DANGER, DANGER WILL ROBINSON - THE BANKS ARE GETTING INTO REAL ESTATE THROUGH THE BACK DOOR - SHORT SALES!!

Lenn- while I'm not a Realtor this affects so many people and I don't like to see sellers being backed up against a wall.  I agree with the way its written it looks as if a seller would have to use the recommended agent if they want the short sale.  I'm putting links to this on my FB and Twitter for you.

Lenn:  I love that you in particular made the effort to sound the warning regarding this news.  MORE people will see it and be aware.  I do have to say though ... none of us should be surprised at this.  Let me see.  A bank trying to find another new angle to turn lemons into lemonade money and profit for themselves?  At their clients' expense?? 

What galls me about this too, is two-fold.  There will be either:   fellow industry members ready, willing, and able to throw their brother-agents to the wolves ... and lining-up at the doors of the banks to be listed as their preferred agent at reduced prices and commissions.  Or just as we are finding currently within the lending end of it, the banks will somehow circumvent the licensing needs and etc. of agent representatives allowed to "sell" the properties.  Lenders working for the big banks do not need to be licensed, have the same education, be fingerprinted, or have their credit checked.  Will we see the same occur with these agents??   If so, we know how that typically plays out for consumers.

Sound the alarm Lenn ...  people need to be aware.  Action needs to be taken ...

Gene

Lenn - Thought provoking post.  This issue is just another example of challenges and issues that will face the ever changing real estate industry.  I wonder what things will look like in 10 years?

And it looks like the banks will be in the business for years to come !!!!!!!!!

Lenn, this comes as no surprise. Banks have been trying their best to get into the real estate business for years. And... everytime tha have had a major hand in trhe business we've ended up with disastrous consequences. I started in this profession during the S&L crises and if that was not enough to make everyone sit up and realize that it will never work...well, what am I saying...Looking at the current mess!

Banks will never stop trying and we should always do our best to support efforts to the contrary!

Lenn, perhaps for those Realtors who have worked a short sale in the recent past, with no results/an expiration, the time is right to contact former clients, and make clear that short sale services are still offered- and the $20k or whatever it is will apply- "the list" isn't required for the $20k.  Time to hit the phone.

Lenn, 

OMG! It is mind boggling to say the least.  I love all the things I learn here, if even I don't love the news!

All the best, Michelle

Hi Lenn-no I have not heard of this either-soon the banks will just get brokers licenses and put us all out of business

These banks are the major players who control most of the loans now out.

Citi, for example, is teaming up with Keller Williams. The other big banks are doing the same thing with other major players, or so I believe.

Since I never take listings I would not get any of the leads anyway, but my buyers will certainly benefit by considering short sales by these banks, because the banks have in essence guaranteed the seller $$$$ to do a short sale. They will then not come along and screw up the short sale, like they do now. That would just make no sense.

More short sales lead to less foreclosures, that are often abandoned wrecks. That can't be a bad thing.

Distressed sellers win. Buyers get more choices of distressed yet clean, still lived in, unwrecked houses.

There is always another side to any story.

I'm sorry, aren't there enough bank-owned realtor out there selling their REOs.  They now want to spread their incompetence thinner into a bigger pool????

First - it disgust me that after months and months of delays the lenders now will come and pay an incentive for the homeowner to move.  $20k - $30k wouldn't that be great to help homeowners come current and keep their homes.

Second - Where are our Realtor Assocations Leaders?  NAR, CAR, OCAR here in California.  NAR approved a 50% increase and yet this stuff still continues to go on.

The only advise the lenders should be giving their customers is to get speak to multiple Realtors who can best represent their interest.

Thanks Lenn,

One of my clients actually gave me one of these letters from Citimortgage that does indeed have 6 Suggested REO Agents to use for a short sale and an offer that "They May Receive up to $3,500 in Relocation Assistance"..

There is a disclosure -- From the Letter:

"For Your Convenience and for Informational purposes only, we have included the folowing list of real estate agents* in your area. Please remember, this information should not be considered an endorsement or recommendation by CitiMortgage for any specific real estate agent or agents. You may use the real estate agent of your choice."

Six Agents and their Brokerages Listed that all appear to be REO agents from what I know.

At the Bottom of the Letter:

* CitiMortgage is not affiliated with the real estate agents listed above. We take no responsibility for and make no guarantees regrarding the quality of the services you will receive.