Jesus (Jesse)'s Blog

Short Sale Doesn't Equal Forgiven Debt.

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Thu, 21 May 2009 17:42:02 -0500

I came across a blog on another networking site and got into a bit of a debate as to what exactly a Short Sale is and isn't.

I need to explain that I am a HRC (Housing Retention Consultant) with Titanium and I have the RDCPro (REO Default Certified Professional) Designation through RealEstateEducate.com lastly, I am working on a Short Sale training program I hope to present to NAR (National Association of Realtors) for acceptance in their Continuing Education Program. In other words, I kind of know what I am talking about, just a bit.

Ok, so back on topic, what is a Short Sale?

Per Wikipedia a Short Sale is defined as...,

"a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold."

The above definition is absolutely correct however, I have heard, read, and had described to me that a Short Sale is more than as described above by Wikipedia.

Some define a Short Sale as...,

a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold and, where the bank forgives the remaining debt.

Let me be very clear, a Short Sale is no promise that a bank will forgive the remaining debt!

I wrote a blog back on 9/8/08 on REOPro.NING.com that highlighted the use of unsecured promissory notes by banks to secure future payment of the remaining debt before they offer an approval for the short sale. In that blog, I made it clear that some banks are using the unsecured promissory note while others aren't.

In closing, a Short Sale approval doesn't guarantee a forgiven debt so be careful when you discuss what a Short Sale is so that you don't set an expectation that you simply can't fulfill.

The Ethical Dilemma with Short Sale Option Contracts.

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Fri, 15 May 2009 17:46:03 -0500

My recent articles on this very subject have initiated a firestorm and, I am sure this next article will only throw nitro glycerin on the flames.

Before you read this blog, understand that I have not been appointed as some ethical, moral guardian and, I know that. By no means, do I believe I am going to change your opinion or win you over, that is not my intention. Take what I have written and do with it as you please, I really don't care if you think I am wrong, right or anything else for that matter. This is my opinion and if you don't want to know it, then stop now and don't read any further.

Know this, I feel I am right not because of some statutory legislation or common practice but because I believe in a certain way of doing business and that is what I hope is exemplified in this blog.

First let me explain what I believe a lie is. This will be important to keep in mind when you read the rest of this article. I believe a lie is when someone makes a statement or presentation that they know is false with the intent to deceive.

I believe a lie takes place when an "investor"; as it pertains to Short Sale Option Contracts, tells the bank they will offer them "X" amount of dollars for a property, passing it off as true market value, when they are holding behind their backs higher and better offers with no intention to disclose them to the bank.

I have heard others contend, that as long as you disclose the fact that the "investor" is going to resell the property expeditiously after the closing with the bank, then it's not a lie but, in fact it's full disclosure.

My problem with this argument is that it's based on the premise that the bank knows and agrees to the investor promptly selling the property for a profit from bids that were legitimately the banks but, the bank never had the option to consider. The bank was never able to consider the other higher and better offers because the investor intentionally withheld them. In many ways, I see this as equivalent to a bank heist.

The investor stole money directly from the bank not because of what he said however, because of what he intentionally failed to mention. The investor engages in deception when he misleads the bank into believing the only offer on the table is the investor's offer and it was the only offer received therefore it must be true market value.

This is a lie of omission. Let me explain, for the investor to remain silent and withhold from the bank vital information such as the additional higher better offers, is deceptive in that it gives a false impression to the bank. Basically, this lie subverts the truth with the hope to manipulate the banks decision to the benefit of the investor and not the bank who is already coming up short on the sale of the home.

If we really wanted to have a serious moral and ethical discussion about this type of lie, we need to understand that a lie of omission infringes or maybe even violates the banks right to self determination but, that is a totally different conversation for a different time.

This is also a lie based on misinformation or in other words, the investor is perpetuating a falsehood with the intent to mislead the bank into believing something that just isn't true. The investor is misinforming the bank by claiming they only received one offer and that offer is the one presented by the "investor". This is a falsehood because the investor knows he has higher and better offers but is concealing them.

In closing, I think I have made my points loud and clear. I really don't think any educated counter argument can be presented. I do believe however many "spin doctors" or "investors" are going to come out of the wood work and speak only on bits and pieces of the truth with the purpose to get support for their seriously questionable and in my opinion illegal business practice however, be that as it may.

The truth is, each and every one of you reading this far have to make a decision. I only hope that each of you make the right decision.

Short Sale Options to Purchase are Fraud

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Wed, 13 May 2009 09:29:58 -0500

I recently wrote a blog titled, "Short Sale Scams Dupes Un-Suspecting Realtor...Are You One?" which created such a stir that now I am prompted to write this blog specifically concerning Short Sale Option Contracts.

So, here is how this happens.

You're in the office making calls or whatever else you do and you get a call from a "investor" who sees you have that short sale listed on 666 Money Pitt Lane and, wants to know if you would write up his Option Offer with no terms or conditions.

You're all excited because by all intents and purposes this is a really good offer, no conditions, no terms, no contingencies.....right,......wrong!

He has one condition and that is, he has the "option" to purchase the home at any time before the foreclosure sale date. He doesn't outline any price or contingencies at this time but, who cares....your seller surely isn't going to mind because they really don't have any skin in the game because they aren't getting any money in return for the sale anyways.

Now, here is where it gets even more interesting. As a part of the investors "option" to buy he mandates that he negotiate the Short Sale with the bank. He makes it all sound great because he has a guy who is on hold with the bank right now just waiting to get this negotiated and sealed for you, because he wants to make you BIG money on the deal. In fact, he has such good relationships with this bank he promises you (the Realtor) don't have to do anything, he can do it all for you! To make you more confident that this is good for you, he offers you a cooperative agreement for both the Listing Side Commission on your original listing and the Buyer's Side Commission when he turns right around and re-sells it to his "firm"....DOUBLE COMMISSION...WOO HOO!!

All he needs is your client to withdraw their listing from you, agree to have him (the investor) represent them, list the property with his firm and, sign a limited Power of Attorney saying that he (the investor) is representing them so he can negotiate with the bank.

Once all this is done, the "investor" receives all the offers from the general public, negotiates all the offers and behind the scenes is negotiating a much lower sales price with the bank for the purchase of the property by his firm.

In other words, all these offers from the general public are being held back...they aren't being submitted to the bank. Instead, the "investor" is negotiating his own offer trying to get the price 20% or more less than his highest received bid from the public.

