home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Foreclosure News | Foreclosure Resources

Foreclosure Tours Generate Loan Prospects

Countrywide organizes Minn., Ariz. tours

March 19, 2008


Mortgage lenders with growing backlogs of foreclosed properties are teaming up with real estate brokers to unload those properties and generate loan prospects by hosting foreclosure tours.

The tour concept started on the West Coast, especially California -- with its large number of foreclosed homes, said Michael Locker, sales manager at Countrywide Bank FSB in Duluth, Minn., who has been helping organize tours in Duluth and the Twin Cities.

Tucson, Ariz., has more recently joined the trend.

"We've heard nothing but positive things from participants, and one made an offer that is now being examined by the bank," said Todd Greene, a real estate consultant with the Pepper Group Diversified in Tucson, which has conducted two tours on which 15 people were shown 24 homes, all REO properties now owned by some 15 banks.

In response to more than 50 phone inquiries, a third tour has been scheduled for next week, according to Greene. The first two tours were held earlier this month.

Response to a tour last month in Duluth was "fantabulous," according to tour organizer Locker, who prequalified many on that tour and nine of the 13 who participated in a second tour.

Prequalification is required, Locker explained, and the tours are free for those prequalified by Countrywide, while those prequalified by other lenders pay $25.

Three of the 13 prospects from the second tour are preparing offers on one of six homes visited, he said.

"That property was priced right to sell," he said. "A couple of homes were well over-priced for the condition they were in, and a couple were priced very well."

Seven of the 13 from the second tour, and six others have registered for an upcoming tour, Locker reported. Additional tours are scheduled for mid-April and mid-May.

But these tours are often more than simply a series of visits to open houses.

"We do as much due diligence on the properties as possible," Greene pointed out.

And they give presentations on the cost differences between buying a typical foreclosed home and a bank's REO property, which typically sells for a higher price, he said.

"REO homes are typically in better shape," Greene said. "The bank may have done some repairs. And there won't be any liens that a buyer would have to pay off."

Participants almost always are required to be prequalified or provide proof of funds for a purchase.

"We're trying to minimize the number of people who just want to look," Greene noted.

"We don't require prequalification, but it's a benefit to them to know what their affordability is," said Kimberly Koehler, broker/owner of EXIT Three Rivers Realty, in Lake Elmo, Minn., in the Twin Cities area.

Tour organizers also often take other steps to prepare participants for purchases.

Twin City tour participants attend pre-tour training sessions to educate them on the foreclosure process and to learn the advantages and disadvantages of purchasing foreclosed homes, Koehler explained.

And a home inspector and a construction contractor, who have already seen the homes, are present on the tour buses to explain what potential buyers should be aware of and discuss the costs of required repairs, she said. Further, tour guides point out that the properties may qualify for special financing for rehabilitation under HUD's 203(k) program.

One of seven homes from a mid-March tour was the only non-REO or non-short sale property, but it had been an REO when it was purchased last year by an owner who then invested in improvements and now is selling the home.

"People can see a property that was in distress and then purchased and fixed up. They can see what it cost in '07 and what it's now selling for," said Koehler, who pointed out that this may stimulate sales of the six REOs.

Some of the 15 participants have expressed interest in making purchases, but none have yet submitted any offers, she said.

A second tour has been scheduled for April.

Locker said the Duluth foreclosure tours include as sources a Realtor, a title company representative and a licensed contractor to answer questions about property defects and required and desired rehab work.

"The tours," concluded Twin Cities' Koehler, "are a great way to get people out looking at houses."

Jerry DeMuth is an award winning journalist who has been reporting for four decades.

e-mail Jerry at [email protected]
Stories For Salespeople
Loan originator and broker news and stories. Advice about improving mortgage loan originations. Insights to and profiles of mega-producers.
sales stories | sales books | originator newsletter

Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders