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A Simple Explanation Of The Federal Reserve Statement on September 23

FOMC Announcement September 23 2009The Federal Open Market Committee voted to leave the Fed Funds Rate within its target range of 0.000-0.250 percent.

It also reiterated plans to support the mortgage market to the tune of $1.5 trillion.

In its press release, the FOMC noted that the U.S. economy is “picking up following its severe downturn” and that financial markets have “improved further”.

It’s the second consecutive post-FOMC statement in which the Fed appears somewhat optimistic — a signal that the recession will end soon, or has already ended.

That said, the economy still has some soft spots and the Fed made a point to single them out.  Each poses a distinct threat to economic recovery.

  1. Ongoing job losses
  2. Sluggish income growth
  3. Tight credit conditions

Also in its statement, the Fed confirmed its plan to hold the Fed Funds Rate near zero percent “for an extended period” and to honor its $1.25 trillion commitment to the mortgage bond market.

However, the FOMC changed its timeframe on the mortgage-backed bond buys, extending its deadline to March 2010.  This move should help the Fed keep mortgage rates in the Dayton, Ohio area from rising too high as the economic expansion takes hold.

Market reaction to the Fed’s press release is positive.  After an early day sell-off that drove rates higher by about a quarter-percent, most of the pressure is easing.  Pricing is worse on the day overall, but well off its lows.

The FOMC’s next scheduled meeting is November 3-4, 2009.


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Posted on September 23rd, 2009 by Mark Ryan

Want To Know Why Dayton Ohio Mortgage Rates Are Up Over 1.125% In 10 Days?

Non-Farm Payroll Report June 2009

Mortgage rates in Dayton and the nation are on the move…

Since Memorial Day, conforming mortgage rates have jumped by more than 1.125 percent, adding thousands of dollars to the annual cost of home buying a home in Dayton or any of the surrounding areas.  That is really not what we need in today’s challenging market.

To the casual observer, the moves may seem random or just more of the up and down we may have come to expect.  There’s a reason this is happening, however.

  • It starts with inflation.
  • As an economic force, inflation erodes the value of the U.S. Dollar.  Left unchecked, it drives up the Cost of Living as each dollar “buys less” at the supermarket, gas station, or anywhere else.
  • But with respect to mortgage rates and what you will have to pay when you buy a home in the Dayton Ohio area, inflation’s impact is more immediate.  Because inflation devalues the dollar over the long-term, it renders long-term mortgage bonds a less attractive investment for traders.
  • If bond investors are repaid in U.S. Dollars, after all, it would make the investment worth less if the dollar is in an inflationary free fall.
  • Stay with me here… I know it is boring but if you are thinking of buying a home in Dayton or even selling a home in Dayton Ohio metro area this is stuff that impacts what you can afford to buy and or what your home may be worth…
  • Therefore, in situations when inflation is likely to present, we find that traders often sell out of their mortgage bond positions which, in turn, drives down the bond prices.  Then, because bond yields move in the opposite direction of bond prices, rising rates are the inevitable result.

Lately, Wall Street is fearing inflation for a number of reasons:

  1. Job losses are slowing, adding to consumer spending expectations
  2. Gas prices have risen 41 days in a row
  3. The federal government is increasing the money supply

These 3 factors — plus a few others — are all coming to a head around the same time and traders are getting defensive with their portfolios.  As a result, they’re selling their mortgage bond positions and it’s driving mortgage rates higher for Dayton, Ohio home buyers.

Rates may continue to trek toward 7 percent through July and August, or they may retreat toward 5 percent.  We can’t know for sure.  What we can know, though, is that volatility in rates should continue until the economic picture gets more clear. That could be next week, or next year.

For now, be ready to lock at a moment’s notice.  Mortgage rates are changing quickly.

So, if your loan officer says you may want to lock… consider the risks of not doing just that…


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Posted on June 8th, 2009 by Mark Ryan

Cincinnati Short Sale Expert?

How do you find a Cincinnati Short Sale Expert?


