Dave Liniger, the co-founder of RE/MAX International, has lobbied for two years for rules to streamline the short-sale process.

On the same day that the Obama Administration’s Home Affordable Foreclosure Alternatives Short Sale program took effect, RE/MAX University produced a special live broadcast from its headquarters in Denver. The program presented key industry leaders who detailed the new Short Sale policies directed at helping millions of American families facing foreclosure. The new rules went into effect on Monday.

“We sometimes forget that behind every distressed property is a distressed family and we need to use every tool at our disposal to help them through a very personal crisis,” said Dave Liniger, RE/MAX International Chairman and Co-Founder. “The new HAFA plan provides tremendous incentives for distressed homeowners and their lenders, which speeds up the short sale process, and provides a realistic alternative to foreclosure.”

A short sale occurs when a lender allows a homeowner to sell their home for less than what is owed on the mortgage. Short Sales reduce financial losses and result in less damage to the homeowner’s credit. However, short sale transactions have been difficult to navigate, and the HAFA guidelines seek to streamline the process and offer cash incentives to both homeowners and lenders who successfully conclude short sale transactions.

HAFA alternative to foreclosures

A keynote speaker featured in the he RE/MAX broadcast was Laurie Maggiano, Director of Policy for the Treasury Department’s Office of Homeowner Preservation. Her department was responsible for creating the guidelines of the new HAFA short sale program.

“Of course, the Administration’s first goal is to keep families in their homes, but when that is not possible due to economic or personal reasons, HAFA provides a viable alternative to foreclosure and a graceful exit from a stressful situation,” Maggiano said.

Bank of America: Zero tolerance for feet dragging

Also traveling to Denver to appear in the RE/MAX broadcast was Matt Vernon, a senior vice president with the nation’s largest residential mortgage company, Bank of America. Recognizing that delays from lenders have been a hindrance to short sales in the past, Vernon promised “We have zero tolerance for not following up with homeowners and our Realtor partners, and have instituted a policy that we must respond to inquiries within 48 hours.”

Providing an online transaction platform to Bank of America, Equator Financial Solutions has registered over 665,000 real estate agents and 14,000 asset managers. Equator CEO, Chris Saitta, also joined the RE/MAX broadcast lineup. “RE/MAX and Equator share a commitment to short sale and REO training for agents,” Saitta said during a pre-show interview. “Equator proactively created a HAFA solution that has already allowed their clients to close more than 150,000 short sales, while other servicers are just now thinking about how to handle them.”

After the satellite and Internet-streamed broadcast, it was announced that Equator would become a RE/MAX Approved Supplier and provide discounts to its agents for Equator training. This is Equator’s first such arrangement with a national real estate organization.

Liniger has been lobbying for change

For the past two years, Liniger and other RE/MAX executives have lobbied for a comprehensive overhaul of the Short Sale process during numerous Washington, D.C. meetings with Administration leaders, including Maggiano and the Treasury Department.

Liniger has also been encouraging RE/MAX agents to pursue distressed property and Short Sale training. In just over a year’s time, nearly 15,000 RE/MAX agents have earned either the Certified Distressed Property Expert (CDPE), or the Short Sales & Foreclosure Resource (SFR) professional designations, giving RE/MAX more such designees than any other real estate organization.

RE/MAX continues its dedication to helping families who are facing financial difficulties and assisting in the navigation of the new HAFA program. “I believe Short Sale transactions will increase significantly this year,” said Liniger. “With these new guidelines, we should be able to provide a positive outcome to more families than ever before.”

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

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“We continue to sell franchises in this economy, because RE/MAX offers the best value in the marketplace,” said Vinnie Tracey, President, RE/MAX International Inc. “By joining RE/MAX, our new franchisees and our former competitors know they’re getting the power of a world-class brand, and all the cutting edge technology and training that comes with it.”

A closer look at RE/MAX international franchise sales in 2009 shows explosive growth in several regions –  southwest Germany increased 200%, Portugal grew 100%, and Israel was up 45%. With the addition of eight new countries, including the Bahamas, Brazil, Colombia, Ecuador, Jamaica, Morocco, Peru, and Uruguay, RE/MAX continues to have an international presence greater than any of its competitors.

