Name and Shame Concept - IMHO

By
Real Estate Agent with RE/MAX Professionals BK659643

The news media is telling the masses that the current administration plans to pressure the lenders to do something with the underwater home owners.   Many home owners need the help.  Many home owners are honest and forthcoming about their distressed sales. 

The news media says that the upcoming speech will announce a new NAME and SHAME to the lenders.  In hope of provoking them into doing "something". Perhaps strongly suggesting what they need to do.....we will see.

Finger PointingMy first reaction to all this was 'GOOD' - Name and shame....a corporate embarrassment is a very bad thing in terms of business.  Well, it is for most corporations that value their Name and Reputation.

But my second reaction to all of this "NEW" name and shame concept is that the administration isn't going to tell us (Realtors) any names we don't already know.  

The Realtors across the USA "KNOW" who to name.

All anyone has to do is talk to a Realtor. 

A Realtor that has been doing their professional best to spend hours on the phone, buried up to their necks in the red tape/mud of "certain" lenders - working on short sale files.   Any professional agent in the USA knows who to NAME.  We know which lenders are proactive and efficient.   And we know which lenders are NOT.  On the local level, we are advising the homeowners of what to expect from their own lenders, and our opinion comes from prior experience with "those lenders".  

Too bad the mass media doesn't listen to Realtors.   We are the local experts.

What do you think about the upcoming Name and Shame concept?  

Will it work?    What should we expect?  

Our clients will want to know too.

 

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Rainmaker
698,512
Christine Bohn
RE/MAX Professionals - Gainesville, FL
The Bohn Team, Gainesville FL

All these comments are great!!  I've spent the day in meetings and showing property.  Don't know if I can catch up and comment to each directly.....  But thank you very much for all of your input and opinions !!

Paul - I will go check your link to the Judge in NY.

Mike - did you want to shoot your radio?  - I hadn't heard of that one.

Jacob - I will go read your post now too!

Dec 01, 2009 08:16 AM #35
Rainmaker
403,509
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Christine:

It is probably a good idea for these banks to be named; however, I don't really think it is going to be very effective in correcting the situation.  Banks will react when it hurts them financially more than anything else.

Dec 01, 2009 08:20 AM #36
Anonymous
Jean

Hi Christine:

What an awsome post and the reactions and commentary are for the most part, quality info.

I worked with a Short Sale seller for 15 Months, yes, Months, only to ultimately realize that I have only been used to hold off the banks.  A short history (and yes I SHOULD have known)

1. The day we listed the place and put a lockbox on the fence at the side of the house, the seller changed the locks on the house.

2. Then it was OK to allow showings if I was present when it was shown.

3. Then it was OK to allow showings if the seller was present - and if it was shown to the same people twice, I was grilled about why the customer wanted to see the house again.

4. When finally an acceptable offer was made, the seller would not sign the contract.

5. I took it off the market, cancelling the listing.

6. Two months later the seller asked me to re list it because the seller had found a buyer for the home at the same price previously refused.

7. I wrote up the contract with stiff penalties if the seller would not sign an offer, so seller enlisted another agency to relist.  NOW I KNOW something smells of newspaper wrapped fish.

8. The other agency called yesterday to tell me that the seller would not sign the offer that they "relisted so they could accept"

9. FACT - Seller is not 26 months behing on payments - that's right 26 Months and NO Payments

10. CONCLUSION:  We were being used by the seller to hold off the bank from foreclosing.

So, everything is not always the banks fault when a deal will not go down.  I KNOW.  this seller is quality looney bin qualified, but I have to admit it, very devious and SMART beneath the sweet gentle exterior.

Dec 01, 2009 11:01 PM #37
Ambassador
1,945,838
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

My part in all this big mess. . is to let people know that we have been screwed too dam long and every single homeowner should evaluate their situation for an strategic exit default. The banks got all the money and our clients got the shaft.

 

Simple enough. .

 

What on earth makes more sense than to be living in a house that will take 10 years PLUS  for the value to catch up with it's mortgage?