Ask Questions only a Cincinnati Short Sale Expert would know…

  • How many short sale transactions do they handle a month?
    • The answer should be that they are working with several short sale transactions EACH month.  NOT that they did one or two last year, etc. 
  • How long have they been working with clients in Foreclosure and handling short sales?
    • Hint: you don’t want to be the one the “learn” on.  If they have only been doing short sales for a few months or did some a few years ago they will just not have the contacts and experience necessary to help you as best possible.  Watch out for short sale scams
  • Can they explain the process and how their expertise successfully completes Cincinnati short sale transactions?
    • What training do they have?
    • What contacts and “back door” tools do they have and use?
    • What do they do to stand out from the literally thousands of other short sale packages?
  • Do they submit a short sale package specific to a Cincinnati Ohio Short Sale?
    • Are they even from Ohio?
    • Can the tell you in DETAIL what goes into their package and how it will stand out from all the other Cincinnati Ohio short sale packages or even worse from all the other short sale packages all together?
  • What training and experience do they have in COMPLETING Cincinnati area short sales? 
    • Are they a Certified Distressed Property Expert?  The gold standard in short sale training…
    • Any other designations or training?  I have 3 short sale designations and hours and hours of experience and additional training… they should too.
    • Have they or do they work with a coach / trainer to help them with staying on top of the ever changing short sale environment?
      • I have worked with several different coaches / trainers for the last 2 years to ensure we are on the cutting edge in terms of client service.
  • Can they give you OTHER options to avoid foreclosure?  OR, is a Cincinnati Short Sale their ONLY recommendation to you?
    • Often a Cincinnati Short Sale is the best options… sometimes it is not.  You deserve to know and understand ALL the foreclosure avoidance options.
    • You MUST understand the options and pros and cons of each option. 
    • There is NO one perfect option for stopping foreclosure.  You are really picking the best of all the bad choices.
  • Do they have a support team that works FOR them… not the front desk person or their inspector, etc. 
    • Cincinnati Short Sales, all really not just Cincinnati short Sale this post is just about Cincinnati…are just to difficult to handle effectively with just one person.  There is just too much to do if they are doing any volume of real estate business at all. 
    • Find someone that has the support staff to manage and SERVE you as you deserve.
  • Will they even handle your Cincinnati Short Sale?
    • Often I am seeing Cincinnati short sale “experts” that farm out your transaction to outside companies that are out of state and as a whole have a very hit and miss record of performance.
    • The idea goes that they are experts and can better serve you.  The reality is that they pick the “easy” deals and leave the rest… They make enough money off the easy ones…
    • Will your home be the one to avoid foreclosure?  Or, will yours be a “hard” one that just adds to the number of Cincinnati Ohio foreclosures
    • Don’t leave your future to be outsourced…
  • What literature, brochures, reports or books can they give you?
    • I offer many reports and actually co authored a book on the topic of short sales.
    • Can they give you anything?


This sounds like just bragging?  Why do I consider myself a Cincinnati area Short Sale expert?

This is sad but true, so many agents are now calling themselves Cincinnati Short Sale experts and they just simply are not.  They have little or no experience, little or no training, no support staff… really just looking to make a buck.  I have made it the mission of my real estate team to find and help as many Cincinnati area home owners that are in distress / foreclosure and offer our help as we can.  The Cincinnati area real estate market is really hurting and we want and need to do our part to help as many people as possible.  Please don’t fall for someone that just does not have the tools, training and experience necessary to really help you. 


I know, as you can tell from this web site…. My primary market area is Dayton.  Realize that I can be in most parts of the greater Cincinnati are in 20-45 minutes of leaving my office.  It is MUCH more important that you have a true professional working for you in a short sale transaction than it is how close the office is to your house.  I lived and worked in greater Cincinnati for years and know the area… more importantly I know how to save your house from foreclosure!


Call 513-235-9261 or 888-283-2648 with any questions or to set an appointment to discuss your options.

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Posted on April 13th, 2009 by Mark Ryan

Dayton Short Sale Expert’s Advice Not Taken…

Sad Story of Dayton Area Short Sale

Here is some quick background on the story.  I met with clients months ago and listed their home that was in the early stages of foreclosure.  So we did in fact list the home as a short sale or pre foreclosure.  After about a month on the market they called to take the home off the market saying that the bank was going to work things out and they did not want to sell.  This sounds like great news and a way to avoid foreclosure… well it can be, but all too often I see that it is in fact not a way to stop foreclosure at all.  What often happens is the bank just does not offer enough to make it work for the home owner or what they are told on the phone is not what comes in writing.


So, the home owners take the house off the market thinking everything will be great and they can get back on with their lives.  I warned them that often things to not work out and that I would be happy to assist with the discussions and review things with them that the bank sends over.  My best advice in avoiding or stopping another Dayton area foreclosure was that we keep the home on the market while the discuss things with the bank, that way if things did not work out we had a “plan B”.  I really don’t fault them, they were doing what they thought was best, but things did not work out and now we have lost months and are so much closer to foreclosure. 


We are going to re list the house as a pre foreclosure / Dayton Short Sale and try to stop the foreclosure by selling the home prior to the foreclosure sale.  That will be harder as we lost months of the pre foreclosure time.  Lucky for them we really are short sale experts and will market the home very aggressively in an attempt to sell it prior to the foreclosure sale.  Read on below on some of my thought about this all to common situation…


Can you stop a Dayton Area Foreclosure?  What are the problems?

  • Yes you can but often what the bank works out with you just is not enough.
  • What you are told on the phone is not what is in writing.
  • What they tell you is true but you just don’t qualify.
  • Things change from when you talk to when the work out package arrives.
  • There are plenty of short sale scams out there as well.


Dayton Ohio Short Sale Expert Advice…

  1. Always talk with you attorney and/or account in addition to your realtor.
  2. Your Realtor should, no MUST be a real short sale expert.
  3. Listen to your “gut” if what you are being told by different sources differs then keep asking questions.
  4. What is the level of experience in dealing with foreclosure, pre foreclosure and/or shorts sales?
  5. What current training and/or experience does the person advising you have?
  6. If it sounds too good to be true… then it just may be…


What could have been done to avoid the possible foreclosure?

