Evelyn Ranone is a Rhode Island real estate agent specializing in sales of distressed or bank-owned properties. The economy has kept Ranone busy, and she is in the beginning stages of opening her own real estate firm in the Ocean State. She recently took some time to discuss with Providence Business News the distressed part of the real estate market.
PBN: RealtyTrac recently reported that foreclosures in Rhode Island fell 23 percent in 2009 compared with a year earlier. Do you view this as the start of a trend or just a blip?
RANONE: It has been previously discussed on numerous occasions that there has been an obvious decline on the number of foreclosed homes between 2008 and 2009. However, whether it can be categorized as a blip or a trend could be controversial. The restrictions put on many mortgage holders in 2009 in order to help those homeowners who were at risk of a foreclosure has had a tremendous impact on the variation of numbers you see between these years.
Becoming overwhelmed with the increased amount of foreclosures has also hindered the mortgage holders’ process. The inability of mortgage holders to handle the amount of defaults as well as the restrictions and policies being implemented by the government is now being seen as a decrease in the amount of foreclosures, which is a good sign for the government. However, what remains to be seen are the foreclosures that have yet to be processed.
PBN: What do you see happening in other parts of the distressed market, such as short sales, as Rhode Island experiences a troubled economy?
RANONE: Because of the increased number of people finding themselves faced with a possible foreclosure, many mortgage holders are now viewing short sales as a positive solution to the problem. Unfortunately, this has not been the frequently used method of dealing with defaulted or soon to be defaulted loans for many mortgage holders. They are not prepared for the overwhelming demand for processing these short sales, which has led to a frustration with the homeowners as well as the real estate agents try to assist with the sale of the home. As mortgage holders trying to implement new procedures for processing short sales, we will continue to see homes being sold this way.
The other option for sellers before they begin to default or after they have defaulted is to file for a loan modification. This process can take some time as well, but can eliminate the need to sell one’s home.
PBN: Does it matter that 17.5 percent of homes in the Providence-New Bedford-Fall River area are underwater and why or why not?
RANONE: The fact that 17.5 percent of the homes in Providence, Fall River and New Bedford are underwater is a sign of the continued instability in the housing market. The important questions to ask are, “what are banks going to do, will they try to give loan modifications, accept short sales or put the defaulted loans into foreclosure?”
A positive move on the part of U.S. Department of Housing and Urban Development (HUD) was to lift 90-day waiting restrictions on properties bought in foreclosures. Investors are now able to fix these foreclosures and sell them to homebuyers, nevertheless however, with certain restrictions. This will help homebuyers who cannot afford to fix up a property but would like to buy it at a reasonable price.
PBN: I understand you speak Spanish. Has that been important as foreclosures in Rhode Island hit Spanish-speaking communities?
RANONE: Being a Spanish speaking Realtor has helped me immensely. Because of the demographics of Rhode Island, my Spanish speaking abilities have come in handy. I am able to better understand the various circumstances of each household and explain the various options that are available. Understanding the cultures of the customers and clients you have is imperative, seeing how it can create a long-lasting relationship.
PBN: You are planning to open your own real estate firm? Why pursue that in this market?
RANONE: As a licensed, female, minority broker, I can become successful in this market because of the opportunities that I can obtain with various government agencies as well as my ability to relate to those in the housing market who are looking for someone who is efficient, effective and looking out for the client’s best interests.
