Home : Blogs : Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc : Broker Bryant's Real Estate Ramblings

Subprime lenders, liars, cheaters and "The Man".

Hey, has any one heard about the subprime lending crisis? OK, I guess you probably have. From what I understand, this crisis, we are going through right now, is due to all the lowlife, lying and cheating Mortgage Brokers that had saturated our business over the last few years looking to pad their wallets with the blood sweat and tears of the working class. They have been working in conjunction with money grubbing REALTORS® who have driven property values to all time highs by coercing the consumer into purchasing above their means. And "The Man" has sat idly by sucking the average Joe dry in increased property taxes while raising insurance rates to subsidizing the super wealthy who want to live on the San Andreas fault and opening the flood gates of evil money to anyone that could breath and sign on the dotted line.

OK, OK!!!!! I'M JUST KIDDING! Maybe?

Anyway, this post is not about who's responsible and how it all happened, this post is about what we can do to keep our heads above water while the storm passes.

First, let's start with the easy one, Buyers: If you want a piece of the American dream, here are a few steps you can take, to help you achieve your goal.

Save your money. If you are currently renting for $1,000 a month, but want to purchase in the future, then find out how much home ownership will cost you per month, subtract $1,000 and start saving the difference. This will do two things for you. First, it will discipline you to be able to pay the higher price of home ownership. Secondly, it will provide you with a down payment when you are ready to purchase. If you can't afford to start saving the difference, then you are not ready to purchase a home. Simple.

Work on your credit issues. If your FICO score is below 660, you have some work to do. Find a qualified credit counselor, make a plan and stick to it. If you are not able to do this, then you are not ready to purchase a home.

Owning a home is NOT an entitlement. It requires hard work and planning. BUT if you are able to put in the effort, you CAN be a homeowner within 24 months. If not, well, I have rental for you. You can pay my mortgage.

OK Sellers, your turn:

If you don't need to sell, then take your property off the market. You will not get "lucky" in this market and you may very well have to "give your house away". If you can wait, wait. Enjoy your home. Do some gardening and some painting. Make it look fresh and enjoy it. Hey, at least you have a home. Go dish out some food at the homeless shelter and thank God, everyday, for your blessings.

If you need to sale, find a qualified REALTOR® and take their advice. In this market it's all about the price. Look at the bright side, if you have to under sale your house, you should be able to make it up on the buying side. Don't let this market scare you, just be smart. Houses are STILL selling.

Now let's see...........who did I leave out? Oh I know...REALTORS®!!!

Learn your market. You must become an expert at pricing. In this more difficult market, there is no room for "Zestimates". Just thought I would throw that in there. But seriously, pricing is the key in this market. Get it right and your Sellers will love you. Get it wrong and....well, I'll come behind you and get it right.

Increase your listing inventory. Now is an excellent time to increase inventory. The more inventory you have, the better chance you have, of getting some homes sold. It's also beneficial for your Sellers. Listings attract Buyers. Just make sure your inventory is priced properly and the Sellers need to sell.

Increase your advertising budget. For some reason, REALTORS® make the big mistake, of decreasing marketing dollars, when times are slow. Don't do it!!! Now's the time to spend some serious bucks to generate those listings and Buyers you need. "But Broker Bryant I'm not making any money" Well, what did you do with all the money you made in 2004 And 2005? Spent it? Rookie!!

If you have Buyers that have been pushed out of the market, don't abandon them, help them with the Buyer steps I outlined above. Get them on a plan and call them every now and then to make sure they are on track. Help them when they are ready in a couple of years. Why not? Are you going somewhere? Real Estate is about building long term relationships. If you haven't been doing that, now is a great time to start.

And...Subprime Mortgage Brokers...May I please have...two all beef patties, special sauce, lettuce, cheese, pickles, onions on sesame seed bun.

OK, this post is getting too long, so, I'm going to stop here. Folks, maybe the things I just mentioned are harsh but so what? Real Estate and home ownership is not a child's game. It needs to be taken seriously. So roll up your sleeves put on your work boots and let's go help some folks get through this difficult market. I know I will. How about you?

Posted by Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc on 03/15/2007 02:58 PM

Comments (82)

subprime, opinion

This post has been included in Florida Information Osceola County, FL Information Poinciana, FL Information

82 Comments on Subprime lenders, liars, cheaters and "The Man".

MAR

2007

Reserved Parking For "The Lovely Wife"...TLW...ROAR!

Hubba! Bubba! Wink. Wink. I looooooove it. But you knew that. Please say NEXT now :)

This is my comment:

Need I say more? Thought not. SVW (smiling very wide) ROAR!

The old "blame game". Happens every time someone gets caught with their hand in someone's pocket, OR caught with their hand OUT.

I just did a 100% loan last week. There is no crisis. There is merely a bit less manipulation of the guidelines. Happens about every 10 years.

