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Short Sale Expert Lawsuit

Recently I received an unsolicited e-mail (spam) from someone named Sally Larabee about a very interesting subject. She claimed that Realtors all over the nation will be getting sued for calling themselves experts in short sales, when in fact they haven’t completed not one. It went on to list how this would take place and the only way to avoid it is to take their course (probably at a hefty price). It also states that if you really want to call yourself an expert you need to take their course and prepare yourself. I thought to myself now wait one minute you just said if I don’t do a bunch of short sales and gain “experience” that I can’t call myself an expert, now you tell me if I take your course you can call yourself an expert. Which one is it? Expertise is not measured by how many times you perform a task, that’s called experience.

Although the argument is very compelling, it’s fairly easy to protect ones self with the proper disclosures without taking another short sale course. If you are doing short sales and haven’t had an attorney write a disclosure for you, shame on you. Get it done today and have all parties sign it.

Finally what I found interesting is that when I surfed the Real Estate Radio Blog, low and behold I found the exact same article written by Barry Cunningham, I thought the e-mail had Barry’s tone. I also wrote a post to that blog and somehow it was never published. I just wanted to let Barry know that his stuff had been plagiarized-or vice versa.

Posted by Noel Padilla, CDPE on 01/06/2009 03:01 PM

Comments (16)

barry cunningham, short sale, kendall short sale foreclosure specialist, expert, short sale expert, certified distressed property expert

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16 Comments on Short Sale Expert Lawsuit

JAN

Noel, I think you raise a great point. People, agents, think that because they have had a few short sale listings they are experts. I think calling yourself an expert in anything that you do not have some sort of license or certification for is a very dangerouse thing. I also think that agents need to be oh so careful with all of the advice that they give here in regard to tax ramifications as well.

Funny how the top selling agents who specialized in no doc buyers are all of the sudden they are experts in foreclosures and short sales? I have a real problem with that.

Audrey,

They should be the experts they were the ones who created the mess, so they should know the inner workings of those whatchamacallit mortgage programs. Oh that's right, they weren't experts in that areana as well and tht's the problem. Too many agents jumping from fad to fad to squeeze every dollar they can out of whatever is in today. In the meantime they ruin it for all the agents who really take the time to educate themselves and crawl before they walk. When I first started doing short sales I told everyone I could that I was specializing in short sales. One friend in particular said to me "Oh yeah everyone is doing that." Oh did that hurt! I was officially grouped in with all the other "Realtors". Not good.

Okay hold your breath, I actually would rather make less money and do things right than make a ton of cash and burn poeple along the way.....now breathe, okay there I said it.

I got the same email and I echo you sentiments. Is is just me or is AR being abused by marketers? I'm getting more and more junk mail from people trying to sell me something who got my information from AR.

I think you are correct. I get no less than about 100 e-mails per day trying to sell me the latest in real estate gadgets or services. I read through them and most are crap, they don't even know how to spell.

That's another reason I wrote this blog so no one falls victim to these scare tactics, I've seen them before and everytime I verified that they only contain half truths and exagerations.

I guess these folks either don't understand marketing or are too cheap to pay for real marketing campaigns. I don't ever buy anything from spam-when I need to buy something I do this thing called shopping. What a concept!

JAN

They are just trying to create opportunity and make you call them. All part of the game for them.

JAN

wow! Everone's trying to make a dollar in this market! Don't get suckered...

Noel...I was just told about this "lawsuit" thing today at a breakfast meeting. Hadn't heard or seen it myself so I am glad that I stumbled on your blog. If you don't mind, I'd like to re-blog on those groups that you did not post to providing additional exposure to "the truth" about this scam.

On a separate note....I've received your e-mail campaigns and I think you've got a great Integrated Campaign going on with your campaigns/website, etc.

JAN

I think someone who has closed several short sales and has done them for years (before the bubble anyways) is far more qualified then somebody who has never closed a short sale, takes a $290 class and gets a certificate... just my thoughts.

Paul

That is exactly the point. The e-mail is trying to solicit for you to take a class to become an expert. I agree with you, until you have done at least 3 or 4 short sales you really don't know what to expect. Personally I think short sales are a breeze. There isn't much to them at all. I was a mortgage broker in Illinois so you are basically asking for the same documents as when appling for a loan. I tell my prospects that in a short sale I have to basically disqualify them for the loan using the same documents and of course some added ones as well. Short sales are more fustrating and time consuming than anything.......nothing replaces in-the-trenches experience.

Hello Noel, I belong to a group "Carpe Diem Partners, LLC', Carpe Diem will negotiate your short sales for FREE and there is NEVER an expense to either you or your clients.

We have completed over 500 successful short sale transactions, and they currently hold over $37M in escrow.

The process typically takes 60-120 days. You are still entitled to your 2.5% commissions on all of your listings.

If you are interested, I would love to talk to you about getting started. I simply provide you with a lead sheet, you send it back w/a CMA and we will have an approval w/in 24-48 hrs.

Sound good?

Cheers to "09"

JAN

As much as I dislike amateurs calling themselves "experts," this sounds like bologna.

