I have to point out however that a basic tenet of a short sale is that the consumer is TYPICALLY 3 months behind, often recommended by the lender AND/OR the realtor/loan modification consultant, creating a loan that is no longer PERFORMING, which thereby accelerates countless advances, accrued interest, and a severe drain on cash flow to the lender.
Secondly, if an insurance company (MI) is covering the loss, than I do understand why a bank would choose NOT to approve a short sale. As industry professionals, while we may not like this, we must understand that each short sale transaction today is as unique as a human fingerprint.
What say you? Do you like to finance short sales? Even handle them?
Lenders make more money on foreclosures than from short sales or loan modifications. That's what Steve Harney conveyed in a seminar. He caused an earthquakein San Francisco
When loan modifications are turned down, the next thing we attempt is a short sale. And we know that lenders turn over the short sale accounts to loan servicing companies who make our lives hell getting short sales approved. As such, we should know that these loan servicing companies make MORE money by letting the properties foreclose than to approve the short sales OR the loan modification.
RUMBLE...GRUMBLE...CRIES OF DISMAY!
Did he just confirm what we were afraid of?
So I researched this topic and found a few articles worth reviewing. How did I miss these? Was I under a rock in a desert?
I guess over the years, you can say that you've seen it all, heard it all, and dealt with almost every situation in the book, or so I thought..............
Needless to say, emotions are running high these days between buyers, sellers, realtors, lenders, and every other interested party, including the media. As it relates to the lending side, now more than ever, it is critical that residential purchase agreements along with all counteroffers and addendums are properly disclosed to all parties to avoid any possible concerns in the middle of a transaction. If you have a verbal agreement of any sort, between any parties, it is your professional responsibility to CYA (cover your a**) by putting it in writing. Failure to do so will only annoy you and ultimately piss everyone else off.
To that end, I had the pleasure of receiving this purchase from a friend of mine who could've easily written the loan for a $1.5 million purchase for a high level executive that spends a fair amount of time traveling internationally. However, since the sale had been negotiated during the holiday season, with the final agreements in place around the 4th of January, you can imagine the need to be completely organized if we were to close by the anticipated close of escrow date on January 24th. He simply admitted that as a broker, he could not reasonably assure everyone that he could close on time.
On the 6th of January when I received all of the fully executed agreements and addenda, an appraisal was ordered with the expectation that it would be received by the 15th of the month.
By the 9th, calls were coming in from the listing agent, along with their escrow company, to determine if we would be closing by the 15th.
Given that everything in writing showed a closing on or before the 25th, I wondered where this earlier date came from.
Apparently, all of the interested parties had agreed that they would ATTEMPT to close as early as possible.
First of all, in the current lending environment, an ATTEMPT is just that. It is not a guarantee, implicit or otherwise that this transaction would close by then. Again, on or before a certain date, does not allow a listing agent to unilaterally determine that their own desire to close early MUST be accommodated.
As it is, real estate is such an emotional business, particularly for the buyer and seller. The professionals however, need to be empathetic, but more than anything, provide the buyers and sellers with accurate information, not opinion and conjecture. Failing to do this is completely irresponsible.
Herein, the buyer is thoroughly excited that they have found the home of their dreams. They are getting quotes for the work they want done to the home. Being threatened that their $50K deposit is at risk, as well as possibly losing the home altogether, is not only grossly unfair and unprofessional, but completely unnecessary by simply reviewing the terms of the contract. It is completely understood that the negotiation process took weeks, but the contract terms start with a fully executed contract NOT when discussions began.
The buyers agent is doing a great job communicating with all of the parties. Though she knows her buyer is protected, nevertheless she has to keep them informed as to the threats that are being communicated from the seller (or in my opinion, her agent who incorrectly advised the seller).
The listing agent is making it clear that a notice to perform will be sent to me. Last I checked, that is a conversation between realtors, not between listing agent and buyers lender. Oh, and this is an experienced agent, not a rookie. Could the $42K commission be clouding judgement here?
