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BANKS IN THE REAL ESTATE BUSINESS???? ASK ACTIVERAIN MEMBERS!

By Lenn Harley

Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

March 27, 2008 01:13 AM

BANKS IN REAL ESTATE?? Banks are in real estate. They manage Short Sales in their Loss Mitigation Departments. How's that working out??

A recently posted article about Short Sales generated some wonderful insightful, interesting and helpful comments from members. Thanks to all who contributed.

One of the comments was from Sara Homan and it is so funny, it needs to be shared. In fact, it brings up an entirely new subject for comments, "Banks in the Real Estate Business".

Sara wrote: "What really gets me is that the banks want into the RE business! Haven't they made enough of a mess?"

Now, I'm just thinking here. Let's see. What would a bank in the real estate business name that department?

Property Asset Mitigation Department
Depositor Asset Disposal Department
Real Estate Asset Disposal Department
Real Estate Equity Transfer Department
Structural Asset Disposal Department
Short Sale Listings Management

WANTED: Clerk. Local bank seeks part time personnel for branch office for new Real Estate Department. Seeking People Person. Hours 9:00 a.m. to 2:00 p.m. Tues. through Fri., 9:00 a.m. to Noon, Sat.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.

Map of area showing homes for
sale in Maryland and Virginia
covered by the Homefinders.com
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Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Stephen. We have no argument. Once real estate companies owned mortgage companies, it's open season.

Kent. True. They are far more "retail" than ever.

JoEllen. Sad but the "loss mitigation" clerks have little understanding of the real estate processes.

Marie. I believe that was Sara's thought too.

Mike. Take a "patience pill" before you take on a listing or sale.

Fran. True. National banks were regulated out and they could be regulated back in.

Joey. The thought of going to a bank for real estate transactions is daunting.

Mar 27, 2008 02:36 AM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

So would I Jason. So would I. In fact, they could easily use their capital to finance their operations. The table would be stacked in their favor as it is now with mortgage lending.

Mar 27, 2008 03:00 AM

William Johnson

Retired - La Jolla, CA

Retired

Hi Lenn, A good one. I won't get into the diatribe of my efforts in this regard while I served as a Federal District Coordinator to a Congress Representative but you did leave out the fact that banks already have been in the real estate business and it was one of their main arguments in favor of Congress approving their expansion. Trust Departments. The Real Estate Industry ,myself included and the Banks view this activity differently. Meanwhile..........

Mar 27, 2008 04:09 AM

Broker Nick

South Florida Real Estate & Development, Inc. - Coconut Creek, FL

Broker Nick Relocation Broker Service

Banks are hiring inexperienced loan officers who can't even do a GFE. Let alone do a real estate transaction. More and more people are appreciating realtors, because we do protect the public.

Mar 27, 2008 04:20 AM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

William. You are correct, of course. However, without going into the detailed differences between state chartered and federally chartered banks and the different abilities of each, it is just simpler to address the part of the matter than REALTORS understand. The rest is definately above my pay grade. Perhaps you should take it on.

Nicholas. Thanks for commenting. I don't believe the average agent who has dealt with short sales in the past year or so are interested in much that banks offer other than depository and credit services.

I use the term "banks" generically. I usually mean mortgage companies.

Mar 27, 2008 04:47 AM

Joan Whitebook

BHG The Masiello Group - Nashua, NH

Consumer Focused Real Estate Services

I brought this up with a couple of my banking friends -- and they state the banks are going to hire top notch realtors and that they will be paid a salary and benefits etc. -- They also argue, that plenty of the large realty companies are in the mortgage business themselves -- Hmmm What do you think about those arguments?

Mar 27, 2008 05:47 AM

Anona Large

Realty Executives Associates - Oak Ridge, TN

Oak Ridge, TN Real Estate

As an agent, I already have a hard time with many "banks" as the quality of the service must be kept up by me, the agent. I can't of course keep up their quality, but I can and do help pick up their mess. So how in the world would a transaction look like if they were doing the real estate business also?

Have a Fabulous Real Estate Day!