So once the "investor" gets a high enough offer to satisfy his greed he then exercises his own option to buy the property. Keep in mind, he is purchasing the property at the bargain basement price he negotiated with the lender directly.

Now he works the offer to close and, you get the commission for the listing side, your seller walks away from the home happy to be out from under the debt burden and what do you know, the investor has found a buyer who needs representation who wants to make a great offer and the investor wants you to be the selling agent, because you were so good to work with before.

The offer "your" buyer wants to make is $35,000.00 more than what you just sold it for to the "investor"....wow, he is making out like a bandit! When in actuality he is involving you in mortgage fraud!

Just to make this a bit more clear....watch the money.

You list the Short Sale for $50,000.00
Investor comes in, takes the property over and list it for $30,000.00
Investor negotiates with the bank and gets approval for $25,000.00
Investor receives an offer from general public for $55,000.00
Investor exercises his option to buy and closes for $25,000.00
Investor instantly sells the property to the general public offer for $55,000.00 making a profit of $30,000.00 off of an offer that should have gone to the bank.

In other words, the investor made off with $30,000.00 of the banks money! You profited twice from the deal so, you are involved in a scam if you knew it or not!

THIS IS MORTGAGE FRAUD AND THE FBI DOES INVESTIGATE.

Short Sale Scams Dupes Un-Suspecting Realtor....Are You One?

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Tue, 12 May 2009 16:09:54 -0500

Be very careful with who you do business with.

Here lately, many Realtors are be contacted by people who claim they can expedite the Short Sale process or offer you double commission on your Short Sales. Be careful!

These 3rd parties (typically investors or an investment firm) offers to negotiate the Short Sale on behalf of the homeowner and, all you (the original Realtor) have to do is set back and let them run the show. sounds great...right? Well, it's not and let me explain why.

First off, only 4 people are allowed to represent a homeowner when selling their home and they are....

1. A licensed Realtor

2. A licensed Mortgage Broker or Loan Officer (available only in some states)

3. A qualified housing counselor by a government agency

4. An Attorney

Because these "investors" are not one of the above but, you allow them to work the deal (because their recent advertisement to you said, they do it all and, well.....you let them) then you (the Realtor) just became negligent in your fiduciary duty to the client and they are involved in illegal representation.

Ok, so the Realtor (original Realtor) got the bank to agree to a price of $100,000.00 for the Short Sale. The "investor / 3^rd party ", who wants to "help" the Realtor sell those horrible Short Sales, negotiates a deal with a buyer for $125,000.00. When the buyer goes to close, the bank is shown a closed deal for only $100,000.00 and the "investor / 3^rd party" walks away with the additional $25,000.00. The really sad part is the original Realtor is none the wise and all he knows is he got double commission because the "investor / 3^rd party" offered him the buyer's side commission and he got the listing side commission from the bank. So, now the un-suspecting Realtor has broken his fiduciary responsibilities, mortgage fraud, un-ethical behavior and whatever else they can throw at you.

I am really surprised to see some of those similar companies advertising in this group but, I guess scam bags can be anywhere.

Realtors, if it sounds too good to be true, it most likely is.

Why does 1 agent get all the listings?

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Sun, 29 Mar 2009 17:28:12 -0500

Many factors go into answering this question and the truth is, I don't have the time to explain each one so, let me give you my top 3.

1. REO Experience = REO Listings; I know for many of you, this fact is frustrating but, it's a fact none the less. Why is this the case, you may ask? It boils down to what "Experience" really represents. In other words, if you have REO Experience then you have a direct knowledge through direct exposure to REO and, therefore you have the "know how" or "procedural knowledge" it takes to get the job done. Keep in mind that the rule isn't REO Training = REO Listings, it is REO Experience = REO Listings.
2. A Proven Track Record of Sales: It may be hard to believe, because your calls never get returned by that power house REO listing agent but, a REO Agent with a large number of listings has a proven track record of sales. This proven track record establishes confidence on behalf of the lender providing the listings and as long as the sales are occurring with little to no problems, that agent will continue to be given the opportunity to do so.
3. The Asset Managers are Graded as Well: Just like a REO Agent has a performance evaluation, so do the Asset Managers. If an Asset Manager is performing poorly because they have a poor Realtor in the field, it's the Asset Manager who is held liable and risking their job. The banks consider the Asset Managers ability to choose high quality, high performing Realtors as a part of their job and if they can't do that, they don't keep that job for long. This is why points 1 and 2 are critical and most Asset Managers will not budge off them.

I hope this has given you a different prospective, if you have questions, comments or concerns I would be happy to help out.

My top 8 blogs for new REO Agents.

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Sun, 15 Mar 2009 10:09:06 -0500

I get asked a lot about what advice I can give a new REO agent. Many times those conversations revolve around how I can help them get into the business.

When this comes up I always stop and ask myself, "Do you think they read your blogs?" and typically the answer is no, they just simply asked me before even trying to get to know who or what I am all about.

Well, that brings me to my top 8 blogs for new REO Agents (See Below, not in any particular order). If you are a new REO agent and looking to get in this business, instead of just asking straight out, "can you help me get a REO listing", which...by the way...is a bit presumptive and rude, first read my top 8 Beginner REO Agent blogs below.

Once you have read over them and, you still have a question, I would be more than happy to help you. Chances are however, after reading over them, you may find the caliber of your questions will change from a "help me" style question to a "how to" style question and those I am much more comfortable with.

1. Apprenticeship, Experience and Referral
2. BPO's = REO's Myth
3. Don't take my word for it.
4. Importance of Blogging
5. REO's become extinct
6. What you don't know is what you don't know
7. REO Schemes you should watch out for.
8. How to start doing your first REO.

Listing Agents Not Welcome.

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Mon, 09 Mar 2009 14:24:10 -0500

Because I have seen several recent post about OCWEN no longer taking on Listing Agents in CA. FL and, NV I decided to blog on a this recent trend of doing away with the Listing Agent.

Now, before I get started in on this topic, let me make something very clear, I have no first hand knowledge on these situations I will be discussing. I am simply putting together what I have heard, read and understood about the REO industries changing dynamics and how it might effect me or you.

Ok, so, OCWEN is no longer taking on Listing Agents for their properties in CA, FL and NV so, how is that possible?

First off, you need to understand that many of these disposition companies are trying their hardest to figure out how they can grab more and more of the listing agent commissions on these properties. Many companies are notorious for reducing commission, attaching high split percentages or adding un-necessary fees due from the listing agent. The terribly sad part of all this is, many listing agents have folded to these claims on their commission in order to simply close the deal and make something vs. nothing.