  •  Really evaluate all the advice and information.
  • Keep the home listed as a Short Sale while talking with the bank.
  • Call me even sooner when they knew things were not going well with the bank.
  • Get the home back as a Short Sale as soon as they knew it may not work out with the bank.

You see, as a homeowner selling your house as a short sale you are still in control.  You never HAVE to sell it.  If you list it the understanding it that you will but you are still in control and have options.  I will keep you posted on how things go…


You have options when it comes to avoiding or stopping foreclosure!  A short sale is often the best and something you really need to discuss with an experienced short sale expert.  We specialize in the Dayton and Cincinnati Ohio areas as short sale expertsand would love to talk with anyone to offer or assistance.  If you need to stop a Cincinnati or Dayton foreclosure click the link below for a free consultation.


Stop Foreclosure

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Posted on April 12th, 2009 by Mark Ryan

Short Sale Scams…

Short Sale Scams in the Dayton, OH area

There are so many home owners in financial distress in the Dayton and surrounding areas that it is just sad that this is even a problem…  Unfortunately as a short sale expert I have to see the effects of what being mislead can do to a seller in foreclosure.

What is a Short Sale Scam?

There are really two kinds of short sale scams in my opinion…

  1. Short sale scams where the person taking advantage knows they are harming the home owner in distress or foreclosure.
  2. Short sale scams where the person, usually a Realtor or real estate agent that is just in over their head.  They just don’t understand all that is involved in successfully completing a short sale transaction and all the steps necessary to get the bank/lender approval.
  3. OK, I guess there are three kinds… short sale scam #3  The real estate agent (usually) has some experience and may be able to “fumble” their way through some short sale transactions but just don’t know enough to know when they are over their head OR even worse they KNOW but don’t tell the seller that they are in a short sale transaction that is beyond their expertise…

OK, Short Sale Scam #1

This can be the most harmful situation of all… taken to the extreme the home seller is cheated out of even more money and the home still ends up in foreclosure.  They home owner things they are paying to stop foreclosure and may just be being taken.   What are some of the scams I see…

  • The pay up front and we will stop foreclosure scam.
  • We have a lawyer and they can find a “problem” with the mortgage and get you out of this… just pay us now…
  • We will take over your payments you just pay us rent… then they never pay anything…
  • Sign over the deed to your property and we will negotiate with the bank… they have to have title if they are going to do all that work you know… yea right!  Well they don’t do anything and now the home owner is no longer the LEGAL owner… they can not do anything to stop the foreclosure and even if they do they don’t own the house any longer…
  • There can be so many other scams… ASK A LOT OF QUESTIONS!!!

Short Sale Scam #2

This is one of the most frustrating for me as true real estate professional and someone that takes my profession and the necessary education very seriously.  I have spent thousands of dollars and weeks of time in education classes making sure I and my team have the knowledge necessary to take good care of our clients.

What happens when an agent tells a home owner in distress or foreclosure they can help when they really don’t know what they are doing it not only giving them false hope but they are also violating the Realtor code of ethics, if they are a Realtor.  The code of ethics says they we are Realtors should not practice in an area beyond our expertise.  Just as I will not sell a 40 story office building (while legally I am licensed to do so) they should not be doing short sales until they get the necessary training.  And, NO that does not mean taking a 3 hour class in their office or that they “did one” 3, 4 or 20 years ago… Things today are so dramatically different then they were even 3-4 years ago.  The mortgage crisis has banks utterly buried under mounds of short sale files…

Short Sale Scam #3

This is slightly different that #2 in that they may actually be able to handle some of the easier transactions.  Not that there are really ANY EASY transactions when it comes to short sales… but maybe then can do it if they only have a few listings and a lot of time to make mistakes.  This is not the agent I would want handling my serious financial problems.   Worse yet, since they “don’t know what they don’t know” they won’t really even know when they are in over their heads… What will they do with an FHA loan, what if the appraisal or BPO come in too high or too low… how about seller counseling?  Need to get a variance?  Can the buyer ask for closing costs, repairs, home warranty etc?  Do they have contact at banks and other institutions they can fall back on to answer questions and overcome problems???

How to avoid a Short Sale Scam…

My best advice is to call me directly or submit a form here on our site… If you are in the greater Dayton or Cincinnati area we may be able to help you directly.  If you are beyond our service area we will help locate a certified professional that can help you.

  • The most impressive, ethical and through training would be the Certified Distressed Property Expert (CDPE).  Ask the person you are talking with if they have the certification.
  • Ask them LOTS of questions…
  • Ask them how may SHORT SALES they have CLOSED in the last 6 month.  Hint… if that number is 1 or 2 … keep looking.  A real specialist will be closing that many each month…
  • Ask for references.
  • Ask them what SPECIAL short sale specific forms they have had their attorney prepare to protect you and them as the process move along.
  • Do they have a team to assist them?  If they work alone they will just not have the time to do all that is necessary to complete a short sale.

I hope this helps, please call me with any questions.

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Posted on March 15th, 2009 by Mark Ryan