There are people that will choose and reject the stigma of a short sale and stay and stay and stay prisoner on their own homes! 

The shame and their pride is what THE BANKS ARE COUNTING ON!

That's is what is going to keep them there. . 

Meanwhile, they don't show any SHAME or PRIDE THEMSELVES and they continue to screw our clients by pretending that a LOAN MODIFICATION will fix things up . . 

 

Dec 01, 2009 11:02 PM #38
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Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

If government can change your focus to lenders (like they're trying to do with insurance companies and others), maybe you'll be too busy to focus on them and their takeover of everything.

Dec 01, 2009 11:14 PM #39
Rainmaker
887,255
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

Fernando is right, the lenders got all the money from the government and the homeowners got nothing but empty promises about Home Loan Modifications.  I know a number of people trying to modify their home mortgages, but they end up will huge balloon payments that are impossible to pay $95,000, in one case.  How is someone supposed to come up with that amount of money in a few months' time?  It's ridiculous when people have already given all their financial data and the lenders know that the homeowner's don't have the resources to pay.  Obviously the lenders benefit more from foreclosures than from loan modifications.  This has to be changed.   Enough talk, time for the government to take action.

Dec 02, 2009 12:21 AM #40
Rainmaker
191,999
Gregory Bain
Mezzina Real Estate & Insurance - Little Egg Harbor, NJ
For Homes on the Jersey Shore

Can we name homeowners who (I would think) have some blame here? Can we name real estate agents (yes, my peers) who continued to tell buyers "it's a great time to buy."? Can we name the builders who had out bid the competition for questionable land and bought too high? Can we name the economists who kept telling us that everything was great?

Just look out on the street. Pre-teen girls dressed to look like hookers, boys with their pants down around their butt flashing some ghetto signs while living like they belonged in Beverly Hills.  Turn on the TV and there are the politicians that help create this mess by taking all that lobbyist money telling us they are going to "investigate" the charges. There is no shame here.

Dec 02, 2009 01:20 AM #41
Rainer
230,444
Stephanie Reynolds
Integrity First Financial Group, Inc. - Santee, CA
East County San Diego Homes 619-838-4408

This is a fantastic post Christine-each one of us has experienced the agony over this debacle. Unfortunately, we are going to continue to feel the agony for many years to come. I am not sure the "Name and Shame" game will make much difference. The damage is done........

Dec 02, 2009 02:16 AM #42
Rainmaker
262,129
Christianne O'Malley
RE/MAX Realty Affiliates - Reno, NV
Exceptional Service - Delivering Results in Reno!

Christine - This is just yet another ploy to make the public feel like their politicians are doing something. The sad thing is behind the scenes, some of that GUARANTEED TARP money will surely end up in some of the political funds of those doing the fingering. It's all an elaborate play that we are expected to believe carte blanche. Makes me sick to my stomach.

Dec 02, 2009 02:25 AM #43
Rainer
44,496
Dave Hymes
RE/MAX Gold - Placerville, CA

They should have a name and shame directed at the government for their contribution to the whole mess....of course that's not going to happen. As someone previously suggested, it everybody pointing the finger of blame at everyone else. Politicians point their fingers at banks, Wall Street, the previous administration...whoever. The blame game needs to end...it's not helpful.

Dec 02, 2009 05:17 AM #44
Rainmaker
236,381
Debbie Summers
Charles Rutenberg Realty - New Smyrna Beach, FL

These lenders [and yes we know who they are] should be ashamed of themselves, but they aren't and this won't do anything to change it.  I've read all the comments [fantastic input from AR members] and I'm amused that the "powers that be" haven't realized we been  "naming & shaming" for a long time.

Dec 02, 2009 05:39 AM #45
Rainmaker
698,512
Christine Bohn
RE/MAX Professionals - Gainesville, FL
The Bohn Team, Gainesville FL

Dave - The "name and shame for government" does exist...it's call the election of our local, state, and national positions. - But that's a whole other issue. 

It's great to see eveyones comment and opinion here!   And thanks to Lenn for sharing her comment in a great way!!

