Too Little, Too Late -- Short Sales Speculation

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

THEY (the banks) speculated and YOU (the home owner) lost.

While Carla has probably been spared the angst of representing home owner/sellers in this wacked out Short Sale market, as have I to an extend, she sees the affects of lender actions on buyers and sellers, always to the detriment of the buyer and seller, of course.

THIS IS A GOOD READ

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Original content by Carla Muss-Jacobs, RETIRED Inactive License Oregon

Friday, February 26, 2010, Portland, Oreagon

CURRENT Active Short Sales*:

  • Area 141 North Portland -- 61 properties
  • Area 142 SE Portland     -- 134      "
  • Area 143 NE Portland     -- 264      "
  • Area 144 Gresham, etc.  -- 211      "
  • Area 145 Milwaukie, etc. -- 192      "
  • Area 146 Oregon City     -- 139      "
  • Area 147 Lake Oswego   -- 121      "
  • Area 148 West Portland  -- 164      "
  • Area 149 NW WA Cty      --   52      "
  • Area 150 Beaverton        -- 234      "
  • Area 151 Tigard             -- 190      "
  • Area 152 Hillsboro          -- 185      "
* RMLS MAP OF AREAS IN METRO PORTLAND

That's 1,947 properties of people in my local market . . . I like to refer to them as American homeowners.  That's 1,947 (more) people that are in queue to be systematically EVICTED from their homes.

The banks (financial institutions) did one thing in the two (2) years since March 2008 -- which is when the stock market was manipulated by blood-sucking Zombie speculators (and the blood draw has yet to end). 

What did they do?  They SPECULATED.

"You sold me out for chicken change"

The speculator Vampire Zombies sucked the neck of the SEC beginning in March 2008.  And, you all know what happens when Vampire Zombies suck necks . . .

By the end of September 2008, both the financial houses of Bear Stearns and Lehmann Brothers were sucked dry.  

Out with the old blood, in with the new . . . I guess.  But the infusions are very tainted and perverted.

Those Vampire Zombies are in a real panic now . . . what do they suck next?!?  

Wth the blood already in the water, the Vampire Zombies have swarmed to the source . . . the real estate industry.

Keep in mind what Vampire Zombie speculations do?  They SPECULATE.

"You told me that they, they had it all arranged"

Those naughty little Vampire Zombie financial institutions played and tinkled with your "portoflio" . . . and mine.  They systematically held BACK on short sale offer approvals.  Why?

BECAUSE IT'S CALLED called: SPECULATION, boys and girls.  And they know they can do it because the SEC, FDIC, Federal Reserve have all gotten bitten by the Vampie Zombies, and they too . . . have become Vampire Zombies!

With Lenn Harley's recent FEATURED blog post, I began to think and rethink.  

The only reason the financial institutions seem to want to play in the Short Sale "GAME" is in their best interests.  Period.  They will take your buyer client, and if you want to buy that Short Sale, you will need to get your buyer client approved through that Vampire Zombie financial institution. 

Let's conjegate the word TANK as a verb:

  • Has tanked
  • Will tank
  • Is tanking

And because of the fear of tanking further . . . Oh, NOW they want to set up 'streamline' methods of approving short sales?   NOW!?!

They got . . . and here's a NEW VERB I created just for you:  TARPED!

They got TARPED!!  That money wasn't NEARLY enough to repay the losses . . . the losses, boys and girls are felt in  . . . [INSERT THE NAME OF THE PENSION FUND, SOVERIGN NATION HERE]

The Vampire Zombies waited, and speculated that the real estate market would rebound -- and it's not rebounding.  Hmmmm . . . 'cause this is NOT a game, and there's no Michael Jordan REBOUNDING for your team. 

The financial institutions received TARP (taxpayers money), and when the homeowners/taxpayers went to them and asked for approval on their Short Sale . . . the financial instituions played thir own version of the "Short Sale Game":  they DELAYED, they STALLED, they hem and even hawed, they scratched their butts, they blood sucked . . .  and with purpose AND intent deliberatly put the brakes on the short sale process. 