Just more depressing news to tell our buyers, where ever they might be!

This all started a vaccum that keeps sucking!

Great post!

Can I stand next to your wife and swoon? :)

This is a great one and I really look forward to you (and TLW's) words of wisdom right now. Splendid :)

AWESOME POST!!

BB,

Great job and you cover Buyers, Sellers, and Realtors! This time of year it is very important to increase your listing inventory. Thats some great advice. BTW, I love "The Man" bit! LOL

Bryant - After reading the first paragraph I though I would have to take your head off, so I guess you drew me in like a moth to light. GREAT post! There is plenty of blame to go along and not everyone responsible played their role with ill intent. Allot of very hard working well meaning Realtors and mortgage brokers got caught up in the hype that everyone deserved to own a home. I like the fact that you focused on solutions, my team and I are doing this everyday.

Thank you,

James

The sub prime crisis is a reflection of the economy. Higher gas prices is acting like a tax on the economy. People have less money to spend each month because they are paying $3 a galloon for gas. There are to many factors to make sub prime lenders as the bad guy. The buyers thought their jobs were safe, the housing market would continue to appreciate and wouldn't have to pay $3 a galloon for gas.

lending was getting out of control...... this HAD to happen.

100% financing for a borrower with a bunch of collections? and, oh, you cant prove your income? just tell us what you make and we wont verify it. no money in the bank? here.... we will roll in the closing costs so you can get your $300 earnest money deposit back..... maybe that way you have a slim chance of making that first payment.

ugh...

Bryant, They say only the strong Survive and I can see why... Is this a front runner to our Environment will our Children pay for our Abuse? Just like we will pay for this ... I posted some numbers last week about the fallout http://activerain.com/blogsview/56430/more-then-1-5

But I like your spin

You gotter down cold there BB! Maybe the days of too-easy credit are over. Who knows? Anyway, good advice in your post.

Jay

Increase your advertising budget --- VERY TRUE. For those who say they can't afford to increase their advertising, the question is "Can you afford NOT to"? Having retired from a business that slowed BEFORE economic downturns and increased BEFORE economic recovery, it takes a discipline to recognize you have no choice but to take steps to increase your market share even as the market itself shrinks. Now, throwing dollars at a nonexistant plan is silly. Have a plan, target your audience, and then position yourself using effective marketing.

An observation about AR these days. Members who used to blog about their market are now blogging about gardening, the weather, vacations, current events, how to blog, and any other topic other than real estate. Go to the dashboard and check out entries over the past few weeks.......guess some either forgot what business they are in or don't want to talk about their market.

My two and a half cents worth

Hey now, I liked it 'till the end. I do conforming and non conforming loans, have been for years now. Most people fall behind on their bill because something happened, not they are being irresposible. (Balieve it or not, I am not being defensive...I re-read this and it kind of sounded that way). But they do have to work for it. Too many lenders got too aggressive. Guideline are going back to where they should be.

Bryant-I searched AR this morning for blogs about the current lending shake-up and what impact it may have on consumers. This is exactly what I was looking for. Thank you and Aloha!

Jay, thanks for stopping by. I will be by the porch shortly for a chit chat. I woke up with this post in my head and had to get it out.

Mitchell, Yep, our attitude right now is get it while we can and let out children and grand children worry about the consequences. We have abused our "privileges"

Tom, I have had folks purchase my listings that have been in foreclosure in 6 months. They must have never made a payment!

Steve, It's called being short sighted. Life always has a way of getting in the way of our best laid plans. If you don't have ANY plan you don't have a chance.

James, Made you look(read)!!!! That was my intent.

Ray, go get you some of those listings!!! They're every where. Don't make me sic "The Man" on you:)

Heather, Thanks for stopping by. I made all this stuff up:)

Renee, Please don't do that to me. I turn 50 in 3 weeks and my heart can't take it:)

Neal, Buyer are out there, it's just you got to go get 'em! Good time for home buying seminars.

Lenn, You and I have both been around long enough to know this is nothing new and shall pass. Heck when I first started selling homes in Poinciana it was normal to take a year to sell a listing.

TLW, I thought I felt a little "light" today.

Unfortunately, sub-prime replaced FHA briefly as the go to loan for many first-time buyers and lenders. FHA is due to adjust their first time buyer programs and the "need" for sub-prime loans will diminish drastically.

I know a business coach who uses a tag line of "making what's important practical" and you just did that. Instead of the MANY resources out there telling us why this happened (and pointing fingers), you offer practical information for the consumer and your peers on how to apply this information in their lives. Thank you.

Great reading!! The first paragraph had me!! Gosh where do we all go from here??

It always amazes me the young couple that calls and say's "Well we filed bankrupt last month but now my husband has a good job." That's when I take the control and do some major counseling!!

