Breaking News: Brookfield Residential Property Services Buys Prudential Real Estate and Relocation Services

In late-breaking news Tuesday Brookfield Residential Property Services, a Brookfield Asset Management Inc. affiliate, announced that it has purchased Prudential Real Estate and Relocation Services (PRERS), a recognized leader in employee relocation and real estate franchising from Prudential Financial, Inc. Prudential Relocation Services operates as Pricoa Relocation in Asia and Europe.

The addition of PRERS to Brookfield’s existing residential real estate franchising and employee relocation services businesses establishes Brookfield as the world’s second largest employee relocation services provider and the third largest residential real estate franchising business, the company announced.

Under a licensing agreement, Prudential Real Estate brokerage affiliates will be able to continue to use the Prudential brand based on the terms of their franchise agreements.

“This transaction creates a global employee relocation services and real estate franchising leader,” said Graham Badun, CEO, Brookfield Residential Property Services. “We have now increased the breadth and depth of our service offering, keeping pace with the evolving needs of our clients around the world.”

A North American & Global Leader

Through its various brands, Brookfield’s residential real estate franchisees are now present in all 50 U.S. states, 10 Canadian provinces, Mexico and Portugal, with a network of approximately 80,000 real estate agents, 2,800 real estate brokerage locations and more than $150 billion in annual residential real estate transactions.

U.S.-based Brookfield Global Relocation Services moves nearly 85,000 families in and out of over 125 countries around the world each year. With the acquisition, more than one third of Fortune 100 companies are its clients. In addition, Brookfield is now the largest provider of relocation services to government, with long term relationships with the U.S. and Canadian governments.

The acquisition greatly strengthens Brookfield’s existing U.S. business and results in the expansion of its operations in nine countries, with a rapidly growing presence in China, Brazil and India.

“Today, Prudential’s real estate and relocation services businesses join a global company with a track record of over 100 years of success,” said Earl Lee, President of Prudential Real Estate and Relocation Services. “We’re excited to become part of a company that is focused on and deeply immersed in the real estate sector and is in the business for the long?term.”

Earl Lee will continue to lead the U.S. real estate business, and Rick Schwartz, President, Brookfield Global Relocation Services, will assume responsibility for the combined global relocation services business.

Brookfield’s parent company, Brookfield Asset Management, is a global asset manager with approximately $150 billion in assets under management. Brookfield is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and on NYSE Euronext under the symbol BAMA.

Company Info: About Brookfield Residential Property Services

Brookfield Residential Property Services is a leading global provider of real estate and relocation services, analytics and knowledge. The company’s portfolio consists of leading brands, including Brookfield Global Relocation Services, the second largest provider of global relocation services, Prudential Real Estate and Relocation Services, Brookfield Real Estate Services, Royal LePage, Real Living, Via Capitale and Centract. Through its real estate brands, it has nearly 80,000 real estate professionals in more than 2,800 locations, who transact over $150 billion annually. Its global footprint spans North America, the United Kingdom, France, China, Singapore, India, Brazil and Australia, and includes more than 2,500 employees worldwide. It is a division of Brookfield Asset Management, a global asset manager with approximately $150 billion of assets under management.

Avoiding foreclosure through a short sale can have significant benefits for a person’s future financial stability,” said Marc Cormier, a Real Estate Consultant and Certified Distressed Property Expert, Divorce Real Estate Specialist and Seniors Real Estate Specialist. “A successful short sale can reduce the damage to one’s future loan eligibility, credit rating, employment, security clearance and more—and it’s important to work with a competent team.”

According to global ratings agency Fitch Inc. and Managing Director Diane Pendley industry experts are expecting to witness more short sales and fewer foreclosures in 2011, an encouraging sign for homeowners in the D.C. Metro, northern Virginia and Maryland regions as well as those seeking alternatives to foreclosure. A short sale, or a sale in which a property is sold for less than what is owed on the mortgage, can be an effective alternative to foreclosure while allowing homeowners to escape the burden of bankruptcy. The Tania Ivey Real Estate Group, which services Northern Virginia, Maryland and Washington, D.C., offers a number of Certified Distressed Property Experts (CDPE) to advise clients in the short sale process. Home sellers in specific areas such as Fairfax County VA, or Loudoun County VA are seeing the number of Short sales increase. If you are a homeowner in Leesburg VA or Ashburn VA trying to sell your house you are competing with numerous Short Sales. Even areas such as Great Falls VA and Vienna VA are seeing a major part of the market being short sold. The Tania Ivey Real Estate Group, closes more short sales in a single month than most agents complete in their entire career, offers additional help for homeowners at http://www.Help34.com. Homeowners are able to receive a number of Free Reports regarding Short Sales and the impact they will have on the homeowner along with reports telling the truth regarding loan modifications and why they are so difficult.

