Rudy's Blog

Foreclosure Suicide?... A harsh lesson in reality

Rudy Baker (Century21 First Choice Realty) — Sat, 26 Jul 2008 13:51:00 -0500

Wow.... this is starting to get out of hand here. I saw a recent CNN video of a woman that committed suicide in Mass, just hours before the auction sale.... This comes as a striking wake up call about the seriousness and tragic situation the housing industry is in. Everyone has clients or folks that they know that are in mortgage trouble. I think it would behoove all of us as professionals to learn how the loss mitigation and loan modification programs work in general, so we can help folks who are in trouble before it gets to another situation like this.....

For those who haven't seen the video, here it is... courtesy of CNN and Mail this... http://www.cnn.com/video/?/video/business/2008/07/25/foreclosure.suicide.cnn

I know my first comment to folks I talk to who are in trouble mortgage wise (since I am known as the REPO man) is "have you talked to your lender yet?" I tell them to directly bypass the CSR that they get when they call the 800 number and ask to speak to either the "workout/modification" department or the loss mitigation department.

With the majority of the people I have talked to (and thru networking with other agents), I have found that most people don't know that the mortgage company will work with them. They get behind, then the calls start and they get embarrassed, scared or for whatever other reason, the avoid the calls.. then they get further behind and it escalates, until the foreclosure is eminent. A simple phone call can set the ball rolling to fix the issue. Granted the following process is not exactly streamlined, but once completed the homeowner gets to keep their house (or their credit) and the mortgage company still gets paid.

I have to say, I am a REALTOR that works primarily in selling properties for financial institutions, and that I see both sides of this whole mess. Taking time to realize that the "bank" really isn't the bad guy here, there is a financial burden that has arisen, and then communicating that to the "bank" problems can be worked out, in a lot of cases without the homeowner having to move.

REALTORS (myself included) have a responsibility to educate the public, past and present clients or anyone else who may ask. I think the situation above proves this case and point.

Even the President Said it..

Rudy Baker (Century21 First Choice Realty) — Wed, 23 Jul 2008 10:26:41 -0500

I have been keeping up with several recent posts about whos fault it is with the mortgage and financial mess were in. I came across an interesting piece on Yahoo video that was meant as a slam piece on our current president. Leaving politics out of it, I think what they described as "President Bush's drunk comment" is actually one of the most poigniant and well put commentaries on the problem.... To paraphrase, in a nutshell, he said "Wall Street got drunk, now they're trying to sober up...How long will they be hungover. They were drunk, offering risky financial instruments etc.... You can see the video here thanks to Yahoo News....

http://cosmos.bcst.yahoo.com/up/player/popup/index.php?cl=8945671

What are your thoughts and comments. I felt like (even though it was supposed to be off camera) his point was well made. As I said, leave the political party lines out of it.... Just listen to the statement he makes.

What are your thoughts?

Giving Back During The Hard Times

Rudy Baker (Century21 First Choice Realty) — Wed, 16 Jul 2008 10:33:46 -0500

Looking for ideas here. There are communities rampant with foreclosures, short sales, etc.... There are also wildfires on both coasts and Local disasters. What can we do as agents individually to help at lease in the local areas, let alone national times of hardship. NAR is great about supporting the victims of national tragedies. In reading a current popular (and fiery I might add) blog, with the current mortgage crisis and finger-pointing being directed as us as agents, I feel like it may be necessary to at least start at the local level with "helping out" with the tough times....

With my end of the business (REO) I tend to "inherit" a lot of former owners cast offs and leave behinds. Granted, most is trash, and we add to the landfill, but some of it is good. I typically have my crews save any good furniture and such, and I store it, until I hear of someone who has need (typically burn out or flood victims) and donate to them. If there is any good clothing in the house, it goes to goodwill or Salvation Army, where they can sell it for their causes.

Id like to do something more, not only to help the community, but to lend credibility to our organization. After all, we sell homes.and we are really the experts in the communities and we should take steps to protect our communities as well..

Anyone have any ideas?

Referral in Belize

Rudy Baker (Century21 First Choice Realty) — Wed, 19 Dec 2007 15:31:10 -0600

Anyone know of an office in the country of Belize? I have a client who owns some acerage there and I know that we are in other countries....

THanks

Rudy

C21 Email

Rudy Baker (Century21 First Choice Realty) — Sat, 15 Dec 2007 17:02:03 -0600

OK. I am again New to century21 (I was an agent a while back and now have returned).... Does anyone know how to set up a TREO WX to work with the @century21 email? The support line wasnt much help. Hopefully someone knows how?

By the way, Greetings from Burlington NC.....

Rudy

Anyone have any suggestions?

Rudy Baker (Century21 First Choice Realty) — Tue, 17 Apr 2007 22:52:22 -0500

I have been on AR for a month or two now. I just stumble on this group and it peaks my interest. I foreclosure properties in North Central NC. I am interested in sharing some of these as the description warrants, but am unsure how to position pics and all can someone help me?