Well, these practices have led many companies to logically pursue these commission grabs to their conclusion by asking a simple but, dangerous question and that is, "How can we keep all the commission for ourselves?"

The natural answer to this is to do away with the Listing Agent and keeping the 3% average commission on that side of the transaction. So how can they do this?

Well, they aren't really getting completely rid of the Listing Agent. You see, instead of having 50 agents to cover a particular county, they reduce their agents down to 3 and then offer them a job to act as their agent, with a steady income and benefits like, retirement, health, dental, vision, paid vacation and more.

So how is this even possible, you may ask. I have one word for you and that is TECHNOLOGY! These companies invest lots of money in developing specific software that can almost manage the entire listing from birth to grave. This software is so highly developed that it can dramatically reduce the number of required agents to work the same, if not more workload than before.

Many REO agents are already using some of this software when you log into your Asset Managers Back Office and input your forms, update your work flows, etc.... All the company has done is taking that software and perfected over the years of use that you as a REO agent helped with.

Now, you're thinking, "What kind of Realtor would do this?" Well, I can assure you, plenty of Realtors are out there that would give up their commission and work for a company just to do the same job but have, regular income and all the benefits.

So....I know I probably just rained on your REO parade but, it's important for you to know this industry is changing. REO will not be the same when we end 2009 as it was when we ended 2008.

Good luck, stay safe and hopefully I will see ya on the flip side.

Press sheds bad light on Foreclosure Avoidance Companies.

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Tue, 10 Feb 2009 11:29:17 -0600

Last night, Jennifer Kraus with my local news, NewsChannel5 did a story on a company called dont4close.com. As a part of the NC5 Investigates report Mrs. Kraus chronicled a very depressing story about a family who is loosing their home due to mortgage arrearages and were taken advantage of by a less than scrupulous man who guaranteed he could save their home from foreclosure.

As a Certified Home Retention Consultant with Titanium, when I saw the story come up, I was entranced and attempted to understand every detail.

Ultimately, the family was facing foreclosure and contacted dont4close.com to help them save their home. Allegedly Charles Jones behind dont4close.com offered the homeowners, the Reynolds, a deal they couldn't refuse. He offered to pay their mortgage for 1 year and after that time, the Reynolds could start paying him back.

Well, to make a long story short, allegedly Charles Jones sold the Reynolds home to a third party, a woman named Gladiz Romano. After some investigative work by Mrs. Kraus she found Mrs. Romano who admitted she bought the house but has never made a single payment for the home or ever even visited the home.

In closing, NewsChannel5 offered up some "tips" on how to prevent other homeowners from being in this situation. One of the tips they offered was,

"If you face foreclosure, stay away from businesses that guarantee to stop the foreclosure process, require you to sign over your property deed or pressure you to sign papers you don't understand."

Web link for full story....

http://www.newschannel5.com/Global/story.asp?S=9815589&nav=menu374_2_2

As a HRC, Realtor and concerned citizen, I totally agree with the statement but, what bothered me was, the story left it there.....they didn't go further. They didn't explain that sometimes banks will send out representatives to homeowners residences because homeowners loose communication with their mortgage servicers and they (the servicers) don't have any other choice.

I am sure this oversight was simply due to a lack of knowledge that a legitimate process does exist to preserve homeownership or at the very least avoid foreclosure so, I wrote an opinion editorial to Mrs. Kraus and hopefully will be able to address my concerns with the story but, either way, it's important that those of us who work hard, legitimately, morally, ethically do what we can to create positive news worthy stories and get the message out, we are here to help!

BPOs = REOs Myth "?"

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Tue, 03 Feb 2009 13:51:31 -0600

Ok, now that I have your attention, let me share some valuable insight into the BPO = REO myth.

Not every BPO gives you the opportunity to get the REO. Truth is, it rarely does. To understand this, you need to understand the BPO process. BPO's are generally ordered after an offer has been submitted on a REO or Short Sale. That's right, after the offer so, obviously you have no chance of getting that property as a REO.

So, some argue that the BPOs get your name in front of the Asset Manager....ok, yeah it does but, how many people do you think your are competing with to get the attention of the Asset Manager by using their BPOs? Not the best way to get their attention, if you ask me.

Lastly, BPOs give you invaluable experience that REO Asset Managers require. Now this is actually very true. Most of the time, if you are lucky enough to get an interview with an Asset Manager, one of the first question you'll get is, how many BPOs do you do? This is because it tells the Asset Manager how active you are in a particular area and therefore, sheds some light on just how much "experience" you have in evaluating Fair Market Value.

Oh, I almost forgot, those pesky little Default Designations / Certifications. So do they offer anything for you....well, mostly not. Unless the Designation / Certification training is offered directly by a lender or the lenders exclusive REO outsourcer. So, that is why on our home page, you will only find an exclusive handful of designations / certification and professional membership organizations that are vouched for by our REOPro Members. So, be very careful when buying that certification / designation because, it may not do a damn thing for ya. So that reminds me, here is a great blog of mine you might want to read over, "REO Designations, what is your opinion on them, are they worth it? And REO Schemes you should watch out for.

So, how do you get that elusive REO? Well, I am going to reference one of the very first blogs I ever did here on REOPro, follow this link to learn more, How to start doing your first REO.

Hope this helps out. Good luck

Bankruptcy Judges may soon be able to alter mortgage terms

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Wed, 28 Jan 2009 14:38:21 -0600

You may have been all caught up in the looming "sitmulus plan" news that you may not have heard of a recent vote that took place in the House Judiciary Committee.

This vote could potentially reduce foreclosure nation wide but, at what cost?

Basically, the bill lets Bankruptcy Judges alter the term of mortgage loans. The vote passed 21-15 and now the measure is headed to the House.

Now, one thing to remember about this bill is that it only applies to mortgages that were entered into before the bill becomes law. This is important becuase opponets of this bill claim this measure would create a rash of bankruptcies and flood the courts, much like the massive bankruptcy law changes of a few years ago.

The thought is that many people would be more comfortable with pleading thier case to a Judge than to deal directly with a Loss Mitigation Officer representing the bank because they feel the Judges will be more sympathetic to thier cause.

Well, of course many lenders oppose the deal because they believe they will be big loosers if these mortgages get in the hands of liberal Judges who like to legislate from the bench. Ultimately this is the one point both the default home owners and lenders agree on and that is, if a Judge is allowed to alter the terms of these loans, most likely they will favor the default homeowners and the banks will end up loosing more than they would have by doing a Short Sale or Foreclosure.