Regardless of the underlying reasons, a CONTRACT is a CONTRACT. As a lender, I will uphold the terms of that contract. I will uphold my duty to close on time, every time, unless I am somehow not apprised of what is expected of me. Again, guess what? My expectations come from the contract....if I see something that is somehow questionable or contradictory, I will seek clarification.
Instructing my office, my staff, and my processing team to hurry by constantly calling and emailing is not going to magically change that somewhere along the line it appears the listing agent screwed up by not agreeing to a closing date of the 15th and/or they incorrectly instructed the seller to be ready to move by the 15th.
Assuming that there were a legitimate question about the closing date, why threaten canceling the transaction over 10 days? I'm looking for a legitimate cause of wanting to risk a sure closing on a $1.5 million purchase for the possibility of someone else making an offer? I can't seem to find it even a few weeks after closing. Was there a cash offer on the table? Even so, such a conversation cannot and shouldnt be had until there is a real possibility that the current transaction may not close for some legitimate reason.
My point is that this sort of behavior only illustrates the desperation, as well as lack of professionalism in the industry. It is tantamount to the same pressures that irresponsible lenders partook in by trying to coerce appraisers to deliver an unsupported value.
What does this type of behavior reinforce to the buyer? Though we closed 2 days earlier than contract, they were a genuine bundle of nerves over the $50K deposit, but more importantly, over possibly losing the house.
What does this type of behavior say to the seller who was incorrectly advised about when they could move? Would they be able to close on their other home if this one somehow didnt close? Were they willing to take this risk as the listing agent failed to correctly inform them?
I can say this much.....I have an ecstatic buyer, and a very happy buyers agent. The inhouse escrow company provided me with 4 additional similar deals that needed to be saved from other ineffective or unscrupulous lenders (separate blog there). The buyers agent asked me to refinance her primary residence, as well as 2 of her 3 rentals (the 3rd one had a great loan).
The listing agent apologized for his behavior, pawning it off on nervous sellers. I don't believe it, but I accepted his apology, though I would never work with the inidividual in the future.
Your lender should be a trusted team mate designed to collaborate with all of the involved parties. That does not mean however, that we can be bullied. We're here to help make dreams come true.
Are you?
P.S. The property appraised close to $200K over purchase price.....Karma is a wonderful thing!
I found this ad copy on the back cover of this month's Money Magazine.....
It strikes me as a tad bit disingenous, and out of touch...........................
AIG--The Strength to Be There (as Dr. Phil would say...How's that working for ya?)
Ad copy:
No problem--got em right where we want them. We've been in tougher james than this. Their defense looks tired. Now we have the ball. This will be one sweet comeback.
It almost sounds like Ohio State in their 35-3 loss to USC last weekend as they made their comeback.
Optimism can add 8 years to your life.
What happens when the government takes you over? Does that take away 15 years?
So go ahead, live longer. When you prepare for retirement with AIG, we'll be there wherever and whenever you need us. We've helped over 5 million people retire stronger. Ask your financial advisor about AIG or visit retirestronger.com.
and in big bold letters:
Live Longer Retire Stronger
Never Outlive Your Money
Wow....guess that corporate vision didn't quite work out.
It has been several months since I've had the opportunity to post. My mother taught me that if you can't say anything nice, then don't say anything at all.......
Mom...I apologize in advance for ignoring your wisdom.
I can't resist any further; and NO, I will not tell you what WTF means....I can't tell you everything.
This industry that I'm in is coming apart at the seams. You know that while I've always been wise about my investments, as well as the movements I made throughout my career, none has affected me as negatively as my days at WaMu. I spent the most painful year at my life at that institution as the leadership under Kerry Killinger concentrated on what I felt was the riskiest program for the everyday consumer; the Option ARM that allowed you to add to your mortgage balance under the assumption that values would continue to increase until the end of time. Realtors, Mortgage Brokers, and the whole world preached that it would be 'easy enough to get out of'. Well, let's say that didn't quite worked out the way it was promisted. It allowed me to see an opportunity that reminded me of your career in the aerospace industry that in many ways became the impetus and basis of my book, Finding Foreclosures, by Entrepreneur Press.
