Should I be banned for Writing about Short Sales??

By
Real Estate Agent with Morris Williams Realty

 

Today I finished the week with dealing with a counter offer on a warehouse we are bidding on for an investor. Yes its a distress situation, and the owner in first position wishes to sell out fast for nearly 30% below present value.... SURPRISE!!!!  The counter from the seller is that we can offer  LESS MONEY if we will close faster and give up half of our due diligence.....This is not the way Real Estate is supposed to work, but its what we are seeing in the distressed credit crunch time we find ourselves in now.. Wow, what a week its been...its great when a plan starts to come together!

So, I take a minute to drop in on Active Rain and check on my comment on the last post I wrote. It was entitled " NAR SHould Ban Short Sales" Truth be known, I wrote the post just before heading out the door one morning, and actually meant to write "Should NAR Ban SHort Sales?"  Would I have got the same responce with the same words in the other order?? Who knows, Later that day when I checked in, I was surprised to see the responces piling up, and noticed the Title was wrong...

Sue me for not being perfect.... So, my last commenter today took the time to bereate me for not being over come with emotion for all the short sale distressed homeowners. I should volunteer my time to work for an average of nothing to somehow save the credit of people who have already killed thier credit by not paying thier morgage for months on end. Why they did not pay is not discussed here, just a broad brushed over treating all foreclosed homeowners the same... I know they are not the same.  Some stories are truely tragic.. Some are just gaming the system...I have seen these senarios and much in between.. Still, I am somehow reacting to a probably very sweet person throwing out a chastising post at me for wanting to deal in areas that make a profit and not waste time and effort on short sales...I am submitting my responce as a post.

 

Chris...I have now been involved with over 100 short sales/ foreclosures...I never found one yet that the sellers had credit left to save...Once it hits lez pendence, it is a foreclosure action, thier credit is already crap. This is not my fault, can't save whats already gone..

 

As for Refferrals   I have plenty of refferrals   I don't work for distressed sellers, I work for buyers and investors. So my refferrals are continuing to come from my past customers, who are investors and ready to go buyers... As for saving these poor people that have not paid their morgage in between 6 to 15 months, and have no money saved to move onto another home or lease options, I have less sympathy than you might think.

 

As for saying we don't work for the bank, well I have issue with that as well. Try taking credit apps from any of your distressed sellers to the bank....You will get blown out in a New York second..If you want the truth, these distressed sellers are soming to my buyers and investors because we WILL take them in on lease options and owner financing contracts...

 

Of the amount of short sales I was involved with, the majority of them eventually went bankrupt and put the process off a few more months, up to six or more...and then left the homes after NOT paying anything for over a year.....These homes then did foreclose, and went back to the bank...Over and over and over....Not my fault....

 

ALso as a person working with many investors, I see the flip side of this foreclosure mess. I work with actual home owners that have multiple homes in owner financing that are faced with a mess from their tennants not paying and fighting foreclosure, while the investor is faced with coming up with paying the bill out of pocket or playing hardball...or being foreclosed on themselves.

 

As far as Realtors gaining a client that will not pay off today, give me a break. Why, if you only had twenty of these deals you could lose your own house.....If you really want to help the economy, then work with homeowners who need to sell, and are not in foreclosure...They need your help. Or buy homes that are ready to go in any event, REO or what ever..

 

The only people who are making money in short sales are the ones who are charging for it, and the ones who can actually afford to catch the bank needing to clear their balance sheet and buy a really undervalued bargin...They then turn a very nice profit turning these homes ...either in owner finance or lease option...

 

I just put in a bid for 14 brand new homes at 85,000 apiece...I will not fight with foreclosures when these types of deals are available....We have another bid in for over 42 new  homes for less than that, all in the Leheigh area in Fla...  ANother bid is for some 70+ homes in another area that a lender is taking back from a builder...When I volunteer my time now its truely volunteering, not to be confused with when I claim to be working...

 

If you truely want to work with people, find the buyers trying so hard to get into a home in this credit crunch market...You will find many of them will find themselves in lease options with me or my kind.

 

Living and surviving to fight another day , in fact surviving to enjoy another day is why I get up and go to work. My time, like many of those who responded here, is valuable and needs to be spent where we can make a living and pay our own bills. If we all go broke, then what is left..

 

I have been broke, I have been foreclosed on, I have been evicted... My choices in life now are keeping me out of this situation, I have no intention of going backwards again by choice ...Thats how I intend to take back and keep my power from the banks...

 

Chris, Thanks for commenting, but I really hope you don't take your own advice for very long...Your bills eventually need to be paid too, and the track record is not that good for closing short sales for a profit.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Groups:
Realtors®
All Things Florida
The Art Of Marketing You
The Lounge at Active Rain
Dedicated Bloggers
Tags:
short sales

Spam prevention
Show All Comments
Rainer
102,889
Robert Huntsinger
Empire Realty - Upland, CA
Empire Realty Upland, CA - Full Service at a Discount

Mike,

Love the post and all the words of good advice, live to fight another day!

Take care!

RJH

Jun 06, 2008 12:34 PM #1
Rainmaker
67,920
Denise Allen
Resh Realty Group - Chesapeake, VA
Realtor@ Chesapeake, Hampton Roads

Maybe you had a slip when did the title wrong but you probably got a bigger response because of it.

Jun 06, 2008 12:59 PM #2
Rainer
105,415
Mike Norvell Sr
Morris Williams Realty - Leesburg, FL
Norvell Consulting Group

Ahhaaa...RJH..I am jsu ttryingto advocate doing a good job for those that need it, and where it will count the most.....Live to fight another day..Seems like a great plan

Denise...I think you are right....thanks for commenting

Jun 07, 2008 12:16 PM #3
Ambassador
2,140,035
Todd Clark
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

I'm with you on getting people who are selling homes in distress into lease options and owner financing, I do it all the time! Sometimes I just don't get why people don't get what we do, it really isn't that hard!

Jun 09, 2008 05:15 PM #4
Rainer
105,415
Mike Norvell Sr
Morris Williams Realty - Leesburg, FL
Norvell Consulting Group

Todd..Nice to see ya here...By the way, I have been out of the actuall selling of home deals for about 3 months now, but continue to refer these things to my informed friends that have a clue how to make things happen...I am however, soon to have a fund established to buy foreclosures/ short sales of individual homes , and have a plan to expand the fund and take it public in other areas...I will send you a short profile of the deal and see if you could use it in your area..  Pretty simple, basic criteria that eliminates banks and allow us to make decisions on a very local basis..

Jun 10, 2008 12:12 AM #5
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?

Rainer
105,415

Mike Norvell Sr

Norvell Consulting Group
Ask me a question
*
*
*
*

Additional Information