As you can imagine, the lenders are coming out and saying that massive losses incurred from these lawsuits will be passed on to new mortgage seekers and therefore, reduce the number of people able to afford a loan all together.

www.REOPro.NING.com

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Wed, 28 Jan 2009 10:48:06 -0600

Announcing a online community strictly for Default Industry Professionals. www.REOPro.NING.com offers blogs, forums, comment walls, groups, photos, videos, popular REO publications, popular REO certifications and designations our 800+ members haved said are worth your time. We also allow for zip code searches, designation searches, county searches and state searches through our member list. Most importantly, a list of over 175 BPO / REO companies you can sign up for is available to all members. Best of all, it's free.

Our members are Realtors, Asset Managers, Clean out Crews, Lenders, Attorneys, Investor, and anyone else involved in the real estate default industry. check us out at www.REOPro.NING.com

www.REOPro.NING.com

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Wed, 28 Jan 2009 10:44:13 -0600

Our members are Realtors, Asset Managers, Clean out Crews, Lenders, Attorneys, Investor, and anyone else involved in the real estate default industry. check us out at www.REOPro.NING.com

Illegal Foreclosure Claims Spur Foreclosure Avoidance Counseling and Short Sales

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Thu, 22 Jan 2009 12:23:11 -0600

An article by Jennifer Harmon with www.ManagingREO.com highlights just another reason why I believe that REO's are not what banks want and that our industry is in the beginning stages of a paradigm shift. Back on October 8, 2008 I wrote a blog titled, "REO's Become Extinct" which focused on the idea that REO's just simply cost too much to continue doing and our industry had numerous reasons to change and start doing more Short Sales.

Well, like with any fast growing industry, growing pains with short sales are rampant. Many people complain about short sales and, the list is too long to review here but, we are seeing MLS boards taking steps to force more regulation and in return, the process is smoothing out a little bit.

As I mentioned in my October 8th, blog, we are seeing a surge in Foreclosure Avoidance companies like Titanium Inc. and BSG3. Just so you know, I am an HRC with Titanium and love them, thought I would share that in the spirit of disclosure.

Now, with all that being said, let me get back on task and that is, how are illegal foreclosure claims spurring the growth of these Foreclosure Avoidance Counseling companies and subsequently short sales.

Jennifer Harmon mentions in her article that legal aid groups and the such are trying to sniff out illegal foreclosures and, therefore they are seeing a rise in these types of claims. Simply put, courts, legal aid groups as well as certain law firms are looking to give these homeowners a way of keeping their homes. This isn't really a bad thing, I am all for a homeowner staying in their home, when they can afford it.

Jennifer's point is, lenders need to do more homework and work more effectively to ensure that the chain of title is complete, accurate and legal before they decide to foreclose. It's a great point but, I don't see that happening. Truth is, 2009 isn't going to be any better than 2008 unless the government steps in and does something drastic to stop the foreclosure tsunami. In reality these lenders can't wait for government so, they are taking steps on their own to protect themselves and hence, short sales can do just that.

You see, with a short sale, the bank isn't selling the home, the homeowner is. All the bank is doing is approving the amount they are willing to take as a loss when it's sold. In essence, they avoid the foreclosure all together and don't really need to worry about claims of any illegal foreclosure.

Now I am no Attorney so, I may not aware of some obscure legal principle that makes my argument mute however, it makes a lot of sense to me......lol

In closing, I feel, believe and speculate that REO's are not the way of the future. I really do believe they will always have a place in our society but, I don't see the Default Industry surviving this economic downturn looking like it did when we went in. I do think old business standards are changing as we speak and short sales are going to be a preferred way to do business.

Appraisals, my tail......

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Mon, 12 Jan 2009 14:46:53 -0600

OHHHhhhhh.....this blog is going to ruffle some feathers...trust me! This is my biggest complaint with the "Appraisal" Industry and that is, they don't appraise anything and, you can quote me on that one.

Ok, so the appraiser gets and order to go out to a home and appraise it. Well, on the paperwork he got from the bank, the borrower's requested loan amount appears. That is why it happens that the appraiser's appraisal numbers always match exactly the loan amount, which is obtained directly from the Purchase and Sale offer. So, I have to ask, what is the appraiser appraising?

This also happens in the reverse. When a bank has a REO, they send over the appraisal order which so happens to have the remaining balance and or lowest net amount the bank is willing to take hence, why some banks price their REO's way under value and get multiple offers immediately.

Now that you understand that, it gets worse. So, lets say Johnny Home Buyer goes into a bank and gets a loan for $150,000.00 however, doesn't want to spend that much so he goes and puts an offer on a REO that was priced under value at $100,000.00. He finds out that the home has multiple offers so he submits his final and best at $130,000.00, he really wants the home. He got that number from the Selling Agents comps, which showed the home was worth $140,000.00 so, even though he is paying more than list, he is still getting a deal and feels really good about his offer.

So the banks appraiser (buyer's bank) goes out and appraises the home at $120,000 due to a variety of factors, (pick whichever ones you like because every appraiser that goes out finds something different each visit) condition, location, upgrades or lack of, noise pollution, migratory bison, predatory lions, asteroids and close encounters of the third kind.

Either way, the deal is shot, it's dead, no where to go now so the Realtor is left with trying to save a deal by proving to others that the appraisers were all screwed up and bank policy is fraudulent by any self respecting, self governing, litmus test. Well, this doesn't settle well with the bankers involved because they don't like you pointing out their problems and they go about defending their appraisers.

The best part of all this, no one ever calls the appraiser or the appraiser won't return any one calls but the banks and, they are not calling. The banks makes the excuse that they are just too busy to follow up for accuracy on each deal and rather than fight to save the deal on the table, they move on to the next one because, THEY GOT MULTIPLE OFFERS!!!!!!!!!

Ok, so love it or hate it, the game is a foot.

FYI: this is one reason why I don't deal with Countrywide. It's scandolous.

How much loss will a bank accept?

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Fri, 09 Jan 2009 19:05:58 -0600

Have you heard that banks will accept a certain amount of loss on their default real estate portfolios as a rule of thumb across the board?

Have you heard that all banks are willing to take 20% less than the listing price?.

Have you heard that all banks over price their listings because they know they are going to take a less on their properties?

If you believe any of these rumors, urban legends, or false hoods then, you have just been suckered.