RE/MAX experienced additional success in the U.S., selling 21 new franchises in California, a state with one of the most challenging real estate markets. There was also impressive growth in other regions. The number of new offices in New England and southeast Michigan increased by 100%, in Georgia by 80%, and in the Mountains States region, franchise sales were up 40%.

“Achieving this type of growth despite a recession is the true test of any company,” said Tracey. “And the fact that RE/MAX continues to exceed expectations and surpass the competition is the reason we’re still going strong, after 37 years.”

Conversions from competing real estate companies to RE/MAX are also increasing. A conversion in Denver allowed Prestige Real Estate Group, a major independent brokerage with 250 agents, to merge with RE/MAX Professionals, creating the third-largest real estate firm in Colorado.

With significant economic and real estate improvements in 2010, RE/MAX said it is looking forward to another successful year of franchise sales around the globe.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

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Mark Baker, formerly Vice President of Regional Development, was named Vice President, Senior Area Director, Western U.S. He   will continue to build the network of RE/MAX Company Operated Regions (COR) and Independent Regions across the western half of the country. Nick Bailey, formerly Regional Vice President, RE/MAX Florida, was named Vice President, Area Director, Eastern U.S. and will now oversee development and expansion efforts of COR and Independent Regions across the eastern half of the country.

“Despite market conditions, RE/MAX International sold 630 franchises last year and opened new regions in nine more countries,” said Jack Kreider, Executive Vice President, Regional Services. “We’re able to build a larger, stronger network of RE/MAX franchises because we have a vision and the leadership to encourage growth and opportunity in any market.”

The realignment of responsibilities also includes other key management changes. Adam Contos, formerly Regional Vice President of RE/MAX California/Hawaii, will now oversee the Florida Region as the new Regional Vice President of RE/MAX Florida. Rick Yohn, who spent two years in China exploring expansion opportunities, will become the new Regional Vice President of RE/MAX California/Hawaii. And, Diana Fredericks was promoted to Vice President of Franchise Sales and will oversee all RE/MAX Franchise Sales Consultants in the U.S. COR Regions.

For more information about RE/MAX, to learn more about franchise opportunities or to find a professional real estate agent, visit this link.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865

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Margaret Kelly, CEO of RE/MAX International, has been named to the board of the Denver branch of the Federal Reserve.

Margaret Kelly, Chief Executive Officer for Denver-based RE/MAX International, Inc., has been named to the Board of Directors, Federal Reserve Bank of Kansas City-Denver Branch. She is joining six other board members in working with the reserve Bank, lending her insight and expertise on the regional economic front.

“It’s a great honor and privilege to serve on the Denver Board,” Kelly said after attending her first board meeting. “I’m very impressed with the dedication and careful consideration all the board members bring to their position, and I’m looking forward to being a contributor in the future.”

Kelly was chosen for her  knowledge and experience in real estate, and her “on-the-ground” skills. She will bring her familiarity of housing issues and challenges to the board, as well as her reputation as a well-respected industry leader. As a member of the board, she will provide real time housing information and advise the bank on economic policies.

Kelly has also just been recognized by Inman News as one of the Top 100 Most Influential Real Estate Leaders in 2009, and was named one of Real Estate’s 25 Most Influential Thought Leaders by REALTOR magazine. Kelly is a popular source of insight on real estate trends, and speaks before industry groups around the United States and is frequently interviewed by the media.

Kelly became Chief Executive Officer of RE/MAX International in October 2005, capping a series of leadership positions she has held since joining the organization as a Financial Analyst in 1987.   Kelly rose rapidly through the ranks of the Membership Services and Regional Services departments, being named vice president in 1992 and president in 2002. Today, she oversees the worldwide operations of RE/MAX International.