What I find sad is what is going to happen. I mean atleast in NY. The blood suckers are going to swoop in to buy the distressed properties from the sellers and they will be taken advantage of. it is so important that the sellers who are about to sell or pending a foreclosure to contact a Realtor that can protect you -

I liked the synopsis of your post Bryant. Education is and always will be key to dealing with any market. As real estate professionals, that is the ultimate service we can deliver to our clients.

On a side note, while I won't sit here and swoon, it does seem you have balls the size of grapefruits:-)

Good tip, other business ramp up marketing during a down turn. Why, it is a great time to gain market share. Some of that maket share will stay with you as condtions get more postive.

Stan, I see you understand the economics of running a good business. A down market is when you MUST increase your efforts. AND when it's a boom market don't stop your advertising because you don't need it. You always have to keep at it. Good observation about the posts lately. OH well, I'll just keep right on writing about Real Estate. Heck, I don't know anything else.

Renee P., I get the same thing with my rentals. "Hey we're being evicted tomorrow can we move right in?"

Betsy, "making what's important practical" I love it!! If I'm anything, I'm practical. No time for finger pointing. That solves nothing.

Michael, FHA still has wonderful products. 3% down and it can be a gift. Sounds like 100% to me:) And I bet they come up with another product to help fill the void.

Tonya(?), Glad this post helped. I too did a search on AR before I wrote this and didn't find but a couple of posts with solutions. and about 50 with "analysis". I don't need analysis. I need a plan.

Ann, Oops!! I'm not talking about GOOD folk like you. But you knew that.

Christine, I received an offer a few weeks ago on one of my "short sale" listings. One of the conditions of the offer was that the buyer(investor) wanted to be the one to negotiate the "short" with lender. Like that will happen on one my listings!!!! My Sellers have also been getting lots of door knockers from folks wanting to "help". Educate your sellers and lock your listings in tight. The sharks are lining up for the feeding frenzy.

Jason, educate, educate, eduacte, educate................It's why we are paid.

Deja, You got it.

I couldn't agree with you more wholeheartedly in reference to sellers taking their homes off the market if they don't need to sell. Can't figure out why they would go through the motions.

Bryant, I gotta tell you the reason I was moved to Florida~my former NY Boss and my ex's boss ~ An insurance broker came down here in early 02 and saw what the market was doing and decided to become a mortgage broker. He opned his new company in late 02, transferred us here in early 03 by the end of 04 the company had gone through 3 names and a number of botched loans, I was divorced, my ex went back north. Now, that former mortgage person is in RE Sales with his 3rd company and I am still with the company I started with 4 yrs ago and the happiest I've ever been. Go Figure?

By the way, I have to echo the sentiments above. I really like the rest of your post also, good advice all the way around.

Great post, my homebuying outline is finished and my powerpoint presentation is almost complete. I'm on to educating, educating and educating some more.

I agree with Ann, the guidelines needed a big revamping.

Homeownership is a responsibility NOT to be taken lightly.

We need to keep our eyes and ears open, there are criminals in our profession contributing to this problem.

http://www.dora.state.co.us/real-estate/pressreleases/Appraiser_%20Fajt_%20Press_%20Release.pdf

Outstanding.....Where do you find the words, each and every time????

You have a way with words and I look forward to your posts each and every day!

Learn your market.- One of the hardest thing for me to find is a realtor capable of evaluating their market. I'm lucky to find someone capable of being able to forward the stats generated by their MLS and emailed out weekly much less know what all the pretty numbers mean. 500,000+ realtors in California makes for a lot of unqualified incompetent people. *I* can (and do) get the numbers and evaluate them (and do), *I* want someone who is also able to do that and not relying on office gossip ("I hear the market is picking up!", my response is always "Show me").

I respect greatly the few realtors I see that are capable of evaualting there local market with stats and personal market observations. (One of the reason Jim Klinge over at bubbleinfo.com is so popular is for this very reason) But unfortunately these people seem to be few and far between. Business being good or bad for a particular Realtor is immaterial, it could just mean they are a good/bad Realtor, Overall business in your market area will tell you what you need to do to get ahead of the curve.

Bryant,

Good advice to prospective buyers. I sent this post to my adult children, so they'll know how to prepare to buy.

Fran

Hey Broker Bryant,

I love reading your posts (as you know) and this one was no exception. It is full of great information for the consumer, but I am sure you knew that.

Thanks for sharing with all of us!

Diane, I withdrew a few of my listings last week. The Sellers and I decided to wait it out. No sense just spinning our wheels and reducing again just wasn't the right thing to do. No need to chase the market downward if you don't have to.

Lysa, hanging in there and sticking with your current job is always a good way to go in my opinion. I know REALTORS that switch brokers every 6 months or so and always have the same results. Hello!!! Maybe it's NOT the office.