“Avoiding foreclosure through a short sale can have significant benefits for a person’s future financial stability,” said Marc Cormier, a Real Estate Consultant and Certified Distressed Property Expert, Divorce Real Estate Specialist and Seniors Real Estate Specialist. “A successful short sale can reduce the damage to one’s future loan eligibility, credit rating, employment, security clearance and more—and it’s important to work with a competent team.”

With millions of Americans struggling to make overwhelming mortgage payments, engaging a CDPE can help a homeowner to better navigate the short sale process. CDPEs complete specialized training in short sales and foreclosure prevention and are well-versed on the importance of writing an offer than not only the seller—but the bank—will accept.

“When you’re pushed to foreclosure, it’s important to know your options,” said Cormier, whose business was up 48.3% in 2010. “I close more short sales in a single month than most agents sell in their entire career—it’s my goal to put my clients back on the path to financial stability and restore their hope for the future.”

Could it be true … that we are now entering into a seller’s market! I know this sounds ridiculous given the large amount of foreclosures and short sales, but I ask you? How do you define a Seller’s Market?

Let me share with you my description of a Seller’s Market. When buyer’s are competing with multiple offers and seller’s are receiving offers above listing price, would that define a seller’s market?

In Arizona this scenario is unfolding today. If you are buying a home under $250,000 you may be experiencing what feels like a seller’s market.

With record low interest rates combined with the large decrease in values who would even think it could be a seller’s market, but all the indicators are there. I can hear it now, “Well we are at 40 to 50% of our values.” Well tell that to my first time buyer who has been out bid on 5 homes. Or my Midwest client who now understands what I mean by “This is one crazy market.” They were shocked that their well qualified offer was turned down because the seller wanted cash, forcing them to make offers on short sale listings.

This maybe a very good sign that the market may have reached it’s bottom. Of course we still have the “gorilla” in the room and no one can tell what he weighs!

Gary May
Owner / Broker
Real Living Success

By July 1, 2010 all mortgage service providers participating in the Making Home Affordable Program will offer extra help for homeowners struggling to make their monthly mortgage payments because of unemployment. The Unemployment Program will offer homeowners a forbearance period to temporarily reduce or suspend their monthly mortgage payments while they seek re-employment.

The minimum forbearance period is three months, although a mortgage service provider may extend it depending on the investor and regulator guidelines. If a homeowner becomes re-employed in that time, the forbearance period will end and the homeowner will be evaluated for a mortgage modification under the Making Home Affordable Program. Unemployment benefits will no longer qualify as income for the mortgage modification program.

During the forbearance period, a homeowner’s monthly mortgage payment must be reduced to no more than 31 percent (or less) of their gross monthly income. The service provider can decide to temporarily suspend payments in full. The payment amount and due dates will be decided by the service provider depending on investor and regulator guidelines.

To qualify, a homeowner must meet the following eligibility criteria:

• The mortgage must be a first lien mortgage, originated on or before January 1, 2009, and the unpaid principal balance must be equal to or less than $729,750 for a one-unit property.
• The property must be the homeowner’s principal residence.
• The mortgage has not been previously modified through a Home Affordable Modification.
• The homeowner was ineligible for a Home Affordable Modification.
• The homeowner is either behind on payments (but not by more than three consecutive months) or it is reasonably foreseeable that the homeowner will fall behind.
• The total monthly mortgage payment is greater than 31 percent of the homeowner’s gross monthly income. If the payment is less, it is up to the service provider’s discretion if they will offer the program to the homeowner.
• The homeowner will be unemployed at the start of the forbearance period, and is able to document this because they will be receiving unemployment benefits in the month the forbearance period begins (even if the benefits expire before the forbearance period ends).

A mortgage service provider may require that, based on investor and regulator guidelines, homeowners have received at least three months of unemployment benefits before they begin a forbearance period.