You taught me to live within my means, manage my credit, and purchase real estate, while always working on continuing education as a way of staying ahead of others.
I have not amounted to being the CEO of a major bank such as Washington Mutual, but I have to wonder if wouldn't have done a better job, given my background.
Within 30 days of starting with that institution, I realized that the compensation plan was changed to reward everyone for pushing the most profitable products, without understanding if it made the most sense for the consumer. I care because it was the wrong thing to do.....What ever happened to tangible benefit?
Today, I read an article of which I've copied some of the pieces out.
The government's efforts to find a buyer, though, are being complicated by uncertainty about the magnitude of losses still lurking in Washington Mutual's home loan portfolio. "No one knows what's in their books," said a person briefed on the talks between regulators and banks. The person spoke Wednesday on the condition of anonymity because of the sensitivity on the matter.
Forgive me Mom, but this is total bullshit. I could repeat the things you or Grandma would say in Spanish, but then I'd really get in trouble.
As of 30 days ago, WaMu was reported as having close to 50% of their Option Arm portfolio, that was 60 days past due or more. This does NOT include the over $200M worth of home equity lines that have been frozen, closed, or also past due. That has to be in the billions of dollars in debts, not including the deferred interest that WAS recognized as income according to their accounting practices.
Do I feel sorry for the employees? Absolutely.
Yes, BUT I also know they will be far better off if JPMorgan Chase (or anyone for that matter) buys them, since they've been looking at them for years. I know at this point the government will not jump in as they have to draw a line in the sand somewhere, since you can't bail everyone out.
AIG Insurance just received an $85million injection of capital. I would take 1% of that right now. I don't know the insurance sectors financials well enough, but I know that when government steps in, it cannot be a good thing.
The lessons we've learned from this debacle in the financial sector, which includes real estate and mortgage, have made me realize how right you were all along. Wow...did I just say that? I may have not wanted to listen over the years, but I thank you for teaching me to humble and learn the lessons that an economy should not be built on constantly consuming more and more.
My behavior has already changed in the last year, as has that of my wife and kids. So let's get this over with, move WaMu and any other banking, investment, or real estate institution, into an environment where they are sold, bought out, dismantled, and forced to re-capitalize instead of making countless excuses as to why it makes sense to keep them around.
I know that my family, as well as society will be better off the faster we untangle this mess. It took years to create it; since its been close to 18 months, can we just get it over with, and get rid of the media spin, such as this other piece of the article that I saw....
After losing $6.3 billion in the past three quarters, Washington Mutual believes it is slowly healing under a new chief executive, Alan Fishman, who will receive an $8 million bonus if he can keep the nation's largest thrift alive through 2009. "I think people do know what is in our books and we've been pretty transparent," WaMu spokeswoman Olivia Riley said Wednesday, pointing to a financial update that the company released late last week. Those figures suggested WaMu's loan problems are becoming less severe compared to recent quarters, giving some analysts hope that the company can still be salvaged. Nonetheless, analysts still expect the company to sustain a loss of about $1.8 billion in the current quarter ending Sept. 30. And investors are showing little confidence in WaMu. The company's shares fell 31 cents to $2.01 Wednesday, leaving the stock price with a decline of about 85 percent decline so far this year.
Really? $6.3 billion in losses is that it?
WaMu, you've been transparent by saying that your problems are becoming less severe? Does that mean you're still going to die, but you're going to hang in there an extra couple of weeks? Spare me.........just die already. Quick and painless (unless you're an employee or a shareholder.....I digress....)