"You took my money, you got my honey.  Don't want me to see what you're doing to me"

Many Millions of taxpaying homeowners -- I like to call them Americans -- went into Foreclosure and/or Bankruptcy as a result.

Not one Senator, Congressperson . . . NOT ONE stepped in and said a thing!  NOT ONE hearing was called. Was there?!? I don't recall anything, do you?!? 

My prediction, when Americans realize how the "game" was played (on them) then, and only then, will the politicians grow a pair and make a big deal out of this "short sale game." 

Politicians have 20/20 Vision -- when everyting is/was in plain sight. 

We've -- you, me, bloggers on Active Rain -- have been complaining of the length of Short Sales approvals (if they even got approved) for . . . HOW LONG?!?:  We've been CRYING FOUL at the Short Sale "Game" for HOW LONG?!?

Yeah, we're only real estate agents . . . what do we know?

A Politiciatian will need step up to the Empire Umpire mound and cry FOUL.  Too little, too late is what I say for MILLIONS of people in this country . . . whom I like to refer to as Americans.  But better late than NEVER!!

SCREW the foil hats . . . I'm putting garlic around my neck, and I'm checking for bite marks on EVERYONE from now on. 

What happened to my country?

"Take your kids and raise them up, Show 'em how to drink out of a righteous cup"

Turn up your sound volume, and listen to the Godfather of Soul

 

 

 

 

 -----------------------------------------------------------

Representing Buyers Since 1999 ~

Carla Muss-Jacobs, ABR, CEBA, e-PRO, Realtor®

Principal Broker/Owner
EBAPortland, LLC
YOUR Exclusive Buyer's Agent

CHECK OUT www.EBAPortland.com for Home Buyer TIPS! 

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Ambassador
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Ralph Gorgoglione
Maui Life Homes / Metro Life Homes - Kihei, HI
Hawaii and California Real Estate (310) 497-9407

Banks and credit card companies are 100% pure evil.

I've been with BofA for over 20 years, and they could give a rat's ass about my lengthy patronage.

I shopped around, and after some research, I just opened a new account at a credit union.

The only issue is, this credit union does not have any accounts for business, just individual.

The short sale that I just closed, I was trying to bring the two banks, IndyMac and Bank of America, together on what dollar amount to allow to the 2nd, BofA.

They never budged, and in fact, IndyMac during the process actually came DOWN $1000 from their initial offering.

In the end, as a result, I had to give $4,682.00 from my commission in order to close the deal.  I had the listing for 2 years.

You can imagine how I feel about that.....

Feb 27, 2010 11:10 PM #1
Rainmaker
1,523,773
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

I am not sure when we will learn..lenders are not our friends. They never have, never will. Nor are politicians and bureaucrats.  It is not like it was, never will be again.

Feb 27, 2010 11:11 PM #2
Rainmaker
762,952
Thom Abbott
MyMidtownMojo.com |770.713.1505 | Intown Atlanta GA Condo Living - Atlanta, GA
Midtown Atlanta GA Condos For Sale

How true this all is! And what an incredible, elementary way to present it! I'll be sharing this not only with my blog readers (reblog!) but will be sending it out as a link on my next communication that goes out to my clients.

I really want to know what's going to be left of this country, of the middle class, or our faith and our values when this is all over.

I so agree with Ralph....I'm one of those American's that got the "oh, before that new credit card law goes into effect" my interest rate on one card was raised to TWENTY NINE PERCENT.....DID YOU HEAR ME TWENTY NINE PERCENT!!!! And now they have the nerve to ask me why I can't make the payment?

Excuse me, I need to go take my blood pressure medicine......

Feb 27, 2010 11:21 PM #3
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Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Lenn, I am so far behind on reading posts, thank you for this reblog of Carla's post. I was horrified when I read it on your post, but I was too concerned about the fact my MLS does not have a field for short sale that I had to post about that.

This is such a horrific game they are playing on us all. Always always you can count on the banks to find a way to screw their own clients, either existing or prospective. Disgusting.

Feb 27, 2010 11:30 PM #4
Rainmaker
372,940
Judy Jennings
The Green Company - Ashland, MA
Broker - The Lanterns at Warren Woods - Ashland MA

Lenn - Thanks for bringing Carla's post to our attention. It IS a very good read in a very frightening way.