There is no cost to apply to the Unemployment Program, although late charges may accrue while the homeowner is being evaluated for the program or in the program. A mortgage service may not collect late charges from the homeowner while they are still in the forbearance period.

Services may not initiate foreclosure proceedings or conduct a foreclosure sale while a homeowner is being evaluated for the Unemployment Program or in the forbearance period.
To determine if you qualify for the Unemployment Program, contact your mortgage sservice provider. You should learn your eligibility within ten days of submitting complete documentation to your service.
If you have any questions after speaking with your service provider, or need assistance applying to the program, call 1-888-995-HOPE (4673) to speak with a HUD-approved housing counselor for free.

www.makinghomeafforable.gov

Millions of U.S. families face health and safety hazards like mold, lead, pest infestation and the physical deterioration of their homes.  These problems are particularly common among some of the nation’s most vulnerable populations:  children, seniors, the disabled and low-income families.

To address these widespread issues, the U.S. Department of Housing and Urban Development (HUD), the U.S. Centers for Disease Control and Prevention, the U.S. Environmental Protection Agency, U.S. Department of Energy and the U.S. Department of Agriculture will host more than 3,000 national health and safety experts in Denver from June 20 – 23 at the National Healthy Homes Conference (NHHC).   Under the theme, Leading the Nation to Healthy Homes, Families and Communities, this is the most comprehensive forum ever held on the issue.

“It’s time that we move from talk to action,” said HUD Secretary Shaun Donovan.  “Our goal is to ensure that every home is designed, built, rehabbed and maintained in a manner that protects the health and safety of American families.  This conference encourages the exchange of critical information and present innovative approaches and solutions to reduce home-related hazards.”

The Conference will feature more than 150 educational sessions and workshops, allowing officials from the public health, housing, safety and environmental communities to collaborate and share ideas.  Presentations will be made by representatives of more than 200 organizations, such as Habitat for Humanity, American Lung Association, National Center for Healthy Housing, AARP, National Association of Homebuilders and the Harvard School of Public Health.

“Building a Healthy Neighborhood” Volunteer Event Kicks-Off Conference Activities June 18-19

One of the highlights of NHHC takes place prior to the official start, when HUD and Rebuilding Together rehabilitate 25 homes in a Denver neighborhood on June 18 and 19.  The event, called Building a Healthy Neighborhood, will bring together more than 300 volunteers to make the homes of local families safer and healthier.  Volunteers may register at www.healthyhomesconference.org.

www.hud.gov

The U.S. Department of Housing and Urban Development today is awarding $7.8 million in grants to 14 local projects in nine states to conduct a wide range of activities such as research on the cost effectiveness of home-based interventions for children with asthma and novel strategies for reducing risks from lead-contaminated soil and house dust (see attached). For the first time, HUD is awarding $2 million of those grants to improve indoor environmental conditions and links to education and medical services for asthmatic children and other residents living in public and assisted multifamily housing.

Lead is a known toxin that can impair children’s development and have effects lasting into adulthood.  It’s estimated that asthma alone costs the U.S. economy approximately $3.5 billion each year. Approximately 16.4 million Americans currently have asthma, including nearly 7 million children 18 years of age and younger.

“Homes with lead or other health hazards can injure children and worsen conditions such as asthma and HUD wants to ensure that children have a healthy place to call home,” said Jon Gant, Director of HUD’s Office of Healthy Homes and Lead Hazard Control. “These grants will not only help to clean up lead and other home health hazards but will support the development of innovative new approaches to improve and control asthma in children.”

The following is a breakdown of the funding announced today:

Even though lead-based paint was banned for use in the home in 1978, HUD estimates that approximately 24 million homes still have significant lead-based paint hazards today.  Lead-contaminated dust is the primary cause of lead exposure and can lead to a variety of health problems in young children, including reduced IQ, learning disabilities, developmental delays, reduced height, and impaired hearing.  At higher levels, lead can damage a child’s kidneys and central nervous system and cause anemia, coma, convulsions and even death.However, lead is not the only danger threatening families and children in the home.  Asthma is now recognized as a leading cause of school and work absences, emergency room visits, and hospitalizations that disproportionately impacts low income, minority populations.

The following is a state-by-state breakdown of the funding announced today:

Grant program abbreviations are as follows:

AIPAMH – Asthma Interventions in Public and Assisted Multifamily Housing
HHTS – Healthy Homes Technical Studies
LTS – Lead Technical Studies

www.hud.gov