I quote verbatim: âExcept where prohibited by law, the Auctioneer may open bidding on any property by placing a bid on behalf of the Seller and may further bid on behalf of the Seller, up to the amount of the reserve price, by placing successive or consecutive bids for a Property, or by placing bids in response to other bidders.ââ
âYour advice to be very careful is right on the mark. US Home Auctions wants to get the bidding going and get people invested in time and effort, then PUMP THEM UP!â
âBank of America Corp. is in advanced talks to acquire struggling Countrywide Financial Corp., according to people familiar with the situation.â
âIt isn't clear how quickly a deal might be struck, but two people familiar with the matter said it could occur very soon. It also is possible that an agreement could be delayed or fall apart altogether.â
âThe market value of Countrywide has plunged to about $3 billion, which represents about two months' profit for Bank of America. The Charlotte, N.C., bank paid ...â
Countrywide has been struggling with the U.S. housing slump, and on Wednesday said foreclosures and late payments among home loans for which it collects payments rose to the highest levels on record in December.
"âSomebody is going to have to absorb the massive losses in right-positioning Countrywide,â said Sean Egan, managing director of credit-rating firm Egan-Jones Ratings Co. âIt can be done, but the cost is going to be exorbitant. From Countrywide's perspective, it is their best chance for salvation.â"
Shares of Countrywide Financial (CFC) surged 51% to 7.77.
âAs central banks continue to splash their cash over the system, so far to little effect, Ambrose Evans-Pritchard argues things are rapidly spiralling out of their control.â
âTwenty billion dollars here, $20bn there, and a lush half-trillion from the European Central Bank at give-away rates for Christmas. Buckets of liquidity are being splashed over the North Atlantic banking system, so far with meagre or fleeting effects.â
âAs the credit paralysis stretches through its fifth month, a chorus of economists has begun to warn that the world's central banks are fighting the wrong war, and perhaps risk a policy error of epochal proportions.â
ââLiquidity doesn't do anything in this situation," says Anna Schwartz, the doyenne of US monetarism and life-time student (with Milton Friedman) of the Great Depression.ââ
ââIt cannot deal with the underlying fear that lots of firms are going bankrupt. The banks and the hedge funds have not fully acknowledged who is in trouble. That is the critical issue," she adds.ââ
âLenders are hoarding the cash, shunning peers as if all were sub-prime lepers. Spreads on three-month Euribor and Libor - the interbank rates used to price contracts and Club Med mortgages - are stuck at 80 basis points even after the latest blitz. The monetary screw has tightened by default.â
From Implode-O-Meter (A popular web site that tracks failing or "imploded" lenders):
"Imploded" lenders: The "imploded" status is somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or a "firesale" acquisition. The Companies include all types (prime, subprime, or a mix of both; retail or wholesale; subsidiaries and entire companies). Note: Companies listed here may still be operating in some capacity; check with them before making assumptions.
Ailing lenders haven't shut down, but they're significantly scaling back or are (or recently have been) in manifest financial, legal, or operational distress. Unfortunately, most of the industry now falls under this description, so we are forced to reserve this list for the more glaring cases or those which we happen to have more specific info about.
Click here for the whole list of imploded lenders and for the latest news and commentary on the mortgage industry.
"A souring housing market brimming over with foreclosures and falling home prices translates into sweet news for buyers in search of deals. As property values continue their spiral downward, more owner occupant buyers are turning to foreclosed property auctions to find even greater price reductions. America's largest foreclosed real estate auction firm, Hudson & Marshall will auction nearly 600 foreclosed homes located throughout Los Angeles and the San Bernardino Valley area on November 6-11."
Lenders are now aggressively cutting down on prices but that still doesn't mean you're going to find a bargain. All indicators showing plenty of "growth potential" in California's "As Is" home sales industry, and increased competition in REO's is always a good sign for the consumer - just take a look atCalifornia's recent record foreclosure activity.
The other day Countrywide Financial posted over 195,000 properties for sale on their REO/Foreclosure website. It was a complete shocker to many of us - as we didn't know what to make of this.
"There was a technical glitch. I'm trying to get you the accurate number but it probably won't happen until tomorrow."
A reader from the L.A. Times Blog asked:
âMattJ wrote, " I'm sure it is a technical glitch, too, but the real question is what is that list of 190,000 houses a list of? Some speculation at Calculated Risk include that it is a list of homes in the foreclosure process but not yet REOs, or that it is a list of all REO houses that Countrywide services. Whatever it is, it sure would be nice to learn what that larger list contains and how it ended up in their list of Countrywide REOs."â
The question from MattJ's post was forwarded by email to Countrywide by Peter and the response from Countrywide was as follows:
"There was an omission in the logic that didn't filter out any properties so it was including all historical REO properties in the database. This has been rectified and new logic has been added."
From Peter Villes:
"To answer gman's question ("Is it possible that Countrywide has 196,000 of these and they've just been holding back?"), we think that is highly unlikely, and we take Countrywide at its word on this one: a technical glitch."