Angela, I too think the changes are for the better. It's going to hurt but only for a little while. In the long run less foreclosures has to be a good thing.

Bernie, always has been and always will be. Any profession where big bucks is involved is going to have thieves in it.

Jay, I plagiarise every thing I post:) This post came to me in my sleep last night. I woke up this morning and it was already written in my mind. Took me about 30 minutes to put it in print. I live and breath Real Estate. It's what I do, so I never run out of things to write about.

Mikey, You're so right about that. I work in one community, Poinciana Fl, the market, 10 miles away, can be completely different. I made the decision a long time ago to concentrate my efforts in one market. When I first started selling RE in Poinciana, 13 years ago, there were only 7,000 people. Now there are 67,000 people. So I've been involved in it's growth from the ground up. There are houses in Poinciana that I have sold 3 and 4 times over the years. The truth is no one knows the Poinciana market better than me. Not bragging, it's just a fact.

Fran, that's a good idea. Purchasing a home takes planning. The earlier they start the better prepared they will be.

Caligal, hey I know you!!!! This stuff is not the best of news for the home team. But, I heard through the grapevine, that you have a very good REALTOR(R). And he's sooooooooo good looking, or so I hear. Of course according to TLW I'm a little "light" today:)

EXCELLENT POST as always. I especially liked the advice to buyers to save their money, and if they can't, then they can't afford to buy. Saving is such a rarity in this instant gratification world,.

Hopefully there will be legislation that comes of this to help protect unknowing consumers

Great post and thanks for the advice section for Realtors especially the part about increasing our advertising budget.

Great post, I agree with the advertising and listing build-up!

I LOVE IT! You're a real pisser BB!! That part about not cutting back on your ad dollars made me laugh alot when I got to the comment about "what did you do with the money you made in 2004 & 2005! Funny stuff but oh so true too. This is Real Estate in the Real World..... after all!

Clank, clank, clank, clank. Steel balls?

Just before jumping on AR this evening, Melissa and I were discussing that our inventory needs to increase (it is pretty high anyway) and that we need to find the money to increase our marketing and outreach. This is for client outreach and marketing of our inventory.

We are also pulling all of our rentals off the market.

3 great points.

Lisa, I haven't heard that term in quite a while. I likes it:) Yep, we have to pace our finances in this business. You just never know what's around the corner.

Robert, Thanks for visiting. I've always believed yo have to keep your momentum going. I now there were a lot of folks that stopped advertising when biz was so good and then when things change you have to start over and rebuild momentum. Not good.

Patricia, Ditto my response to Robert.

Ethan, We'll see. I'm not a fan of big government. But we can each do our part to educate the consumer.

Elaine, I have to admit I'm not very good when it comes to saving. I do buy Real Estate though. I figure if I tie it up in property I can't spend it. Not very liquid these days but at least it's there if I ever need to tap into it.

Rich, great minds think alike. I think having lots of inventory in this market is essential. I'm looking to double mine over the next couple of months. Now all I need is buyers!!!! Hopefully with more signs in the grounds and increased buyer ads, the buyers will be soon to follow. I have quite a few Sellers that really need to sell and I have to get it done.

Great points. I agree with Ann that the guidelines got pretty loose. The points you made about what buyers need to do is exactly what I have been telling my folks. In this market, you are going to have to prove that you are ready to buy a home and obtain a mortgage. Buyers/Borrowers need to just realize that and not be offended by what is being told to them and they cant get discouraged. Buying a home takes preparation...and I am glad you said within 24 months you could be ready...because those 24 months prior to purchase are most important. I posted something along that line this morning. Oh and yes... Since I don't intend to flip any burgers any time soon as a mortgage broker, I will find the humor in your last point. :-)

I feel a little like Simon Powell tonight but........I agree with Lenn Harley; there is no crisis. This is a cyclical event. Occasionaly,the pendulum swings to far, lending standards become too loose and the market corrects itself. Here comes the Simon part: The blog was a shade self indulgent, trite with a pinch of uninformed. The throw away line taking a swipe at mortgage brokers ignores the fact that mortgage brokers are responsible for more than half of the mortgages that close each year and has done more to make home ownership a reality for families than any other industry than I can think of. And the comments on the post.... the only thing that I can think of to describe it is: Lemmings. I am picturing a line of Realtors following one after another over the edge!

Lots of great info to think about... oh wait, I don't have to, you covered it all!

Great post. Great info.

Great post ... so true about ownership. You have to earn it.. and the American public does make huge assumptions that it is a right and not an earned privilege.

I am not sure if i agree with the increased budget for marketing. I believe that just revamping and hitting the areas that seem to be affective in this market has worked for me. My advertising budget has actually decreased as we found print ads to be pretty ineffective this past year. I am a heavy listing agent and we've pulled from most magazine, newspaper ads and concentrated on direct mail post cards and increased Internet and are pulling more buyers and calls that avenue.