Anona

Mar 27, 2008 06:00 AM

Joan Mirantz

Homequest Real Estate - Concord, NH

Realtor, GRI, CBR, SRES - Concord New Hampshire

The second part of Joan's statement is what we should be worried about! They have been trying to open the door for years and we have invited them in with the close association the larger firms have to some. The appearance is definately not one of independant choice...the appearance is that of steering. I believe it is a slippery slope and the Real Estate Commission should be taking a long hard look...we are handing them the ammunition for their argument!

Mar 27, 2008 06:05 AM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Joan. I cringe when I think of the real estate companies that own mortgage companies, although they are NOT in the banking business. Most are brokers. But, it doesn't help our argument. Hey, I don't want banks in real estate and I don't want real estate brokers in the mortgage business, or title business, or home inspection business, or. . . . . . .

Aoana. Hopefully, we won't find out.

Mar 27, 2008 06:14 AM

Marilyn Katz

Berkshire Hathaway HomeServices New England Properties - Westport, CT

ABR, e-PRO - WestportCTProperties.com

Wanted: Someone to work our Asset Short Sales off.

Mar 27, 2008 08:06 AM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Lenn, It would actually be a good time for the banks to get into real estate. They would dominate the active listings market. At least in my area. Maybe you are on to something here.

Mar 27, 2008 09:48 AM

Jim Crawford

Long & Foster - Fredericksburg, VA

Jim Crawford Broker Associate Fredericksburg VA

So true! We has several days of very rought negotiations that unfortunatle did not work out, but the phones rang well past 10 PM and started at 7:30 AM! No one in a bank is going to work past 5PM and work only Mon - Fri!

Mar 27, 2008 10:05 AM

Gene Wunderlich

1st Action Real Estate - Murrieta, CA

Realtor & Legislative Liaison

I've always been of a mixed mind when it comes to the NAR battle against banks being in RE. On the one hand, I understand what we're trying to do, on the other hand - banks are already in real estate to some extent. I think the whole current situation is a plot by banks to wrest control of a large percentage of the RE market and then one day they'll just announce - Hey, here we are. Thay've done such a spectacular job managing their own I'm sure they'll do great expanding into ours.

Mar 27, 2008 10:40 AM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Gene. That's funny. Considering the trouble banks and mortgage companies have been in the mortgage crisis, I suspect that they've lost a bit of support for the feds going into real estate.

Mar 27, 2008 11:53 AM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Jim. I love it. Banker's hours for real estate sales. I just referred two buyers between 7:00 and 8:00 p.m. Show me a banker working now.

Bryant. That's funny. The way I see it, they deserve the Kissimmee real estate market.

Mar 27, 2008 12:29 PM

Colleen Fischesser Northwest Property Shop

NextHome Experience - Chelan, WA

A Tradition of Trust in the Pacific NW since 1990!

Ok, let's see, press 1 to visit the showing department, 2 for information on open houses, 3 for an over the phone market analysis.....want to talk to a real person? Please hang up and try again later.

Yah...it's a nightmare I don't even want to contemplate

Mar 27, 2008 12:39 PM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Colleen. Funny. Can you imagine dropping into your local branch for real estate info? They would give you a card for the "real estate person" to make an appointment. Kind of like their mortgage guys.

Mar 27, 2008 01:01 PM

Katerina Gasset

The Gasset Group & Get It Done For Me Virtual Services - Provo, UT

Amplify Your Real Estate & Life Dreams!

Lenn, this is exactly why banks should not be in the real estate business! This is SO funny,the subject- it is not funny, but the way you wrote it is.

Mar 27, 2008 01:08 PM

Ray Nellum

Envision Real Estate Group, LLC. - Fort Smith, AR

Fort Smith Real Estate

Lenn, I don't think banks in real estate would be a good idea. They don't realize what we do in our profession. With some banker hours, they couldn't handle it, lol.

Mar 27, 2008 03:48 PM

Karen Monsour

Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL

REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

I'm a Realtor(R), perhap's I'll ask them for a desk right inside the front door...geeze, that might be a great idea...off to see if they'll give me one tomorrow...yes, no, maybe Lenn?

Mar 27, 2008 04:18 PM

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