The Federal Reserve Bank of Kansas City is the 10th of 12 districts in the Federal Reserve System, and provides services to financial institutions and the public. The Denver Branch is one of three branches of the Federal Reserve Bank of Kansas City, and covers the states of Colorado, Wyoming and northern New Mexico.

Each branch has its own board, and has seven members, four of whom are appointed by the Kansas City Board of Directors, the remaining three by the Board of Governors of the Federal Reserve System in Washington, D.C.

Kelly was appointed to serve the remainder of a three year term that expires in December of 2010. Each member of the board is allowed to complete two three year terms. She joins  directors as: Bruce K. Alexander, president and CEO of Vectra Bank, Colorado, Charles J. Brown III, president of C.H. Brown Company, and Anne Haines-Yatskowitz, president and CEO of ACCION.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865

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The RE/MAX International headquarters in the Denver Tech Center is in the top 4% of office buildings for energy efficiency.

For the second consecutive years, the RE/MAX International headquarters building in the Denver Tech Center has earned the prestigious Energy Star award.

The 14-story building with about 235,000-square-feet  at 5075 S. Syracuse St.,  also was  recognized as being among the top 4 percent in the nation for energy efficiency. The Energy Star is presented annually by the U. S. Environmental Protection Agency, and only those buildings that pass rigorous efficiency tests are acknowledged.

“Earning the Energy Star rating for two years running shows how committed RE/MAX is to the environment,” says Mike Reagan, RE/MAX International Senior Vice President of Brand Marketing and Commercial Development. “Energy efficiency not only saves money, but also prevents the release of greenhouse gases and protects the environment.”

Commercial buildings that earn the Energy Star use an average of 35 percent less energy than typical buildings and also release 35 percent less carbon dioxide. RE/MAX improved its energy performance over the past year by strategically managing energy, and by making cost-effective improvements.

The building’s heating and cooling systems are on timers, and shut down during non-working hours. There are sensors in several public areas that monitor movement and regulate lighting. There are water conservation devices in every restroom, and employees are encouraged to recycle and conserve resources. The RE/MAX building is one of less than 70 office buildings in the state of Colorado that have earned the Energy Star award.

And because energy efficiency and “green” living are becoming more and more important to home buyers and sellers, the dedication to conservation extends to RE/MAX offices all across the country through the RE/MAX Green program. The program encourages all RE/MAX Associates to get the training they need to assist buyers and sellers in finding or renovating homes that are energy-efficient and environmentally friendly.

The National Association of Realtors® projects that “green” building could soon make up 25 percent of all new construction nationwide.

The RE/MAX Green program was created to help consumers utilize the agent’s knowledge in a world that increasingly values eco-responsibility. Consumers see going “green” as the starting point to explore sustainable communities, and improve quality of life.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865

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This is a move that Liniger and other RE/MAX executives have been promoting in Washington, D.C. for the past year.

Short sales, when a lender accepts the sale of a home at a price below the actual amount owed , increasingly are being considered by distressed homeowners as an alternative to more costly foreclosures.

Liniger has promoted a streamlined short sale process since foreclosures began flooding the market and has presented specific proposals to government officials. In the last year he made numerous trips to Washington, D.C. to encourage policies that facilitate short sale transactions.

Liniger believes that a streamlined short sale process would help many families avoid the trauma of foreclosure and help the housing market remain on the road to recovery.

“Short sales are absolutely critical as more and more people continue to face foreclosure and as our housing market struggles to recover,” said Liniger, who’s closing out a 28-city, cross-country speaking tour encouraging thousands of agents to become educated on the short sale process.

“While not all of our recommended changes were implemented,” Liniger said, “the Treasury’s new guidelines go a long way in incentivizing both lenders and homeowners to work together to keep homes from falling into foreclosure.”

Until now, the shorts sale process has been cumbersome for all involved and took upwards of eight to ten months for a transaction to close, he said.

But through the Foreclosure Alternatives Program and the new guidelines issued this week, short sale transactions will increase dramatically, which means less vacant and vandalized properties in neighborhoods across the country, Liniger contends.