Just thought i'd share.

Desiree

Excellent post, Bryant, and I DON'T think it's too harsh at all. There are significant issues that folks have to face - agents, mortgage lenders, sellers, and buyers. No point in fooling yourself? Your advice is right on target.

Jeff

Broker Bryant- Wow, you sure hit the nail on the head here. I'd like to reprint this article for my seller buyer file if it's okay becuase I so love your "gentle" approach in stating the facts. May I please? Honestly, great post : ) Really : )

BB - That's because I'm OLD!!!

Very sage advice. I am sending this blog to my stepson who is now in the process or getting his credit repaired.

I'm really sorry for all the homeowners that are going to be affected by this situation. I am not sorry for lenders who lend money to people with poor credit in an overpriced market. Its a shame that all members of the economy will suffer for the foolish practices of the few.

I also disagree with the writer who commented that most borrowers who get into trouble have had a recent adverse event like a job loss, etc. Many of the folks in this category have had consistently bad credit for some time.

I think it is incumbent on financially savvy people (credit granters) to look out for the less savvy rather than to exploit them.

Just my opinions.

Some sound advice and points in here!!! I would like to give this to my borrowers that want to go out and use the lender they found on the internet who is going to give them a 1.9% fixed :(

MAR

2007

The sad thing is we will see more legislation coming and that usually means they will create a new problem.

I'm laughing hysterically about the two all beef patties. I'm definitely sending a link of this blog to my subprime friends. They could use a laugh right now...at least as much as job.

Great stuff in here, BB!

As usual BB very nicely done. I don't know which is harder. Telling an agent to spend money they do not have because they got in last year...or BOS (ball of steel) but you did a delightful job outlining what needs to be done to not have to ask: "Do you want Fries with that?" I always enjoy your posts!

Bryant,

Glad to see that there was no finger pointing, no doom and gloom or the sky is falling! Just the nuts and bolts of carrying on with the business at hand. The basics of any business will carry one a long way if they don't lose track of them. Are things changing....absolutely! Dwelling on it won't change anything, put food on the table or pay the bills.....enough said....now everyone just get out there today and make something that is posititive and important to you happen today....no excuses, no lip.....just do it! Sorry...I got to go and follow my advice..wherever it takes me today.

BB, this is an excellent post. It's full of common sense and practical advice. The last time I told a Seller that she might get more money waiting, since she really didn't have to sell, she took it to mean I would not do my best to sell her home and gave the listing to another agent. The property was reduced in price twice and the listing eventually expired. I don't care if it costs me business, I will continue to speak the truth.

OK, I will buy in on this one, Bryant, I would have written the same word, just couldn't quite put them so eloquently as you. Good job, tell it like it is, and add my post of yesterday to it. The news media is having a frenzy with this, and a little positivism would go a long way about now. The home buyers are going to suffer here, and those folks that have been placed into bad situations where they are in trouble due to loss of jobs, etc. I am working on a file with a neg am, and a pre-payment penalty, the buyers are 82 yrs old, and now owe 12,000.00 more than they too the loan out on seven months ago. Where was this lenders head on this one? The client knew nothing about the neg am. Too long of a comment, sorry.

Have a great day.

Shekeria,(love the name BTW) sounds like you are doing things right. I guess when folks are young 24 months sounds like an eternity but it's a really a very small price to pay to be able to purchase a home properly. You ca do a lot of credit repair and saving in 24 months. Thanks for seeing the humor in my hamburger comment.

Randal(Simon Cowell), A shade self-indulgent? Come on man, it's a lot more self indulgent than that. It's called self marketing. Did you notice the comments from not one but THREE consumers on my post? One is a customer of mine that listed with me because of my Blog. Two are frequent visitors and would do business with me if I were in their area. Uninformed? Don't think so. This post was written with humor. You can't get business from a Blog if you don't get folks to read. Don't be so serious. Jump in and enjoy.

Julie, thanks for stopping by.

Desiree, that's actually a very god point and is probably closer to the truth. Increased "effort" doesn't necessarily translate into increased costs. Thanks for pointing that out. I like yours betterJ

Jeff, Not to harsh? I guess I need to work on that. My arrogance(confidence) is slippingJ

Kelli, you can print. Just keep my name on it, Purdy pleeze.

Lisa, are you really? You don't seem it. I hit the big 50 in 3 weeks.

Roger, send away. Hopefully it will help shed some light on what's needed to get on track to be able to purchase.

George, I think the issue was the guidelines were way to lenient. But, there were a lot of folks that were able to become homeowners because of them. Maybe the bigger issue is the amount of Mortgage Fraud that was commited, placing folks in homes that didn‘t even meet the minimum requirements.. Unfortunately, when you buy a home and have no reserve funds, life's hiccups WILL derail you.