Dec 02, 2009 05:55 AM #46
Rainer
34,614
Scott Taylor
Realty Center - Orlando - Ocoee - Orlando, FL
REALTOR

What a shame they don't call me, I'll name then all! Right on Christine, great post!

Dec 02, 2009 07:41 AM #47
Ambassador
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Christine - I am very surprised, or it is less of a surprise as time goes, that we are allowing ourselves to get involved in the name game and barking at the wrong tree.

i do not hear about the responsibility of those who signed for these loans. We are screaming that they need help. Why? Since when?

 

Dec 02, 2009 10:11 AM #48
Rainmaker
698,512
Christine Bohn
RE/MAX Professionals - Gainesville, FL
The Bohn Team, Gainesville FL

Jon - I know there are scammers and deceivers that are taking advantage of the system.  But there are many "truly" distressed homeowners.  Homeowners that have lost their jobs, or had the death of a spouse, etc.  I won't take a short sale listing if the owner is NOT distressed.  The homeowners must fully disclose in order to "prove" they are distressed to their lender.  They must submit financial statements- and the lenders do verify.  If they have a million dollar stock portfolios, then they shouldn't be taking advantage of the short sale system.   Yes, there were 1st time homebuyers that borrowed 110% of a homes value, and now that values have dropped and their adjustable 2nd mortgage is skyrocketed - they may end up in foreclosure....all the more reason to try to short sale first or modify.  For me, it is gut wrenching to sit with people who are in tears and worried they are in trouble with their mortgage. 

Dec 02, 2009 10:36 AM #49
Rainmaker
1,078,873
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Christine, the whole thing is a mess. Homeowners have lost their jobs, but many of these homeowners got loans they really didn't qualify for under normal underwriting guidelines. Many of them lied or their loan officers lied - and now our whole economy is paying the price. What I don't understand - well I do but it makes me mad - is why the money for the banks was kept by the banks and not used for the purpose the American people thought it was. Of course there are people who have played by the rules but lost their jobs or had medical problems, but if these were the only ones needing help, it wouldn't be a crisis.

Dec 02, 2009 01:03 PM #50
Ambassador
3,065,724
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Here, here to Margaret Woda's comment!  And, for a relatively new agent, Nathan Giguere hit the nail on the head too!

Great comments here--this is what AR is all about, isn't it?!

Dec 03, 2009 08:06 AM #51
Rainer
11,301
Katie Flansburg
Austin, TX

Good post.  I understand the point of view that says "the bank is being shorted money and they don't have an obligation to work through a short sale."  However, this is the simple truth to the matter:  If the banks don't do the short sale NOW, they will do the foreclosure LATER.  Later, as in, when the property has fallen another 10% in value.  The short sale is a courtesy to the bank.  It gets closer to market value than a foreclosure, doesn't mean the property will sit vacant for 6 months while a foreclosure slowly gets through the courts (as it depreciates further), and it is always supported by evidence from the seller like bank statements/pay stubs/tax returns to show they CANNOT pay due to economic circumstances.  It's a last resort! 

Dec 03, 2009 08:23 AM #52
Rainmaker
412,982
Lisa Heindel
Crescent City Living LLC - New Orleans, LA
New Orleans Real Estate Broker

Excellent post, Chris.  I've only worked a few short sales (not with BOA, thank goodness) so I'm no expert.  However, when I was in banking it never would have been tolerated to have a backlog like everyone is experiencing in the processing of these requests.  I spent a couple of years doing administrative work in a collections department so it amazes me how these files drop into a black hole once the short sale package is submitted - something that definitely doesn't happen when they are calling home owners looking for their money.  Would naming them make a difference?  Based on how the banks have acted with the bail out money, my answer is no. 

Dec 03, 2009 02:34 PM #53
Rainer
478,183
Not a real person
San Diego, CA

This could be interesting. I wonder if the media will go along with it.

Happy end of year!

Dec 10, 2009 04:45 AM #54
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Christine Bohn

The Bohn Team, Gainesville FL
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