I believe this explains a lot, and we should take Countrywide at its word on this one as well.
There were 195,433 properties published for sale (click on state links above to see the properties) by Countrywide Financial all through last night and this morning (probably up until noon time I'm guessing). Countrywide no longer has all these properties on their site as being offered for sale and the number of REO's currently listed are back to the 13k range. This huge number of listed properties is just too huge to figure out what is going on. I truly thought those numbers were going to stay published on their site. I cannot say what Countrywide's intentions were for publishing 195,433 properties. Perhaps it was a mistake? I have no clue. The current properties offered for sale can be found here. All data on this blog is AS IS.
News Release from the Comptroller of the Currency: Comptroller of the Currency John C. Dugan said today that banks need to strengthen their underwriting standards, particularly on loans sold to third party investors.
âI am here to say that bank underwriting standards for these products, in many cases, moved too far away from what they would have been if the bank had held those loans on its own books,â Mr. Dugan said in a speech to the American Bankers Associationâs Annual Convention.
Mr. Dugan noted the many positive aspects of the âoriginate-to distributeâ model, but said there can be negative effects on underwriting standards, including relaxing significantly the incentives to use caution and prudence in underwriting loans sold to third parties.
âWhen a bank makes a loan that it plans to hold, the fundamental standard it uses to underwrite the loan is that most basic of credit standards that Iâve already talked about: the underwriting must be strong enough to create a reasonable expectation that the loan will be repaid,â the Comptroller said. âBut when a bank makes a loan that it plans to sell, then the credit evaluation shifts in an important way: the underwriting must be strong enough to create a reasonable expectation that the loan can be soldâor put another way, the bank will underwrite to whatever standard the market will bear.â
Comptroller Dugan outlined what needs to be done. âI am here to say that banks need to strengthen their underwriting standards so that they move back towards the fundamental principle of maintaining a reasonable expectation that loans will be repaid, even if the loans are to be sold to third parties â and that goes for mortgage loans, leveraged loans, or any other syndicated credit,â Mr. Dugan said. read more >>
According to the latest Experian-Gallup Personal Credit Index consumers don't plan on making any significant purchases (homes, cars, plasma TV's, granite countertops, etc...) any time soon. What's interesting to note about this survey is that consumer credit perceptions have been negatively impacted by the subprime mortgage fallout along with rising foreclosures, and the recent spike in long-term interest rates.
From Experian: âKey results on consumer attitudes toward the mortgage market include:
* 58 percent believe the problems in the subprime mortgage market will affect the overall mortgage market, while 24 percent feel the problems will be contained. * 61 percent of consumers who are very familiar with subprime mortgage loans believe the problems in the subprime mortgage market will spill over into the overall mortgage market. * 55 percent believe the federal government should pass new legislation helping subprime borrowers keep their homes and avoid foreclosure.
Overall, about 52 percent of consumers surveyed feel the average price of homes in their area will increase over the next year, while 29 percent believe prices will remain about the same. Eighteen percent of consumers expect that prices in their area will decrease.
Among homeowners, 50 percent believe that average prices will increase, while 32 percent feel they will stay about the same.â read full article >>
From Implode-O-Meter (A popular web site that tracks failing or "imploded" lenders): âThis is our list of lending operations that have âimplodedâ (see also ailing lenders). âImplodedâ is somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or âfiresaleâ acquisition. Important: All information here is provisional. If you are planning on doing business with any of these companies you should inquire with them on whether they can still meet your needs. Many are still operating in some capacity.
âThe Companies include all types (prime, subprime, or a mix of both; retail or wholesale; subsidiaries and entire companies). The list, with links to stories and whatever details we have available (most recent first) follows:â
Number 100: CIT Home Lending
âCIT Group, a major conglomerate lending and investment shop, is exiting the home lending business entirely, after taking an âunexpectedâ (hah!) loss of $127 million in the second quarter.â read more >>
The Telegraph reports: âTwo struggling Bear Stearns hedge funds that ran into difficulties after making large bets on the troubled US sub-prime mortgage market now contain âvery littleâ or âeffectively no valueâ for investors, according to the Wall Street firm.â
âIn a letter to clients, Bear Stearns, which had to pump $1.6bn (ÂŁ800m) into the funds last month to stop them collapsing, said that it was seeking âan orderly wind-down of the funds over timeâ.â
âIn what it described as âa difficult development for investorsâ, the bank said âthere is effectively no value leftâ for investors in its Enhanced Leverage Fund and âvery little value leftâ for investors in its High-Grade Fund.â read more >>
Letter sent to investors: Dear Client of Bear, Stearns & Co. Inc, ... read letter >>
Bear Stearns shifted the blame from subprime mortgage to âunprecedented declines in the valuations of highly-rated securities.â The two funds have been in the news for weeks after suffering heavy losses. Bear sent the letter to investors yesterday.
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