My Dad once said, "Ben, it doesn't matter if you were in the right when you're dead." We were talking about driving. I had complained about some moron driver who didn't yield when I had the right of way. It was a good point. You can obey all the laws and have the right of way. But, if another driver runs the stop sign and hits your car, it doesn't matter. Being right won't stop a crash. Same thing with short sales.
We can have our opinions about the banks. We can complain about how they lose their investor's money. We can do all of this. But, it doesn't really matter if they don't care. The people at the banks are in control of the system. They think they are in the right. It's those stupid agents trying to sell those short sales to cheap. From their perspective the reason short sales don't sell is because we have a lousy marketing plan. It's not because buyers don't like short sales. I've vented about how horrible short sales are to my friends. They look at me like I've lost my mind. Maybe I'm just passionate. I think it was because of my upbringing. I come from a family of 10 kids. It was hard to "be heard" growing up. We'd be at the dinner table and everyone would be talking.
I might have something I wanted to say. But, if you waited until everyone else had finished talking, you'd never be able to speak. You had to interrupt to get a word in edgewise. That's why I tend to say things with more passion compared to most people. Here is my idea.
In a real business, when an employee makes a decision that loses the company $180,000 heads will roll. Someone is getting chewed out or fired. I remember a buyer I had who ran a restaurant. An employee had left some chicken out overnight and it spoiled. They lost $800. That employee probably got chewed out. Maybe even fired. But, these bank negotiators lose Fannie Mae $180,000 and nothing happens. It's business as usual. Pathetic, isn't it?
We need to get out of venting to just people who are in the business. They already know we have a problem. But, my friends don't know about the problems. In fact, I had to demand my wife close down her Bank of America checking account. I told her it would look bad if I'm protesting BOA and my own wife has an account with them. She thought I was nuts. Just goes to illustrate how two different, rational people can look at the same issue and come to different conclusions.
We need to show the American Public solid examples of how they are losing money. Here is my proposal. I just registered the domain: bankfailblog.com. I am going to start posting real, solid, true examples of banks losing their shirts because they turned down a short sale. I'll put the negotiators name on there. I'll put the bank's name. I'll show who the investor is and an estimate of how much money was lost. So, send me your examples of losses.
Here is an example of a post.
Wells Fargo fail. (The CEO of Wells Fargo is John Stumpf)
Wells Fargo did not own the loan. It appears the owners were the Certificate Holders of the Deutsche Alt-B Securities Mortgage Loan Trust, Series 2006-AB4.
Here's what happened: We took over a short sale from another agent. A buyer came along willing to pay 150k. They had been told they could buy it at that price for 150k, because the owner owed less than that. When they found out it was a short sale they decided to walk. This was because they didn't want to wait for 90 days. We told them they could buy it for 140k, if they waited for the 90 days. They decided to stay on board. Wells Fargo accepted the short sale, but countered at a price of $141,500. I'm not naming the negotiator because they didn't cause the loss, the Wells Fargo system did. Estimate of money lost: $8,500.
Here is what you need to do. Send me your fails. My tech guy is setting up the blog. We are going to simply start posting these things online. If a negotiator breaks the rules, and as a result their investor loses money, we will put their name up there. Everything on this blog will be an opinion. Nothing will be claimed as factual. It is simply the agent's opinion of the amount of money lost. After a little while, short sales will start to change.
You can tell the negotiator, "Turn down this offer at your own risk. If you fail, and the house sells for less money, then I will put the entire story up on Bank Fail Blog. The investor on this loan will know about the mistake." I think this will help our cause. People who have better information will make better decisions. All we are doing is making a track record of these bank's decisions.
Here is an example of how this works. I have some economics knowledge in my brain. I just don't know how to explain the theories as well as an economist. To quote Wikipedia: "Pollution can be a simple example of market failure. If costs of pollution from a factory is not borne by the factory owner, but are borne by the workers, people in the community, or others, then prices are distorted."
Basically, the factory can pollute at will.
If I take the same sentence and change it to banks, then it would go like this. "Negligence and incompetence can be a simple example of market failure. If a $180,000 loss on a single house are not borne by Bank of America, or the negotiator, but are borne by Fannie Mae and the American Public, then the decision making process is distorted."
This will make it easier for Fannie Mae, Freddie Mac, and the American People to make better decisions on short sales and the short sale process.
So, please send me your bank failures to bankfailblog@gmail.com .
View the Bank Fail Blog at http://www.BankFailBlog.com.
Submit your Bank Failure Examples to the Bank Fail Blog by sending your example to bankfailblog@gmail.com .
Got questions about short sales? Just ask... Gotta run. Make it a great day.
Ben & Chris Curry The Short Sale Agent's Advocate
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