Let me explain how banks determine their price when they go to list a home.

First, they order an appraisal as soon as a home goes into foreclosure or as soon as they receive the first offer on the home. In an effort to be clear, let me tell you what an appraisal is. An appraisal is an estimate of your homes Market Value by a professional.

It is important to understand the difference between Market Value and Price. Market Value as defined by the USPAP (Uniform Standard of Professional Appraisal Practices) says, "...a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal." So, in other words, it's the opinion of a trained professional as to how much the property should sell for in a fair market.

So, I bet now you are wondering how these appraisers analyze a property in such an un-certain market as that we are in now, right? Well, that can be answered by the definition of Market Value used by the residential mortgage financing industry and it says, " ...the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale." So, in other words, adjustments for any reason, are made to the comparables sales price not the subject property.

Ok, I am sure this may be confusing but let me explain it this way.

You want to put an offer on 1000 Money Pitt Lane but the asking price is $150,000.00, which you think is too high because it's a foreclosure.

Well, the bank isn't going to care if it's a foreclosure, short sale or once belonged to one eyed, one horned flying purple people eaters because, they have comparables, from the appraisal, showing that similar homes that are true comparables, alike in almost (no property is ever the same due to it's uniqueness and immobility) every way sold for or above $150,000.00. So that offer of $115,000.00 you put in thinking that banks are taking less because that is what they do, is foolish and a waste of everyone's time.

Well, maybe the Appraiser was smoking some serious blow that day and you (as the buyer) know that the home just isn't worth $150,000.00 so you want to stand by your offer and have it submitted.

Truth is, the bank isn't just relying on the Appraiser to get the appraisal right. By the time you submitted your offer, they have accumulated approximate 2 appraisals, 1 from the previous homeowner and 1 upon foreclosure, and they have had a Realtor provide a BPO (Broker Price Opinion) monthly for the time before it hit the market and while it was on the market. My point here is, the bank is going to know the value of the home, the monthly average depreciation for the neighborhood and how long they are willing to wait for the "right" offer to come in the door. On average, per my friend at one of America's largest banks, they have 5 price analysis on a home before it is every put on the market so, they know, you can bet on it.

Ok, so now that I have explained that, can you see why thinking a bank doesn't know how much a home is worth is just silly.

Granted, banks are dumping some properties due to the large amounts of real property on their books however, that isn't because they have made some secret policy that they will accept a general loss on all their properties. In reality it's more about that specific home and how much loss they are willing to take and, that isn't something they are advertising.

So, if you come across a great deal, then most likely you were at the right place at the right time with a Realtor who was looking out for you versus, anything else.

The Appraisal Bewilderment:

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Sun, 28 Dec 2008 11:19:51 -0600

A recent unbelievable situation I was in has prompted me to write this blog. This is the account of that situation and should be enjoyed for it's shear entertainment value. I am not bashing anyone, just telling a story. This story is true however, names have been changed to protect the innocent......if any exist.

So, I am working this Short Sale as the Listing Agent and, as I normally do, 2 weeks out I check up with the Selling Agent and make sure everything is on track. As usually, I hear the, "Oh everything is fine" story however, due to my experience in these types of deals, I know better and follow up with my closing agent, Mrs. Super Closer. After speaking with Mrs. Super Closer, come to find out, thing are far from "fine". The Closing Agent hasn't received anything from the Buyer's lender, aka The Package. In fact, she goes on to tell me that they have tried to reach them now for 3 days, ever since I faxed over to them the Release of Contingency, to no avail.

Obviously, I call the Selling Agent back and explain, "Everything isn't fine" because we are 2 weeks out and my closing agent hasn't heard anything from the buyer's lender. Well, he doesn't seem to have a clue as to what is going on and says, he will call me back when he knows more. I update the notes in my database and schedule a 2^nd call back to the Selling Agent in 1 week.

1 week later and I call the Selling Agent back to check the status of the deal. He says "Oh everything is fine". Well, after reading my notes I promptly call my closing agent, Mrs. Super Closer and she tells me, "The bank is still waiting on the appraisal". Confused and dismayed I call the Selling Agent back and alert him to the status of his clients loan. He is lost and says he will have to call me back.

I give him only a couple hours and then I call him and ask for the status, he says, "Oh everything is fine", almost a robotic response at this time. Knowing better I call Mrs. Super Closer and she proceeds to tell me that the buyer's lender is requesting to extend the closing by a week because the holidays are upon us and they can't get an appraiser out fast enough.

I immediately call the Selling Agent to brief him on the status of his client's loan and once again, puzzled and confused he says to me that he will call me back.

At this point, I have no confidence in his abilities and I pull his buyer's loan approval letter from my file. I call the loan officer and ask, what is going on. The loan officer confirms what Mrs. Super Closer told me and request we post pone closing for 1 week, maybe 2. I explain to the loan officer that this isn't going to be a possibility and any delay must be approved by my client's bank (keep in mind this is a short sale) and they aren't going to budge....I know them well.

I call my client's bank and as predicted, not a chance under heaven are they extending the closing. Truth is, everyone has known the closing date for more than 30 days now and they felt any delays were just going to cost them more in the long run so, close on the agreed upon date or don't close at all.

I called the buyer's lender back and explained the urgency of the situation. He explained that they were simply waiting on the appraisal and, they will not be able to send anyone out till after the holidays, past the closing date.

Well, I had to call my client to brief her that her home may not sell and I felt awful to make this call. I knew her situation and a closed short sale was going to start her family on a more secure financial future for the New Year. After calling her, she explained that a man, identified as an Appraiser came by over a week ago for an hour. I asked her if she had his card and sure enough, she did. I got the appraisers information and called my appointment desk

I verified the man's identity and that he had a confirmed appointment to my clients house more than a week ago. Completely befuddled by this miraculous turn of event, I immediately call the buyer's lender back and enlighten him to the fact, his appraiser was out there, more than a week ago and neither his bank, his client (the buyer) or the Selling Agent (the buyer's agent) was aware that an appraisal has taken place.

Granted, maybe I should have known but, truth of the matter is, as a busy Listing Agent, I don't have the time to keep up with every visitor to each and every home I list. I especially don't have the time to ensure Selling Agents are driving their workflows and follow up with their clients as well as their vendors to ensure jobs are getting done.

So the banker calls the appraiser and calls me back directly, just as he said he would, 2 hours later. Come to find out, the appraiser did complete the appraisal, submitted it through his company and his processor didn't hit the "submit" button in the computer to send it over to the bank. In other words, it all came down to someone not hitting the right button.

