The document discusses the housing market overview and how the market has been affected in recent years. It notes that homes purchased or refinanced in the last 13 years have been directly affected, impacting friends, families, communities, local businesses, schools, taxpayers and everyone indirectly. It also discusses how bank profits increased dramatically while homeowners faced devaluation of their homes through the bank-owned sale process.
3. background
Top-Producing Realtor in Napa
http://www.flickr.com/photos/johnjoh/1060267344/ http://stevenwblack.com
4. background
Been through it personally
http://www.flickr.com/photos/smswigart/5147001743/ http://stevenwblack.com
5. background
Driven by passion to help other
Americans keep their homes
http://www.flickr.com/photos/bondomania/2636802659/ http://stevenwblack.com
6. we’re going to talk about
Why we’re here
Who is a ected
How it happens
What you can do
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7. the fine print
* Steven W. Black & Associates o ers
information on the state of the market
and insight into what has worked in
the past. Each situation is unique and
you are responsible for the use of
the information presented.
! Steven W. Black & Associates offers
information on the state of the market and
insight into what has worked in the past. Each
situation is unique and you are responsible for
the use of the information presented.
http://stevenwblack.com
8. the fine print
* Steven W. Black & Associates o ers
information on the state of Don’tmarket are happy to
the worry, we
o er help specific to your
and insight into what has workedafter this presentation
situation in
the past. Each situation is unique and
you are responsible for the use of
the information presented.
! Steven W. Black & Associates offers
information on the state of the market and
insight into what has worked in the past. Each
situation is unique and you are responsible for
the use of the information presented.
http://stevenwblack.com
9. Why Are We Here?
http://www.flickr.com/photos/joao_trindade/4363157652 http://stevenwblack.com
10. how it SHOULD work
Change in financial situation
ARM Adjusts
Job Loss
Injury
etc.
http://stevenwblack.com
11. how it SHOULD work
Change in financial situation Loan Modification
ARM Adjusts Priniciple reduction
Job Loss Restructuring
Injury (interest rate )
etc. Enabled by Federal
Assistance programs
http://stevenwblack.com
12. how it SHOULD work
Change in financial situation Loan Modification one.
D
D
ARM Adjusts Priniciple reduction
Job Loss Restructuring
Injury (interest rate )
etc. Enabled by Federal
Assistance programs
http://stevenwblack.com
20. loan modification programs
SMD Streamlined Mod Process
Indy Mac Plan
Fannie Mae/Freddie Mac Plan
Hope for Homeowners Plan
TARP
HAMP
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21. loan modification programs
1 SMD Streamlined Mod Process
2 Indy Mac Plan
3 Fannie Mae/Freddie Mac Plan
4 Hope for Homeowners Plan
5 TARP
6 HAMP
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22. How Did the Major Banks Do
in 2009?
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24. wells fargo *
500,000 modifications in 2009
10,000 modifications per state
* Source: Bloomberg News (http://www.bloomberg.com/apps/news?pid=21070001&sid=atfjHz4E3sdc) http://stevenwblack.com
25. wells fargo *
500,000 modifications in 2009
10,000 modifications per state
that’s 833 modifications per month
* Source: Bloomberg News (http://www.bloomberg.com/apps/news?pid=21070001&sid=atfjHz4E3sdc) http://stevenwblack.com
26. wells fargo *
500,000 modifications in 2009
10,000 modifications per state
that’s 833 modifications per month
58 counties in California
* Source: Bloomberg News (http://www.bloomberg.com/apps/news?pid=21070001&sid=atfjHz4E3sdc) http://stevenwblack.com
27. wells fargo *
500,000 modifications in 2009
10,000 modifications per state
that’s 833 modifications per month
58 counties in California
172 per county every month
* Source: Bloomberg News (http://www.bloomberg.com/apps/news?pid=21070001&sid=atfjHz4E3sdc) http://stevenwblack.com
28. wells fargo *
500,000 modifications ns 2009 in
10,000 modifications a state
oper
L
ib le
that’s 833 modifications per month
l ig
58 counties
f E in California
o
6
172 per %county every month
* Source: Bloomberg News (http://www.bloomberg.com/apps/news?pid=21070001&sid=atfjHz4E3sdc) http://stevenwblack.com
29. bank of america *
650,000 modifications in 2009
* Source: Bloomberg News (http://www.bloomberg.com/apps/news?pid=21070001&sid=atfjHz4E3sdc) http://stevenwblack.com
30. bank of america *
650,000 modifications in 2009
13,000 modifications per state
* Source: Bloomberg News (http://www.bloomberg.com/apps/news?pid=21070001&sid=atfjHz4E3sdc) http://stevenwblack.com
31. bank of america *
650,000 modifications in 2009
13,000 modifications per state
that’s 1083 modifications per month
* Source: Bloomberg News (http://www.bloomberg.com/apps/news?pid=21070001&sid=atfjHz4E3sdc) http://stevenwblack.com
32. bank of america *
650,000 modifications in 2009
13,000 modifications per state
that’s 1083 modifications per month
58 counties in California
* Source: Bloomberg News (http://www.bloomberg.com/apps/news?pid=21070001&sid=atfjHz4E3sdc) http://stevenwblack.com
33. bank of america *
650,000 modifications in 2009
13,000 modifications per state
that’s 1083 modifications per month
58 counties in California
224 per county every month
* Source: Bloomberg News (http://www.bloomberg.com/apps/news?pid=21070001&sid=atfjHz4E3sdc) http://stevenwblack.com
34. bank of america *
650,000 modifications ns 2009 in
13,000 modifications a state
oper
L
ib le
that’s 1083 modifications per month
l ig
f
58 countiesE in California
o
4
224 per% county every month
* Source: Bloomberg News (http://www.bloomberg.com/apps/news?pid=21070001&sid=atfjHz4E3sdc) http://stevenwblack.com
36. how it really works
Change in financial situation
ARM Adjusts
Job Loss
Injury
etc.