Mom, it is inevitable that I will piss someone off by writing this, but seriously, I just couldn't hold out any more. I'm tired of waking up to hear those in different parts of my industry bicker and moan that its so difficult now....or that they somehow can't make the 3 to 4 points that Wamu was used to paying the broker community, who in turn blames WaMu for allowing them to participate in such thievery since all they did is sell the product, albeit it a far higher price and margin than was necessary, but again, don't let me get off track. My little brain might explode.
When WaMu is gone, then we will have a REAL reason to go Woo Hoo!
In the interim, I just have to think.....................WTF? What have we come down to?
I always knew that the company was in some trouble, given all of the recent changes recently, but it seems like the deferred interest (neg am) loan has become the nail in their coffin.
A friend of mine on Wall Street just informed me that a huge conference call just occurred where Wamu announced that they will only handle loans through their branches, choosing to shut down all retail and wholesale lending offices at the end of this current month, April 30th, 2008.
As I receive transcripts or additional breaking news, I will let everybody know.
Bill Nazur has an extensive background in finance & mortgage lending who gets to serve as an author, speaker, and consultant to the real estate industry, as well as a featured regular guest on FoxBusiness, MSNBC, and Univision. Bill also hosts a new radio show at http://www.realcoachingradio.com/, along with a thriving (yes, its thriving, not just surviving!) mortgage business, powered at Bank of America Mortgage. Bill's experience in calling the current foreclosure crisis, along with many of the real causes, along with the taboos in dealing with such a sensitive subject, led to the publishing of Finding Foreclosures, published by Entrepreneur Press. Allow my team to help you, as we can also lend in all 50 states. While Real Estate is local, knowledge is universal. We hope to help you soon.
I've been away from Active Rain for about a month now, as I simply needed time to regroup, relax, and re-load.
While I've made the occasional visit to some wonderful blogs, along with extensive analysis related to my current book, I've had time to concentrate on my passion for the mortgage industry. Once again, I feel like I've found myself dealing with buyers and sellers alike who understand the delicate intricacies of the current marketplace.
So let's jump back in the ActiveRain fire...though I do have to say I feel like the site has lost a lot of pizzazz, but that's another post......
Seriously, if you don't understand how a declining market works, don't write commentary trying to educate others about it. The following excerpts are here on AR....
So what does this mean for the average home buyer? You might need to plan on coming to the table with 5% more of a down payment than you previously planned on if you are going with a conventional loan program. For the home buyer choosing the 100% financing program, you may now need 5% for a down payment; for the 97% home buyer, you may now need 8% down payment; and so on.
The answer is simple: you might need to work with a lender that knows what he is talking about. No doubt that 100% programs are tougher than previously, but did you know that you can still do a full doc, 80/20 loan (sometimes with income limitations) that is NOT subject to putting money down?
Know what loan program your client is going for and communicate with him early about this guideline. If the client is buying an investment home and the max loan guideline allows for 90% financing, prepare him that he may need to put 15% down to qualify. If the max allowed is 80%, prepare him for 25% down.
YES!!!! Keep spewing this ignorance, so I can finance them according to guidelines...you're making my life easier! First and foremost, the declining market concern applies only when the first mortgage exceeds 80% in the absence of secondary (or subordinate) financing.
Contrary to popular belief, the declining market box on appraisal reports does NOT affect the loan to value, or combined loan to value on a loan, unless you're working with an inferior lender/broker that does not understand the purpose of the policy, which is that we should look at property values with an abundance of caution to prevent us from running into the same valuation issues in the future, that we're dealing with today. The two things are mutually exclusive of each other.....I have 26 purchase transactions across the U.S that have been approved with as little as 5% down, all in declining markets, where we have not once asked the borrower to bring in additional money (unless they didn't qualify, or had excessive debt to income ratios. All have either closed in the last couple of weeks, or are scheduled to close by the end of March 2008.
We have a similar number coming up next week that we need to review....its better than the top of the market, when every Tom, Dick, and Harry were writing mortgages. It is a lot of fun these days as it clearly appears that the realtors who are left are the more committed ones to our industry, and are accordingly willing to adapt with us.
