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

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

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

 

Join Our Facebook Fan Page Check Us Out On Google+ Follow Us On Twitter

 

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

 

 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

 Copyright © 2017 http://www.brokerbryant.com/ | All Rights Reserved

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
Florida Osceola County Poinciana
Tags:
opinion
subprime

Spam prevention
Show All Comments
Rainmaker
1,136,378
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

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.

Mar 16, 2007 01:30 AM #60
Rainer
131,954
Randal Keberlein
Weichert Realtors, Precision - Kenosha, WI

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!

Mar 16, 2007 02:25 AM #61
Rainmaker
1,136,378
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

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.

Mar 16, 2007 02:40 AM #62
Rainmaker
1,136,378
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

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.

Mar 16, 2007 02:46 AM #63
Rainer
130,560
David A. Podgursky PA
THE PODGURSKY GROUP @ Re/Max Direct - Boynton Beach, FL
THE PODGURSKY GROUP - Make the Right Move!

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

Mar 16, 2007 03:29 AM #64
Anonymous
BigWillyStyle
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 ;-)
Mar 16, 2007 04:01 AM #65
Rainmaker
1,136,378
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

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.

Mar 16, 2007 05:03 AM #66
Rainmaker
56,997
Ralph Nudi
Success Realtors - Kenosha, WI
"YOUR success IS our success"

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

 

Mar 16, 2007 05:31 AM #67
Rainmaker
1,136,378
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

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.

Mar 16, 2007 06:10 AM #68
Rainer
151,681
Cynthia Sloop
Community Association Manager - Indianapolis, IN
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. 
Mar 16, 2007 06:19 AM #69
Anonymous
Esko Kiuru, Sinifox Financial

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.

Mar 16, 2007 10:45 AM #70
Rainer
35,244
raman kandola
kandola mortgage services - San Jose, CA

  Broker Bryant,

 

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

Cheers !

 

  

Mar 16, 2007 10:49 AM #71
Rainmaker
1,136,378
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

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!

Mar 16, 2007 11:01 AM #72
Anonymous
Caligal

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 16, 2007 11:26 AM #73
Rainmaker
1,136,378
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

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 17, 2007 08:11 AM #75
Rainmaker
1,136,378
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Terry what's a 2/28?
Mar 18, 2007 12:52 PM #77
Rainer
53,146
Ron Withers ----Retired Mortgage Professional
Kissimmee, FL

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.

 

Mar 18, 2007 10:18 PM #79
Rainmaker
1,136,378
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Terry and Ron, OK now I get it. I knew that just didn't know the term. Thanks.
Mar 19, 2007 01:19 AM #80
Rainmaker
546,213
Maggie Dokic | Miami, FL | 305.81.HOUSE (46873)
eXp Realty LLC - Miami, FL
GREEN, CDPE, SFR, Pinecrest | Palmetto Bay |
Your post has been included in the week in review.
Mar 19, 2007 02:21 AM #81
Rainmaker
184,648
Cathy Tishhouse
RE/MAX Showcase Homes - Royal Oak, MI
Royal Oak Real Estate
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.
May 10, 2007 04:28 PM #82
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,136,378

Bryant Tutas

Selling Florida one home at a time
Ask me a question
*
*
*
*
Spam prevention