http://stevenwblack.com
37. how it really works
Change in financial situation Loan Modification
ARM Adjusts Rarely happens
Job Loss ~10% include
Injury principle
etc. reduction
Where is TARP?
Where is HAMP?
...
http://stevenwblack.com
38. how it really works
Change in financial situation Loan Modification Short Sale
ARM Adjusts Rarely happens Bank drives
Job Loss ~10% include terms of sale
Injury principle Multiple O ers
etc. reduction
Where is TARP?
Where is HAMP?
...
http://stevenwblack.com
39. how it really works
ree
or - e -
FFo rre
Change in financial situation Loan Modification Short Sale
cl
c losu
su
o !!!
ARM Adjusts Rarely happens Bank drives !!!
Job Loss ~10% include terms of sale
Injury principle Multiple O ers
etc. reduction
Where is TARP?
Where is HAMP?
...
http://stevenwblack.com
40. Who is Directly A ected?
http://www.flickr.com/photos/billward/4461521050/ http://stevenwblack.com
41. who is directly a ected?
home purchased in the last 13 years
http://stevenwblack.com
42. who is directly a ected?
home purchased in the last 13 years
that’s back to 1997
http://stevenwblack.com
43. who is directly a ected?
refinanced in the last 13 years
that’s back to 1997
http://stevenwblack.com
54. pine st. napa
$220,000
2 Bedroom
1 Bath
$165,000 ~0.3 Acre
Regular Sale
$110,000
$55,000
870 ft2
Oct 28, 2010
Dec 10, 2010
http://stevenwblack.com
55. pine st. napa
$220,000
2 Bedroom
1 Bath
$165,000 ~0.3 Acre
Regular Sale
Sold by REO
Bank owned
$110,000
$55,000
870 ft2
1150 ft2
Oct 28, 2010
Dec 10, 2010
* Intentionally pulled one of the lowest comps in timeframe closest to close of escrow of affected property
http://stevenwblack.com
56. pine st. napa
$220,000
2 Bedroom
1 Bath
$165,000 ~0.3 Acre
Regular Sale
Sold by REO
Bank owned
$110,000
$55,000
870 ft2
1150 ft2 $50,100 devaluation
Oct 28, 2010
Dec 10, 2010
for a house 32% larger
in ~5 weeks
* Intentionally pulled one of the lowest comps in timeframe closest to close of escrow of affected property
http://stevenwblack.com
58. westwood neighborhood
$230,000
2 Bedroom
1 Bath
$172,500 ~0.12 Acre
Regular Sale
Sold by REO
Bank owned
$115,000
$57,500
880 ft2
760 ft2
Sept 4, 2009
Sept 18, 2009
* Intentionally pulled one of the lowest comps in timeframe closest to close of escrow of affected property
http://stevenwblack.com
59. westwood neighborhood
$230,000
2 Bedroom
1 Bath
$172,500 ~0.12 Acre
Regular Sale
Sold by REO
Bank owned
$115,000
$57,500
880 ft2
760 ft2
Sept 4, 2009 $81,800 devaluation
Sept 18, 2009 in 14 days
* Intentionally pulled one of the lowest comps in timeframe closest to close of escrow of affected property
http://stevenwblack.com
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$350,000
$700,000
$1,050,000
$1,400,000
http://stevenwblack.com
61. Ja
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http://stevenwblack.com
62. autumn run neighborhood
$1,400,000
$765,000 devaluation $1,050,000
over 3 years while
bank profits are at record highs
$700,000
Regular Sale
Bank owned
$350,000
* *
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http://stevenwblack.com
63. W
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$400,000
$600,000
$800,000
http://stevenwblack.com
64. W
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8/2008 through 9/2010
Sa
ge
W
ay
$200,000
$400,000
$600,000
$800,000
http://stevenwblack.com
65. autumn run neighborhood Q1 2008 through Q3 2010
bank profits*
home values
* Source: Federal Deposit Insurance Corporation (FDIC; http://www.fdic.gov) http://stevenwblack.com
66. autumn run neighborhood Q1 2008 through Q3 2010
$51 Billion
292% annual increase
34% quarterly increase
$765,000
devaluation
* Source: Federal Deposit Insurance Corporation (FDIC; http://www.fdic.gov) http://stevenwblack.com
67. napa overview As of January 14, 2011
Pre-forclosure 367
Auction 444
Bank Owned 401
Total 1,212
* Source: BAREIS http://stevenwblack.com
68. crime rate
According to a study by Woodstock
Institute and the Georgia Institute of
Technology, a foreclosure rate of
3 percent leads to a
7 percent increase in crime*
* Source: National Association of Realtors http://stevenwblack.com
83. finishing up
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