Even better, I've realized that we're getting deals through word of mouth from buyers, sellers, realtors, and escrow officers that know someone who is at risk of falling out of escrow, or who simply does not have the confidence that the deal will close with their current lender/broker.
If you continue doing what you've always done, while all of the conditions in the marketplace have changed so drastically, what results would you expect? Rhetorical? maybe?
Are you a frustrated realtor that is tired of losing deals? Are you a consumer in the middle of buying a property only to realize that the alleged 'lender' cannot deliver? Don't put your future in the hands of someone who lacks experience and knowledge.
Allow us to help you reach your goals, whether personal or professional. Our office funds an average $40 million per month. Can we help you?
Bill Nazur has an extensive background in finance & mortgage lending who gets to serve as an author, speaker, and consultant to the real estate industry, as well as a featured regular guest on FoxBusiness, MSNBC, and Univision. Bill also hosts a new radio show at http://www.realcoachingradio.com/, along with a thriving (yes, its thriving, not just surviving!) mortgage business, powered at Bank of America Mortgage. Bill's experience in calling the current foreclosure crisis, along with many of the real causes, along with the taboos in dealing with such a sensitive subject, led to the publishing of Finding Foreclosures, published by Entrepreneur Press. Allow my team to help you, as we can also lend in all 50 states. While Real Estate is local, knowledge is universal. We hope to help you soon.
Yes, I'm a numbers geek, and hence enjoy seeing the high level conversations that are being had by the banks along with other participants in the securities markets at the highest levels....hence, this is where Basel II comes in. For a complete explanation, go to Mike's link shown above. I will merely take two paragraphs as excerpts, and explain why they are so telling.
Excerpt #1:
19. Markets are procyclical, economic capital is procyclical and human behavior tends to be procyclical-our optimism is amplified in good times, and our pessimism is magnified in bad times. What is more important is that supervisors recognize this inherent bias towards pro-cyclicality in the financial system, ensure that banks prepare themselves in good times to meet the rigors of the bad times and do not take measures in bad times that unduly amplify the cycle. Bank managers, too, should be aware of the cyclical profile of their business activity and their risk management systems; of the difficulty of shoring up capital in recessionary phases and of the costs this entails.
My summary: By overly diluting the lending channels specifically, the broker community specifically without their own warehouse lines, and commitments to live up to, operated, managed, and executed as if it were their own reality show, "How to Screw the Pooch Customer' without any regard to accountability, and even less to ensuring that a higher percentage of profits was set aside as reserves in the case of loss. Then again, if you're not asking your clients for more than 1 months reserves, or you were foolish enough to go Stated/Stated to 100% with a history of delinquent payments, I suppose you wouldn't be thinking of the future, cause the present is so wildly spectacular!
Secondly, I specifically point to the very last sentence that speaks to the ability of shoring up capital in these recessionary phases. We all know this is why so many companies have gone out of business, and even the largest mortgage companies are being acquired and absorbed. To this end, you've only seen the tip of the iceberg. Expect mergers, acquisitions, and consolidations to continue at a fervent pace through 2009.
Excerpt #2:
21. Procyclical behavior reflects the tendency to underestimate risk in good times, and overestimate it in bad times. A capital framework which better estimates risk through an economic cycle, is less likely to suffer from under and over estimations, and hence more likely to aid in smoothening procyclical effects. Basel II encourages the appropriate use of capital buffers through the cycle. Let me emphasize here that the idea of building robustness in good times is not only a prudent policy, it is also theoretically consistent because it is in good times when exposures and therefore risks increase, while in bad times these risks materialize.