Logan, a 1.9% fix!!! Sure they areJ Fixed for what...30 days.

Randy, I'm with you, I don't like legislation. Let the market make adjustments and sort itself out. We don't need "The Man" telling us what to do :)

Kelly, want some fries with that :)

Jeff, thanks for stopping by. I just made all this stuff up!!

Allison, I'm definitely not one to sugar coat stuff. Life's hard. BTW I've waited tables, driven taxis, cleaned carpets and many other jobs. The fast food part of the post is a joke. And not written to demean anyone that works in restaurants making an honest living.

Ron, positively positive!

Broker Maggie, all we can do is make sure we are giving our customers/clients the best information that we can. It's always their decision. Some will listen and some won't.

Bob, I have several elderly sellers that are in the same boat right now. They are so vulnerable and people WILL take advantage of them.

BB:

The implication is: Say anything to get noticed? Say anything to get traffic? I can't wait to read your blog on integrity. And uninformed, I thinks so, at least on lending issues. Listen, you took some time wrote a post and got a huge response, the only real issue I have is the sycophantical comments left by others. And this is fun for me!

Randal, please read through some of my past psots. I am all about integrity. Even though my post is written with humor, in mind, are there factual aspects that you don't agree with? Is my advice to sellers, buyers and Realtors incorrect? I'm not saying "anything" I'm being truthful and delivering helpful information in a "style" that will get noticed. Hey, what the heck does "sycophantical" mean anyway?? That's way over my head:)

If it helps, I also really enjoy a debate or heated discussion. So don't leave me hanging.

OK so I looked it up:

Sycophantical....

A servile self-seeker who attempts to win favor by flattering influential people.

You could have just said NETWORKING.....

Social networking also refers to a category of Internet applications to help connect friends, business partners, or other individuals together using a variety of tools.

Bryant.... re: subprime mtg brokers... OUCH! that had to hurt a few people...

I don't always agree with one point... "Qualified Credit Counselor".... what is that? there is nothing that truly makes this a real designation to aspire to right now. Why? because it just isn't real.

Down here in Palm Beach County - we have a huge building with EQUIFAX...anyoneo that has ever worked in or around that building calls themselves a Qualified Credit Counselor!!

Good Mortgage Brokers ARE Qualified Credit Counselors... we have the credit repositories looking very closely at us... I have a tool through my credit company that allows me to help my clients... and MUCH faster than "QCCs" and for a fraction of the price

This is my first post to this site/blog and ironically I was directed here by a realtor who is truly a good person and NOT as the original poster, Bryant, makes them out to be as "money grubbing REALTORS® who have driven property values to all time highs by coercing the consumer into purchasing above their means". Anyway, as far as a place for financing that is truly appear to be "the good guys" in this market, check out www.loaninsights.com. Obviuosly they are still in it to make money, no one's that nice, but what they have done is pretty cool. It gives the every day consumer, i.e. me and you, access to all of the information that traditionally only mortgage professionals and brokers had access to. They also allow you to search all of the lenders that the brokers use to see what your real rate would be before the brokers, who I agree with Bryant, are criminals mostly, jack it up to make even more money. My brother just did his loan through them and he was amazed....when he ran his search, the results matched EXACTLY what he found at the closing table..they give you an estimate of costs when you search along with a pre approval letter if it's a purchase, which is also pretty cool since I remember when I bought my house my mortgage broker was at a football game and I couldn't put my offer in until I had a preapproval specific to the property. Well long and short, when the game was over, he finally faxed me a letter riddled with typos cuz of how drunk he had gotten. Needless to say they didn't take the offer and I found a new broker. Wow, sorry for rambling so long, like I said this is the first time I have ever posted on a blog....kinda fun to be able to vent, even if no one reads it or even agrees with you ;-)

David, I couldn't agree more. Check out my link attached to "qualified credit counselor". It connects to George Souto a mortgage broker. A good MB is an excellent credit counselor as well. That was my point

BigWillyStyle, thanks for vuisiting and commenting. The majority of REALTORS(R) in my opinioin are very good at what they do and alwasy look out for their customers and clients. The statement: "money grubbing REALTORS® who have driven property values to all time highs by coercing the consumer into purchasing above their means". was actually posted from a consumer on one of my earlier post. The first paragraph of this post is written as an example of some of the "blame game" comments that are circulating around the Internet. Keep reading and commenting.

Kenosha Real Estate is priced at a baragin. OK... Kenosha Real Estate Expert Ralph Nudi weighs in.

#1 When the entire economy was in the toilet in 2001, 2002 and 2003 the housing industry kept the US economy from falling into the ocean. These evil mortgage brokers were responsible for helping this to happen, along with the sub-prime market. Kenosha foreclosures for pennies on the dollar can be bought with the help of Ralph Nudi.