The banker tells me that we can close on the originally agreed upon date and it shouldn't be a problem at all.

By the way, this all came to ahead on Friday afternoon, now it's Saturday morning, I call Mrs. Super Closer and she tells me that, "Everything is fine" and from her, I know it is.

Saturday afternoon early evening rolls around and I get a call from the Selling Agent. He is begging me to ask my clients bank to extend the closing. I asked him why and he proceeds to tell me his buyer's bank needs the extra time to get an appraisal done.

Knowing what I know, I tell the Selling Agent, no, the bank will not extend the closing and he best follow up with his client's banker. Talk about clueless......lol

So, what is the lesson here....too many to name.

FYI: closing took place as originally agreed upon and the Selling Agent was none the wise to what actually took place.

All I want for Christmas is my Bailout, Rescue Bill and Bridge Loan.

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Thu, 18 Dec 2008 12:02:53 -0600

I am sick and tired of hearing about all these companies who are wanting a Bailout, Rescue Bill or Bridge Loan. The big three auto makers come to mind.

For many requesting government funding, including the big 3, the basis of their ignorant argument is that, they are simply to big to fail. It would be disastrous to our national economy because they have so many vendors and business partners that could go under with them.

Granted, yes, many would perish to the economic devil of bankruptcy which is a reflection of their own poor decision making, ie....high legacy cost, poor quality, inability to compete effectively with it's competition and lack of consumer confidence and lack of desire in their product but, what business could make money with these factors against them, just to name a few?

So, instead of proceeding with bankruptcy and restructuring so that they can come out lean, mean, fighting machines, they want to run to Uncle Sam for a Bailout, Rescue Bill or Bridge Loan, which by the way, they can't get from a BANK because the banks are smart enough to look at them and say, "No way Jose". This Bailout, Rescue Bill or Bridge Loan does nothing to make them restructure, it just keeps them floating so they can get through the economic storm.

Back to the argument at hand, "We are too big to fail, our failure would worsen the economic downturn the economy is going through." Well, bah hum bug....I say. This is like putting a band aid on a compound fracture, only short of a reset....it isn't going to work.

Now, with that being said, let's talk about the largest part of the US economy that failed and never asked for a Bailout, Rescue Bill or Bridge Loan and that is the housing industry. I don't remember some housing executive setting in front of a panel of Senators asking for money to help Realtors, builders, nail gun manufacturers, steel toe boot makers, office equipment retailers, and any and all other effected industries when the housing bubble busted.

No instead we got inquiry hearings as to why Fannie Mae and Freddie Mac failed. We got no relief....and, I mean no relief for struggling homeowners, we got a black eye and bad reputation for "allowing" this to happen. We are looked upon as the creator of our own demise yet, we are the largest, by far, part of this countries economy and yet, where is our Bailout, Rescue Bill or Bridge Loan? WHERE IS IT?

We didn't get anything because we were too big to help!

So, I dare anyone to bring to me a educated argument as to why we should bailout the Big 3, or anyone else for that matter, before we start bailing out the homeowners and the housing industry. How many partner business's failed or had to lay people off when we were struggling. Think of all the Home Builders, Home Inspectors, Home Appraisers, Home Lenders, Property Managers, Brokerages, Realtors, Plumbers, Electricians, Roofers, Construction Manufacturers, Office Supply companies and whoever else failed because we didn't get a Bailout, Rescue Bill or Bridge Loan.

More importantly........THINK OF ALL THE HOMEOWNERS THAT ARE STILL WAITING.

Maybe if we put all the homeowners in private jets and send them up to Washington to stay in fancy swanky hotels and then dress them up in thousand dollar suits with exotic thousand dollar brief cases, then they might be able to get a Bailout, Rescue Bill or Bridge Loan.

Like I said earlier, maybe we are just too big to help.

2849 Evergreen Ridge Pt. Nashville, TN 37217

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Mon, 15 Dec 2008 11:10:46 -0600

	Residential	MLS No. 1039857
Status Active	Area 1	List Price $149,900
Type Site Built	Er/Ea Exc. Right-Short Sale	Media 1
Address 2849 EVERGREEN RIDGE PT	City Nashville	Zip 37217
County Davidson	Sub/Dev RANSOM PARK	MLS Map
Lot Number 130	Tax ID 135-10-0C-154.00-CO	Deed Book/Page 200704240048492
Directions I40E Exit Donelson Pke go right. Left on Murfreesboro Rd. Right on Ransom Pl. Right on Olive St. Right on Evergreen Ridge Pt. Home on Left.

General Information
Style Contemporary	Stories 2.00	Year Built 2005 / Existing
Acres 0.130	Total Rooms 9	Completion
Size 61 X 105	Lot Slope	Assoc Fee $ /mo
Constr Partial Brick / Vinyl	Floors Carpet / Vinyl /	Basement None / Crawl
Driveway Concrete	Waterfront /	Garage 2 / Attached
Community Amenities	Roof Composition Shingle

Rooms and Dimension Information
Liv 17x14 / Fireplace	Rec 14x20 / Over Garage	Bed 1 12x15 / Master BR Downstairs
Din /	Hobby /	Bed 2 10x10 / Ex. Lg. Closet
Kit 10x9 /	Other 10x11 / Breakfast Room	Bed 3 10x11 / Ex. Lg. Closet
Den /	Other /	Bed 4 /
	Bedrooms	Full Baths	Half Baths	Finished Square Feet (est)
Main	3	2	0	Main	1691	Est. SqFt. Source
Other				Second	378	Tax Record
				Third	0
Total	3	2	0	Basement	0	Total	2069

Office and Showing Information
Show Call Showing Center / SentriLock /	Owner Name Emily Gray	Open House
Agent Jesus (Jesse) Gonzalez (Ph: 615-385-9010)	CoList Agent (Ph: )
Listing Office The Realty Association (Ph: (615) 385-9010)	CoList Office (Ph: )
Appt Phone (615) 385-9010	Subagency 0	Buyer Broker 2	Facilitator 2
Remarks: Great condition in new subdivision. Extra unfinished space could be made into 4th bedroom.