My summary: Funny, when times were great, that tide helped all ships rise. I'm paraphrasing from something Bill Roberts spoke about previously. Very true though. Think about it...as Real Estate Professionals, whether you're a Realtor, Banker, Broker, or other affiliate, you've probably weathered the current storm because you have a large portfolio of clients and referral sources, as well as being able to adapt to the times. You invested in your personal knowledge during the good times, as well as marketed during the good times, so that when things turned as quickly as they did, you were able to draw from your pool of contacts and resources, and hopefully that investment account that you created and fed during the good times. More than anything that second excerpt SCREAMS to having those risk increase during the good times, as everyone appeared to be too busy to pay attention or to even care. Do you think that the same excesses and oversights will occur in the future?
Personally, I envision an extremely different model moving forward. Brokers will need to become banks to survive. Banks will streamline their operations with technology as they will need to work on more aggressive profits to account for unrecognized losses today. Mortgage Insurance companies will go through the same consolidations that you're seeing in lending. Real Estate companies will merge with less broker/owners, and more corporate or joint venture opportunities that spread the risk amongst several parties.
It is clear that Basel II will provide excellent framework in the future. In the interim, I believe survival will govern many of the changes that will be necessary to survive in the 2008 and beyond. Oh, and if you think government is the answer, I have great connections in the travel industry. I'm more than happy to help you book a ticket to Europe, if you like socialist behaviors and want to be managed by your government. I better quit before I go off on a tangent.
Mike, thanks for an excellent piece on Basel II. Now that I've read it, I can only thank you for sharing. Expect me to write more as I dig deeper on what I expect to be the long healing of the Real Estate Industry.............
Bill Nazur has an extensive background in finance & mortgage lending who gets to serve as an author, speaker, and consultant to the real estate industry, as well as a featured regular guest on FoxBusiness, MSNBC, and Univision. Bill also hosts a new radio show at http://www.realcoachingradio.com/, along with a thriving (yes, its thriving, not just surviving!) mortgage business, powered at Bank of America Mortgage. Bill's experience in calling the current foreclosure crisis, along with many of the real causes, along with the taboos in dealing with such a sensitive subject, led to the publishing of Finding Foreclosures, published by Entrepreneur Press. Allow my team to help you, as we can also lend in all 50 states. While Real Estate is local, knowledge is universal. We hope to help you soon.
My wife had a conversation with our neighbor a couple of weeks ago, as we found out the neighbors were moving as the house was being foreclosed upon. Huh? The house next door with all the bells and whistles is going into foreclosure? We'll go back to this later in the story.
The tenants moved into the area because of the excellent school district, paid $2500 monthly rent, first and last month up front, while they saved additional money for a down payment to be able to move into the neighborhood. This was April of 2007.
Let's follow the clock backward.
Sale went through March of 2007 for $699K with 100% financing. The kids (our former neighbors) bought out their parents who were the original owners dating back to 2004 when we moved in to the new community. Oh, but the parents never lived there...it was just a paper transaction.
Essentially, nine months later, the property hasn't had any payments made, and the sheriff puts up a notice announcing the bank is foreclosing, and the current tenants have 40 days to move out from the date of the sale. This will be yet another post, as this is opening a cottage industry of tenants who lack any protections from shady homeowners going into foreclosure.
You have to wonder that something tragic must have happened to the family that purchased the home, and was never able to make the payments.
You know what happened? Two people saw an opportunity to capitalize on the business of walking away. This will be a completely separate post.
The Mortgage Debt and Forgiveness Act of 2007, HR 3648, allowed homeowners to walk away, eliminating the federal taxable liability of the loss that they would've received a 1099 for. Ahhh....bet the politicians didn't see that unintended consequence occurring, did they?
You see the former owners (Mom and Dad) bought the property in 2004 for $450K, and ‘sold it' (to the kids) for $699K in 2007. Can you say non arms-length transaction?
Or maybe, we should call it what it is? Equity stripping? You see, the kids have been in finance and mortgage for 10 and 20 years respectively. Can you imagine $249K in gross profits, less transaction costs, going to the parents (or should we call it like it is....going to the kids through the parents?). Do you think they knew what they were doing? Should I mention that they walked away from 2 homes, not just 1. Total losses to the bank? $1.3 million dollars. And this is but one of countless stories playing out across America.