JAN

There are a couple of problems with your post.

1. There was no "unsolicited e-mail.

2. There is hardly a hefty price for the course as if you had taken the time to check you would most assuredly found this out.

3. The Short Sale video Course is a Real Estate Radio USA / National Real Estate Seminars property (all you had to do was aks that as well)

4. I believe if you read my post, you will see we have conferred with quite a fe attorneys about this and I even mention that I can put the reader in touch with one for further clarification.

5. Your statement to readers of this post is borderline practicing law when you say that real estate agents who don't know what they are doing can easily "protect ones self with the proper disclosures". Would you be willing to stand behind that should someone be sued?

6. Neither you or Mr. Padilla are authors on our site so it's patently false that you "wrote a post" on our site that was never publshed.

7.Ms. Larrabee is involved in our marketing and has permission to use my articles for promotional purposes.

I understand that it's really easy to twist things around but if you want clarity all you need do is ask.

As for taking our course...I could care less what course or instruction one takes. What I do care about is many, many, agents bungling short sales without having the slightest clue as to how to properly execute them.

No need to fear. We have literally thousands of valued clients and so many testimonials we could start a blog just with them. Our clients email us regularly with questions and situations. We respond, as you can see, quite quickly.

Hey if the information you get here and elsewhere for free is of use to you then by all means...go for it. Far be it from me to tell you not to use the free info. That is totally up to you.

The only reason that I am again responding is for one line in your comment.

You wrote..."you get the set of videos to help you "exploit" (your words) this very profitable niche. Some of us Realtors prefer and are in the business to "help homeowners" and not exploit them."

That my friend pretty much says it all. I am in business SOLELY to earn a profit. I am not ashamed to say that and never would be. If I wanted to be a social worker I would have done so. I am PURELY a Capitalist and it is my focus in business to earn a profit.

My clients have underscored that focus. That's not to say that we don't help homeowners as well. As you know, a successful short sale leaves them in a MUCH better situation than if the home is lost to foreclosure.

I did not make the rules that homeowners can't participate in the profit on a short sale.

So when you say you are in the business to "help homeowners". Do you work for free?? Do those who are like you work for free? Of course not...give it a rest and stop the Mother Teresa act. You make money on a short sale just as anyone else does.

So what's the difference? because I am open and honest and seek to positively exploit the opportunities in a market...that makes me bad? No one is exploiting the homeowner.

We go through a very comprehensive disclosure process (which we also teach), we offer FREE legal assistance if they want to try to defend the foreclosure (by the way...do you do that?)...and then when the homeowner has decided that a short sale is the way to go then we execute our game plan to the fullest to maximize our profit and to yes..EXPLOIT the opportunity.

I am in business to make a profit..a substantial profit, and we show others (many others) how to do the same.

By the way..I have been on AR for quite some time. We have interviewed the players on AR and have interviewed the braintrust here as well. It's not the profession that we trash or denounce. It's those who stink up the joint not proficient in what they are doing and we work with many fine and professional realtors.

Our courses...and we have a number of them, show investors how to find good and experienced agents and we show agents how to be extremely proficient at the short sale process.

And yes, we earn a profit in doing so! Lastly, we normally charge in excess of $300.00 for this course but we know many agents are hurting so we lowered the price temporarily to accommodate them.

We have travelled the Country teaching agents, agencies and boards how to effect a short sale the right way. There is nothing I need to defend except Capitalism which seems to be under attack by people in a for profit business posing as non-profits.

You may not like my style and may not like some of what we have written or said on the air, but then again you are decidedly not my market.

You see, an overall proficiency in short sales, benefits all of us

I hope you do well in 2009 and continue to provide the service you do. If it works for you, then you'll be fine.

Have a great year!

Barry

I don't have a problem with anyone making a buck, it's just the scare tactics I have a problem with. I could care less of your claims of Realtors being sued for whatever reason. It's my responsibility as a professional to know that what I am doing, is not in fact against the law or misleading. I don't need some spam in my inbox telling me what appears to be exaggerations of what may or may not be happening. Give me a link to a publicly recorded lawsuit or incarceration of a Realtor doing what you said then I may pay attention. I likened that e-mail to someone in Nigeria claiming I have a long lost relative who died and left me money. I'm kind of getting sick of it you know what I mean.

I do provide some services free of charge, all the time. I call it customer service and guess what, it has paid off time and time again in the form of quality referrals. I am not rich and do not aspire to be, I just want to make an honest living. Apparently you have built a fine profitable organization and kudos to you. I also want to compliment you on your marketing its genius, just not my style.

JAN

Anyone can be sued and it is just a matter of time, like real estate it is just a numbers game for Lawyers too. Look up expert in the dictionary and everyone can claim to be an expert.

FEB

We have a lot of liability in this business. I keep that in mind.

I'm getting a lot of wacko AR unsolicited emails too. I have a really strange one that I'd like to forward to someone so that something could be done about it, but I don't know who to send it to or how.

FEB

Disclosure is key when doing short sales. . I usethe same disclosures I got when I completed my CDPE and everyone signs!

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