He said the new guidelines enhance the short sale process in several ways:

· Speeds up the process – Mortgage servicers have 10 days to say yes or no to a short sale request, and after the transaction is complete, the borrower could be completely released from debt.

· Provides financial incentives – Borrowers are eligible to receive a $1,500 moving allowance if they sell their home through a short sale, and mortgage-servicing companies will in turn receive $1,000 for every completed short sale transaction.

· Limits Proceeds to second lien holders – Second mortgage holders can only receive up to $3,000 of the sales proceeds to release their liens and investors who hold the first mortgages can collect up to $1,000 for allowing such payoffs.

The program also facilitates the transfer of ownership by a borrower through a “deed in lieu of foreclosure,” another helpful alternative to assist home owners forego a foreclosure.

RE/MAX Associates are among the most versed in the industry in Short Sales and foreclosures, Liniger said. RE/MAX agents account for 58 percent of all the brokers with  Certified Distressed Property Exper designations in the U.S., he said.  RE/MAX continues to provide information to homeowners on Short sales through videos, articles and other resources available at this link.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

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To that end, more than 40 RE/MAX International employees on Wednesday will participate in the annual Children’s Miracle Network Torch Run. The 5K run starts at 9 a.m. at the Marriott Tech Center  parking lot and weaves through the Denver Technological Center, where RE/MAX International has its headquarters. The entry fee is $15. Register at www.torch-relay.org.

RE/MAX has partnered with the Children’s Miracle Network since 1992, and last year, RE/MAX real estate agents raised more than $8 million for the charity, despite the current real estate market.

“Our agents make Children’s Miracle Network a priority, no matter the state of the economy,” says Mike Reagan, RE/MAX Senior Vice President of Brand Marketing. “There are millions of kids with health challenges who benefit from the Network, and we’re dedicated to helping them.”

RE/MAX International is the official real estate sponsor of Children’s Miracle Network, and offers many options for real estate agents to become involved with the charity.

Through The Miracle Home® program, exclusive to RE/MAX, Sales Associates are able to donate a portion of every transaction to Children’s Miracle Network. Each year, these donations made by RE/MAX Associates across North America directly help children in need by supporting hospitals in the Children’s Miracle Network.

Ten-year-old Tess Clark, who’s spent most of her life in and out of Denver’s Children’s Hospital, will be the guest of honor at the Denver Torch Run event on Wednesday.

Tess has had 39 surgeries in her short life, but through the assistance of Children’s Miracle Network, she’s survived and thrived. She may be the only ten year old who can boast that she’s met both President Obama and Miss America.

As with all Children’s Miracle Network events, the money raised in each of the nearly 40 torch runs in the United States this year will stay in the local communities to assist children and families in need.

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RE/MAX, based in the Denver Tech Center, is working with HEART Financial Services of Northbrook, Ill. to create a pre-foreclosure or short-sale strategy that they hope will make it easier for families to sell their homes and avoid the trauma of a foreclosure.

“It’s unfortunate that the short s\ale process has been so difficult to navigate in this marketplace,” said Dave Liniger, Chairman and Co-Founder of RE/MAX International. “We’ve been working hard to promote streamlined short sales to provide both significant benefits to lenders, and a welcomed opportunity for homeowners to get a fresh start.”

At-risk homeowners who do not qualify for a loan modification will now have a viable alternative, and will not be forced into foreclosure.. Lenders that offer loan modifications to their at-risk borrowers will be invited to participate in this new short sale program.

Trained customer service representatives will provide detailed short sale information to all homeowners who cannot obtain a loan modification or do not wish to retain their property.

If a homeowner believes that a short sale might be appropriate, they are directed to a secure Internet Website where they can obtain more information, and select a real estate agent in their community who has received comprehensive training on the shortsale process. RE/MAX has designed this online database to assist homeowners with short sale information and easy agent referrals, and will use the closing management services Integrated Asset Services of Denver.