Foreclosure U... There goes the neighborhood

Rudy Baker (Century21 First Choice Realty) — Fri, 13 Apr 2007 17:07:37 -0500

Ok I may be just a little jaded here but I have to get this off of my chest. I just received yet another junk email heralding tapping into the new and bountiful frontier.... Selling Bank Foreclosures..... I have been doing this for seven years....I started doing BPOS ( did hundreds of em my first year) Good quality price opinions, for which I was compensated reasonably ($100.00 Minimum)...More agents caught the wave and the compensation starts dropping...( as did the quality).... Now today I get this email stating the endless income possibilities of doing BPOS,...the best thing is ( get this.... if you're in the REO industry you should be cringing now) you dont need experience.... They further state that the majority of the BPOs are for loans that are in default or behind.... Great. Now buy the ebook ( a steal for just $69.00 a download) and bam. You are now an inexperienced BPO factory helping financial institutions make valuation decisions... There are other courses too of course...."Master listing preforeclosure markets" and "How to list bank owned properties". Does anyone see a problem here? ( or is it just Friday and I have been working too long?)....This is doing a disservice to our end of the market. In my area, there are two or three agents that are "REO dabblers" that the lack of experience really shows. I am inheriting a listing from one of them... That is at least $20,000 overpriced... based entirely on this agents price opinion. I went round and round with the asset manager why my valuation was much lower. I simply told here because here on earth.....the comps that I used reflected the property....By her own admission the home had sat for four months without a showing.... This is an example of what this kind of stuff is going to promote... Someone tell me if I am wrong here??? I have worked hard to achieve a level of competence in my industry and it bothers me that it can be trivialized.....

Option One Mortgage

Rudy Baker (Century21 First Choice Realty) — Fri, 23 Mar 2007 20:01:34 -0500

Just a note to remind any of us who are working with option one's reo division.... THe new listing letters will be out on monday and we have to update mls and send it in relecting the new commission schedule....

If there is anyone out there working them as well, I'd love to know.... COmpare stories etc.....

Flip This House....Good or Bad

Rudy Baker (Century21 First Choice Realty) — Mon, 19 Mar 2007 19:28:55 -0500

Ok... So not to step on any toes here or anything, but I'd like to have some opinions here.... I sell foreclosures for a living...not making a killing, but enough in my market that I have had a measure of success at it. I have been doing it for about 7 years now and I see alot. Being a REO broker, I am routinely going in and out of foreclosed properties either to list or to provide a second opinion on the properties. I have notice an increasing trend in properties that have been purchased as a foreclosure, only to end up back on the market in sometimes less than a year as foreclosures again. mOst of these have some remodeling started...to varying degrees of craftsmanship. They appear to be "flips gone bad"... I admit, I am guilty of only watching one or two episodes of the show (seemed to cause an impending sense of doom) but it seems that perhaps they are misrepresenting the rest of the markets (outside of NY, CALI and FLA).... I mean, us smaller area folks, we just dont have the margins that bigger markets have and I feel like the amateurs are getting a false sense of our game. ... I know its job security for my business, but it seems that with all the "end user" loans tanking, that perhaps this is just compounding the problem. I educate as many clients as possible who are considering it...they always start with..."I was considering buying a house to flip...i saw this show..." that is where the real estate 101 kicks in. I guess the opinion I am trying to share is that I think that shows like this are setting the average folks up to fail..... Any ideas?

EXit Realty.... Real Estate Redefined......

Rudy Baker (Century21 First Choice Realty) — Thu, 15 Mar 2007 10:09:02 -0500

I wanted to take a moment to share with everyone the concept of Exit Realty Corporation. We are an empathetic based real estate company that adds to the earning potential of our agents. With an added residuals program, you really can earn more that 100% with our organization. We are the largest growing Franchise in North America. My Region ( North and South Carolina) is among the fastest growing regions in the country. Drop a line or question to discuss what our family may have to offer..... It has been the best move I have ever made.

Absentee Owner Scam

Rudy Baker (Century21 First Choice Realty) — Wed, 14 Mar 2007 22:49:40 -0500

I wanted to make everyone aware of a predator out there targeting absentee owners ( and apparently elderly owners as well)... I have a client who was contacted by a "Todd Teal" wanting to purchase his tract of land here in NC ( He lives in another state). THe long and the short of it is he writes a sham contract ( open ended closing date, earnest money that never gets deposited) and basically never closes. When forced with a contract revocation he threatens to place a lis pending and/or a lien on the property, effectively clouding the title. I have abbreviated this somewhat in the interest of reading, but you can find out more on the Florida Attorney General Website. THey have over 100+ open cases against him and continue to file more. He claims residence in Myrtle Beach, and two other overseas countries. He also goes by "Snuffy Smith" and another name. I contacted the NC Attorney General and while they had heard of him, he is still under their radar... Just wanted to make everyone aware.....

Foreclosure Agents Support Group

Rudy Baker (Century21 First Choice Realty) — Wed, 14 Mar 2007 22:15:59 -0500

Hey guys....anyone who does REO interested in telling war stories or in need of a "support group" I'm open.

Has anybody noticed lately that the proposed commission structure is going down on the list side, yet they are requiring us to do more and more? Anyone having problems getting reimbursements? Please comment... I hope I am not the only one!!!!