Schools and Utilities
Elem1 Una Elementary	Elem2	Middle/JR Apollo Middle School	High Antioch High School
Water City Water	Sewer Sewer	Cool Electric / Central	Heat Electric / Central

Features
Appliances	Interior Features	Exterior Features	Miscellaneous
Range Stove / Electric	Firepl 1	Fence	Handicap Access No
Oven Single Oven / Electric	Drapes None	Patio/Deck Deck	Energy
	Master Bath Sep. Shower/Tub / Double Vanities	Pool
Other Disposal / Refrigerator / Microwave /	Other Smoke Alarm / Utility Connection / Walk-In Closets / Wood Burning FP /	Other	Other Satellite Dish / Entry Foyer / Burglar Alarm / Cable TV /

Financing and Taxes
Existing	Assumable No	Non-Qualifying	Taxes $2,075
New	Owner No	FHA Yes	VA Yes	Conv Yes	Other

MLS Information

Photo Scheduled	List Date Dec 10 2008	Poss Date of Deed
Realtor Remarks: Short Sale, Sold As Is, Expect Multiple Offers so send in Final and Best. READ, SIGN & INCLUDE THE SHORT SALE ADDENDUM PROVIDED IN THE MEDIA SECTION OF THE MLS WITH YOUR OFFER.

Comparable Information
Sales Agent	Co-Sales Agent	Days On Mkt 5
Sales Office	Co-Sales Office	Presale
Seller Participation	Closing Date	Orig. List Price $149,900
Terms	Pending Date	Sales Price

The Acceleration Clause, what is it?

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Sun, 07 Dec 2008 10:03:18 -0600

Because the country is seeing an unprecedented amount of foreclosure, I thought it might be a good idea to cover some of the basic terms and concepts of foreclosure. One of these concepts that every Realtor and Homeowner should be aware of is the Acceleration Clause.

The Acceleration Clause can be found in most all real estate mortgage agreements and what it says is, the lender has the right to demand for payment of balance in full if certain circumstances come to rise.

The thing to remember here is that most Acceleration Clauses include not only principal but interest as well, so it is truly the balance in full.

Now, your mortgage agreement will outline the details as to when the lender can Accelerate your loan however, some common reasons that most all of us are under do exist, and they are......

Default: This is when you fail to make a payment. Keep in mind, default typically is defined as any missed payment. Default doesn't mean you have to be three months behind. Default is the most common reason for a lender to enforce the Acceleration Clause and the Acceleration Clause is most widely used in cases of Default because it speeds up the foreclosure process.
Bankruptcy: Most lenders will Accelerate the loan when you file for Bankruptcy.
Fraud: If you are suspected of Mortgage Fraud lenders can Accelerate the loan.
Unpaid Taxes: Don't pay Uncle Sam and you can expect the loan will be Accelerated.

Other reasons a lender can Accelerate the loan do exist however, they aren't as common as the ones I have outlined above. If you want to know the details of your specific mortgage, you need to read over your agreement.

The opinions expressed in my blog, are just that...my opinion. I am not an Attorney so do not consider my opinions as legal advice. As a Realtor, I obviously have a working knowledge of common real estate practices however, as it pertains to law, I suggest you speak with an Attorney, which I am not!

Earnest Money, how much?

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Sat, 06 Dec 2008 10:48:17 -0600

When listing your home, you should always ask for Earnest Money. Now the question becomes, just how much Earnest Money should you ask for well, let me share some insight with you.

Make the buyer think twice about backing out:
1. Simply put, you need to have the buyer pay enough Earnest Money that it would act to discourage him from backing out of the contract. If the buyer only puts down $250.00 of Earnest Money on a $100,000.00 home, do you really thing that is enough to make him think twice about backing out of the purchase, I don't think so. Where as, $1,000.00 Earnest Money on a $100,000.00 would cause any purchaser to give it some serious thought before he deiced to precipitously back out. The key to remember here is, Earnest Money is applied to the buyer's benefit upon closing so, whatever he puts down now will go to pay his any monies he needs to close the deal. In short, the more Earnest Money, the more of a commitment the buyer has to close the deal.
Compensation for taking the property off the market:
1. If you didn't reserve the right to continue to market the property during negotiations and execution of the Purchase and Sale Agreement then, during this time, your home should be off the market and placed in "Pending" status. Earnest Money should be enough to act as compensation to you and your Realtor if during this down time the buyer decides to back out and you are holding a home that was off the market for 10-20 days to execute the agreement.
Earnest Money should cover any and all expenses you might incur if the buyer decides to back out:
1. Well, this point can cause some disention in the ranks because, many people realize that if they follow this rule then the amount of Earnest Money could sky rocket. True, that is possible so, you and your Realtor will need to have a heart to heart discussion about staying competitive in your market while still being able to cover any expenses you might incur. For the purposes of this discussion, I am making this point simply to educate you, not to suggest that on a $100,000.00 home you ask for $20,000.00 Earnest Money. In this economy and this local market, here in Nashville, that would be unreasonable and you would never get a showing.

So, all in all, Earnest money does 3 things.

•1. Signifies to the Seller the level of realized interest the buyer has in the property.

•2. Compensates the Seller for the time the property is off the market during the execution of the agreement

•3. Covers all expenses the seller incurs if the buyer backs out.

Don't be bashful when asking for Earnest Money. It is a delicate balance between covering the three points above and staying competitive in your market. An experienced Realtor can truly help here and their knowledge and expertise will be invaluable. Good luck.

Immediately, without cost, without probate....Joint Tenancy the way to go.

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Fri, 05 Dec 2008 14:02:48 -0600

First off, I am not an Attorney so any opinion I offer is just that, my opinion and should not be considered legal advice. I am a Realtor working and living in Tennessee.

Ok, in this day and age with Domestic Partnerships on the rise, the discussion on what Joint Tenancy is and how it works is becoming more and more common place for Realtors to know. Now, before I get into details about Joint Tenancy, let me clarify just exactly what it is.

Joint Tenancy is when 2 or more people share ownership or real estate or other property. When 2 or more people own property as Joint Tenants and one owner dies, the other owners automatically own the deceased owner's share. ...Because of the Right of Survivorship, no will is required to transfer the property; it goes directly to the surviving joint tenants without delay and cost of probate.

(Provided by Nolo.com)

So, how does one enter into a Joint Tenancy?

Automatically Joint Tenants: The most common use of Automatic Joint Tenants is if you are a legally recognized married couple. Your state may have laws that when you buy a home, you are automatically entered into that purchase as Joint Tenants. If you don't want this type of Tenancy, it will be very important for you to notify your Closing Agent / Title Agent when you are prepared to close the deal.
Requesting Joint Tenant Ownership: For Domestic Partnerships....of any kind, Mother and Daughter, Son and Father, Lifestyle Partners, or any other combination of 2 or more people who share ownership of a property, it may be important for you to ask for Joint Tenant Ownership. In situations where you are not automatically given the Joint Tenant status and, your Title Agent or Closing Agent doesn't ask, then they will follow the instructions of the lender (if one is involved) and, may not provide your spouse, mother, father, son, daughter, significant other or business partner, the Right of Survivorship.