“It’s been our experience that many homeowners aren’t even aware that Short Sales are a reasonable alternative to foreclosure,” says Jerry Alt, President and Chief Executive Officer of HEART Financial Services. “Each month we speak with thousands of homeowners who can’t qualify for or don’t want a loan modification. For the most part, when we refer them back to the servicer for a potential short sale, we lose the opportunity to help the borrower while we have them on the phone. Now, we can offer these homeowners some hope and a more efficient process to list and sell their home.”

The number of homeowners who could rely upon a short sale may be in the millions. According to RealtyTrac.com, July, August and September had the highest foreclosure numbers on record and some analysts  say there is a “shadow” inventory of foreclosed properties as high as 7 million, which could start hitting the market in a few months. Earlier, InsideRealEstateNews.com reported that the shadow market could increase the Denver-area supply of unsold homes by 78 percent.

Out of all the applications reviewed for a loan modification, less than 50% are successful. And a high percentage of successful loan modifications eventually re-default.

“We have been talking to numerous industry leaders, legislators and Administration officials trying to draw attention to the Short Sale situation,” says Liniger. “It’s just not possible for the housing market to recover fully until the inventory of foreclosed properties is significantly reduced, and short sales offers one practical way to help do this.”

There are over 11,000 real estate agents in the United States who have received the Certified Distressed Property Expert professional designation. More than  60% of those are affiliated with RE/MAX. In addition, the National Association of REALTORS  also offers a similar Short Sale, Foreclosure and REO (SFR) designation. Agents who have received special Short Sale training like these designations could be selected to participate in this new short sale program.

Short sales can occur when a lender agrees to accept a sales price for a home that is lower than what the homeowner owes on the mortgage. The short sale transaction is more complicated than the average real estate sale and consumers are urged to deal with agents who have specific training in the process.

HEART Financial Services will begin offering the newly developed short sale process to the loan modification applicants of their clients within the next few weeks.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

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RE/MAX, founded by Dave and Gail Liniger in Denver in 1973, was ranked No. 12 in the Franchise Times Top 200 list. It ranked above all other real estate competitors,putting it in the company of household names such as   McDonald’s, 7-Eleven and Marriott Hotels.

“The RE/MAX Network continues to grow because we offer so much value to our franchise owners,” says Margaret Kelly, CEO of RE/MAX International. “Global brand recognition, the industry’s most extensive educational resources, and all the support our offices need to be productive and successful. We like to tell our owners, that at RE/MAX, you’re in business for yourself, but not by yourself.”

Franchise Times, a trade publication, said that RE/MAX had $7,500 million in worldwide sales, 3,745 domestic units, 2,807 for a total of 6,522 units and is 100 percent franchised. McDonald’s, the No. 1 franchise, had $70,693 million in worldwide sales; 13,918 domestic units, 18,049 international units, for a total of 31,967 units. Eighty percent of the McDonald’s are franchised.

The nearest real estate competitor to RE/MAX was Coldwell Banker, which came in at 17.

RE/MAX as ranked as being larger than Taco Bell, Blockbuster, Holiday Inn Hotels & Resorts, Sheraton, Dunkin’ Donuts, and Domino’s Pizza.

Since the beginning of 2009, nine countries have joined the RE/MAX Network and RE/MAX International has sold nearly 400 franchises worldwide. RE/MAX has an international presence in more than 70 countries, more than any of its competitors.

The Franchise Times honor is the second time this year that RE/MAX has been recognized in the franchise community. In January, RE/MAX was the highest ranked real estate franchise in Entrepreneur Magazine’s 30th Annual “Franchise 500 Survey,” a tribute the company has received in nine out of the last ten years.

RE/MAX has also been recognized as one of the “Top 25 Franchise Opportunities” by Hispanic Enterprise, and one of the “Top 50 Franchises for Minorities” by the National Minority Franchising Initiative.

And, in 2009, for the third year in a row, RE/MAX was ranked on the list of America’s “Top 10 Military Spouse-Friendly Employers,” according to Military Spouse Magazine.

The Franchise Times Top 200 is an annual financial snapshot of the 200 most successful U.S.-based franchise companies as measured by worldwide sales. The complete list of honorees appears in the October issue of Franchise Times.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

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