Either way, I believe that we should love thy neighbor....until they show their true colors, at which time karma will deliver what they so rightfully deserve. I will not be the one to judge them, but I certainly will not be making an effort to make ourselves available for the next birthday party or special event.
I think the apple doesn't fall far from the tree, and the last thing I want is to have my kids playing with their kids. I'm funny like that.
Bill Nazur has an extensive background in finance & mortgage lending who gets to serve as an author, speaker, and consultant to the real estate industry, as well as a featured regular guest on FoxBusiness, MSNBC, and Univision. Bill also hosts a new radio show at http://www.realcoachingradio.com/, along with a thriving (yes, its thriving, not just surviving!) mortgage business, powered at Bank of America Mortgage. Bill's experience in calling the current foreclosure crisis, along with many of the real causes, along with the taboos in dealing with such a sensitive subject, led to the publishing of Finding Foreclosures, published by Entrepreneur Press. Allow my team to help you, as we can also lend in all 50 states. While Real Estate is local, knowledge is universal. We hope to help you soon.
It isn't said enough that the current market offers excellent buying opportunities across America. The barrage of reports constantly speaks to the weaknesses in this current market where real investors are buying, and contrarians such as myself are carving out a niche that relies on experience and knowledge.
Take a look at this recent spot my co-author did on the #1 business show in the nation, Your World with Neil Cavuto. We were able to look at some areas across the country that provide solid buying opportunities.
If you are considering buying, we'd recommend speaking with an experienced realtor who specializes in one of these communities. These are merely some of our choices, as we know there are several others. We will update this list at least once a month. If you are considering selling, it may make sense to discuss if now is the right time to sell, or if you should wait for an expected increase in appreciation. Maybe, you'll keep the home, and become an Accidental Landlord (new book coming soon....) Have these markets hit bottom? Based on the fundamentals, it appears so for these specific areas.
We hope you agree!
Bill Nazur has an extensive background in finance & mortgage lending who gets to serve as an author, speaker, and consultant to the real estate industry, as well as a featured regular guest on FoxBusiness, MSNBC, and Univision. Bill also hosts a new radio show at http://www.realcoachingradio.com/, along with a thriving (yes, its thriving, not just surviving!) mortgage business, powered at Bank of America Mortgage. Bill's experience in calling the current foreclosure crisis, along with many of the real causes, along with the taboos in dealing with such a sensitive subject, led to the publishing of Finding Foreclosures, published by Entrepreneur Press. Allow my team to help you, as we can also lend in all 50 states. While Real Estate is local, knowledge is universal. We hope to help you soon.
I was honored whenJeff Belonger asked me to write this review, until I realized that I was also following Tom Burris, and Sarah Eubanks, who did an excellent job on their insight into the mortgage industry for their respective weeks! I will begin by saying that there is so much talent on this website alone, that we could probably solve the current real estate environment a lot faster, and a lot cleaner than our politicians on both sides of the aisle can. At the very least, if they merely listened, we'd have a soft landing, not an all out crash and burn!
It has been an interesting week that has extended an olive branch to many borrowers across the United States who have been waiting to hear the news. I am fortunate to have access to so many great stories this week, that I hope and pray that I'm not leaving anyone out. Also, since I'm the one doing the review, I purposely chose NOT to write anything about the current week as I gathered my thoughts...expect to see something from me next week, as this week its all about YOU!
YOU ARE THE TALENT THAT DRIVES THIS MACHINE! Knowing that you are in this industry, I believe that your voices will make a difference in the world.
Janet's article talks about the potential danger of turning our real estate market into one big scrap heap of metal by regulating and controlling it through government intervention and the freezing of interest rates. You MUST read it.
Another supporter comes to the same conclusion as Janet, but Rich really shows some of the statistical and research data that Bank of America Investments did. I've seen this same study, and think that you need to really understand it. The reasons for these defaults are not what you think they are! Leave it to Rich to go there!
