DEAN GRAZIOSI: DEAN GRAZIOSI REAL ESTATE – REAL ESTATE FEED BY DEAN GRAZIOSI

In 2009, the United States Treasury Department launched a new initiative designed to assist Home Affordable Modification Program (HAMP) qualified borrowers avoid foreclosure.  Under HAMP, qualified applicants must first prove themselves able to sustain the modified payment schedule through a trial program.  Unfortunately, a high percentage of these qualified applicants are unemployed and unable to maintain timely payments.  The next step for these homeowners is to enroll in the HAFA program.

In order to protect these homeowners from the long-lasting credit damage caused by foreclosure, the Treasury came up with a new program called Home Affordable Foreclosure Alternative Program (HAFA).  This program has many advantages for the failing borrower and for the investor seeking a motivated short sale seller.

HAFA provides borrowers who are qualified for HAMP a viable alternative to foreclosure.  Under the terms of HAFA, the borrower who finalizes the transaction is fully released from the future liability for the first mortgage debt.  This important provision protects the borrower and minimizes the damage to future credit reports.

Borrowers must agree to all of the Treasury’s short sale terms before listing the property.  This includes an agreeable short sale price and an agreeable occupancy and closing arrangement. 

To the borrower’s distinct advantage are a $3,000 allowance for the borrower’s relocation assistance and a $1500 allowance to cover administrative and processing fees.  Investors receive $2,000 for allowing $6,000 to be distributed to subordinate lien holders.  The Treasury Department has developed a formula for distribution of these funds.

HAFA is a sensible approach to a sensitive and negative situation.  Sellers involved in the HAFA process are ready, willing and able, unlike independent short sale sellers.  There are just too many advantages for investors in HAFA.  This program may be the best initiative put forth by the Treasury to date.  Serious residential investors should know everything about HAFA. 

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Fannie Mae’s recent report indicated that the portfolio balance remained stable at $779.4 billion in August 2009.  The August stabilization follows a July pullback of 18.2% and lowered the year-to-date decline to –1.5%.  Meanwhile, Freddie Mac reported a stunning decline of 30% in its August portfolio size as volume fell to $779.4 billion.  Year-to-date decreases at Freddie Mac have settled at –4.7%.

Congress has mandated that Fannie Mae and Freddie Mac trim their portfolios by 10% per year beginning in 2010.  Trimming is to continue until portfolios settle at $250 billion each.  Both funds have used the opportunity to elevate credit requirements to boost the quality of the two troubled portfolios.

Fannie Mae’s delinquency rate rose sharply by 23 basis points in August.  Fannie Mae loans that required mortgage insurance or the “credit enhanced” borrowers are incurring the greatest number of foreclosure actions.  “Credit enhanced” delinquencies rose to 10.83%.  Non-credit-enhanced delinquencies also increased to 2.47%. 

Delinquencies among non-credit enhanced borrowers are most troublesome as delinquencies are rising at a faster rate than the credit-enhanced failures.  Investors will note that delinquencies in multi-family loans are 400% above year-over-year figures.

The Obama Administration has countered these trends with aggressive loan modification programs for Freddie Mac and Fannie Mae borrowers.  New incentives have been added to the loan modification plans.  Lenders who process loan modifications for Freddie Mac and Fannie Mae loans receive $1,000 per year for three years while the homeowner who remains current with the new modification receives a $1,000 principal reduction for each of the first three years. 

While Fannie Mae and Freddie Mac have been pressured, the rise in Ginnie Mae activity is surprising.  Ginnie Mae’s fund has quadrupled in size as credit demands have eased and loan limits have increased beyond $729,000.

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Learn To Invest in Real Estate with Dean Graziosi

There are hundreds of first time investors who try hard to make a profit in real estate without gathering the requisite information needed for investment. They try to start investing without really knowing what’s going on in the market, hoping to learn everything on the way. This attitude results into grossly unprofitable deals or even bankruptcy. You should not jump head-on into real estate or any other industry without proper research, knowledge and guidance.

The idea is – invest wisely and invest with great care. Making the right real estate investment at the right time can result in incredible financial freedom. And if you are a novice investor, learn the basics of property investing from an eminent real estate expert such as Dean Graziosi. It is crucial for you to understand the principles of this trade before you start investing. Much like I have done, reading his books on real estate and attending his seminars can give you the much needed knowledge, guidance and the edge to succeed.

Dean Graziosi - The Quintessential Real Estate Investing Expert

Dean Graziosi is a popular author on real estate, a great motivator and a multi-millionaire real estate investment expert. His highly popular real estate personality has achieved immense success through hard work guiding other people achieve success in investment with his verifiable knowledge and books related to Real Estate Investment. Dean Graziosi has transformed the lives of millions of people in the United States and abroad. With his inquisitive mind, trend assessment skills and proven techniques, he has helped many new investors gain financially from real estate investment.

Read Books by Dean Graziosi

There are millions of novice investors who spend months and thousands of dollars on investment advice without gaining anything from the real estate market. The common mistake – NEVER had time to read books on real estate. There are also people who have read books but never implemented the given steps. The point is: Read good books from eminent authors such as Dean Graziosi. The advantage: If you understand the basics of the real estate industry, then you are in a situation to start investing the RIGHT way! You can learn all the ‘advanced’ tricks by attending his seminars.

Dean has authored “Be A Real Estate Millionaire: Secret Strategies for Lifetime Wealth Today” which quickly became one of the fastest selling real estate investing books in the country. It is a simple, easy to understand real estate investing guide for people who want to know how they can use simple techniques to achieve financial and personal success in real estate. He has also authored “Think a Little Different” a guide to building personal wealth through real estate. The simple methods and vivid examples given in his books can help you obtain profits from real estate investing. With Dean on your side, your investments will surely pay off!!

I would personally recommend Dean Graziosi. I am thankful to Mr. Graziosi for the difference he has made, through his advice in my life and in the overall financial well-being of my family. He can transform your life too!!!

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