One of the unintended consequences is that the Housing market became a bit over inflated. A problem that is self correcting as we speak. Yesterday the USA Today spelled the DOOM and GLOOM of the subprime lending crisis affecting other sectors of the financial world. Another USA TODAY article calls for more GOVERNMENT INTERVENTION. Kenosha and Pleasant Prairie Homes for Sale

This thought process is fundamentally flawed. The market is in a process of SELF CORRECTION. Those that have over extended themselves personally will pay the price of their own actions, Investors that took on too much risk will loose, and the mortgage broker and real estate industry will have fewer products to put buyers in homes, forcing prices down. Buy a home in Kenosha.

This is an example of capitalism at work. Fortunately other sectors of the economy that were week during the housing boom, are stronger now and will help to sustain the overall health of the US economy.

If you are a Realtor® there is NO need to increase your advertising budget. This biggest mistake agents make is throwing money away in this fashion. You need to look at your budget, and become MORE EFFICIENT with it than before. You need to INCREASE your prospecting activities and you need to work harder to follow up with leads than ever before. Use a more Guerrilla approach to your advertising, and be smart with your advertising dollars. The "IF YOU BUILD IT... THEY WILL COME" approach does not work. You CAN increase market share, you can increase your bottom line, but it won't be by spending thousands of dollars on billboards and newspaper ads.

This is a time when savvy investors and smart Realtors can work closely together to buy property that is ON SALE... in some cases RIGHT OFF THE CLEARANCE RACK.

This country has a very short memory, within 5 years there will be another crop of investors running to throw their money in to the housing market. Those that bought now, and bought right will benefit, and so will the agents who were the trusted advisors that helped them.

Ralph D. Nudi

Weichert, Realtors - Unum Properties

www.RalphNudi.com

Ralph, good points. I too agree "The Man" needs to stay out of it and let the market adjust on it's own. It won't be the first and it certainly won't be the last time.

Your comment on advertising is noted. I had actually posted this in a comment above:

Desiree, that's actually a very god point and is probably closer to the truth. Increased "effort" doesn't necessarily translate into increased costs. Thanks for pointing that out. I like yours better;)

The point is don't slack off or stop advertising, increase your efforts to gain market share whether that entails spending more money or not. Personally, I'm spending more money, but on areas that I know will work. Why? Because I've been here before. I am primarily a listing broker but have just directed some "new" marketing efforts on attracting buyers. I also just hired an agent to work with buyers.

You wrote this: This is a time when savvy investors and smart Realtors can work closely together to buy property that is ON SALE... in some cases RIGHT OFF THE CLEARANCE RACK

Again, I agree. the Investors I work with are ALL buying right now. Heck I just bought a property last week to flip!!! Prices are good for buying and getting better. I am pulling out my short sale and preforeclosure "bag of tricks" and first trying to help some sellers through these times and secondly to pick up some properties.

Very good value added comment Ralph, thanks for participating.

I throw these type of posts out there to open a conversation and generate different opinions or ideas. My thoughts are no way intended to be all inclusive.

Well Bryant - when I first started reading this, I thought maybe the subprime members and "the man" were going to tar and feather you but then I realized you were grabbing headlines again! Good post as always and you certainly have received a ton of comments.

The current subprime lender crisis was largely fueled by the runup on housing prices. And in many areas one influential player in that runup was the out-of-town investor, who often was also a flipper. I saw it with my own eyes here in Vegas a couple of years ago and all you could say then was that this cannot continue. This is crazy. The wall was getting closer and closer as prices kept zooming up. And then PUFF.

As a mortgage lender, I'm not defending our industry at all. Many of us were sucked into the frenzy in hopes of making ever-increasing amounts of money. Greed, that's what it is. An over-heating market will always attract more participants than it should because of money. People get careless, skirt the rules and keep stuffing their pockets as long as they can. And lose all sense of what history has shown us about sizzling real estate, and other, markets. Those who played too fast and loose are now being caned in the public square and they deserve it.

What someone recently said was that the most mistakes are made when the market is good. I think it was Greenspan. The man is right.

Broker Bryant,

It was really a nice blog. You are really a great human being. I have learned a lot from this blog !

Cheers !

Cynthia, I would NEVER write for headlines, would I? :)

Esko, My market too was satiated with out of town "investors". They drove our property values off the chart. I'm now busy listing these same "investor" bought properties as short sales and preforeclosures. What goes up, must come down. Most of these guys had never invested in Real Estate before and got caught up in the frenzy. Now they are mortgaging their homesteads to pay mortgages on homes getting ready to go into foreclosure. So not only did they make the mistake of buying in the first place but they are compounding it by using personal equity to pay for a losing investment. Throwing good money after bad. It makes no sense at all. I'm sure its the same in Vegas right now.

Thanks Ramon. Those are some pretty kind words!

Hey Broker Bryant,

I know that this is not good news for the home team, but I am not discouraged! I know I have the BEST Broker in town!