The key to Joint Tenancy is The Right of Survivorship, to the best of my knowledge, Joint Tenancy is the only way to hold property with more than one person and be able to provide them with the Right of Survivorship without a will. Specifically what The Right of Survivorship means is, if you die, your Survivors will inherit your owner share equitably, immediately, without cost and without probate....no questions asked.

**Special Note**

In many states, if not all of them, a Joint Tenancy Right of Survivorship will override any will. So, for example, if Grandpa George dies and his surviving wife is the other "Joint Tenant", she automatically owns the home, immediately, without cost and without probate......even though Grandpa George wrote in his will that he was leaving the house to his 25 year old mistress, Angeline. So, check your deeds people and make sure it is set up the way you want it.

Is the Refrigirator included?

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Wed, 03 Dec 2008 13:23:10 -0600

A fixture is Personal Property that has been so affixed to land or a building that by law, it becomes part of the real property. (Modern Real Estate Practice 17 Edition)

To help you understand this a bit better, let me give you some examples of what a "fixture" is.....

•1. Heating and cooling system.

•2. Kitchen cabinets.

•3. Built in entertainment cabinetry or built in electronic systems.

•4. Anything that has been added as a permanent part of the building is considered a fixture.

To help you determine if personal property is a fixture a simple test can be done to determine the intent, they are.......

•1. Method of Annexation: Was the Personal Property installed in such away that it was meant to be permanent. Just ask, "Can we remove the Personal Property without damaging the surrounding property?" If the answer is No, then most likely, it is a fixture and should be conveyed with the property.

•2. Adaptation to real estate: How is the Personal Property being used? A great example is your refrigerator. Many would consider this item as Personal Property however, that wouldn't be the case if the refrigerator was designed to un-questionably match the cabinets. In many high end homes, the appliances are styled in such a way that they hide and appear as part of the actual cabinets.

•3. Agreement: What did the parties involved agree to? What was stated in the Purchase and Sale Agreement as to what would and would not convey. If you ever have a question that something is or isn't a fixture.....it's always important to list it out in the Purchase and Sale Agreement if you want to ensure you get it.

The ultimate lesson here is Test 1 (Method of Annexation) and Test 2 (Adaptation to real estate) is subjective at best. I can say that with confidence because the truth of the matter is that courts have been very inconsistent with their rulings. Most of the time, they rely on Test 3 (Agreement), I can't stress how important it is, if you want it, you better include it in the Purchase and Sale Agreement.

BSG3, are they legit?

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Fri, 28 Nov 2008 11:25:23 -0600

Ok, so here it is, another lead generation site offering Realtors leads for a monthly charge but, does it work. I normally wouldn't blog about these types of sites however, I also run a website, www.REOPro.NING.com and some of my members have contacted me wanting to know, what this BSG3 is all about. Because, I don't have any personal experience with them, I am relying on the AR community to spill the beans.

Now, so I am clear, I have not joined BSG3 and, not until I start hearing some good things about them will I consider joining them. So, please share with me your thoughts on BSG3, I would like to know.....

Is it worth the cost, more specifically how long did it take you to recoup your investment?
How much did you invest, apparently they have different plan levels so what level do you have?
Is the customer service good or is it poor?
On average, how successful are you at obtaining closings from the leads you get?
Are you a full time Realtor?

Ok, so you got an idea of what I am looking for.....thanks again.

REO Education...Promises Business....Yeah Right!

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Fri, 31 Oct 2008 14:58:40 -0500

I got contacted today from a Real Estate Education company who claims that they can give me more business by completing their REO designation course. I mentioned to them that I already had a Default Designation from www.RealEstateEducate.com and I asked them what was so special about their designation. Well, the short of it, not much and I discovered a truth that I knew but, didn't really completely realize and that is, many of these REO Education companies are nothing more than Lead Generation companies. If you want to know how I feel about Lead Generation companies, you should click this link and read my blog Lead Generation Shams! Are you paying?

Well, I asked, "can you guarantee me business" and of course, I knew they couldn't and truthfully, I wasn't looking for them to say yes but, something amazing happened....he hung up on me. So, I guess these companies are getting a clue and that is, us Realtors are getting smarter about what they are really offering and that is NOTHING!

Now, I am going to toot my own horn a bit because, no one else will however, I manage a REO Professional Agent website, www.REOPro.NING.com with over 400 members. FYI: you can join to, it's free, just go on line and follow the instructions to become a member........now back on task.

If someone out their runs a legitimate REO Education site or business, one that offers it's graduates real business where they only ask for a fee or charge upon the closing of the sale, then call me because, not only will I sign up but, I will promote the heck out of you on my site www.REOPro.NING.com. For the rest of all you, "Learn REO in an hour" or "We have a list of REO companies once you graduate our program" I say, "GO DIG FOR TREASURE FROM SOME OTHER SUCKER" because I am not falling for it.

Short Sale approvals slow on belief Government Bail Out is on it's way!

Jesus (Jesse) Gonzalez, RDCPro (The Realty Association) — Wed, 29 Oct 2008 12:23:15 -0500

It's true, some banks are thinking that it might be best to hold onto properties acquire the additional debt, on speculation that a bail out is coming their way.

For Realtors who work Short Sales, this isn't good news. Truth is, anything that delays an already long and exhausting closing period does nothing for building consumer confidence as well as anyone's bottom line.

For homeowners who are hoping to utilize the Short Sale as a Foreclosure Avoidance option, these delays on speculation could force homeowners into foreclosure or at the very least make them wish they just abandoned the property all together.

For Buyer's this is a nightmare. The closing process is already long enough and additional delay is going to cause many to simply pack up and move on to the next property.

Last but, not least, for banks, this could end up being a huge mess because of the mounting debt. I have got to wonder, what happens if no bail out comes?

So, it is my opinion that banks who are holding off negotiating deals based on pure speculation that a bail out is coming, is a waste of everyone's time, money and energy.

It could be that the bank would make more money if they would out source their Loss Mitigation Departments to Cleo's Psychic hotline where they can attempt to forecast who is at more risk of financial ruin, their clients or themselves.