Feb 27, 2010 11:31 PM #5
Rainmaker
224,121
Laurie Mindnich
Centennial, CO

The change from being a customer of value (OR, at least pretending to us that we were that) is *poof* gone now. It is absolutely frightening, now that there appears to be no veil or pretense required when banks (they know who they are) are dealing with "customer" issues- there is now a nasty attitude, with no effort whatsoever to be cooperative on ANY matters that line their pockets over beneffitting in even the TINIEST way, their "customers." It's just disgusting.

Feb 28, 2010 12:20 AM #6
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Laurie.  Sadly, the banks no longer need us as customers of their products beyond a place to keep cash.

They don't have to lend money now that the government has given them a collective couple of $Tirllion.

 

Feb 28, 2010 01:10 AM #7
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Thom.  HA!  I got one of those interest rate increases too and now the bank wants to know why I'm no longer using the card.

HA!

Feb 28, 2010 01:12 AM #8
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Ralph.  Isn't Indymac the one with the "shared loss" agreement with FDIC???

Judy.  Thanks.  I agree.

Andrea.  "Horrific" is the word.

 

Feb 28, 2010 01:14 AM #9
Rainmaker
108,711
Cathy McAlister
Cathy Ashley McAlister, GRI CDPE - Broker / Sacramento - Sacramento, CA
Sacramento DRE#00648507

Lenn:  Thank you for sharing Carla's post.  I read a weekly economic post call by John Mauldin at FrontLineThoughts - very good if you get a chance to check him out.   He recently wrote on exactly this subject.    One of the statistics he  put out there is that banks (as a result of fed actions) have gonefrom a $2 Billion reserve to over $1000 Billion reserve (yes that figure is correctly restated).  They have more than sufficient money to loan and refuse to do so.   

My personal suspicion is that the banks are now are well healed (on our dime) to wait out the recovery for years now, including holding on to much more of the REO inventory.  In the meantime - we will continue to see them have their way with more and more of the transaction.  Just like HVCC, they are now going for the commssions and forced loans on short sales.  Their slice of the pie is getting pretty large and for the most part the large lenders are already safe with their $1000 Billion in reserves.  

Do they not see what they are doing?

  

Feb 28, 2010 03:39 AM #10
Rainer
32,214
Elena Martinovici
MY HOME GROUP 602-321-1273 - Phoenix, AZ
Associate Broker- Phoenix , Arizona

I am opening my accounts at small privately owned banks!

Feb 28, 2010 06:05 AM #11
Rainmaker
1,560,731
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Although I don't take listings, I'm not spared because I see the listings.  I know the stories . . . and they are from real people (Americans).  A year ago it wasn't that bad. NOW . . . OMIGOSH!  The listing sheet: 

Short Sale:  Y

Third Party Approval: Y (if Short Sale isn't marked Y, then this 3rd Party is typically the Bankruptcy Trustee)

I see it daily when I search listings.  I see the DOM (days on markets) and the prices are being reduced because the home owners not above water are having to price their property competitively with the REO's and Shorts. It's staggering. 

Thanks for the re-blog! 
Feb 28, 2010 11:30 AM #12
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Lenn:  I found it odd, that our own legal counsel of VAR changed their tune on short sales and who we work for as our local market began improving.  The song and dance used to be that we worked for the sellers, and as such, the sellers chose one offer, sent it to the bank and waited for approval.  Now the song and and dance is we work for the bank and the sellers, and the banks have a right to see all offers, just like a regular seller, up to the hour before settlement.  Hmmmm.  You think the banks saw a trend and lobbied for that change?  If we listened to VAR, these things would never sell given the lack of inventory our buyers are experiencing.  You've seen the bidding wars.

Mar 01, 2010 12:30 AM #13
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Chris.  Not a single sale we have had in the past couple of years did not have multiple offers. 

We've got a tough educating job with buyers before they get the message. 

I don't know what's going to happen with sending reams of offers to lenders. 

Let's face it, lenders don't want to do short sales.  They'd rather foreclose. 

 

Mar 01, 2010 07:22 AM #14
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