By the way I went to the San Andreas Fault today...I don't want to live on the fault, but would like to buy a nice house on the hill overlooking the fault!!!!!

Tell the TLW hello. Hope things are well.

MAR

2007

Hey Bryant - As a mortgage broker I take umbrage with your comment regarding the sub-prime brethren. You forgot the fries and a shake! (Just Kidding)

You have this right on and I hope folks can see that. The foreclosure mess we have before us, and the subsequent slowing of the market (a nervous reflex if ever one existed when you consider how low rates still are on conforming) needs one more "Blamee", whom we seldom see included in the equation. That is the customer who just had to have that (way too much to handle) house right now because he could qualify to get it. Maybe one other "Blamee" and that's the lender(s) who created the opportunity for the loans that funded so many of those transactions.

The simple reality though, is that the lender sold the product to the broker; the broker sold it to the borrower and to the Realtors; the Realtors and the buyers used the product and way too many got bit in the butt. Kind of like Corvairs, huh?

CaliGal, The pressure's on!! Hate to see you come back and have tell everyone how crappy I was:)

Terry, I think that's why I chose not to go the "blame game" route. We ALL had a hand in. I think Corvairs are worth some bucks now, aren't they?

MAR

2007

BB - I'd give a lot to have the 66 Corvair I drove in High School. And yeah - I feel bad enough that a customer or two of mine ended up coming back to me and found himself in worse condition than when we put the initial 2/28 together expecting the credit or income to improve over time.

Terry what's a 2/28?

2/28 mortgage loan. Two years fixed then 28 years adjusting. They can be useful for marginal credit or higher debt ratio loans as the fixed portion rates on them were quite good. Problem is they depend on the property maintaining value and preferably increasing in value. Also, if the borrower doesn't fix the credit and/or income-spending issues there is a problem when you try to refinance the loan into a fixed note after the 2 year period.

Mortgage brokers should have, and should be, informing customers who accept these loans that those issues exist and counsel them on how to be sure they have done all they can to be eligible for the fixed note refinance.

Our shop has always taken that counselling very seriously, but even so, the falling values in our market have been a problem for some. Also, the risk when something changes (loss of income especially) while inherent in any mortgage loan situation is amplified in a 2/28 type of mortgage.

BTW, the 2/28 has a sibling called a 3/27. In hindsight, I think that third fixed year before adjustment would have been more beneficial to many even though the rate was a bit higher.

MAR

2007

Bryant,

Terry provides a good explanation here as well as a need for the loan officer/mortgage broker to provide counselling to the borrower about the nature of these 2/28 & 3/27 products and what to expect down the road. Consumers/borrowers when excepting these types of loans need to stay focused on a plan that continues to improve their credit worthiness, equity position and future refinance. These loans along with the option/hybrid ARM's will be contributing to mortgage delinquencies and foreclosures on an ever increasing basis in the foreseeable future. Regretfully, much of this counselling that Terry speaks of may have been poorly conducted or non-existent for a lot of these borrowers.

As part of my counselling in this area with borrowers that took these loans I referred to them as "band-aid" loans. Meaning a temporary fix or repair with additional care and treatment required.

Terry and Ron, OK now I get it. I knew that just didn't know the term. Thanks.

Your post has been included in the week in review.

MAY

2007

I had been pefecting my listing presentation and was not really going after listings--after all it is a "difficult" market and Michigan is one of the worst with all the articles and statistics. In my mind, buyers are where the money is rather than listings that are not selling. Well I got a listing in February and just from that ONE--I received two offers where neither was working with a Realtor so I listed and sold that property and am now working the buyer who did not get their offer accepted. They referred me down the street so I just listed a neighbor's home (who are going to work with me to buy their new home) and showed it to my buyer the next day. On another sign call on that same listing, I showed homes to a buyer who started a new career as a lender and he has referred me to two people--I just wrote an offer today which we have a counter on. I definitely agree that the way to go is increasing our listing inventory--and I wasn't thinking like that at all.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?

Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc

Poinciana, FL

More about me…

Bryant Tutas-Tutas Towne Realty, Inc

Address: P.O. Box 969, Dundee, Fl, 33838

Office Phone: (407) 870-9003

Cell Phone: (407) 873-2747

Email Me

Bryant Tutas

Create Your Badge

SHORT SALE TRAINING

Taught by Wendy Rulnick and Bryant Tutas

$97

Listen to a sample of the 5 part webinar:

Delivered by FeedBurner

Visit Short Sale Superstars

All original, all the time. Broker Bryant's ramblings on Real Estate in Poinciana, Fl

Tutas Towne Realty, Inc
Tutas Towne Realty, Inc
Visit TTRealty Network

free web counter

Links

Archives

Find FL real estate agents and Poinciana real estate on ActiveRain.

Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.