SPECIAL MENTION: While this story falls outside of the parameters of our coverage dates, I think it is appropriate to use, since cockroaches seem to keep making their way back as part of the survival process. Jason Sardi cuts to the chase in the creativity that is Sardi. His words were so powerful to me, that I used them in a major presentation this week as part of my speaking and consulting business to the industry. I'm a far better speaker than I am a writer, but Jason shows me the talent the other side brings to the table!
Jeff writes another great article about how deeply rooted the current issues really are. Is it really just the subprime borrowers that are to blame? Or is is possible that this will continue to spread through other sectors of the economy? My opinion is we've only started, but Jeff puts out a great case.
It seems to be that the common consensus is to leave things alone, and let the markets solve this issue, sort of let the chips fall where they may. Bob Mitchell from St. Louis wrote an excellent piece arguing for government support. To me the value of this site, is being able to recognize the arguments that are being presented so you can understand the differences across America.
Then Ken Cook comes along and says that he doesn't really care what anyone has to say....ok, he didn't really say that, but I like his message. REGARDLESS of what might be happening, here are some great reasons to buy now! Without further ado, take a look at his article.
Rey Gallegos comes along and tells us what is already happening with the cost and risk factors in current and future lending, as a result of the current defaults and delinquencies in the mortgage markets.
Michael Tarraboto probably has the easiest, most understandable explanation of the impact of Fannie Mae, Freddie Mac, and the future of real estate values....because after all, who really cares about the cost of funds, and any other possible real estate or mortgage related story, if property values make it nearly impossible to borrow money? Its somewhat high level, but again, Michael does the best job I've seen of explaining this to consumers and industry experts alike.
Andrew Lenza comes along from Joysey, and throws Scrooge's interpretation into the mix. It makes you think how life imitates art! Or is it the other way around? Either way, Andrew figures it out...............go read it!
Summing it up, while I do not believe that ANY of the talent I've mentioned will NOT be around in 2008 and beyond, Brian's analysis at the future speaks to the industry. Half of the people on this site, and in the industry will not be able to survive through the current downturn. You never know if Brian is on your side, or just writing a great counterargument to get you to think and define your position. Either way, he is a well thought out, and interesting read.
And with his analysis, I revert back to Jason Sardi's insightful and impactful post that gets you thinking that if you're around in a year because you were able to focus on the basics, adapt, survive, and then thrive.....that maybe being a cockroach isn't so bad after all?
I know the coming weeks will be thoroughly exciting when you see the talent we have lined up! Our Christmas gift to you is to bring you the best and brightest talent through the end of the year....so look who we have coming..............
Bill Nazur has an extensive background in finance & mortgage lending who gets to serve as an author, speaker, and consultant to the real estate industry, as well as a featured regular guest on FoxBusiness, MSNBC, and Univision. Bill also hosts a new radio show at www.realcoachingradio.com, along with a thriving (yes, its thriving, not just surviving!) mortgage business, powered at Bank of America Mortgage. If one of the many talented professionals on this site cannot help you, please feel free to contact me as I can also lend in all 50 states. While Real Estate is local, knowledge is universal. I hope to help you soon.
Now don't you DARE think that you couldn't be involved......
Mortgage blogs by loan officersHere is a list of Loan Officers. If you are not listed, please email Jeff Belonger to be added. This way the person doing the Mortgage Pro week in review can try and find most mortgage related posts in one section. ActiveRain is growing rapidly and it is difficult to keep up.... If you think you have been ignored, you have not. This is open to all!!!
MORTGAGE PRO Week in Review A repository for the Mortgage Week in Review. Please don't hesitate in joining this group.
All Real Estate....all the time....how Real Estate can help you achieve your goals, as well as what is wrong with the industry. Pure, unabashed honesty. Critical to my mission is to help underserved families and communities improve their position to create a legacy for their children.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Lenders make more money on foreclosures than from short sales or loan modifications. That's what 
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