Special offer

“Hurry up and wait!” “Our way or the highway!” “Take it or leave it!” Would you want to do business with someone with THAT attitude?

By
Real Estate Broker/Owner with Richard Weisser Realty

 

Home for sale Bureaucracy is not a pleasant word. How is it that we have come to the point where we passively accept inadequacy when it comes to ANYTHING managed by government?

I am specifically speaking of selling HUD homes. The United States of America owns a ton of homes, and ostensibly there is a mandate to liquidate the inventory, preferably to owner occupants.

And yet HUD makes it as difficult as possible for a real estate agent to actually to participate in this mutually beneficial endeavor. Like any bureaucracy, HUD’s stance in “our way or the highway.”

Never mind that electronic signatures are valid or most states, or that facsimile notice is legally binding. HUD still requires blue ink contracts on their cryptic forms and demand that any correction be the same. It can cost an agent hundreds of dollars in overnight fees just to get the paperwork completed.

Also HUD in inflexible with its rules, yet rarely adheres to them on their side. We frequently have to resubmit contracts with shorter closing timeframes only to have the closing agent continually wanting extensions because they cannot clear title on time.

HUD recommends that every buyer gets an inspection on the property, and yet they make it nearly impossible to do so. Getting a property de-winterized and utilities turned on is an arduous and time consuming chore.

I am taking this opportunity to offer my assistance to the Department of Housing and Urban Development. If the government really wants to sell these homes quickly and at a fair price, please work with the real estate agents in the field and ask for our feedback!

We are out there every day and know how things SHOULD work. The compensation that we receive is predicated on a successful close of the transaction.

And not on creating more "busy" work.

 

Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Harry...

Theoretically, the property disposition is handled by private contractors or asset managers. However, their hands are tied by HUD, and they must implement procedures that are demanded by the ultimate seller.

I am quite certain that these contractors would LOVE a little more latitude!

Feb 09, 2011 12:27 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Richard, After I left the Navy I swore I'd never work for the government again.  The details in your post just illustrate why!  Bill

Feb 09, 2011 12:36 AM
Tony Morganti
RE/MAX Crossroads in Cuyahoga Falls and Stow, Ohio - Cuyahoga Falls, OH
CRS, ABR, SRES - Cuyahoga Falls, Stow

Richard - good post.  I think we can all agree this is something that needs fixing in the worst way.  This should be privatized and if it were, things would get handled much more efficiently.  It makes you wonder if they have the ability to think on their feet over there.

Feb 09, 2011 12:52 AM
Deborah Byron Leffler BzyBee Real Estate Lady!
Keller Williams Realty Boise - Nampa, ID

Richard so very true....we had HUD come to talk to us...as well as the new servicer!   Despite all of our complaints they still won't budge on rules...even though they claim that they look at the overall picture and do what is "common sense"  yeah right!    We have our Washington DC boys looking into it as well!   Especially the substandard service we receive from thier out of state title company!   Dont' even get me started on that one!    uugghhh

Feb 09, 2011 01:01 AM
Diane Osowiecki
Diane O and Friends - Benchmark Realty - Franklin, TN
Greater Nashville Real Estate

Yes HUD is not the best to work with...but lets all face facts...it is not like the banks are doing any better with foreclosures.  They too, want their forms completed their way and utilities....we don't need no stinkin utilities.  I have found HUD no worse to work with then our friends at Bank of America.

Feb 09, 2011 01:02 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

It's the old...'Do as I say not as I do' double standard. 

Feb 09, 2011 01:06 AM
Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

Richard:       SERIOUSLY     you should send this post to President Obama. We as Americans can send the Prez mail yet most people do not. You have a great point and it should be pointed out to him. He is great with electronics you should just email it to him.

There is a good chance he doesn't even know this problem exist!

I DOUBLE DARE YOU!!!!   ;0)

Feb 09, 2011 01:14 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Getting the government to ask for help at this point is near impossible Richard but if you come up with solutions and allow them think it's their idea...they may be me more cooperative.

Feb 09, 2011 01:19 AM
Connie Goodrich
Keller Williams Realty - McKinney, TX
CRS ABR (McKinney Realtor)Texas

I'd love it Richard if they took you up on their offer .. employ Common Sense rather than job justifying busy work to keep the HUD staff with jobs and of course the time & organization to a below standard level.  I feel your frustration it is a pitifully run embarrassment.

Feb 09, 2011 01:25 AM
Christina ONeal
At Home Real Estate Group - Ripon, CA
Realtor - Ripon California

HUD homes are pretty funny around here too.  They did just recently change it in our area, where they hired multiple local agents to sell those HUD homes.  They still have the wacky rules though.

Feb 09, 2011 02:10 AM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

I haven't had a chance to work with our new servicer, but the one and only phone call was not pleasant. And yes, the overnighting can get expensive with a HUD sale!

Feb 09, 2011 02:26 AM
Laura Reilly
Real Living Real Estate Professionals - Redding, CA
Home Sales Realtor - Short Sale Team Member - Redd

About the time HUD figures it out. Well be over it.

Feb 09, 2011 02:28 AM
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

Richard,

Whatever happened to the paperwork REDUCTION Act that was supposed to cut out a lot of the paper?  Oh I know they didn't talk about the RED Tape being reduced.

Feb 09, 2011 02:46 AM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond
Wouldn't it be great to have someone from HUD contact you Richard...you are the go to guy here...let's get some muscle going with this group to make some positive movement with the government on this one.
Feb 09, 2011 03:01 AM
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

Goodness yes!  What great simple and practical advice.  And that is precisely why HUD will not make these changes.  Way too much common sense!

Feb 09, 2011 03:30 AM
Lee & Pamela St. Peter
Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522 - Raleigh, NC
Making Connections to Success in Real Estate

I've not done a HUD sale in a while Richard, but it doesn't matter whether it's a HUD or a banked own REO, or a short sale.  It's all the same.  Different standards.  Good for you for offering your assistance... let us know if they take you up on it!!! :)

P.S - Thanks too for the CB...  hope all is well.  Will try and reach you next week!

Feb 09, 2011 04:13 AM
Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Richard,

If anybody can take on the feds, it's you. Of course, now I might have to learn how to bake a cake with a file and it.

Rich

Feb 09, 2011 07:40 AM
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

I couldn't agree more!  It amazes me that it can take them a week or more to send a signed contract and they still expect the deal to close within 30 days.  We can't start the appraisal order until we have that signed contract!

Feb 09, 2011 12:40 PM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

If I recall correctly your previous HUD post got someone at HUD's attention - perhaps again!

Feb 10, 2011 12:29 AM
Thomas McCombs
Century 21 HomeStar - Akron, OH

Where do I buy a ticket to get a ride on your common sense train? 

I will gladly sign a petition to help attract the attention of the HUD powers-that-be.

Feb 18, 2011 01:19 AM